To obtain approval for the proposed approach to the formation of the Herefordshire Investment Partnership highlighting the suggested structure, scope, and responsibilities. 

The formation of the Herefordshire Investment Partnership (HIP) will provide the council with a mechanism to engage with key partners involved in the delivery of major regeneration and infrastructure projects.  Specifically projects that are included within the Herefordshire economic vision.  In addition, the formation of the HIP will provide the council and partners with an element of private sector experience and opinion prior to project implementation.

The Economic Vision has been adopted by the council as the county’s economic development strategy.  Gaining private sector experience and opinions prior to implementation of the various regeneration projects will assist in the successful delivery of the economic vision.  A dedicated board is required to provide a mechanism where these views can be shared with the council.  It is envisaged that the proposals will make a significant contribution to the regeneration of the county.

THAT:

(a)         the terms of reference for the HIP attached at appendix 1 be approved;

(b)         the partnership be added to the council’s register of strategic partnerships; and

(c)         the economic development manager is authorised to take all operational decisions necessary to investigate future governance arrangements for the partnership within a budget of up to £15,000.

1              Utilising the existing Herefordshire Business Board to act as the delivery vehicle for the economic vision.

Advantages

As an established, private sector led board facilitated by the council there is an existing working relationship with the council and board members are already well aware of the regeneration priorities for the county. 

Disadvantages

The existing Herefordshire Business Board primarily comprises of business leaders who are sector champions rather than regeneration experts and they do not necessarily hold the breadth of experience required to provide the necessary support and challenge to the council on the delivery of the economic vision.  Whilst the board membership could be increased to give the required expertise, this would potentially dilute the scope and remit of the Herefordshire Business Board to the detriment of its core activity of supporting the existing business community within Herefordshire.

2              Immediately creating an external delivery company.

Advantages

The council has experience of this model having previously followed this approach in the delivery of the Edgar Street Grid project, additionally the Hereford Enterprise Zone is also an external company tasked with the delivery of the Enterprise Zone project. 

Disadvantages

Forming an external company to deliver the economic vision will require some dedicated council support and legal advice as to the right legal structure to achieve the council’s and other Board members aspirations.  It is recommended that this option is considered further when the informal HIP is more advanced and the council, and partners, have a greater understanding of the delivery issues and requirements.

3              Utilising the existing Hereford Enterprise Zone board to act as the delivery vehicle for the economic vision.

Advantages

As an established, private sector led board facilitated by the council there is an existing working relationship with the council and board members are already well aware of the regeneration priorities for the county

Disadvantages

The Enterprise Zone board structure is bespoke to the formation and requirements of the enterprise zone project and circumstances.  Utilising the enterprise zone board as the delivery vehicle for the economic vision would necessitate the board having a wider remit and set of responsibilities.  This has the potential to dilute the focus of the enterprise zone board away from its very clear set of existing responsibilities and would require a review of its existing legal structure.

4              Not establishing any partnership arrangements

Advantages

This would establish the council as having clear and sole responsibility and ownership of the process of delivering the economic vision.  There would be no internal resource required to serve an informal (or formal) partnership or to determine what legal structure to use in setting up partnership arrangements

Disadvantages

The recommended approach advocates utilising external membership to provide advice and guidance in delivering the economic vision, not establishing a partnership would result in the council not being able to draw on this expertise.