Agenda item

(i)         Joint Report of the Assistant Chief Executive and the Corporate           Director of Regeneration and Economic Development.

(ii)        Presentation by the Head of Strategic Programmes and Performance,            Regeneration and Economic Development.

The Chairman introduced the Head of Strategy, Programmes and Performance, Regeneration and Economic Development, Andy Palmer who was in attendance to speak to Members in relation to the Regeneration Statement (for copy see file of minutes).

The Head of Strategy, Programmes and Performance explained that the purpose of the presentation was to give Members of the Committee an overview of the policy direction in relation to regeneration and economic development, as set out within the Council’s Regeneration Statement.  Councillors noted that the ambition of the Regeneration Statement was “to shape a County Durham where people want to live, work, invest and visit and enable our residents and businesses to achieve and exceed their potential” and that there were 5 key objectives linked to this:

·        Thriving Durham City

·        Vibrant and Successful Towns

·        Vibrant and Sustainable Neighbourhoods and Rural Communities

·        Competitive and Successful People

·        A Top Location for Business.

The Committee were informed of several challenges including: impact of the economic downturn; high youth and long-term unemployment; lower land values, development interest; government budget cuts and removal of grants; low demand in the economy, flat market; Welfare Reform, impact on the most vulnerable; and higher demand for services.  Members noted that there were several opportunities for developing major assets within Durham City and the main towns and that in order to best capitalise on them, there was a need to have a joined up policy framework.  It was added that this was the case, having consistency through the County Durham Plan (CDP), Housing Strategy and the Council’s Business Services function.  The Head of Strategy, Programmes and Performance explained that the location of County Durham in the heart of the region, between 2 main ports, together with business growth in relation to manufacturing and exports was positive and that the new planning framework would help by lifting constraints on development and growth.  Members learned that in addition to the Council’s well funded Capital Programme there were new funding opportunities with the EU Programme, Regional Growth Fund (RGF) and Growing Places.  It was added the Housing Stock Transfer project as regards the Council’s housing stock was still ongoing.  The Committee were made aware that there was a market-led approach in capitalising on opportunities and a “whole-town approach” with Regeneration and Economic Development (RED) and Neighbourhood Services coordinating their efforts. 

The Head of Strategy, Programmes and Performance noted that some key initiatives were long term and that in respect of “Thriving Durham City” there were aspects such as a central business quarter, based around the Gala theatre and city centre improvements to areas such as North Road, the bus station and Hopper House.  Members learned of the plans for a Business Improvement District, with the Council coordinating on behalf of private sector businesses.  It was noted that those businesses involved would be able to vote on how to invest and spend money collected in this regard, collected alongside business rates. 

The Committee were reminded of several events and tourism opportunities including Lumiere, with the last event having attracted 3 times the visitors in comparison to the year previously and the Lindisfarne Gospels, with over 60,000 tickets having been sold.

Councillors were informed of activities in relation to “vibrant and successful towns”, with a few examples for each being:

·        Consett – public and private sector investment over £100 – Consett Academy; links to the Tyne and Wear conurbation; new leisure facilities; town centre improvement works; employment sites, new business park; and additional housing allocations.

·        Stanley – Masterplan and physical improvements to town centre; Stanley Academy.

·        Chester-le-Street – support for the Cricket Club in its expansion.

·        Seaham – St. John’s Square; Seaham North Dock.

·        Peterlee – a new rail station, discussions ongoing with rail operators, opening up employment opportunities to bother north and south.

·        Newton Aycliffe – improvement of the Heighington Railway Station; development and consultation on a Business Improvement District; the Hitachi development.

·        Spennymoor – Durhamgate development, enabled through infrastructure works; with around 2,000 jobs over the next 10-15 years.

·        Bishop Auckland – Auckland Castle; market square; improvements to the railway station.

·        Barnard Castle – Heritage Lottery Fund (HLF) Townscape Improvements; Witham Hall; pedestrian suspension footbridge, Digital Dale.

·        Crook – Major retail development at Queen Street; improved customer facilities at the Civic Centre/Customer Access Point.

The Head of Strategy, Programmes and Performance explained that in addition to the Housing Stock Transfer, there were other issues in relation to sustainable communities and rural communities such as private sector housing renewal; super fast broadband internet; access to employment; and protecting the most vulnerable transport users.  Councillors were reminded of the 2 apprenticeships programmes, working with the National Apprenticeship Service (NAS), and looking to help increase apprenticeships in areas not covered by NAS.  Members noted that there were over 300 apprenticeships to date, with Area Action Partnerships (AAPs) also being involved in relation to funding.  It was added that in-house at Durham County Council (DCC) within RED there were 20-21 apprenticeships and that there were several apprenticeships for those in the looked after sector, working closely with colleague in Children and Adults Services (CAS).  The Committee were reminded of the European Social Fund (ESF) Families Project, Derwentside Training being a Work Programme delivery agent; and the protection of homelessness advice from budget cuts.

