A3052 – the road to nowhere?

As EDDC, Exeter City Council and the LEP pursue their push for economic growth and housing provision, our local infrastructure is already showing signs of strain. Traffic increases inexorably along the A3052, with no improvements to the road scheduled for the foreseeable future.

There have always been traffic jams during rush-hour on the approaches to the Sandygate roundabout, but a comparatively new phenomenon is the enormous queues leading back along the A3052 from the Clyst St Mary roundabout. Three-mile tailbacks to Greendale are now commonplace.

The problem is caused by increased traffic from the Sidmouth direction, that is unable to access the roundabout due to large numbers of commuters coming into and out of Exeter and turning right towards Exmouth.

By 2030, East Devon may well have an additional 40-50,000 residents, and Exeter will have also grown considerably, with traffic on the M5 also having increased. Nearly all commuters will drive cars. Yet the authorities, and the LEP, with their ambitious targets for growth, appear to have no proposals for road improvements in our area whatsoever.

The LEP Pop up cafe in Exeteron 6 April 2016 just popped down

Originally advertised for 6 April 2016 at the Fresha cafe in Sowton, Exeter, the link now takes you to a completely different date (Wednesday 27 April). No explanation – no notice of how or why the date has had to be changed.

However, rather than 28 slots for “business advice” of which two had been taken last week, there are now 32 – with extra slots with a taxation expert. All 32 slots are currently available for booking.

Come on you businesses, get that advice from these unidentified experts, otherwise this will look like a very expensive (6 experts each being paid for at least a morning’s work) damp squib on the part of the LEP.

https://www.eventbrite.co.uk/e/heart-of-the-south-west-pop-up-business-cafe-exeter-registration-22583110692

East Devon Alliance on “devolution”

“When the Conservatives won last year’s election most voters had no clue that George Osborne was about to unleash an anti-local democracy, unelected regional quango genii from the bottle.

Having been trusted with more than 30,000 votes, the East Devon Alliance has done all we can to flush this out into the open. Most recently we discovered that the National Audit Office (NAO), the respected Government Watchdog, were conducting a study, this spring, into accountability and value for money in the ever more powerful “Local Enterprise Partnerships’.

As the NAO web site invited comment, we thought it would be helpful if we put forward a view on how Devolution was perceived to be proceeding from a local perspective rather than from Whitehall or the Establishment.

We feel that at present, flying a false flag of devolving more power to the regions, the LEPs are proceeding in a way that is unaccountable, lacks transparency and is likely to have a negative impact on democracy.

Realising our input might arrive in the final stages of compiling the report we also copied it to the Chair of the Public Accounts Committee (PAC), Meg Hillier MP. NAO reports are reviewed by the PAC.

In the event the NAO have come to similar conclusions to us.

If Mr Osborne is hell-bent on his ill-conceived scheme and Parliament is unwilling to trim his sails it is now up to local councillors to do the thinking for him.”

Tata today, EDF tomorrow?

“At Talbot the government appears to have assumed, even at the eleventh hour, that Tata would not dare to walk away from its UK steel business. It was a bad bet, thus the undignified scramble to get the business secretary back from Australia to explain what government intervention in the steel industry might mean, and cost.

But let’s not ignore the other industrial drama involving vast sums, thousands of jobs and a key plank of government strategy. Yes, it’s Hinkley Point, where the UK’s energy policy for the 2020s rests on the premise that French state-backed outfit EDF really will build a £18bn nuclear station in Somerset that will open in 2025 to supply 7% of our electricity.

This bet is looking weaker with every passing week. In the latest instalment, a group of EDF engineers have written a paper arguing that 2027 is the earliest “realistic” opening date. Meanwhile, EDF’s board has not been able to bring its rebellious unions to heel. As we report, Christian Taxil, an employee board member representing the CFE-CGC union, has called for the project to be postponed.

EDF can – and did – dismiss these tales as fluff. The engineers’ paper was not taken to the board, the company argues, and unions’ opposition to Hinkley is long-standing.

The UK government, on the other hand, cannot afford to be so blasé. EDF’s ability to give a final thumbs-up on Hinkley rests on the French government’s willingness to refinance the company. French ministers may not be so relaxed about the latest outbreak of dissent in EDF’s ranks. Come May, the latest “deadline” for a final investment decision, nobody can be truly confident about what will happen.

If the result is abandonment, the UK government cannot plead it wasn’t warned. Hinkley’s chief obstacle has always been simple and formidable – the fact that its European pressurised reactor design is unproven and similar projects in Normandy and Finland are years behind schedule. It would not be surprising if the project expires from exhaustion.

The key requirement for the UK is to have a plan B. The good news is that it should not be difficult to design an alternative energy strategy to meet the capacity crunch in the 2020s; it could be more gas-fired stations, or smaller and proven nuclear reactors. The bad news is that there little to suggest ministers are on the job.”

http://www.theguardian.com/uk-news/nils-pratley-on-finance/2016/mar/30/port-talbot-is-a-big-problem-but-so-is-hinkley-point

Hinkley C just got even more expensive

The cost of building a new nuclear power station at Hinkley Point in Somerset could rise by nearly £2 billion, piling more pressure on the over-stretched finances of the French energy giant EDF, according to a report seen by The Times.

