House of Commons Communities and Local Government Committee

Market Failure?: Can the traditional market survive?

Ninth Report of Session 2008–09

Oral and written evidence

Ordered by the House of Commons to be printed 7 July 2009

HC 308-II Published on 23 July 2009 by authority of the House of Commons London: The Stationery Office Limited £0.00

Communities and Local Government Committee

The Communities and Local Government Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Department for Communities and Local Government and its associated bodies.

Current membership

Dr Phyllis Starkey MP (Labour, Milton Keynes South West) (Chair) Sir Paul Beresford MP (Conservative, Mole Valley) Mr Clive Betts MP (Labour, Sheffield Attercliffe) John Cummings MP (Labour, Easington) Andrew George MP (Liberal Democrat, St Ives) Mr Greg Hands MP (Conservative, Hammersmith and Fulham) Anne Main MP (Conservative, St Albans) Dr John Pugh MP (Liberal Democrat, Southport) Emily Thornberry MP (Labour, Islington South and Finsbury) Mr Neil Turner MP (Labour, Wigan) David Wright MP (Labour, Telford)

The following members were also members of the Committee during this inquiry:

Jim Dobbin MP (Labour Co-op, Heywood and Middleton) Mr Bill Olner MP (Labour, Nuneaton)

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The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk.

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The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at www.parliament.uk/clgcom.

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The current staff of the Committee are Huw Yardley (Clerk of the Committee), Andrew Griffiths (Second Clerk), Josephine Willows (Inquiry Manager), Emma Gordon (Committee Specialist), Ana Ferreira (Senior Committee Assistant), Nicola McCoy (Committee Assistant), Stewart McIlvenna (Committee Support Assistant), and Hannah Pearce (Select Committee Media Officer).

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All correspondence should be addressed to the Clerk of the Communities and Local Government Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 1353; the Committee’s email address is [email protected]

Market Failure?: Can the traditional market survive?

Witnesses

Monday 2 March 2009 Page

Ann Coffey MP, Chair, All-Party Parliamentary Markets Group Ev 1

Dr Sophie Watson, Professor of Sociology, Open University Ev 4

Mr Joe Harrison, Chief Executive, National Market Traders Federation, Mr Simon Quinn, Chief Executive, Association of Town Centre Management and Mr Gareth Jones, Managing Agent, National Farmer’s Retail Markets Association Ev 8

Tuesday 24 March 2009

Mr Graham Wilson, Chief Executive, National Association of British Market Authorities Ev 16

Mr Chris Hurdman, Oxfordshire Market Trader and Mr Chris New, New Markets Solution Ev 20

Mr Tim Hirst, Assistant Director, Commercial and Support Services, City of Bradford Metropolitan Council, Mr Malcolm Veigas, Assistant Director (Community Services) Bolton Metropolitan Council and Mr Nick Rhodes, Head of Leicester Markets and Enterprise, Leicester City Council Ev 24

Tuesday 31 March 2009

Mr Michael Felton, Michael Felton Associates and Mr Jonathan Owen, Ev 30 Quarterbridge

Cllr Melvyn Teare, portfolio holder for Culture and Heritage, St Albans District Council and Cllr Robin Bowen-Williams, Chair of Finance and Ev 34 General Purposes Committee, Bletchley & Fenny Stratford Town Council

Mr Stephen Douglass, Area Management and Enterprise Manager, London Borough of Southwark, Mr Chris Wroe, Environmental Health Manager for Licensing Policy and Strategy, City of Westminster Council and Ms Tot Brill, Ev 38 Executive Director for Transport, Environment and Leisure Services, Royal Borough of Kensington and Chelsea

Monday 20 April 2009

Mr George Nicholson, Secretary, National Retail Planning Forum and Mr Jean-Paul Auguste, Chairman, Geraud Markets Group Ev 43

Mr Ian Wright MP, Parliamentary Under Secretary of State, Communities and Local Government Ev 48

Communities and Local Government Committee

List of written evidence

1 Darlington Borough Council Ev 56 2 Patricia Grey—Fareham Town Centre Manager Ev 59 3 Mel Hilbrown Ev 59 4 Western International Market Tenants’ Association Ev 60 5 Michael Felton Associates Ev 62 6 St Albans District Council Ev 68 7 Derby City Council Ev 71 8 Chelmsford Borough Council Ev 74 9 Vale Royal Borough Council Ev 75 10 London Borough of Southwark Ev 77 11 Chris Hurdman Ev 81 12 Action for Market Towns (AMT) Ev 82, 83 13 Retail Markets Alliance Ev 97 14 Bradford Markets Servicel Ev 105 15 National Association of British Market Authorities (NABMA) Ev 112 16 Bolton Council Ev 117, 118 17 Bletchley & Fenny Stratford Town Council Ev 121 18 City of Westminster Council Ev 125 19 Chris New, New Markets Solutions Ev 126 20 Quarterbridge Project Management Ltd Ev 128 21 Royal Borough of Kensington and Chelsea Ev 131 22 Leicestershire Food Links Ltd Ev 133 23 Fresh Produce Consortium Ev 136 24 National Retail Planning Forum Ev 137 25 Geraud Markets (UK) Ltd Ev 142 26 Alliance Against Intellectual Property Theft Ev 145 27 National Farmers’ Retail & Markets Association (FARMA) Ev 149 28 Local Authority National VAT Consultative Committee Ev 159 29 Market Place (Europe) Ltd Ev 161 30 Local Government Association Ev 164 31 Communities and Local Government and the Department for Environment, Food and Rural Affairs Ev 165,168 32 Marion H Gettleson Ev 169 33 Urban Space Management Ltd Ev 170 34 London Borough of Bromley Ev 171 35 London Borough of Lambeth Ev 172 36 London Borough of Enfield Ev 172 37 London Borough of Brent Ev 172 38 London Borough of Bexley Ev 173 39 London Borough of Newham Ev 173 40 London Borough of Islington Ev 174 41 Hackney Council Ev 175 42 London Borough of Havering Ev 176

Market Failure?: Can the traditional market survive?

List of Reports from the Committee during the current Parliament

The reference number of the Government’s response to each Report is printed in brackets after the HC printing number.

Session 2008–09 First Report Work of the Committee in 2007–08 HC 120 Second Report Communities and Local Government’s Departmental Annual HC 238 (Cm 7614) Report 2008 Third Report Housing and the Credit Crunch HC 101 (Cm 7619) Fourth Report Appointment of the Chair of the Infrastructure Planning HC 354 Commission Fifth Report New Towns Follow-Up—Government Response to the Ninth HC 253 Report of the Committee, Session 2007–08 Sixth Report Balance of Power: Central and Local Government HC 33-I

Seventh Report Local authority investments HC 164-I Eighth Report Housing and the credit crunch: follow-up HC 568 Ninth Report Market Failure?: Can the traditional market survive? HC 308

Session 2007–08 First Report Coastal Towns: the Government’s Second Response HC 69 Second Report DCLG Annual Report 2007 HC 170 (Cm 7335) Third Report Local Government Finance—Supplementary Business Rate: the HC 210 (HC 1200) Government’s Response Fourth Report Work of the Committee in 2007 HC 211 Fifth Report Ordnance Survey HC 268 (HC 516) Sixth Report Refuse Collection: Waste Reduction Pilots HC 195 (HC 541) Seventh Report Existing Housing and Climate Change HC 432 (Cm 7428) Eighth Report The Supply of Rented Housing HC 457-I & II (Cm 7326) Ninth Report New Towns Follow-Up HC 889 Tenth Report Community Cohesion and Migration HC 369-I & II (Cm 7489) Eleventh Report Planning Matters—labour shortages and skills gaps HC 517-I & II (Cm 7495) Twelfth Report The Provision of Public Toilets HC 636 (Cm 7530)

Session 2006–07 First Report The Work of the Committee in 2005–06 HC 198 Second Report Coastal Towns HC 351 (Cm 7126) Third Report DCLG Annual Report 2006 HC 106 (Cm 7125) Fourth Report Is there a Future for Regional Government? HC 352-I (Cm 7119) Fifth Report Refuse Collection HC 536-I (HC 1095)

Communities and Local Government Committee

Sixth Report Equality HC 468 (Cm 7246) Seventh Report Local Government Finance—Supplementary Business Rate HC 719 Eighth Report Local Government Finance—Council Tax Benefit HC 718 (HC 1037)

Session 2005–06 First Report ODPM Annual Report and Accounts HC 559 (HC 1072) Second Report Re-licensing HC 606 (Cm 6788) Third Report Affordability and the Supply of Housing HC 703-I (Cm 6912) Fourth Report The Fire and Rescue Service HC 872-I (Cm 6919) Fifth Report Planning Gain Supplement HC 1024-I (Cm 7005) First Special Government Response to the Committee’s Fourth Report of HC 407 Report Session 2004–05, on the ODPM Annual Reports and Accounts 2004 Second Special Government Response to the Committee’s Eleventh Report HC 605 Report of Session 2004–05, on the Role and Effectiveness of The Local Government Ombudsmen for England Third Special Government Response to the Committee’s Seventh Report of HC 988 Report Session 2004–05, on the Role and Effectiveness of the Standards Board for England

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Communities and Local Government Committee: Evidence Ev 1 Oral evidence

Taken before the Communities and Local Government Committee on Monday 2 March 2009

Members present Dr Phyllis Starkey, in the Chair

Sir Paul Beresford Andrew George Mr Clive Betts Anne Main John Cummings Dr John Pugh

Witness: Ann CoVey MP, Chair, All-Party Parliamentary Markets Group, gave evidence.

Q1 Chair: Good morning. We are at the very start of big rise in the last 10 years. A lot of the Members of our oral evidence sessions of our inquiry on markets. Parliament who replied to us represent rural It is trying to get a general feel of it really, obviously, constituencies. from your position as the Chair of the All-Party Parliamentary Markets Group. Can I start oV by Q3 Chair: That is interesting. Was it mostly them asking why you think that national politicians who mentioned farmers’ markets? should be interested in local markets anyway? Ann CoVey: No. If you look at the farmers’ markets, Ann CoVey: Thank you very much for inviting me to what the other MPs were mentioning was the give evidence. The All-Party Markets Group is very importance of fresh produce in the traditional excited about this inquiry and we hope there is going markets. It was not so much the farmers’ markets to be a very good outcome for us. I think it is very versus traditional markets. It was the interest in important for national politicians to be interested in selling fresh produce, locally grown, and that was in markets because local markets need national policies the traditional markets as well as the farmers’ to support them. Without the interest of national markets. politicians, it is very diYcult for local markets to get the attention of government and the decision- Q4 Chair: Just briefly, did you get any evidence makers in government. We recently sent a survey about the way the recession may be aVecting form out to all 646 Members of the House of markets? Commons, and I was quite amazed at the response Ann CoVey: Again, it is quite anecdotal. I would we got; 200 Members of Parliament replied, which, imagine that if you have a market in a town centre as you know, is quite a big response to a survey. It and that town centre is suVering from less shoppers was quite clear that they were very keen on giving because less people are shopping, it will have an support to the markets. When we analysed the impact on that market. We think that the markets replies, they had expressed support for about 534 are in a good place to deal with the recession markets across the UK, including the traditional because, again, studies that have been done indicate markets, private markets, farmers’ markets, that produce sold in markets is sold a lot more specialist markets. There was a big range of markets cheaply than in supermarkets. One study mentions that they were supporting and they were very 32 per cent cheaper. That enables families who want supportive of the role they thought markets played to spend less on food to shop in their local markets in their communities in oVering vibrancy to the and still get the same quality of food but for less. So town centres. I think the markets are in a very good position to take on the challenge of the recession.

Q2 Chair: We are going to explore that in more detail Q5 Anne Main: Could I just ask if there is any and, indeed, the contribution to national policy symbiosis between what is on oVer, the provision of goals in a second. Before we get on to that, did you the market, and the shops nearby to wherever the get any indication from your feedback from MPs market is placed? You mentioned that traditional that certain sorts of markets are doing well and other markets are declining but farmers’ markets are not types of markets are doing less well? and I just wondered if there is any wider evaluation Ann CoVey: It is quite clear from a variety of as to why that might be. evidence that it is a very mixed picture. A study in Ann CoVey: I think you would have to look into the 2005 concluded that general markets, the core of context of the problems that markets are actually most market operators’ business, are in decline but facing. What markets do and their role for a there has been significant growth in farmers’ and thousand years has been providing food and other specialist markets. A lot of the replies to the commodities to people in towns and villages. Today, surveys actually mentioned the growth of specialist of course, what is happening is that they are and farmers’ markets. That is clearly the case. I experiencing a lot of challenges. Consumers have understand, for example, as far as farmers’ markets more choice, consumers are more mobile, consumers are concerned, there are now about 800, which is a have higher expectations; they are quite attracted to Processed: 17-07-2009 22:52:29 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG1

Ev 2 Communities and Local Government Committee: Evidence

2 March 2009 Ann Coffey MP modern centres and supermarkets. There is a big Q8 Anne Main: Could I ask you a series of specific trend to online shopping. Regeneration of the towns issues and ask you whether or not markets and cities has often meant that the commercial contribute to the social developments. I will read centre of the town has moved away from where the each one as a headline. How would you feel that market is. So when you are talking about a markets contribute in terms of social inclusion? symbiosis, one of the great challenges is to centre the Ann CoVey: Again, market traders often come from market once again where people go to shop and also a great diversity of backgrounds. In my market in to take account of the change in shopping habits. Stockport we have longstanding traders and we have For example, if we want more young people to shop traders from a range of the ethnic communities. in markets, we have to take account of the fact that Often people who shop in towns come from a perhaps they like to shop where there are cafes, bars, diversity of communities. It brings people together where they can sit and eat food and enjoy in the oldest interchange in the world, which is themselves. buying and selling goods. Often older people come to markets. Often older people are very isolated at home but they will return again and again to buy Q6 Anne Main: So did comments come through via from a particular stall because they know the stall MPs or anyone else presented to your group on and they know the trader. It helps people feel less parking issues associated with city centres, traYc isolated. It helps them feel that they have somewhere flows, for example, rents for market stalls? Those are to go that feels to them as representing the the sort of things I was hoping you might give us a community of the town that they live in. bit more feel as to why you think markets may or may not do well in a recession. Ann CoVey: I think it depends, as I said initially, on Q9 Anne Main: Are you saying there is something specific about the bustle and the social interchange where the markets are. There is an advantage if you of a market that is diVerent to a normal shop? are in a town centre and there is a slight Ann CoVey: Yes, I think there is. It may be disadvantage. The advantage of a market being something that is attached to the past, because it has centred in a town centre is that people can see what been there and you are very conscious that you have they can buy and make a comparison; they can move experienced a thousand years of history. Stockport in and out of the shops and the market itself. Again, market was the last market where somebody I think it would be very anecdotal just to try and say managed to sell their wife. It is certainly a link with such and such a thing is happening to markets the past. It is just knowing that this market has been because of the recession, because markets are so there a very long time. Of course, that would never hugely diverse in their variety and location. I would happen these days! rather suspect it was a lot to do with a range of factors as to how individual markets fared but, again, the positive thing that there is in their favour Q10 Anne Main: Leaving aside wife selling, you did is that they are cheaper, and the evidence mention traders from diVerent ethnic backgrounds corroborates that. So if you want fresh produce at a and so on. Does a market maybe, particularly in a lower spend, the market is the place to do it. high shop rental area, oVer a very welcome opportunity for a group who could not aVord a high rental every day of the week to be able to oVer their Q7 Sir Paul Beresford: I have to declare an interest. I goods, their diversity of service? Would you say that am a member of the NFU and the success of farmers’ is the benefit of a market, that you only pay for two markets counts with my farmers. Do you have any pitches a week or whatever it is? evidence of disquiet from the standard shops which Ann CoVey: Yes. I am very conscious you are asking fear the competition, particularly as the situation at me a series of specific questions. We recently did a the moment economically for them is a bit tight? markets policy framework document which sought Ann CoVey: I do not know. For myself, as the MP to address what markets could do through a range of for Stockport, there have been some issues with the policies. It might help if I go through some of them standard shops, who do feel that the market is a because I think they will answer some of your threat. I think that is actually part of the challenge questions. for markets, getting town centre shops and town centre regeneration to understand that they are not Q11 Anne Main: If I give you the headlines: in competition with each other. They are actually economics, environmental, health and regeneration; something that can add to the success of each. For if you can work your way through, we would be example, it is not detrimental to one electrical shop grateful. Economic. to have another electrical shop open business. It Ann CoVey: As you said, economic: 46,000 market attracts people there if they are looking for electrical traders provide something like 96,000 jobs across the equipment because they know they can go into two UK. So they are an important contribution to the or three places to compare and see what they can economy of the country. They can also provide, as buy. I think that is part of the challenge, convincing you said, business start-up opportunities. Some of shops that it helps because you bring in more people. the very big names like Marks & Spencer and The more people you bring into a centre, the more Morrisons actually started in markets. They can give likely they are to spend money in your shop as well somebody who has a very good idea to sell as in your market. something an initial place to sell it. Processed: 17-07-2009 22:52:29 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG1

Communities and Local Government Committee: Evidence Ev 3

2 March 2009 Ann Coffey MP

Q12 Anne Main: Do you think that could happen space, that it is a community place, it is a social now? space, it represents what markets represented for Ann CoVey: Yes, I think, more than anything, it hundreds of years. It is very important. Once it is could happen now, because people are getting much gone, that has gone as well. more interested in how they do diVerent things in Andrew George: Regarding the economic their lives. For example, I think it would be possible development issues, do you think that particularly for a woman who perhaps had responsibilities for the smaller high-street traders feel that there is unfair young children but perhaps made jewellery or craft competition with regard to the markets, particularly items to sell that on a market two or three mornings given that they do not face the same bills as far as a week and fit that in with her family responsibilities. rent and rates—I am sure you must have heard these It would be possible for somebody to work part-time arguments before—the perception that the markets in a market and pursue further training perhaps at a themselves do not perhaps have as much— training college. In its flexibility, it actually fits in Chair: We had this question just before you came in. with people’s changing views of how they work, how Andrew George: On the regulatory burden? Right. In they pursue education through their life and things that case, my apologies. like that. They also provide, of course, locally produced fresh seasonal food, which fits into the whole thing about healthy eating. Food does not Q17 Mr Betts: We talked about how markets can tend to be as packaged as in the supermarkets and contribute to these important national policy goals. does not tend to be taken from such long distances. Do you think there are obstacles in the way of them doing an even better job in contributing and, if so, what those obstacles are and how we might try and Q13 Anne Main: So you are saying it is a sort of get rid of them? greener footprint to a market stall than, say, to a shop? Ann CoVey: I think there are obstacles. If I go Ann CoVey: I suppose it depends on where the through some of the things that I think could be produce in the shop comes from and obviously some done to help, the first thing is a lack of investment in shops do encourage local produce. local markets by local authorities. There probably are very good reasons for that. Local authorities have had higher priorities of investment, and often Q14 Anne Main: I was thinking of the packaging, they have approached market management in a lighting, substantial shop fronts, heating. regulatory way. They have not seen it as investment Ann CoVey: I think so because, obviously, there does for the future. I think that has been one of the not tend to be that sort of thing. That is true. I think obstacles to it. I think there could be a great deal it is very important. People forget that it can be very more innovation in terms of looking at how you important for the promotion of culture and tourism. manage markets, maybe looking at much more When a market stall is not there, the marketplace is private-public partnerships which could bring in there and is maintained. You can have theatres, money. There has been evidence that local shows, entertainment. Again, it is giving the idea of authorities are going down that line and bringing this public space, which is a flexible public space, that kind of investment. I think there is an issue, as I which sometimes is a market and sometimes is a touched on before, of getting much more innovatory place of entertainment. We were looking in our management, that it is not simply the old markets market framework document at how we could take department managing it. It should be part of what advantage and how we could fit the developing role we are trying to do with our town centre. In fact, the of markets into what we see as a very good future for government Planning Policy Guidance 6, which I am markets with the necessary support from local and sure you are all very familiar with, which was issued national governments. in 2006 by the Department, made this clear, that they thought that local authorities should invest more, Q15 Anne Main: So what are you saying? That had an obligation to look at how they make markets entertainment space, perhaps alternative cultural more attractive and invest in them. I think that space, that they are oVering a community cohesion investment and the way that they are managed and or enrichment or cultural opportunity that a range how they are seen can be a barrier to it. The other big of shops just could not do? barrier that markets have, again, if we go back to Ann CoVey: You can move stalls. You can put stalls central government, is getting access to central up and move them around. government decision-making. If we go to our market documents, at least seven government departments were involved: if you are looking at innovation, if Q16 Anne Main: You can change the feel of it? you are looking at entrepreneurship, you are looking Ann CoVey: You can change the feel, and they can at BERR, you are looking at Defra. In fact, we have move and change with the time, as indeed markets had about five ministers from diVerent departments have over a thousand years. The stalls of a thousand come to speak to us. We think one of the ways that years ago have gone and they have been replaced. we could support markets locally is to have a When the stalls are not there, it is still a public space Markets Minister who would have responsibility for which can be used in another way.You are right; that ensuring that support was given to markets across gives the wider community that sense that it is their government departments and obviously could be a Processed: 17-07-2009 22:52:29 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG1

Ev 4 Communities and Local Government Committee: Evidence

2 March 2009 Ann Coffey MP focus for government departments to send policy issuing the PPG6, where it gives guidance to local initiatives to, to check that they included support for authorities about what it thinks is the importance of markets. Otherwise, I think the problem is that you markets, is something that central government can are trying to join up these things, you are trying to do. Of course, it cannot implement that for every move the market into the future without being clear local authority, for every market operator, in the UK what your access point in government is, because but it is a very clear message that they are seen as everybody has a bit of responsibility for bits of important, and that kind of partnership between things. We feel that having a Markets Minister local and central government. would help overcome some of those barriers. Q21 John Cummings: Can I ask what relationship Q18 Mr Betts: You are talking about local you have with the Local Government Association? authorities taking a slightly diVerent approach in Ann CoVey: A very good one. They have a market terms of looking at their markets as an investment. champion, which happens to be Stockport. They Do we know if local authorities have used their helped produce the market policy framework. They prudential borrowing powers at all with regard to are part and parcel of trying to help and support markets, in terms of looking at long-term markets. investment? Ann CoVey: I do not know, Clive. That is a very good Q22 Anne Main: On that particular point, do you see point. I would think it goes back to the priorities markets as becoming increasingly fragile? thing. I would be interested. I do not think we Ann CoVey: This is why I am so interested in know actually. markets. I think markets have the opportunity to transform themselves into something that is part and Q19 John Cummings: Perhaps I could ask one parcel of 21st century life. I think they have that question: is there a case for a stronger national policy opportunity and that flexibility. Why I am so on markets? interested in the Markets Group and so pleased that Ann CoVey: I think there is a case for government you are doing this inquiry is that it comes at the right departments recognising the very central role that time to give an extra push to that actually happening local markets and all their diversity could have in and moving this forward. delivering a wider social agenda. Q23 John Cummings: A very brief question: do you Q20 John Cummings: How would that square with have any relations with car boot sales? How does the Department’s aim of greater devolution to local your Association react? authorities? Ann CoVey: I do not have any relationship with Ann CoVey: I think it is a partnership, as often these them. If you ask the next witnesses, they will things are. There are some things that only local probably be able to answer that. We have never government can do but there are some things that invited them to the All-Party Group. central government could do. For example, in Chair: Thanks very much, Ann.

Witness: Dr Sophie Watson, Professor of Sociology, Open University, gave evidence.

Q24 Chair: Dr Watson, you have obviously done a Dr Watson: It is a very varied picture, as Ann CoVey great deal of research about the role of markets. Can alluded to. I do not think it is quite as I just ask you if you could very briefly summarise the straightforward as the picture that is coming across headlines on what your research has identified as a where farmers’ markets, specialist markets, are seen successful market in terms of its community role? to be on the increase and the old, traditional markets Dr Watson: The focus of the research was actually are in decline. It is not really like that. Across the more looking at markets as public space and social country there are many markets that are still very space and community space, rather than looking at viable that have been there for a long time, the kind the economic role of markets. However, one of the of markets particularly in country towns, for things about markets is that you cannot separate any example, which still pretty much serve the of these questions out. In the end, a market is not community. If you take a classic country town where going to work successfully socially or as a it has a market, say, on one or two days a week you community space if it does not have a strong base in will find people mostly go to the market, more or less the economy, if it does not have good products to everyone. The picture becomes much more varied sell. However, the main focus of the research was to when you start looking at large metropolitan areas. think about and look at which were the groups in the community which were benefiting out of a market Q26 Chair: Is the variable factor whether there is a being in a town. I imagine you are going to ask me big supermarket in the heart of whatever community some questions around that. I will perhaps say some it is, or not? more then. Dr Watson: It is one factor. However, one of the things I found was that even the question of a Q25 Chair: Did you find diVerent groups depending supermarket is a variable factor, because if a on the type of market? supermarket is located in a part of town which can Processed: 17-07-2009 22:52:29 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG1

Communities and Local Government Committee: Evidence Ev 5

2 March 2009 Dr Sophie Watson draw people away from the market, particularly because local authorities often do not have certain groups of the population, the working somebody who is in charge of the market at a senior population, who can easily shop in a supermarket by level. They have tended to be run by,for example, the parking after work and then going to do their person who runs the parking. shopping, that kind of cohort of people will not be going much to markets. If, however, the supermarket and the market are quite closely Q30 Anne Main: So more rent collecting than intertwined spatially, for example, somewhere like actually management? Milton Keynes, where you have a shopping centre Dr Watson: It is very much seen as a cash cow by and the market right next door to each other, quite many local authorities. The ones that see it like that often people will move between the market and the are the ones where the markets are in decline, supermarket and the shops around. So the physical typically. proximity of a market to other retail outlets can enhance the market. It slightly relates to the point Q31 Dr Pugh: Can I follow up on both those very that was made before. If you have a conglomeration good points? First of all, on the spatial point, some of shops and markets all in one place, you might find markets obviously are covered; you have to go into people chop and change between the two. Where a building. St John’s market in Liverpool is quite a supermarkets have been very detrimental would be, good example of that and Southport is like that. giving an example from my research, somewhere like Other markets you can drift through while walking Ludlow, where you have a central town, an old- through the streets. Is there any sort of diVerential fashioned market in the centre, and then you have degree of success nowadays for open markets as the supermarket on the edge. What you find then is opposed to closed markets? The second question I that it pulls away particularly the working want to ask again follows through what Anne Main population. So it is a complex relationship. has just said. In terms of local authorities still running their own markets, are a large number of Q27 Anne Main: Could I just ask you about the size them now oZoading these markets as not part of and shape of markets? We keep hearing about this their core business? If so, is this a growing trend? communal space. St Albans is my city.We have more Dr Watson: On the first question, I think it would be of a ribbon market, along through the street. Can I true to say that the seasonality of markets is very ask if you have done any research into whether the much related to the issue of covered markets. number of stalls and the shape of the market makes Typically, those that have no cover, which would any diVerence? probably be the vast majority of markets, really Dr Watson: In terms of its success? struggle through the winter months. Some authorities have come to quite clever arrangements Q28 Anne Main: Yes, in terms of success. to sort that out, for example, in Rotherham, where Dr Watson: It depends, again, on what the success is. they have these sail-type umbrella covered markets, I would say that that shape of market, typically, the in fact, where you provide some kind of protection long street, is less likely to be a place where people for the markets. will throng for an extended period of time but even that depends on how it is laid out. When you go to Q32 Dr Pugh: So the more sustainable ones are the Ridley Road, you will see that actually it is a very ones in permanent buildings with a cover—is that vibrant social space as well as an economically right? successful market and that is a long street but it has Dr Watson: Yes, or some of them have an inside and lots of diVerent bits and pieces around it where an outside. Up north that is quite a common form of people can sit and chat and linger and so on. If it is market, with a covered market and an outside simply a street with pavements on either side, and market. The ones that have tried to deal with this that is it, you will find people tend to just go in, do aspect of the weather, which quite a few of them have their shopping and leave. If it is in a well laid out done, have put in a kind of canvas sail-type cover. round or square shape, I think they work better, or They seem to be very good. The ones that do not they seem to work better. have that, some of them manage fine because they are so successful for other reasons. For example, Q29 Anne Main: Are you saying, given that there is again, taking Ludlow, it is a successful market a value in keeping a particular size or shape or because a lot of tourists go to Ludlow because it is a maintaining spaces, that within local decision- very nice little town, so it manages but, if you look making on planning or alterations of traYc flow or at it in the winter months, the numbers are very any of that, it could make an enormous diVerence to much more down than in the summer months. Most how well that market space operates? market traders make considerably more income in Dr Watson: Yes, it makes a huge diVerence. I think the good weather in the way that we have markets. the physical layout and the design of the market That is a huge issue. Your second point was about space is something that local authorities could do a the local authority’s role. No, there is not a trend lot more to enhance. Typically, as has been pointed towards local authorities oZoading markets, or not out before, local authorities have not tended to have a very substantial trend. Some markets are run by markets in their view at all. If you look at the picture private corporations but I think the trend in local across the country,local authority markets are pretty authorities has been more to ignore markets. I think much oV the agenda. One of the reasons for that is that has been a more typical trend. Processed: 17-07-2009 22:52:29 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG1

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2 March 2009 Dr Sophie Watson

Q33 Dr Pugh: So there is no trend towards more Q36 Andrew George: You mentioned some proactive management? potentially criminal activity on the part of market Dr Watson: I would like to answer that question traders themselves? What: they were selling on the because, again, in terms of markets that are side? You did not elaborate on that. successful, it is not just farmers’ markets and Dr Watson: There is always this. It seems that specialist markets that are successful. There are a electronic goods are the things that always come up. great many markets that are successful because the council or somebody within the council has decided Q37 Andrew George: To what extent has your to embrace the local market and have turned the research delved into that? Is that more the case with market around in five years. market traders than it would be with other traders? Is there a greater preponderance of that type of activity happening, with illegal goods trading on Q34 Chair: Can you give us some examples? the side? Dr Watson: Yes, Manchester, for example. The Dr Watson: No, I do not think any more than you Committee will be calling the manager from that would find in other low-cost retail outlets. I think market as a witness later in the inquiry. It seems to they are pretty much of the same kind of nature as me that if somebody comes in who has a strategic certain kinds of shops. vision, who pulls together the right constituent parts that make a market, because the problem with Q38 Anne Main: People do not always sell things on markets is precisely—again, it came up earlier—that markets, of course. Quite often you will get charities there are so many diVerent interests at stake. There working on markets and you will even get political is the economic side, the transport side, the design groups or pressure groups working in markets. Have side, the social side, and these parts of the council do you looked at that aspect of it, in terms of informing not talk together very much. Neither do they at the public about campaigns and things going on? national government level, I would not have Dr Watson: Some markets are really successful at thought. So it falls between many stools. The that. Again, talking about Rotherham, it is quite an markets that have managed to turn themselves interesting market because it has a two-layer building. On the top layer of the old market building around have been where somebody has come in and are all the local community organisations. It has Age pulled together the diVerent constituent parts with a Concern and all those kinds of things. That seems to strategic vision. That would be true for Bradford, be extremely successful. Quite a few of those big that would be true for Manchester, and it is certainly metropolitan towns have that, and I think that is an true for Leicester. There are a considerable number important role in terms of community cohesion as of markets around the country that have reversed well. this trend of decline and in the last 10 years have managed to move forward very successfully. Q39 Chair: Can we just clarify? When you are talking about that example in Rotherham and Age Concern, is that an Age Concern stall that is Q35 Anne Main: Briefly, on crime in markets, selling things? anecdotally, there is the thought in St Albans and Dr Watson: No, that is a little shop. other markets that markets attract visitors, they also attract people who prey on visitors. Do you agree Q40 Chair: But it is selling things? with that and, if you do, do you think markets Dr Watson: No, giving out advice and giving out should be given additional help to ensure that it is a leaflets. Other markets do what you are suggesting. safe trading place for them and for visitors to the Quite often the local authority will give over some market? stalls to local groups. I think that is one of their Dr Watson: I found very little evidence of it. I think important roles in terms of making a community, it rather depends on the market. Camden Lock that diVerent kinds of things can happen relatively market is a very high crime spot, mainly because it cheaply in one place. Normally people tend to rush attracts a lot of tourists, so they tend to be carrying past such things in the main High Street, whereas handbags with lots of money in. In the local markets when it is in the market people are more likely to stop on the whole I found very little evidence of crime. In and have a look and perhaps talk to somebody about fact, it was hard to get anybody to talk about it. what is going on. There is a bit of crime on the side of the traders in terms of selling certain kinds of goods but if you Q41 John Cummings: Dr Watson, your research mean things like pick-pocketing and so on, no, I did concludes that the market provision in any one not come across much of that—no more than you locality needs to fit with and be responsive to the would find in a supermarket or any other street—in surrounding community needs, socioeconomic and fact, probably in some ways less so because markets demographic profile and local conditions. What are quite well surveyed actually. Market traders keep lessons can be drawn for public policy from this a good eye out for what is going on. This is research and who would learn the lessons? something I would like to make some emphasis on Dr Watson: It is a question of joined-up thinking. If as well, that the role of market traders in markets is you have a market in an area which is low-income or a very crucial aspect of whether a market is perhaps there is a high preponderance of people on successful or not. benefits or a high preponderance of older people, Processed: 17-07-2009 22:52:29 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG1

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2 March 2009 Dr Sophie Watson you can look at those demographics around example. They brought in a very proactive market England in most towns. There is quite a lot of trader in a market in Camden for a while, Queen’s diVerence, say, between somewhere like Lowestoft Crescent market. He took a lot of advice about how and somewhere like Brighton, two seaside towns but to change the market. It was a market in decline. He with very diVerent sociodemographics. It would went out very strategically. He realised he had a seem to me that if you were strategically thinking middle-class, gentrified neighbourhood juxtaposed, about the kind of market to place in each of those so he brought in an Italian delicatessen type stall. He places, you would be going for quite a diVerent kind realised also that he had a strong Asian community of market. Craft stalls and that sort of thing are not so he brought in some people who cooked Asian going to go down very well; there is not much point food on the site. He realised that people wanted fish in putting them in an area that is a very low-income, because there was not a fishmonger. He thought perhaps elderly population. When I say a about all those things and proactively went out and demographic, it is a question about thinking about found people to run those stalls, and those stalls what kind of market works in what kind of place. came. Interestingly, when he stopped being there That is the variation you have. Farmers’ markets are doing that kind of work, the market returned to a very successful, that is true, and especially the more market in a state of decline. Watching that over a upmarket farmers’ markets are much more five-year period, you could see precisely my point successful in middle-class areas than they are in about how somebody with vision, thinking through poorer areas, because those products, organic those kinds of larger issues, could make the market products, usually have to be more expensive and so work. you have to think about the kind of market and the kind of people and place. That is my point and that Q46 Anne Main: Could I just ask one question, and is where vision comes in. it is not meant to be facetious, but do you think the Government ought to have a market stall in today’s Q42 John Cummings: Could you reasonably expect economic climate, where people who have worries that to come from central government or would this about benefit entitlement, tax, housing, jobs? Do be notes of guidance from the Department to those you think there would be some value in government responsible for the licensing arrangements? getting more in touch with the people and perhaps Dr Watson: I think it would be about talking about participating in markets? the kind of way in which you would encourage Dr Watson: I think that is a terrific idea. No, I think certain kinds of traders into certain kinds of it is a terrific idea because markets operate as a space locations. In other words, it would be worth where people actually have time, usually, and it thinking about, for example, in a very multi-racial could be that that would be a way in which certain area, encouraging people who could start to sell kinds of communication could take place. This gets products that cannot be found elsewhere. There are back to the question of national agenda, obesity,and a lot of markets that are successful because they all those kinds of issues. bring in, say, food products; if there is a predominately Asian population, those kinds of food products. Q47 Mr Betts: Markets, I think, are recognised by the Communities and Local Government Department as being important in the social Q43 John Cummings: Who would do this? Whose exclusion agenda, in terms of oVering a variety of responsibility would it be? diVerent shopping opportunities in town and district Dr Watson: I think the responsibility lies at the local centres, and city centres indeed. Do you think government level. I think it is very diYcult for however that CLG is still missing a bit of a trick in national government. You cannot prescribe. You that it has not really given markets the prominence can set out guidelines, as Ann CoVey has said. they could play in terms of regeneration? I understand markets have not been considered as a Q44 John Cummings: Do you think market traders key site for intervention within CLG policy. Do you would look kindly on being lectured to by local think there is more that can be done there? Do you government? think CLG has only gone halfway towards Dr Watson: I do not think it is the market traders recognising the importance of markets? that are going to be lectured to, because most market Dr Watson: Absolutely more can be done. I would traders elect to be in a particular market themselves. say that very little has been done so far. It seems to me that a lot of community agendas hinge on a Q45 John Cummings: Do they not enter into market. The question of public space, for example. partnerships with the local authority as to who has It is a strange thing in a way because we design public stalls and who does not have stalls? spaces like parks and so on, or think about public Dr Watson: They vary on that. Many market traders spaces like community centres, but the market just have an association and a chair, and usually it is the exists already as a public space where communities chair of the market traders who negotiates some of interact. So, yes, in terms of those kinds of issues. In the local issues with the local authority.That is a very terms of people keeping an eye on each other—and varied picture. Some of those market associations I do not mean in the surveillance way—market are much stronger than others. I do not think it is a traders typically really look after their customers. It question about being lectured to. I think it is simply is an interesting role that they take on quite seriously the argument that a good—I will give you an themselves. They keep an eye out, if you like, for Processed: 17-07-2009 22:52:29 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG1

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2 March 2009 Dr Sophie Watson their customers and often provide advice or support. oYce in the market in Crystal Peaks in my Lots of market traders, for example, will take a box constituency, which seems an interesting way of oranges back to some old lady’s house who forward, because in terms of the profile of people cannot come and get her oranges. It is surprising who use the market, it is often people on lower how much they do that. I think this is something that incomes and often the elderly, they benefit from is going to be diYcult to put into policy but if you having a post oYce on hand. It is also bringing talk about the way in which market traders take people into the market to trade as well. I just responsibility for the community, I think in many wondered whether that has been looked at as a areas they do. So yes, I think it is a missed policy possibility. opportunity in all sorts of ways. Dr Watson: That is a very innovative policy, I think, and a terrifically positive idea. Interestingly, I know the story the other way round, which is that a Q48 Mr Betts: One other possibility—and Anne number of markets had post oYces and the post Main has raised I think quite an interesting idea oYce went and the market was badly aVected. I about government presence—is post oYce presence. think that would be very creative thinking to do that. There is an example in my own constituency where we had a post oYce closure because of lack of Q49 Mr Betts: Richard Jackson, the sub-postmaster, adequate building, as it was then. With the local has been important in achieving that but, of course, councillors and the Post OYce we worked with the it is a post oYce which opens on Sundays as well, city council, and identified the opportunity, because which is quite a novel idea. a local businessmen came along as a sub postmaster, Dr Watson: It is a very creative idea, a terrific idea. and we now have a market stall converted into a post Chair: Thank you very much indeed.

