The Northwest Regional Development Agency have issued the following release, updating on next year's closure:
"The Agency, along with all other Regional Development Agencies, will close on 31st March 2012. Our objectives during this period are to ensure an orderly and effective closure which maximises value for the Northwest economy and meeting our obligations to the government to deliver value to the public purse. We also still have a significant programme of activities to manage next year.
The Agency is a large and complex organisation with almost 300 live projects and a large number of assets and ongoing liabilities, including the direct ownership of 48 different land and property sites across the region. Our closure clearly requires careful planning and cooperation with a number of partners (including local authorities through the Regional Leaders Board) and different government departments.
Whilst the future landscape to support the local and regional economy is still emerging, there is significant work and progress in the following areas:
Transfer of Functions
Several NWDA functions will be transferred to Government departments specifically:
- Inward Investment support will transfer to UKTI by June 30th (to be delivered via a nationally procured contract);
- Management of the ERDF Programme will transfer to CLG by July 1st;
- The Rural Development Programme will transfer to Defra by July 1st;
- The Technology Strategy Board will continue a Grant for R&D programme at the national level. The transfer of projects from RDAs to the TSB is yet to be fully determined;
- The Manufacturing Advisory Service will continue. RDAs are looking to exit their current provision by the end of 2011, working with BIS so that the future delivery mechanism is in place and there is no impact in delivery to businesses;
- Venture Capital Schemes, including those run by NWDA, will be managed in the future by Capital for Enterprise nationally. The date of transfer is not determined;
- Grants for Business Investment - this scheme has ceased to operate and grants will only be considered in exceptional circumstances nationally.
The Government has yet to indicate if any of the Agency's other activities or responsibilities will transfer to other organisations. Through the Regional Transition Group the Agency is working with local partners to identify any other activities or knowledge that could be passed to local organisations. The Agency is also compiling a legacy report to document the lessons learnt over a decade of delivering economic development projects.
NWDA Assets and Liabilities
The Minister for Business and Enterprise issued a statement in the House of Commons on 10th February setting out the position for the disposal or transfer of assets and liabilities. The Agency believes any disposals should support future economic growth in the Northwest by ensuring that assets are transferred to an appropriate new host where their full benefits could be best realised, as well as recognising the wider need to deliver maximum value on public sector investments for Government. We have consulted with key partners, initially through the Regional Transition Team), We expect further guidance from the National Transition Board on key principles and policy direction that will underpin future decisions regarding the disposal of NWDA Assets and Liabilities in the near future.
Contractual Commitments beyond March 2012
Any ongoing contractual commitments beyond March 2012 are likely to be transferred to BIS, other Government Departments or possibly a national residual body.
NWDA Staff
We should recognise that this is a difficult time for our staff, whose expertise and commitment has been central to our significant achievements over the past 12 years. The NWDA completed its first Voluntary Redundancy scheme in October 2010, reducing our staff numbers by 92. In January 2011, we started consulting staff on voluntary and compulsory redundancies with our remaining workforce. Following this standard consultation process we expect to reduce staff numbers further in July. Staff remaining after this stage will either have been identified as subject to COSOP or TUPE transfers into other organisations or Government Departments or will be required to manage ongoing projects, assist with the final transition requirements or help with the smooth closure of the NWDA.
We will share more details about the Agency’s closure as they emerge via the website.