An independent analysis of the £18 billion project claims that Areva, the French company that developed the EPR reactor earmarked for Hinkley, is repricing the technology before a final investment decision, which it expects to be signed by EDF and its Chinese partners in May.

http://www.thetimes.co.uk/edition/news/energy-giant-is-facing-2bn-rise-in-hinkley-project-cost-cost-review-may-add-2bn-to-price-of-hinkley-project-350rcv06w
(article behind paywall)

No doubt in the repricing, there will be attempts to offload the costs elsewhere.

The next French presidential election is due in May 2017. How on earth is Hollande going to explain this away to his successor?

LEP Conflict of interest? Not when you all share the same interest it seems!

We reported that LEP member Nicholas Ames (Supacat) used to work for Serco which has been handed a lucrative LEP contract:

https://eastdevonwatch.org/2016/03/12/lep-conflict-of-interest/

We also reported that Supacat is moving into the nuclear industry:

https://www.nsan.co.uk/news/supacat-ltd-expand-nuclear

Now we hear that Serco is also involved in the nuclear industry:

“A consortium including government outsourcing specialist Serco has won a new framework contract from the Ministry of Defence (MoD) to manage the UK’s nuclear warheads via the Atomic Weapons Establishment through to 2025.”

http://www.hl.co.uk/shares/stock-market-news/company–news/serco-consortium-extends-uk-nuclear-deterrent-contract

Devolution and LEPs – more worrying insights

” … So what is wrong with it?

That question takes us to the first problem that we would want to talk about. Who decides what will happen? Well everything is decided at central government level. In particular, and I just mentioned George Osbourne, it’s quite odd that the whole thing is being driven by the Treasury rather than the Department for Communities and Local Government (DCLG). So it’s Osbourne’s particular baby.

The way it works is that officials from the Treasury, certainly with people from DCLG too, enter into secret bespoke discussions with whoever approaches them and say “please may I have a slice of your devolution pizza?” They say “well, OK, we’ll come and talk to you.”

These discussions have all been held behind closed doors so at best it’s a discussion between the Treasury, the Department of Communities and Local Government, the leaders of the local councils who will probably be statutorily constituted as a combined authority and the Local Enterprise Partnerships, the LEPs.

The first problem with that is where does it leave the citizens? The citizen has no say, has no seat round the table and is not party to any of these discussions, which is an odd thing because you might think in principle devolution is at least in good part about devolving power to the local citizenry. Yet here are deals being hatched that exclude the citizen’s voice. I think that’s our first problem, discussions taken in private.

So, what are Local Enterprise Partnerships and how have they become so powerful in such a short time?

LEPs were the substitutes for the Regional Development Agencies or RDAs. RDAs were abolished once the coalition took off in 2010, they were abolished over a timespan of a year or two. So LEPs are the replacement.

LEPs are not statutory bodies, so in that sense there’s no clear channels of public accountability. They are basically a group of self-selecting business people who come together on a local basis and have the power to bid to Regional Growth Funds to get money for local enterprise development. They do have governing bodies and essentially the government’s arrangement is a mix of local business people again, as I said, pretty much self-selected because it’s done on a voluntary basis and members of the combined authority. So it’s a mix of politicians and local business people who sit on the LEP governing body.

It’s not a mix that always works well. LEPs have crept into a powerful position and sometimes central government will say certain things may be permissible at local level, for example increasing the business rate by 2%, but only if the LEP agrees. So LEPs are accreting little bits of power here and there even though they have no statutory basis for exercising their powers.

I guess most people will not have heard of LEPs. They are fairly shadowy and it would be fair to argue that if they’re going to exercise an increasing range of powers, they should be put on a statutory basis and there should be proper accountability to local people.

I thought it was fascinating in your article when you mentioned that Local Enterprise Partnerships resisted any examination of what they were doing on the grounds that it might “scare business”. That’s just extraordinary.

I would guess any self-respecting LEP is feeling a little bit awkward itself about all of this. LEPs are not statutory. They’re not accountable in any way to people living in a local area. They’re run on a shoestring, yet here they are having quite a significant voice round the table. That will be one of their concerns, that we need to talk about these things privately. This is part of what I’ve been calling the ‘democratic deficit’.

The second thing that perturbs me a lot about this is that as well as having private discussions that exclude the people, the government then goes on to require a form of governance that they prefer and which people have no choice over. I’m referring here to the requirement in the Act of Parliament now, that in order to get a deal, most places (the South West might be an exception because of its geography) must have a directly elected Mayor.

Take where I live: I’m up here in the North East. We will have one person whose remit will run from the Scottish Borders right down to the Tees Valley. It’s a vast area. One person running a swathe of important public affairs, and no-one’s been asked if they would like that model. It’s completely unclear where it leaves thousands and thousands of local councillors whose services will probably no longer be required.

What does this tell us about localism and the Big Society and all of that stuff that was very much heralded at the beginning of this government?

It was going to give all this power back to local people and so on and so on. Now that we’re a few years into it and we’re starting to be able to see what it actually looks like, what do you think it tells us about the motivation behind it? Who are they doing it for?

My view of the Big Society is that it was simply an attempt to cut costs and transfer services out to the third sector but without the necessary funding to accompany that transfer. You don’t hear a lot of talk these days about the Big Society, do you? So where are we left with this?

We’re left with councils cut to the bone and the suspicion through the whole devolution policy that what the government wants to do is transfer responsibility for funding and public spending cuts to a more local level. Regional, sub-regional, currently it’s with the local councils. That’s probably best not described as devolution. It’s best described as delegation of responsibility for funding. It can even apply to the NHS, in particular in Greater Manchester, which so far is the only devolution deal which has involved fairly clear agreement to take on responsibility for NHS services.

