Agenda item

(i)        Joint Report of the Corporate Director of Resources and the Corporate Director of Regeneration and Local Services.

(ii)       Presentation by Strategy and Project Development Manager, Regeneration and Local Services.

The Chair welcomed the Strategy and Project Development Manager, Ray Brewis who was in attendance to provide the Committee with an update presentation in relation to Strategic Employment Sites in the County (for copy see file of minutes).

The Strategy and Project Development Manager noted the Regeneration Statements in 2010 and the 2014 refresh which identified priority needs  for economic growth, with objectives to: nurture business creation, development and growth, aligned with key wealth creating sectors; create the right environment for innovation and growth; and promote County Durham as an attractive economic location for investment.  He explained as regards progress at key sites: Forrest Park at Newton Aycliffe; Jade Business Park at Murton; NETPark Phase 3 at Sedgefield; and Integra 61 at Bowburn.  The Strategy and Project Development Manager noted that it was recognised that it had taken a long time to get to this point in terms of strategic sites and therefore it would be appropriate to start the process in terms of looking for the next series of sites, in order to help secure external funding, in the next five years.

The Chair thanked the Strategy and Project Development Manager and noted that site visits to the strategic sites would be organised for April/May, dates to be confirmed with the Committee.

Councillor L Maddison commented that the presentation noted the funding arrangements for Forrest Park and Jade Business Park, however, not Integra 61. 

The Strategy and Project Development Manager noted that for the integra 61 development  there was an element of Local Growth Fund  from the North East Local Enterprise Partnership (NELEP) of £1.5 Million with additional funding for the offsite junction 61 and access through the A688 of over £5 million which has £1.8 million of Highways England Funding the balance coming from DCC. Overall investment from the private sector is currently in the region of £189 million, which will increase to over £200 million once the current development becomes operational.

Councillor M Wilkes noted that the Integra 61 development was very impressive, however, the light pollution from the site at the moment was considerable and he hoped the situation was temporary.  He added he was concerned as regards the  effect on the supply chain of the 250 job losses announced by Hitachi and asked what the Council could do to support those people, the businesses affected and what employment opportunities there were for those employees who have lost their jobs.  The Strategy and Project Development Manager noted help would be provided by Business Durham and the Government’s task force that assists in this area.  He noted a lot of the supply chain was from outside of the County and that Hitachi had noted there may be some opportunities for redeployment, albeit again outside of the County.   

Councillors R Crute, D Hall and E Scott entered the meeting at 9.50am

Councillor M Wilkes asked as regards the capacity of Business Durham to provide assistance.  The Strategy and Project Development Manager noted there was some capacity to assist and it would also depend upon what Hitachi would do in the first instance.  Councillor M Wilkes noted it would be useful if the Committee could have information as regards the capacity of Business Durham to assist in situations where there are job losses.

Councillor E Adam noted the points within the presentation as regards the former Leamside line, running alongside the Integra 61 site and asked if there was potential in terms of links to Newton Aycliffe.  The Strategy and Project Development Manager explained this was not the case, with Network Rail debating as regards the benefits of reopening the Leamside line or to develop new capacity.  He noted issues being considered with the old line included bridges that would likely need to be replaced and that the route no longer followed modern housing developments.  It was added that there was a possibility of Rail freight operating from a site alongside the Leamside line but additional work would be a required to create a spur and loop in order for trains to be able to get up to the necessary speed to join the main line.

Councillor E Adam asked as regards the investments made in the strategic sites, how much were loans, how much was regional funding and so on. 

The Strategy and Project Development Manager noted from the Council perspective, funds would come from the Capital Programme, not via loans from the NELEP.  He added Jade Business Park had been granted Enterprise Zone status and this then had an impact in terms of future business rates returning to the NELEP instead of the Council.  The Strategy and Project Development Manager reiterated that Council involvement mostly related to highways infrastructure works to enable sites to be developed, with the contribution by the Council being less than that from regional funds and a lot less than from the private sector.

Councillor E Adam asked as regards any potential impact on our plans at Forrest Park, given the announcement from Hitachi.  The Strategy and Project Development Manager noted it had not put plans back, however, it may affect market interest.  He noted that strategic sites were advertised internationally by United Kingdom Trade and Investment (UKTI) for investment and the Council’s commitment and capacity to promote these sites would not change.

