JOINT REPORT OF CABINET MEMBER FOR ENVIRONMENT AND ECONOMIC DEVELOPMENT AND DIRECTOR OF ENVIRONMENT AND ECONOMIC DEVELOPMENT

TO: ECONOMIC DEVELOPMENT SCRUTINY COMMITTEE

RE:WELSH LOCAL GOVERNMENT ASSOCIATION ANNUAL CONFERENCE 2000 REGENERATING WALES

REF: R/10/3

1. REGENERATING DEMOCRACY

1.1. Context

Is the popular scepticism over all forms of politics based on substance? Voter apathy is increasing and participation in the political system by young people, women and ethnic minorities is particularly low. Government at all levels is described as being "out of touch with the people". We are, however, in an era when the people of Wales have delivered fundamental democratic and constitutional change. The National Assembly proclaims an inclusive and participative politics which has brought the decision-making process closer to the people. The modernisation of local government through the Local Government Bill aims to make councils more efficient and transparent, as should new mechanisms between tiers of government such as the Partnership Council and policy agreements.

1.1.1. Sir Harry Jones CBE - Leader WLGA

(1)	The importance of public participation in democracy cannot be over-valued and must be protected as a precious phenomenon.
(2)	Voting at elections is a clear indicator of public confidence in democracy - turnouts at recent elections demonstrate public apathy for the relevance of democratic government.
(3)	The number of uncontested seats at elections is a source for concern.
(4)	There are too few women and people from minority groups coming forward to stand for election.
(5)	The above factors need to be addressed if democracy is to be protected and to operate effectively.
(6)	Community leadership offers the opportunity to re-engage democracy in action with real benefits for the community.
(7)	Partnership overload - there is an urgent need for clarification - a structured approach is necessary to avoid duplication, provide focus, etc - community leadership offers a vehicle for this goal.
(8)	Local councils have a critical role to play in leading the future
(9)	Hence the need to make local democracy work with an attractive, dynamic environment within which talented people, from all backgrounds, will be encouraged to participate.
(10)	The National Assembly must play its role in providing the context within which local democracy can thrive.

1.1.2. Peter Law AM - National Assembly Secretary for Local Government and Housing

(1)	The Assembly's goal is to harness the efforts of all for the benefit of the community, improving the quality of life.
(2)	The Assembly expects much greater collaborative working between all agencies.
(3)	The unique democratic structure in Wales should enable Wales to be at the head of joint working in practice.
(4)	The Assembly regards the Partnership Council to be an important forum and wishes to see the PC expand its sphere of interest to coincide with the Assembly's remit, perhaps including health and other organisations.
(5)	A "torrent" of consultation is about to commence between the Assembly and local authorities on proposals for implementation of the Local Government Act 2000, including political management arrangements and community planning.
(6)	The Assembly agrees with the WLGA that there should be a rationalisation of the number of strategic plans which local authorities are required to produce and in the absence of power to make primary legislation in this area will continue to work with local government to lobby Westminster for change. The Community Plan offers the potential to secure this objective.
(7)	Policy Agreements will be an important device for linking local and national strategic action with a focus on agreed outcomes as opposed to resource inputs.
(8)	The National Assembly is grateful to local authorities in the WLGA for their preparedness to move along the modernisation road and respects their commitment to change.
(9)	Scrutiny Committees have a central and crucial role to play under the new political management arrangements and the proposed statutory guidance will make clear the vital role of the non-executive member.
(10)	The Assembly wishes to see Cabinet meetings conducted openly in the interests of transparency.
(11)	Best Value will be a key process in reinvigorating local democracy and crystalising the community leadership role of councils through the monitoring and reporting requirements.
(12)	The Assembly is anxious to ensure that the new formula for funding does not impact seriously on individual authorities and has tasked a joint working group with considering this difficult question and proposing proposals for mitigation if considered appropriate.