There are some very important and worrying questions being raised by all of this. What we’re slowly doing is taking the national out of a lot of services that have been national and making them local. In principle it has some attractions but in the current economic and political climate, I’d be very worried about taking responsibilities on when the funding was disappearing.

A lot of this stuff is being justified on the grounds of economic growth. What do you think we run the risk of sacrificing in our desperate attempt to achieve economic growth?

If there’s one implicit objective of the devolution deal, it’s the idea that it will spur economic growth. This is George Osborne’s real focus. You devolve to core cities and through devolving some powers over transport and regeneration you get the benefit of agglomeration. That may well work in certain geographies but even if you did get more growth – I think it’s a bit unclear exactly why you would – but even if you did, more regional growth is one thing. How you use the proceeds of that is another.

If you take the Northern Powerhouse as the most frequently cited example, it may well be good for Manchester, maybe even for Leeds, but once you get out into the rural areas and the older industrial areas, it’s not easy to see how this will be of benefit in these wider geographies. It’s a question about the type of growth and the proceeds of growth as well as whether you get the growth at all.

If people read your article and feel like something very valuable, something very precious is either slipping through their fingers or being wrenched from their grasp depending on which way they look at it, what can they do about it?

That’s a good question, isn’t it? We’re looking at a whole range of different ‘devo deals’. What the Chancellor did late last year was to invite local areas, regions and sub regions to put in a bid for a deal, and they were given seven weeks to do it. Seven weeks. Thirty eight such bids were received. Most of them were not considered strong enough to take forward, so we only have about half a dozen that are currently going forward.

I guess you could stop these deals in their tracks if one or more local councils who were in the combined authority said “we don’t think this is a good deal, sorry, we’re pulling out. We just don’t want to go ahead with it.” You would then suffer a loss of course, because you would be seen as a poor team player. There are more powers coming along, even if these are delegated powers, and there’s a bit of money at stake. Always follow the money! Council spending is being crucified.

But as part of the devo deals, the Treasury comes along and says “if you sign a deal on our terms, we will give you x amount of money.” My own area, the North East is pretty typical. The deal up here with the North East Combined Authority is £30 million per year for 30 years. Incidentally, I have never known a political pledge that was ever honoured over 30 years! But that’s the deal on offer.”

https://www.transitionnetwork.org/blogs/rob-hopkins/2016-03/bob-hudson-devolution-there-are-some-very-worrying-questions-being-raised-

Hinkley C: the damning views of its own French engineers

EDF dissenters urge Hinkley nuclear delay

nicosiamoneynews.com Wednesday, March 30, 2016

Senior engineers at French utility EDF have called for at least a two year delay at the controversial Hinkley Point nuclear project in the UK and recommended a redesign of the reactor technology.
An internal white paper written by dissenting EDF engineers, which has been seen by the Financial Times, argues that Hinkley Point is so complex and untested that the company should announce a later completion date than the target of 2025.

The paper, circulated among top executives, said that the “realistic service date was 2027” due to the size of the project, continuing design modifications to the European Pressurised Reactor system and the “very low” competency of French supplier Areva in making some of the large components.
The white paper also made the case for a “new EPR”, calling on the company to redesign the current reactor technology to make it smaller, cheaper to build and less complicated.

A timely start-up at Hinkley Point, which will provide 7 per cent of UK electricity, is critical because the government has set 2025 as the date by which the last of Britain’s coal-fired power stations is due to close.
EDF said in a statement last night that it would stick to the planned timetable. “The date for the first operation of Hinkley Point C has not changed. It will be in 2025,” it said.

But experts say any slippage in that timetable was likely to mean having to pay companies to keep older plants running or even build more short-term, highly polluting diesel power.

EDF has been beset by internal tensions over Hinkley Point, with chief financial officer Thomas Piquemal resigning this month over concerns that the project could threaten the company’s future.

Critics have raised concerns over the £18bn cost, given EDF’s stretched balance sheet. Two other projects in France and Finland using the same EPR technology are both severely delayed and billions over budget.

The unsigned white paper was written after Mr Piquemal’s resignation by a group of senior engineers and other dissidents, according to people with knowledge of the document. The company plans to make the final investment decision on the project at a board meeting on May 11.

Doubts grow over hitting the zero-carbon target

According to existing plans, 2025 is to be a pivotal moment in the history of British energy. The problem is that while the closure of coal power plants is accelerating, the prospect of Hinkley Point opening by 2025 appears to be receding.

In the paper, the EDF engineers called for a joint “Franco-British project” to commission four to six “optimised EPRs” by the end of the decade that could be operational between 2028 and 2031.

One person with knowledge of the company likened the current EPR to the Concorde supersonic airliner, a technical marvel but a commercial failure. The new EPR would be “more like an Airbus”, the comparatively simple but successful passenger aircraft.

The paper also addresses wider fears that the Hinkley project will in any case not be completed by 2025 and might suffer years of construction delays.
One person on the EDF board who had read the white paper said: “Few believe that we can build this [Hinkley Point] by 2025 any more.”

Another person close to the group said that 2025 was set to remain the official target, but the final decision could incorporate a margin for error because even with a two-year delay the project would still be profitable.
Three people close to the company said that CGN, EDF’s Chinese partner for Hinkley, also feared possible delays, attempting to insert a clause so it would take on a lower financial risk if there were a large problem.
Nuclear options

Engineers believe 4-6 smaller, simpler power plants could become operational as early as 2028, only a year later than the backstop date for Hinkley. UK ministers should consider this option.

