LEP format must be correct – McNulty

THE chairman of Advantage West Midlands has said it is vital that the format for economic development in the region is finalised as quickly as possible in order to concentrate on growth.

Sir Roy McNulty, whose RDA faces the axe under new Government plans, said: “It is vital for everyone in the West Midlands that we get this new regime right.”

He said that in his view this meant establishing a number of criteria for success.

If Local Enterprise Partnerships (LEPs) – the 50/50 joint public/private sector bodies favoured by the coalition – are to be the way forward then their number within the West Midlands must be kept to a minimum in order to ensure the region retains a powerful lobby voice.

“I think this means relatively few LEPs, probably at least four, maximum six across the West Midlands,” said Sir Roy.

“It means having strong business involvement and leadership; and probably means having some, relatively small but still effective, over-arching regional economic body.”

The balance between local, regional and national functions also needs to be right, he added, and there needed to be sufficient funding to ensure that the structure has the capacity to be effective.

“We need to ensure that all concerned are focused on the main issue – which is fixing the West Midlands economy, rather than the intricacies of reorganisation.

“Government should, as Vince Cable has said it will, minimise the reduction in funding to business in the West Midlands and other vulnerable regions,” he said.

Local authorities and business in the region need to give full attention to the development of sound, coherent proposals for LEPs by the deadline of September 6, added Sir Roy.

“Government needs to listen to what people in the region have to say.

“There needs to be an orderly transition, and that includes making sure that the knowledge and expertise which AWM has accumulated over the years is not thrown to the four winds.”

Sir Roy said that the bottom-line had to be that the new structure for economic development be at least as effective as what currently exists.

Speaking at the annual conference for the AWM-backed Rural Regeneration Zone, he said: “Given the economic mountain the West Midlands has to climb, we cannot settle for anything less.

“And I may as well say, in relation to those last comments, that AWM has set the bar high:

•    AWM is a top performing agency;

•    AWM is creating wealth-generating £8.14 for every £1 invested;

•    AWM is a lean organisation with a strong focus on driving costs down; and 

•    AWM has provided strong effective leadership (eg MG Rover, recession) and it has delivered many significant projects that would not have happened without AWM.

So AWM has set the bar high as we enter a crucial time for the region.”

He said it was essential, as new frameworks emerged for economic development, that sub-regional partners made their views known and were clear to government on what was needed.