Agenda item

Rhian Palmer and Bill Kirk presented a report which sought the approval of £12.2 million for the Very Light Rail: Transforming Connectivity West Midlands (VLR: TCWM) programme via a Strategic Outline Business Case. They explained that VLR: TCWM was a programme of activity to help establish the West Midlands as a world-class business investment location by supporting urban public transport connectivity, developing significant supply chain opportunities and providing a focus for driving up skill levels, focussing on the development of VLR technology. The programme was being promoted by Coventry City Council (CCC) and Dudley Metropolitan Borough Council (DMBC) with support from Transport for West Midlands. They outlined the various aspects of the scheme as follows:

       I.        Dudley H2H TIC and Test Track (including (a) The Hub to Home Transport Innovation Centre and Test Track Project : Very Light Rail and Autonomous Technologies (HTHTIC) and (b) Metro Retaining Wall (Shared Wall);

      II.        Coventry VLR Phase 1 : Research and Development;

     III.        Coventry VLR Phase 2 : First Route.

Rhian Palmer and Bill Kirk responded to various questions from Members of the Board. Councillor Jim O’Boyle advised that Coventry City Council was particularly keen to promote this initiative which could have long term positive effects for the region both in terms of connectivity and employment and manufacturing opportunities. He commented on the potential for its use by Jaguar Land rover employees working at the Whitley site.

Councillor Robert Hulland commented that the proposal dovetailed well with the Government’s Industrial Strategy which had been published that morning. With regard to the Metro retaining Wall he enquired whether this was to be a feature wall or, alternatively, if it was likely to attract the attention of local graffiti artists. Bill Kirk explained that the wall would be masked by the Transport Innovation Centre. Councillor Hulland also queried the accuracy of the projected costs. Bill Kirk outlined the processes applied to define the anticipated costs. Linda Horne reminded the Board that in the event that the costs were exceeded such costs would be the responsibility of the Delivery Bodies and not this Board. Rhian Palmer advised that with regard to the Coventry City Council elements of the scheme, sufficient contingency sums had been included and that contributions towards the costs were also being sought from the private sector. 

Gary Taylor advised that whilst he was supportive of the proposal he questioned whether it could be delivered given the efforts made previously, without success, on the continent. Rhian Palmer advised on the recent advances in battery technology, that Warwick Manufacturing Group, partners in the proposal, operated at the cutting edge of new technology and that materials not previously available would be investigated for use. Phil Hewitt explained that the nature of public transport operations and funding regimes were fundamentally different in the United Kingdom compared to Europe inasmuch as the regulation and competition frameworks were markedly different. He commented that this was an excellent example of public sector and private sector partnership working.

Gary Taylor and the Chair also questioned the ownership rights with regard to Intellectual Property Rights and the possibility of the WMCA benefitting from future gain share arrangements. Sean Pearce reminded the Board that the WMCA was being asked for a capped contribution towards the project and that the Intellectual Property Rights would be vested with the Accountable Body. He suggested that the Funding for Growth Board could be asked to consider this particular issue. Rhian palmer advised that there was a tri-partite agreement between Coventry City Council, Warwick Manufacturing Group and the West Midlands Combined Authority with regard to Intellectual Property Rights.

Councillor Robert Hulland reminded the Board of the shortage of engineers and the possible consequences for the scheme. Bill Kirk reported on proposals by Dudley College to work with the Innovation Centre with a view to providing degree level apprenticeships and work experience.

Resolved:

1.    That the award of £12,204,821 Devolution Deal funding to the Very Light Rail: Transforming Connectivity West Midlands programme, jointly promoted by Coventry City Council and Dudley Metropolitan Borough Council be approved – the allocation falling within Coventry’s UK Central Plus Programme;

2.    That no commitment be given at this time with regard to ring fencing the remaining £42.8 million of the £55 million WMCA funding package in the event that this is not required to spend on Phase 2 for delivery of the first route.