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					To be Published on the Website                                          Paper 17.06.04 – item 15
                                                                             Agenda Item   5b
                                                                  Paper 17/06/04 – ITEM 15

           SOUTH EAST ENGLAND DEVELOPMENT AGENCY

                         BOARD MEETING ON 17th June 2004

                                                   ITEM 15

                               AGENCY ACTIVITY REPORT
Recommendation

The Board is invited to NOTE the agency activity report for June, which represents a
cross section of reports from within SEEDA.

Business Development

1. The previous Agency report signalled that the SEEDA Sectors and Clusters and
   Business Services Incubation team (Enterprise Hubs and Gateways) had been
   reorganised within the Business and International Division. As a result of that
   process Greg Ward’s team will be known as the Business Development team and
   lead on the Enterprise Hubs and Gateways, plus five sectors:-

    Marine Technology
    Farnborough Aerospace Consortium (Aerospace and Defence)
    Environmental Technology
    Media/IT
    PharamaBio

Enterprise Hubs

2. All four elements of the Enterprise Hub Network Business Plan are moving
   forward; funding for the Value Proposition has now been approved and Finance
   South East are developing a package to provide advice on accessing funding to
   entrepreneurs across the Hub network.

3. Phillip Johnson began in post as Director for High Wycombe in mid April and is
   beginning to develop the business networks and support services to create an
   Enterprise Hub focused on industrial design. Interviews take place in the next
   month for the Farnborough Hub Director.

Enterprise Gateways

4. All six Gateways are now operational as virtual networks, and the Directors are
   recruiting start-up companies and entrepreneurs to the programme. Slough
   Gateway held a weekend training event to help empower women to start their own
   business, which was attended by over 150 women.

Sector and Cluster Activity

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5. The Business Development team will shortly be working with the five sector
   groups, through the Sector Chairs, to compile 3 year business plans to take the
   groups forward and develop their strategy.

Defence and Aerospace

6. Farnborough Aerospace Consortium has successfully completed a study to
   determine the true costs related to sourcing products and services from low cost
   economies, which are often not always fully accounted for. 15 low cost countries
   throughout Europe, Asia and the Americas were the focus of the study.

Pharama Bio

7. The NHS Innovation Hub is progressing, with the appointment of the Interim
   Management Board, Chief Executive and the Chair.

Environmental Technologies

8. The South East Environmental Business Association, supported by SEEDA,
   attracted over 300 companies to recent events that highlighted issues around
   sourcing lead-free components and lack of agreement over permissible levels of
   lead and calcium in products

Media, Technology and Telecomms

9. The International Creative Clusters Conference took place in Brighton on 28 April
   and was exceptionally well attended. As part of this conference, the region
   sponsored a smaller event, ‘A Sense of Place’, chaired by Pam Alexander, which
   explored the relationship between regeneration and a proactive approach to culture.

10. Representatives from the SEEDA-supported Pinewood Film Cluster attended the
    Cannes Film Festival in order to actively market the company skills within the
    cluster at Pinewood and Shepperton.

Marine Technology

11. The first newsletter for Marine SouthEast has been published and distributed to
    2,500 marine firms across the South East. Activity continues within the Marine
    working groups, in particular focusing on workforce development, innovation
    support and PR. Discussions are also continuing with Business Links in Kent and
    Wessex on shared marine network support and future local events.

Manufacturing Innovation Team

Nano and Microtechnology

12. The team is working closely with SE companies brokering and negotiating
    submissions to the DTI’s £90m Micro and Nano Technology Fund. Through this
    work, four projects are being put forward by interests in the South East , all of
    which have the support of the DTI led Micro and Nanotechnology Task Group.
    The team is also developing a programme of company visits to raise awareness of
    new and emerging nano and microtechnologies in the region.

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13. SEEDA has been invited to give a presentation on SE Nano activities at the Swiss
    Nanotechnology Fair in London and Jason Wiggins, Nano Manager has been
    elected by all RDAs to the Government’s steering and advisory body on Nano and
    Microtechnology. The team is also supporting a new project for DTI funding,
    focusing on the creation at Oxford University of a Begbroke Nano Centre which, if
    successful, will provide a full range of scientific services to a 'world class' cluster
    of companies engaged in Nano technologies in the Oxford and surrounding areas.