In the case of a £5bn cost overrun, despite EDF having a 66.5 per cent stake in the project, EDF would be liable for 80 per cent of the additional costs, according to a document sent by the EDF finance department to the board’s audit committee in January.

That figure could be subject to change as the final investment decision has not been made. EDF declined to comment on the number.

The Hinkley project is still likely to go ahead as planned. Three out of the four EDF unions with board seats are against the project in its current form, as well as at least one independent board member.

But the majority of the 18-strong board is likely to vote in favour of the deal in May, according to people close to the group. The company is 85 per cent state owned, and the government wants the project to go ahead.

http://nicosiamoneynews.com/2016/03/29/edf-dissenters-urge-hinkley-nuclear-delay/

Is our LEP already in the doggie dirt?

The more Owl reads about what our Local Enterprise Partnership should be doing and what it does do, the more it seems that the LEP inhabits a totally different universe to us where its own rules don’t apply

Check out this publication from December 2014: Her Majesty’s Government LEP Framework. And then contrast it with what has happened in the two plus years since it was published.

Click to access bis-14-1241-local-enterprise-partnership-LEP-national-assurance-framework.pdf

Here are a few choice highlights – let’s start with one that appears on the very last page of the document (page 17):

Business cases must be published (and publicised) before funding approval decision is made so that external comment is possible. Opinions expressed by the public and stakeholders must be available to LTB members when decisions are being take.”

Does anyone recall being consulted about ANYTHING by our LEP? Has anyone SEEN a business case for anything?

And there is more:

“… 3.1 It is important that LEPs have clear arrangements in place which enable effective and meaningful engagement of local partners and the public. They should operate transparently giving people confidence that decisions made are proper, based on evidence, and capable of being independently scrutinised.
3.2 We expect LEPs to take a proportionate approach to sharing and publishing information, using the prompts set out below as the basis for determining what they release. We fully expect that there will be information which is not appropriate for publication – including information that is commercially confidential, and expect LEPs to use their own discretion in determining what shouldn’t be published. Our expectation however, is that the public should see that the LEP is applying similar standards of transparency as other public sector organisations over decisions it makes over public funding. Within reason we would therefore expect LEPs to:
• have a dedicated website through which local partners and the public can keep in touch with progress on implementing the Growth Deal, access key documents etc;
• publish their arrangements for making, and recording decisions, and for ensuring that papers, decisions, minutes, agendas etc are published in line with existing local authority rules and regulations [access to information, Schedule 12A of the LGA 1972, as amended by the FOI 2000];
• through their accountable local authority, ensure that Freedom of Information and Environmental Information Regulation requests are dealt with in line with relevant legislation;
• have a published conflicts of interest policy, register of interests covering any decision makers, and published complaints policy;
• ensure that there is appropriate local engagement – both with public and private stakeholders to inform key decisions and with the general public around future LEP strategy development, and progress against delivery of the SEP, including key projects and spend against those;
• publish arrangements for developing, prioritising, appraising and approving projects, with a view to ensuring that a wide range of delivery partners can be involved (see also Part 5 on value for money below);
• clearly set out the LEP’s priorities and mechanisms for maximising the social value of its investment funding and activities so that partners and beneficiaries can play an active role in the programme. …

… 4.2 The lead local authority, working with relevant officers will need to put in place appropriate arrangements for the proper use and administration of funding, building on the existing local government systems, and which fall under the annual audit of the local authorities accounts. The accountable local authority would also be responsible for ensuring that decisions are made in accordance with the local LGF assurance framework. …

… 5.4 Across both of these aspects, LEPs should ensure that they have robust processes in place which ensure all funding decisions are based on impartial advice. The arrangements set out in the local assurance framework will need to ensure a clear separation between those acting as scheme promoters and those advising decision makers will be maintained, so that the LEP is acting on impartial advice on the merits of (potentially competing) business cases.

5.5 LEPs should also ensure that arrangements are in place which support the active management of risk across all matters for which the LEP is responsible, including but not limited to propriety and value for money issues. This should include having a named individual of appropriate seniority who is responsible for the identification and management of risk.”

ANYONE SEEN THE IMPARTIAL ADVICE? Until recently, we had no published agendas or minutes, and even now we get only notes not full minutes.

But what can we do? Who do we tell? The government doesn’t want to know, it just wants an annual report. Our councils? No, they have gone into this with little or no consultation.

It is left to us, the public to attempt to hold these people to account. And how do they respond?

Listen to the deafening silence.

Billions of pounds being given to a few businessmen and even fewer career politicians, some of whom have heavily vested interests.

And the blame for this cannot now be left at the door of Labour or coalition politicians.

It is a national scandal that no-one powerful enough is prepared to call out. And who suffers – us.

“Five ways to power the UK that are far better than Hinkley Point”

” … Electricity demand is already falling. The Somerset site for Hinkley C was approved in 2010 but since then UK demand has already fallen by more than the plant will produce, about 25TWh a year or 7% of today’s demand. Due to repeated delays, Hinkley C is unlikely to produce electricity much before 2030, by which time six Hinkleys’ worth of electricity could have been cut from the national demand, according to a McKinsey report for the government.”

http://gu.com/p/4htaf

The article goes on to say that five different approaches – wind, solar, cost reductions, inter-connection and improved storage and flexibility – are a more rational scenario than Hinkley C.