1.1.3. Rt. Hon Paul Murphy MP - Secretary of State for Wales

(1)	The whole purpose of democracy is that people have elected representatives - the people choose.
(2)	Representation brings with it a huge duty - representing to one's best ability the people whom one has been chosen to serve.
(3)	The duty is critical because of the way in which public services impact directly upon people's lives.
(4)	Modernisation is about ensuring that the decisions taken by politicians - representatives - are more effective, are speedier and open, and therefore understandable.
(5)	It is essential for the future that there is a supply of people who want to become councillors so that they can influence the nature and quality of life locally.
(6)	The local representational role of elected Councillors, the advocacy role on behalf of constituents, remains crucial and the National Assembly and local authorities need to work together to ensure that this role is clearly recognised and facilitated within new political management arrangements - not all councils have achieved this yet.
(7)	There remains a need to crystalise how all elected representatives, Community Councillors, County Councillors, Members of Parliament, National Assembly members, Members of the European Parliament work together for the good of those who they represent.
(8)	New devices for increasing the wish to vote, and the means to vote need to be sought in order to increase the number of people voting at elections - a fundamental component to democracy.

1.1.4. Professor John Stewart - Institute of Local Government Studies, University of Birmingham

(1)	Democratic renewal is about the relationship between the Councillor and the represented, not about internal management arrangements. The management arrangements needs to focus on the objective - improved government. Wales is doing much better in this regard than England.
(2)	There needs to be a strong health warning about inspection - what is the objective ? - to satisfy the inspector or to satisfy the electorate ?
(3)	The problems facing society demand collaborative action.
(4)	Representative democracy and participate democracy do not conflict with each other - they compliment each other.
(5)	"Apathy is a reason for action" - apathy demonstrates that something is wrong and needs to be addressed.
(6)	The sovereign role of the Council in policy making must be the starting point in any new management arrangements.
(7)	There is a danger of over-prescription in regulation in support of the Local Government Act - creating bureaucracy where it is not necessary. This is a tremendous opportunity for the National Assembly.

1.1.5. The Wales Charter for Councillors was launched by Councillor Graham Court - WLGA Member on the Board of Syniad (copy of Charter attached).

2. REGENERATION THROUGH EDUCATION

2.1. Context

Education in Wales is in a period of flux. The considerations to extend state education to all 3 year olds, the re-structuring of term times and the issue of performance related pay all herald a signficiant period for our schools. The establishment of CETW and the local CCETs will realise a wholesale transformation of post-16 education and training. The establishment of the National Assembly, with a broad remit over education and training has provided an effective vehicle for discussion and partnership with local government and other partners in the education and training sector.

2.1.1. Sir Jeremy Beecham - Chairman, Local Government Association

(1)	Scrutiny is the critical aspect of the modernisation agenda.
(2)	The new agenda will allow all elected members to fulfil far more effectively their role as a champion of their communities.
(3)	LGA is intent upon reinforcing the role of Local Government as a vital element of local democracy.
(4)	LGA is about to launch a local government manifesto which will lay out the principles for an improved relationship between local and central government.

2.1.2. Councillor Jeff Jones - Leader, Bridgend County Borough Council

(1)	Education is the key to the development of a new prosperous Wales.
(2)	Our young people are our most precious resource and they need to be equipped with the relevant skills and knowledge.
(3)	The economy of the future will demand a flexible workforce and a new approach to training is required - hence the importance of life long learning.
(4)	A focus on facilitating women returning to the labour force should be a priority for attention.
(5)	There is a real partnership for education between the National Assembly and local authorities now emerging in Wales.
(6)	There is a desperate need to address the backlog of maintenance of educational buildings.
(7)	The local education authority will continue to have a crucial role to play in the future delivery of education.
(8)	The new structured approach for post 16 education and training, to be delivered through local CCETs, provides the focus which will be all important in raising standards and improving the effectiveness of programmes.

2.1.3. Cynog Dafis AM - Chair, National Assembly Post 16 Education and Training Committee

(1)	Human resource development is central to improving economic performance.
(2)	A key objective must be to retain talented young people within Wales - this is a clear objective of the Objective 1 SPD.
(3)	There is now a fundamental shift in the way in which education and training is to be developed and delivered as a key factor in economic performance - through one integrated system involving all sectors.
(4)	The new approach will demand co-operation and flexibility between the various partners in the new framework to ensure its success.

2.1.4. Professor Hywel Francis - University of Wales, Swansea

(1)	Wales has twin challenges:
		- building a learning country
		- strengthening local democracy
(2)	The links between deprivation, as defined by the new index, and inadequate learning are obvious and inseparable.
(3)	Competition in education has failed the population - co-operation is the only route.