Support for Manufacturing Sector

14. SEEDA is working closely with the DTI Manufacturing Policy unit to help finalise
    the update of the Manufacturing Strategy which is due to be launched on or about
    15 July. SEEDA, in its lead RDA Manufacturing role, is now consulting all RDAs
    on the Manufacturing Action Plan which will follow from the strategy.

Property and Construction

15. Mark Whitby will shortly be stepping down as Chair of the SEEDA Property and
    Construction Sector Group. He will be replaced by Bob Heathfield, who has
    chaired the Chartered Institute of Building, was MD of Ballast and now chairs
    Appleyards Consulting. As a result of a meeting between Jim Brathwaite and
    Nigel Griffiths MP (the DTI Minister with responsibility for construction),
    construction is on the agenda for the July RDA Chairs meeting, likely to be
    attended by three Ministers. SEEDA is also hosting a meeting of all RDAs to
    discuss construction priorities and the sharing of Best Practice.

Motorsports

16. SEEDA continues to support the national Motorsport Sector initiative through
    representation on the newly formed Government Motorsport Unit (GMU). The
    GMU includes the representatives from the four RDAs with major activity in this
    sector. The GMU's role is to approve new projects supporting the Motorsports
    sector and new projects awaiting approval in May include: A Learning Grid
    promoting Engineering through Motorsports, the Motorsports Academy and an
    Energy Efficiency Motorsports programme aimed at promoting innovation.

Finance South East – Launch of the Accelerator Fund

17. Board members will have received invitations to attend the launch of the FSE
    Accelerator Fund on Monday 21 June at the Pennyhill Park Hotel, Bagshot. Nigel
    Griffiths MP, Parliamentary Under-Secretary of State for Small Businesses and
    Enterprise will be attending the launch.

18. FSE Accelerator Fund is a £10 million mezzanine loan fund set up to fund small
    and medium sized enterprises (SMEs) based in the region with the potential for
    significant growth (early stage, expansion or transition). FSE Loan Management
    Limited, a wholly owned subsidiary of Finance South East Limited, has been
    established to manage The Accelerator Fund.

19. The Accelerator Fund is a new initiative designed to address the funding gap that
    SMEs face as they seek to develop or expand viable business propositions. There
    is clear evidence of market aversion to provide risk capital to SMEs and the aim of
    The Accelerator Fund is to support businesses with significant potential for growth
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     whose funding needs do not necessarily wholly fit within the parameters of
     traditional debt and equity finance sources.

Inward Investment

20. During April/May 2004, SEEDA secured 6 investment successes, which will create
    63 new jobs and safeguard 15 jobs in the region. Three of these successes were
    generated directly by SEEDA’s activities overseas. Details are set out in Appendix
    A.

EUROPE

21. Hi-Tech Investment in Thanet, Kent – SEEDA has been successful in attracting
    its first foreign investment to Thanet, Kent. This success was generated from
    the inward investment seminar that SEEDA participated in last September, in
    Tel Aviv. Refer to Annex A for further information.

22. IAI Visit, 10 June 2004 – As a result of attending the inward investment seminar
    in Tel Aviv (Israel) last September, SEEDA has been asked by Israeli Aircraft
    Industries (IAI) to organise a visit to the region. IAI is Israel’s largest company in
    the aeronautics/defence sector, with an annual sales turnover in excess of 3 billion
    dollars and 75% of sales exported to more than 60 countries. The visit represents
    an excellent opportunity for SEEDA to showcase the aerospace and defence
    capabilities of the region to IAI, which is currently considering setting up in the
    UK. SEEDA has been working with Farnborough Aerospace Consortium and the
    University of Surrey to draw up a visit programme for IAI, incorporating civilian
    and defense sectors. The programme for the day will include visits to the
    University of Surrey and an FAC event at QinetiQ.