Which of these alternatives is our LEP researching for our region – none of them. It is firmly committed to this government’s political decision to plough ahead with Hinkley C whatever the cost.

This is what happens when you put unelected business people, chosen we know not how and many with vested interests, in charge of a regional economy

What is our LEP doing about preparing Plan B in case of Brexit?

It is possible they are doing nothing. We are not allowed to know – it is secret. Here is what some small and medium-sized companies are already doing:

“Above a factory floor of machines carving metal to within a millionth of a metre, Stephen Cheetham is preparing his company for the unknown: a British exit from the European Union.

Since the government announced a referendum on Britain’s future in Europe, Cheetham has deferred investment decisions, put off expensive hiring and even bought equipment with his own money to avoid straining the balance sheet. …

… smaller companies in the manufacturing heartlands, crucial to the economy and often inextricably linked to continental Europe, are formulating contingency plans that illustrate the risks facing businesses across the country and the steps being taken to mitigate them.

At the start of 2015, almost half of Britain’s private-sector turnover came from firms that employed fewer than 249 people, according to the Department for Business.

For Cheetham his “disaster plan” involves jettisoning nearly half of his 30 employees if a Brexit compounds the drag from an already slowing global economy at his firm in the English rural town of Hereford.

Across the nearby Welsh border, Gareth Jenkins, who runs a toolmaking firm, has identified which major customers in Europe are likely to abandon him should they have to accept higher costs or slower delivery times that might come from new border controls with EU countries if Britain leaves the bloc.

He has calculated the financial impact and says in a worst-case scenario he could lose 25 percent of his turnover. He plans to tell his 91 employees in the next couple of weeks that a vote to leave could force him to lay off a quarter of staff. …

… Adam Shuter, head of haulier Exact Logistics, is investigating whether he should set up a German office, which he thinks could cost less than the additional taxes and paperwork of serving EU customers from outside the bloc.

“For a small business, it’s quite a bit of investment,” he said. “It just adds a layer of administration.”

He is also gauging the extra customs costs his British customers might incur outside the EU, using non-members Norway and Switzerland as guides, and looking at how much it would cost to set up expensive software to handle border clearances.

… British importers also fear they will have to pay VAT sales tax when they take delivery of goods from the EU – rather than at the point of sale – making cashflow harder to manage.”

http://feeds.reuters.com/~r/Reuters/UKTopNews/~3/-5hiZnmQ1Wo/story01.htm

Gateshead asks sensible questions before committing to devolution

“Town hall leaders in the North East are making a series of demands on George Osborne on a number of key issues as talks to devolve powers to the region continue after councillors in Gateshead failed to endorse the latest deal.

An agreement would see the North East handed a raft of new powers and an extra £30m in regional funding in return for establishing an elected mayor as part of the Chancellor’s Northern Powerhouse agenda.

But Gateshead Council’s cabinet voted last week to reject the proposals, sparking doubts about whether the deal could be made.

The region’s six remaining local authorities are now looking to press ahead, but are calling for “clarification and commitment” from the Government on a number of “outstanding issues” from the Government before deciding whether to give their seal of approval to the multi-billion pound covenant.

The North East Combined Authority has set out a list of these issues ahead of further talks with the Government and has delayed making a final decision until May.

Newcastle Council’s leader Nick Forbes, whose council has endorsed the deal, said at a meeting of the authority’s leadership board: “None of us would have had this deal as a starting point, but it is important that we take this first step.”

Helen Golightly, North East Local Enterprise Partnership’s chief operating officer, said the meeting “underlined the region’s continued support for devolution”.

She said: “There are still matters where the local authorities feel they need more clarification from Government. The North East LEP remains fully supportive of the devolution process.”

She added: “Devolving powers will give us more opportunity to help drive the economic growth our region needs to contribute our full worth to the UK economy.”

Outstanding issues include a lack of certainty over £30m a year funding over 30 years and the need to “rural proof” investment to ensure rural areas are not left behind. The councils are also awaiting confirmation on how the Government plans to devolve funding for sustainable transport. Leaders also want further commitments to ensure the North East is not put at a financial disadvantage in relation to Scotland.

Jeremy Middleton, North East LEP board member and a mayoral candidate for the region, said the North East Combined Authority’s politicians were “holding the region back”.

He said: “This delay means there is a very real risk that the North East will be left behind again.”

A Government spokesman said: “The Government is making huge progress towards rebalancing Britain’s economy and empowering local areas through the devolution of powers and resources away from Whitehall.

“This is a bottom up process and if any local authority in the end decides it no longer wants to be part of it, then we will continue to work with those local partners who do, in order to make this historic opportunity in for the North East a reality.”

http://www.independent.co.uk/news/uk/politics/devolution-northern-powerhouse-gateshead-knocks-back-george-osborne-over-devolution-deal-for-north-a6957206.html

Nuclear energy: small is good, Hinkley C … so yesterday!

“Nuclear reactors may be about to shrink before our eyes.

After decades of building giant reactors in domes big enough to swallow a cathedral, nuclear engineers are thinking small.

They believe part of the solution to the energy crisis will come from factory-built mini-reactors, just 23m (75ft) long, delivered to the site on the back of a lorry.

Fans of small modular reactors (SMRs) say they will avoid the problems of delay and cost over-run that has beset traditional reactors.
Most importantly, they say, “mini-nukes” as small as a tenth the size of a conventional reactor would be much easier to finance.

