To receive a presentation from the Leader of the Council to advise Members of the annual activity in the Economic Development programme area within Herefordshire.

The Committee received a presentation from Councillor R.J. Phillips, Leader of the Council, on the annual activity in the Economic Development programme area within Herefordshire.

The Leader began his presentation to the Committee by paying tribute to the late Councillor G.V. Hyde who had been the previous Cabinet Member responsible for the economic development programme area.

The Leader reported to the Committee that the Council had an important part to play in the context of the County’s economy as the County’s largest employer, landowner and regulator.  In order to maintain and aid the local economy it was necessary for the Council to work in partnership with other public and private sector organisations.  Working in partnership with other organisations was essential to solve the long-standing problems which existed in the County’s economy.

Work was currently underway in trying to influence the development of the Regional Spatial Strategy and Regional Economic Strategy.  These strategies are set to configure the manner in which funding is distributed in the Region and it was important that Herefordshire maintained its current levels of grant funding.

With regard to the Rural Agenda, it was highlighted that the reform of the Common Agriculture Policy had seen income for the County fall.  When this was combined with the problems of Avian Flu it was clear to see that the industry was facing significant challenges.

The Chairman thanked the Leader for his presentation and opened the meeting to questions from the Committee.  The following are the principal points raised in the ensuing discussion:

·         The idea was tabled that the poor take up of the Ross New Trader Supporter Grant could be due to the relatively low value of the Grant (£750).  The Social and Economic Regeneration Manager commented that the Grant would be marketed more heavily first and it take up still remained poor the value of the Grant would be revisited.

·         The Committee heard now Eign Gate, High Town and the Victoria Footbridge were being refurbished.  The Eign Gate refurbishment had been nominated for a national award.

·         It was asserted that the profitability of some stores had been compromised by the refurbishment works, however, the Committee acknowledged that other factors could be to blame as well.

·         It was not possible for additional/non-executive Members to be on the Board of the Edgar Street Grid Venture Company as public sector representation was limited to 20% of the board which allowed for two representatives from the Council.

·         A decision on the application for funding for the Rotherwas Access Road was still pending.

·         It was asserted that the Job Evaluation process implemented at the Council did not help the economic vitality of the County in terms of increasing wage levels as the process had seen some staff wages fall.  The Leader stated that the Council paid the going rate to its Officers and commented that all Local Authorities in the Country would have to complete the same process by April 2007.

·         It was hoped the development of the Herefordshire Economic Strategy and Hereford Learning Village would help to address Herefordshire’s low skills base.