ASIA PACIFIC

23. Shanghai - As part of the Global Regions activity in Shanghai, SEEDA has been
    asked to speak at a seminar at the Ningbo Trade and Investment Fair next month.
    SEEDA has also been given free exhibition space. Executive Deputy Governor
    Dai, Pudong District, Shangahi, is expected to visit SEEDA next month to discuss
    Global Regions.

24. Korea - The Korean Economic Daily, Korea's most respected economic and
    financial paper, sent a reporter to Netherlands, UK and Republic of Ireland to
    benchmark investment culture and strategies. Of the two days he was in the UK,
    the reporter spent a day and half in the region. This was on the advice of the
    Korean Government.

25. The British Embassy in Seoul has invited SEEDA to host its planned Information
    Security seminar as part of the UK-Korea High Technology Forum in November
    2004.

26. Australia – the Australia Technology Park Innovations Pty Ltd, which manages
    the business incubator Programme known as "BizConnect", has confirmed its
    support for the International Enterprise Hub Network.



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27. Japan - SEEDA has successfully bid to the British Embassy in Tokyo to host the
    forthcoming Japanese bio & pharma inward mission. Fujitsu Laboratories is the
    major player visiting the region.

NORTH AMERICA

28. Over the past two months a comprehensive marketing campaign in North America
    has focused on the states of Texas, Washington and Chicago. The campaign has
    resulted in a number of good leads and a pipeline of 7 potential investments.

Hants & IOW Area Team

Woolston Riverside, Southampton

29. This project is now engaging teams across SEEDA with work progressing on an
    employment and skills strategy for the site. Southampton City Council are
    preparing a coaching initiative to raise the employability and skills levels of people
    in the surrounding deprived wards of Woolston and Weston. This initiative will be
    funded through devolved funding from SEEDA.

30. SEEDA is also supporting the development of a strategy for the Solent, which will
    consider complementary business and cluster developments, use of land, especially
    water frontage and the opportunities presented by the water for water transport,
    taxis and the like and waste management.

Childcare & Learning Centre, Southampton

31. The Taplins Trust Childcare & Learning Centre in Southampton had its official
    opening on the 26th May. This SRB funded project received £333,371 from
    SEEDA for the build of a Training facility on to a proposed childcare nursery. The
    100- place nursery (developed by the PCT and NHS Trust) will provide affordable
    childcare for local residents in Southampton and NHS employees.

Portsmouth Study Tour

32. SEEDA hosted a very successful study tour for staff to Portsmouth on the 20th &
    21st May. Highlights included a visit to Portsmouth City Football Club’s ground
    and the Gunwharf Quays development. The tour has proved very beneficial in
    increasing understanding of the role of the Area Team within SEEDA and the
    impact of our investment in the sub-region.


Urban Renaissance

Leigh Park, Havant

33. The next Enquiry by Design event focusing on the Warren neighbourhood in Leigh
    Park will take place on 18 and 19 June. This will build on the work prepared by
    residents at the previous EbD, where principles for change for the neighbourhood
    were identified as:

    Creating a new ‘heart’ for the Warren with better community facilities and
     communal spaces
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    Safer streets, well overlooked and easily patrolled
    Defining routes through the Warren to connect the community
    High quality design

Development Projects

Woolston Riverside, Southampton

34. An exhibition to give the first views of a proposed masterplan for the former VT
    shipyard at Woolston Riverside took place at the end of May 2004. The two-day
    exhibition allowed people to comment on the outline proposals for the site which
    are contained in the planning brief and illustrative masterplan.

35. This is part of a formal consultation process, which concluded on 8 June. The
    exhibition was opened by Lord Rogers, Chairman of the Richard Rogers
    Partnership, responsible for designing the masterplan. He awarded prizes to local
    school children who were invited to come up with their own designs for what they
    would like to see on the site.

Cowes Waterfront, Isle of Wight

36. LDA Urban Design has been appointed as masterplanners for the former GKN
    North Works site (now renamed the East Cowes Project).

37. Transport consultants, Peter Brett Associates, have also been appointed to deliver a
    transport strategy for the regeneration of the site which will improve facilities for
    public access and the operation of the vehicle and passenger ferry.

