H1.10: NWDA legacy

A special report in association with Hill Dickinson, The Co-operative Bank, Morris & Spottiswood and Emplacement

'I will remember the North West Development Agency for...

...trying their best but as their remit grew there seemed to be a lack of direction. They ultimately spent perhaps too much money on peripheral gloss rather the real aim which should have been to assist development in non-viable areas. Time will only tell if they will be missed in the recovery from recession.' Paul Nolan, director, Nolan Redshaw

...counting the regional economy. Until the creation of RDAs and the following need for an evidence base on which to make decisions, this country had never bothered to count the economic size of the regions. Instead we had a vague guess by dividing UK PLC's GDP in ten. If that hasn't been a sign of our ambivalence, I don't know what is, and for just over ten years the UK Government took a different view and as a result we've seen a massive turnaround in the cities of the regions.' Tris Brown, communications consultant

....helping to build strong foundations for Cumbria's economic growth and future prosperity. The NWDA's funding helped partners to focus on our strengths in energy and tourism and address some of the complex economic and social imbalances through projects such as the University of Cumbria, the 2001 Foot & Mouth Disease recovery, and the Britain's Energy Coast initiative in Barrow and West Cumbria.' Roger Liddle, chairman of Cumbria Vision

...being one of the major driving forces that enabled Liverpool to stand proud during Capital of Culture, but more importantly it continued to support, invest in and help drive some of the most significant and successful developments and infrastructure changes that have benefited Liverpool in recent times.' Charles Ardern, head of the Liverpool office, Knight Frank

...bringing a strategic approach to policy and programmes, to development and investment across the region and in so doing, helping provide the platform for economic growth and prosperity for well over a decade. I will remember and recollect the good times under the NWDA even more over the next ten years.' Iain Jenkinson, director, planning development and regeneration, GVA Grimley

...their work on climate change and carbon reduction that has helped the North West become one of the leading regions in reducing carbon emissions in the UK.' Roy Stewart, operations director, Centre for Construction Innovation North West

...assisting in the delivery of regeneration projects in deprived areas where economic development would not otherwise have taken place, and aiding the completion of the largest warehouses to be built in the North West over the last ten years, including a new 850,000 sq ft development in Rochdale.' Rob Woods, associate director in the capital markets team at CBRE North West

...for making loads of great development and arts projects happen. In Manchester; the Northern Quarter, Ancoats, Castlefield and the Manchester International Festival, in Liverpool the Ropewalks and 2008 Capital of Culture and the Midland Hotel in Morecambe are just a few that I have personally been involved in. We owe a debt of gratitude to the NWDA as these wouldn't have happened without them.' Tom Bloxham, chairman, Urban Splash

... its potential ability to light a fire under the region's property industry to drive development and regeneration, yet its failure to succeed in delivering the achievements that it could have, despite its good intentions.' Ian Butler, head of Sheppard Robson's Manchester office

...the leadership it demonstrated in blazing a trail for real local innovation and private investment, permanently changing the face of our commercial, creative and cultural landscape.' Oliver Ronald, regional director, Steelcase Solutions

For better or for worse

The North West Development Agency was set up in the relatively early days of the New Labour Government in 1999. Over the next decade it played a part in hundreds of developments, small and large, but continually divided opinion as to whether public sector intervention was good for the market and whether it fulfilled its potential to dramatically change the economy of the region.

On the one hand the GVA per head growth gap between the North West and the South narrowed from 0.4% in 1990-97 to 0.3% in 1998-2008. The region overtook the East Midlands, South West, West Midlands and Scotland in terms of the official UK Competitiveness Index. The North West was eighth ten years ago and is fourth today.

Research by financial advisors PricewaterhouseCoopers found that £1 of NWDA spending delivers £5.20 into the regional economy in terms of money being passed down the supply chain, spent by workers locally or levering in extra investment. NWDA reports claim £150m was generated from its major events strategy, 222,000 jobs created or safeguarded through grant-funding and 900 inward investment projects have its fingerprints on them.

There is an argument to suggest the strategic role played by the agency helped create the North West Urban Investment Fund - launch pot £100m - which may not otherwise exist.

On the other hand, critics accuse the agency of favouring certain places and businesses while ignoring others, and howl at its slowness to decide on funding applications. Around 15 of the 100 projects cancelled this week were understood to have been very close to legal commitment, the bidders who waited so long for the signature must have been fuming when the pen was pulled.

Another favourite target was the alleged size and weight of the Warrington-based 'supertanker'. The NWDA employs more than 450 people and manages an annual budget of over £200m, six directors have salaries above £100,000, including chief executive Steve Broomhead who is on closer to £200,000 a year basic.

The NWDA says it is comparatively cheap to run. In 2009/10, the NWDA proportion of spend on admin was 8.0%, below the 10% recommended benchmark.

Whatever we may think of them or their legacy, the Conservatives have decided the Regional Development Agencies will be no more, and we will have to get used to Local Enterprise Partnerships soon, the white paper is expected before September.

And then the jury will go out again to decide if it likes what it sees.