Witnesses: Mr Joe Harrison, Chief Executive, National Market Traders Federation; Mr Simon Quin, Chief Executive, Association of Town Centre Management; and Mr Gareth Jones, Managing Agent, National Farmers’ Retail and Markets Association, gave evidence.

Q50 Chair: We have been having a conversation market traders to the public. A more recent one, about the Post OYce, which I will share with which is to be launched in Dartford on 12 March, is everyone so it is on the record. It is apparently in a the Pension Credit, where it is more than obvious covered market. I was just asking how you could do that the message that the Government wants to get it on a market stall without anybody making oV with to an age group of the community, that direct all the money. I was having a bit of diYculty with mailing and flyers through the post do not work and that. So it is in a covered market, which obviously where there is a great deal more trust in their local makes a diVerence. Moving back to the next bit of market trader, where they can come along and the the evidence, I think you three gentlemen have been message can be put across. sitting here listening to the other witnesses. If you can not repeat stuV that we have already had but add Q51 Anne Main: How does it work? to it and amplify it, that would be very helpful, and Mr Harrison: Basically, we have encouraged a do not all three feel you need to speak on every topic certain amount of markets to take part in the unless you have something additional to say, if I can campaign, and the fact that the market stalls will be put it that way. Can I start with a straight question made available to the local departments to get the on whether markets are thriving or in decline and message across and the fact that we badge up whether it depends on what sort of market it is or between the NMTF and the government department where it is? the fact that market traders and the fact that there Mr Harrison: Certainly. I would like to answer that are so many unclaimed credits, so therefore we can question. There are so many diVerent demographics get the message across. It was very successful in the of markets and such variety of diVerent types of Get On campaign and it is sure to be the same with markets that it is too diYcult and too general a Pension Credits. question to ask whether they are in decline or not. As has already been mentioned, and I would not like to Q52 Chair: That is a very useful example. When you repeat it, there are diVerent aspects of why markets said it was going to be launched in Dartford, it is are successful, basically, because of the need within happening in lots of other places as well, is it? the community of that market, and there are prime Mr Harrison: It is supposed to but obviously the examples throughout the country where markets are project is going to be trialled in certain areas. still successful and still thriving. I would like to also SheYeld is the next area it will be trialled in. It just answer a question that was asked before on whether highlights the role markets play in the community the Government should have a market stall. My and the benefits given by getting messages across to organisation has been asked twice now by the community. government departments to use markets and market traders to get across messages. One was in the Q53 Chair: To return to the original question, and I education and skills, the adult numeracy and literacy understand how it is diYcult to generalise, I will skills, where the messages were put across via the move it on slightly. There is the issue of how they are Processed: 17-07-2009 22:52:29 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG1

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2 March 2009 Mr Joe Harrison, Mr Simon Quin and Mr Gareth Jones going to be aVected by the recession and also, if aVordable prices but it is not doing what I think our markets are in decline, should government worry first witness was talking about, which was selling anyway or is it just a response to market forces, so people local produce and therefore reducing air to speak? miles. Is that a correct supposition? Mr Quin: I guess an overview on this, very quickly, Mr Harrison: To be fair, I think that is a would be that in a sense markets went out of fashion misconception. Quite frankly, if you were to visit the for a period of time. This was not necessarily fruit and vegetable department in the supermarket happening in the market towns, where there was still and the choice that is available to the public, the always a loyalty and an attraction to them but if you variations of diVerent potatoes, tomatoes, whatever, looked across the board—and there were is far less in general supermarkets than what is exceptions—the concept was that the brave new available in the local markets. Therefore there is a far world of supermarkets and the brave new world of bigger variety on oVer generally in local markets. It more immediate shopping took over from markets. is a misconception that there will be late dates, Markets that have been the backbone of our town whatever. I am not saying that there are not certain and city centres and indeed the very reason that products available for those that wish to buy them at many centres exist for hundreds, if not a thousand cheaper rates in most local markets but there is some years in some cases, in almost one generation were better quality oVered by the stalls in all our markets. lost or neglected. I think what we have seen, just as The situation is the same right across the continent. we all threw out our antiques in the 1960s but are La Boqueria in Barcelona is probably rated as one of now collecting them again, markets are beginning to the best markets in Europe. If you visit La Boqueria, come back into fashion in certain ways in certain the first stalls that you are greeted with are the better cases. People have rediscovered the distinctive products or the more high-quality products and the nature of what markets oVer, the uniqueness of what further you go into the market, the cheaper the they have. I think the recession is actually going to products are and the later date the product becomes, be beneficial for markets in many ways. We were but every shopper has a price and as long as the talking about this earlier. As we saw in previous variety is available, that is what is more important. downturns, markets are seen as places where people What is not available in the supermarkets is the can buy goods at more aVordable prices, so when variety of choice. they are concerned about how much money they are spending I think we will see a return to markets for many shoppers and I think we will see many Q55 Anne Main: Can I just ask you about the businesses starting up on markets as people who comment you made that markets are sometimes seen have perhaps been in employment seek the as cash cows. I was wondering what you thought opportunity to start a business fairly aVordably.I am about the levels of rentals for market spaces, not as despairing about the future of markets whether or not you think in today’s economic perhaps as I might have been 10 years ago. I think climate—in St Albans, for example, I have been there is optimism around now but I think there are quoted £100 per stall, which sounds quite a lot. still a lot of lessons to be learned, as we will discover Mr Quin: Shall I start on this cash cow business and during the course of your inquiry. I am sure those who are more involved in market Mr Jones: I am really talking about farmers’ trading may have a view on the price that is paid for markets. The evidence from the States is that they, rental. I think it is the case, I think there is an analogy like all retail businesses, go up and down with the here with the way that local authorities looked at car economy. In the United States, where they are about parks for a long time, that they were assets, they took 30 years ahead of us, they have seen this over time. the income out, and did not reinvest in them. If you What we have coming back to us at the moment is looked across the country in many town centres, car that footfall in farmers’ markets is being maintained parks were built in the 1960s and very little happened but people are being rather more cautious about to them after that. They deteriorated and became what they spend their money on. For example, at a places that people did not want to use compared to meat stall they might be spending more on minced those at out-of-town shopping centres or those in beef and less on fillet steak. There is more coinage privately developed shopping centres. I think being taken and less notes. So they are an instrument markets were seen in the same way, that they were an of the economy. asset the local authority had, they took the money out and did very little on the whole to reinvest in them. There were exceptions, and a number of local Q54 Chair: Can I just raise a query that came to me authorities, as we have already heard, have woken in earlier evidence when people were talking about up to the fact that actually you have to reinvest in one of the benefits being that people had access to them in order to keep them special and make them fresh food, particularly fruit and vegetables. This is distinctive. You cannot just keep taking money out not really related to farmers’ markets but ordinary of them. On the stall rental, there are others here general markets. It is my impression that actually, better qualified than I am to comment. the greengrocers’ stalls bring bulk fruit and veg that Mr Harrison: The fact of the matter is that the going they had bought at Covent Garden and which are rate for rents is quite reasonable as far as markets are probably near expiry date and therefore are slightly concerned. The discontent for the traders lies in the cheaper because the supermarkets or indeed lack of reinvestment where their rentals have been greengrocer shops probably would not buy them. paid and there is no reinvestment into the scenario. Therefore, that could be bringing fresh fruit at Also, it is disproportionate, in as much as some of Processed: 17-07-2009 22:52:29 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG1

Ev 10 Communities and Local Government Committee: Evidence

2 March 2009 Mr Joe Harrison, Mr Simon Quin and Mr Gareth Jones the rentals are for secondary positions within the and, therefore, not be markets in another name and town centre. As was previously mentioned, the fall under the same regulatory situation as markets actual commercial part of the town centre has moved do. away from the historic part of the town centre, where generally the markets are placed, therefore it is disproportionate in the rents being paid in what Q58 John Cummings: Are you all of the same would be a secondary position within the town. opinion? Mr Jones: If I may,on farmers’ markets, in truth, the Mr Quin: Yes, I think so. producer groups or the market organiser has to Mr Jones: Yes. On society, one of the factors create a fine balance between how much they charge farmers’ markets have been very valuable in doing is and how much it is worth to attend the market as a bringing together the farmers and small-scale trader. At the low end, we have seen £10 per stall per producers into a marketplace where they can share day. That really does not give very much common values. Being a farmer can be quite a lonely reinvestment back into marketing and creating a job and being able to come into the town and sell in more successful market. The highest rentals we see at a legitimate way has been a tremendous opportunity farmers’ markets are of the order of £70, rising to £90 for many. The social cohesion of the rural part of in maybe the peak season. More typically they are on many towns and market towns coming into cities has about £25–£30 and I would say that is the bulk of the also been enabled through farmers’ markets and is rentals we are seeing. It goes back to how good a innovative territory. performance that market will then deliver for the Mr Quin: I would add another angle on this, and it trader. was a question that was being asked earlier, whether markets were in competition with retailers. My view on this would be that they are not; they are part of Q56 Chair: I think you are all members of the Retail the diversified retail oVer that a town or city centre Markets Alliance and one of their recommendations has to have because it provides alternatives. Now, seems to suggest that central Government should be you may say that certain types of goods are collecting information on markets, how big they are, competing with others, but that is the nature of how they are doing, and collating it. Why do you retail, that happens across the board. What markets think that Government should be interested in oVer is something distinctive, perhaps not there collecting that information and why can the Retail every day, perhaps moving around and giving Markets Alliance not do it? variety. It is an important contribution that markets Mr Quin: I guess the reason that we think make to put people on the first step of the retail Government should be involved in this is the wider market if they wish, to oVer, as we see in some role of markets. We have already heard a number of instances now, additional outlets for retailers that issues on that this afternoon in terms of community are already in the town centre who perhaps may take cohesion, the opportunities it oVers for new business a market stall, particularly around Christmas or start-up, the sense of place it creates, serving the perhaps as a first step towards expansion, and also to wider community and encouraging community challenge existing retailers by bringing in something inclusion as well. What we feel at the moment is that innovative, something new, perhaps trialling it for a markets have been disregarded by local authorities while which may make an existing retailer have a and others, indeed not part of policy,because no-one look and say, “I think that is something we should be has really understood the role that markets have, the interested in seeing”. I do not see this competition contribution that they make in a number of diVerent element at all really. I am sure some retailers will ways to the success of communities and the way that they serve them. Whilst we would love to do it complain about it, but if you stop and look at it this ourselves, it really is a case of funding because there is about oVering up a wider oVer that a town or city is a lot of information out that there needs to be centre uniquely has. brought together. We felt that in the first instance this really was something where some research Q59 Anne Main: Before we move on to specialist supported by Government, which would then come markets, although I am sure specialist markets will down in the form of recommendations to local come into it, do you believe under current Planning authorities and others in terms of how markets Policy Guidance 6 that there is enough recognition should be valued and cared for in the future, would of the role of markets? be a useful starting point. Mr Quin: My view is no. The reason I say that is I think the point has been made already that markets Q57 John Cummings: Is there anything you would in local authorities particularly are often want to add to what the other witnesses have said pigeonholed somewhere in the system but very rarely about the contribution of markets to society and the picked up by others who are making decisions. By economy? Do you have a position on car boot sales? ensuring that the role of markets is emphasised in Mr Harrison: My organisation does have a position PPS6 it will make planning oYcers, both on policy on car boot sales. We feel that there is not a necessity and then on development control, take account of for car boot sales, but providing they are licensed markets. In too many instances across the country and governed in the same format and regulation markets have been shunted to some other part of form as that of markets. Initially they were town in order to facilitate regeneration and they introduced to raise funds for charities in the main, have been seen as something that can be treated in a and such like, and we would like to see that upheld very poor way by the planning system. We do need to Processed: 17-07-2009 22:52:29 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG1

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2 March 2009 Mr Joe Harrison, Mr Simon Quin and Mr Gareth Jones see emphasised in planning policy statements—and, Mr Jones: Before we talked about location, the indeed, in other statements by Government—the layout of the market, and that was a very good important role of markets. question. First of all, it is general retail principles, very important indeed. Secondly, support from the Q60 Chair: Would you be able to give us some community and the local authority, very important specific examples, not necessarily now, drop us a indeed. Thirdly, a driving force from driving note after, of markets which you think were shunted individuals who are going to make it happen, and we oV for regeneration or whatever? heard that before. Mr Quin: I certainly can. Mr Harrison: The point that needs to be made is the success of specialist markets, farmers’ markets, continental markets, is the fact that they are being Q61 Anne Main: Can I ask what lessons there are to merchandised as an event. It is true to say be learnt for the markets industry from the growth of historically that was what all our markets were in all specialist markets, such as continental and farmers’ our towns all over the country. There is a lesson to markets? be learnt that when looking at organising markets Mr Jones: If I can touch on farmers’ markets and within the UK we should be reverting back to what maybe ask Joe to talk about specialist markets. they were, specialised market days and, therefore, Farmers’ markets have really sprung from a the whole atmosphere is an event atmosphere and grassroots movement to—sorry to use the jargon— that was created once upon a time. You have got to reconnect. Sir Don Curry used the word so I shall use remember that farmers’ markets to a degree are us it. People really have embraced farmers’ markets reinventing the wheel because that was what markets because they bring food from their own community were a thousand years ago; farmers bringing their back into the towns. Increasing globalisation has products to market, selling their goods and creating meant that there has been this distance between food a community. From the planning aspects, certainly in particular and people and what happens in their during the 1970s and 1980s in the UK, local community. It has required a huge amount of authorities—we go back to the cash cow—saw the innovation because FARMA, the organisation, is a markets as a cash cow and where at one time there very small co-operative and all we have tried to do is would be one or two market days within a town it to put the concept and make it very available for became four or five and, indeed, in some cases six people and it is individual groups and people and market days, but with the demographics of the town they have picked up the idea and placed the farmers’ there is only a certain amount of spend available market, sometimes successfully, sometimes highly and, therefore, it actually weakens the eVort of the unsuccessfully, into communities and invited market. producers to come in. It is really almost like blowing up a hot air balloon and seeing whether it flies, and in many cases it has. Q65 Anne Main: I saw many adverts for the Birmingham Christmas Markets, for example. Do you believe we do enough to promote event-type Q62 Anne Main: Could I ask you to say whether you markets not only in the UK but also abroad as we go have a view on whether farmers’ markets should to other promoted markets abroad? operate as a special thing in themselves or you can Mr Harrison: No, I do not at all. There is a major imagine they could operate within ordinary markets role within the tourist industry within the UK where as well? general markets, regular local markets could play a Mr Jones: Our experience is that they are best where big role. they make an oVer which is specific to a farmers’ market. Q66 Anne Main: Would I know where to find markets and what sort of things are on in markets Q63 Chair: Can you explain why? from tourist information? Mr Jones: We say a farmers’ market is where the Mr Harrison: Yes. producer or the stallholder sells only their own goods, that there is a sense of localisation to the market and that typically is drawn from 30–50 miles, Q67 Anne Main: I would know. If I was coming to and the principal person behind the stall should be Britain I would know, “There is a good market in . . . involved in production or making the goods. That ” somewhere. draws a very diVerent kind of market. We feel quite Mr Harrison: You can visit the NMTF website and passionately that if you confuse that with bought-in you will see a thousand markets. products which could have come from any source whatsoever it makes the message we are delivering at Q68 Anne Main: What more do you think should be farmers’ markets not easy to pick out when you are done then? walking through the market itself. Mr Harrison: Basically there is a role that central Government can play in drawing these areas Q64 Chair: Just before we go on to the specialist together where markets oVer a diVerent specialist markets, you said that sometimes farmers’ markets oVer in the retail entity but also in the heritage of the are successful and sometimes not. What would be UK. We are a nation of shopkeepers and market the key factors that would say whether a site was traders and we could play a great role in selling the good for a farmers’ market or not? tourist industry within the UK. Processed: 17-07-2009 22:52:29 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG1

Ev 12 Communities and Local Government Committee: Evidence

2 March 2009 Mr Joe Harrison, Mr Simon Quin and Mr Gareth Jones

Mr Jones: I have to slightly disagree. I think we have Q71 Dr Pugh: It can be quite hard though, can it not? an emerging interest but it is not by any means Mr Harrison: That is diversity in markets. Markets common. You go to Tourist Information Centres take so many diVerent forms, whether it be the and there may be some information about markets. continental, specialist or farmers’ markets or the There is a great interest at the moment amongst the regular, they all serve a diVerent customer and tourism sector to start to link up markets through probably a diVerent demographic as well. Therefore, food trails but that is just starting to happen. they all have the same importance and all play an Mr Quin: The word “market”, just as the word equally important role. “retail”, covers a multitude of things. Just because it says, “Ah, a market” does not necessarily mean it is Q72 Dr Pugh: What do you mean that they all serve going to be an experience for the tourists or the a diVerent customer? visitors, and we need to work much harder on that Mr Harrison: For instance, the ABC1 type retail to provide a uniform experience. It is interesting that customer probably does not shop at a regular we started talking about town centre experiences traditional market, but a farmers’ market that is and oVering something that will attract people in for probably oVering organic-grown goods or a reasons other than just basic shopping, and markets specialist Italian or French market with specific to some extent have not been part of that, and that goods, generally higher priced merchandise, would is the reason why we, as ATCM, are part of the retail attract somebody more on their leisure time rather market slice, we want to ensure much more that than them needing to feed a family of five. It is totally markets are part of this agenda. diVerent. The diVerent markets serve diVerent needs within the community. Q69 Anne Main: Do you not think markets have been marginalised in terms of a tourism oVering? Q73 Dr Pugh: And are in competition with diVerent Mr Quin: Tourists are not just necessarily inbound fixed retailers? foreigners, they can be people who are coming in for Mr Harrison: They are not in competition with one the day. It is part of the distinct appeal that a town another in real terms, they really are not, they all or city centre can oVer and it is something that can serve a diVerent variety of shopper. diVerentiate it from the neighbouring location and Mr Jones: I think I would like to define a market as be a reason to go. People may still shop in Next or something that takes place on a regular basis whatever else when they are in that town, but they frequent enough to have a shopping habit, whereas have gone for the experience of the market and it has maybe some of the things you have described where been part of the pull and that is a very important you have fairs being set up at maybe a county thing that is being picked up on in some places. ground might be a fair and does not happen quite as often as a market might do. Just picking up some of the points from Joe, farmers’ markets are not so Q70 Dr Pugh: Let me just extrapolate from our own much about organic products, organics probably experiences. It seems to me that there are diVerent account for only 10 to 15 per cent of goods sold at market cultures around to some extent. You get farmers’ markets, they are about trying to provide what I call the standing markets, the markets that products to a community which are of the are there come rain, come shine, five days a week and community and, therefore, we are not trying to set that sort of thing. You get these event markets that ourselves up as anything particularly special but take over the whole High Street and are there for a there is probably part of the demographic that are couple of days and are never seen again for the next interested in environmental issues, interested in few months. Equally, there are loads of people who where their food comes from, and that is picking up are basically in a marketing business of a similar on that trend which is very diVerent maybe from kind who will move around to big events. If you go what other markets are trying to achieve. to the Southport Flower Show, for example, you see loads of people setting up stalls in a very traditional Q74 Chair: On the specific issue about farmers’ market-like environment but they are only there for markets and meat sales, is that aVected by the lack that event and then they move on to another big of local abattoirs? Does that inhibit farmers’ event. Is there a problem of almost an apartheid markets selling the farmers’ own meat? system whereby in the ordinary standing market you Mr Jones: In our submission we tried to make a link need to, as it were, sign up for the duration and sign between local food and the provision for local food terms, agree to pay a rent, take out a block for a development and markets. If I look at Hampshire, period of time, and somehow or other that works which is where I am based, there are now two against liveliness, inventiveness and people simply abattoirs, I believe, in the whole of Hampshire and popping in and, as it were, brightening up the market the largest one of them specialises now in a species with a new oVer that might not be there 12 months per day, so it means if someone is running a mixed of the year? farm they will have to go to the abattoir for pigs for Mr Harrison: No, not necessarily. There is the one day, beef another day and lamb another day and opportunity, even on what you would class as the that may be a 40 mile round trip for a small business standard regular market, for new products, new that is trying to develop a whole chain of production traders, and it is quite easy to join in. and selling in their own format. Processed: 17-07-2009 22:52:29 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG1

Communities and Local Government Committee: Evidence Ev 13

2 March 2009 Mr Joe Harrison, Mr Simon Quin and Mr Gareth Jones

Q75 Chair: We cannot stray into agriculture in authorities that investment in markets is a good general, that is not our remit, but specifically to thing when they have got so many other competing farmers’ markets. demands on their resources? Mr Jones: It is causing stress, yes. Mr Harrison: There is an investment in more than financial terms. There is an investment in as much as taking an interest in what the local authority already Q76 Chair: Does it make it more diYcult for a has in an asset and realising that asset to its full farmer to include meat within a farmers’ market if potential and, therefore, somebody put in control of there is not a local abattoir? that asset in the local authority to benefit the whole Mr Jones: It clearly will cause stress if the provision of its community in the best way it can. The is not there. introduction of the post oYce in Crystal Peaks is a Mr Quin: Can I just pick up on a point about the prime example of an initiative of how to use the sense that markets have diVerent demographics? market to the community’s best advantage. There You also have to remember that within markets, should be those sorts of initiatives in local particularly larger markets, they may well appeal to authorities, more than just a financial commitment, diVerent demographics. If you think of a town centre an interest commitment from local authorities in with a whole range of retail outlets, no-one would how they can use the asset they have already got. shop in every one of those outlets, people have their Mr Quin: I think the starting point would really be preferred favourites and preferred circuits, and so in to encourage the local authority to undertake a a market, particularly in the larger markets, you will review of its market, not in a traditional sense but see that there may well be the basic stalls selling basic actually to bring together some of the key commodities which is appealing perhaps to people stakeholders from the community and from the with less income but there might also be the olive town or city centre to say what does the market mean stall, the continental cheese stall, the fresh fish stall to you. There will be some people who will have a which will be shopped in by people on a much higher very negative perception of it because of all the income level, and people of diVerent ages as well, problems of setting up stalls or noise or market you will get youth clothing and all kinds of other trader parking and all those kinds of things, and things. That will all be contained within the one there will be others who will have a much more market but people just choose diVerent bits of it to positive attitude to it. You can go through a process, shop in and hopefully then discover a little bit more you can facilitate a half day to look at what the of it. We must not just say, “Oh, that’s an upmarket market means and what the market might bring market and that’s a downmarket market”. forward, and out of that will come some ideas for perhaps how some of the problems can be addressed and some of the opportunities realised. We know this Q77 Dr Pugh: My point is that if you go to big works, we have seen this work across the country, events, if you go to continental markets, there is an and it is not saying, “make a million pounds element of surprise, you have not seen these things available and do something”, we are not on that before and, as you say, there are regulars who go to basis of it, but it is saying, “think about your market the local market but equally there are people who in a diVerent way”. never put their foot over the doorstep of the local market. Are there any examples of people having suYcient variety over a period of 12 months within Q79 Dr Pugh: Do you think local authorities ought a static market to get people going in there to have a separate trading account for markets and speculatively to see whether there is something there look at it as a business which requires long-term they are interested in? investment and reuse of receipts gained from the Mr Quin: Most large markets would have casual market back into that long-term investment? stalls as well as the fixed stall these days. Mr Quin: I think it is a possibility. The other thing is to look at things like s.106 monies from major Mr Harrison: Very much so, but this is where the role developments that have happened to ask how do we of a qualified market manager or somebody taking then invest in the improvement of the market so that responsibility at local authority level comes in where it is not losing out to this new development that has they have an interest to grow their traditional taken place. Again, some local authorities have done market and try to introduce these products that are this very successfully and recognised that there is a available within the UK, the traders are available in potential harm to the market by new retail the UK and trying to entice them to come and work development and, therefore, it is a legitimate use of regularly on their market rather than trying to seek 106 monies. In too many instances I think markets venues on specialist markets that are travelling have not made it on to the agenda because they were throughout the UK. pigeonholed somewhere else and that is what we are trying to change. Q78 Mr Betts: You have referred to the local authorities seeing markets as a cash cow. What more Q80 Dr Pugh: Is there any merit in bringing private can they do now, particularly in the very diYcult sector expertise into local authorities to help with the economic circumstances we face and where it is not running of their markets? just market traders who may be feeling the pinch a Mr Quin: We would argue there is. We are strong bit but local authorities’ finances are feeling the believers that the reason why town centres have pinch as well? How would you persuade local started to see a way forward, albeit with the recession Processed: 17-07-2009 22:52:29 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG1

Ev 14 Communities and Local Government Committee: Evidence

2 March 2009 Mr Joe Harrison, Mr Simon Quin and Mr Gareth Jones it is going to set some of that back, is the bringing living within the community and they can play a role together of the public and private sectors to work in in managing their own markets alongside the local partnership because there is real added value that authority. comes out of having perspectives from diVerent stakeholders. The market is a key part of that town Q85 Mr Betts: You mean you see the local centre, therefore looking at how it is managed, how authorities retain their market licensing powers but it is run and what is done with it from a private sector in terms of running the market you see the local perspective is very important as well. authorities coming into some sort of format with the traders in there? Q81 Dr Pugh: I asked before whether there was an Mr Harrison: That is right. Basically it is awareness of local authorities having used responsibility sharing on the success of the market. prudential borrowing powers at all. It would seem to be an obvious case where they might be used where Q86 Mr Betts: Maybe some joint financial sharing in you are borrowing to invest in something which has terms of the overall success of the market as well? the potential to yield a return. Are you aware of that Mr Harrison: Exactly, yes. It is not an “us and them” happening anywhere? scenario, it is a community market where the Mr Quin: I am not actually but that does not mean community is feeding itself and the stakeholders that it has not happened. It is definitely something that is are taking part, and the traders are the important worth us trying to discover a little bit more about. stakeholders because without the traders there is no market. Q82 Dr Pugh: In terms of planning and licensing regimes, are these an obstacle at present? Are there Q87 Mr Betts: So we avoid the situation where you any changes needed that would help markets and get go round every market stall and see a picture of the them going better? local market chairman and basically a request to Mr Jones: If I could answer first. We had quite a lot write in and tell him what you think because the of pain during the stage of the introduction of market traders are upset. I have been through a few alcohol licensing where we were caught when it of those! In terms of the regulation, do you think transferred from magistrates through to local there are too many regulations, is it about right or authorities and at that stage farmers’ markets had to are there some that you feel would be detrimental to apply for licences which they did not expect to have a profitable operation? to do and the cost was quite diYcult. Just consider, Mr Harrison: There are obviously some that work many farmers’ markets are taking place on a against the progress and development of markets so, monthly basis, in which case to apply for an alcohol therefore, we need to seriously look at how we can licence with the costs and training at stake seem to move that forward. be prohibitively high. Q88 Chair: Which ones? Mr Harrison: I could not refer to any specifically Q83 Chair: Can you explain that a bit more? Why right now but, as far as consent streets are were farmers’ markets caught by the Licensing Act? concerned, when we are talking about street markets Mr Jones: If you have someone selling wine or local and freeing up consent streets to make it more of the beers then they will be caught. town centre oVer, and that is certainly the case in my local town, which is ironically Stockport, it is being Q84 Mr Betts: What about the general market able to detail those restrictions and the length of time licensing arrangements? Are these things you are and issues that have got to be gone through to make generally supportive of? part and parcel of the town centre market friendly, Mr Quin: There have been examples where they have and that is very, very important. been stuck in time, if you like, and have not changed Mr Jones: There are two specific issues we put in our and moved forward, things like commodity submission. One is to do with signage because restrictions in certain markets which have said “we farmers’ markets are infrequent events and it is vital will only have six types of that stall and nine types of that they should be signed correctly but in many that stall”. These have been historically handed cases we are caught by regulations that stop any down and that has been a problem for innovation in signage whatsoever either in the countryside or in some instances. The review process is going to look the town. It would be extremely useful if a genuine at that to see what is good practice being done farmers’ market could be enabled to put up signs and elsewhere and make changes. Joe may have more take them down under their own management and firsthand experience of some of this. be seen to be part of the community in that way. The Mr Harrison: I would like to refer back to what we other one is to do with planning permission. Many initially spoke about and that is basically other farmers’ markets are monthly and the reason they partnerships within the local authority and whether are monthly is they can take place under the 14 times the local authority does look at some specific a year rule which means that if they choose to go stakeholders, which are the traders, and whether more frequently, and we certainly encourage they could play a role in a co-operative, in a farmers’ markets to go more frequently, then they partnership with the local authority for the future have to go through the pain of planning and and develop roles not necessarily in the private sometimes that causes them to be caught under a sector but where they are genuinely local people rates requirement and so on. For a monthly market Processed: 17-07-2009 22:52:29 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG1

Communities and Local Government Committee: Evidence Ev 15

2 March 2009 Mr Joe Harrison, Mr Simon Quin and Mr Gareth Jones to go more frequent and, therefore, take on the idea where there are gaps. We will be seeking support of being retail and serving the community more can from various supporters in order to try to fill those be quite a burden. gaps. At the moment there is a PhD student working at Gloucester University who is seeking to identify Q89 Chair: I have just got two quick questions. The all retail markets in England and we hope that first one is about this idea of having a minister with maybe that research will be forwarded on to the responsibility for markets. Do you think that is Committee soon. really a runner and what would they do? Mr Quin: I think it is about the co-ordination of Q91 Chair: Do you know who that research is central Government’s views. When you start talking funded by? about markets, as we have seen, they do lots of Mr Jones: It is funded partly by the RMA and partly diVerent things. They are places of employment and through academic funding. it is naturally thought they might sit in BERR; they Mr Quin: What we have done as an industry is are about working with the rural areas and the challenge ourselves to think again and break down farmers and they might sit in Defra; they are about some of the thoughts that there are farmers’ markets animating town centres and might sit in DCLG, and over there, traditional markets over there, market so you go on. There is an issue that because everyone traders on one side and market operators on the perhaps has them somewhere on their agenda, they other, and everyone arguing. We have said the have not been focused on or taken seriously. As we markets are too important for that and we need to have a Minister for Small Businesses, and many of come together. That is why we formed the Alliance these are much smaller than that, it may well be and why we are working together. appropriate to have a minister who looks at markets Mr Harrison: The Alliance is on board now. More at not just from a business perspective. a local level there is a need for the market traders and management to play a greater role in town centre Q90 Chair: Finally, what can the industry itself do to forums where the markets play a role at a local level better promote markets? and be able to put across where the markets can Mr Jones: One of the things that the Retail Market benefit the town and vice versa the town can get some Alliance is doing is forming a Market Knowledge benefit from its markets. Certainly through the Group and we are trying to gather as much Alliance we are joined up from our end these days so, information as possible that is available, so existing therefore, the industry is helping itself trying to move information from individual markets across the itself forward. whole sector, all research, and seeking to identify Chair: Thank you very much indeed. Processed: 17-07-2009 23:04:40 Page Layout: COENEW [SE] PPSysB Job: 428788 Unit: PAG2

Ev 16 Communities and Local Government Committee: Evidence

Tuesday 24 March 2009

Members present Dr Phyllis Starkey, in the Chair

Sir Paul Beresford Emily Thornberry Anne Main

Witness: Mr Graham Wilson, Chief Executive, National Association of British Market Authorities, gave evidence.