Financial concerns

Finance has become the biggest obstacle to new nuclear plants.
The UK is locked in nuclear paralysis because EDF hasn’t yet confirmed the funding for the planned Hinkley C nuclear power plant – despite the backing of two of the world’s richest governments, France and China.

Footloose investors scanning the world for money-making opportunities tend to turn away when they see a nuclear reactor taking years to build, fraught with technical and political risk.

Solar and wind energy offer much more predictable returns in a fraction of the pay-back time.

But SMR fans say mini-nukes as small as 50 megawatts (MW) could change that. They suggest it’s as simple as placing your order and waiting for a reactor to turn up. Then plug and play – and wait to get your money back.

If you want large-scale power, just line up a dozen SMRs side by side. It’s a bit more complicated than that, of course, but potential offered by this technology is exciting governments worldwide.

In his most recent Budget, the Chancellor George Osborne announced a competition for the design of small modular reactors for use in the UK.”

http://www.bbc.co.uk/news/business-35863846

Cabinet Agenda – 5.30 p.m. Knowle, 6 April 2016 – a meaty mix of relocation and devolution WITH NO MEANINGFUL COSTINGS WHATSOEVER

144 pages

Minutes take up the first 31 pages

Relocation – pages 32-49
This update is to advise on progress of the relocation plans and seek Cabinet agreement to further key actions”.
Appendix 1 – Floor plans Honiton HQ and Exmouth Town Hall refurbishment
Appendix 2 – Pegasus Life plan for Knowle Site buildings footprint
Appendix 3 – Service Delivery and Office Relocation Survey results summary

RECOMENDATIONS
;
Knowle Site:
1. Note that Pegasus Life Ltd following public consultation exercises will be submitting its application for development of the Knowle site . The projected likely date of consideration of the application is July 2016
2.Note that Sidmouth Town Council has responded positively to the Deputy Chief Executive ‘s formal proposal to transfer the remaining Knowle Park to Town Council ownership together with a commuted sum and negotiations continue Honiton Heathpark
3. Note that preparations are underway by the design team to submit a planning application for new build Council offices at
Heathpark with a view to Planning Committee consideration in September 2016
4. Note that the new HQ design is moving from concept to detailed design of space allocations for desks, meeting spaces, storage, reception area, Chamber, member area, services and external works
5. Note that construction is planned to commence in November 2016 for a period of up to 12 months, followed by Client Fit Out
Works with occupation of the new HQ targeted for February 2018
6. Note that the Deputy Chief Executive has again met with businesses and staff at the East Devon Business Centre to discuss and advise on project progress Exmouth Town Hall
7. Note that the Deputy Chief Executive and design team have met with tenants of Exmouth Town Hall to discuss their needs,
concerns and expectations regarding the refurbishment of the building and its impact on their operations including any disruption or temporary displacement
8. Note that the Council has issued Section 25 notices to end the tenancies of Town Hall tenants to be followed by negotiation of
new tenancies
9. Note that refurbishment is planned to commence in Autumn 2016 and last between 8 – 10 months, followed by Client Fit Out
Works.

Other
10. That Cabinet approve the use of £47,040 of transformation funds for the additional scope required within the Electronic
Document Management System.
11. Note that the Council has appointed Interserve to provide the Pre Construction Advisory role through a two stage
competitive tender process based upon the CFSW Framework. As part of the second stage tender process, Interserve will be
asked to provide their firm fixed price tender for the Project Works later this Year. If in the event the received tender is not
acceptable a further tendering process will be carried out.
12. Note that there continues to be ongoing detailed engagement with staff and tenants regarding space allocation, twin site
facilities, team locations, internal design, fit out and operational requirements
13. Note that Members have received a presentation on new offices design and layout. Further presentations and discussion will be arranged as the project moves forward
14. Agree SMT’s decision to locate Housing Services in the main as well as availability of other front facing provision (Benefits,
Environmental Health, Planning) on the basis of the findings of the Service Delivery and Office Relocation Survey with
residents (attached at Appendix 3)
15. Note the successful recruitment of a Relocation Facilities Manager post to prepare and oversee the physical relocation of staff and resources”
FOLLOWED BY LOTS AND LOTS OF BUMPH ABOUT WHAT AN EXCELLENT IDEA RELOCATION IS – BUT WITH ALMOST NO NUMBERS …


Devolution – pages 50 – 92

Click to access 060416-combined-cabinet-agendasm.pdf

“To update members on progress of the Devolution Prospectus”
Appendix 1 – Governance Workshop Notes
Appendix 2 – Governance Workshop slides
Appendix 3 – Briefing key messages
Appendix 4 – HoSW Prospectus for Productivity presentation
Appendix 5 – HoSW Productivity Plan Workshop Meeting notes
FOLLOWED BY LOTS AND LOTS OF SLIDES ALL SHOWING WHAT A WONDERFUL THING DEVOLUTION IS – BUT WITH ALMOST NO NUMBERS …
AND ENDING WITH THIS WONDERFUL EXAMPLE OF ALMOST TOTALLY MEANINGLESS LEP JARGON:

“Conclusions and next steps
The key step was felt to be the development of a vision and criteria to drive the development of the productivity plan and the
work streams within the devolution prospectus. Building on the 6 golden opportunities exploring
a) what will move us forward rapidly
b) what will stop us moving backwards

Need this vision to be developed and agreed by our Leaders before we do too much more work within the theme areas.
Recognise that we need to keep the pace.