Rochester Riverside

38. Public consultation on the EDAW masterplan has been undertaken to gain local
    residents and stakeholders views and support for the project. Phase 1 of demolition
    work at the site is now complete.

Chatham Maritime

Chatham Maritime has won three top national awards in the space of one week.

39. The first accolade was a Building for Life Silver Standard for St Mary’s Island.
    Building for Life is the national standard for well-designed housing and
    neighbourhoods and is an initiative between the House Builders Federation, CABE
    and the Civic Trust which assists house buyers by highlighting examples of new
    housing schemes that are committed to high quality design. The developments are
    assessed against criteria ranging from construction to environmental sensitivity and
    community safety.

40. This was closely followed by a commendation for the whole of Chatham Maritime
    in the regeneration category of the Royal Institute of Chartered Surveyors’ (RICS)
    Building of the Year Award. Finally, St Mary’s Island also won the Worldwide
    Fund for Nature’s Sustainable New Homes award.

41. ING/Rialto Homes Ltd Proposed Development

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42. The proposed “Two Towers” development for site J5/J6, designed by Wilkinson
    Eyre was granted planning permission by Medway Council’s planning committee
    on 16 June. Plans include bars, restaurants and cafes along with 300 residential
    apartments.

Kent Coalfields

43. Chris Moore has been interviewed by Meridian TV for a documentary about the
    history of the Kent Coalfields and includes information on how SEEDA is
    regenerating the sites. Interviews have also been carried out with members of the
    public at sites including Betteshanger and Aylesham. The programme was aired on
    8 June.

44. At Betteshanger, an event is being planned for late June to officially mark the
    opening of the new community park. It is being organised by members of the
    Betteshanger Regeneration Forum and SEEDA.

Queenborough/Rushenden: Sheppey

45. A further day of public consultation has been held in Rushenden in order to
    introduce proposals to local residents and gather their views. The demolition
    contract on First Avenue has been completed.

Kent Thameside

46. Office of the Deputy Prime Minister (ODPM) funding has been approved for site
    purchases at Northfleet Embankment, and in Dartford the purchase of Steam Crane
    Wharf and 151 Hythe Street have been completed.

Miners Way Business Park, Aylesham

47. A second tenant has moved into fitted out premises on the business park and is
    now operational.

Transport

48. SEEDA continues to operate at a sub-regional level, jointly with the Assembly on
    strategic transport and economic development issues in three priority locations:

    Reading Station
    Oxford Station, and
    Southampton Region Hub (Solent 2020).

49. The draft business case for the East West Rail link has been completed with
    SEEDA’s support. This focuses on:

    re-instating passenger services between Oxford and Milton Keynes;
    developing an orbital rail route around the northern and western perimeter of
     London; and
    providing public transport connectivity in the MKSM and Aylesbury Growth
     Areas.


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50. The draft business case for Airtrack, led by Surrey County Council and supported
    by SEEDA has been completed and a presentation to the SRA has resulted in a
    “cautiously optimistic” view. The rail link would provide rail access from Staines
    directly into T5 at Heathrow, benefiting South-West London and the Western
    section of the SE region. The SRA is currently investigating the scheme’s potential
    implications on the wider network.

51. SEEDA has commented on the SRA’s consultation on Community Railways,
    essentially questioning the validity of further fragmenting the railway industry,
    developing a tertiary rail service and providing public funding from “non-
    transport” sources for these lines. SEEDA’s views have also influenced the joint
    RDA response to the consultation.

52. SEEDA is fully engaged in the setting up a Regional Transport pilot. The South
    East and Yorkshire and Humberside regions have been chosen by the Department
    of Transport to test the feasibility of delegating decision-making, identification of
    investment priorities and limited budgetary responsibilities to the regions.

53. SEEDA has a watching brief on the implementation of MMS recommendations
    and engages with the Highways Agency on consultations on their Route
    Management Strategies and re-designs for sections of the South Coast route.
    SEEDA has strongly supported Dover Harbour Board in lobbying for dualling the
    final section of the A2.