Q92 Chair: Can I thank you for being the first NMTF and other agencies have done surveys, and witness at this afternoon’s session. Can I start oV the evidence from those surveys indicates that there with the first question, Mr Wilson, and ask you what are significant savings—it varies, I think, up to 30 progress you believe has been made since the per cent—for fresh produce. So I think markets, national survey of retail markets was published in generally, are reasonably well disposed to deal with 2005? the recession. Certainly,in terms of our membership, Mr Wilson: In terms of the overall position, I suspect I am not getting any sort of horror stories back of that with regard to traditional retail markets the markets closing down in the same way that the high decline that was evidenced in that first survey is still street shops, perhaps, are suVering, but it may be the continuing. Having said that, that in a sense is a case that with regard to a number of small markets rather simplistic answer to what is a much more the problems that were identified by the survey, with complex question. There is clear evidence that was the savings local authorities are seeking to make highlighted in the research of growth of other generally—the combination of circumstances—may markets, particularly specialist and farmers’ be having an adverse eVect on some of our smaller markets. We are currently awaiting receipt of some markets. So that, I think, is just local government further research, which is to be published as part of services, generally, just being squeezed, and markets our policy framework later in the year, and that being the recipient of that sort of impact. research, which is in the final draft stage, suggests that the total number of markets that are currently Q94 Chair: One of the allegations that are made by operating throughout the country is probably markets about councils is that councils use them as around the 2,500 to 3,000 figure. If you take into a cash cow. So if markets are actually creating money account the fact that the first survey was directed for councils, then I do not really quite understand towards the traditional retail markets, we know why you would expect a council to be closing them there are something of the order of 800 farmers’ down. markets which are added into the equation, and then Mr Wilson: I think it is right to say that there are a there are a number of, now, regular specialist and car number of markets—and, again, it is evidenced in boot sales. So we feel that the overall figure that has the written submission we made—which do make now been identified is perhaps a more realistic substantial profits for the local authority, but many overall assessment. In the same context, there is of those profits are channelled elsewhere. I think it is clearly an overall decline. I think you have seen this also right to acknowledge that a number of our other morning, from the evidence at Leicester and, also, members are currently subsidising their markets. the Nuneaton DVD, that a number of traditional One of our members, at a meeting we had this markets are still operating on a capacity basis. In our morning, Oswestry Town Council, is in a market written evidence to the Committee we highlight town, operating a market hall and an open market, smaller markets such as Hinckley, where there has and those markets are an essential part of the been something of the order of an 8 per cent increase community life of that town, yet the town council are in stall uptake over the last 12 months. So I think subsidising their markets on an annual basis to the you need to look at the overall picture, Madam tune of between £30,000 and £50,000 per year Chair, in that sort of context. The picture is one of because they regard the overall value. So, yes, we some encouragement, although in terms of the certainly would argue that in the past more of our traditional street markets there are some worrying members have benefited from this cash cow signs, particularly in respect of smaller markets. principle, and some continue to do so, but in the smaller authorities I think it is the case that currently Q93 Chair: Can I ask how the recession is aVecting a number of markets are being squeezed and being things? subsidised. Mr Wilson: The recession is having, perhaps, less unfavourable impact on markets than the high street Q95 Chair: Can I then ask you about the toolkit that generally. I think that the markets are, first of all, you have produced to help your members? How is because of the way that they are structured, in a that being received, and what sort of feedback have better position to deal with the impact of the you had about the challenges that it has identified? recession. I also think that in terms of the oVer that Mr Wilson: The toolkit was brought together markets make it makes markets an attractive following discussions with our members with the shopping initiative. We have done surveys, the intention of providing good practice. It is the first Processed: 17-07-2009 23:04:40 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG2

Communities and Local Government Committee: Evidence Ev 17

24 March 2009 Mr Graham Wilson one. The toolkit that we published in January is the before, which attracted tens of thousands and first of a series of toolkits that we intend to provide presented markets in a sort of truly international for our membership. What we are keen to develop is setting. Again, Darlington has a range of markets: good management practice, good customer relations they have specialist markets, food markets, and good understanding of some of the main collectors’ markets, and a wonderful outdoor and principles of market law and market management. indoor market. Again, it was all part of how the The toolkit draws experiences from some of our key market oVer gelled within the general town centre members, and enables others to benefit from that scene. practice. The toolkit has been very well received, particularly among our members that do not have the in-house expertise to develop detailed policies Q97 Sir Paul Beresford: I want to expand you a little and procedures. We recognise that in many of our on that. As an ethnic minority and an immigrant to member authorities markets are an integral part of a this country,I am aware that some of the markets are mixed portfolio of services, and quite often the world famous, and they are specialist markets— markets’ manager doubles up as the car parking Portobello Market is an example. Could you touch manager, the property assistant or the general on one or two of those and, also, on their influence? maintenance oYcer. So what the toolkit does is to There has been a change and there are continental give that person an element of professional markets coming here and, of course, as a member of development and a ready access to high quality the NFU, farmers’ markets. policies and procedures. This is what our members Mr Wilson: I think it is right, in looking at markets, have asked for, and certainly in the three months to look at the overall market provision. There was, since it was published we have had demands for for example, concern at the outset about how more copies from outside the membership of the farmers’ markets would sit with traditional street organisation, and we are encouraged to develop markets. What has happened is that farmers’ other toolkits, some of which will contain the markets have now become an established part of the evidence of the DVD you saw from Nuneaton, market scene. Whereas people originally had a little where we want to publish good practice and make apprehension about where they would sit, they are sure that good practice is available throughout the now welcomed and are part of the overall market markets industry. oVer. What is important for markets is that the oVer is a varied one and, also, the oVer is a balanced one. Some of our markets have used the attraction of the Q96 Sir Paul Beresford: Can you give us some market to present diVerent cultural aspects and they examples—obviously, with the exception of have also done this as a learning exercise, both for Leicester, because we have seen Leicester—of people moving into the area, by providing them with particularly successful markets and why they are the foods that they have from where they have lived successful? What is it they are doing that makes them previously, and educating the community into the successful? sort of way of life. Bradford is an example. I think Mr Wilson: Each year over the last four years, you are hearing evidence from Bradford later on, but NABMA, in conjunction with one of our sponsors, Bradford developed an Asian market sector where has run a Market of the Year competition precisely they went out from Bradford with a number of Asian to draw out from our members good practice. To traders and actually used that facility to educate and give you an example, Bury, in Lancashire, is a promote Asian cooking and Asian arts, and that was market that has won a number of national awards, a wonderful way, but in doing all these other things and one of the things that gives Bury a very high balance is so important because the traditional street profile is its food oVer and its general activities: its markets must feel comfortable with how the bustle, its attraction—the fact that the market links specialist farmers’ markets are developed and trips to the market with other attractions in the promoted. It is extremely important that we work in neighbourhood. So a day out in Bury will be a day partnership, and I think we are seeing more of this shared between the market and other things in the today because one of the best things the market neighbourhood. They really promoted it well on the industry has done in the last year or two is the back of the oVer. The borough market in Halifax establishment of the Retail Markets Alliance, which was another of our award winners where we were has brought together the farmers who provide the impressed by the way in which the traders, the main impetus for farmers’ markets, ATCM, NMTF management and the town centre generally came and NABMA. We come together, we share a together to embrace the market as part of the overall platform and we speak, largely, on behalf of the town centre scene. So it was team work and industry. In terms of making sure that the market partnership that impressed us there. Last year we oVer is varied, is balanced and we get the best that all had Borough Market in London and this year these diVerent markets can bring, the Retail Markets Bristol food market, which made such a vital Alliance is going to be an excellent vehicle for contribution to promoting the food agenda, healthy achieving that mix and balance in the future. eating and doing things with schools and other agencies to educate and promote the whole healthy eating concept. We also recognised Darlington last Q98 Sir Paul Beresford: We have got continental year as best market attraction. Darlington had a markets coming here. Do we go there? Should we? wonderful international market, something that Should the market traders get together and go to Bradford, another of our members, had had the year Europe? Processed: 17-07-2009 23:04:40 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG2

Ev 18 Communities and Local Government Committee: Evidence

24 March 2009 Mr Graham Wilson

Mr Wilson: There is no reason why we should not; process of getting the local authority to understand many of our traders provide excellent quality.It used that the markets are a valuable local authority asset, to be the case that people felt obliged to go to the and investing in them in diVerent ways. likes of Vienna, Salzburg or Bruges for their Christmas markets. I would say that in places like Manchester, Belfast and some of our other towns Q103 Anne Main: Can I ask you to expand on that and cities we now have Christmas markets the rival a little more? Public finances are very tight, and you of any continental markets in Europe. We have some do say that this should be possibly more of a priority superb continental Christmas markets, and, again, for local authorities, and you also said about the lack in the submissions that you have received from the of expertise. Can I ask you to flesh out those two Retail Markets Alliance, you will see the tremendous things? One: do you think there is something to be impact that some of these continental Christmas said for making a greater argument for the broader markets make in terms of adding to the overall retail social role of markets and where would that fit in a take. In Belfast it was something like an additional council’s overall view or strategy for its area, and, £5 million; in Manchester it was something like £22 two, if the local authority does not have the expertise million to the overall retail take. or does not seem to know which bit to put it in— whether it is Parks and Gardens or Parking, or whether it is development of the city centre—should Q99 Sir Paul Beresford: What I was meaning was there be a greater use potentially of the private that the continent invades us so why do we not sector’s expertise or joint partnerships in looking invade them back? after the running of markets? Mr Wilson: As I say, the quality that we have, there Mr Wilson: On the first point, there is clearly a role is no reason why we cannot. for the social benefits of markets. In terms of how the market operates, in terms of creating space for Q100 Sir Paul Beresford: So why do we not? people to actually meet together and enjoy time Mr Wilson: Certainly in terms of standards there is together, in terms of the market potentially fulfilling no reason why we cannot compete. a wider role in providing information and providing services, I think you already know that, for example, one of our markets has a post oYce. There are others Q101 Chair: Do you have a figure for the percentage which provide facilities for charities and other of total retail trade in Britain which is in markets? organisations to promote information about Mr Wilson: No, I am afraid we only have the sort of services. Markets have been identified as a place figures that were contained in the initial 2005 survey. where, certainly, the older generation like to come We have done some more work. I mentioned the and feel safe. I think there is a very important social work that we were currently undertaking on the role for markets. In terms of how markets are policy framework. The NMTF have sought to organised, one of the things we would certainly ask update the spend that we identified in the 2005 you to consider is to encourage local authorities to report, and the indication is that that figure of £1.1 look at more innovative ways of actually providing billion was an understatement. The research that the markets. Among our membership at the moment we NMTF have currently undertaken and are shortly to have a number of private market operators; complete suggests that the figure, looking at markets as a whole, is probably nearer £3 billion. although we are, basically, a local authority organisation, two years ago we did bring within our membership a number of private markets, and we Q102 Anne Main: You touched on the fact that would certainly encourage our members to look at sometimes markets are seen as a cash cow. What the benefits of a public/private partnership. We more could local authorities be doing to support know, for example, that that already happens— markets in their areas, since they have, in the past, Luton is one place where a public/private been benefiting? partnership has been implemented, and Liverpool is Mr Wilson: I think part of it is investment, and I can another place where they are looking at a new deal with that separately. It really is asking the local market against the background of a public/private authority to invest in its markets in terms of the partnership. However, we would also suggest that quality of the management of its markets. Whereas beyond that local authorities should look at possible some markets have excellent management (I other vehicles for their markets. Markets often, commented earlier about how sometimes markets when capital is being allocated in the authority, or are treated as being capable of being run by anyone), the funding is being looked at, are marginalised. We I think there needs to be an investment in terms of would say that there are models, such as setting up a professionalism in the market. There needs to be local authority company to actually provide the identification of a markets’ champion who can speak market as a stand-alone trading organisation— on behalf of the markets, and, very importantly, there needs to be an understanding and acceptance by the local authority (which I think we are now Q104 Anne Main: Can I pick you up on that? Not all beginning to see more of) that, yes, they are a trading markets are the same. I live in St Albans and that has operation, and they start from the premise that they a very busy street market and we have seen a lovely must be operated on that basis, but they can bring great big open space that would be a community significant other benefits. I think it is very much a space. Could you expand on how you would come Processed: 17-07-2009 23:04:40 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG2

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24 March 2009 Mr Graham Wilson up with some sort of model that could be dipped into something and then having regulation, law and by the various diVerent types or sizes or layouts of interference, whereas you are probably better oV market? leaving it at the local government level? Mr Wilson: Yes, what we provide, as part of our Mr Wilson: I do not think it is a question that we are membership service, is, first of all, a “critical friend” looking for interference; we are just looking— approach, or we provide consultancy services to our members. Indeed, there is a range of excellent private Q107 Sir Paul Beresford: You will get it! consultants who operate in the same way. What we Mr Wilson:—for support; we are looking for say is there are a range of options that are available somebody who will be, eVectively,in government, we to local authorities in terms of how they operate hope, a markets’ champion. their markets. They may feel it appropriate to continue as they do at the moment, as part of a local authority portfolio, and that is fine if that works— Q108 Emily Thornberry: We heard your evidence you have heard this morning about how it works in about an 8 per cent increase in the market at Nuneaton and you have seen how it works in Hinckley and your evidence about the increase in Leicester. However, we also think that there are specialist markets, but overall, as we understand it, other possibilities that market authorities need to there is a problem for the market sector in that there address. One is a stand-alone company, another is a are not new people coming into the traditional possible trust arrangement and another is a public/ sector. What is the main reason for that, would private partnership. What suits one necessarily does you say? not suit another, but what we would certainly Mr Wilson: There are a variety of reasons but the commend to all local authorities is that in this main one is, I think, that the industry, in some current climate it is important that they take stock of respects, has been far too insular in the past. There their market operation and actually assess what has been a failure in respect of some of the national model fits them most eVectively.Clearly,in St Albans organisations to actually work on a co-ordinated there are certain characteristics and there are certain basis and promote new schemes and new qualities to the organisation. It may be that one opportunities to bring in market traders. Farmers’ model would fit and another would not. What we markets, for example, have brought in a significant say is that in order to deliver the most eVective number of new traders, but I think the industry has market, please, as part of the evaluation or to work together more on a national basis. We are assessment of your market provision, give serious beginning to see this happen through the Retail consideration to what model most conveniently fits Markets Alliance but we have also, together, in the your situation. last few months, promoted a national scheme called “Make your Mark” where we are looking to bring in new traders. The industry needs to work harder in its Q105 Chair: We are coming to the end of this session. own respect, and I think we are beginning to see this. Can I just very quickly ask you about central We have also got to tap into various initiatives that government, and then Emily has some questions currently exist through apprenticeship and through about market traders? I know you have been regional development agencies that help with job suggesting that there should be a government creation schemes. This is, again, where I would hope minister with special responsibility for markets. Do that if we had a minister championing markets that you think that is a reasonable expectation, and minister would flag up the importance of markets in which department should they be in? terms of embracing some of the new start schemes Mr Wilson: I would like to think, given the overall that come out from various agencies. We need to get contribution that markets make, that it is a our act together but we certainly need some support reasonable proposition. I think if we were to have a in terms of identifying the value of markets in new government minister, which I think would be a likely start opportunities. co-ordinating role, it would sit in Business, Enterprise and Regulatory Reform or Communities Q109 Emily Thornberry: How long has “Make your and Local Government. There is currently a Small Mark” been going? Business Minister; whether there would be merit in Mr Wilson: It is a new scheme that started just before linking that responsibility within the remit of small Christmas and which will come to a conclusion in business (it probably would need some sort of review the summer. The organisation did a scheme last year of the portfolio), I hope it would be realistic to, at of finding new traders to work in shopping malls. least, flag up a responsibility in an existing They have now transferred their attention to government portfolio or that, as part of any sort of markets and, currently, we are beginning the stage of restructuring of Cabinet or ministerial judging the entries to the competition. That will be responsibilities, there would be some recognition of finalised by the summer. the role of markets. We desperately need a co- ordinating role. Q110 Emily Thornberry: You talked about apprenticeships and the need, possibly, for Q106 Sir Paul Beresford: If you got a co-ordinating something like apprenticeships, and that is really role at a government level, do you not run the risk of going to take me on to my next question. What the minister—he or she—feeling they have got to do training is available and how successful is that? Processed: 17-07-2009 23:04:40 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG2

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24 March 2009 Mr Graham Wilson

Mr Wilson: The training that exists at the moment is to learn the main elements of being a market trader largely fragmentary. There are some of our without putting money or career at risk. We have a members—Warrington is one, for example—which number of mentoring projects and a number of have a scheme they have undertaken via the business support projects. Certainly, as an industry, Regional Development Agency, where they provide we need to bring those together on a national scale. grants, where they provide mentoring, where they That is where we need help in terms of making provide business support and where they provide a meaningful engagement with Regional range of other initiatives to help traders. A number Development Agencies, and with others who hold of our members have schemes where they allow a the purse strings of job opportunities and new start new market trader to work alongside an existing opportunities. one, and that sort of apprenticeship enables a person Chair: Thank you very much indeed, Mr Wilson.

Witnesses: Mr Chris Hurdman, Oxfordshire Market Trader, and Mr Chris New, New Markets Solution, gave evidence.

Q111 Chair: If I can start oV and ask each of you make a profit. I think their profits sometimes—they very briefly to say whether you think that markets must expect quite a lot. If you have a successful are in decline or flourishing, and also what eVect you market, they would raise the rent on a yearly basis, think the recession will have on that. and sooner or later it becomes cyclical; a few traders Mr Hurdman: Personally, I think that markets are leave so the public stop coming, and a few more flourishing at the moment. I do not think that the traders leave and the public stop coming even more. recession will have a great impact unless it is a very So it is a cycle. long recession. I have found, myself, that we are Mr New: An interesting way of looking at it. Price is seeing more people on my markets. one of the key components. If you think of markets Mr New: I think we have a mixed bag, Chair. We in terms of marketing, when I go and look at a have extremely good case studies where markets are market and see why it is doing badly, and what needs doing extremely well because of local reasons, and I to be done, you can look at the “P”s of marketing— think there are markets round the country that are very often the four “P”s (and there is often half-a- doing extremely badly, for local reasons. I do not dozen, never mind four)—and price is one of them. think there is a “one case fits all” situation. Local authorities do tend to want a rent increase when the operational situation does not allow for it, Q112 Chair: That takes me on to the next question, so you get a political influence that is bad upon that which is what is it that makes a market successful? I commercial aspect of the market—I will back my suppose the corollary is that the absence of it makes colleague up here. You cannot put a stall rent up just them unsuccessful. Mr Hurdman, do you want to because you have got a 5 per cent cutback in the local speak from your experience? authority budget, but fundamentally that is what Mr Hurdman: Yes, I will. I trade on five markets in local councils do. So price is one of the key partnership with my brother in and around components. Oxfordshire. I have traded on good markets with good practices, where the local authority discuss Q115 Emily Thornberry: You talked about five “P”s, things with their traders; I have traded on markets and I thought: price, public loos, politics, parking. where they have been taken over by a private Mr New: There is one “P”, place, and that is a key operator—I think they call it a public/private “P”, you might say—location. Location is a key. If partnership—and I have seen those decline you do not hold a market these days in the right dramatically, mainly I think for the reason that the location you will not succeed. Thirty years ago private operator comes in and he, basically, wants to markets could have been anywhere because they make a profit from what he is doing. So I think that were a draw in themselves and there was a lack of the local authority is best placed to run those competition in retailing, which meant that the markets. traditional market was the place to be. In this day and age when competition is extremely intensive— Q113 Chair: In the details we have it says that you extremely intensive—you have to get all the right have traded at Thame and Bicester. Which are the situations for markets to be viable. We still have other Oxfordshire markets that you have traded in? markets that are being shoved to one side because a Mr Hurdman: A long list: Banbury, Kidlington, developer has come along and said: “I want that Bicester, Thame, Wallingford, Wantage, Abingdon; site”, waved their pound at the council and said: “If going a little further away, Southam and Didcot—a I have that site I’ll build you a market over there”, failed market now. and the council says: “Yes, okay, that sounds wonderful.” Then you find out that “over there” is a Q114 Chair: Can you say why Didcot is a failed secondary location or a tertiary location, so the market then? market is shoved out from the general retail scene Mr Hurdman: If you wanted me to put it down to and it does not get the passing trade. If markets are one thing I would say it was price—and the same in not attractive in themselves as much as they used to Banbury. Private operators obviously have a need to be because of extreme competition, then markets Processed: 17-07-2009 23:04:40 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG2

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24 March 2009 Mr Chris Hurdman and Mr Chris New have to be put back into places where they can retail high street you do not see rows and rows of red shops to the customer by natural forces, by passing trade. all with diVerent names but with the same font on— So location is key. everything is diVerent.

Q116 Anne Main: Would you consider having a sixth Q120 Chair: Mr New, do you have any evidence as “P”, policy—what the local authority decides to do to whether it makes a diVerence? when it is altering, maybe, its vision for the city Mr New: I think so. You will tend to get diVerent centre, for example? So maybe altering the flows of views from diVerent people, and many market traYc or whatever else? traders do not like regimentation of a single type of Mr New: I have got quite a few “P”s. I think politics stall; for very operational reasons they, perhaps, is a key factor. Lack of interest is a key factor, and cannot work with the same type of stall that other politics often has a bad influence upon the situation. people can work with. On the other hand, you will get councils with town centre management, for Q117 Anne Main: I said “policies” not “politics”. instance, that demand an upgrade in standards. Mr New: Okay. There are many local authorities around that have not invested in their market’s infrastructure and Q118 Anne Main: My own council is coming up with where it is quite tatty.In my view (another “P” comes its own local development framework, for example, into mind), presentation is vital because in this day and how it does things in the city centre may well and age, when you are competing with all retailers have an impact on its market. So I wondered how for that pound, you need to present yourself much you felt that the policies that councils decide extremely well. It is important that the market to do impact on a market? authority carries out much of that presentation, in Mr New: There is no doubt that if you are changing my view, to assist the trader in having the right the infrastructure of a town centre without regard to trading platform for them to present well. how your market can perform for the sake of the community,then you are not doing the right job, and Q121 Emily Thornberry: I am sure this does not that does happen. Likewise, if you are constructing apply to you, Chris, but to what extent do you think a new local development framework and have the that market traders are at fault for not being opportunity to place the market into a town centre suYciently flexible and on their toes and changing situation that can work and with all the benefits that depending on circumstances? can arise, then one should take the opportunity to do Mr Hurdman: You have only got to talk to market it. I have been working, for instance, in Hereford traders and you will get the feeling that they are, lately, where we are putting a new open market into probably, the most flexible people you would ever the pedestrianised precinct in Hereford, lifting it out meet. You have to be flexible. On my market, they go of the outskirts, cattle market position where it is to Wallingford, where you only have 20 foot by 20 doing badly and bringing it into a new city centre foot, and you will go to Thame where I have 15 foot position where it will be a great service to the by 10 foot, so we are very flexible in that respect. community and bring vitality to that city centre. So, yes, I understand that. Q122 Emily Thornberry: I do not just mean in terms of space, I also mean in terms of the things that you Q119 Chair: Do you have a view as to whether sell—that sort of flexibility. markets are more or less successful when they have Mr Hurdman: I would not be trading now if I was fixed furniture, if I can put it that way, like Leicester still selling exactly the same things that I was trading market here, or if there are stalls that are put up and in 25 years ago. Most traders pick a line and then you taken down? fine tune it. Obviously, I sell a lot of dried fruit and Mr Hurdman: All the markets that I trade on are car that was not so popular 20 years ago, but now it has park spaces during the week, maybe free car parks, really come into its own. Also, what you would not or very small markets where they range from a 15, want is somebody, say, who found a good line, like 10-foot stall market to a 100 10-foot stall market. At batteries, for argument’s sake (to pick one oV the top every one of those we put up our own stalls, and of my head), and then you would not want every actually we really like doing that, for two reasons: I trader on the market selling batteries, or else it sell confectionary and dried fruit—that sort of would be like going to a market in Thailand or thing—foodstuVs, and I like my stall set up so that something, where everything is the same. So, as far its cool in the summer, warmer in the winter, and I as flexibility in the trader goes, I think they are have the frames and the stalls to do that. When flexible in what they sell because they are the buyers, operators, be it local authorities or private and they are only going to buy what sells. operators, use their own stalls, it is very diYcult to adapt to your own trading position. If you, say, go Q123 Emily Thornberry: I asked the previous witness down Thame market today you will see 50 diVerent and perhaps I ought to ask you two, as well: do you stalls all set up diVerently with their own feel, and think there is any need for specialist training of you can tell exactly what they are selling by the way people who work for markets? that they set up the stall. I, personally, find that when Mr Hurdman: Well, I would say no. I think you are you have got rows and rows of stalls that all look the born a trader, to be honest, if you like people. I am same it is a bit mind-blowing; you do not actually see lucky, we have two people in our business, my what is on the stall, much as when you go down the brother and I; he buys, I sell and do the paperwork. Processed: 17-07-2009 23:04:40 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG2

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24 March 2009 Mr Chris Hurdman and Mr Chris New

If I did the buying I would be bust, and if he did the Q125 Chair: One quick question to you, Mr paperwork we would be bust. I do not think, Hurdman, is it important to you to get the same personally, you can train for that sort of thing; that pitch every week or not? is a general life thing. I have a friend who is actually Mr Hurdman: On the markets that I stand on, yes, it an FD of an airline, and he says to me: “Chris, you is very important. Not just that, because people are the FD; you are the buyer; you are the seller.” come through the market actually sometimes they Standing on a stall with them and watching them will say, if I have moved four stalls up or 40 foot work—it is the buying, the hours, knowing the down on my market, Thame (which is a long street whole breadth of it—I do not think you could pick market in the high street): “Where were you last that up in a training school. week?” So it is very important for that stability and, Mr New: I do not doubt that what my friend is also, for the customer because when you first start saying, from his angle, is extremely wise. From my trading, after the first few months, people get to angle, what I see of markets that are scruVy, badly know you, they might spend £1 with you and, presented and where there is poor customer care, hopefully, after 12 months they are spending £5, clearly there is a desperate need for training. When because they know and trust you, and they know shops in the high street are closing their shops from that you are going to be there every week. 9.00 to 9.30 once a week so they can train their staV on operational issues, and succeeding in presenting Q126 Anne Main: Mr Hurdman, can I start with their goods to the public in the way that the public you, please, first, about the role of local authorities? expects to see them, and when some market traders I asked a similar question to the previous witness. are presenting their goods by throwing them on the Do you feel there is anything more local authorities stall and by not presenting well, and by not flashing could do? The words “cash cow” have been used, up, as we say in the industry, and displaying and I see in your own submission you do not feel that properly, then clearly there are some skills that many local authorities are particularly supportive of market traders need, but they have not got the markets, so I would like you to address for me, if opportunity because of the way they work—small possible, what more could be done and what is the businesses, disparate distances from each other, role of the markets manager within the authority? etc—where there is a desperate need for training. So There were dialogues you had with local market trader training is very much lacking, and we authorities—do you believe your voices are being must concentrate, as an industry, upon that to have heard? a long-term future, in my opinion. I am not saying Mr Hurdman: There are three questions there and I that it should only be the sort of professional quality will probably only answer one of them! No, I do not training with the use of computer systems, and think that we are being heard. In fact, sometimes I whatever, but that should come into it. I am not feel like I am banging my head against a wall. At the saying that the “sitting next-door to Nellie” moment, I trade on the five markets that I do, but I approach of training is wrong; it is dead right, and represent traders on three of those markets and I will learning from each other in any field is dead right, have town clerks that will not allow me public and that is why Graham mentioned the mentoring participation at our town council meetings when our programmes that happen in odd places, not across rent is up for review. When the rent is up for review the board. Often the best way to learn is from it is a fait accompli; it is all done and dusted; they someone who has learnt and is prepared to mentor align the rental incomes to their precept, so they will you, but there are other training factors, for actually say in the meeting: “If we don’t put up the instance, for market management. Many years ago, market traders’ rent our precept will have to be 5 per we used to have an institute of market oYcers where cent; if we leave it as it is or give them a reduction, it professional training was across the board for those will be 2 per cent”, and so they are aligning the who were interested. I learnt much of what I know amount of money that they need to take from us to from my young days in the institute by learning from their precept, which cannot give you a fair rent. So others and, as I got older, by teaching others. what happens next year, when 10 traders leave the Unfortunately, that is not there any more, but there market and they say they have got to put it up again are other opportunities, and I am sure Graham will until such time as the market diminishes? Your other agree that there is more to be done in terms of question was: do I think that they support the training, but how to do it and the lack of finance to market? In many of the authorities that I work I do it is an issue. think the town councillors are very supportive of the market; they are just not actively supporting the market. If I go to a meeting and I speak to Q124 Emily Thornberry: Can I ask you one last councillors, they are mindful of the history of their question: what is “flashing up”? market—some markets that I stand on are 400 or Mr New: It is presentation. A market trader who 600 years old—but they are not being actively starts at six in the morning, brings his goods in a van, supportive. unloads his goods on to the floor and on to the stall and sets his goods out for sale, is, at that point, “flashing up”. Q127 Anne Main: Can I pick you up on that Mr Hurdman: This is just a quick one: there is a particular point? Do you think the council bears in saying on the market: “It’s the flash that takes the mind the eVects of the things it does on the market cash”. when it is making decisions? Processed: 17-07-2009 23:04:40 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG2

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24 March 2009 Mr Chris Hurdman and Mr Chris New

Mr Hurdman: One hundred per cent no. I can Q131 Sir Paul Beresford: Does that mean a minister quickly tell you that I had a trader come to me a in central government? I think that may be month before Christmas, or thereabouts, in tears disastrous. because they had put a CCTV camera space right in Mr New: It is funny this, because when we were the middle of where his stall was, four weeks before asked to submit evidence to you, I wrote mine and Christmas. He was gutted. sent it oV, and I said to Graham: “Have you done yours yet?” and, yes, he had sent it oV. We looked at each other’s submissions, and we had not done that Q128 Emily Thornberry: They physically stopped his beforehand, but there are remarkable similarities— stall being there? He did not mind being looked at, there are diVerences but remarkable similarities. He did he? went for a minister; I went for an agency. Perhaps Mr Hurdman: No, he physically could not trade. mine is more unrealistic. They put the base in on a Monday morning and he went to trade on a Friday,and there is the base of this CCTV camera. So what they do not see is the eVect Q132 Sir Paul Beresford: Related on that, are there that that would have on a man that trades on that items of legislation or regulation at that level or particular market for two days out of five. You are, below that you think should be brought in or should eVectively, saying: “Do something else. Go on the be taken out? dole”. Mr New: Clearly, markets go back to medieval days, and the way they have arisen is through public health legislation and Food Act legislation, which is mainly Q129 Anne Main: Can I ask you if you think it is enabling legislation on the back of charters from possibly because the person who has the market in many hundreds of years ago. Graham has made their portfolio—and we have heard it has been some mention today of alternative delivery systems, tagged on to all sorts of things—does not and I would certainly press for research to be understand markets, or has not got a great enough conducted in terms of potential alternative delivery emphasis on markets? What is the reason? Why systems for markets. If local authorities cannot do it would someone be so crass or insensitive as to just go right then there will be others who can do it right. I ahead and do something like that without think one of the questions you put to him was about engagement? how should this be structured. I think the answer is Mr Hurdman: There just does not seem to be anyone we do not know yet; there are co-operatives about, in the—the phrase “champion” could be used; you there are trusts about—but not many. could have a local champion of markets. We do have one in Kidlington; we have a councillor who is very Q133 Sir Paul Beresford: What about the Local supportive of the market and if there are any issues Government Act? that we have he will champion our cause. He does Mr New: Which one? not always agree with what we are saying, but we are talking about a very small market, only 10 or 15 stalls. Only last week we were told that street Q134 Sir Paul Beresford: When we looked at the furniture is going to be put in where the stalls are. markets the other week in London, that was their The word “consultation” to local authorities first complaint. normally means: “We’re showing you what we’re Mr New: London markets, of course, do operate going to do”. That is what “consultation” means; it under diVerent circumstances legally than most of does not mean: “Would you like this, or would you the markets round the country. I do not pretend to be a specialist on London markets. Clearly, there is not?” Sometimes I feel like I am the town and local diVerent legislation more akin to street trading authority’s nemesis because I can see them sucking legislation, compared to markets throughout the breath when I come in. This is the sort of issue we country where the bulk of markets are. I think you are talking. need to carry out some research into delivery systems because there are alternatives in some cases. There Q130 Anne Main: Mr New, do you have anything are some excellent local authority markets out there, burning to add on that? and we have heard of a few and I could tell you quite Mr New: I think my colleague here is telling you a lot more (and I could also tell you a lot of very bad some home truths, really. That is an operational ones) where they can run markets. It may well be problem that will occur from time to time right that if you have research into what capacity there across the country, because of a lack of could be to find the right models, a markets agency could probably direct failing markets towards those understanding of what markets are and what they diVerent models. should be achieving, because of a lack of local champions, because of a lack of particular interest and because of a lack of chief oYcer interest in the Q135 Anne Main: Mr Hurdman, can I take you back markets service. Perhaps they do not have a high to the fact that you said that people might spend £1 enough profile. I think you are being asked to give with you and then build up to £5 and trust you and markets a higher profile than they have got, and I know where you are, and are concerned if you move? will certainly support that. It needs doing at central How much do you see your role as a market trader government level and at local authority level. not just as a normal retailer but, also, more of a Processed: 17-07-2009 23:04:40 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG2

Ev 24 Communities and Local Government Committee: Evidence

24 March 2009 Mr Chris Hurdman and Mr Chris New social role, or community cohesion role? Do you Mr Hurdman: You can invest without making a think that is too much to say it is, or do you say there profit. You can re-use the extra and then say that that is a role there? is what it is going to be. What I am saying is I should Mr Hurdman: In the communities that I do my not need to balance the council’s books; I should not markets on, I think sometimes I see myself as a bit of be funding their diVerent services. If you want to a social worker, but this is all part of being a people make a profit from your market, fine, but reinvest it person. It is a meeting place. I do see what you are back into the market. saying. When you get older people and even young mothers, it is just a great meeting place. Q138 Chair: I think you may have answered this, but in most of the markets where you operate there will Q136 Sir Paul Beresford: Can you pick up on the be town councils, which you have talked about, and legislation? then there are district councils. Who is it you are Mr Hurdman: Yes, I did pick up on the legislation. If actually paying your money to? Do you pay it to the I had my way, markets would be ring-fenced, so that town council or the district council? local authorities could not be seen to make a profit Mr Hurdman: Some get paid to the town council from them and then they would value them for what because most of the markets that I stand on are they are, rather than just the money. It is a comment charter markets, so they were given the right to hold that is always being made to me that we have to get a market, and then some of them are district councils value from the market. I do not know who is telling who, obviously, hold the right to that market. So them this, but they do not always take the value of some go to district and some go to town. what we are doing with oVering lower prices, for instance; we are in competition with the supermarkets and out-of-town shopping areas, and Q139 Chair: Do you see any diVerence between we are able to bring those down, because most them? customers that come on the market are price Mr Hurdman: I prefer town councils because I find sensitive. that town councillors are more approachable. With the district councillor, if you trade in a town that is Q137 Sir Paul Beresford: You do not want them to only on the periphery of their district, they are not make a profit but, at the same time, you want them that interested. to invest. Chair: Thank you very much indeed.

Witnesses: Mr Tim Hirst, Assistant Director, Commercial and Support Services, City of Bradford Metropolitan Council; Mr Malcolm Veigas, Assistant Director (Community Services) Bolton Metropolitan Council, and Mr Nick Rhodes, Head of Leicester Markets and Enterprise, Leicester City Council, gave evidence.

