FPB: Scrap ‘abject’ regional assemblies and save £23m

February 7 2005

A leading business pressure group is challenging the Government to scrap the eight unelected regional assemblies in England, after finding overwhelming hostility to them among its membership (see member quotes below).

The Forum of Private Business (FPB), which represents 25,000 small and medium-sized firms, says businesses have delivered a damning verdict on the assemblies and would rather the £23m it costs to run them each year was spent on improving public services.

The FPB’s National Chairman Len Collinson said the assemblies had abjectly failed to communicate with small businesses, despite the fact they have a remit to drive the economy of the regions.

“Our members are scathing about the performance of regional assemblies,’ he said. “Many businesses do not even know they exist. The assemblies have failed to inform businesses about who they are, where they are and what they do, even though they cost tens of millions of pounds to run and were set up way back in 1998. Employers are telling us loud and clear that this money would be better spent on improving transport and public services – not creating more pen pushers in plush offices. The FPB believes the assemblies have had enough chance to prove themselves. Their record is lamentable. They must go.“

Mr Collinson said he has personal experience of the assemblies, having led the walk out of the FSB, CBI and IoD from the North West Assembly three years ago after concerns it was failing to listen to the private sector.

“The assemblies waste time and money on endless conferences, committees, research initiatives, publications and consultations,’ he said “They operate in a bureaucratic bubble that has no relevance to the real world. Just how much will the North West region, for example, benefit from a youth website that offers ‘online polls’ providing ‘instant feedback on topical issues such as smoking in public places, hunting with dogs and votes at 16’? And just how is it necessary to spend £60,000 over the next two years ‘to project the image and importance of the North West Regional Assembly as constituted in the minds of the public, key regional partners and stakeholders’?”

A selection of FPB member quotes from each region:

Kathy Evans, Managing Director of Vendetta IT Business Services, Gateshead, North East said: “I can honestly say I do not even know where the North East Assembly is. You could ask everyone on this street and they’d probably say they did not even know it existed! In fact, they’d probably say they voted against it last year in the elected regional assembly referendum! My question is, what does it do? It has had no impact on my business at all. The money could be better spent elsewhere on public services.”

Anthony Capstick, Managing Director, Instant Search, Clitheroe, Lancashire, North West said: “I have no idea what the North West Assembly stands for, what it does or what it’s supposed to do. I have had no contact with it whatsoever. I’m completely in the dark and in that sense it has failed utterly to communicate with the business community about what its role is.”

Phillip Ogden, of Peckett Ogden & Co, York, North East said: “I’ve never heard of it. It’s a waste of time and money. There’s just no need for it – it’s not doing anything that other people can’t do, and that can be covered by existing agencies. The transport in York is terrible – we desperately need an urban transport system. The money would be better spent on transport.”

Richard Gayfor, Managing Director, Scanfit Ltd, Norwich, East of England: “I’ve never heard of the East of England Assembly. Does it have any clue about business? We don’t need quangos and pen pushers – we need solutions from people who have a knowledge and understanding of business. Over five years, how much money does the assembly cost? Why not abolish the assembly and plough the saved millions into dualling the A11? That would have an enormous impact on economic growth in Norfolk. At a stroke, it would slash the journey time to London by an hour. I talk to people in the Midlands and they say its such a drag driving to Norfolk because the roads are so atrocious. The Assembly should be tackling matters like this, the glaringly obvious. But it doesn’t seem to have the wherewithal to even tell businesses that it exists.”

Esperanza Bevan, Anchorstone Rest Home, Farnham, South East said: “The regional assembly is another layer of taxation and management. I totally disagree with the concept. I have had no correspondence from them – they only want to do things for themselves, not for me. I want them scrapped. The millions would be better spent on the NHS. We are already paying for local councils, county councils, these assemblies, parliament and MEPs – where does it all end? There are just too many chiefs and not enough Indians - we need more Indians. I have very vehement feelings about this – I’d go on national television to talk about it.”

Roy Stacey, Lynwood Guest House, Penzance, South West said: “I’ve never really heard of it – it’s obviously not doing its job as it can’t justify itself. The South West is too big for one assembly anyway – the money gets lost in Devon and then Cornwall misses out. The cash should be spent on proper transport links. Newquay airport needs to carry on as there is a risk the military may leave in three years. As a guesthouse, I rely on the airport as many people fly in from Europe to Newquay. This is what matters to me and my business. I would like to see the regional assembly scrapped. We are bombarded with forums. They start up with lots of expensive buildings and equipment and then spend the money on themselves.”