Transport-European Funding

54. SEEDA is the only RDA which has been successful in obtaining ERDF funding for
    transport infrastructure from the Interreg IIIB programme. We have already been
    successful with two projects, whilst another two will be decided by the end of June.

FINESSE – Rail Freight between Dover and Belgium/France

55. This project in partnership with Kent CC, Dover DC and Dover Harbour Board is
    progressing according to plan. Consultants will be appointed by early June to carry
    out studies into strategic policies and particularly into the technical feasibility and
    commercial viability of the re-introduction of such services.

HST Integration – Primary High Speed Train Network

56. Initial challenges to set up a financial management mechanism for the largest
    Interreg IIIB project so far have been addressed. SEEDA and the Secretariat in
    Lille have found a practicable way forward to achieve spending of a total of €29m.
    Meetings with Kent CC were successful in addressing financing issues for the
    Ebbsfleet component of the project. A project communication manager has been
    appointed to focus on a Ministerial launch of the project after the summer recess.

HST Connect – Project Application

57. SEEDA, on behalf of a transnational partnership including public sector partners in
    the Netherlands, Belgium, France and Germany, submitted a substantial investment
    project to the European Commission at the end of April. The project focuses on
    secondary rail networks and links, feeding into the primary High Speed Train
    network. Reading, Hastings and Dover are the South East Regional partners. The
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     total bid is €26m and the ERDF proportion is €10m, half of which is levered into
     the UK. SEEDA has also obtained match funding for this project from ODPM in
     the order of £350,000. A decision by the European Commission is expected at the
     end of June.

SPACES – Project Application

58. This project is led by German partners and has also been submitted to the European
    Commission at the end of April. If successful, SEEDA is the recipient of around
    €2m for project delivery in the Queenborough and Sittingbourne.

Statutory Planning Role

59. Further to the approval by the Board of the criteria for planning applications of
    regional significance, all 76 planning authorities have been notified that SEEDA
    statutory role as consultee in the planning application process commenced on 1
    June 2004. We are currently developing a handbook for all SEEDA staff in order to
    identify the future, internal mechanisms, balancing between our “promotion” role
    and the new statutory function.


Learning & Skills

Regional Skills for Productivity Alliance

60. The Action South East Forum met with Stephen Marston, Director of Skills at the
    DfES and representatives from other central government departments and national
    agencies with an interest in learning and skills on 12 May 2004. The meeting was
    convened to discuss progress with the South East’s Regional Skills for Productivity
    Alliance (RSPA). The RSPA received formal endorsement from the DfES at this
    meeting and will be formally launched on 14 July 2004. A more detailed report
    appears elsewhere on the agenda for this meeting.

GUIDE Award for Online Excellence

61. SEEDA has been awarded the GUIDE Award for Online Excellence in Grant
    Support for its SEEOnline broadband community self-help website. This was
    presented at the General Assembly of EURADA, the network of EU Regional
    Development Agencies which met in the Czech city of Olomouc on 24 May 2004.
    The award recognises best practice in European innovation for generating novel
    ideas for e-government and developing an information society.

South East Health Summit

62. SEEDA, four Strategic Health Authorities, the South East Regional Assembly,
    Government Office for the South East and the Regional Director of Public Health
    sponsored a South East Health Summit on 21 May 2004, chaired by Jim
    Brathwaite. This responded to the Wanless Report that challenged the NHS to
    become an exemplar for public and private sector employers, through supporting
    the health of its workforce. The conference was well attended by NHS Chief
    Executives, HR Directors, non-Executive Directors, Workforce Development
    Confederation Directors and Union Representatives. It addressed a range of

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     initiatives, which could both improve health and ease recruitment and retention
     issues.

Computer Clubs for Girls

63. Secretary of State for Education and Skills, The Rt. Hon. Charles Clarke, visited
    Trinity School in Newbury on 25 May 2004 to view the Computer Clubs for Girls
    (CC4G) initiative. CC4G is a joint initiative that is run by e-skills UK and funded
    by SEEDA. It aims to address the declining numbers of women within the IT
    workforce, which has fallen from 30% eight years ago to 20% today. It is aimed at
    girls in the 10-13 age group and offers a range of specially tailored e-learning
    activities that are designed to motivate them at a crucial stage when, research
    indicates, they are likely to discount technology and careers in IT.

