Heading in the right direction

Jun 4 2008 by James Ramsbotham for The Journal

AS consultation periods go, the one ending on the 20th of this month is one of the most significant in recent history for the regions.

The Government’s long-planned Sub-National Review of Economic Development and Regeneration is rumbling towards its ultimate conclusion and will play an influential role in our future direction.

When the Government announced last July that it was finally considering how to strengthen economic performance in regions, cities and localities throughout the country, NECC welcomed the move.

Primarily, this was because there was disparity between the Regional Economic Strategy and the Regional Spatial Strategy. The upshot is that both documents will be knitted – we hope seamlessly – together.

However, an area of major concern is the move to put the onus for skills development back with the local authorities. This decision will eventually see the demise of the Learning & Skills Council as the body driving forward this vital agenda and will come as a blow to the business community which has worked successfully with the organisation to improve skills in the region.

The overall Sub-National Review puts the onus on One NorthEast, the Association of North East Councils (ANEC) and the individual local authorities to work hand in glove for the benefit of the region. No mean feat, but one which is eminently achievable.

Thank goodness that NECC and others made such a great push for single unitary authorities for County Durham and Northumberland – at least we only need a dozen authorities to sing from the same hymn sheet, as opposed to 25 under the previous regime.

There are two major areas that need clearing up very quickly. The first is one of skills sets. We need the RDA and local authorities to take an honest assessment of the abilities they possess in-house and to consider immediately how they plan to fill the gaps in experience or ability.

After all, they are due to take on considerably more responsibility in some key areas and need to have the talent to fulfil that role to the greatest potential.

Competition for these people will be stiff and I have no doubt that other regions will be fidgeting in their blocks in eagerness to catch the brightest and best. It may well come down to ‘first mover’s advantage’ – the early birds rarely miss out. The second requirement is that of skills. The move to shift responsibility for key elements of learning to local authorities and other new bodies is of paramount importance to businesses.

The business climate is never easy, but it is getting more difficult at present. Ultimately though, this is an exciting time and we look forward to working with the setup when it comes into force.

James Ramsbotham is NECC chief executive