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Govt shedding £15 billion on regional development agencies

Govt shedding £15 billion on regional development agenciesGovt shedding £15 billion on regional development agencies

Friday, 08, Aug 2008 05:00

The government is shedding public money on its regional development agency (RDA) scheme, new research has revealed.

An investigation conducted by the Taxpayers' Alliance shows the economic performance of the areas RDAs work in has failed to improve and in some cases even slowed down, despite spending over £15 billion on the scheme.

"RDAs have failed in their core mission to narrow the gap between the economic performance of England's regions," said Ben Farrugia, policy analyst at the TaxPayers' Alliance.

On employment, for instance, growth in jobs and the number of people in work slowed since RDAs were set up in 1999. Between 1995 and 2000 the number of jobs in England increased by 9.5 per cent, while between 2000 and 2005 it increased by three per cent.

But economics correspondent Daniel Barnes, editor of myfinances.co.uk said the findings had to be treated with caution.

"RDAs are massive and unaccountable spending machines, leaking money top, right and centre," he told politics.co.uk.

"The core problem is the EU divides up Europe into little regional boxes when shelling out cash, and while this fits French regions nicely, the UK has nothing comparable," he continued.

"RDAs do waste cash, but the Taxpayers' Alliances' broad-brush analysis does not show how cash is wasted.

"The figures do add up, but there are all sorts of other factors which could have caused this, not least of all the simple fact of a cyclical economy."

RDAs are non-departmental public bodies established to promote economic development. All nine RDAs report to the Department for Business, Enterprise and Regulatory Reform apart from the London Development Agency (LDA) which reports to the mayor.


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David Hill, Switzerland: Recent research from the TaxPayers' Alliance using detailed analysis of regional economic statistics shows that on almost every measure in almost every area, the regions did better in the seven years before Regional Development Agencies (RDAs) than in the first seven years of their existence. Indeed, the gap between the richest and poorest regions has widened rather than narrowed. Overall the RDAs have failed according to the TaxPayers' Alliance. This may be an uncomfortable conclusion for the quangocrats but it is an inescapable fact based on 'official data'. Whatever it is the RDAs have been doing since their establishment in 1999, two things are certain - it has cost us all £15 billion and it has not worked. Indeed, it did not take the TaxPayers? Alliance to tell us this, as we were of that opinion some 8-years ago when the RDAs were first introduced. The official information now has only confirmed our feelings and where the RDAs have now been shown to be a complete waste of time and money for the taxpayer and nation as a whole. But, they will do no better in the future as they have 19th century mentality instead of 21st century mentality behind them. It is not old thinking therefore but revolutionary thinking that is needed as government were told some nine years ago. For in 1998 over sixty of the world?s most eminent and renowned scientists including eight Nobel Laureates, told this present government that the only way in which Britain could create economic dynamism in the 21st century was to build the ORE-STEM complex. Ironically this development would have cost £15 billion, exactly what the RDAs have cost the country and thrown away to date. But in contrast by now we in this country would have been seeing the fruits of this vast endeavour. Unfortunately for Britain it has to be said that our senior politicians and civil servants made the wrong decision as usual. The reason, they are advised by ill-informed and uneducated people in the field who have small narrow minds with pet projects that go nowhere and who have not the perception of what 21st dynamism is all about and requires. In another 8/9 years they will have most probably spend a further £15 billion with no meaningful results again. Therefore it is about time that government took notice of those people who know what should be done; those who are working at the leading edge of knowledge, day in, day out and not the non-performing buffoons of Whitehall who know nothing of what is required. Indeed, whilst complacency, a lack of knowledge and inferior economic mechanisms exist, such as is the case of our RDAs, more innovative countries will definitely take the high ground to the demise of all who live in Britain today and future years. But the great problem of course is that the RDAs are our primary economic mechanism and the fallout due to their failure will be immense to both country and people alike. Dr David Hill World Innovation Foundation Charity (WIFC) Bern, Switzerland


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