Twin track process:
The Productivity Plan being the longer term vision of transformation irrespective of what devolution deal we obtain. It will be an overarching plan that will drive ambition for the area.

Devolution – will work rapidly with government to agree a Heads of Terms similar to the East Anglia devolution
model and push for an early deal.

We could commission our universities to undertake some research to explore the options for transformational change in our area to inform the development.

Action:
The PMO will be asked to develop a Next Steps document for comment on the development of the vision, criteria, and the framework and resources required to deliver a shared plan.”

Devolution: the next 5 years – councillors should be ashamed of themselves for signing us up with no consultation

House of Commons
Communities and Local Government Committee
Devolution: the next five years and beyond. First Report of Session 2015–16 25 Jan 2016

Extracts

Devolution Objectives (Conclusion para 21)

As set out above, our witnesses gave us many important and ambitious reasons for pursuing devolution, particularly so for health devolution. However, with the exception of increasing economic growth, we are not certain whether these are intended to be the measurable objectives of devolution and are not convinced that the Government itself is any clearer. We are also not satisfied that the Government has considered and identified how to measure the success of a devolution deal once in place.”

The Approach to Devolution (from para 24 and 25)

….the current approach to devolution in England is overtly one of deal-making, which can be characterised as negotiations behind closed doors between central government and representatives of local authorities….
……Indeed, one of the consequences of deal-making is that devolution does not happen in a uniform manner; deals have so far been agreed with seven city regions and with Cornwall. Professor Pike described it as “very ad hoc” and “piecemeal”…..”

On Public Engagement (from para 51 and 52)

“We have been struck by the lack of discussion and consultation with the public in areas which have proposed, negotiated and agreed devolution deals.

At the question and answer session we held with residents during our visit to Greater Manchester, the vast majority of contributions, often made in angry tones, arose from the perceived lack of efforts by the combined authority to engage the public about the deal relating to their local area.

While many valid points were made, we note that attendees, having elected to attend the session, were not necessarily representative of all Greater Manchester residents who are likely to be less aware of devolution.

We were told that there had been a “complete, utter and total lack of democratic engagement”, “insufficient information” and that most people did not understand what Devo Manc was all about.

When we raised this with our Greater Manchester witnesses, Cllr Kieran Quinn, the Leader of Tameside Metropolitan Borough Council, said he fully accepted there could have been more transparency. Cllr Sue Jeffrey, the Leader of Redcar and Cleveland Borough Council, told us that Tees Valley had not consulted the public before signing up to a deal and Cllr Alan Rhodes, Leader of Nottinghamshire County Council, said they were talking about the deal in the media and would hold a public consultation once it was agreed.
…..Cllr Quinn reasoned that, as the deal was bringing new powers to local people, not taking them away, limited public engagement could be excused
……….

Conclusion (para 56)

“We think it is too late to engage the public only once a deal has been agreed. While it is reasonable that the actual negotiations are not open to the public, steps should be taken to inject more openness into the process by publishing on the relevant authorities’ websites:

• Devolution proposals and the Government’s counter-offers, within a reasonable time of them being made;
• An outline of what is being negotiated; and
• Drafts of the deal, and the text of the final deal.

The Government should also publish the criteria it uses to assess and agree proposals so local areas can refer to these when drawing up their devolution bid. A similar level of transparency should continue to be maintained once the deal has been agreed.”

Scrutiny (Conclusion para 77)

As the DCLG says, the overview and scrutiny requirements in the Bill are an initial framework to be used as a basis for more robust provisions, which we believe have a role in fostering public confidence in the new arrangements, as well as balancing vested interests. These should be developed to suit the characteristics of the local areas as a result of deliberate efforts to hold active discussions at local level, with residents involved in designing new and more open methods of scrutiny.

Local areas need to give active consideration to how the mayor will work with the council leaders and how s/he will be held to account. Although the elected mayor is intended to be a ‘first among equals’, s/he may soon establish, or already have, a profile and position which makes this balance difficult to achieve.”

Devolution confusion

Unfortunately, the Committee did not tackle the situation where a Local Enterprise Partnership has greater powers than the Mayor. Though, of course, it is likely that one of the politicians currently on the LEP will become the devolved Mayor and will serve himself or herself AND the LEP as well as their own councils and us the common people!

But what a spanner could be thrown in the works if an Independent stood and won!

“Potential for confusion

78. From what we have seen and heard, we are very concerned that the public will not understand who will be responsible for what in their local area.

The Devolution Bill makes a distinction between the powers of the mayor and those of the combined authority which translates into the mayor and the combined authority being responsible for different services.

For example, in Greater Manchester, the interim mayor is responsible for transport, but not health, which is within Greater Manchester Combined Authority’s remit.

Some witnesses argued that this is not a problem in London where the Mayor of London’s responsibilities differ from those of the London Boroughs. But Alexandra Jones, the Chief Executive of the Centre for Cities, said this will need to be tackled as part of the “public education programme” around devolution and Professor Copus said that “the mayor, counties and the districts have to be prepared to point people in the right direction”.

When we put our concerns to the Secretary of State for Communities and Local Government, he said that it would be “for that mayor to make very clear the platform on which they stand and the things they are doing in office”.

Click to access 369.pdf

More alarm bells on devolution – from Parliament

The Government has announced a ‘devolution revolution’, transferring powers and opportunities to local government through a series of ‘devolution deals’.