Management and Leadership Pathfinder

64. SEEDA has worked in close partnership with the six South East Business Links
    and six Local Learning and Skills Councils to secure funding from the DfES and
    DTI to deliver a two-year programme of support to SMEs in the region from July
    2004.

65. The programme will provide Managing Directors with an in-depth diagnosis of
    their individual learning needs (closely tied to business development), recommend
    appropriate learning solutions and contribute £1,000 towards the cost of learning. It
    will be delivered by the six Business Links and managed by Surrey LSC.

66. The programme aims to engage more than 4000 SMEs in the South East and will
    be rolled out nationally from September 2004. This is a ground-breaking initiative,
    as the DfES is keen for informal learning solutions to be utilised and has placed
    emphasis upon the delivery of skills and setting no qualification achievement
    targets.

Economic Inclusion and Sustainability Division

The South East Community Loan Fund

67. The South East Community Loan Fund was launched by Pam Alexander at a high
    profile event in Leatherhead that attracted around 90 players from social
    enterprises, commercial funding organisations and key influencers from
    community focused organisations.

68. The Loan Fund will address a key barrier to growth experienced by many social
    enterprises and SME's trying to make a positive social and economic contribution
    in deprived areas, who are unable to secure funding from traditional financial
    institutions.

69. We created the Loan Fund with a capital endowment of £500,000. We are working
    collaboratively with both the Local Investment Fund and Finance South East to
    deliver this innovative programme.

Hastings and Bexhill / SEASPACE

Business
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70. Creative Media Centre Phase 1 open with Centre Manager appointed and 70% of
    units let.
71. Broadband Experience Centre open and on target for first full quarter outputs
    involving active engagement and networking with local organisations.

Learning & Skills

72. UCH open and reaching end of first year of courses. Current courses include
    foundation degree in Regeneration Studies, various IT and business courses and
    new courses for Sept 04 to include E-Skills degree through University of
    Greenwich and joint degrees with University of Malta.
73. Phase I and Phase II UCH completed by Sept 04 adding 1600sq.m of further
    teaching space
74. Continued participation in the Post-16 review process feeding in to wider
    education programme.
75. A variety of other education initiatives being negotiated with partners such as
    Tourism SE, East Sussex County Council & the LSC.

Urban Renaissance/Land & Property

76. Creative Media Centre Phase 1 and Broadband Centre, and Creative Media Centre
    Phase 2 – in total comprise 1,910sq.m commercial retail. Land acquired and
    planning granted. Phase 1 construction completed and open.
77. CPOs have been issued as part of the final stage of land acquisition for Station
    Plaza with planning application acquired July04 – 25,000sq.m mixed use
    development comprising education, office and residential (as part of Millennium
    Community)next to Hastings station.
78. Planning application is to be submitted w/c 7/6/04 for Marina Pavilion in St
    Leonard's - 1,160sq.m Leisure/Conferencing. Land acquisition under negotiation.
79. Planning application has been submitted on 30 April 2004 for Churchfields
    Innovation Centre – 2,350sq.m of business incubation space. Land acquisition
    agreed in principal.
80. Queensway – 16,000sq.m commercial/industrial. Land acquisition under
    negotiation. Planning application due to be lodged for autumn 2004.
81. Planning application in preparation for Pelham Place – 14,000sq.m
    leisure/commercial/residential/retail development. Land acquisitions under
    negotiation.
82. Design Competition complete resulting in appointment of ABK architects for
    Bexhill town centre – 10,450sq.m leisure/ commercial/ retail/ residential
    development. Design development to be progressed.
83. New atrium for University Centre Hasting due for completion in Sept 04

Transport

84. Partnership working to develop the Hastings – Bexhill Link Road.
85. Advocacy of improvements to the A21
Rail improvements to London and between Ashford and Hastings ongoing.




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