Agenda item

Report of the Corporate Director of Regeneration and Economic Development - presented by Stewart Watkins, Managing Director – Business Durham, Regeneration and Economic Development.

The Chair introduced the Managing Director, Business Durham, Stewart Watkins who was in attendance to give Members a presentation in relation to Business Support and the role of Business Durham (for copy see file of minutes).

The Managing Director explained that in the past, the region’s economy had predominately been based upon coal mining, with a slide showing the number of mines in the period 1950-1994. 

Members noted that since the decline of the industry, there had been a need to redress the balance within the area, however the current position showed rises in the number of people in receipt of JobSeekers Allowance (JSA) and the Gross Value Added (GVA) figure for County Durham was only 69% of the national average.  Councillors were reminded that a complaint often levelled was that business support was overly complex and there were far too many providers, and a diagram showing the previous provision was presented to Members.  The Committee noted that since that time, there had been enormous changes with many of the organisations and providers no longer being in existence, such as One North East and Business Link and reviews into the provision of business support had recommended a single point of contact. 

Members noted that with the combination of County Durham Development Company (CDDC) and the DCC in-house Business Support team in March 2012, Business Durham was formed and the intention was to provide a single place for businesses to go in respect of support, with a clearly defined function and identity. 

Councillors noted that many of the CDDC Board Members with experience were retained and a number of private sector Board Members were added to complete the Business Durham Advisory Board.  Members noted the private sector Board Members included: Arnab Basu (Kromek); Peter Chapman (EDBS); David Coppock (UKT&I); John Hamilton (Lamplas); David Land (Tallent); Brian Manning (Esh Group); and James Ramsbottom (NECC).

The Managing Director explained that the intention was to keep the Business Durham priorities as simple a possible, with only 3 main priorities:

·        to retain as many existing companies as possible;

·        to grow these companies at every opportunity;

·        to attract additional businesses.

Members learned that there was a lot of competition in respect of the retention of business in the area, not only externally with the likes of Eastern Europe and China, but also “intra-company” competition too.  It was added that in respect of growing companies, there was a need to attract internationally; encourage local procurement; support skills/training; ensure the Council was “business friendly” and supported renewable energy/low carbon economy. 

In order to deliver against the priorities, a number of objectives were established:

·        encourage a more entrepreneurial culture;

·        encourage the growth an development of small and medium sized businesses (SMEs);

·        support larger companies;

·        attract capital and inward investment to the County;

·        encourage and support the development of innovative, technology based SMEs;

·        maximise the benefit of the County Council’s stock of business property.

The Committee were reminded of activities that had taken place such as the NASA Astronauts in 2010, Brainwave in 2012 and the ongoing Future Business Magnates scheme in order to promote business with young people.  Councillors noted the involvement of many SMEs including GT Group at Peterlee and Newton Aycliffe; Romag, specialising in glass/photovoltaics and EBac, recipients of a Regional Growth Fund (RGF) grant. 

The Managing Director added that larger companies were engaged with including TRW, NSK and Husqvarna to name a few, and reminded Members of the inward investment that would be attracted from the Hitachi train deal, 730 jobs within their factory, around 700 jobs in the supply chain.

In looking to the future, the Managing Director explained that it would be necessary to continue to innovate and move forward with technology with areas such as NETPark with the Discovery Centres; National Printable Electronics Centre; NETPark Research Institute and NETPark Incubator alongside Kromek, a business spin off from Durham University.  Members were informed that there was a Masterplan for NETPark and that the site in total was 250 acres, one of the largest scientific parks in the country and evidence of County Durham being “ahead of the pack”.

The Managing Director explained that within County Durham, there were a number of strategic sites across the region, and noted several business unit areas within the County, including Low Willington Industrial Estate; Consett Business Centre; Durham Dales Centre; Shildon Business Centre; and Tanfield Lea Business Centre.  Members noted that there was a need to ensure the branding of Business Durham was recognisable and to this end, the Business Durham website had been designed reiterating the new logo and offering information and links to relevant partners that Business Durham works with.

The Committee noted that the key issues were to:

·        Continue to deliver against the six objectives;

·        Improve engagement with businesses;

·        Encourage a business friendly Council;

·        Increasing business opportunities through areas including:

• International trade
• Exporting
• Corporate Procurement
• Supply Chain delivery and inter-trading

·        Addressing start-up and enterprise support post-2013.

The Chair thanked the Managing Director for his presentation and asked Members for their questions.

Councillor M Wilkes noted that as most employers were SMEs with less than 10 employers, and whilst there was a lot of positive information within the presentation as regards larger and medium sized companies, he felt that there was a need to ensure that these smaller companies were offered support.  Councillor M Wilkes added that upon trying to access business support from the DCC website, it had proven difficult and perhaps a clearer link to the Business Durham website was needed on the Council site.  The Managing Director noted that IT and Corporate Communications were currently working on this issue and that it was planned that access via the DCC website would be available before Christmas 2012.

Councillor J Cordon asked whether there was scope to help small businesses in respect of the high overheads faced by them on the high street, lack of car parking facilities and so on.  The Managing Director noted that the issue of car parking could be dealt with in the next agenda item looking at Masterplans, and that the issue of business rates was being looked at currently, within legislation.

Councillor B Arthur noted with some concern as regards the problems with Cumbrian Seafoods and the loss of jobs from such a relatively large company.  The Managing Director explained that as one of the top 100/150 companies they were contacted as regards support.  It was added that while Youngs had bought the company, they had made a business decision to retain production in their main facility at Grimsby.

Councillor M Wilkes noted a recent press release had explained that a café in Chester-le-Street had received financial support and asked whether providing such sums to individual businesses was sensible or whether a more strategic approach would be better. 

Councillor P Jopling noted concerns as regards Bishop Auckland, with the proliferation of “out of town” development and the high rent charged by landlords within the town centre.  The Managing Director noted that the next agenda item on Masterplans may provide information as regards these issues.

Resolved:

That the report and presentation be noted.