Councillors noted that there were several issues to be addressed in order to make County Durham a top location for business including: supporting start-ups; providing quality business space; nurturing innovation; super fat broadband internet; and attracting inward investment.  The Head of Strategy, Programmes and Performance reminded Members of the Hitachi investment at Amazon Park, Newton Aycliffe with 500 direct manufacturing jobs and an anticipated 7,000 further jobs in the UK supply chain.  Members also learned that further engagement was ongoing as regards the labour market for those jobs, and with the University and technical college as regards training.

The Head of Strategy, Programmes and Performance explained that the Regeneration Statement was the document that provided the overall vision and ambition for the “Altogether Wealthier” area of the Sustainable Communities Strategy (SCS) and provided the framework for delivery and priorities for RED, the County Durham Economic Partnership (CDEP) and Overview and Scrutiny work programme.  Members noted that policy was focused on growth through enhancing Durham City; embedding the Hitachi investment and putting the right economic infrastructure in place.  The Head of Strategy, Programmes and Performance concluded by noting that it was important to have coordination of investment and that the Regeneration Statement was refreshed every 2 years, the last having been in 2012.

The Chairman thanked the Head of Strategy, Programmes and Performance and asked Members for their questions. 

Members had several questions in relation to: transport being a central theme within regeneration; the definition of “rural” in respect of the roll out of super fast broadband; an apparent divide in the investment across the County; and the CDP being too “Durham-centric”.  The Head of Strategy, Programmes and Performance explained that the Local Transport Plan 3 (LTP3) now has within it an employment weighting aligned with key employment sites, and transport issues were considered with a joined up approach, the RED directorate having within it all the relevant areas such as Planning, Transport, Housing, Employment and regular meetings of the relevant Officers took place.  Members were informed that the presentation was not an exhaustive list of all activities and schemes, that while the CDP was a spatial plan building on Durham City, this was different to the capital investment being made across the County.  It was explained that the greater allocations in Durham City were in order to help stimulate investment via the planning process.  Members noted that the aim was for 100% provision of super fast broadband, with the Authority working with British Telecom. Councillors noted that there was a two-tier situation, those areas where market forces were sufficient for provision to be put in place and areas where low demand from either lack of money or low population meant that additional work was required.  It was noted that the Council’s Head of ICT, Phil Jackman may be able to provide further information in this respect.       

Councillors noted the award of Europe’s Leading Destination 2013 to Yorkshire and cited this as an opportunity to link our tourism offer.  Members also noted the issue of the Housing Stock Transfer and their concerns of a potential exodus of tenants from housing associations to the private sector, the knock on effect this would have in planning for transport and employment infrastructure.  Councillors asked for additional information as regards the Hitachi development; vibrant towns, specifically Bishop Auckland; the amount of net export; and the sustainability of the DCC apprenticeship positions.   

The Head of Strategy, Programmes and Performance noted the Chief Executive of Visit County Durham (VCD), Melanie Sensicle was a regular attendee at the Committee and would be able to update Members as regards linking tourism offers to the wider region.  Members noted that contractors had broke ground at the Hitachi site a few weeks ago and that the scheme was on track.  Members noted that the proposed date for rolling stock to come off the production line at Newton Aycliffe was 2017. 

The Head of Strategy, Programmes and Performance explained that the Housing Stock Transfer project was complicated, with the current preferred option being a stock transfer and the impact of Welfare Reform would need to be considered.  Members were reminded that the Housing Stock Transfer Project Manager, Marie Roe was a regular attendee at Committee and would be able to update Members on progress.  Members noted that the Bishop Auckland Masterplan was recently refreshed and looked at potential investment in the Castle and Trust, and issues surrounding the town centre, with the Local Plan looking at additional housing allocation.

As regards the exports from County Durham, the Head of Strategy, Programmes and Performance explained that the industrial estate at Newton Aycliffe was the second largest in the region and the main manufacturing hub for County Durham.  Members noted the work with the “Top 200” companies in order to grow and expand those businesses, and the North East Local Enterprise Partnership (NELEP), County Durham Partnership (CDP) and Business Durham work together.  Councillors noted that figures as regards exports would be reported back to Members for their information.  The Head of Strategy, Programmes and Performance noted that the DCC apprenticeship scheme was a wage subsidy and in a lot of the cases, it was undertaken to take the risk out of training for companies.  Members noted that apprentices were required to complete Level 2 or Level 3 training.

The Principal Overview and Scrutiny Officer, Stephen Gwillym noted that there was some reassurance from the Committee’s work programme over the next 6-8 months in that it reflected the issues set out in the Regeneration Statement, with the next meeting of the Committee on 24 September 2013 having both the Housing Stock Transfer Project and an update on the Overview and Scrutiny Review on Empty Homes on the agenda.  Members were also reminded of the upcoming Overview and Scrutiny Workshop session looking at the County Durham Plan on 4 November 2013 and noted that Masterplans for County Durham would be a future agenda item for the Committee.  The Principal Overview and Scrutiny Officer added that the Chief Executive, VCD would be invited to come back to Committee to keep Members up to date on tourism issues, and that other bespoke sessions on issues could be arranged as required.

Resolved:    

That the report and presentation be noted.