New NWDA chairman Robert Hough tells Bill Gleeson how the agency can make a big difference

HE MAY have only just settled his feet under his desk, but there are those who are keen to quickly take Robert Hough’s new job away from him.

A think-tank called Localis used last week’s Conservative Party conference in Manchester to call for the abolition of regional development agencies. Mr Hough has just taken up his new post as chairman of the Northwest Development Agency, the body responsible for co-ordinating and planning the region’s economy.

Indeed, Mr Hough, who follows in the formidable footsteps of his predecessor, Bryan Gray, attended various fringe events at the conference in a bid to spread the word about the good work the agency does for the region, but didn’t take any formal part in the conference.

The agency, which rolls into Liverpool tomorrow for its annual general meeting, is not alone in thinking it has done good work. Len Collinson, chair of Private Sector Partners, which represents 14,000 small firms in the North West, has backed the NWDA, saying it has credibility with businesses.

“The North West performs better working together rather than as individual areas.

“The team approach, brought together through the NWDA, ultimately serves the interests of the region most evenly. There is much talk of allowing councils or city regions to take over the job of the NWDA. This risks creating suspicion and rivalry in place of co-operation for mutual interests,” said Mr Collinson.

Mr Hough believes that, irrespective of whether a Conservative government, should one be elected next year, would abolish the NWDA, the case for a body responsible for overseeing regional economic development remains strong.

He said: “There has not been any engagement with the Conservative Party on this subject, as we are here to implement the policies of this government.”

He argues that, while the Conservatives may want to abolish some poorer performing RDAs in other parts of the country, those in the North have been doing a good job, and therefore should be spared any cull. “And they have not said what would follow the RDAs and that needs to be thought through first. Some sort of successor body with an economic franchise would be required.

“That would be a fundamental change to the future of the region, and we shouldn’t just do it without considering all of these factors,” said Mr Hough.

He adds that the agency itself is a repository of economic development know-how that is vital to the region’s future.

The NWDA, argues Mr Hough, enables the sub-regions to look beyond their boundaries. A more fragmented approach would not be able to consider issues that span boundaries.

EXAMPLES of pan-regional decision-making by the agency include transport issues such as the second river crossing between Runcorn and Widnes. It also includes the creation of Media City, in Salford.

The potential to be abolished by the next government is not the only big worry on the minds of the top brass at the Warrington-based agency.

The NWDA must also cope with the challenges arising from the public finance crisis caused by the recession and credit crunch.

With Chancellor Alistair Darling looking to save tens of billions of pounds from government spending plans, the NWDA hasn’t escaped unscathed by Whitehall’s need to balance the books. Its budget is due to be cut by 20% in the next couple of years at a cost of tens of millions of pounds a year.

Mr Hough said: “We have not yet turned away any project. Our emphasis now, though, will be on economic efficiency. We will have to try to achieve more for less.”

However, on the plus side, the agency has taken on the job of managing the region’s £500m European Union Objecitve 2 money.

Politics and funding aside, Mr Hough says the top priorities for him will be to develop the agency’s strategy and then deliver it.

“But this will be the strategy of the whole board. Its not just my strategy,” explains Mr Hough.

“The North-West needs a dynamic and sustainable economy that is internationally competitive. That’s the cornerstone of what this agency should be doing.

“It means we should be investing our time and effort in those sectors where we have a dominant position or where we have the potential to become dominant in a sector.

“These are sectors which are deeply embedded in our region and which have high barriers to entry, and therefore are not open to competition,” he said.

Examples of industries that the region is dominant in include the nuclear industry, aerospace and defence, chemicals and pharmaceuticals.

“These are areas where we have a global dominance,” he said. “They are real strengths for the region.

“We undoubtedly have the greatest concentration of aerospace manufacturing expertise of any region in Europe,” adds Mr Hough.

The nuclear industry, with its strong bases in Cheshire and Cumbria, is enjoying a bit of comeback, with the need to find a source of power that doesn’t damage the environment.

AN EXAMPLE of a sector that the economic planners hope the region will develop a dominant position in is digital media. Mr Hough points to Media City, currently under construction in Salford, as a potential source of future economic growth.

Merseyside, he says, has the benefit of tourism, which has grown rapidly in recent years, particularly following European Capital of Culture year.

After devising the strategy, the next job is to deliver it. “We have to deliver the goods. That’s my mantra,” said Mr Hough.

“Its essential we focus on delivery. We should not be in the business of writing reports only for them to gather dust on a shelf.

“Allied to that, we need to ensure that our processes are slick, that we deliver without massive bureaucracy and with maximum effectiveness. I will be watching that very closely,” said Mr Hough.

The new chairman believes that partnership is key to progress. Wealth, he argues, can best be created when the public sector works well with the private sector.

The fourth big focus for Mr Hough will be communication.

“We need to communicate our achievements. It’s essential to the agency.

“We also need to recognise the successes of the region.”

While Mr Hough is no longer an executive director of Peel Holdings, the property group that owns Liverpool John Lennon Airport and the Port of Liverpool, he remains on the company’s board as a non-executive director. The switch in roles gives him the scope to dedicate his time to the NWDA. “It’s going to take about 80% of my time,” he said.

He will need all the time he can get. He clearly has his work cut out to make a big impression ahead of the General Election. Mr Hough will make a start at tomorrow’s AGM at the BT Convention Centre.

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