January 2008
Minutes Of Scottish Enterprise Board: 25 January 2008
Present:
Sir John Ward CBE, Chairman
Jack Perry, Chief Executive
Pat Denzler
Fred Hallsworth
Douglas Lamb
Charlie Morrison
Donald MacRae
Colin McClatchie
Sir Timothy O’Shea
Ray Perman
Apologies:
Barbara Duffner OBE
LEC Chairs:
Vic Emery, SE Glasgow
Apologies:
Charles Hammond, SE Edinburgh and Lothian
In Attendance:
Hugh Hall, Chief Financial Officer
Paul Lewis, MD Industries
Jim McFarlane, MD Regional Operations
John Phillips, Senior Director, People and Organisational Development
Julian Taylor, Research and Policy
Lena Wilson, Chief Operating Officer
Brian Jamieson, SE Secretary
Imelda Molloy, Corporate Office
Apologies:
Roger McClure, Scottish Funding Council
1. Private session – (Board members only)
The management arrangements for SDI were discussed.
The status of recruitment for new Board Members was reported.
2. Minutes of board meeting held on 30 November 2007 – SE(M)207
The minutes of the previous meeting and the outstanding action points were approved.
It was noted that Creative Biopharma would come back to the February meeting to be considered alongside ITI Scotland.
3. Chairman’s report
The Chairman reported that International Advisory Board Meetings would be held in June and November and that the Cabinet Secretary would attend these.
4. Chief Executive’s report
The previous day a meeting had been held attended by the Cabinet Secretaries, Nicola Sturgeon and John Swinney to address gaps in Scotland’s Clinical Infrastructure.
The Board was briefed on ITI Life Sciences and Stirling Medical Innovations.
Following the Board paper on Aberdeen Science and Energy Park (SE (07)133), it was reported that the exit for SE would be a joint venture arrangement for future development.
In relation to the Board paper on Unlocking Investment in the Edinburgh exchange district (SE (07)149) it was reported that progress had been made on the outstanding issues and a further update would be made to the next Board meeting.
Progress towards the transfer of activities to Skills Development Scotland was reported. A crucial issue to be resolved was that of pension provision.
The appeal to the Inner House of the Court of Session had been successful in establishing that SE’s termination of their Dundee Office premises’ lease was valid. Thanks were recorded to the legal team for their work on the case.
The MORI MSP Survey results showed that favourability towards SE had risen substantially in the last year.
Scotland had won the European Region of the future 2008 award from the Financial Times FDI magazine.
The Chief Executive had visited Dublin and Zurich to meet investors.
Discussions continued with COSLA regarding the transfer of Business Gateway and infrastructure activities. A fuller report on the Transition Teams’ progress would come to the February Strategy day.
5. Investments for approval
Tourism destination development strategy – SE (08)01
Destination Loch Lomond strategic framework – SE (08)02
Eddie Brogan, Director Tourism industries and Jim McAloon and Jim Watson, SE Dunbartonshire joined the meeting for these two papers.
Eddie Brogan introduced the development of SE’s thinking on destination management for the future. This had focused on where the maximum input could be made and how SE engages with the industry and partners. This had resulted in targeting six areas, of which Loch Lomond was one. The Strategy had built on International best practice and on SE’s experience in co-ordinated programmes such as that in St Andrews.
The Board supported the more focused approach and looked forward to seeing all six targeted destination areas. The agreement on the way forward with the industry and partners was also welcomed. It was noted that the forward budget was aspirational and would be subject to the budget prioritisation discussions.
Jim McAloon introduced the Loch Lomond paper which examined the steps which would contribute to Scotland’s ambition to grow tourism revenue. The paper did not seek financial approvals at this stage.
Jim Watson explained that Loch Lomond was potentially the biggest tourism revenue generator outside the cities of Glasgow and Edinburgh. Accommodation and activities would require greater levels of investment to attract this revenue. A coherent Programme with six workstreams involving the public and private sectors would take this forward.
The Board approved the approach being taken and thanked the participants.
Shasun Pharma Solutions Ltd – R&D Plus Project –SE(08)03
Alistair McKinnon and Sarah McConnel, SE Dumfries and Galloway, joined the meeting for this item.