Q140 Chair: Obviously we do not want to repeat look at that particular product or that situation. In stuV we have had before, although some of the terms of non-food, then I think they are struggling, questions are the same, so if you agree with the other the same as the rest of retailing generally. two do not feel the need to reiterate it; just say if you Mr Hirst: The only thing to add, really, from do not agree, really. Can I start oV with the first Bradford’s point of view is that I believe the local question about whether you think that markets, as a markets are holding their own because they have whole, are thriving or declining, and what eVect do reached a position of strength over the last four or you think the recession is having on them? five years, in the position they have got to. Mr Rhodes: I think there is a mixture of both there, really.There will be some markets in general that will Q141 Chair: How many markets have you got? be declining, and fewer markets in general that are Mr Hirst: Three indoor, one wholesale and two improving. The main thing, I think, is that the outdoor. commodities within each market, some of those commodities—in particular, the non-food commodities—will be struggling, whereas the Q142 Chair: Can you each tell me about your general trend, currently, seems to be that the food markets, whether they are in profit and whether you traders are holding their own and, probably, slightly think they are going to stay in profit? improving. So it is easy to generalise, but I think the Mr Hirst: The individual markets service in non-food traders are finding far more competition, Bradford is in profit, in the sense that it makes a both within the high street and online now, than ever surplus—round about £500,000 over the financial before and, therefore, they are feeling the real pinch. year. That has grown, probably, from £50,000 to Mr Veigas: In terms of wants- and needs-based £60,000 in round about 2002; so in the last six or retailing, if you need food to eat you will go out and seven years it has developed a surplus and, along buy it. If you take advantage of the credit crunch and with it, a strategic plan that was put in place at that turn it to something that is a positive for your retail time to make a policy about reinvesting surpluses as oVer then you will be in the ascendancy. For well into the market service, which is why I said from example, Bolton does that in terms of its monthly a position of strength in 2008–09 it is holding its own newsletter to all households. So it depends how you during an economic recession. Processed: 17-07-2009 23:04:40 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG2

Communities and Local Government Committee: Evidence Ev 25

24 March 2009 Mr Tim Hirst, Mr Malcolm Veigas and Mr Nick Rhodes

Q143 Anne Main: Can I ask what you do with your Q147 Anne Main: Mr Veigas, you could do two surpluses? You have just touched on your surpluses, councils at once, sitting there! You have just said but what do you normally do with your surpluses about bringing it into the portfolio with the park, in from the market? your comments about moving the market. We have Mr Hirst: The surpluses, up to last year, have been had representations from people, written and reinvested into the market service. It is tougher to otherwise, that says this seems to be a very ad hoc keep hold of it as we move into this year and, decision, where markets are placed. Do you have a probably, the year after. view about where the market role should be placed Mr Veigas: Bolton markets do not have a surplus, within a local authority? What is the best area for it? they are in deficit at the minute, and the reason for Mr Veigas: I think there is an awful big diVerence in that is the majority of the out-district markets, the terms of where the markets portfolio sits. For three of them, all run at a loss of about £140,000, example, in Bradford it is within Culture, Tourism which causes the overall portfolio to be in deficit. and Sport—and I am not speaking for Tim, it just is. In Bolton it is in the Environmental Services, and I am sure Nick is going to say it is in Regeneration. Q144 Chair: Are your councillors happy about that? The issue is, and I think where I sit in a position Do they regard it as a social service? myself, I am a chief oYcer (and Chris was talking Mr Veigas: No. One of the reasons I have been earlier about where the influences actually exist in employed recently is to turn that around. So in terms local government), it is at our level that we can of some of the things that we are going to be doing, influence other agendas in other departments. So it is looking at the loss-leading venues and doing even if we do not sit in the correct Regeneration, something about it, and we are in the process of Environmental Services—wherever—if we are in a doing that now with one particular venue called position of influencing the way in which those Horwich market. It is a very old building, it is not agendas move forward and join up and collaborate very well patronised, either by traders or by on various issues, then we can get to the stage where, members of the public, so we have gone through a for example, when Highways are putting a new street very convoluted process of area forum meetings, scene into the centre of a pedestrianised area, we can town council meetings and exec-meetings, to advise them that they actually leave three-metre gaps eventually get to the solution that we are going to between a piece of street furniture or a tree, then knock it down. We should be making alternative another three-metre gap, then the same again, then provision at some point in the next two or three a six-metre gap, so that when it comes to us putting months, but certainly moving it from its existing stalls in there, because that is what we want to do, we position, and therefore turning round the deficit. simply plonk them in alongside whatever is being created. Q145 Chair: Do I understand you used to work in Bradford? Have you taken your experience there to Q148 Anne Main: Mr Hirst, you have got it in a Bolton? diVerent place, but, also, do you believe there is Mr Veigas: Pretty much the model that Tim was enough expertise in whoever has got the markets talking about is the longer-term plan for Bolton, yes. within their portfolio? Do you feel they understand markets enough? Mr Hirst: It is a slight mixture, actually, because in Q146 Anne Main: Before you move on from Bolton, terms of operational management it is within the you mentioned an old building. Are all your markets Culture and Leisure Services Department, but the indoors, or are some of them street markets or portfolio-holder we report to is not that portfolio covered markets? Could you say whether, if there is holder; we do report market-specific issues to the any one that is particularly successful, is part of the portfolio holder for Regeneration and Economic place where it is making a diVerence? Development. So, in that sense, a lot of it boils down Mr Veigas: All of the venues, at the minute, are to the individual members of cabinet and what they indoors, but the district markets need to be, in my champion. At the moment, we have got a reasonable opinion, outdoor venues and they need to be run on success rate in the Regeneration portfolio-holder a more ad hoc basis and be in sympathy with the championing markets. The previous one to this client base that exists. So, for example, Horwich and current one and the current one is getting more and West Horton, which are two of the towns in the more interested in the role of markets within the Bolton borough, have got quite aZuent wider regeneration position within the council. communities, but those communities are working five days a week, so to get the best out of that provision we need to look at demountable units in Q149 Anne Main: From what you have just said, at the town centre that have 65 per cent walk-in the moment it does sound as if it is more by patronage. Horwich is an example, right next-door happenstance than design. You may have interest in to a park, so the way we are looking at this is that the market, but all these portfolios seem to go across when we do close down the existing venue we move this particular remit. If it is not going to be that service into the town centre, look at Saturdays happenstance, is there anything that could be set up and Sundays and look at the role of the park more, in terms of guidance to local authorities about how so that we get added value from the portfolio itself. they should be considering markets? Processed: 17-07-2009 23:04:40 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG2

Ev 26 Communities and Local Government Committee: Evidence

24 March 2009 Mr Tim Hirst, Mr Malcolm Veigas and Mr Nick Rhodes

Mr Hirst: I think it is access. The expertise in Q152 Anne Main: I would quite like Mr Hirst’s views managing markets is with the markets manager, but on that, please, as well—how important you think it is that access from the expertise to the portfolio- the role of the market manager is and whether or not holder and to the cabinet, and we have had that with you think there is enough expertise and confidence in some success over the last year, to the extent that we the market traders liaising through the market do have a champion, to some extent, in the leader of manager with the council or whoever they have got the council, who is very supportive of the markets to talk to? service. Mr Hirst: A lot of the comments from the last half- hour were probably around whether there are strong Q150 Chair: Mr Rhodes, we are not asking you as market trader operations as well, and I think if there much because we have been with you all morning, is a strong group of market traders that the markets but this is the bit that is on the record. manager is working with then there is more debate Mr Rhodes: To which question? and there is seen to be a joint role in the operation of markets. In particular, during the current economic downturn, we have a policy, as most councils do, to Q151 Anne Main: The role. As you say, you have got help small businesses, and markets are no exception, your role as a markets manager with your input, but in the sense of not passing on the whole of the costs there have been criticisms about the level of how well and service charges and also to provide, wherever people get on with the markets manager—I am not possible, opportunities for less expensive, easily saying yours. Could you tell me how important the accessible test training opportunities for new ideas, role of the markets manager is in terms of giving you new enterprises, in partnership with that the information that you need to know to build a regeneration portfolio. So I think, really, the strategy for your markets, as well as where you put expertise of the markets manager and the markets markets in the portfolio, and why you have got it operation is absolutely fundamental in that being a there? success. However, in a strategic role, back in 2003, Mr Rhodes: I will answer the last question first. The when Malcolm was putting together a strategic plan, markets within Leicester have been situated in a the access that the person running the markets then, number of departments, actually; we have been in a director, had to a portfolio-holder to get that Property, we have been in Culture, we have been in support right through to the higher levels of local Regeneration and we have been in a department government, the cabinet, to accept the strategic plan called Commercial Services, which is all the which said: “This is where we are going to reposition cleansing and landscaping and city catering, etc. So, markets; it is going to have a policy around speaking from experience, and quite wide experience reinvestment; we are going to look at specialist of where we have sat, I would say Culture is probably markets and move in a diVerent direction” was the best location for us because (a) it gets away from supported at the highest level in local government, the fact that markets are seen as a cash cow—it is not but it came from the expertise in markets necessarily a commercial venture, it also covers management and the appropriate communication wider issues than just purely finance—and (b) there and routes through to the cabinet, basically. is a lot of synergy between markets and culture in the community. People have been talking about the success of markets and what makes a market Q153 Anne Main: So in your council you could not successful. The main thing, in my opinion, other possibly imagine a market trader turning up one day than location, is that a market needs to fit the and finding something stuck in the middle of what demographics of the area, and if the demographics should have been his pitch? are not in kind with the market then the market will Mr Hirst: I would not expect it to happen but I not work. So it is the softer side of the element which would not comment. makes the market successful, and Culture is probably the best fit for me. The second question is Q154 Chair: Can you turn it round? How important about market management. You will find across the to the overall policy of your council are the markets? country there is a great deal of diVerent expertise Mr Veigas. across the local authorities. I would say it is probably Mr Veigas: In my submission I gave a case study of a no coincidence that the better markets in the country presentation that I had done to a policy development are operated by the more experienced managers, and group, which is an all-party group that looks at that, coupled with councillor support, enables you policy development, and for this particular occasion to have a very successful market or as much of a it was the markets service. In there I highlight the five successful market as you possibly can get. A lot of priorities that the council has—in terms of strong, markets are, shall we say, treated poorly by local safe and confident, cleaner, greener, achieving and authorities, they do not recruit the right people prosperous—and I highlight the way in which the (possibly, they do not even know how to recruit the markets portfolio can add value to each of those right people—market management is a skill, and areas, not just to those areas per se but by joining up people have lost sight of the fact that it is a skill), and activity and collaborating with other departments— it has to be nurtured along, and it just does not whether it is regeneration, whether it is children or happen overnight. You have to react to the outside adult services, or whether it is Bolton NHS. I gave world as well, and if you are not skilful enough and examples of how that can work; for example, we are you have not got that experience then there are going in the process of putting a new demonstration to be problems ahead. kitchen into our indoor market hall, into the food Processed: 17-07-2009 23:04:40 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG2

Communities and Local Government Committee: Evidence Ev 27

24 March 2009 Mr Tim Hirst, Mr Malcolm Veigas and Mr Nick Rhodes area, and that demonstration kitchen will be used on it neither of them? Even more important, what a monthly basis to celebrate local communities and legislation or regulation changes—particularly, diVerent foodstuVs—for example, the Chinese New licensing, planning, etc—could be introduced? Year and we did potato and leek soup on St Patrick’s Could some be cut out and some new ones come in? Day, and so on. In addition to that, we will be Mr Hirst: I am not an expert in the legislation of it looking during the school holidays to use that venue but in terms of what central government could do, I to sample new school meal menus, so as and when think it is a step up along the same lines as local kids come in we will ask them to test whether or not government—not necessarily a minister for markets, the menu that is coming in in September is going to or something like that, but to raise the profile of be worthwhile or not, as an opportunity. Working markets in that wider regeneration agenda. In the with the NHS, we have an opportunity to invite same way that central government has raised the people from deprived areas of Bolton to come in profile, in the work they have done over the last and, basically, do some domestic science on site—so couple of years, on, say, creative industries, it has flip a pancake, as we did on Pancake Tuesday. There really given it a boost and it is a really important part are an awful lot of other, practical examples of how of the economy and growth now, and I think to the markets portfolio will add value to all those follow a similar line to that, raising the profile and agendas, particularly in narrowing the economic the value of markets in the economy—minister or and health gap. not—would be the role, for me, to advocate to Mr Rhodes: The other sort of spin-oV from the central government. market, obviously, is there are a lot of local people Mr Veigas: A really simple and practical example that are working within the market. Most of our would be the Change for Life campaign that is traders are coming from within a five- to 10-mile currently being underwritten by the Government in radius of Leicestershire; that money is usually terms of the health agenda. If within the nuances of retained within the community, so that is poured that ongoing campaign over the next 12 months, or back into it. Also, what we are seeing, at the whatever, more and more reference could be made to moment, because a lot of businesses are struggling the markets generally—in terms of low-cost food and making redundancies, is that the markets are a staples, alternatives to go away and change your great vehicle for trying a new business themselves lifestyle not just by buying there but going to market and to generate their own income. A lot of people are once, twice or three times a week and doing it by coming in to being self-employed and looking for foot, etc., is a really worthwhile way and you can markets as a vehicle to do that, and that is what then subliminally get that message across, in terms of the bigger picture message in terms of health markets are about, really—giving young people and generally—that would be really useful and it would others the opportunity to trade and, hopefully, to not cost any money. In terms of some of the other grow the business. issues, we have got the planning regulation, which is Mr Hirst: Can you remind me of what the question okay. Something that stiVens that up would be really was? useful, in terms of making it more meaningful and more advantageous for councils to look more Q155 Chair: The question was how important benevolently at urban use dwell-time space, so the markets are to the overall policy priorities of your idea or the concept of an open-air space that you see council. in European cities all the time, but that they seem to Mr Hirst: The importance of the markets fitting into animate quite easily and quite quickly because they the department that it does at the moment, in have not got some of the clutter. It is the idea that we Bradford, is how we can build the markets service give, perhaps, planning some guidance about how and where it fits in terms of commercial services into that urban dwell-time space could be better used. In the overall strategic plans of the authority; the terms of alternative service delivery models, there is corporate plans and the district plans with the wider everything from the arm’s length, independent partners. We have done as much as we can to build organisation to a wholly-owned company that we the markets, in the sense of what it gives to the are currently looking at, as an industry, to see what economy in the prosperity and growth of a district, might or might not work best, and it may well be that but, also, what it gives to the social cohesion aspect. the markets portfolio has to sit with other services to My role, really, is making the strategic case for make that overall, wholly-owned company work markets, backed up by the successful operation of better in terms of critical mass of turnover, and that markets. So I think it is the strategic case, as Nick might be one of the ways forward that we might has said; it is not just about making a profit, but it is think of—for me. helping economic growth, it is helping the local Mr Rhodes: As Malcolm has just said, we fit into economy, but it is adding to that culture a sense of quite a lot of the government departments, and place and the social cohesion aspect as well, as well maybe to have one minister would probably not as spin-oVs to education and what-have-you. It does work. Maybe a champion of some sort that could co- tick a lot of boxes in terms of corporate priorities. ordinate the attributes that the market has would be far better and probably far more suitable than anything else. Q156 Sir Paul Beresford: Just the same follow-on as Chair: I think Anne suggested a market Tsar! I was asking previously; one of the previous witnesses wanted a minister and the other one Q157 Emily Thornberry: I want to ask Malcolm wanted what I will summarise as a quango. What do something about the answer that he gave—there was you, as the operators, think would be suitable, or is a bit I did not understand. I think you were saying Processed: 17-07-2009 23:04:40 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG2

Ev 28 Communities and Local Government Committee: Evidence

24 March 2009 Mr Tim Hirst, Mr Malcolm Veigas and Mr Nick Rhodes something about the fact that on the Continent it because what that does is make them think of a was easier for them to animate the public space, or European-style model of service delivery for the something like that. centre of any particular town, as an example. Mr Veigas: I, as probably everyone in the room has, have been lucky enough to visit European cities. If Q160 Chair: Just to make sure we have got it, you are you go, for example, to Barcelona everyone will go not suggesting that the Government should say: to the Boqueria or will go to St Anthony’s or will go “You must do this”, but would just say: “When you to one of the others. They have got 46 markets for are considering this space in the middle of the town, 2.75 million people in Barcelona; 40 of them are food think it could be used for: . . . ” and then give them markets. The legislation in Catalonia says that you a long list, which would include a market? Is that it? can only have supermarkets within indoor market Mr Veigas: Basically,yes. It would not just simply be venues, and even then they can only be 7,500 square a planning or a transport process that you are asking metres in size, and even then only sell certain types the local authority to do; it is something that adds, of goods. That means that they create a way of living in overall terms, value because it can make that (which is not for everyone, obviously) that sustains space do something else, as well as being a transport the local economy, in terms of everything comes to route in any one particular situation. It is like using market once, two or three times a week, and 40-odd a lamp-post: a lamp-post is a lamp-post until you put street markets for just under 3 million people is going a banner on it or until you put a back-lit advert on some in terms of making sure that that local it, and then it becomes an income stream. The economy sustains itself. That is what I meant. principle is pretty much the same, is it not, and I think that is what I am trying to say. Q158 Emily Thornberry: I think that is quite a strong example, but it is one we have already heard. Can Q161 Anne Main: You gave a wonderful list of you think of another one, so that we do not just talk markets, and I would love to go and see all of them, about Barcelona? but they were all abroad. Do you think—and you Mr Veigas: We can, yes; we can talk about Rungis, probably could just sell yourself as a tourism oYcer which is a wholesale market outside of Paris, we can for those places—we promote our markets enough? talk about Turin, which is the “bread basket” of Would there be people sitting over in Amsterdam Piedmont and we can talk about Dappermarkt, saying: “Gosh, I really have to go to Leicester/ which is in Amsterdam. There are opportunities all Bradford/Bolton market”, because there are all over Europe. Taking Dappermarkt as an example, it those wonderful things on oVer that you have just suVered an awful lot from red light syndrome a few described over there? years ago, and it still reverts back to that at night- Mr Veigas: Yes, there would be, and in 2004 and in time, but during the days, when the market is on, it 2006 that is exactly what Bradford did; they installed becomes something completely diVerent, and it a mile of market stalls and we got European traders becomes something that the whole of the community from 12 or 15 diVerent countries to come and trade really, really enjoys and values. The issue is about there for four days. I think you asked whether or not saying: “Okay, it is this space on one or two days of traders go abroad. There is an organisation called the week, but when it is not that, when it is the “Traders Abroad” who do exactly that. So whilst we community enjoying itself within a market have got cohorts coming over here, predominantly environment, what can the local authority do and at Christmas and for continental markets, we have how can central government help them to the archetypal Englishman abroad in terms of a list understand that the best way of animating that space of products that sit within continental-style markets is to do this, this and this?” in Florence, as an example, or in Rome.

Q159 Emily Thornberry: Our question is what? We Q162 Anne Main: I was not really thinking of the understand about Barcelona, so what is it? If you market traders swapping; I was thinking of people give us another example of another market which visiting us as destinations. Are you happy that the you say is successful in animating public space, what markets in the UK are promoted enough for people is the diVerence? What is it that we should be doing? to want to go to see them? Mr Veigas: In terms of a planning suggestion, it Mr Veigas: No, I think we could do better with would be a listing of things you are planning to do. (I promotions, generally. If we were to better use the think you were talking about a complete, wholesale food TV station, that would be really useful—if we reworking of the centre of a city.) Take the “A Park had our own TV station that would be even more at the Heart” programme, which is for the centre of useful. We are looking at aggregating up advertising Bradford. Part of that process—it is already in revenue, so in the North West, for example, Wigan, place—is to tick-list what exactly that public dwell- Warrington, Bolton and Bury are coming together space would be used for. If that same tick-list was and using local advertising in television to try and available to the whole of the country to those increase footfall. The other thing is attaching it to planning departments, through a directive from the food festivals, and that is where the tourism Government that said: “You will look at what this operation really starts to bring big dividends. space is over and above what you think it should be”, Mr Rhodes: I think there are certainly pockets of which is to take people from place A to place B, then good promotions within the markets industry, giving them that alternative view on what that space locally, but I think it is fair to say that nationally the should look like, that would be really quite useful industry is not very well promoted, for all sorts of Processed: 17-07-2009 23:04:40 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG2

Communities and Local Government Committee: Evidence Ev 29

24 March 2009 Mr Tim Hirst, Mr Malcolm Veigas and Mr Nick Rhodes diVerent reasons, mainly finance, but it could the way they promote what they do. I think the wider certainly raise the profile by organisations coming visitor economy is something the markets could together and actually promoting the markets make an impact on. industry as a whole. It is something that is very sorely missed. Mr Hirst: If I could just add, it is not just about the Q163 Chair: Thank you very much indeed. We are market promoting itself, either; I think it is thinking doing our best, as you have seen, to promote about—going back to Malcolm’s point about using markets and, hopefully,our report when it comes out city centre space as animated space—the wider will be another peg on which publicity can be hung. visitor economy. Markets are not pushed well on a So we would be more than happy for everybody in UK basis but they are not marketed well even on a their diVerent localities, when the report comes out, regional basis. So, to go hand-in-hand more with, to make as much mileage as possible out of it. Thank say, tourism and the visitor economy operations you very much for your contributions. across regional and sub-regional areas, there is no Mr Veigas: Thank you. reason why markets, as much as other attractions or Chair: Thank you very much to Leicester for major events, could not be much more entwined in organising the whole day. Processed: 17-07-2009 23:05:22 Page Layout: COENEW [SE] PPSysB Job: 428788 Unit: PAG3

Ev 30 Communities and Local Government Committee: Evidence

Tuesday 31 March 2009

Members present Dr Phyllis Starkey, in the Chair

Sir Paul Beresford John Cummings Mr Clive Betts David Wright

Witnesses: Mr Michael Felton, Michael Felton Associates, and Mr Jonathan Owen, Quarterbridge, gave evidence.

Q164 Chair: Good morning. We have a lot of cash cow over the last 30 or 40-odd years. They have witnesses to get through this morning so do not feel not got a structured reinvestment policy into their obliged to repeat things that the other witness may service, they have not got the capital investment in have said if you agree with each other, if you could there and as a result the competition, which plays by focus on the areas of disagreement. Both of you seem a diVerent set of rules, which have been investing to be quite pessimistic about the future of markets. heavily, which have been borrowing and investing Could you briefly say why you think markets are in and improving the product and their attractiveness decline and if you think there is a diVerence between to their customers, have overtaken them. diVerent types of market and their future prospects? Mr Owen: Fundamentally the markets are in decline because of increased retail competition and retail Q168 Sir Paul Beresford: You sound so pessimistic. consolidation and a lack of capital investment and Why would they invest if they got nothing out of it? improvements by market owners, who are primarily Are they going to get anything out of it? local authorities. Mr Owen: I think there are a lack of business skills often amongst local authorities and a lack of a commercial approach towards evaluating the Q165 Chair: Do you agree with that, Mr Felton? options that are open to them. From a commercial Mr Felton: I agree with what Jonathan has just said point of view, I am always looking for a return on but I think it is also the case that the incoming capital invested. From a local authority’s point of number of traders has declined quite a lot over the view, often they regard the market service as being past years. Young people do not wish to follow their more of a community provision or something that parents in their occupations. They see better chances we have always done. There has been a lack of focus and a better form of livelihood outside the markets. in terms of why many local authorities are actually If you go around most of the markets in this country providing the markets. you will see the traders are getting older and older Mr Felton: I think the question you have just put and older. The excessive competition that Jonathan strikes at the heart of the need for a market. The has already mentioned is across the board entirely. question is perhaps why does one need a market? Many of the discounters and supermarkets are Why should one continue to support it? There is a selling non-food products and that seems to be great deal of community cohesion that is needed in spreading, which hurts the market traders and this country, especially in the small towns. It is a clothing and footwear particularly very much. great provider of direct and indirect employment and it is also an earner in most circumstances for the Q166 Chair: Some of the markets we have seen do local authority. Markets are here traditionally. I am provide an outlet for traders who are meeting the not saying that tradition is written in stone, it needs of the more diverse communities that have certainly is not, but without some markets in those moved into areas. Do your views about a lack of new smaller towns, perhaps on a Wednesday or a traders apply across the board or not in some areas? Saturday or one day a week, those towns would be Mr Felton: I would say it applies almost across the very much poorer without it. board. It is diYcult to say exactly why it does, but that is the experience of going round the countryside, the intake is simply not there. There is Q169 Chair: The point that you have just made also a question of lack of capital that seems to seems to apply specifically to small countryside continue and capital support, overdrafts and things. communities. Do those arguments equally apply in cities? Q167 Sir Paul Beresford: You have both mentioned Mr Felton: Yes. I have already said in my submission a lack of capital from the owners, which you said are that the Saturday market in a small town, large predominantly local government. Local government village or whatever with a population of is under pressure too. Why should they invest more 8,000–15,000 is at risk. Unfortunately from a market capital in what you say is a dying market? point of view, people will go elsewhere for their Mr Owen: I think it is fundamental to any business, principal shopping. The key number of food if you want to maintain your competitive edge, that suppliers within markets is falling. It is my view— you have got to reinvest constantly in your business. and it has been for some years—that a market Unfortunately, in my experience most local without a greengrocer is not a market. One can see authorities have treated their market services as a going round the markets that where there used to be Processed: 17-07-2009 23:05:22 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Michael Felton and Mr Jonathan Owen two greengrocers there is now one and very often the Mr Felton: Yes. produce simply cannot compete with the nearby John Cummings: I am referring to the area in which supermarket on the edge of the town. I live where brand new shopping centres now encourage continental markets to come into their premises with no involvement at all from the local Q170 Sir Paul Beresford: What markets are authorities. I am not quite sure what you are succeeding? Farmers’ markets? referring to. Mr Owen: I think farmers’ markets, specialist markets are succeeding, but it is not day-to-day essentials which they are selling. The prices on most Q174 Chair: Are you suggesting that continental farmers’ markets are considerably higher than on markets and farmers’ markets are used as a kind of what I would call a general regular market. They are loss leader either by shopping centre management or a destination, a leisure activity on a Saturday once a by local authorities to bring people into a shopping month or a Sunday once a month. They are not centre? providing day-to-day necessities for most household Mr Owen: Absolutely. There are one or two of the shoppers. better continental market operators, I will not mention names, who will be quite clear and quite open with you and they will say, “I am not going to Q171 David Wright: Are there spin-oVs for ‘Mudthorpe on Sea’ unless I am paid £X thousand mainstream markets that come from specialist by the local authority to stand there.” On the other markets being in the same area? Are there examples hand, if they were oVered a prime pitch in the middle where you get a specialist market that ties into of an extremely vibrant town then they would pay a another market and boosts trade maybe once a rent to the local authority to go there. The problem is month? What are the spin-oVs? that there are relatively few what I would call quality Mr Owen: Certainly part of a strategy to run a continental market operators. It can be a perfectly successful market service if you are a local authority justifiable decision to subsidise continental markets is you need to recognise that a specialist market will to come into your town centre, possibly as part of a not provide the day-to-day shopping, because of the town centre promotion or events programme, to prices and the periodic nature of the farmers’ increase footfall in the town centre and that is a market, but they are very useful to complement and perfectly legitimate use of taxpayers’ money if it is to increase footfall at specific times of the year and to voted through the council in that way. There is a increase awareness of the fact that there is a general recognition at the same time that continental and market there for the remaining four or five days of specialist markets generally speaking do not make the week. money for local authorities. Mr Felton: I agree with Jonathan that the question Mr Felton: To some extent I would regard the of increased footfall is absolutely critical. One continental market as an annual or biannual star particular light on the farmers’ market is that they turn. They are very attractive. People come from a make no profits for the local authority as such, they long way away or outside of the normal catchment are all heavily subsidised. I am currently engaged areas and enjoy themselves as do the traders. They with a medium-size town project and having catch the headlines. Good luck to them! That is fine. analysed the figures for costs, income and various expenses for the farmers’ market, it has been carried out at an enormous subsidy, thousands of pounds Q175 David Wright: One of the drivers behind annually. One wonders if there is a point at which farmers’ markets in particular is the promotion of local politicians will say enough is enough. Whether local produce. If you are using a farmers’ market in they continue to have to subsidise it is of course that way to promote local suppliers is it not a their choice. problem for market traders generally because does that not send the message out that your normal market does not do this? It is an open question. I am Q172 John Cummings: How do you account for the trying to understand how you would combine the huge success of continental markets which are now two. appearing on a very regular basis in huge shopping centres? Mr Owen: There is a tension between open market Mr Felton: Continental markets have their own traders and indoor market hall traders. There is particular uniqueness. They are very popular. They another tension between open market traders and are very successful. Again the local authority tends continental markets. They are turning up on the best to subsidise them by charging a relatively low rent days and saying, “They’ve been given the best days. but paying for substantial advertising costs and for They’re pinching all of our business.” There is a supplying things like electricity and water. The friction between them and farmers’ markets whereby continental attitude to markets is of course quite they say, “I don’t know why the council is bothering diVerent from what there is in the UK. doing that. They are giving that space to them at a concessionary rent which they do not give to us who are paying the day-to-day bills for the council.” Q173 John Cummings: Are you saying that local There are three or four completely diVerent authorities subsidise continental markets in private businesses there and you have to understand the shopping centres? drivers behind each one of them. The drivers behind Processed: 17-07-2009 23:05:22 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Michael Felton and Mr Jonathan Owen continental markets is the guy out there who is competition with the private sector and you have to making a living by delivering to a council a dozen or adopt the same techniques, whether it is two dozen or whatever it is specialist users and his reinvestment or training and management skills or revenue comes from either the subsidy, which promotion, and unfortunately they are falling down eVectively he is paid by the local authority, or the on that. money which he derives from his traders. They are completely distinct things. The market is this single word which encompasses a range of diVerent types Q178 John Cummings: What do you believe local authorities should be learning from the private of business. sector in running successful markets? You are being Mr Felton: If I may say so, I think to some extent we quite specific and very damning of local authorities. may be misleading ourselves by concentrating on Give me some examples of highly successful private these so-called specialist markets. My main concern markets. What can we learn from them? is the smaller market town and the smaller open Mr Owen: The first priority is whether or not you street market. These are the ones which I see in can get past the budgetary pressures on a local distinct danger and are still currently very much in authority which enables it to promote the market. decline. Large markets, particularly in the north- west and north-east and the Birmingham conurbation in this country, the big indoor markets, Q179 John Cummings: Assuming that they have will certainly survive. They are very well managed. I passed all of those hurdles, what can local am not worried about them. Time and time again authorities learn from the private sector? when one goes to the smaller places you see nothing Mr Felton: There has been an increasing trend over but problems occurring there, i.e. a lack of traders or the past eight or 10 years for some of the smaller one week suddenly the greengrocer vanishes and local authorities that have one or two markets within stays away. That is where I think the greatest loss to their jurisdiction to outsource it, to privatise it, that our traditional market and our heritage aspect on is why they are called private markets. They will then markets will in fact be suVering. That is where all let it on a short-term licence, a three-year licence or those things that Jonathan has mentioned, local a short lease to what is known as a private operator. authority support and it may even be central The diVerence there is quite considerable because a government support and investment, are required. private operator is driven by the profit motive and in order to get the required profit he has got to run a decent market that actually makes sense. Q176 John Cummings: Can you tell the Committee what you believe local authorities should be doing to Q180 John Cummings: Can you give me some promote and ensure the survival of the markets? examples of these, please? You are being very specific Mr Felton: I think the short answer is pay up. in damning local authorities for the way in which they operate the markets. I am asking for some specific examples of where the private markets have been more successful in their operation. Q177 John Cummings: Pay up what? Mr Felton: One I can immediately think of is in Mr Felton: For investment. One of the diYculties Congleton in the north which is let out to a well with a small town is that you do not get local known private market operator, which is successful, management. You do not get one oYcer in charge of so much so that the local authority has let it out for the market. Those who are in charge of markets are quite some while. I think there is also one in often multi-functional; they have more than one Waverley. thing to do during the week. It needs dedication, it needs a proper approach to things like publicity and it means the obtaining of new traders, sorting out the Q181 John Cummings: What have they done? What market and getting the right type of person to run it. makes them successful? What examples can you give This is a local authority problem. It depends upon the Committee? the political will to some extent or the will of the Mr Felton: I am not trying to hedge it. You are permanent oYcers to keep it going. It is lower down throwing questions at us which are perfectly proper. on the priority of a town council or district council They are successful because they have a dedicated in many cases. man known as a “toby” in charge of the market who Mr Owen: I would certainly endorse that. In my is employed by a private operator. He probably experience local authority oYcers are very well works something like five markets a week, moving intentioned, a lot of them are extremely dedicated from place to place. His sole occupation in life is to and they are doing a very tough job, but in this set up a market, get it advertised, get the traders in, particular instance they are up against commercial interest the public and get the thing working, and for pressures which, quite frankly, often they are not that he gets a salary and a bonus depending upon trained to respond to. Local authorities are generally turnover. If you contrast that with the local very good at regulating situations but rather poor at authority, where in many cases local authorities, the exploiting business opportunities. In this particular hierarchy, have so many interested in the instance, running a market is like running a performance or non-performance of the market, it commercial operation where you are in direct turns out to be quite diVerent. It is simply a Processed: 17-07-2009 23:05:22 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Michael Felton and Mr Jonathan Owen commercial approach. Additionally, what may Mr Felton: No. Traders are individual characters appear to be a small matter but I consider quite and they are only concerned with their own trade important is the question of publicity. A private and not necessarily the chap that is selling something operator will spend a lot more on publicity to get the next door to them. people and the traders in than the local authority. Q188 John Cummings: Have they got no interest in Q182 Chair: You mentioned a private market in making sure that the market they are attending is Congleton and Waverley. Where is Waverley? actively promoted themselves? Mr Felton: Waverley is in Surrey. Mr Owen: No. With all due respect to market traders, a lot of them are remarkably poor at promoting their own businesses. They take the fact Q183 Chair: Are these quite aZuent communities? that there is going to be a market there as an Mr Felton: Congleton is perhaps not. The one in assumption and they assume that the £5 a week levy Surrey is perhaps more so. or whatever it is that they pay towards advertising and promoting that market is suYcient. If you were Q184 Chair: What sort of market are they? Do they a private retailer you would be ring-fencing a have the greengrocers which we would think of as a significant proportion of your gross receipts in order traditional part of a traditional market or have they to reinvest in your business and promote your gone more to the craft, upmarket end? business and develop your business. They do not, Mr Felton: No, it is a generalised market. They will generally speaking, do that. They regard the rather have greengrocers and cheese vendors and sell bread feeble eVorts of local authorities to promote the and things like that. markets as being suYcient to promote their own businesses and that is a failure on the part of the traders as much as a failure of the councils to ring- Q185 John Cummings: Are you saying that the fence a proportion of the monies. private operators focus more on short-term financial gain rather than on the wider community benefits of markets? Q189 John Cummings: Is it not a matter of better co- Mr Owen: I would say that is almost inevitable, yes. operation between market traders and the council to The first priority of any private market operator is to promote a specific market? With council owned secure a reasonable return to enable him to pay the shops in a retail centre, to a large degree those shops rent or the partnership fee or whatever to the local are responsible for advertising their wares. Ought authority. The second tranche of his income he not the same principle to be applied to market would be prepared to share with the local authority. traders? The issues of social provision, of having relatively Mr Owen: It could be applied by all means, but you low rents for the stalls in order to attract more have to bear in mind that if we are talking about traders, are of less importance to him than actual open markets, eVectively a market trader is in the cashflow. I believe there are some local authorities nicest sense of the word itinerant, they move from where there is an agreement between members that market to market, they owe no loyalty to any they will not “rinse” the market for every penny that particular market, their loyalty is to their they can get out of it in order to make social profitability. They will move to wherever they feel provision for people in less aZuent areas. There is an that the management has enough nouse to promote understanding rather than a written statement of the market. You cannot underestimate the policy often amongst members that this is the way importance of stimulating what I call investor that the market will be run. That is a perfectly confidence amongst the traders that you have got a legitimate political decision to make according to the market manager who knows how to play the game, particular circumstances. who knows how to promote the market and who knows how to go out and find new traders. The issue is very complex. The theory is fine. Yes, the traders Q186 John Cummings: How do you believe the should be working with the management to promote marketing and the promotion of markets could be the market. In reality,they should be working harder improved? to promote themselves first and then the market and Mr Felton: The promotion of them by local the market manager should be relying on his own authorities certainly needs improving. It is no use eVorts. putting a weekly or monthly advert in the local paper which never changes, it is always in the same Q190 Chair: You are talking about the good local position and tells you absolutely nothing, there has authorities. Does it make a diVerence if they have a to be a change of direction as to how markets can be town centre manager, for example, who is also improved. I have a list of techniques that one would responsible for markets? advise clients on to improve their market, obvious Mr Felton: Yes. The stage has been reached where I things like leafleting, special lottery draws, special think there is a diVerence. The Retail Market days for old age pensioners, et cetera, and this is Alliance has recently been set up. The Association of never exploited by local authorities. Town Centre Managers is one of the constituent bodies along with the National Association of Q187 John Cummings: Is it exploited by the market British Market Authorities and the National Market traders themselves? Traders Federation. This is starting to make a Processed: 17-07-2009 23:05:22 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Michael Felton and Mr Jonathan Owen diVerence. This certainly means much more co- south of England where there are more private operation with a town centre manager who is now markets as opposed to the north of England where almost urged to play it as part of his jurisdiction. the traditional markets are in much greater force and run by the local authorities. Q191 David Wright: Could you quickly tell us about the impact in terms of wholesalers? Obviously large Q193 Sir Paul Beresford: Could you give quick supermarket chains are potentially undermining the thoughts to legislation and regulation? We have had ability of traders to purchase what they need from complaints, for example, about the London Local wholesalers. Could you tell us what the impact of Authorities Act. What changes would you suggest? that is? Mr Owen: I was sitting yesterday morning with the Mr Owen: Several of the traders I have discussed this highways oYcer and the legal oYcer of a certain issue with are having trouble buying because the London borough trying to work out ways to get wholesale chain has shrunk to such an extent they round the London Local Authorities Act because are finding it diYcult. One of the more successful without it the market could not be improved. The traders that I know in January/February goes oV to London Local Authorities Act is a major constraint the Far East and he buys his product directly from on the ability of any London local authority to the factory, he does not wait for the wholesale chain improve their market’s operation. in the UK to start stocking it. He gets a six or 12- month advantage over his competitor rivals. Q194 Sir Paul Beresford: Would you be able to write to us and tell us what changes you think should be brought in? Q192 Chair: Is that a clothing store? Mr Owen: Certainly. Mr Owen: No, it is electronics actually. Mr Felton: I certainly recollect, as a member of what Mr Felton: The average small trader simply does not was called the Association of Private Operators, that have the capital behind him or the means to we had an interview with Angela Rumbold, who was ascertain where he can re-supply his own goods at a then a junior minister at the Home OYce, when the price that he can aVord. He does not have the money London Local Authorities Act was being drafted. to buy in quantity and has nowhere to store it. These We made a number of suggestions and she explained people are often living and working from a flat or a to us very nicely the diYculties in getting it home and they have got to keep the stuV somewhere, absolutely right. We pointed out to her that some of so they cannot buy much in advance. The medium- these provisions simply would not be fair nor work size wholesalers that still exist will give generous eVectively and it turned out that we happened to discounts but you have got to purchase several be right. thousand pounds-worth at a time. That is not always possible for a lot of the average traders that are still Q195 Chair: Mr Owen, if you could send us a note around. Mr Cummings was asking about examples afterwards with very specific ways in which you of markets. Certainly at Rushmore, which is the think it should be changed that would be very Aldershot area, Chichester, Farnham and Arnold in helpful. Nottingham there are private markets. There is Mr Owen: Certainly. I will do that. something significant there. A lot of those are in the Chair: Thank you very much.

