Agenda item

Hedd Vaughan-Evans to present the report.

DECISION

1.    To note the Quarter 1 Performance Report and updated Portfolio Risk Register.

2.    To approve the submission of the Quarter 1 Performance Report to the Welsh Government and UK Government, as well as the local authority scrutiny committees.

The report was presented by Hedd Vaughan-Evans, Head of Operations.

RESOLVED

1.     To note the Quarter 1 Performance Report and updated Portfolio Risk Register.

2.     To approve the submission of the Quarter 1 Performance Report to the Welsh Government and UK Government, as well as the local authority scrutiny committees.

REASONS FOR THE DECISION

Quarterly reporting on progress against the North Wales Growth Deal is one of the requirements of the Final Growth Deal Agreement.

DISCUSSION

The quarter 1 performance report was presented, covering the period between April and June of this year. It was noted that several important milestones had been reached during the period, including the transfer of the Growth Deal work to the CJC. It was reported that a review of the portfolio had been undertaken, with key decisions made on individual projects, and that a new reserves list, as well as the approval and assurance arrangements, had been streamlined and successfully implemented.

Reference was made to the approval of two full business cases during the quarter, namely 4G+ and the Smart Local Energy project. In addition, it was noted that the loan agreement for the Cydnerth project had been completed, the business case for Theatr Clwyd had been approved, and that the main building at Plas Coch, as part of the EEOC project, had been completed with a soft launch, whilst the laboratory facilities at Plas Henfaes had been fully refurbished.

Members were reminded that four projects continued to report a red status currently, and it was noted that they would be part of the second round of the next portfolio review, with proposals and recommendations to be resubmitted to the Board in November. It was noted that many business cases were on this meeting's agenda and that approving them would put the Board in a more positive position in terms of performance.

In terms of benefits, it was noted that the number of jobs created by the end of quarter 1 stood at 38. It was accepted that this figure was not currently significant, but that this reflected the number of projects in the current delivery stage. A significant increase was expected in the coming years as more projects moved to the delivery stage. It was noted that work was underway with the other growth schemes to standardise the process of gathering data on construction posts and ring-fenced posts, in order to be able to provide a more comprehensive picture to the Board and the Government of the impact of the projects.

It was noted that the investment of the Growth Deal by the end of quarter 1 stood slightly over £22.6 million, with the total investment over £24 million. It was further noted that the report also included information about the wider benefits that were emerging, such as additional income secured, students completing qualifications and steps to strengthen supply chains. It was noted that this element would be further developed in future reports as more projects moved to the delivery stage and more data was received about their impact.

In terms of risk, it was noted that the situation was quite consistent with quarter 4 2024/25. It was noted that the residual risk on delay had fallen slightly, as a result of implementing the reserves list. However, it was noted that the residual risk in terms of planning had increased, as some fundamental risks remained in the system and needed to be closely monitored.

It was noted that it was pleasing to see the colours of the risk register improving, however, concern was noted regarding taking this fact out of its context, as the figure of 38 new jobs did not fully reflect the work achieved to date. It was noted that a number of projects were underway showing that the Council was moving towards its targets, and that a mature and robust approach was needed in moving forward with this work.

Concern was expressed regarding the figure of the new posts, namely 38. It was further noted that it was important to explain what these posts were and build this explanation into the dashboard. It was asked whether these were high-quality, full-time posts. It was noted that it was important to aim to create high-value posts to keep people within their communities. In response, it was noted that the 38 posts were full-time equivalent posts and derived from the Bangor University DSP project, Wrexham University EEOC project and full-time posts within the portfolio management office. It was emphasised that more detail would be available in the future regarding the posts created.

Concern was expressed regarding projects without planning permission. It was asked whether it was possible to get an update on the reserves list, especially the Trawsfynydd project. In response, it was noted that planning was a complex process that relied on the decisions of the local authority. It was noted that the reserves list was moving along well, with four of those projects on this meeting's agenda. It was noted, specifically about Trawsfynydd, that the project was proceeding positively, with positive updates received from the team regarding the budget and the governance framework. It was further noted that a workshop would be held at the end of the month for stakeholders involved in the Trawsfynydd project.

The importance of including stronger narratives regarding the posts created over the lifetime of these projects in the long-term was noted, especially in construction. It was further noted that many of these posts would not become operational until the projects had been completed and moved into the implementation phase, causing a delay in the posts' statistics.

The need to re-frame the narrative regarding the posts was emphasised, placing an emphasis on the indirect posts created within local communities and in the supply chains as a result of the Growth Deal. It was agreed that the officers would circulate more information about the posts, especially in terms of the quality of the posts created. It was noted that, unless sufficient information was available, it would be appropriate to revisit the data collection framework in the future to ensure that the relevant information was gathered.

There was a question regarding the timetable for the four projects on the reserves list and due to be presented to this committee in November - officers were asked to confirm that they were on the right track to do so, as a decision was required regarding whether they should be funded or not. In response, it was confirmed that these four projects were on the right track to be presented to the committee in November.

Everyone was thanked for the discussion and the scrutiny work on the subject. It was emphasised that such scrutiny and challenge was healthy and welcomed.