3. REGENERATING COMMUNITIES

3.1. Context

Community regeneration has been a fundamental function of local government and its partners in Wales. The WLGA/WCVA `Shared Aims' initiative has led to the establishment of local compacts between local authorities and county voluntary councils. The National Assembly has reaffirmed the importance of the vitality of our communities in "Better Wales" and "Communities First", and it is the challenges that these initiatives pose that community plans, designed and implemented in partnership must seek to address.

3.1.1. Councillor Meryl Gravell - Leader, Carmarthenshire County Council

(1)	Regeneration attempts over the last 20 years have failed for a number of reasons, notably the failure to include local people in decision making.
(2)	Local implementation mechanisms need to include some key requirements.
	(i)	Set up stakeholder group
	(ii)	Consult the community
	(iii)	Identify and develop local talent - the `community entrepreneurs' with drive, ambition, and vision.
	(iv)	Identify volunteers - those willing to help but not necessarily to lead.
	(v)	Match demand and supply - the identified problems with the problem-solver.
	(vi)	Reporting back to the community and generating ownership of the project.
(3)	Local government has a central role to play in regenerating communities including:
	(i)	Raise-awareness of the regeneration initiative.
	(ii)	Set up working groups that take control of:
		- consulting the community
		- identifying talent willingness to volunteer
		- matching supply and demand
	(iii)	Set up the community chest and advise on sources of funding.
	(iv)	Advise on what it provides alongside new initiatives.
	(v)	Setting SMART (specific, measurable, actionable, realistic, timely) objectives to ensure sensible expectations.

3.1.2. Peter Black A.M.

(1)	Generating self-confidence is a key objective
(2)	Regenerating communities is a long-term task
(3)	Community empowerment and capacity building will be critical success factors.
(4)	The importance of the voluntary sector in addressing community deprivation cannot be over-emphasised.
(5)	Current funding structures, based upon short-term programmes, are not helping voluntary effort.
(6)	The success of voluntary sector/local government compacts need to be built upon.
(7)	Education and training will be crucial to community regeneration by equipping people with the ability to take advantage of opportunities which will arise.
(8)	Funding remains a key issue - e.g. lack of investment in housing over past years has contributed to deprivation and will be expensive to rectify.
(9)	Transport availability is central to opportunity and reducing social exclusion, especially for job and training opportunities.
(10)	Support services, e.g. child care, will be fundamental requirements.
(11)	Funding mechanisms need to change to be more focussed on cause and effect.

3.1.3. Graham Benfield - Director of Wales Council for Voluntary Action

(1)	Effective local participation, involving residents from the very start, is most important.
(2)	The country must move away from short term programmes to strategic long-term planning for regeneration.
(3)	Effective regeneration may require the devolution of financial resources.
(4)	Neighbourhood compacts could provide a means of establishing relationships between local communities and all the agencies that support them.

4. REGENERATING THE ECONOMY

4.1. Context

The Assembly has set out its targets for the economic regeneration of Wales in `Better Wales', many of which local government share and are striving to achieve. Many view the future of Wales' economy as reliant upon European structural funds. If effectively delivered, the poorest communities and economies of Wales will be revitalised, with Wales perhaps replicating the revolution that has transformed Ireland into the Celtic Tiger of Europe. As community leaders with a power to promote the economic, social and environmental well-being of people, local authorities are crucial members in the local partnershjps delivering European funding. However, the other members of these partnerships, public bodies and the business and voluntary sectors have as fundamental a role to play in ensuring the sustainability of local economies and communities.

4.1.1. Carwyn Jones A.M. - National Assembly Secretary for Agriculture and Rural Development

(1)	BetterWales sets out the National Assembly's objectives for the Welsh economy.
(2)	The physical location of Wales is becoming less important and this recognition needs response in order to move Wales into a knowledge driven economy.
(3)	Wales need to generate new ambition and a new confidence.
(4)	Local authorities will, in the view of the Assembly, need to continue to play a central role in economic development within the Team Wales approach - employing partnership working.
(5)	Society needs to change in order to improve the quality of life and realise the potential of the new economy.
(6)	The growth and creation of indigenous businesses must be the bedrock of the future Welsh economy.
(7)	Financial support mechanisms for small businesses need to be reviewed as a priority.