Witnesses: Cllr Melvyn Teare, portfolio holder for Culture and Heritage, St Albans District Council, and Cllr Robin Bowen-Williams, Chair of Finance and General Purposes Committee, Bletchley & Fenny Stratford Town Council, gave evidence.

Q196 Chair: May I welcome both of you. Can I ask Q197 Chair: There is no need for both of you to that in your responses to questions you try and repeat stuV which is in the written submissions concentrate on the experience of your own market because we know that. I think we are more interested rather than generalising because we have had lots of in teasing out what the key factors are that lead to other witnesses who have talked about markets the success of your market. generally. I think what we are hoping to do in this Cllr Teare: One of the key successes is the marketing session is to explore your lessons from your own and promotion that we are undertaking with the particular markets rather than any kind of general market. Another is the capital investment that we ones. Do you believe your market is thriving or in are prepared to put into the market. I have got decline, and why it is either thriving or in decline? £50,000 of capital expenditure allocated for the Cllr Teare: I believe our market is actually thriving. forthcoming year in order to look at improvements It is a local authority-run market. It consists of a to the market stalls that we provide. We provide the Saturday market, which has up to 171 stalls, and a infrastructure that is brought out at four o’clock in Wednesday market, which has up to 141 stalls. It is the morning on Wednesdays and Saturdays. So a street market which operates on our primary when the market trader comes in the stall is already frontage within St Albans city. The market itself has provided for them, they just have to bring their been in existence, history says, for about 2,000 years. goods in. We also provide free car parking for them. As a local authority we gained a charter back in 1553 We provide refuse and waste recycling. We do have in order to be able to operate it. a tendency to look after the market traders. Processed: 17-07-2009 23:05:22 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Cllr Melvyn Teare and Cllr Robin Bowen-Williams

Cllr Bowen-Williams: The response to your own Q202 Chair: How much money does the town question would be that I fear the very structure of the council put in? market is in decline. Could I ask a question? What Cllr Bowen-Williams: In 2006–07 we took about has been meant by the local authorities? What are £45,000. local authorities as the questions are asked? Q203 Chair: How much do you put in? What is the Q198 Chair: Councillor Bowen-Williams, you know expenditure? We know what the income is. perfectly well what the local authorities are. If you Cllr Bowen-Williams: That is what I am trying to want to make a point about the role of the town move towards. I would say in very general terms it is council versus the unitary authority then feel free to £35,000 in the year in profit. make it. Cllr Bowen-Williams: I think that is the point I would particularly want to make, especially after Q204 Chair: We have not actually got the answer. what has just been said about a district council Do you mean £35,000 profit? paying for the cleaning up. In Bletchley, as you are Cllr Bowen-Williams: No. well aware, about four years ago the Milton Keynes Council Unitary Authority decided, “Right, that’s Q205 Chair: What is the expenditure? it; we’re going to scrap the market.” As a town Cllr Bowen-Williams: Call that £10,000. It is £6,000 council with only a town precept to support us, so no in the following year and in 2008–09 it will, I am funds of money, we decided it was important for our quite sure, end up not making a profit. local community to maintain this market. I would not dream of claiming 2,000 years of market history. Q206 David Wright: Are there any other non-council I think the first charter was in 1609 when it was streams of funding that you have looked at to described as a fair having been run since time support the market? Do you solely support it? What immemorial, which I think takes us back to the reign other organisations potentially are putting cash into of Edward I. Certainly there is some evidence within the market? Have you looked at those options? the same area of there being a market in the 13th Cllr Bowen-Williams: No. I would agree that that is Century. something we have not explored. Q199 Sir Paul Beresford: So if your market is in decline, was Milton Keynes right? Q207 David Wright: I think many people see the Cllr Bowen-Williams: There have been other markets as a focal point for partnership working. Do changes. In the first two full years in which it ran it you use them in that way? Do you try and build on was sustainable. One reason is because the expenses partnership working locally through the work with incurred by a town council are quite dramatically the market? less. We now have—and he is a very young and Cllr Bowen-Williams: I suppose I have just touched enthusiastic young man—a “toby”, he is not a full- on that in the sense of starting this relationship with timer but it is part of his job, and he is trying very the actual marketers. Forget farmers’ markets for hard. Many of the few remaining traders we have Bletchley for all the sorts of reasons we have touched want to see the market develop and so do we. We on. I think Bletchley is referred to in a modern argot now hold monthly meetings of traders and invite as a “UB40” area. The footfall is falling anyway and them to express their opinions and row in. the town is now poor. Equally, there are an ever increasing number of cheaper stores in the area which are attracting trade. Q200 Sir Paul Beresford: What is it costing your Cllr Teare: Certainly the partnership working as I council? see it is with the 161 traders. They are small Cllr Bowen-Williams: It has not yet fallen into a businesses in their own right. We are providing a negative quantity but I think it will by the end of this space and an opportunity for them to be able to year. We pay the national non-domestic business trade. With the full-time oYcers that we have rate on the site, which is why I personally have been working purely on markets, they are working with very interested to read the Knaresborough Market these people in order to ensure that the oVer that we decision by the Lands Tribunal, which has have within the city is attractive and increases determined that the rent on markets should be footfall. determined at 20 per cent of the rent passing and not on square footage which might be perceived in law as being available for the market. Q208 David Wright: What are you doing to develop your markets? Q201 Chair: Councillor Bowen-Williams, we do not Cllr Teare: We are looking at how we can invest want to get into that level of detail. We accept that better in our infrastructure in terms of the stalls there is £35,000 of income, as it says in the themselves. information that you have provided. How much money does the town council put in on a yearly Q209 David Wright: How much are you spending basis? on that? Cllr Bowen-Williams: I am quite surprised that the Cllr Teare: We have allocated £50,000 in terms of figures which were sent for 2008–09 come down to capital expenditure to look at how we can improve £13,000 up to the end of January. that. We maintain the infrastructure as we put it out Processed: 17-07-2009 23:05:22 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Cllr Melvyn Teare and Cllr Robin Bowen-Williams on a weekly basis anyway. There is time allocated to Q216 Chair: Is that your Saturday price? a group of people who repair and mend covers and Cllr Teare: That is our Saturday price. boards and various things like that. Not only do we operate with the Saturday and Wednesday street Q217 Chair: What about the Wednesday market, market, we operate farmers’ markets as well and we which I believe is less successful than the Saturday attract in continental markets. The whole notion is one? about increasing footfall within the city centre to the Cllr Teare: The Saturday price is £47 and the benefit of the retailers who have fixed positions in Wednesday price is £37.50. Our farmers’ market the shops. price for the same stall is £30. I was city centre manager for St Albans prior to being elected five Q210 Sir Paul Beresford: What is the balance years ago and created the farmers’ market within St between your capital and revenue input and what Albans. One of the things I wanted them to do was you get back out of it? to look after their own refuse and waste, which they Cllr Teare: The amount of money that we did and so that means we can charge less for a generate—and we are always looking to try and farmers’ market because they have learned how to make a surplus because we run it as a business—is take their waste away with them. £650,000 a year. We are looking to make a surplus in the region of about £100,000 on the operation of Q218 Sir Paul Beresford: Do you subsidise the markets within the city centre and within the district. farmers’ market? Cllr Teare: No. It makes a profit. Q211 Sir Paul Beresford: Is that surplus over your Q219 Sir Paul Beresford: What do you both do to capital and revenue investment? promote your markets? Cllr Teare: That is surplus on the capital and Cllr Teare: We do advertising in the local press, but revenue expenditure. a lot of it is very much by word of mouth. With the farmers’ market on a Sunday, it operates between Q212 Sir Paul Beresford: What do you do with the nine and two, we get a footfall of around about profits? 16,000 people and it is very much through word of Cllr Teare: That profit goes back into a general fund. mouth. People come because they enjoy the experience. We have transferred our farmers’ market from St Albans to one of our villages, Q213 David Wright: Councillor Teare, you were Wheathampstead, and it has also gone into one of implying that your markets are growing, they are our towns, Harpenden. There is a circuit that the successful. Are they in moderate decline due to the farmers’ market market traders go on in terms of the recession? How do you cope with that if they are? month and so when a person at Wheathampstead Cllr Teare: I am not saying they are growing but they says, “I would like to buy these products. Where can are not declining. We work very hard in order to I buy them next?” they are told in St Albans, maintain the numbers on the particular markets. Bedford, Leighton Buzzard or somewhere else. The customers follow the trader. Q214 David Wright: What work do you do to do that? Q220 Sir Paul Beresford: Councillor Bowen- Cllr Teare: We have a permanent group of people Williams? who come in week in, week out, but we also have a Cllr Bowen-Williams: I would agree with what has facility to oVer stalls to people who come on a casual just been said but come back to the fact that there is basis. If you look at our Saturday market with 161 a general feeling that a farmers’ market would not stalls, there are people who are working during the work in Bletchley. We would love to see one. week in full-time jobs that choose to use a Saturday market to create some additional money by coming Q221 Sir Paul Beresford: The original question was in, opening up a market stall and marketing a what are you doing to promote your market? particular product. Be it chilli sauces or whatever, Cllr Bowen-Williams: Again, the process of they are marketing that product. What we have seen leafleting, of local advertisement within reason and over the years is that people who have developed also word of mouth. their Saturday stall have then gone part-time Cllr Teare: One of the things that we have done for working and come on to a Wednesday stall. They our Wednesday market is worked with our local also go and work at other markets in other market Arena, which is an entertainment centre. One of the towns within the vicinity. things that we have been promoting is midweek matinees. That is aimed at people who come into the Q215 David Wright: And you have had to lower market in the morning, go to the cinema in the your price on those one-oV stalls over the last 12 afternoon, have tea and biscuits and so they make a months or have you kept them steady? day of it. Cllr Teare: For the first time, from 1 April we are not increasing the amount of money, but we are Q222 John Cummings: Do you think there is a case probably one of the most expensive markets for a stronger national policy on markets? If you do certainly in the south of England. We charge £47.50 agree, what specific measures would you like central for a 10-foot stall. government to take? Processed: 17-07-2009 23:05:22 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Cllr Melvyn Teare and Cllr Robin Bowen-Williams

Cllr Bowen-Williams: I was going to excuse you of Cllr Teare: Yes, very much so. My responsibility is responsibility in fact, speaking from the very bottom for culture and heritage and markets and economic tier of any involvement with an elected position. As development come underneath that. We are looking a town council, we do not really feel that the unitary at a project called City Vision and within that City authority has got very much interest—we do not feel Vision we are looking at how we can develop it has got any interest in the town but that is slightly markets over the course of the next 20 to 30 years diVerent—in the market. and there are some interesting idea coming forwards, like holding early evening markets where you set up the infrastructure on a Friday evening, it stays over Q223 John Cummings: The question was about for the Saturday market and then probably the same central government. infrastructure is used on Sunday. That way you can Cllr Bowen-Williams: Equally, by the time you get so far as the unitary authority, I do not honestly see attract in diVerent kinds of markets, be it art and what one could look to see central government do. craft, be it food based or the general street kind of markets.

Q224 Sir Paul Beresford: What about legislative changes? Q228 David Wright: Do you get a lot of pressure Cllr Bowen-Williams: I suppose they could pass from people who want to come and set up large car some legislation which said in some way the area was boot-style market activity on the fringe of the town? exempt of rating. What do you do about it? Cllr Teare: We impose our Charter Market.

Q225 John Cummings: You seem to have an air of despondency about you. Do you believe anything Q229 David Wright: So in essence there is no way in can be done by anyone? for other organisations to set up markets in fields Cllr Bowen-Williams: I think I do. I fought for five around the town? Do you get that outside of your years to make sure that Bletchley retained its market area? Is there pressure from there? if for no other reason than it means that we have now Cllr Teare: There are ones significantly outside of the got an assurance of a public lavatory nearby,because area, not on the border. Boddington is probably an that is ultimately a requirement if you have got a example. There is nothing to stop car boot sales market. That was going to be closed as well. All operating through local schools and through charity right, we had to take it over. This time we managed organisations, but where there is a specific activity to persuade the local authority to give some money which is attempting to pass itself oV as being a towards the total repair work that had to be done, regular street market then yes, we do impose our but at least there is one now and it wins an increasing Charter. number of stars each year because of the eVort and the expense put in by the town council. Q230 Mr Betts: Do you see the markets having a wider role in terms of other council priorities? Are Q226 Chair: Do you think there is anything more they just a standalone thing that you would run for that national government should be doing? There is the benefit of the local community or do you see also the subsidiary question that Sir Paul was asking them in a wider context of oVering opportunities for about the licensing regime, for example, which people on lower incomes maybe to get fresh fruit and obviously would be a matter for national those sorts of things or making vital the town centre government. in attracting people in? Cllr Teare: I find it diYcult to imagine anything that Cllr Teare: Since I took over markets some 12 national government could do. Certainly one of the months ago, my own experience was in terms of benefits that we identified through the new licensing running markets, what we have looked at is how we regime was the ease with which continental markets can increase street trading outside of our normal could sell wine and cider and alcoholic beverages on market days in order to make sure that fresh fruit the street. Before we used to have to go and persuade and vegetables are available on a regular basis within a local landlord to create an occasional licence in the town at inexpensive prices. As we have this order to create a particular area in the street which infrastructure, 170-odd stalls are available to us, we this landlord would then operate and allow the have used it for voluntary and charity Festival of continental market to sell wine and cider. Now the Life days and so we are able to put that into our new licensing regime gives you that opportunity so market area and encourage voluntary and charitable that when a continental market does come in we can organisations really just to display what it is that accommodate that. I would like to see us taking they do and encourage volunteering in that kind of more advantage of that on our normal Wednesday way. We use it as a key component of our festival. and Saturday street markets because there may be The advantage for us is that the facility is there, it is opportunities for new businesses to be created on the a capital investment by the council and so we use it market stall which can take that into account. wherever we can. We have used it in our carnival. We use it for putting stalls out for the half marathon. It Q227 Chair: What about planning? You are a is something which you can use to invest. planning authority. Do you have anything about Cllr Bowen-Williams: I would like to add just a markets in your local development framework? reflection on the diVerence in size of one council Processed: 17-07-2009 23:05:22 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Cllr Melvyn Teare and Cllr Robin Bowen-Williams from another. Speaking from a town council and our Cllr Teare: On the Saturday market, currently it is market and again the point I have made about cheap six fruit and vegetable stalls interspersed across that shops, I am surprised that there can still be a feeling, 161, so there is quite a competition between them as irrespective of farmers’ markets, that cheaper food is regards their price and it does oVer that kind of available on the market stall. I am not going to range. mention the commercial names of any companies. I am not saying the quality is not good, but so many Q231 Chair: Is it your experience in your market that people are watching the pennies rather than what they are cheaper than the competing supermarkets, their dietary intake is. Equally, why do we keep one of whom I see you are helpfully advertising? trying it? It is because we have a sense of a local Cllr Teare: Yes. That is my understanding. inheritance and a historical sense of it. Chair: Thank you both very much indeed.

Witnesses: Mr Stephen Douglass, Area Management and Engagement Manager, London Borough of Southwark, Mr Chris Wroe, Environmental Health Manager for Licensing Policy and Strategy, City of Westminster Council, and Ms Tot Brill, Executive Director for Transport, Environment and Leisure Services, Royal Borough of Kensington and Chelsea, gave evidence.

Q232 Chair: I understand we have got Mr Wroe for Mr Douglass: Yes, of course it matters. We think our Westminster Council. street markets are very important to us in lots of Mr Wroe: Yes. Many apologies. I am a very last ways, certainly in terms of vibrancy and public minute substitute for Councillor Astaire who is spaces. unfortunately out of his post at the moment. Q236 Sir Paul Beresford: So what are you doing about it? Q233 Chair: I am sorry to hear it. Send him our Mr Douglass: What we are doing about that is we are best wishes. looking at seeking investment. I think there is an Mr Wroe: Thank you. issue about reinvestment in those markets. That is not very easy to achieve in the current economic climate. We are looking at working with traders in Q234 Chair: The same thing goes for you as for terms of business development and business previous witnesses, do not feel obliged to “me too” support. We are looking at improving the if you agree with another witness. It is helpful if you environment in street market areas and there are lots elaborate. We have got your written submissions so of actions we are taking. We have just done a you do not have to keep repeating your numbers and fundamental review of the whole portfolio, working things that are in there. Obviously you are all three with the National Association of British Market London markets. I think we have already Authorities, and that has set out some appreciated from the witnesses we have had thus far recommendations for the future that we are now that you are operating in a very diVerent looking at implementing. It is because of this decline environment for all sorts of reasons from out-of- that we have done this fundamental review. London markets. So you might want to concentrate Ms Brill: I think the picture is the same as it is in on those aspects rather than where you are the same Southwark, that it is patchy and it is variable. as the rest of the country. Are your markets thriving Markets have been changing over the years. The or declining? Is it some markets some way and some things that are sold have been changing. They are another? Could you tell us how many of the markets highly volatile. They react to changes in customers. you run at a loss? So for us the fruit and vegetable traditional bits of Mr Douglass: I think, generally speaking, it is a the market have been in decline, but Golborne Road mixed picture. I think what we have seen is a decline Market has recently become a success with the in traditional retail markets, but at the same time as growth of a North African market there. We have that we have seen opportunities through specialist recently set up one of London’s few farmers’ farmers’ markets. We have also seen in recent years markets in the street and that is a reasonable success. growth in private indoor markets. So I think what we have seen is the number of people who are market Q237 Chair: Does that market happen once a week? traders has remained stable. It is just that some of the Ms Brill: Yes. on-street retail markets have undoubtedly been declining over a number of years. Looking at our Q238 Chair: On a Saturday? statistics, that has slowed down recently, but Ms Brill: Yes. certainly over the last 10 years or so there has been a dramatic fall in the numbers of people trading on Q239 Sir Paul Beresford: Are markets important to traditional street markets. Kensington and Chelsea? Ms Brill: Absolutely. First of all, because Portobello Market is an iconic market in London, so it is really Q235 Sir Paul Beresford: Does that matter to very important to how we see ourselves, but they are Southwark? important to the local communities. In North Processed: 17-07-2009 23:05:22 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Stephen Douglass, Mr Chris Wroe and Ms Tot Brill

Kensington, which is a very deprived area, access to Q242 Chair: Does the City of Westminster Act fresh fruit and food is really important. The farmers’ supersede and override the London Local market we have set up was set up specifically at the Government Act and just apply to Westminster? initiative of local ward members to regenerate an Mr Wroe: It does. In general terms there is the area that was kind of dead at the weekends. Miscellaneous Provisions Act which acts outside of London. In London generally there is the London Local Authorities Act and then in Westminster there Q240 Sir Paul Beresford: What else is Kensington is the City of Westminster Act. There is a similar and Chelsea doing to boost the markets if they are local Act for the City of London as well which has that important? diVerent provisions again. There is something of a Ms Brill: We are just about to appoint a new post as hotchpotch of local controls which have evolved a Markets Development OYcer. That is not from each other. necessarily to go out and promote the markets, though that will be part of their job, but also to try Q243 Mr Betts: But you are seeking further and get new people to come into the markets so that amendments, are you not? there is a virtuous circle of local entrepreneurs Mr Wroe: Yes. We are at Second Reading stage in trading from the markets and then moving on to the House of Lords at the moment. Rather than business, so that we find new ways of attracting local amend our current Act, it is easier to start again with people in to spend their money in the markets and a new Act. Eighty per cent of the provisions are for local money to stay in the markets. similar. What we are looking to do is make Mr Wroe: I think largely I would echo what has just amendments to some of the existing provisions to been said. It is a very similar picture in Westminster. cover various areas, including more freedom to back In terms of markets being in profit, that is a slightly how we run markets more discretely. odd question when there are obviously diVerent types of markets, charter markets and markets run Q244 Chair: Can you be a bit more specific about it? under street trading legislation. We have a unique So you could make a profit and then invest it or regime whereby our markets are run under street what? trading legislation. The legislation does not allow us Mr Wroe: No. It does not touch on the financial to recover more than the cost of administering the aspects. We felt that that would be far too street trading scheme. So there can be no question controversial. I would have thought the chance of currently of a local authority making a profit out of getting a Bill through would probably be next to nil. the way that it runs its markets. What we do aspire They are very fundamental changes. That is one of to do is recover as many of those costs as possible. the things perhaps central government can look at in We measure the success of our market more by the terms of some national legislation about the take-up and vacancy rates on our markets as an statutory basis for some of our markets and street indicator of how well they are doing. I think for 20 or trading given the hotchpotch there is at the moment. What it is doing is it is giving us powers because at 30 years we have seen a general decline in our retail the moment in street trading individual pitchers have markets, although it does diVer in diVerent goods, individual rights to their individual pitch, so the and we have seen changes in the goods that are in on market is only a market in name. In reality it is a oVer, but I think currently our markets are fairly collection of individual licensed street traders. So stable. They do particularly well at the weekends. one of the things the proposed Bill is doing, for They do not do so well in the weeks where they are instance, is allowing us to designate an area as a five or six day markets. There has been, for instance, market and then give us rights more akin to a market the establishment of a Saturday farmers’ market in operator to be able to shuZe people about, to be able Pimlico now which is very well-established and very to put commodities together. similar initiatives from local ward members in partnership with local neighbourhood teams. Q245 Mr Betts: Are you looking to do something similar to Westminster? Are you watching what Westminster has done and is doing? Do you want the Q241 Sir Paul Beresford: You have raised the issue additional powers as well? Should they go further? of the London Local Government Act. Looking at There is a very diVerent basis for the markets outside the nods, you would like bits of it scrapped. What London. Outside there is a statutory right to control changes? other markets. Inside London the traders have a bit Mr Wroe: We are not under the Local Government more power over their tenure of stalls and things. Act; we are under the City of Westminster Act. We Ms Brill: I have been in charge of markets both have a Bill in the House at the moment seeking to outside London and inside London. It would be a lot replace the current City of Westminster Act, which easier to operate a developed market, to do all of the we have had for the last 10 years, although we are initiatives that we would like to do in the kind of not actually addressing the financial issues within regimes that operate outside London. So I would that, but we are looking for freedoms and discretions like to see in London the same kinds of market to enable us to manage our markets and our street regulation that happen outside. Specifically, I would trading better. like to see changes to the bit that allows anybody to Sir Paul Beresford: Could you write to us and object to changes that are made in the market that expand on the changes? exist within the London Act. So it is not just the Processed: 17-07-2009 23:05:22 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Stephen Douglass, Mr Chris Wroe and Ms Tot Brill market traders, anybody can object to anything that strategic structured approach to the whole of the the local authority proposes to do. They can object markets economy, it only deals with what happens to, variously, the magistrate’s court, the crown court on the highway or within seven metres of the or the secretary of state, and even though in practice highway, which is not particularly helpful to us. most people do not do that it does put a damper on the kind of entrepreneurship of the local authority Q248 Sir Paul Beresford: Are private markets and on the market traders because it is not just them successful? who can object. They feel if they do something, and Mr Douglass: Some can be. they have agreed it with the council, anybody else can object to it, so people tend to be very cautious. Q249 Sir Paul Beresford: I assume they are. The other one is the issue that Westminster is dealing Mr Douglass: I am not saying that is a negative with about the succession in place. You can see why thing. It is just in terms of the overall strategy and that clause was in there in order to protect market looking at the whole markets economy it does not traders, but actually what you end up with is isolated really help and certainly outside of London there is stalls in an empty market street where you would a system of licensing in many places private markets want, if you were managing the market properly, to as well. cluster people together so they do not get lost and customers do not give up before they get to them, but they have a right to that particular spot and no other, Q250 Sir Paul Beresford: Would you bring the and you can only move them with their agreement. private sector in to run any of your markets? The other one is the issue about only charging your Mr Douglass: We are already in a partnership with expenses so that we could charge a fair rent, because the private sector. I do believe there are some theoretically councils cannot make diVerential advantages to that in terms of the commercial retail charges then. If all you can charge is your expenses skills, things which can be absent within local then the cost of a stall in a highly profitable bit of the authorities. I do believe local authorities have a market is the same as one in the dead end down the strong role in terms of markets, but I think there is far end of the market where nobody ever goes. In a role for the private sector as well in terms of those practice, most London markets do not do that, most commercial retail skills. London market operators—councils—keep their Ms Brill: The farmers’ market we run is in fingers crossed and make diVerential charges, but partnership with London Farmers’ Markets you run the risk that anybody could object to it. Limited, so it is in partnership with a private sector organisation, because they are the experts in that field. Putting it together in a street was a nightmare Q246 Clive Betts: You cannot do a tendering system because we ran the risk of it being designated as a like they do in some of the markets outside street market which we are trying to avoid because if London then? it was a street market then it could not be run by Ms Brill: No. London Farmers’ Markets Limited who guarantee that what you have got is a farmers’ market and not Q247 Clive Betts: Where, when a market stall a collection of chancers. What we have now is an becomes vacant, you put it out to the highest bidder? occasional market that we are going to keep being Ms Brill: No, because we can only charge our occasional for as long as we possibly can, but sooner expenses and our expenses are the same for every or later we have to face up to the issue that the single stall. It stops us from being able to create a legislation does not help putting up new markets sinking fund that we can use to develop the markets. without all of the baggage that comes with it and Mr Douglass: I echo everything that has been said. having a relationship with the private operator to do Our view is certainly that the legislation is very so. I would like to see the ability for market unhelpful. Our view is that it needs more than just operators to put themselves together as charities and some amendment, it needs a fundamental overhaul. run bits of markets, not even necessarily the whole We are taking some legal advice on that at the of it but parts of it, but that is incredibly diYcult, if moment following on from the review that I referred not impossible, under the current legislation. to earlier. I also get a sense from the legislation that it treats markets and traders as something that are Q251 David Wright: Did they come looking for you undesirable, something to be regulated, enforced when they wanted to set up the farmers’ market or against, et cetera. It is quite negative in some ways did you go looking for them? Does the system stop because it also deals with illegal street trading, it is private sector enterprise in that sense, nobody wants quite a negative piece of legislation, it is not about to come forward with ideas, nobody wants to bring promoting and developing markets which is the forward new ideas in terms of private sector game we should be in. It pushes local authorities, to expertise in trading? some extent, down a regulatory enforcement route Ms Brill: You will know that most farmers’ markets which is sometimes not very helpful at all. I agree in London are in school playgrounds and car parks with what has been said in not allowing us to and the reason is that it is almost impossible to get generate a surplus to then reinvest, which is a big them on a street. The market we put together in Bute issue for us, and I think there is also an issue in that Street was a ward initiative, an initiative of our local it does not necessarily establish market rights and members who wanted to see this dead bit of South that is unhelpful. I referred earlier to a growth of Kensington more alive at the weekends. We went private markets. It does not allow us to adopt a looking for an operator for it and spoke to them and Processed: 17-07-2009 23:05:22 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Stephen Douglass, Mr Chris Wroe and Ms Tot Brill they were up for doing it, they thought it sounded want to see it, this is a change” and put it to like a good proposition, but it was incredibly Government? If so, what has been the reaction or diYcult. have you not got that far? Mr Wroe: No, I do not think we have got that far. Mr Douglass: The question also relates to what Q252 Chair: Just to clarify, is it the legislative happens at the national level. There is an issue there framework which is the reason why most farmers’ in terms of who is responsible for markets, who is markets in London are in school playgrounds? championing markets within government, the Ms Brill: Yes. joining up of policy at a national level. Certainly the Mr Wroe: I think it is worth adding as well though recent Food Matters, the review of food policy, was that a lot of the issues that have arisen have arisen helpful in terms of looking at the role of retail historically. It is complete chance whether or not markets specifically in relation to food, but you get some dim and distant monarch in the past gave an a sense that markets are almost ignored across area a Charter and prior to Westminster I worked in national policy and there is not really any one person Greenwich where James I did give a Charter. Now there who is joining all of that up, who is working on that happy event leaves Greenwich in a completely making sure that policies on regeneration, et cetera, diVerent area from Westminster which does not have include a look at markets. its charter market, so that is the reason we are stuck with the situation of legislative control that we have got now, but we can change things going forward. Q255 Chair: Before we explore that point, the We are just establishing a market and we tendered Association of London Councils, is that not an and have got a private partner who will run the obvious vehicle for you all to get together and sort market for us. We are able to establish that as a something out, to present a piece of legislation, or do statutory food market and there is some joy in us the London boroughs diVer so much that you would doing that. That is not going quite as far as allowing not be able to agree? us, if you like, to establish our own charter, we need Mr Douglass: I think it would be a useful vehicle. a change of legislation to allow us to do that, but I The diYculty is markets are intensely local and they do not see why it should be so diYcult for us, why we respond to intensely local needs. Actually, I think should have to tiptoe around the legislation, if you what we agree on is we want less legislation rather like, and use it in ways it was never, ever intended. than more. We want more local freedom and a better We have got a private operator for our farmers’ partnership with the traders in the markets to deliver market and it is on a temporary licence, it is only that. I think we can get that across London, but we allowed by law to run for six months. What do we have a mindset that says if we work together to have to do, we have to keep issuing them time after change legislation it is not because we want more time after time again to comply with the legislation. legislation: actually we want less and it is taking it It is a nonsense. We have specifically extended it to away.I do not think anyone has quite worked out yet three years in our proposed bill. We have taken away how we do taking away legislation and allowing some of the diYculties where we have seen them to more freedom. Some of that legislation was very try and accommodate these changes but we are still, hard fought for and is deeply historic and it will be in a way, tiptoeing around diYculties it created for a hard battle and it is very hard to start on a hard us. battle where you say, “Well, actually I just want less, I do not want these things because we just want it to be easier and friendlier to run it”. Q253 Clive Betts: Given that everybody is saying the same thing to us, many diVerent local authorities, cross-party, that the current situation has got real Q256 Clive Betts: With the changes you wanted problems and it is not working, and there are lots of would Government be concerned, do you think, that things you could do better if you had change of they might have a march down Whitehall of all the legislation, is nobody listening out there to you? street traders protesting that you were going to come Mr Wroe: One of the things about markets is it is and put their rents up and run things in a diVerent very diYcult to generalise. There are huge way from that which they have always had them run diVerences, I think, between the approaches, largely and change their way of life? on the demographics, largely because people see the Mr Douglass: They are flawed, but they are ours and diVerent benefits in markets. There are definitely are historic. Westminster has already had that financial incentives to charter markets, there is no reaction to the changes it has been proposing. doubt at all. As a market operator there is the Mr Wroe: An example of that is pedlary. We have opportunity to make a huge amount of money. got six pedlary—pedlars—bills, private bills, from Street trading markets are completely diVerent. If it diVerent cities stalled in the House of Commons was for purely financial reasons we would never run because of the objections from pedlars. It is that easy a market, we would close them all down tomorrow to stop the changes going through. That is a tiny because they cost us, but there are other reasons to proportion of people compared with people who are do with community involvement and regeneration. street traders and market operators with their national organisations, et cetera. I think there would have to be a huge sea change in attitude where rather Q254 Clive Betts: If you want a change of legislation, than a right it became a privilege to trade in the have you collectively put forward a specific proposal public realm. I think that is the mindset we need to to say, “This is what we want to see, this is why we see and that is why, even with our first proposal to Processed: 17-07-2009 23:05:22 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG3

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31 March 2009 Mr Stephen Douglass, Mr Chris Wroe and Ms Tot Brill take away a right of someone to pass their right sector bodies for mutual benefit, for example down through their families, which has existed for so primary care trusts, given the emphasis on access to many years, our bill proposes to remove it in one aVordable fruit and veg in some markets? generation so it can be passed down but it cannot be Mr Wroe: Yes, we have. In the market that we are passed down again, our proposal to remove it in 50 establishing we have got some joint funding to assist years’ time is being very, very strongly contested and in that and in its promotion and also in our largest that is how it is seen, I am afraid. market—we have only got three and only one of those is a particularly significant retail market—we have devolved the management of it to the local Q257 Clive Betts: The rise of the unborn market neighbourhood oYce which is strongly represented trader? by local residents and local market traders. We have Mr Wroe: So it seems. With a huge amount of tried, as far as we can go under the legislation at the support in both Houses. We will see, we are at the moment, to make that a market which is owned early stage of our bill and we will see how that goes. more by locality rather than simply run at arm’s Mr Douglass: In relation to that issue of putting fees length. up, as someone said to me yesterday, “I would very happily do that if that meant those markets were Q259 Chair: Ms Brill? thriving and it was because they were thriving” and Ms Brill: No, we have not. that allowed us to do what was talked about earlier, which is to generate surplus to reinvest in that Q260 Chair: What about the tourism angle? service. I think what we have to do is create the Ms Brill: Obviously Portobello Road is a major conditions which some of the things we talked about tourist attraction and that is both a blessing and a prevent us from doing where markets are thriving so curse. It means that tourists come on Saturday, and we can do that to then reinvest. that is an enormously successful antique and craft Mr Wroe: Just on the finance side, I think, again, it market and fashion market, but during the rest of is so very local and we do charge diVerent rates in the week people turn up and say, “Well, where is it?” what we would term our traditional markets. The It does not thrive in the same way during the week market traders pay much less than our street trading, and we have a market that serves at least two for instance, in the centre of the West End, in Oxford completely diVerent sets of customers. The same Street and Regent Street. Even then, it is nothing like market is serving tourists at the weekend and local a commercial rate that these people will pay because people during the week and they have very diVerent it is limited. I think it is important to know how that needs and trying to balance those is interesting. A distorts the market. They are not paying enough rent market is not just one thing. Big street markets so they do not have to operate under market become a series of diVerent markets brought pressures. They do not have to operate eYciently is together and operate in diVerent ways on diVerent what I am saying, so they could operate poorly. days. Their customer care is poor, their display is poor and the training of their staV is poor. We commissioned Q261 Chair: Mr Douglass? a study recently to look into that area of trading and Mr Douglass: We have not specifically worked with the results point to vast opportunities for private the PCT but we are working, for example, with arts operators in those areas which are completely organisations developing an arts and craft market in unrealised because people can make a very healthy one part of the borough. There are some examples profit trading at some 20 or 30 per cent of the where we are starting to do that. It is new potential of their site because the rent compared with development, new opportunities and I think again, I the retail they are standing outside is so much less. referred to the review that we have done, that does Mr Douglass: You almost get a sense that in the past highlight that is something we need to do much people have left their brains at home when they start more. In particular you mentioned the link with to think about markets. As part of the overall retail healthy eating, obesity, and access to good quality, economy it works together with the rest of the retail low-priced food. economy in an area and it should be seen as part of Ms Brill: We want to link our markets into the that and treated in the same way. creative economy of the area so that they are a starting place for young designers to reach an audience for their goods. We have been working with Q258 Chair: Can I move on to another point. You local arts organisations to find ways of regenerating talked about partnerships with the private sector, and shifting people around the markets. have any of you got partnerships with other public Chair: Thank you all very much. Processed: 17-07-2009 23:06:03 Page Layout: COENEW [SO] PPSysB Job: 428788 Unit: PAG4

Communities and Local Government Committee: Evidence Ev 43

Monday 20 April 2009

Members present Dr Phyllis Starkey, in the Chair

Sir Paul Beresford Anne Main John Cummings Dr John Pugh Mr Greg Hands David Wright

Witnesses: Mr George Nicholson, Secretary, National Retail Planning Forum, and Mr Jean-Paul Auguste, Chairman, Geraud Markets Group, gave evidence.