Councillor J Maitland asked as regards the potential impact of Brexit.  The Strategy and Project Development Manager noted this was difficult to tell, however, he noted that the UKTI had added the Jade and Forrest Park sites into their international ‘pitch book’ and “buzz” around the sites had not died down with the imminent Brexit position.  He added he was not sure what impact Brexit would bring; however, the sites had been developed and the County was now well served with employment space.

Councillor S Dunn noted it had been a difficult year for Coxhoe in terms of the road works carried out at Junction 61.  He added that the development at Integra 61 was welcomed and the 2,200 jobs across the site would be a great opportunity for local people.  Councillor S Dunn explained that he would urge Officers to speak to businesses and maximise communication in order to get local people into all types of jobs, helping to reduce carbon footprint in terms of local people utilising public transport, walking and cycling routes.  He added the unit being built on site was very large and lit up very brightly.  Councillor S Dunn noted he would like assurance that the final external lights would avoid ongoing light pollution as the current situation was such the site was visible from all the surrounding villages.  He noted the issue of trees at the site had been mentioned at the Environment and Sustainable Communities Overview and Scrutiny Committee and trees would be welcomed to act as a screen with the A688 and A1.  Councillor S Dunn concluded by noting that the investment at the site was hugely welcomed and he thanks all those involved for their work.  The Strategy and Project Development Manager noted that the lighting referred to was temporary and necessary for safe site operation as agreed in the construction management plan.  He added that in relation to landscaping, this was within the planning application and that how to encourage use of public transport, walking and cycling was always an issue.  Councillor S Dunn asked if we could encourage employers to recruit within the local area. 

The Strategy and Project Development Manager commented that the employer had said that they would employ local however in some cases there could be conditions, though he did not know specifically in this case.

Councillor J Atkinson asked as regards timber frame buildings and demand.  The Strategy and Project Development Manager noted that sustainability was becoming more and more of a factor in construction and housebuilding in particular, however, he would need to speak to colleagues in the Low Carbon Team for further details.  In terms of durability, he believed the properties would have a 70-100-year lifespan, similar to that of modern brick-built properties.

The Strategy and Project Development Manager noted that there were commitments from Government in terms of sustainable housebuilding and large target numbers, and if these were to be met there would be a need to invest in the skills and infrastructure required to deliver that housing.  He added there had been strong enquires from those type of construction companies for space at our strategic sites.

Mrs R Morris asked as regards for further information on the future strategy and plans to be developed over the last five years as eluded to previously.  She noted that of the approximately 9,000 jobs mentioned within the report the majority were in the Durham City area and the south of the county, and asked as regards opportunities for similar sites in the north of the county, noting around 17,000 people commute out of the Consett area for employment.  The Strategy and Project Development Manager noted that the market would invest in sites that met their needs and that having infrastructure in place was vital in being able to develop a strategic site.  Mrs R Morris noted that infrastructure and a skills base, reskilling people if needed, was essential and asked if this was something that could be looked at for the north of the county.  The Strategy and Project Development Manager noted that some sites had been looked at in the past, however, there was a need to be able to answer the questions of what businesses wishing to invest needed.  Councillor J Clare noted that a lot of good work had been undertaken at the Drum Industrial Estate and asked if the Officer could send round information in this regard.

Councillor T Tucker asked as regards what the level of Council investment was in the sites.  The Strategy and Project Development Manager explained that some investment had been direct, some indirect, noting the previous comments as regards the NELEP and business rates.  He added that a useful percentage for a council investment was around 10 percent return on investment and that the Council had a very good commercial approach in this regard.

Councillor L Maddison asked as regards NETPark and the highways investments made regarding cycling, noting none made between Coxhoe and Sedgefield.  The Strategy and Project Development Manager explained that he could find out as regards NETPark, however, there had been large investment in term of pedestrian and cycle access at Horden Rail Station, Integra 61 and Jade Business Park.

Councillor M Wilkes noted that paragraphs 43 and 44 of the report referred to a “flexible pipeline approach” and asked how much more could the Council put into this in terms of seed funding and other activities.  The Strategy and Project Development Manager noted he felt as if the first phase was done in terms of strategic sites and that the next phase would be to look at future seed funding, infrastructure, and the appetite of the market.  Councillor M Wilkes asked as regards when the Council would need to make decisions on the next phase of funding.  The Strategy and Project Development Manager noted that he hoped the economic strategy, for up to 2050, would be looked at and developed this year and would include some firm investment proposals.

Resolved:  

(i)           That the report and presentation be noted.

(ii)          That the Economy and Enterprise Overview and Scrutiny Committee undertakes two visits to various strategic sites in the county, as included in its 2019/20 Work Programme.