4.1.2. Professor Brian Morgan - Cardiff Business School

(1)	Wales has no more than 10 years to turn the economy around and remove the spiral of decline suffered over past years.
(2)	The relative fall in GDP must be arrested and reversed.
(3)	Since 1980 policy intervention has been to play down - it has failed.
(4)	Wales needs to develop a long term, bottom up approach - hence the importance of SMEs.
(5)	SMEs are embedded into the local community and therein lies their potential strength.
(6)	Start up rates need to be improved and failure rates reduced.
(7)	Few new firms grow to employing 5 people and therefore the need to grow existing firms become important.
(8)	e-commerce needs to be targeted as a medium for growth and increased use - especially B2B
(9)	Improving management skills in small businesses will be a critical success factor.
(10)	There is a correlation, confirmed by research, between the success of businesses and their use of business support facilities.
(11)	By far the most important factor in attracting investment in the quality of the people available.

4.1.3. William Carroll - Director of Social and Community Regeneration, Kildare County Council

(1)	Success factors in the Irish experience
	- educational attainment
	- tax incentives for business
	- labour supply - quality, migration, female participation
	- pay restraint and structural economic policy
	- EU funding - EU enthusiasm
(2)	Key drivers:
	- Greater economic and social cohesion - long term outlook - promote social inclusion.
	- Clear planning
	- partnerships across the economy
	- local strategies involving partnership action
(3)	Lessons:
	- change in economic performance is possible
	- public transport very important
	- infrastructure is important
	- exercise care over important social issues such as the cost of housing, etc.
	- recognise the importance of a participatory society for sustainability
	- Objective 1 is important but put it in context - it is not the driver.
	- no quick fixes - need medium to long term change brought about by the strategic process
	- secure broad agreement on economic and social objectives.
	- retain mix and balance whilst permitting flexibility.

4.1.4. Viv Sugar - Chief Executive, City and County of Swansea

(1)	The new duty of well-being places a clear responsibility upon local authorities to contribute to economic regeneration in the broader context of economic, social and environmental objectives.
(2)	Need to refocus and reshape activities along with partners to provide and inclusive and holistic approach to future structural development
(3)	Local authorities need to act as leaders and enablers - offering the glue to hold everything together - marshalling and harnessing the efforts of others.
(4)	Local government and economic planning generally is still strong on analysis but too weak on effective action.
(5)	Are unitary authorities actually united authorities ? - are internal partnerships effective ?

5. WORKSHOP - COMMUNITY LEADERSHIP, LOCAL PARTNERSHIPS, LOCAL COMPACTS AND COMMUNITIES FIRST

5.1. Context

The Local Government Bill provides local authorities with a duty to prepare local strategies, community plans, with partners which will assist all involved in local communities to share a vision and co-ordinate their efforts to meet local needs. The Community Leadership role of local government is developing as it should into the key foundation stone in the governance of Wales. However, the potential provided by European funding to transform the economic potential of Wales can only be realised if there is effective local partnerships between the public, business and voluntary sector to generate innovate projects which can develop the capacities of local people.

5.1.1. Councillor Shan Wilkinson - Leader, Wrexham County Borough Council

(1)	Working in partnership is difficult - it takes a lot of effort and time.
(2)	The new duty of well-being and community leadership will demand partnership working.

5.1.2. Mike Palmer - Head of Community Affairs, Wales Council for Voluntary Action

(1)	The Council's role is to plan, facilitate, enable and provide.
(2)	The common vision for the area, encapsulated in the Community Plan, will harness the efforts of all, across sectoral boundaries, towards shared goals and outcomes.
(3)	The Community Plan needs to provide the means for the community to participate in its development and delivery.
(4)	Local authority compacts with the voluntary sector are as valuable means of enabling community action.
(5)	The leadership style which the Council employs will be all important - it must be inclusive and not at all authoritative.

5.1.3. Steve Thomas - Head of Corporate Affairs (Designate), WLGA)

(1)	People are interested in the quality of the services which they receive - they are not at all interested in political management structures.
(2)	The focus of the Community Plan needs to be on harnessing collaborative effort to improve the quality of services and the quality of life - everything else is a means for delivering.
(3)	Community leadership does not mean wholly community led - reconciling bottom up community demands with top down strategic demands remains a key and delicate challenge.
(4)	Community Planning should drive the integration and rationalisation of strategic planning and strategic plans e.g. Local Agenda 21 Strategy, Economic Development Strategy.