Q262 Chair: Can I welcome both of you here and statute 250 years ago, so the particular ownership thank you for managing to make your way through and management model of it is probably unique. despite the demonstration going on outside. Can I The factors that led to the success of the Borough urge you, in responding to questions, firstly not to Market I believe could be applied in other parts of feel it necessary to repeat something if you agree with the country. You have to address the key issues what the other person says and secondly, given that which are to do with ownership, investment, vision, we have already taken significant amounts of oral management and promotion. Those things are not evidence on this topic, we are particularly interested applied in a coherent way in a lot of other markets in examples from your own personal experience, for reasons you have heard, whether because there is rather than necessarily repeating issues that we have not management or there has not been investment or already had evidence on from other people and a vision, and then you will not have a successful where we may already have significant information. market. If you apply those things in the way that Could I just ask both of you initially what your views they are applied in some other markets in the are from your experience on whether markets country, I believe both in this country and abroad generally are thriving or in decline and whether you you will have a successful market. It is unique in that believe there are regional diVerences, diVerences it was only started 10 years ago and now it is between diVerent types of markets? probably one of the most successful markets in the Mr Nicholson: It is quite complex. The markets country, if not in Europe. It is a new retail market world is no diVerent to the retail sector in the sense where there was not a retail market, where there was that you have hypermarkets at one end and the previously a failing or declining wholesale market. corner shop at the other. To globalise it to one thing In a sense, it is an example of the turn around of a called “the market sector” and ask the big question market. In that sense it is unique but in relation to is it declining or thriving is quite diYcult to answer, having conditions and applying the lessons to not least because there is not much data to inform creating a new market they could be applied in other the discussion in any event. The market I have been parts of the country. In fact, a lot of the traders that involved in, Borough Market, is a thriving, very come to the Borough Market come from places like successful market and there are other very successful Cumbria and they go past the doors of a lot of the examples of markets in other parts of the country other markets on the way to London. which you have heard about in Bury, Leicester and other places like that. There are very good examples of successful markets all over the country. I do not Q264 John Cummings: Good afternoon. Would you think they would put that on a strong regional basis. tell the Committee what you believe are the key There are examples where markets are struggling a factors that contribute to a successful market? Do little and there are reasons for that as well. you think there are any pronounced regional Mr Auguste: Historically, markets had not many diVerences, in your experience? competitors. They were in city centres and life was Mr Auguste: We should put food back on the agenda easy. Now it is a business. It has to be managed as a in a better way. We should be more orientated business, publicly or privately, but it has to be towards food because people have the need to eat managed as a competitor. When a market is not and to buy each day of the week. If we want our adapting to that, it has the risk of losing the clients to go to markets for food, we could have a competition. There are experiences on the Continent more interesting basis of clientele. On the Continent, and here of markets adapting and they are easily mainly in Latin countries—Spain, Italy and successful. France—the food stalls are between 40 and 60 per cent of the stalls of the markets and this is the way to keep our clientele. Q263 Chair: Mr Nicholson, Borough Market is a Mr Nicholson: It sounds simplistic but to run a successful market but many people have suggested it successful market you have to want to run a market. is unique. Do you think it is unique or that there are It is a very simple observation but it happens to be other markets which could learn from that true. A lot of people who own markets or preside experience? over markets—whether street markets, markets Mr Nicholson: I do not think it is unique. The only inside shopping centres or wholesale markets—in a thing that is unique about it is that it is a charitable sense have inherited these things. Often the structure trust, run by a group of trustees. It was set up by of the local authority has changed dramatically and Processed: 17-07-2009 23:06:03 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr George Nicholson and Mr Jean-Paul Auguste the management of those markets has changed. In Mr Auguste: Because we are obliged to work essence it always comes back to, whether it is together. The staV within the city administration are publicly owned or privately managed, you have to obliged with us to understand what is the problem of want to run a market, not just preside over the market and manage it like an administration. It something which happens to be there. is a business. We have so many competitors. We are obliged to understand the flexibility and speed at Q265 John Cummings: Do you have any practical which things are changing. It is so easy to speak examples for the Committee in relation to best together that we like this experience in Liverpool. practice with wider applicability to London, for instance arising from your involvement with Q272 John Cummings: Is there anything that we Borough and Southwark Markets? could learn from successful markets in Europe? Mr Nicholson: London is unique in the country Could you give some examples of European best because primarily it is street markets as opposed to practice that could be easily adopted in English other parts of the country which tend to be more markets? enclosed. The Borough Market is slightly odd Mr Auguste: Absolutely. Besides the food option I because it is a covered street market. was citing, I have in mind mainly Bordeaux Capucins Market, where there are two big market Q266 John Cummings: Do you have any examples of halls refurbished through a very long term duration best practice? contract. Through this contract, every partner, the Mr Nicholson: I think the Borough Market is an city council and us, are obliged to eliminate any example of good practice. The market, the shops and short term speculation decision. We are obliged to buildings around it are all collectively owned by the think at least 10 or 20 years ahead. When we took trustees, so there is unity of ownership. over this market, we were left with 40/45 food traders and the market was perhaps 40 per cent occupied. It took 13 years and this is the first year the market will Q267 Chair: I do not think that pattern could be be fully occupied and rented. It is a long term easily replicated, from what we have understood, in commitment. The private company has to accept a most other markets in London. big investment and it has to accept transparency to Mr Nicholson: In most other markets it is replicated work with the city council. You cannot get city because the street is owned by the local authority council commitment if you are not accepting the and most of the shops on both sides of the street are transparency. It is a complete change compared to also owned by the local authority. What is lacking is what could be said about private operators in this any coherent management in relation to the market country. I would not attack private operators in this because of the particular circumstances in London. country because it is a sort of catch 22 situation. They were oVered short term contracts. You cannot Q268 John Cummings: Is that applicable to have an answer which makes these people aware of Southwark as well? what is the long term interest for the city council, a Mr Nicholson: You will have heard in London that long term vision for the market, if they are stuck on the issue is that, technically in law, they are not a very short life together with the city. Bordeaux is markets. They are streets on which pitches are very interesting in that aspect. Through that licensed by the local authority. contract, the level of market trends was jointly Mr Auguste: On the continent, mainly in France, we managed with the city council taking into account are used to what is the public domain. The the traders and the population interest also. legislation allows city councils to manage street businesses like markets under market rules. Q273 Chair: Relating to food trade and wholesalers, Certainly this is a way forward for London sites. I understand that in France the wholesalers sell both to markets and to big supermarkets like Carrefour. Q269 John Cummings: Do you have any examples of Is that also the case in the UK or are wholesalers best practice with the wider applicability arising only selling to markets? from your specific involvement with other English Mr Auguste: It is less the case. We should be back to markets? better interaction between wholesale and retail Mr Auguste: Liverpool is interesting because it is markets in this country. Where could we have good through a joint venture company with the city food traders on retail markets if they cannot have keeping its share in an agreed strategy decision and access to diversity and quality food? It is mainly this is a joint decision taking experience. through this wholesale market scheme that they could be oVered these products. Mr Nicholson: I agree. To me it would be Q270 Chair: Did the initiative come from Liverpool inconceivable to think that we could go back to a Council or from you? situation in this country that they have, say, in Mr Auguste: We had contacts with Liverpool City Germany where the Hamburg Market for instance Council but they chose this unique experience of as well as the wholesale market is run by the city creating a company. council within the confines of the estate which they own. They have a lot of private wholesaling Q271 Dr Pugh: Why does that work particularly companies who deal with Aldi and a lot of the well? business for supermarkets and discounters goes Processed: 17-07-2009 23:06:03 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr George Nicholson and Mr Jean-Paul Auguste through the wholesale market in that way. It does Q279 Anne Main: Mr Nicholson, you kept saying not eVectively go through the public bit; it goes repeatedly that you really need to want to run a through a private company located on the estate of market. In your submission you criticise a trend the land which is owned by the city authority. I encouraged by central government for local cannot see that Tesco, Sainsbury’s or Waitrose are authorities to view markets as simply part of a wider going to go back to buying their produce through a property portfolio, running the risk of wholesale market in this country. There is misunderstanding the nature of markets. We have undoubtedly scope for more interaction between the heard in evidence from people and from going round wholesale and the retail part of the market. That is talking that this does seem to be quite an interesting what the Borough Market does. We are what we call point but it does not seem to sit very comfortably a composite market. We have part of the market with anyone’s property portfolio. You could end up which is a wholesale market, which is the historic bit “having it” as part of your brief and you do not of the market. Other bits of the market are retail and really know anything about markets. You seem to other bits are shops, restaurants and cafes. In a think central government has been part of this sense, that is a model like Covent Garden, with the marginalisation process. I would quite like your wholesale market diversifying into partly retailing views on that. and then the wholesalers supporting the retailers. A Mr Nicholson: When I first became involved with feature of the Borough Market which is a new markets 30-odd years ago, each local authority had development is that many of the retailers, small its own markets committee. It had a director of companies, who have come to set up in the retail markets and a mini-bureaucracy around running a section are now becoming quite large wholesalers. market. Now, there are only maybe one or two local That in turn is creating a new wholesale dimension authorities in the country—the City of London and within the Borough Market to add on to the maybe one or two others—with that dedicated traditional fruit and vegetables. There is interaction political and bureaucratic structure based around between the wholesale and the retail which I do not the market. If you go to any local authority in the think is promoted as much as it could be in this country, you will find where the market is managed country. in any number of diVerent departments. It might be in finance or parks and recreation.

Q274 Chair: Who could promote it? Q280 Anne Main: You blame central government Mr Nicholson: The wholesale market could. If you for that. go to Hamburg wholesale market, they have a stall Mr Nicholson: The central government issue is from the wholesale market sitting in the street diVerent. It is the pressure from the Treasury for market, so people know when they go to the street local authorities to manage their assets. You will market where the produce comes from. hear a lot about asset management, not all of which is bad, but in reviewing their property portfolios, as Q275 John Cummings: Mr Auguste, I see your local authorities are bound to do, they have to within company has been established for about 130 years. the current constraints view markets and market It is wide ranging and very extensive throughout property in much the same way as they view other France. Do we have a similar company in this property that they own. Often they will look at the country? return from their markets and think they could get a Mr Nicholson: It is called Group Geraud! better return or perhaps they will sell them oV because they have pressure to sell oV their assets.

Q276 John Cummings: Do we have anything Q281 Anne Main: That is street markets. comparable in this country? Mr Nicholson: Street markets are slightly diVerent. I Mr Nicholson: There are other companies—not so am talking about where a local authority owns an old. Do you mean are there other private market indoor market—Bradford, for example—a market operators? which is a building with shops. A market in the centre of that would be classically what an indoor Q277 John Cummings: Yes, larger. market would look like. In Bradford, as part of their Mr Nicholson: Not as big as Group Geraud. Town asset management strategy, the local authority and Country? decided—although they did not go through with it in Mr Auguste: Perhaps 50 years. I am not sure. To the end—that they would strip the shops out of the explain the longevity, we come back to the market portfolio and sell those with all the other investment and the commitment to long term properties which Bradford owned as a local contracts. authority under a tendering process for a private sector property company to manage all their properties on their behalf. You could argue that Q278 John Cummings: Did you ever sell fruit and veg might have made sense but it stripped out the surplus in a market? from the market. The income from the shops was Mr Auguste: No. I was born on a market, to taken away from the market’s budget. The market understand how traders are working. The problem is itself was then put in danger of not being viable. the transfer of knowledge. You cannot read it; you Shops are an integral part of a market. That is what have to live it. I am saying about the Borough Market. The Processed: 17-07-2009 23:06:03 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG4

Ev 46 Communities and Local Government Committee: Evidence

20 April 2009 Mr George Nicholson and Mr Jean-Paul Auguste composite nature of these markets is that you do not Q286 David Wright: What practical help does that just look at the street market separately from the minister provide? street properties in the same way that you do not Mr Auguste: Last year in France there was look at the stalls at the centre of an indoor market unification work about business papers. The separately from the shops or the streets around it. legislation was too complex for little businesses with That is not a tendency which is pushed by local tax problems, social problems, wages, authorisation government but the asset management side of things to act as a commercial business in the public domain is something, I think you will find generally, where a etc. Each trader was in the middle of having eight to lot of local authorities have found themselves facing 10 diVerent documents. There was work to have these dilemmas as to how they manage their diVerent ministries merging the documentation in property portfolio in those situation. The markets one. and the rents they get, the values they have to put to them relative to the local property market, often put Q287 David Wright: So reduce bureaucracy? the market at a disadvantage. Mr Auguste: This is an example. The other problem Mr Auguste: You have to understand that our was to help lobbying to Brussels. It is the World competitors—for example, big supermarket Union job now also. We had anxiety about the new chains—have a unique decision possibility. They rules. For example, there was to be a rule about have a staV and they can implement in every stickers to be placed on every food product. A trader supermarket belonging to the company the same preparing some food—a charcuterie for example, a policy and attitude. We do not want every market to paˆte´—would have been obliged to give at zero point be a clone of another. To help you understand, something per cent the components of his paˆte´ on central government can on some aspects give to so the market day. Tomorrow it is impossible to get the many city councils, so many markets, at least some same composition each day if you are not allowed very important help. to work.

Q282 David Wright: You said that there was a policy Q288 David Wright: Would you say that that vacuum in Whitehall about markets. Do you think capacity is not available in the UK? the government could be doing more? What should Mr Nicholson: What helps clarify this to me is to it be doing? What incentive is there for the think: where do markets sit in the chain of produce? government to do more in relation to markets? Downstream from the market you have agriculture, Mr Nicholson: Central government? if you are talking about food in particular. We have the Ministry of Agriculture that can deal with farming and all those kinds of things. Upstream you Q283 David Wright: Yes. have the retail world. There is competition law, Mr Nicholson: We would concur that what the planning laws and all those kinds of things that market industry needs in central government, apply. In the middle you have markets. That is where wherever it is located, is a champion for markets the focus needs to apply. Very little attention is paid which currently does not exist. to that key, pivotal role whether it is a wholesale or a retail market. That is why there needs to be a Q284 David Wright: Should that be a minister or a champion for that bit of the chain which is the civil servant? market in the middle. We would argue it should be BERR. The essence of a market is about Mr Nicholson: It should probably be a minister and competition and commerce. It is much more logical it should be BERR. Markets have an economic that the energy from government and the focus are purpose. They are businesses. You could argue that applied in that part of the chain. they have a social purpose because historically they have existed in these places for a very long time but essentially they are business focused. If you are going Q289 Sir Paul Beresford: You mentioned London to have a champion in government, which is what we was diVerent. We have found that London is need and do not have at the moment, it has to be in a diVerent within London as well. Particular mention department which has some relevance. Planning and was made of the London Local Authorities Act. regulatory things obviously do have a relevance. What should be changed? DCLG has played a part in PPS6 and promoting Mr Nicholson: A lot was made of the London Act as markets but essentially it is a business focus that it being restrictive on London markets in a way that needs and the champion could and should come other markets are not restricted. That may or may from BERR. not be the case. I think it is much more that London markets are not markets. Maybe there is legislation for markets outside London which means they are Q285 David Wright: What happens in the rest of recognised as markets in a way they are not in Europe? London. In London it is just a licensing function. Mr Auguste: We have a champion in France. There You have a street. You have pitches. The local is a sort of minister for small businesses. He is our authority issues licences. They are not actually contact within the government. There is a National markets. They are a selection of pitches which are let Commission and each year there are some meetings, out. I do not think even that situation in London some preparatory action work, and we are having could or should stop the local authority who wants this in France. to promote or manage their market. If you take Processed: 17-07-2009 23:06:03 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr George Nicholson and Mr Jean-Paul Auguste

North End Road Market in Hammersmith for restriction except quality. If you have four fish stalls instance, it is a very big street market. There is and someone else applies to be a fish stall holder in nobody in Hammersmith Council responsible for the market, you have to take some kind of managing that market. There is a person responsible management decision as to whether you think the for issuing the licences but no one on a daily basis or customer base will support another fish stall within a weekly basis looks at what is happening in that the market. market or manages that market. Q293 Mr Hands: That is contrary to what the nature Q290 Mr Hands: As the MP for the area, it comes of a market is. You are essentially operating in a non- under the town centre manager for Fulham, which is market way. not quite the same thing as a council oYcer Mr Nicholson: I do not think you are. The same dedicated full time to the market. It comes under the thing would apply in a shopping centre or in any same person who is responsible for the retail other kind of situation. These are businesses. It is not frontage and other things. a completely open ended, free market situation. You Mr Nicholson: That is a recent innovation. That is a have to manage these situations. wholly good thing. The town centre management function has suddenly now appeared on the radar and has taken up the mantel and filled the vacuum Q294 Mr Hands: If you cannot have markets in which was left by the fact that there were not market markets, it seems to me it makes it very diYcult. managers in the way that previously there had been. Surely somebody would have done their homework and thought, “I can sell fish better than the person Q291 Mr Hands: I am slightly confused about the four pitches away”? legislation. We have heard about the London Mr Nicholson: It is not as simple as that. Then you Corporation Act. Others have told us about the have to make a choice because there are only so London Local Authorities Act 1990 as amended. Do many pitches in any one market. On the face of it you you happen to know which Act? Perhaps it is both would say, “Okay, your quality is suYcient to come Acts. People have particularly told us that one of the into the Borough Market.” We also have several problems is that one Act or both Acts prevent any hundred other applicants and you are making a profit making by a local authority in its management balance as to whether you want another fish stall in of the market. Is that particularly the issue? My that market or whether you want another stall second question is about restrictive practices and selling meat, vegetables or whatever. whether, in your experience, some markets have problems due to restrictive practices preventing new Q295 Chair: I can see how this is in your interest entrants from coming into the market. You could managing the market but is it in the interest of the have a rule for example that there cannot be a pitch consumer? One of the things that individual within six pitches of an existing pitch that does the members of the public like about a market is that same product range, which eVectively prevents you have lots of stalls very close together and you newcomers coming into a market, which is sort of can wander around and get the best buy. done in the name of protecting the market, but it can Mr Auguste: This is a complex process. You have to often have the perverse eVect of preventing renewal understand the population, the clients. You have to of diVerent people coming into the same market. adapt the merchandising of this stall. It is competing Mr Nicholson: Jean-Paul manages East Street against others. It has to oVer what the population is Market which is one of the big markets south of the waiting for. You can make some mistakes but if you Elephant and Castle. have the final clients in mind you will be close to the Mr Auguste: We are not yet managing the market so solution. You have to understand the merchandising we have no influence right now. We have quite the needed on the site, as George was saying. same rule in France, it never prevented markets to be Mr Nicholson: I think there is confusion as to what managed as markets, it never forbid newcomers in a market is. I do not know any retailer who operates the markets. The rule in France is four metres which a totally free market situation anywhere, except is close to the distance between two stalls. The maybe somewhere in downtown Vietnam or legislation should be the same as in other cities and somewhere. It does not exist in the United States, I agree with what George was saying about the Europe or in this country. London Act.

Q292 Chair: You think the legal framework in Q296 Mr Hands: There is no restriction that prevents London should be the same as in the rest of England? barber shops being very close to each other. Very Mr Nicholson: Yes. I am not sure how much of an close to North End Road Market, there are about obstacle it is. It is undoubtedly not helpful because three barber shops. They have all set up. One is a it eVectively turns local authorities into licensing break away from another and they compete. It is in authorities, not marketing authorities. In relation to the customer interest. Nobody has a problem with the issue of competition, that is quite a diYcult issue. that. No town centre manager comes along and says, The nature of markets is to encourage competition. “There are too many barber shops here. We want to In building up the Borough Market from nothing to manage the process. Instead of hairdressing, we are what it is today, we have a lot of people who apply going to have an extra cheese shop”, do they? Why to come to the market. By and large, there is no should that happen in your market? Processed: 17-07-2009 23:06:03 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr George Nicholson and Mr Jean-Paul Auguste

Mr Nicholson: Because we are running a market. Mr Nicholson: It is essential in the new, merged PPS6 Mr Auguste: I would give an image of some markets and PPS4 and whichever other ones that are going to on the continent. The problem of a market is that it be merged with it—we will hear later this week or has many exits and entrances. A supermarket has whenever, when the new, merged PPS comes out— only one door. You are obliged to go through that that at the very least the paragraph in PPS6 should and you are obliged to go through a route within the be carried through to the new document. It is a very store. They can organise the merchandising and the important paragraph and recognition from location of each product in the store. In a market government that DCLG, in issuing PPS6 in the first you have to disperse diVerent stalls in order to place, had a paragraph for the first time which provoke within the clients’ brain the need to go specifically addressed in planning terms the everywhere in the market. It is a diVerent way of importance of markets. It is important that that is managing. We have experience of markets, apart carried through into the new guidance which from fishmongers, fruit and veg etc. Generally, they emerges later this spring or summer. are working less than the markets where you are dispersing the products and obliging a promenade. Q299 Chair: This is your opportunity to have your Q297 Dr Pugh: Is it the case that a successful market wish list. Is there something else that should be requires, unless it is just a very specialised market added to PPS6? The Minister is sitting behind you so that sells one thing like in a fish market, a diversity if you do not say it now you have missed the and you will not get that diversity unless you manage opportunity. the situation so that you get the diversity in that market? Mr Nicholson: I think what is in PPS6 is fine because Mr Auguste: Exactly. You need the diversity. it is a call to arms. It is asking local authorities to recognise that street markets and indoor markets Q298 Anne Main: You did mention PPS6 in passing. have an important function within their towns, city Do you think PPS6 should be improved, altered or centres and villages throughout the country. amended in any way, shape or form? Do you have Mr Auguste: I agree with George. any concerns? Chair: Thanks very much.

Witness: Mr Iain Wright, MP, Parliamentary Under Secretary of State, CLG, gave evidence.

Q300 Chair: Welcome, Minister. In the evidence that Mr Wright: Only in terms of the annual monitoring we have been taking thus far, a lot of people have returns that local authorities provide in terms of the been explaining to us how important markets are, wider retail oVer. but there seems to be an absence of any quantitative data. What people are saying is qualitative. How Q302 Sir Paul Beresford: It is very important but important does the Government believe markets are you have not looked at it? as part of the retail sector? Has the Department done Mr Wright: It is very important. One of the key any work on quantifying their importance? things is this interchange and potential conflict Mr Wright: I really welcome what the select between central and local government. I do think committee is doing on this. I think it is a really local government is in the driving seat here. I will important issue, which sort of answers the question mention PPS6 and the paragraph that the previous to some extent. The Government does think that witness referred to. We do think that is an extremely markets are a hugely important and positive part of important part of the planning framework that the retail oVer. One of the things I would be keen to provides local authorities with the tools and explore with the Committee is to what extent this is incentives to make sure that they can retain and all part of a wider, fundamental town centre strategy, enhance local markets as part of that wider— because I think markets are intrinsically linked to town centres. You mentioned quantitative data. Q303 Sir Paul Beresford: Some of the local There have been some academic exercises carried out authorities are saying you are getting in the way with with regard to this. In 2005 there was data. Also, in the legislation. They are worried about approaching terms of the local authorities’ role in monitoring you because you will only make it worse and add what is needed, in terms of data and the retail oVer, to it. in terms of changes in numbers of commercial Mr Wright: That is certainly not something that has spaces, retail units. That is part of the annual come across my desk. I do not want to have a hands monitoring return that local authorities provide to oV approach. What we want to be able to do is to government oYcers. We do collate things. I would be facilitate and enable local authorities to have the willing to negotiate and discuss with the Committee tools to put in place planning policies that can help what else you think needs to be done, but the data markets thrive. is there. Anne Main: There have been comments when we have been out and about that central government could get more involved with people at a local level Q301 Chair: The Department itself has not taken by having advice shops, one stop market stalls for any steps to commission research or collect data? example, the equivalent to Citizens’ Advice, advice Processed: 17-07-2009 23:06:03 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr Iain Wright on benefits, getting out there and talking to people What is happening with this?” It has not been rather than expecting people to turn up at oYces. flagged up as a major concern from London Are you looking to make government more Councils in the Department. It certainly has not accessible to local people through the use of come across my desk when I have had regular markets? I gather there was a pilot. We were told meetings with London Councils but I understand in about it. I cannot remember where it was operating. talking to the Government OYce for London that there are issues with regard to the 1990 Act. I think Q304 Chair: I think that was an initiative of Mr Hands mentioned restrictive practice. Maybe I SheYeld Council. would not go as far as that but in terms of having Mr Wright: I think you raise a really important some restrictions it does not help facilitate that flow point. There is an opportunity at the moment in the of competition that is so important. I am certainly recession when there are vacant units both in going to go away and have a look at that. I have a markets and in traditional shopping centres to meeting with London councils this week where I will provide government services and advice for people. mention it but it certainly has not come across my What we are keen to see is a wider vision for the town desk as a major cause of concern in the past. centre which includes markets, which will also have advice about benefits, employment, health, skills Q308 David Wright: Perhaps it has not come across and retraining. I think that is a key part of what we your desk because people clearly do not know where need to be doing. to go. The evidence we have just heard is that there is not a coherent voice for markets within government. Q305 Anne Main: Would you strengthen the You heard one of the previous witnesses say how guidance in PPS6 when it comes out and suggest a diVerent that was in France and how that process wider role for markets in delivering social, economic could potentially reduce bureaucracy and aid liaison community benefits? for example with the EU. Why are we not doing Mr Wright: I think there is an important point that that here? the Committee has as part of this inquiry which is the Mr Wright: If I can answer that by mentioning one importance of social inclusion. I think a key part of of the other themes which seems to be emerging from that is providing information that is of use to this inquiry, which is whether we should have a consumers and citizens in the form of benefits, Minister for Markets or a champion in Whitehall, jobseekers’ advice, health, training, and we can use whether at ministerial or oYcial level, my answer to some of the vacant units that are there because of the that is slightly mixed. I think traditional retail recession and unfortunately because of the demise of markets and wider town centre management span some retail units like Woolworths to help push that such a wide range of Whitehall departments. They vision. cover my Department in terms of planning and urban policy and the interaction with local Q306 Anne Main: A market stall would be cheaper government. I think Defra has a role to play in the for the taxpayer. food standards and maybe farmers’ markets. I think Mr Wright: In my own constituency in years gone the Department of Health has an important role to by, local authorities have put in place stalls in play as well. We have mentioned how BERR could traditional markets that have provided skills and be the favoured department of choice and we training advice for certain members of the obviously have a Minister for Small Businesses. We community. Local authorities can be in the driving have a wide span of diVerent interests that we all seat with regard to this but I do see the recession as bring to the table within diVerent government an opportunity in terms of what our town centres are departments. I await with interest what the for. Shops are important. The retail oVer is Committee concludes but, rather than having it with important but, in the face of other ways in which we BERR, important though that economic stimulus is, can purchase things like the internet, it needs to be markets are much more than just economic something else and civic and cultural amenities developments. Within CLG something like that within our town centres which can include really could sit. There is a good role to play with our good markets can help enforce and consolidate that interaction with local authorities, our responsibility vision which is so important. for planning frameworks and making sure of that wider sense of wellbeing. I can see CLG having a key Q307 Sir Paul Beresford: The legislation in London role to play there. is diVerent. We have heard that from one of the witnesses. EVectively, local authorities are licensing; Q309 David Wright: Do you have any examples they are not managing and running the markets. The where regional development agencies have witnesses from the London Local Authority said supported markets or where national government that the legislation is very restrictive. Some of it is has put direct help in to support specific activity, not ancient. Some of it needs sorting. One of the necessarily on its own? Maybe it has prompted local concerns some of the witnesses had was that it authorities to do it. Is there any strategic evidence needed to be diminished. Have you looked at this? that you have of central or regional government Mr Wright: One of the great beauties of select doing anything proactive to help markets? committees is looking at oral evidence, seeing an Mr Wright: In terms of the big regeneration schemes issue that has emerged and then going away to of the past decade or so—things like New Deal for oYcials to say, “This has not come across my desk. communities, something like £2 billion over 10 Processed: 17-07-2009 23:06:03 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr Iain Wright years; neighbourhood renewal funding which has vision, it is working in consultation and in been about £3 million in the 88 the most deprived conjunction with RDAs, with the Homes and areas—there has been a range of those. What Communities Agency and with other bodies to government policy is trying to do at the moment is ensure that that vision can be realised. not to ring fence specific allocations of money but to provide as much flexibility as possible for local authorities to determine their own policies and Q312 David Wright: Is that phrase “key element of priorities. I think that is the right approach to take. strategy” going to be in the government’s future Local authorities can determine best what is needed strategic documents published by RDAs? It strikes in their own particular patch. Having said that, you me at the moment that we all think markets are mentioned regional development agencies. I would great—a bit motherhood and apple pie—but also mention the Homes and Communities Agency, nobody ever says it in a strategic document at a which is tasked with facilitating the regeneration of regional level. Nobody ever really talks about it at communities in England. I think there is a huge that level. opportunity there. I would also mention the big Mr Wright: I think regional spatial strategies schemes in terms of housing market renewal. I used sometimes mention it but I would certainly mention to work for One North East, which is the north east PPS6 again and that key paragraph—paragraph development agency. There was a specific grant 2.27 I think it is—where local authorities have a role allocated by One North East for market towns to to play in retaining and enhancing markets as part of help stimulate economic development, making sure their town centre oVer. I think that is absolutely that they are attractive, helping to stimulate tourism. crucial. I personally think that is very strong I do think there are specific examples. Certainly in wording for a planning policy statement that is my own direct experience in my working career, I welcome and to be encouraged and local authorities have seen evidence of that. need to act upon that.

Q310 Dr Pugh: Looking at regional development Q313 Chair: David has said that it is all motherhood agencies as a whole, they do tend to favour, do they and apple pie. Are we relying on individual local not, the large infrastructure projects that you can authorities to realise that their market is an asset, not see? Clearly, market development ticks a number of something they are just lumbered with? Is the good economic development boxes: local produce is Government’s role simply to facilitate it or should used; local employment is generated; people are the Government be a bit more directive? attracted to an area and so on, but it is fairly small Mr Wright: I think that is a fundamental policy scale stuV, is it not? It does not change things in the issue, not just focusing on markets and town centres. dramatic way that sometimes regional development You have talked about public lavatories in a similar agencies like to change things. Are you aware way. I am very conscious as a Minister within outside the north east of any behaviour by regional Communities and Local Government that we are development agencies that does positively stimulate trying to have a policy of devolving power and and support markets? responsibility down to local level. Ann CoVey, in her Mr Wright: Specifically in terms of retail led evidence to you, said that central government does regeneration, particularly in town centres, it has not have a role to compel or dictate with regard to been a key feature of the past decade. When regional that. I think that is the right approach to take. We development agencies have been involved in that, can facilitate. We can provide strong, robust the relocation of markets has been an important planning and policy frameworks. We can provide consideration. Sometimes that has worked. One of guidance. We can provide encouragement. We can the considerations of the Committee has been the provide funding to some extent through local siting, location and place of markets. That is authorities, through RDAs and through the Homes absolutely crucial. In direct answer to your question, and Communities Agency but, in terms of where we what I would suggest is that the relationship between sit, you must have a market. I do not think that is the regional development agencies and local authorities role of central government. I think local authorities and the interchange and conflict between them is the should determine what is necessary in their area to right approach to take in terms of how markets and produce their vision. town centres fit in with the regional development agencies. Q314 Sir Paul Beresford: Those who want a champion, a minister whose portfolio includes this, Q311 Dr Pugh: The onus would be on the local want somebody who can pull it together. You authority to talk to the local traders and so on and described a dog’s breakfast of legislation in all the then put the proposition to the regional development government departments. No one pulls it together agency rather than expecting the regional and what markets are saying to us is that if a tiny development agency to adopt a hands on approach, corner of your role or BERR’s role was that every dealing with each individual market trader in a time anything linked to the markets came across a market? desk it also came across that minister’s desk and Mr Wright: In terms of best practice, what I would people in the local government and the markets had like to see is local authorities having a vision for their a problem with a new piece of legislation coming town centres in which markets need to be a key through, they could come to a minister who consideration. In terms of trying to determine that understands. Processed: 17-07-2009 23:06:03 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr Iain Wright

Mr Wright: I would still reiterate that in terms of surely you should set a lead with perhaps good anything to do with planning or the relationship guidance and good practice to local authorities and with local government, CLG is well placed to try and maybe even a bit of help with funding to perhaps deal with that. DiVerent departments bring diVerent ensure that there is training available for people who agendas for a whole variety of reasons and that is to are going to manage markets. Do you believe there be welcomed. should be any expertise or expert help available to local authorities? Q315 Sir Paul Beresford: I have been a minister. I Mr Wright: I would suggest that, with respect to know that you can still have anything involving good practice in terms of how you manage markets markets come across your desk and the markets that and the wider point about town centres, central are having trouble with a particular department government has provided guidance. We provided could come to you as a champion or somebody else. guidance in 2005. That was updated in 2007. We Mr Wright: I think there is certainly consideration to have provided a toolkit for local authorities. be given to the idea of some sort of champion within Whitehall. I think that is to be encouraged because, Q318 Anne Main: Specifically with markets in mind? as I said, I can see that sitting within CLG. People Mr Wright: As I said, important though markets are will have diVerent matters with regard to whether it in terms of the wider retail oVer, I also think it is should be BERR or not, but in terms of that wider absolutely crucial that in order for markets to thrive sense of community with local government and that they need to be seen in the wider context of town link in with urban policy I think there is a role to play centre strategies and good, positive, proactive town in there. As I said, Chair, I am very interested in the centre management where there is an emphasis upon Committee’s conclusions with regard to this but I increased competition in terms of a good diversity of think we do have a strong and robust framework in what is on oVer in terms of that retail oVer and in Whitehall at the moment. DiVerent departments terms of other things like culture and recreation. I bring diVerent things with regard to their interests think that is very important and I do think that local in markets. authorities have a key role to play in that.

