To submit a report by the Chief Executive.

Submitted – the report of the Chief Executive on the Growth Vision and Strategy for the Economy of North Wales – Governance Agreement.

The Deputy Leader reported that the Growth Vision for the Economy of North Wales sets out a collective and strategic ambition for North Wales for infrastructure development, skills and employment, and business growth.  The five other North Wales Authorities have adopted this strategy and have agreed on a preferred governance mode i.e. a regional joint-committee under the working title of the North Wales Economic Ambition Board: the model is now well established and is on track to present a Bid to Government for initial agreement within 2018.  A governance Agreement has been developed for this first stage of the Growth Deal Bid (GA1) for adoption by all partners to the North Wales Economic Ambition Board.

The Head of Function (Council Business)/Monitoring Officer reported that the Governance Agreement has been adopted by the other five North Wales local authorities and will be considered by the four colleges in September.  She noted that the adopted governance model for the Board is an Executive Joint Committee and not a Joint Committee of the Council.  There will be one representative from each of the 10 partners and the representative from Ynys Môn will be the Council Leader.  The Chair of the Board will be appointed on an annual basis from the local authorities’ representatives but will not have a casting vote.  Gwynedd Council will act as the host authority and the Board will adopt their Standing Orders and Procurement Rules etc.  The Board will be held on a monthly basis and will adopt the Access to Information Regulations i.e. publish Agendas, decisions and minutes.  The quorum for the body will be 4 out of the local authorities’ representatives with one vote each but the non-local authority parties will not be entitled to vote.  However, the agreement states that they have a right to be heard.  She further noted that there is a procedure to deal with deadlock, but that at the end of that procedure, if there is no majority support the decision will fall. The Board has the capacity to create Sub-Boards, which might have either a statutory basis or an advisory basis, depending on their functions, powers and memberships.   The first Board meeting will establish a Transport Sub-Board and the Digital Delivery Sub-Board.  Both of these will be formally constituted as sub-committees, on a statutory basis, to be capable of having powers delegated to them.  A Code of Conduct is attached to the Agreement and this will apply to the non-local authority parties but this Council’s Code of Conduct will apply to our representative.  

The Head of Function (Council Business)/Monitoring Officer further reported that the Agreement will cease when the second stage, GA2 commences.  The Growth Deal Bid is now at an advanced stage of development with Bid content about to be prioritised according to (1) regional choice and ambition (2) informal Government advice on the programmes and projects, which might qualify for their support and (3) business case assessments.  The Growth Deal Bid will move through two approval stages.  Firstly, a Heads of Terms Agreement on the strategic content for further development and, secondly, final agreement of the detailed content supported by full and final five case business model evidence and analysis.  The aim is to have reached the Heads of Terms Agreement in the autumn of this year, and the final agreement for the new financial year 2019/20. 

She further said that the decisions of the Joint Committee will be subject to scrutiny and call-in by the local authorities.  The Chairs of the relevant Scrutiny Committee within each partner local authority will be able to co-ordinate their work insofar as the Board is concerned. This is a power and not an obligation.  An Executive Team of 10 Officers, from each party shall be formed for implementing the Growth Deal and the day-to-day management of the Parties’ obligations in relation to the Growth Deal.   Each authority has contributed a sum of £50k and £25k by the colleges towards the work of preparing the Growth Bid to the Government. 

The Portfolio Holder for Major Projects and Economic Development welcomed the report and expressed that this is an example of the six North Wales local Authorities working together for the benefit of North Wales. 

The following questions were raised by Members :-

·      Councillor Aled M. Jones questioned whether consideration has been given to include the Northern Powerhouse and the Integrated Authority, which represent the Manchester area within the Agreement.  He considered that once the Growth Deal links into those areas it is then when prosperity can be sourced to North Wales.  The Portfolio Holder for Major Projects and Economic Development responded that he agreed that both organisations are important but they have no influence as regard to the North Wales Growth Bid but it is important to link with them as an Advisory body.  Councillor Aled M Jones considered that the opinion of the Northern Powerhouse is important and asked that the Board be aware, during their negotiations, as regard to importance of the Northern Powerhouse as a body; 

·      Councillor Aled M Jones referred to 3.04 within the report which addresses road and rail infrastructure.  He questioned whether the Electrification of the North Wales Railway Network is considered as an UK Wide priority.  The Portfolio Holder for Major Projects and Economic Development responded that the electrification of the North Wales Railway Network is not included within the Growth Deal Bid.  Councillor Aled M Jones further questioned whether the authority is committed to working with the HS2 – High Speed Rail Link project as it will bring benefit to North Wales when the project is completed.  The Portfolio Holder for Major Projects and Economic Development responded that authority in supportive in principle to the project;

·      Councillor G O Jones ascertained as to when reports will be submitted to the relevant Scrutiny Committee as regard to the Growth Bid.  The Head of Function (Council Business)/Monitoring Officer responded that the Agreement should be signed by the parties at the end of September beginning of October prior to the stage of reaching Heads of Terms with both Governments.  The Board will then officially be a legally constituted Joint Committee and will be open to scrutiny by this Council’s Partnership and Regeneration Scrutiny Committee. 

It was RESOLVED that :-

·      Progress on the development of a Growth Deal Bid is noted and welcomed;

·      The Council approves the non-Executive arrangements i.e. the arrangements for Scrutiny as included in the first stage Governance Agreement;

·      The Council be presented with the final draft Growth Deal Bid for review and consent in September/October 2018 prior to the stage of reaching Heads of Terms with both Governments;

·      Delegated authority be given to the Chief Executive and the Head of Function (Council Business)/Monitoring Officer in consultation with the Leader to finalise the terms of the Governance Agreement substantially in accordance with the draft attached as Appendix 1 of the Report;

·      The Executive arrangements contained within the Governance Agreement to be included in the Constitution and the Council be asked to include the non-Executive arrangements relating to Scrutiny within the Constitution.