Cities and Local Government Devolution Bill gives statutory authority to deals and enables some of the specific reforms the Government wishes to make, such as introducing directly-elected mayors for combined authorities. This inquiry set out to examine the contents of the Bill and, in particular, whether Greater Manchester’s deal is a model for other areas, but its scope quickly widened to a review of the way in which devolution in England is proceeding.

We strongly support the principle of devolution. We welcome the fact that, at the start of this new Parliament, it occupies such a prominent position on the Government’s agenda. We acknowledge the personal contribution of Greg Clark, whose support and involvement since 2010 has been key in driving devolution. We expect to see this commitment continue, and for it to be shared by an increasing number of Departments, over the next four and a half years.

We are acutely aware that all deals are at an early stage and need time to bed in, and that many devolution bids are still to be negotiated. We therefore expect to review progress by the end of this Parliament and at regular intervals thereafter. Although it was not the focus of this inquiry, in line with our predecessors, we will continue to press for fiscal devolution: our next inquiry will look at the plans to allow local authorities to retain 100 per cent of business rates, and we will review the progress made on fiscal devolution.

We have identified various aspects of the current approach that we recommend are refined and improved now. Otherwise, the policy risks being rushed and appearing driven by a purely political timetable. We see a role for scrutiny by select committees of the secondary legislation enacting deals and the Government’s annual report on devolution, required by the Bill.

We have found a significant lack of public consultation and engagement at all stages in the devolution process. People are keen to be involved; our public session in Greater Manchester highlighted residents’ strong appetite to be included and consulted. The public should be engaged in the preparation of devolution proposals, insofar as possible during the negotiations and once the results of a deal have begun to make an impact, and communicated to throughout the process. This is particularly the case for health devolution where the systems in place are complex, changes are consequently more difficult to understand and the public’s response is likely to be more emotional.

We also believe that the Government’s approach to devolution in practice has lacked rigour as to process: there are no clear, measurable objectives for devolution, the timetable is rushed and efforts are not being made to inject openness or transparency into the deal negotiations. We suggest various ways in which proper process can be ensured; for example, with an agreed timetable for the negotiation and agreement of a deal.

Once deals are up and running, there will be a complex division of responsibility – between local authorities, the combined authority and, in some places, the directly-elected mayor— which will not necessarily be apparent to the public. Responsibility needs to be determined in a way that makes sense to the public, and consideration of these issues should be a significant part of the deal-making process with the division of responsibilities clearly spelled out. We received no clear explanation as to how accountability under health devolution will work and have recommended that the Government revisits this issue. There is a need for a clear articulation of how health devolution will work.

We strongly believe that areas should be able to acquire further devolved powers over time. Where an area has asked for particular devolved powers but was refused, those powers should be available to it if they are given to other similar areas at a later date.

Our ambition is that, by the end of this Parliament, the Government and local authorities will reach the position of ‘devoylution by right’, with the Government having announced a package of powers that will be on o er to local government. is would be a starting point for even more ambitious and wide-ranging future deals and possibly a more comprehensive package of devolved measures agreed between Government and local government as a whole.”

Summary taken from:
Devolution: the next five years and beyond
First Report of Session 2015–16
Report, together with formal minutes relating to the report
Ordered by the House of Commons to be printed 25 January 2016

http://www.publications.parliament.uk/pa/cm201516/cmselect/cmcomloc/369/369.pdf

And what do you know – EDF shoulders part of Chinese investment risk

“French utility EDF (EDF.PA) has agreed to shoulder part of Chinese partner CGN’s financial risks should there be delays or cost overruns in the Hinkley Point nuclear project in Britain, weekly Le Journal du Dimanche reported.

The newspaper cites a note by former chief financial officer Thomas Piquemal to the EDF board’s audit committee regarding the 18 billion pound project.

The notes says in the case of five-billion-euro cost overrun, EDF would have to finance 80 percent of it, despite having a 66.5 percent stake in the project.

In case of a six-month delay, state-controlled EDF would have to refund several hundred million euros of CGN’s initial investment.

If the Austrian government is successful in its complaint to the European Commission over what it regards as illegal state aid for the project, EDF would have to pay CGN 1.6 billion euros.

The newspaper also reported that CGN has a bigger say in the governance of the Hinkley Point project, including veto rights on any dividend payments, accounting, budget and board member pay. EDF was not available for immediate comment.”

http://uk.reuters.com/article/uk-edf-britain-nuclear-idUKKCN0WT09V

All roads lead to Hinkley C?

One of the great mysteries of the HotSW LEP’s devolution plans is the fact that massive development is planned for Exeter/East Devon, but they don’t want to see the A303 dualled between Honiton and Broadway/Ilminster.

We are proposing a huge increase in employment and population, but the LEP is campaigning to keep the road single carriageway. It really is most odd that Devon County Council and the LEP don’t want to see the road dualled, despite ambitions for enormous growth.

City regulators jittery about Chinese investors – watch out LEP!

L and H

The Sunday Telegraph Business has a front page story thaT deals with Chinese investors have been blocked by regulators world-wide “amid growing doubts over their ability to see through a deal”.  Deals for Chinese investors to buy merchant bank Kleinwort Benson and London City Airport have been abandoned recently.

Although most newspaper articles talk about the French (EDF) investment in the Hinkley C nuclear power station, 25% of the investment is to come from the Chinese. No deal has yet been signed, as it is contingent on the EDF deal being underwritten by the French government.

Add to that the fears that Brexit might cause knock-on problems for Hinkley C and, in the words of Laurel and Hardy:

“That’s another fine mess you’ve got me into, Stanley”!