Q316 Anne Main: You have partly answered my Q319 Anne Main: Some towns see their market as a question but stallholders are happily saying to us bit of a messy area that they would not mind if it that the trouble is that it is almost a brief that withered on the vine and went. I am not saying that nobody wants and it also just seems a money- is very true in many areas, and in fact it is probably collecting exercise, yet they, as small businesses, not true of how the public see it, but if you were might contribute a lot to the community; they might perhaps to consider oVering a lead in this and better contribute all sorts of social and other welfare guidance to local authorities, they might start taking benefits to a community in terms of cohesion and markets seriously because, in terms of all the benefits integration, but they have no-one that they can go to you are talking about, how much of that do you say to access anything in terms of business advice, in to local authorities? Do you actually say,“Deliver all terms of being involved in decision-making about these benefits”, which is why markets suddenly start how the business as a whole operates within their becoming a special case, because I do not think W H own city. I think it would be important if the Smith, for example, sees itself as delivering all those Government actually made that conscious decision other benefits that you have just outlined? that they suddenly pull all those strands together, Mr Wright: No, but, as I said, I do reiterate the point because the trouble with it falling to everybody’s about that wider, proactive town centre strategy, and little patch means that everybody says it is not their we have provided guidance. We provided a good responsibility and they push it to somewhere else. If practice toolkit in October 2008 with regard to that. I were a market stallholder where would I be expected to go? If I were a small business I would Q320 Anne Main: Does it mention markets? What know where to go, but they are small businesses of a does it say about markets? specific sort. Mr Wright: It needs to be considered in terms of a Mr Wright: I would suggest the local authority needs good, diverse retail oVer that also incorporates civic, to be in the driving seat here. Again, one of the things recreational, community and cultural amenities. I have been struck by when reading the oral hearings for the inquiry is that good, positive, proactive Q321 Anne Main: Did it actually mention the word management, both of markets and the wider town “market” in there? centres, means that markets can thrive. Mr Wright: I think it did. I would need to confirm and check back on that. Q317 Anne Main: Are you aware that in local authorities the person with the responsibility for Q322 Anne Main: Because if it did not mention markets may well be having the responsibility for, “market” at least once in there people might assume say, parks and gardens, which I think was one of the that toolkit did not really include markets. ones we were told may well have town centre Mr Wright: But I would come back to that management, may well have a diVerent brief entirely, important paragraph 2.27 of PPS6, which is, as I may be the planning department. Because in said, very strong about town centres and local government there is no central vision of this there is authorities needing to consider as part of that wider often not at a local level either. As Government strategy retaining and enhancing existing markets. Processed: 17-07-2009 23:06:03 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr Iain Wright

These are potentially a great oVer, and in the face of confusion that there is out there about who is huge economic pressures, in the face of intense supposed to be responsible for these matters. If you competition from the internet and other things, could let us have a note on that it would be helpful. markets can provide a distinctive oVer. They can Mr Wright: It certainly has not been me, Chair, but help people of all diVerent ages and all diVerent I will let you know. income groups. Local authorities I think are best placed to recognise that and to determine what is Q328 Mr Hands: How often do you meet with needed in their particular area. representatives of the markets industry? Mr Wright: Very rarely, I have to be honest. Q323 Anne Main: So you will be retaining that? Mr Wright: What we are trying to do is streamline Q329 Mr Hands: Have you ever met them? planning policy statements so that we give them the Mr Wright: I think I have but it might have only new planning policy statement, Planning for been on one or two occasions, so yes, I hold my Prosperous Economies, which we will be publishing hands up and say I have very rarely met with them. shortly. Q330 Mr Hands: You think you have but you are not Q324 Anne Main: It will have the word “market” even sure if you have? prominently in it? Mr Wright: No. I have been Minister for about two Mr Wright: I am afraid you will have to wait on that. and a half years. I think it might have only been the once. Q325 Chair: Just before we move on to the issue Q331 Mr Hands: Would you therefore be in a which Mr Hands is going to ask about, can I just position to be able to answer the next question—I clarify something on this issue relating to London am not sure if you would—as to whether you think local authorities? We have read the evidence that we the industry should be doing more to help itself and had, I think, last time. The clear message that we what the industry could be doing to help promote have had, from certain London authorities anyway, markets and to help the better functioning of is that they want to change the legislation as it markets? operates in respect of London councils. In order to Mr Wright: I think I am in a position to answer this. do that they have to change the London Local One of the great initiatives that I have noticed when Authorities Act through Parliament. Are you saying I have been researching this particular Select that those authorities which are actively seeking to Committee’s inquiry is the web-based forum. I think change the London Local Authorities Act have not it has been a hugely successful event with a lot of spoken to DCLG on this matter? traders having feedback and putting their views in. Mr Wright: They have certainly not spoken to me or They say people should speak to traders more and my oYcials with regard to this. My understanding is there is a case for that. What I also think is that that the 1990 Act has been subsequently amended traders should speak to local authorities which help almost on an annual basis throughout the 1990s. I manage markets and town centres, and more will promise to go away and have a look at this but, interaction should be made with consumers. There is as I said, no-one has ever tried to lobby me on trying a traditional thought that says that the traditional to change this particular piece of legislation. retail market is declining. I think there is conflicting evidence with regard to that, but in terms of what is Q326 Chair: The question that I am asking, and the on oVer, what sort of service is provided and, point that David made that there is not a minister of crucially, how you pay for that service, my markets so they would not necessarily know which understanding is that most markets deal with cash minister to go for, is about the process. Are the and it is a case of would credit and debit cards help London local authorities liaising at all with DCLG facilitate greater trade? That interaction is when they keep seeking on an annual basis to modify important. In terms of your specific comment, I the London Local Authorities Act, or are they doing think good management between the local authority it entirely oV their own back while liaising with some and traders can help do that. other government department? Mr Wright: As I said, Chair, they have not come and Q332 Mr Hands: So you are saying that better contacted me for me to do something with my interaction is the answer but you yourself are not ministerial hat on with regard to planning. Let me go sure if you have ever interacted with the industry? away and inform the Committee in terms of whether Mr Wright: And I hold my hands up there. they spoke to any other ministerial colleagues. It could be, for example, that they have gone to John Q333 Mr Hands: Going back to where we started Healey as Minister for Local Government. from, which is where markets find their natural home in government, Mr Nicholson and the other Q327 Chair: It is not simply ministerial colleagues. It contributor earlier were quite clearly of the opinion is who the London local authorities, when they seek that it should be under BERR. I think Mr Nicholson to amend on this annual basis the London Local made the point, which I think sounded very valid, Authorities Act, are communicating with at a that the most important thing about a market is that parliamentary or civil servant or ministerial level, people have to want to run a market and have to because I think it would help to illuminate the recognise that it is something that has to be Processed: 17-07-2009 23:06:03 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr Iain Wright economically viable, so the social benefits or promotion of locally produced produce or fair trade community benefits have to definitely be viewed products in particular communities. What more can secondarily. A market cannot survive unless it is we do? viable, so can I come back to the point whether, Mr Wright: I think Defra has been very strong with given the fact you are not sure if you have ever had regard to this and has helped push, promote and to a meeting with the market industry representatives, some extent fund the expansion of farmers’ markets. you still think DCLG is the natural home or whether Farmers’ markets typically seem to be the it should be moved to BERR? promotion of local produce, helping local producers, Mr Wright: Yes, I think that Communities and and I think in terms of that, in terms of having an Local Government should be the central point for impact upon the environment, reducing air miles markets, one, because of its planning functions in with respect to food produce, Defra has been quite respect of providing a good planning policy strong. That is the key consideration that I would framework, and more important than that perhaps mention. In terms of advocating fresh fruit and is the interaction with local government. Given the vegetables, particularly locally produced, Defra has responsibilities for local government that CLG has, provided help for farmers’ markets. I think that would be the natural place for it. Q337 David Wright: You have talked a lot about Q334 Mr Hands: Can I urge you, if you think that town centre regeneration and I think we all accept DCLG should be the central point for markets, to that markets can be a key component of that. I am indeed have a meeting with the market industry as just wondering, if you are going to take a lead as a soon as possible? If you think that is the case, then Minister, what other departments you would see logically you should want to have that meeting. drawing in. Presumably Defra? Mr Wright: I think that is a fair point. What I would Mr Wright: I think Defra is important in terms of say is that over the past 20 or 30 years—and, Anne, food. What I would like to see, and it could be on this is going back to your point that perhaps a lot of market stalls and it could be as part of the town local authorities have shunted markets into a back centre and I think this is very consistent with policy corner—I think markets have been quite in this particular department, is the Department of unfashionable. One of my other interests is Health’s policy that you push local health services as allotments and I think markets are now going to locally as possible, and the idea of having health come back into their own in a very similar way to checks, having GP practices or some degree of health allotments. I think there is an awful lot of interest in service in markets or in town centres I think needs to this, I think there is an awful lot of opportunity with be explored more. I think that is a potential avenue regard to the current recession, and I think we are of growth. The Department for Innovation, going to see a renaissance in markets. I am quite Universities and Skills has also got a bit of money optimistic here and that is why I think this inquiry is which is pushing forward the skills agenda, so quite well timed. having advice and support and opportunities to access training in markets and in town centres is Q335 Mr Hands: You are basing your optimism still another opportunity. It is all part of the answer that not having met the market industry? I tried to give earlier to Anne in respect of accessing Mr Wright: No. I am basing this upon what I think government services at the very centre of town. we need to do in terms of economic development, in terms of regeneration, which is to have town centres at the very core of that. I think good, active town Q338 Anne Main: Who is going to take the role of centre management, incorporating a whole range of suggesting that to those departments? Who is going things, as I said, whether it is retail, whether it is to take the role of suggesting to health or to the cultural, whether it is providing information about education department that maybe this is how you government services, can be done in markets and in ought to be getting in contact with local people? If that wider town centre. That is why I am optimistic. nobody is going to champion it and suggest this On the second point, as I said, where people can buy multi-faceted tool that could be the market to all things electronically at home in their pyjamas, these diVerent departments, how is it going to shopping centres and markets have to oVer happen? something more, a destination point where people Mr Wright: I would suggest that is already can go and meet and congregate and access cultural happening. With regard to the health example, the and recreational services—that is where local Department of Health talks to primary care trusts authorities need to be at. which in turn commission services, and that push, which, as I said, is very consistent with trying to provide health services as locally as possible— Q336 David Wright: I have not bought anything in my pyjamas yet. I would like to put that on the record! You have described how you want to meet Q339 Anne Main: We have not had express with the market sector, you want to start to explore representations to us saying this is happening. I national issues. What links can you see the would be quite interested if we could have some Government developing in terms of using markets to evidence to show how widespread that good practice promote national policy goals? Healthy eating is a you have just described is, because my good example, the availability of fresh fruit, the understanding was, talking to somebody we met on Processed: 17-07-2009 23:06:03 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr Iain Wright the market, that there were a few odd pilot schemes shop. Leaving aside the empty retail units, is there here, possibly in areas of major deprivation, but it anything you are going to be doing to markets to say certainly was not a widespread practice. that this is how this is going to happen? Mr Wright: Okay. Mr Wright: I think one of the things that government has to grapple with is how it gets its message across on a whole variety of things. In the Q340 Chair: Can I just follow up on that point? In electronic age, in terms of whether we use the evidence from the Department, Minister, it was direct.gov.uk but also for people who may not have stated that the Government intends to develop access to the internet in deprived areas like my own, detailed policy statements over the coming months, how do you get that message across? I will hold my “oVering advice and guidance at the local level” hands up again and say I think we can be pushing based on the Markets Policy Framework produced that a lot more in terms of using markets, using by the All-Party Parliamentary Group. How far places where people congregate to get important have you got in those policy statements and is it government messages across. going to cover the sorts of detailed issues that we are Anne Main: So how would it happen? currently talking about? Mr Wright: We are at a relatively early stage in Q343 Chair: There are two slightly separate things respect of that. The timescale is the next couple of here, both of which are important. One is the use of months and what I would like to see is an element of markets to get messages out, but the other issue consistency with regard to that wider planning behind that, and I am not clear whether it is going to policy statement of Planning for Prosperous be within this advice and guidance that you are Economies, which I think is very important as well, currently considering, is the role of markets in so I will keep you very closely posted on that. delivering wider national policy goals, one of which, for example, is access, for people on low incomes, to Q341 Anne Main: Minister, could I ask you though, fresh fruit and vegetables. Many people say that because you did not answer my question, I am sorry markets are a really good way of doing that. That to say, what information have any of the appears to be a national policy goal. Is that going to departments been given, and can we have evidence be one of the things that is spelt out in the advice and that they are actually disseminating this good guidance at a local level on markets, for example? practice, that it is not just the odd pilot scheme? Mr Wright: Let me go away and look at that in Also, who would co-ordinate those best practices particular with regard to health. Can I mention that you think are happening? How do we know? another matter, which is— Who is doing it? Mr Wright: I have mentioned two. This is on the Q344 Chair: Hang on a minute. In terms of the work wider point of town centre management and that which the Department has done thus far on the point which I think is very important about advice and guidance at local level which you are providing a vision about what a town centre does. In apparently developing over the next few months, the 21st century what can it oVer local people? I have other departments already been asked to would suggest that it needs to be more than just contribute to that? shops. It needs to oVer that wider point about Mr Wright: I am not entirely certain so I will need government services, about health, about retail. In to check. terms of trying to address that whilst at the same trying to address the specific concerns of the Q345 Chair: Who has been doing it within your recession, you may be aware of the announcement Department then? and the publication of new guidance last week from Mr Wright: In terms of the ministerial responsibility the Secretary of State from my Department, Hazel or in terms of oYcials, because there are oYcials Blears, and also Andy Burnham at DCMS, which is working on it? what town centres need to do in the current recession. It could be to try and be as flexible as Q346 Chair: So there are oYcials working on it, but possible, to use vacant units to encourage who has ministerial responsibility? community groups, voluntary residents’ Mr Wright: I have ministerial responsibility. associations and health groups in order to push that vision. Q347 Chair: But you do not know exactly what they are up to? Q342 Anne Main: I was specifically talking about Mr Wright: Can I mention a specific example from markets. The one thing about markets is that you do my own constituency with regard to getting the not have to take a shop unit for six months or a year. message across? In terms of jobs, Hartlepool You could have a stall for a week here, a week there. remains relatively high in terms of unemployment. It can be an ever-evolving process, assuming there is There is an agency funded by the local authority a vacancy, and you did suggest, before you moved called Hartlepool Working Solutions, and we have helpfully on to retail units that might be empty, that an indoor covered market in Hartlepool where a stall you thought that this would be a vehicle for delivery was taken— of other government areas of concern, such as healthy eating and information about benefits, and Q348 Mr Hands: We are back to your ministerial you mentioned some sort of medical advice one-stop responsibility. Processed: 17-07-2009 23:06:03 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG4

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20 April 2009 Mr Iain Wright

Mr Wright: I think it is very important that local Mr Wright: In terms of liaising with regard to make authorities also have a role to play in terms of sure that a planning policy statement is published? diVerent agencies. Q352 Anne Main: No, no. If there is a health objective, for example, so that is the Department of Q349 Chair: Hang on; we are not letting you oV the Health, not DCLG, who is going to be talking to the hook so quickly. As you know, we are in the middle Department of Health to ensure that what they wish of writing up our report on the balance of power to happen is reflected in your planning policy between central and local government, so take it as guidances? read that we do not think that you should be, Mr Wright:OYcials from my Department will be Stalinist-like, telling councils that they need to do liaising with their counterparts in the Department this and they need to do that. What we are asking is of Health. whether, if government believes that there are some national policy goals, of which an example would be Q353 Anne Main: Is that happening at the moment? access to cheap fruit and veg which can be delivered Has that all been set up? through markets, that sort of guidance, not Mr Wright: My understanding is that it has, yes. instruction but guidance, is part of these detailed policy statements which your Department is Q354 Anne Main: So there will be an oYcial liaising currently developing. That is the first question. with BERR, because it is the business side of it? Mr Wright: And I would certainly say that is my Mr Wright: Yes. There are also very strong links ambition, yes. with Defra. Anne Main: Defra is an obvious one, if I might say. It is the other parts that are not so obvious that we Q350 Chair: The second thing then, since it is quite are trying to get at. clear that these policy things are pretty vague at the moment, is that it would be very helpful to us as a Q355 Chair: It is also within your own Department. Committee to know the timescale on which they are There is a role for markets within community going to be finalised so that we can make sure that cohesion, for example, but it is within whatever bit our report gives you lots of stuV that you can put in it is of the Department that is doing markets. these policy guidelines. Mr Wright: My understanding is that, yes, it is. Mr Wright: I will certainly make sure in the next Chair: I think, Minister, we might have to write to couple of days that you get the timescales. you after this with a series of questions to make sure Chair: That would be extremely helpful. we have covered everything, but we would certainly like a note from you afterwards on the time line so that we can make sure that we can contribute to this Q351 Anne Main: Since you are responsible for area of policy which is clearly quite skeletal at the markets, and obviously we have just mentioned moment. health, who would be liaising between those other Anne Main: But vital. departments? Who will have the responsibility to Chair: But vital, absolutely. Thank you very much, do that? Minister. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [SE] PPSysB Job: 428788 Unit: PAG5

Ev 56 Communities and Local Government Committee: Evidence Written evidence

Memorandum by Darlington Borough Council (MARKETS 01) 1. This information is supplied by their Markets Manager, Peter Wilson who has been in post since early 1973, ie almost 36 years. The Council took over the control of the Charter Market from the Bishops of Durham in 1854 and can trace their history back to 1003 and the present range of undertakings remains substantial; A six-day per week Covered Market (opened in 1863) housing 73 stalls and 18 periphery shops (added in July 1954), A twice-weekly outdoor General Market held every Saturday & Monday, A bi-monthly outdoor Craft Market (second & fourth Fridays), A monthly outdoor (FARMA) accredited Farmers Market (third Friday), A monthly outdoor Food Market (first Friday). In addition, the annual calendar includes a number of very large (ie up to and in excess of 300 stalls) “event markets”. Examples are the French & Continental, Green & Eco, Summer Spectacular, Christingle & Winter Wonderland. These can generate (evidenced) footfall in excess of 325,000 (which is three times the Borough’s population) so there eVect on the town centre is significant. Darlington is also very proud to have been awarded the NABMA Market of the Year (Special Attractions) 2008 title and the UK’s Northern regional title “Greenest Market” by NMTF, again in 2008. These demonstrate a market town where markets are very much part of our rich heritage, yet they also represent a strong feature of the modern day shopping experience. I now turn to the focus of the Committee’s inquiry: — How has the picture changed over the past 10 years? — Are the numbers and types of markets in decline? If so, why? — Are there obstacles preventing the creation of more markets? — Are there obstacles hindering the successful business of existing market operators and traders? — What has been the impact of specialist markets eg continental and farmers markets, and do such markets integrate successfully with older markets? 2. Markets have to compete with all other forms of retailing, including the Internet. Retailers have diversified (ie forecourt stations now sell a wide range of produce) and some target market customers (ie Morison’s “market street”, Pound shops, Wilkinson’s etc). The growth in Sunday trading aVects markets. The growth of Car Boot sales aVects markets, much more so where they become debased and introduce new goods. Transport policies and access to parking aVect markets. Pedestrianisation can alter footfall patterns in town centres. Planning restrictions on signage aVects markets; particularly the smaller specialist types ie farmers. Lack of finance, including re-investment has left many markets starved of funding, even though they have been a net contributor for hundreds of years. The great majority of markets do not oVer “cashless sales”. There is no recognised form of trader training with acknowledgement of transferable skills (then leading possibly to licencing/registration) so to build upon the confidence of shoppers. Costs of travel including fuel, limit traders access to markets. Lack of (previous) cohesion from the leading industry bodies has disadvantaged markets—this is now addressed through the RMA and its APPMG—very much welcomed and no doubt partly responsible for this inquiry. 3. In Darlington, which indeed reflects the national picture, the size of the general outdoor markets has seen significant reduction (albeit the trend began over 10 years ago), due in part to the above factors. Therefore account must be taken of current shoppers expectations and the introduction of the specialist markets, in all their guises has helped to reverse this eVect. They can be made locally to integrate very well but do then require support from the Town Centre Manager. Many factor in entertainment to extend the shopping experience and include all demographic types. 4. There is a saying, “that in a shop you buy something whereas in a market you are sold something”. Some people just seem to have the gift of selling and l have witnessed some “ethnic minorities” display a natural tendency towards this. However most traders (a good example of this is diversifying farmers) either Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

Communities and Local Government Committee: Evidence Ev 57

learn this critical business skill or suVer throughout. One of the advantages of market trading is that it is very easy to access, but this also works in reverse—most traders fail to put together a proper business plan, there is (to them) no real access to retail training, support networks etc. The basic question must also be asked, why do they want to become self-employed as a market trader? Large-scale unemployment in the past led to migration into this sphere of retailing but unless the person has business acumen, they will not develop and expand their business, if at all maintain it. 5. The success of any business rests not with what they sell but with what they buy…this determines the interest shown by customers and provides for the profit margins. Market traders now more than before require access to “wholesale” goods and many of these have ceased to trade themselves as markets have shrunk. Again a key skill of securing goods is required, even to the potential of direct importing/internet purchasing. 6. In simple terms a market is a concourse of buyers and sellers, all operators need is the skill and resource to achieve this, so creating markets even now does happen but the most important feature is to look after the customer—before considering the trader, then the operator. This establishes and maintains sustainability because traders, despite their peripatetic nature, rely on developing a relationship with customers who need to have the confidence they will “be back” to make the oVer and deal with any refunds etc. Local authority markets l would argue have additional accountability/responsibility to all concerned but many undertakings have gone or transferred into the private sector through lack of funding—either to maintain the resource or train their OYcer’s to an acceptable level of qualification. — What social and economic eVects do traditional retail markets have on their local communities? — What qualities contribute to a successful market delivering social and economic benefits, and are there examples of best practice that have a wider application? 7. Why have markets at all? They pre-date all forms of trading but now surely many of the goods on display can be found elsewhere? This is true in part but it is also true that many town centres replicate each other (multiples can be found on most high streets) but markets are individual to the immediate locale. They provide many benefits, some of which are; low level entry to developing entrepreneurial skills without the constraints of leases, contracts etc, self-employment opportunities, trader’s peripatetic access to a range of towns and cities, markets and particularly the outdoor types are fully accessible to traders and customers alike and so create social inclusion. There have been “waves” of certain trader groups ie Jewish, Indian & Pakistani and latterly Continental & Eastern European, retail diversity and added interest (to include atmosphere, sounds, smells etc)—the range and scale of goods can be infinitely flexible depending on the mechanisms of management, the scope of markets is flexible—inviting farmers, craft persons, continental traders, auto marters, car booters etc to engage in trading, evidence reveals that a higher percentage of revenue from these independent traders is retained for the benefit of the local economy, customers genuinely feel that they belong in their local market and use the locale to maintain networking relationships. Some traders report generations of customers and customers identify with their own market town image, our markets provide a free stall to all non-profit making groups and a free stall to any local business (regardless of type) essentially as a physical advert—thus we engage with all sectors of the community. 8. The diVerence between a small failing market (that has little diversity of product, is uninteresting, does not have “critical mass” etc) and a large successful market (that has these good qualities) is size—because size, properly managed overcomes these bad qualities. In previous times general outdoor markets dominated and l believe they will not return to that level so size (in terms of how all patrons of markets perceive them) is achieved by a critical mass of all the markets operated in that locale. Diversity is key—their undoubted popularity demonstrates they meet customer’s expectations in delivering a high quality of choice. In addition for farmers markets etc they deliver on agenda’s for local choice and access to food. 9. Best practice can be learnt through a variety of mechanisms but the imposition of performance indicators has not achieved this and cannot relate to the private sector. Markets are very diverse and their unique local character will not reflect the full type and range so comparisons are diYcult to make. However the Retail Market Alliance (which does include all those connected with the industry) can introduce initiatives to demonstrate best practice—particularly where individual elements can be taken back by individual operators, traders etc to their own markets where they are “fit for purpose” and relevant. An example of this is the NABMA and NMTF competitions where the criteria submitted can be readily disseminated and if feasible, applied locally. It is in eVect an extended form of networking, which layers on top of the NABMA & NMTF structures that already have regional & national representation—even to the Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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APPMG. These organisations ought to have suYcient depth, expertise and experience to deliver nationally applied agenda’s. Here l would as examples, proVer trader training and registration through the NMTF and funding streams, consultations and management (to include a national set of byelaws, regulations etc) through NABMA. To achieve these and thus overcome many of the existing barriers stated herein they require a national mandate from Government. — Does local government support markets eVectively? — What are the advantages and disadvantages of local authorities having powers to operate markets? — Does central government support markets eVectively? If not, what additional support should be provided? — Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration? — Do local and national planning regulations support or hinder the development of markets? — Do licensing regulations support or hinder the development of markets? — What improvements could be made to the planning and licensing regimes to aid the development of markets? 10. I think here you must begin with the questions of why and how local government first became engaged with market operations. As previously stated, markets pre-date all forms of retailing but such a strong force of economic influence quite naturally required regulation and control. The power to hold markets, regulate them and charge a toll was granted to achieve this (in the early days usually by Royalty to a position of influence which no doubt engineered reciprocal benefit). This also demonstrates the existence (and continuing need) for such Charter markets to have protection—otherwise the benefit (if freely obtainable to a rival) was null and void. The benefits later transferred to Local Boards who were then controlling and regulating such aspects— many such as Darlington bought these rights. Without local (government) involvement there would have been no regulation or structure to the proceedings. Of course with control comes the power to levy fees (much as any landlord imposes a rent). 11. Local authority managed markets for many years enjoyed a position of influence and derived a steady income stream from the tolls applied. They did in many areas seek to improve the trading conditions for all, and examples of this are the build of “covered in markets”, cleansing, refuse, weighing of goods, smoking, aisle clearance, meat and general provisions to be fit to eat, and the separation of livestock sales and butchering of meat into other areas to improve hygiene etc. Other examples are local byelaws and regulations covering the hiring of (farm) labour, sales of pets etc many of which were later dealt with through nationally applied legislation. These are all contained in a set of Byelaws that were sealed here exactly 100 years ago. It is true to say though that re-investment, particularly in the covered markets did not reflect that income and many now cannot oVer a structure that can equally compete with modern trading demands and customer expectations. Those that have been “modernised” can, so all that is required is the access to funding—the refurbished markets demonstrate they still very much have a place in the retailing sphere. 12. Equally political, financial and management structures in the local authority must positively support the markets. Managers must be trained to have the skills and traders must be supported to become established and prosper. Local authorities through their extensive networks, town centre managers, regeneration units etc can act directly or as a conduit to bring about this support. As an operator or landlord of a commercial enterprise that influences the local economy, they accept political accountability and moral obligations to the local electorate. The markets that have transferred to the private sector have done so because these attributes have been allowed to fail. A private market operator will include most if not all of the local authority regulations, even to include the “charter protection” to maintain the markets. Remember also that the planning and licensing regulations must be equally applied to them so there is no actual proof that a private sector market must be better than a local authority market; each can possess the resources and skills to operate successfully—for the benefit of the local area. 13. Local authorities are however more likely to engage with the whole community, ie businesses, transport users of all types, Town Centre Managers, Town Centre Partnerships and Forums, Disability and other such stakeholder groups. Indeed in Darlington a constant feature of all consultative processes is the active use of the markets to engage with the community. The NHS & PCT use the markets in a similar way and sponsor Food Festivals (with food choice/purchase/cooking demonstrations et al) to meet their agenda targets/aspirations. Local authorities manage Planning, Licensing, Trading Standards and Environmental Health OYcers who can jointly contribute to a successfully managed market operation. This can be achieved through local community involvement in a transparent and accountable manner. 14. Markets are though a commercial enterprise and the financing arrangements should reflect that. They should be run on a financially independent basis with revenue being used to maintain the business and access (in common with other qualifying applicants) to external funding/capital injection. To use the monies to supplement other uses and see the markets suVer from a lack of investment would not make them sustainable—there is suYcient proof of this already. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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15. Mention has already been made to markets positive contribution to social cohesion—they are fully accessible to all users and the recent creation of farmers markets promotes this further, in some cases linking the rural to the urban. The presence of food stalls is increasing in line with the demands of the customer and national agenda’s too. To maintain their unique role, markets readily adapt to promoting healthy eating and access to local food/drink—assisting also the environmental concerns.

Memorandum Submitted by Patricia Grey—Fareham Town Centre Manager (MARKETS 02) This is a response from the Fareham Town Centre Manager. Fareham Borough Council funds her salary but does not provide an operating budget. Fareham Borough Council operates a weekly street market every Monday. Fareham Town Centre Management runs monthly farmers markets and ad hoc speciality markets.

Traditional retail markets today — How has the picture changed over the last 10 years? Smaller general street markets, emergence of farmers’ markets. — Are the number and types of markets in decline? If so, why? Strong oVers from supermarkets and budget supermarkets, emergence of £1 and value retailers. — Are there obstacles preventing the creation of more markets? Not particularly. — Are there obstacles hindering the successful business of existing market operators and traders? Yes—competition. — What has been the impact of specialist markets eg continental and farmers markets, and do such markets integrate successfully with older markets? Specialist and farmers’ markets attract a diVerent customer. They do not integrate with regular street markets, either from the traders’ or the customers’ perspective.

Their Social and Economic eVects — What social and economic eVects do traditional retail markets have on their local communities? They create a social hub. Whilst not all retailers benefit (because of the customer base they attract), most of them do claim that street market day is their busiest trading day of the week after Saturday.

Realising the potential of traditional retail markets — Does local government support markets eVectively? Yes, it runs the traditional street market. — What are the advantages and disadvantages of local authorities having powers to operate markets? It can keep rentals un-commercially low. Fareham Town Centre Management is supported by R Ayling, Boots, Fareham Borough Council, Fareham Shopping Centre, Hampshire Police, Human Factor Solutions, LA Fitness, La Orient, Lysses House Hotel, The Market Quay Shopping Centre, Marked & Sparkling, Marks & Spencer, Robert Dyas, Rovers Tackle, Southampton & Fareham Chamber of Commerce, The Crown Pub, Warner Goodman and Wilkinsons.

Memorandum by Mel Hilbrown, Executive Director of St Albans Enterprise Agency and Director of St Albans Chamber of Commerce, writing in a personal capacity (MARKETS 03) 1. TraditionalMarketsToday 1. Last 10 or more years, some markets have become a shadow of their former lively, bustling selves eg Roman Road market in Bow London, which in the sixties was a large bustling market with a great selection of stalls, attracting people from a reasonable area, and now consists of a very few and down-at-heel that no- one would travel to visit. This may reflect the state of the local economy. Products have changed over time but the core of almost any market remains fresh produce at great prices—often stock needing clearance— in this sense markets help reduce waste. It is noticeable that in times of economic downturn in St Albans we are hearing reports of those who would have never used the market now buying there. So markets also help those in deprived areas get better value but also those who may be deprived in wealthier areas. They are also a superb outlet for small entrepreneurs who otherwise would not be able to aVord a shop-front. So several important social and environmental functions. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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2. I suspect traditional markets are in decline—see above. Sometimes change in the local economy; sometimes lack of attention and support. Like any economic activity there is a vicious and a virtuous spiral. Without action, it is diYcult to stop a decline once it starts; if things look good the markets will grow—look at the success of Farmers markets and visiting Continental markets. I suspect types of market are on the increase. Also the large Sunday markets (in Herts there is a massive one held at Bovingdon airfield). 3. The above comments would suggest not, but I do not have any broad view on this. 4. In St Albans there has not been a big problem for the traditional market from the continental markets.

2. Social&EconomicEffects 1. Traditional markets are: i) a community focal point, creating a vibrant environment. ii) help with footfall in the City,increasing traYc for other retailers and coVee shops and cafes iii) an opportunity for local entrepreneurs to launch/test new ventures iv) a provider of low cost products often not generally available in the shops v) part of our heritage, many going back to the Middle Ages. An established market can be a major attraction, source of pride etc vi) they also involve walking in the fresh air which is probably a health benefit. 2. Qualities required are a stallholder-friendly environment/management, a good catchment area in terms of numbers/spending, a good space to operate on a reasonable scale, good public transport links, and other local attractions if possible. The issues are not massively diVerent from those desirable for any retailer.

3. Realising thePotential 1. I would guess local government support for markets is variable. There are a number of areas of relevant support, including security issues, promotional issues and management issues—because markets are only a minor part of local government activity, it is easy for the management of this area to become someone’s little fiefdom, where bureaucracy and exercise of control can take precedence over marketplace objectives and eVectiveness. A market is not essentially that diVerent from a shopping mall and needs a similar market- oriented focus. 2. I cannot see who else other than local authorities could operate a local market eVectively. 3. I am not aware of any central government support for traditional markets. They are, however, part of our heritage and some support/promotion could be useful. 4. I am sure government could use markets to support social cohesion and health (they are open-air and get people used to wandering!). They might help regeneration, but successful markets are more likely to be an outcome of a broad regeneration package rather than a stimulus for it. They are commercial entities which must be commercially viable, not some social enterprise.

4. Planning&Licensing 1. Not sure about impact of local planning. 2. Not sure about licensing regulations impact. 3. No view on this.

Memorandum by Western International Market Tenants’ Association (MARKETS 04) Summary ofEvidence Traditional retail markets have been in decline for several years. We believe this is not in the public interest and every eVort should be made to rejuvenate them. The basic cause of the problem, is that the number of customers shopping at markets has reduced, to the extent that many stallholders are not viable financially. We suggest that government could help to make vendors profitable and sustainable through such measures as: — Development of a retail market’s advocate. — Infrastructure improvements. — “Market Health Check” surveys. — Promotion of market halls in southern England. — Encouragement of new entrants to the industry. — Regulation of “scoop” trading.

1.0 Introduction The Western International Tenants Association, represents the 50 or so wholesalers selling horticultural produce from the Western International wholesale market, in west London. Vendors at traditional retail markets represent a significant part of the customers at Western International wholesale market, so tenants are keen to see this sector prosper. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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It is important to remember that running a retail market stall is a commercial activity, which will only be sustainable if acceptable profits can be made. Many factors influence the business viability of stalls. In our evidence, we have tried to concentrate on those that can be influenced by central and local government. To do this, we have followed the basic layout of the committee’s “Call for Evidence”.

2.0 TraditionalRetailMarketsToday 2.1 It is hard to find anyone who does not agree that retail markets are an important part of Britain’s commercial and social life. Despite this, they have been in decline over the last 10 years, in terms of both numbers and turnover. Stallholders selling foods such as healthy,fresh produce, seem to have been hit harder than those in such sectors as, clothing and fast foods. 2.2 We believe that the main reason for this decline, has been the reduced numbers of consumers shopping at retail markets. Key reasons for this include: (a) They think supermarkets are cheaper. (b) It takes longer to shop at markets than in a supermarket, where they can get all their needs in one place. (c) Weather conditions can put shoppers oV (eg. rain and cold). (d) Car parking is often not available nearby, or too expensive. (e) Market business hours are not convenient. (f) Some market traders have a poor image, so customers fear they may be cheated. (g) Concerns about food safety. (h) Believe the quality of goods in markets is lower than shops/supermarkets. (i) Little advertising/promotion is done by street markets. (j) Many markets lack facilities, such as clean, public toilets and good lighting. (k) Street markets are not fashionable places to shop. It is important that any interventions in the retail market sector, seek to overcome one or more of the above constraints and win new customers. 2.3 New markets are often hard to set up, as people do not want them near their homes and business. It can be done, however, as has been shown by the rapid growth of certified farmer’s markets and other fine food markets in recent years. 2.4 There are several obstacles hindering the successful business of existing market operators and traders with special reference to their interface with government. 2.4.1 A lot of stallholders believe that the activities of Local Government often has an adverse eVect on trade. Not only is local government frequently the market landlord, but its policies on re- development, planning, parking, environmental health and trading standards, also have a big impact on street markets. When councillors vote on these matters, we are sure they do so with the best interests of residents in mind and certainly do not intend to damage their community street markets. In many cases however, we believe they are not fully aware of the impact of their decisions on the retail market sector. Many stallholders are not members of trade associations. Where such organisations exist, they are commonly badly equipped to represent stallholders’ interests to local government members and oYcers. To try to avoid these problems, we suggest a Street Markets Advocate should be appointed. The advocate’s main task would be to look at government policies and identify anything that could have an adverse eVect on local street markets. These areas would be brought to the attention of government, in the hope that they can work with the advocate to resolve possible conflicts, before the street markets are damaged. 2.4.2 The infrastructure of many street and other retail markets is outdated. Government support is needed to improve this in such areas as: — Electricity supply for lighting, refrigeration, cooking food, etc. — Water supply. — Provision of toilets with washing facilities. — Dedicated parking for vendors’ vans, etc. — On site storage facilities for traders. Many improvements of this type would benefit food hygiene and encourage more customers. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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2.4.3 Some Farmer’s markets have used a form of market research called “Market Health Checks”. These surveys have provided valuable information on which market development can be based. We would like to see this technique tried in retail markets, to see if it assists with their promotion. (FARMA have considerable expertise in this field). 2.4.4 In northern England there are some very successful retail market halls. We believe that this sort of venture should be encouraged more in southern England. Perhaps local government there, could try to persuade landlords to use some of the empty retail space that they have available, as market halls. 2.4.5 We believe that there is a need to encourage more new blood into the retail market industry. Government could play a part in this by preparing a guide to profitable trading in retail markets for new entrants. The provision of training and a mentoring service, would also be valuable. 2.4.6 Scoop selling, sometimes called bowling, has become a popular feature of fruit selling in retail markets over the last few years. In this system, the stallholder displays small bowls filled with a variety of fruit, all at a fixed price, often £1. Customers can then select the bowl of their choice at the stated price, without the fruit being weighed. There is an urgent need for this practice to be regularised under weights and measures legislation. 2.5 In our opinion, specialist markets, such as continental and farmer’s markets, have had little impact on traditional markets. As each type of market relies on its unique selling points however, we feel it is best not to try to integrate them.

3.0 Social andEconomicEffects Retail markets are economic ventures and safeguarding their profitability must be the main priority. In addition, however, they can have valuable social benefits, including: — Providing access to fresh, local, healthy , value for money food. — Assist consumers to eat five portions of fruit and vegetables per day. — Act as centres for social interaction. — Toursim. — Provide outlets for specialist ethnic foods, which supermarkets often do not supply. Where markets are not owned by local government, we feel these social benefits are more likely to be overlooked.

4.0 Realising thePotential ofTraditionalRetailMarkets There is great scope for local government to support retail markets more eVectively, including the point outlined in 2.4.1 to 2.4.6 of this paper. The main need is for local government to regards its retail markets as important assets of their area, to be embraced and nurtured. Traders feel this is not always the case at present.

5.0 Planning andLicensingIssues The licensing of markets is not an area where we can claim expertise. The licensing of individual stallholders varies a great deal from local authority to local authority. It has been suggested to us that it would be helpful if a license issued by one local authority, was valid nationwide for similar trading. This would enable stallholders to take advantage of opportunities outside their own area from time to time.