Alistair McKinnon described the context within the local economy, the background to the company’s presence and the international competition for this investment.
The paper was approved.
Strategic acquisition of Aberdeen city council’s interest in the Aberdeen science parks – SE (08)04
David Littlejohn, SE Grampian, joined the meeting for this item.
Jim McFarlane explained the rationale for this proposal. David Littlejohn outlined the background and the advantage in having the parks under a single ownership.
The paper was approved on the basis that it would be funded in the current year and that the exit would be by way of the proposed joint venture. The Board asked for an exit schedule to be set.
Disposal of 236 Broomielaw - SE (08)05
Stuart Patrick and Derek McCrindle, SE Glasgow, joined the meeting for this item.
Jim McFarlane introduced the paper as representing a significant achievement for the Clyde Waterfront programme.
Derek McCrindle outlined the rationale for the attraction of a high quality hotel development.
The paper was approved.
6. Items for discussion
Finance and performance: Quarter 3 review – SE (08)06
Iain Scott, Finance, joined the meeting and highlighted the key issues in the paper. Work was being done to address the one lagging performance measure. The programme to finalise the year’s accounts aimed for an earlier closure date. There was a risk that staff losses could affect this schedule.
Business planning / resource allocation 2008/11 – SE (08)07
Andy Downie and Ed Payne, Finance, joined the meeting for this item.
Hugh Hall noted that the planning had to cope with multiple variables and uncertainties. The Scottish Government’s budget had now been passed by the Parliament. The major uncertainties were now the amount of budget associated with transferring activities. There would, however, clearly be a reduction in real terms of the budget for continuing activities. This would mean a focus on prioritisation going forward.
Julian Taylor drew out the implications of the Scottish Government’s economic strategy for SE; these would inform the prioritisation process that Hugh Hall had referred to.
In looking at staff costs, it was relevant to separate operational activity from support costs.
The Board agreed the general principles and supported transfer of Operational staff to be customer facing in the field.
(Sir Tim O’Shea left the meeting)
Transition progress:
Industry advisory boards – SE (08)09
Regional advisory boards – SE (08)08
Stuart Patrick outlined the proposals for Regional Advisory Boards and Lorraine McMillan presented those for Industry Advisory Boards.
In view of SE’s desire to deliver Industry led strategies, it was agreed that the priority was to finalise the Industry Advisory Boards first. It was hoped that there might be scope then for some Industry members to join Regional Advisory Boards. In any event, Priority Industries should be represented on relevant Regional Advisory Boards.
Corporate enviromental management – SE (08)10
Kristy Ramsay and Charlie Ralley joined the meeting for this item which was introduced by John Phillips.
Kirsty Ramsay outlined the six monthly report. The next major issue to tackle would be car travel which remained high.
The Board commended the progress to date and noted that the policy issue of carbon neutrality would be kept under review.
(Vic Emery left the meeting)
7. Committee updates
Minutes of Performance Committee 20 December 2007 SEBPC(M)4
Minutes of Investment Committee 6 December 2007 SEBIC(M)13
Minutes of Urgent Approvals Committee 11 December 2007 SEBUP(M)(07)5
Minutes of Audit Committee 19 December 2007 SEAC(M)(07)4
Minutes of Remuneration Committee 30 November 2007 SEBRC(M)14
Fred Hallsworth, Chair of the Audit Committee, mentioned the intention to have greater formality in the induction and training of Committee members. The Audit committee would be closely monitoring performance in procurement of consultants and contractors.
8. Information papers
The Board noted the following information papers:
Americas Regional Globalscot Conference SE(08)19
Urgent Approvals Committee – Clyde Pumps Ltd Relocation Cambuslang Investment Park SE(08)20
SE In the News SE(08)21
Outstanding Action Points from SE Board SE(08)11
Global, UK and Scottish Economic Commentary SE(08)12
Monthly Update – Operations SE(08)13
Monthly Update – Industries SE(08)14
Monthly Update – International Operations SE(08)15
Approvals Within Delegated Authority SE(08)16
Complaints and Testimonials SE(08)17
Calendar of Forward Events SE(08)18
Brian Jamieson
SE Secretary
February 2008