Scott Greenway, Greenways, Erdington, Birmingham, West Midlands said: “I’ve never heard of it, which doesn’t reflect well on it. It’s an utter waste of money, one of those things that sounds great, but never comes to anything. The money would be better spent on redevelopment programmes in Erdington. Erdington is becoming increasingly impoverished. Also, I have a CCTV camera pole outside my shop, but no street camera on top of it because the local council can’t afford it, yet millions are being lavished on this talking shop.”

Richard Linnett, Managing Director, Anchor Print Group Ltd, Syston, Leicester, East Midlands said: “I would not know the East Midlands Assembly existed. How can they be of any use if businesses have not heard of them? If it is costing millions, I would like to see what it has done and what it has achieved. Leicester is crying out for investment. It has some of the worst roads in the country and that hampers everyone in the county. But the roads aren’t improved because there is supposedly no money. Public transport here is also appalling. What is this assembly doing about that? Does it have any grasp of the key problems in this area? Instead of creating jobs for paper pushers, we should be investing money in solving these problems.”

Notes to editors

Background on regional assemblies

The unelected regional chambers or assemblies were created by John Prescott in 1998, at the same time as the regional development agencies.

They are not elected and not directly accountable to any body, apart from John Prescott’s Government Offices for the Regions. They are composed of councillors (nominated by their local authorities) and ‘community stakeholders’ – such as trade unions, ‘cultural networks’ and pressure groups. They were clearly intended to pave the way for elected regional assemblies.

The Deputy Prime Minister’s Office has said that the present assemblies “have wide-ranging powers to attract new investment and business to the region, support business, enterprise and the growth of jobs, regenerate areas and drive forward the economy”. The FPB believes that the assemblies have not focused or delivered on these tasks.

The FPB is politically neutral and its stance should not be seen as support for the Conservative Party, which also want to scrap regional assemblies

THE NORTH WEST

In the North West, most major business organisations, including the Federation of Small Businesses, the CBI and the Institute of Directors, left the Regional Assembly three years ago because of poor management and a failure to listen to the private sector. “The performance of this assembly has not impressed the businesses”, said Len Collinson, who led the business walkout.

Labour-led Lancashire County Council left the Assembly over concerns that it was spending public money to campaign for an elected assembly. And last week, it was announced that Cheshire County Council was on the verge of giving 12 months' notice to quit the Assembly. The Assembly’s budget for the next financial year is over £3m and it employs a staff of 70.

THE NORTH EAST

In the North East, a campaign is being waged to abolish the present assembly by those who fought against an elected assembly. The budget for the Assembly for 2003 to 2004 was £2.25m and it employs 32 people. There is now a proposal to split the Association of North East Councils from the Assembly, which critics see as a precursor to a reduction or withdrawal of local government funding.

YORKSHIRE AND HUMBER

The budget of the Yorkshire and Humber Regional Assembly for 2003 to 2004 was £2.57m and it employs 46 people. Councils are cutting their subscriptions by a half and there is to be a review of the work of the Assembly.

THE EAST OF ENGLAND

The budget for the East of England Regional Assembly for 2003 to 2004 was £3.6m and it employs 45 people.

EAST MIDLANDS

The budget for the East Midlands Regional Assembly 2003 to 2004 was £16m and it employs 24 people.

SOUTH EAST

The budget for the South East Regional Assembly 2003 to 2004 was more than £3m and it employs 39 people.

WEST MIDLANDS

The budget for the West Midlands Regional Assembly 2003 to 2004 was £16m and it employs about 20 people.

THE SOUTH WEST

The budget for the South West Regional Assembly 2003 to 2004 was more than £4m and it employs 72 staff.

ends

FPB BACKGROUND:

The Forum of Private Business (FPB) was formed in 1977 and is a pressure group fighting on behalf of private businesses. The FPB represents approximately 25,000 UK-based businesses employing in excess of 600,000 people, and is a powerful lobbying voice in both the UK and the European Union.



The FPB, as the only full UK member of UEAPME – the organisation that represents small and medium-sized enterprises (SMEs) in Europe – is the most prominent advocate of UK SMEs in Brussels and has a track record of positively affecting legislation prior to its introduction in the UK.



The FPB also provides a range of business services aimed at increasing member efficiency and profitability. Visit www.fpb.org



MEDIA CONTACTS:

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Email: ben.pinnington@fpb.org



Kieron Hayes, press officer

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Email: kieron.hayes@fpb.org



FPB press office:

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Fax: 0870 241 9570



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