Memorandum by Michael Felton Associates (MARKETS 05) A. Summary andContents — The diVerence between local authority markets (the municipal sector) and the non-local authority markets (the private sector). — The distinction between covered markets (the “Indoors”) and the uncovered or open markets (the “Outdoors”). — The last 10 to 15 years. —EVect of the decline. — The specialist markets. — The route to stabilisation. — Socio-economic eVects and their benefit. — Future prospects—the next decade. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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It is to be noted that we have directed our expertise to the above subject matters only where it is felt that our comments would assist the committee—not least the background detail in paragraphs B1 to B3 inclusive. The name/location of markets as businesses are set in italics.

B. Commentary 1. Type of market operations—municipal and private 1.1 The municipal markets both “Indoors” and “Outdoors” are operated by local authorities and are based on custom; royal charter; local acts of parliament passed in the 19th century or under the Food Act 1984. The private sector principally operates in the “Outdoors” arena with the operators being individuals (ex traders or entrepreneurs); charter holders; quoted and non-quoted companies. The bulk of the private sector sites are held on licence or short lease from local authorities who own the car parks; the central squares; the pavements or streets.

1.2 The industry’s broad calculation is that approximately one thousand one hundred separate markets are trading today—roughly some 70% are in the municipal sector and 30% in the private sector. It is thought that some one thousand five hundred traded 12 or more years ago. This statistic is misleading in that the municipal “Indoors” will usually trade five or six days per week whereas the private sector mainly operates “Outdoors” often on a one to three day week. The footfall percentage in the municipal sector is therefore much higher than 70% unit ratio. Therefore the overall footfall volume may be up to 85/90% of total visiting for the municipal sector.

2. Indoors andOutdoors 2.1 The “Indoors” represent the bulk of market trade are almost all owned municipally. Many are in splendid Victorian structures (CardiV; Halifax; Leeds; Newcastle; Newport, Spitalfields) or in the post war modern period (Birmingham; Bradford; Liverpool, Plymouth; Warrington). The “Indoors” are the significant part of the industry by providing all-weather cover; some element of heating; toilet facilities; a degree of security for the traders; six days or a minimum of three days per week trading; fixed premises for cafes; snack bars; chill rooms; oYce areas; storage etc.

2.2 The “Outdoors” are operated in both trading sectors. In the municipal sectors often attached to an “Indoors” unit eg Blackburn; Bury; Oldham or “Outdoors” Cambridge; Newark; Norwich; Mansfield. However, a substantial part of the “Outdoor” sites are operated under licence from the local authority by the private sector. There is scarcely a town in the UK that does not have the benefit of a one or two day a week market—these are too numerous to mention.

3. TheDifference 3.1 These diVerences/distinctions are important to understand their significance to the industry.

3.2 The profit motive drives the private sector while the municipal is prepared to support its market on social; economic; political; historic grounds. This is not to gainsay that the municipal sector does not have immensely successful outlets and achieves an annual surplus.

3.3 Notionally a municipal market provides a surplus for the local authority and a margin for the trader. The private sector requires a triple “profit” as the operator also requires one. Paradoxically, the private sector produces a larger percentage of gross income as profit as cost control is strict. Local authority finance rules add back “capital transfers” ie a hypothetical rent on its own property thus reducing any surplus AND a prima facie “undue” (our view) percentage of the central costs ie senior oYcers time/central costs etc. etc. Our experience is that only their treasurer’s departments know how this is calculated.

3.4 The municipal sector invariably has a hierarchy of council oYcers at four or five levels. The private sector has immediate decision making as the businesses are relatively small. Local authority control often rests with a members committee which again, in our experience, does little or nothing to improve a market’s performance being primarily concerned with attaining a surplus or avoiding a subsidy. It is noticeable that the committees are taking more interest in performance of late.

3.5 Within our knowledge it is clear that many municipal market traders have obtained security of tenure and therefore subject to the legislation on occupancy. The private sector cannot and will not provide this as their interests are conditioned by a short period of legal occupancy—ie three to 10 years—often subject to a negotiated renewal.

3.6 Overall, publicity and promotion is more eVective in the private sector. Principally because LA (Local Authority) eVorts are usually contained within a council’s total publicity package and therefore less prominent and less well directed to the public. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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3.7 The phenomenon of Sunday markets is mainly in the hands of the private sector ie Bovington (Herts); Blackbushe (Hants); North Weald (Essex); Ingleston (Mid Lothian); Wembley (Greater London). These can and do achieve a take-up of thousand unit plus. Local authorities say that they do not have the labour available to operate these! The reality is they do not own a suYciently large area of land for these purposes— ie former aerodromes; farmers lettings; derelict/cleared sites. 3.8 The object of this paragraph (No. 3) is to demonstrate the variety in market operations, ownership and management and to infer that no single panacea is the answer to the industry’s problems.

4. TheLast 10 to 15 Years 4.1 We have deliberately extended the time period as it is our firm belief that the industry’s gradual decline is at least 15 years old. We bring to the committee’s attention an article we published in the Estates Gazette (14/3/98) which wherein we highlight on page 3 the multiple causes of negative growth (Appendix E.G.) To add to this list we would mention e-bay sales and the use of extensive cataloguing Argos; Freemans; Great Universal; Littlewoods and surprisingly Tesco. 4.2 These pressures have continued. It is a matter of great concern that the pace and range of competition has increased. 4.2.1 The supermarkets have grown in number and size well before 1998. The benefits are obvious— substantial parking space (free); indoor comfort; modern toilet facilities; payment by credit cards; provision of trolleys; AND we emphasise the increase in non-food/drinks products—clothing/ footwear; household goods/gardening etc. 4.2.2 In parallel the National Market Traders Federation (NMTF) is likely to point to an increase in membership but we say that this is entirely due to the insurance cover they are able to arrange, encouraging membership 4.2.3 The discounters—Primark; Poundland; TKMaxx; Wilkinsons are a growing threat—again selling a vast range of goods competing directly with the traditional market and providing a relatively comfortable shopping arena. 4.2.4 The lack of investment in markets in contrast to the regular refit by chain stores/supermarkets. Local authorities have been unwilling or unable to invest in the markets other than a “tarting up” or essential structural repair. Their markets priorities are (and properly so) at or near the bottom of the list. Unhappily the “cash-cow” is supreme and until fairly recently most market departments have been unable to retain their surpluses which have gone into another “pot”. 4.2.5 The shortage of traders is evident from statistics supplied by LAs retaining us; the number of advertisements in the trade press (Market Trader/Market News) seeking further traders; the unwillingness of the younger generation to follow in their parents’ businesses—principally the excessive hours. A successful trader standing in an open market say on four/five days which means daily setting up and taking down stalls will be working a 10 hour day.

4.2.6 Traders are burdened by an inherent lack of capital and have diYculty in persuading banks—that is the historical position—in assisting them in expansion. That situation will be almost impossible today. While there are many very prosperous traders, their number within the UK market community is insignificant. 4.2.7 Traders do not have the advantage of powerful block purchasing and rely upon the small/medium wholesalers whose numbers have decreased over recent years.

5. Effect of theDecline 5.1 The above subsection 4.2 (not exclusive) simply illustrates the problem of the industry. We have already said that the number of markets (and consequently the number of market days) has declined.

5.2 The setting up of a new market is a rarity. There are very few centres of population where a market does not exist. The set up costs and an initial subsidy period in both the municipal and private sectors is not one that any operator would wish to risk today. Additionally there is no certainty that a suYcient number of traders would be available.

5.3 There is a trend for LAs to outsource markets to the private sector by way of short-term renewable licence. We see this trend increasing but fear that some markets will cease trading or more likely become unviable as early as the first six months of 2009.

5.4 Although this assessment is relatively gloomy, the prospects for various parts of the industry diVer. The following comments diVerentiate between the prospects for range of markets trading today. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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“Indoors” (a) The large “Indoor” municipal markets that are centrally positioned are not matters of concern. We define “large” as a minimum of 150 stalls/pitches (some have space for 300). Our proviso requires a suYcient mix of users—ideally 25% foodstuVs’ 25% clothing/footwear; 25% household goods/materials/gardening; 25% the balance (including some odd ones eg cycle repairs at Cambridge; headgear at Kilburn; tattooing at Coventry). Toilet and seating facilities must be improved AND investment must be available on a continuing basis. For the few private sectors large “Indoors” repeat the above. (b) The stability of the medium market (50—100 stalls). Some will lose traders and customers; others will remain on an even keel as long as the location is unchanged and management is positive. We consider the critical mass occupancy level is at worst 75–77.5%. Today (2009) the above category achieves 87.5–95%. (c) The smaller “Indoors” (municipal and private) we feel are at risk. We define small as 45–50 stalls or under—often in suburban locations or those where demographic shift is patent. There is always a point where benefit ceases.

“Outdoors” (c) The large “Outdoors” in both sectors will survive but with reduced trader occupancy and a consequent reduction in footflow. (d) The medium sized (50–100 stalls) “Outdoors” in both sectors are at a degree of risk at the lower occupancy end. A further drop from 2008 figures of 12.5–15% vacancy is a distinct threat. (e) The small “Outdoors”—below 50 units—particularly in the municipal sector is at risk. Almost every small town (10–15K population) in the UK has a single market day per week. The cost to an LA is utterly disproportionate to income. The private sector fares better in that (i) its field management will take charge of several markets in an area each week (ii) traders will follow an operator in a given area (on a weekly round) at location in two or more LA jurisdictions (iii) private sector running costs are extremely tight.

6. TheSpecialistMarkets 6.1 In the traditional retail markets—we exclude antiques, second hand materials, arts and crafts, car boots—there are essentially two specialist groupings—farmers and continental. 6.2 After an uncertain start the farmers markets have established themselves. Much depends on how firmly FARMA (the main organising body) can control these outlets. The essence of “farmers” is fresh local produce. Ideally greengrocers, fruit, flowers, fresh/dried meat, dairy products, bottled food (honey, pickles etc.), confectionery. In practical terms this is not always possible—an element of “buying” in foodstuV from far outside for unseasonable goods. Providing this is minimal then it is bound to be accepted. Frequency of trade is a problem—nationwide once or twice a month at a fixed location is the limit of trading for each market to date.

It often happens that there are, in principle, objections to doubled up users, say by one cheese producer competing with another on market day. Paradoxically this may be beneficial for the customer in that these markets are small—12/15—20/25 units. Part of their success/survival is this trading infrequency. In our view they will probably survive if farmers, horticulturalists, nurserymen continue to see a margin in their eVorts. As at today it is accepted by LAs that there is no profit for them at all and in some cases a loss (advertisements/cleaning costs)—eVectively a site subsidy. 6.3 Continental markets are a success. Part of this is due to their infrequency. They will trade for two to four days—often in a prime position not always available to the traditional market. The French traders are by far the most creative with smaller numbers from Holland and Germany. Their UK customers are from ABs—Ds; their oVer is not cheap—but the excitement they generate for olives/gherkins; vast range of cooked/preserved meats; cheeses; sweetmeats; leather/linen goods; bottled drinks; preserved foods is considerable.

Their ability to trade afar is helped by the excellence of their purpose built vehicles (never seen in the UK) which are an engineering speciality; and their capacity to resupply from abroad. This enables the traders to stand at a number of locations over a period of weeks. Briefly, their impact has been considerable on the UK public—more so on with the ABs. Nonetheless C- Ds patronise these outlets and are known to travel distances for the occasional markets. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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6.4 Whether these resources of both farmers and continental markets can or will integrate with traditional markets remains to be answered. 6.4.1 As to farmers markets, on the whole after initial “diVerences” both sets of traders recognise that each benefits the other. But traditional traders are hesitant about the fairness of costs to trade together and the greengrocers (the absolute sine qua non of any market) still resent a rival presence. We suspect there could be considerable trouble if farmers markets become a weekly event. We consider this unlikely at this time. 6.4.2 As to the continental markets here there is more diYculty. Not only are the continentals privileged—location, subsidised rentals in general; eVectively free advertising (by LA). However, the public are very keen on these and the benefit to an area is obvious. We are aware of only one such market being held at the same time as the traditional markets. This is St. Albans. The regular market is held twice a week, is highly successful and runs along the north west side of St. Peter Street; the continental market is in a more spacious area on the other side of the street usually with a fine display of French and North African food products (and an “on the spot” mobile bakery!) and local clothing items. Against a very successful operation but no sign of integration. 6.4.3 We have left out any discussion on the one-oV Christmas markets which are unique in themselves.

7.0 TheRoute toStabilisation 7.1 Given the problems above and the pressures on the industry—one asks what can be done? At this point there is a distinct diVerence between the municipal and private sectors.

7.2 The private sector 7.2.1 The private sector breaks down into two large organisations; seven or eight medium/medium large businesses; and a fluctuating group of operators with one to three markets—around 10 to 15 in total. 7.2.2 Capital investment demand is low as “Indoor” units in this sector are few—possibly 10 in all. Profit margins are greater than the municipal sector as a more commercial approach applies. If a market is failing and is increasing in deficit then any decision for action is commercial and quick. 7.2.3 The private sector has the advantage of a “traders round”—ie the availability of a trader to work at four/five or even six markets at diVerent locations on diVerent days of the week. The locations will often be within diVering local authority jurisdictions. The operator’s porter/market superintendent will work at each market. The system encourages swift mobility of labour and reduces management costs. 7.2.4 The heaviest cost today is stall ownership on the “Outdoors” units which as stated are the bulk of private sector operational sites. There is an increasing trend for the private sector to encourage or insist on traders using their own stalls. If the operator owned stalls, it would have to bear the cost and maintenance; transportation from site to site; assembly and disassembly. The increasing trend is for traders to have their own equipment. The expense variation between the sector and the municipal sector is bluntly horrendous (see 7.3.6). 7.2.5 While it is accepted that the private sector represents a minor share of gross market industry retail/ fee turnover, in our view the flexibility and cost and costing method advantages suggest that the private sector on the whole has realistic prospects of steady trading.

7.3 The municipal sector 7.3.1 The need for capital investment is overriding. Until relatively recently that was either non-existent, very low and only eVected at the last resort. The cost of roofing repairs, internal structural work, flooring, stall replacement etc. is patent. Happily (and long overdue) some authorities on their own accord or with developers are reinvesting—eg Bradford; Blackburn; Burnley; Newcastle; SheYeld. The Regional Development Agencies are playing their part in some instances. As long as this continue and that attraction within of a city centre is retained then a high level of stability (ie 87.5% occupancy at the lowest) can be expected. 7.3.2 In addition LAs must accept that some surplus must (we repeat must) be ploughed back in their market without the whole surplus being transferred to other departments. There are signs that internal investment is occurring. 7.3.3 Although there are a number of first class senior market oYcers who run tight, successful, profitable markets, all in the larger towns and cities, they are the exception. In the case of the smaller towns then a full time oYcer cannot be appointed—in consequence the market personnel are multi-functional! 7.3.4 The internal hierarchy is often too lengthy and oYcers’ proposals can be and are altered or cancelled by members. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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For instance: Market oYcer (floor level) ] senior oYcer (oYce bound/accounting) ] property oYcer (RICS or CA)] no. 2 department] director] members. Our own experience (12 years plus) is that the oYcers at floor level know exactly what is wanted but the higher a problem rises the less likely it is to be implemented—Q.E.D. !! This regretfully is typical. It often seems overlooked that markets are one of the few sources in LAs income. 7.3.5 Promotion and publicity must be re-examined. It should amount to 3–4% of gross turnover and controlled by the market section—not centrally where—it is neither understood nor properly directed. 7.3.6 As pointed out 7.2.4. the cost of stall supply and movement is substantial. Leaving aside the capital costs which are depreciated over a period, the expense of moving stalls—from storage, erect, dismantle, return to storage is at least £6.50/£7 per stall. This is the heaviest charge for operators and may change at sometime with traders being forced to purchase their own equipment—this may take some time. For example a small/medium “Outdoors” of 45 stalls operating twice a week on non-continuous days— say Tuesday and Saturday (thus needed to clear site on non-market days)—would incur an annual charge of £33K. A large five/six day “per week operation will remain in situ only incurring an adequate security cost against theft or vandalism.

7.4 What can and should be done? 7.4.1 For “Indoors” and “Outdoors” the approach to publicity and promotion must be replanned. Most LAs do not seem to appreciate that the retail industry spends millions of pounds on publicity and promotion—much of it national on television and other media while an LA has limited funds and restricted geography so much so that competition is impossible. Promotion and publicity should not be dealt with by a council publicity department. Not only does it become virtually invisible but lacks punch. Promotion and publicity is best controlled by the market sector and properly directed to where it will be seen, read and produce results—ie entry to competitions, discount days, leafleting etc. etc. Additionally a figure of 4% of gross income should be the minimum to be directed to promotion and publicity—this does not happen today. 7.4.2 Investment, investment, investment. No further explanation needed. 7.4.3 A less complicated management chain is necessary. This may or may not be possible within LA structures but the need to retain a profitable business and to produce surplus for the authority is paramount. 7.4.4 Cost definition and control needs completely revising—we have had the advantage over years of seeing many markets annual profit and loss figures—we always ask for four years figures during the course of our retainers—and to paraphrase—“look upon me, ye confused and despair”. 7.4.5 At today (Jan 2009) many small “Indoors” are at risk—low occupancy,overburdened with excessive capital costs, increased local competition, retail shift. Equally so many small/medium “Outdoors” continue to suVer falling occupancy—even by 40% on 2004 figures. As a result markets are being outsourced and licensed markets to a private sector operator at Godalming; Congleton; Sandbach; Waverley. For some years some L.A.’s have outsourced a medium/large “Outdoors” to their benefit of Milton Keynes; Rushmoor; Portobello Road (Northern section).

8. Socio-economicEffects—TheBenefits 8.1 Our overriding view after some thirty years in the industry firstly as CEO of the largest market operator (as it was at the time) and subsequently as an independent consultant is that it would be a social, community, economic, regeneration, heritage and political disaster if markets ceased to exist as an eVective force in U.K. trade.

8.2 Social demand The need for social intercourse with a market as a meeting place for friends; the relationship between a trader and his regulars; the provision of service as compared with the more clinical approach of many large stores and chains, the provision of underprovided goods—scarce/unobtainable elsewhere eg haberdashery; the excitement—noise, smell, crowds (pizzazz)—does not exist elsewhere in UK retail.

8.3 Economic value (a) Fruit, vegetables and salads are available at competitive prices compared to the supermarkets (in eVect markets are the only real competition)—(the greengrocers continue to decline in numbers). (b) These foodstuVs are fresher spending little or no time in chilled storage. (c) Benefit of lower prices for the less well-oV is obvious. (d) Increased employment as either a whole family is employed or in the case of greengrocers with a four stall unit—six or seven persons will be working on peak market days. (e) Increased indirect employment—waste removal, surface cleansing, equipment repair and replacement services. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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(f) Additional footflow to the market area of a town or city on market days—Adlershot; Hinkley; Leek; St. Albans; Salisbury, Sowerby Bridge and benefit to adjacent retailers. This is particularly relevant to a smaller town of 20,000 population (or less) on the weekly market day. It is said that the Monday “Outdoors” at Darlington is the second best trading day that threatens Saturdays. (g) Income for the self-employed trader. (h) Surplus (profit) for the LA. 8.4 As and when a market closes or circumstances (retail shift) alter its popularity these benefits (8.2–8.3) cease or are curtailed. The damage to a community and its heritage is considerable—what replaces the market?

9. FutureProspects 9.1 Markets from Babylonian times; the Agora; the Forum; the Champagne Fairs; charters; local legislation—have obviously survived but can UK markets thrive in today’s conditions? In our opinion yes, on the following provisos. 9.2 (a) Continuous investment is essential in structure; equipment and management. (b) It has to be accepted that markets are not in outright competition with other retailers but are complementary. We define this state as the supply of relatively low cost goods and services; the provision of personal service; the provision of smaller cheaper units than the traditional shops; the benefit of the large range of “oVer” in one building or place; a gradual build-up of trader numbers; the need not to upgrade premises too far and turn them into shopping arcades in the hope of AB and more CI custom; where possible the use of credit cards for higher value items; active encouragement by the landlord including increased or properly directed publicity; improved coordination between trader and operator/landlords—a plethora of trading standards. (c) We realise that this is a formidable list but eVectively is no more than the High Street has to endure. There are some excellent examples—Bury; Coventry; Blackburn.; Oldham; Leeds etc. where the key component is the market oYcer supported by his LA. These markets are “Indoors”. For the “Outdoors” Barking; Cambridge; Newton-le-Willows; St. Albans. (d) In our opinion the small “Indoors” and the small/medium “Outdoors” will suVer and some of the latter are likely to close. Overall we see a 5–7% decline in market numbers from the present approximately 1,100 that are trading. (e) We doubt whether the present recession will improve market income. While the number of ABs and more CIs will pay more visits regularly, the volume and spend of the traditional CIIs, D & Es will deteriorate. (f) Our conclusion is that the market industry will continue to be subject to extreme pressure but if the elements in our paragraph (b) above can be broadly met then the tradition will carry on—even so as the younger (under 40) population will accept that market shopping while not comparable with other retail, has considerable benefits.

Memorandum by St Albans District Council (MARKETS 06) BackgroundInformation onStAlbansMarket 1. St Albans is a city rich in heritage, with evidence of the pre-Roman, Roman, medieval and the modern forming a continuous link between the past and present. The town first appeared as Verlamion, an Iron Age settlement whose name may mean “the settlement above the marsh”. The river, still known as the Ver, runs through the city. The inhabitants traded with the Romans for many years before the Roman conquest of Britain in AD 43. Verulamium, along with the towns of Colchester and London, was ransacked in the Boudiccan uprising of AD 60/61. 2. It was rebuilt with many fine buildings including public baths, a theatre, temples, large privately owned town houses with under floor heating and, from the 3rd century, town walls. The town grew to be the third largest in Britain before gradually falling into decline after AD 400. The site of the Roman town of Verulamium lies beneath modern Verulamium Park. The ruined buildings of Verulamium were exploited to build the new market town of St Albans. 3. The St Albans of today is based on the medieval town which grew up around the Abbey. The medieval street pattern can still be experienced and many of the original buildings remain. The market has continued in use since these early times and contributes to the lively atmosphere. The Abbey was fundamental to the layout of the new town. The economic basis of St Albans in medieval times was as a market town, catering for travellers and pilgrims. Many inns grew up around the Abbey. The Abbots created the Market Place and St Peter’s Street in the 12th century in a deliberate attempt to create the economic heart of the new town. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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4. St Albans market today is one of the most colourful and vibrant street markets in the South of England. With over 170 stalls on Wednesdays and Saturdays, it oVers everything from fish to fancy goods so customers are spoilt for choice. Our market is steeped in History with a special Royal Charter granted in 1553. However, the market is well documented as far back as the 9th century. 5. The current day market is operated by St Albans District Council and is firmly established in the city centre and runs the length of St Peters Street oVering an excellent shopping experience to compliment the established retail stores, such as British Home Stores, Next, T.K. Maxx and Boots plus many more. 6. The market itself is almost unique in the diversity of goods it oVers and attracts traders from as far away as Nottingham, Birmingham, and the extreme Southeast of Kent as well as closer to home. With up to 60% of our traders being here for 20 years or more you can be assured that the standard of service will match the diversity and quality of goods available. At Christmas additional markets are provided, allowing continuous trading for at least seven days in the run up to Christmas. 7. St Albans also supports a regular Farmers Market, on oVer as a 65 stall market each 2nd Sunday in St Peters Street, as a 50 stall market in Harpenden on the 4th Sunday and 36 stall market in Wheathampstead on the 3rd Sunday. 8. On occasions a continental market is allowed to trade in the city centre to complement the Charter Market. These are either traders from France or Italy. These are normally for a three day period every three months. St Albans has also run an Art and Craft market in conjunction with the Farmers market. As part of the St Albans festival a Street market of over 100 stalls is created for all the local voluntary and sports organizations to market and promote their activities. This is done using the same layout and stalls for the Saturday Market. The Committee’s inquiry will focus on the following questions:

TraditionalRetailMarketsToday How has the picture changed over the last 10 years? Last 10 or more years, some markets have become a shadow of their former lively, bustling selves eg Roman Road market in Bow London, which in the sixties was a large bustling market with a great selection of stalls, attracting people from a reasonable area, and now consists of a very few and down-at-heel that no- one would travel to visit. This may reflect the state of the local economy. In St Albans we have been able to maintain a full trading Saturday market. The Wednesday market has been more diYcult to maintain the numbers we had 10 years ago. Products have changed over time but the core of almost any market remains fresh produce at great prices—often stock needing clearance—in this sense markets help reduce waste. It is noticeable that in times of economic downturn in St Albans we are hearing reports of those who would have never used the market now buying there. So markets also help those in deprived areas get better value but also those who may be deprived in wealthier areas. They are also a superb outlet for small entrepreneurs who otherwise would not be able to aVord a shop-front. With the onset of Internet shopping and more supermarkets oVering a wider range of goods, the traditional retail market has increased competition. Out of town shopping centres provide free and easy access parking, existing town centre parking is usually paid for at a premium rate or entirely prohibited. Free parking being a major attraction to the public no looking for change, no time spent backwards and forwards to the car to put the parking ticket on and no time limit with £30 fine for staying later.

Are the number and types of markets in decline? If so, why? Yes although there are more diVerent types of markets being created in the development of local Farmers markets over the last five years. Although the number of traders available to undertake this type of business I believe is on the decline. Not many people are attracted to take up market trading as a full time living. Many who do take up market stalls are probably doing it on a part time basis generating additional income through other work, or using the stall as a temporary shop front for booked work—such as curtains, blinds, bespoke furniture or craft work.

Are there obstacles preventing the creation of more markets? No.

Are there obstacles hindering the successful business of existing market operators and traders? Success is usually defined by how much money can be made from trading on the market stall and how the business can be developed. Many years ago the market stall was the first opportunity for business for such entrepreneurs as Allan Sugar, Jack Cohen (TESCOS) and Marks and Spencers It is the Internet which oVers that opportunity now. Each stall holder has to ensure the same level of Health and Safety, Public Liability Insurance, returns policy and other requirements which are demanded of a retailer in a permanent Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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building. The significant diVerence for the Market trader is having to bring in their goods and set up their shop in the morning when they trade and take it down and remove it from the market site in the evening when they close.

What has been the impact of specialist markets eg continental and farmers markets, and do such markets integrate successfully with older markets? As long as there is a transparency as to what the specialist market is being charged and the rules and regulations are the same then the integration can be successful. It is about widen the attraction of the Market, increasing footfall and creating more “linger longer” time. The farmers market in St Albans has been running for over seven years and continues to prove to be very popular and interestingly attracts in a diVerent customer group to the normal street market. When there is an opportunity to combine the two together then the traditional market is opened to a new customer group.

TheirSocial andEconomicEffects What social and economic eVects do traditional retail markets have on their local communities? Traditional markets are: (i) A community focal point, creating a vibrant environment. (ii) Help with footfall in the City, increasing traYc for other retailers and coVee shops and cafes (iii) An opportunity for local entrepreneurs to launch/test new ventures (iv) A provider of low cost products often not generally available in the shops (v) Part of our heritage, many going back to the Middle Ages. An established market can be a major attraction, source of pride etc (vi) They also involve walking in the fresh air which is probably a health benefit (vii) They provide an opportunity for street entertainment. (viii) Provides opportunity for special environmental fairs.

What qualities contribute to a successful market delivering social and economic benefits, and are there examples of best practice that have a wider application? Qualities required are a stallholder-friendly environment/management, a good catchment area in terms of numbers/spending, a good space to operate on a reasonable scale, good public transport links, and other local attractions if possible. The issues are not massively diVerent from those desirable for any retailer. Our successful Farmers market has transferred to other locations in our district using a tried and tested format devised in the St Peter Street location. The stalls have been used for Carnival and Festival markets for voluntary organisations to promote their activities.

Realising thePotential ofTraditionalRetailMarkets Does local government support markets eVectively? This Council supports the provision of Markets very eVectively and is keen to look at ways in expanding the oVer which is available.

What are the advantages and disadvantages of local authorities having powers to operate markets? In the right environment a good street market is an asset to any town as it is a social day out for many and also brings trade to the permanent shops as well as the market itself. Local authorities have diVerent priorities to consider. Private operators are primarily concerned with profits and have been known to turn a blind eye to illegal trades and bad practice.

Does central government support markets eVectively? If not, what additional support should be provided? I am not aware of any central government support for traditional markets. They are, however, part of our heritage and some support/promotion could be useful.

Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration? I am sure government could use markets to support social cohesion and health (they are open-air and get people used to wandering!). They might help regeneration, but successful markets are more likely to be an outcome of a broad regeneration package rather than a stimulus for it. They are commercial entities which must be commercially viable, not some social enterprise. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Memorandum by Derby City Council (MARKETS 07) Summary Derby City Council manages the Council’s five markets, issue Street Trading consents, manage a Sunday Car Boot Sale and protects the Council’s Market franchise held under a Royal Charter from King Charles II. Around 700–800 years ago, the right to hold a market was a highly valued privilege granted by the monarch to nobles who enjoyed his favour. Where such markets were held, people travelled from miles around to buy and sell the essentials of everyday life. Towns grew up around the site of regular markets, which were usually held on one or two days each week, or on special feasts and festivals. Many of today’s thriving communities owe their existence to the market in their midst. There are three retail markets: — Eagle Market (formerly Eagle Centre Market) This is in an undercover modern building containing 247 retail stalls, oVering a full range of goods and with full access for disabled people. The Eagle Market retail square footage is 35019. Opening time: Monday-Saturday 9.00 am to 5.30 pm — Market Hall (Cathedral Quarter) This operates in the fully restored Victorian retail Market Hall and oVers separate Fish and Poultry sections. The Market Hall retail square footage is 18299 and the Fish Market square footage is 1064. The number of stalls (including the Fish and Poultry Market are 141.) Opening times: Monday-Saturday 9.00 am to 5.30 pm — Allenton Market This is a traditional retail open-air market of 90 permanent stalls with covered walkways. Opening times: General market: Friday and Saturday 9.00 am to 5.30 pm Flea market: Tuesday 4.00 pm to 6.30 pm Additionally there are two non retail markets and speciality markets. — Wholesale This is a distribution centre for fresh fruit, flowers and vegetables from all over the world. Trade sales only, not open to the public. — Cattle Market This is a traditional livestock market held on every Thursday of each week. Horse sales are held every 2nd and 4th Saturdays each month. Furniture sales are held every 1st and 3rd Saturday each month.

SpecialityMarkets — Farmers Markets Farmers’ Markets are held every third Thursday in each month throughout the year on the Market Place in Derby. — Continental Markets The Continental Markets’ dates are yet to be agreed for 2009. There are normally two or three a year—three days each one. — Car Boot Sales The Car Boot Sale at the Cattle Market is held every Sunday, apart from the last one in December and the first one in January. The numbers vary from 50 to 500 a week depending on the weather, as the Sale is outdoors but hard standing.

TraditionalRetailMarketsToday How has the picture changed over the last 10 years? The type of goods sold and services oVered have changed considerably. There are fewer traditional market products for example butchers, fruit and vegetable sales and florists, but there are also more specialist products sold and services oVered in Markets. For example beauty/tanning/nail bars, tattooists, alternative therapy, travel companies, Legal advice/Age concern and phone unlocking. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Are the number and types of markets in decline? If so, why? In the Retail Markets (Eagle Market, Market Hall) the voids are higher—almost double in the over the last five years. (This is all that we have figures for.) However, they are still running at a profit though and bring in large amounts of revenue for the Council. In 2003–04 the voids averaged 7.37% in the Market Hall and in the 6.77% in the Eagle Market, but in 2008/9 the voids averaged 17.51 % in the Market Hall and 16.99% in the Eagle Market. (It may be worth noting that in 2007–08 the voids averaged only 6.77% in the Market Hall and in 14.87% in the Eagle Market though.) At Allenton Outdoor Friday Retail Market ten years ago the Market Supervisor believes that there was about ninety percent occupancy. There has not been much change in the revenue in the last five years. (This is all that we have figures for.) In 2002–03 the income was £27,683, in 2007–08 the income was £24,328. This continues to run at 50–60% occupancy. At Allenton Outdoor Saturday Retail Market 10 years ago the Market Supervisor believes that there was about ninety percent occupancy. There has not been much change in the revenue in the last five years. (This is all that we have figures for.) In 2002–03 the income was £38,348, in 2007–08 the income was £32,705. This continues to run at 50–60% occupancy, but it was 70% five years ago. People tend to prefer to have a dry, and warm, shopping experience nowadays. At Allenton Outdoor Flea Market there has not been much change in the revenue in the last five years in the evening Flea Market. (This is all that we have figures for.) In 2002–03 the income was £11,344, in 2007–08 the income was £13,586.50. This continues to run at 50–60% occupancy. This may be due to the nature of the ‘cheaper second hand Market products’. The Car Boot Sale has not really changed in the last 10 years. In 1997–98 there were 13,450 vehicles, in 2007–08 there were 11,553 but the weather was bad. This year the figures for 2008–09 are up on the previous year. The average number of cars for the ten years was 12,947.5 cars a year. This was despite a £2 per car increase in 2006–07. It’s been suggested that the decline in the Retail Markets is due to lack of customers due to online shopping/auctions, out of town ‘one stop’ supermarkets (with free parking) and the development of ‘one stop’ shopping centres. In Derby, as well as the major Supermarkets oVering traditional market goods, including low cost clothes, there are two retail outlets oVering low cost clothes and goods in close proximity to the markets. In addition, the new Westfield development has market type stalls in the malls, creating further competition for the markets. We are aware of at least three traders moving completely to their successful ‘online sales’ business— hoover bags, toy cars, and toy bears. Interestingly Derby’s Eagle Market, which is adjacent to the new Westfield Shopping Centre, has much lower rents than the Shopping Centre. A fact that we are now promoting. There is a decline in the general retail trade due to the current climate, this can be seen in the Westfield shopping centre by the presence of vacant units since the Centre opened at almost total occupancy in October 2007.

Are there obstacles preventing the creation of more markets? The usual Laws (including Planning), legislation and regulations—and capacity for building within the City Centre. There is a trend towards modernising town centres and enclosing/enveloping Markets—for example the proposed City Scape plans for Derby, adjoining the Market Hall.

Are there obstacles hindering the successful business of existing market operators and traders? Economic climate.

What has been the impact of specialist markets eg Continental and Farmers markets, and do such markets integrate successfully with older markets? We have received mixed reviews. We believe that overall they do attract trade to the adjacent Market— and bring in additional revenue for the Council as well. The Farmers Markets (held every third Thursday) and the Continental Markets (that are held about three times a year) stand alongside the Market Hall. We understand from conversations with the Market Hall traders that these Specialist Markets do adversely aVect the trade in the ‘older Market Hall’. Namely those traders who sell the same/similar goods in the Hall. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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However we have observed that the prices are much higher for many products sold on the outdoor specialist markets so people prefer to still go into the Hall, and these types of Markets do visibly draw many more visitors to the area than normal. The ‘end’ of the Specialist market’s ‘walk way’ always leads conveniently into the Market Hall so the footfall will increase anyway. The Eagle Market traders, who are further away from the Specialist markets area, that have spoken to us, do not really note any change in trade.

TheirSocial andEconomicEffects What social and economic eVects do traditional retail markets have on their local communities? Social eVects Meeting place—CoVee bars/cafes, reading rooms. Receive ‘feel good’ experience—nail bars, beauticians, hair dressers, healing stalls. Friendly atmosphere to shop in. Ease of access to all. Personal service/sales

Economic eVects Place to purchase aVordable goods. The Markets employ traders and staV from the local area. (In Derby Retail Markets about 800 people.) There are ancillary employees—for example suppliers, hospitality, security, delivery vehicles. There is ancillary work generated for local car and vehicle dealers and repairers by traders and suppliers. Markets are in the fore—front of recycling and re using waste material products. With Derby’s Retail Markets receiving goods from the Derby Wholesale Market this reduces ‘carbon emissions’ and ‘food miles’, as they do not need to go to other wholesalers around the country.

What qualities contribute to a successful market delivering social and economic benefits, and are there examples of best practice that have a wider application? Having a mixture of products and services/balance of goods—not too many of the same products. Products that customers want to buy—of the right quality and at the right price. Having a traders charter—expected behaviour (no nuisance to others for example, in the tenancy/lease agreement. Having the right environment—welcoming. Conveniently located—either locally or close to bus routes.

Realising thePotential ofTraditionalRetailMarkets Does local government support markets eVectively? See below.

What are the advantages and disadvantages of local authorities having powers to operate markets? Advantages Control of trade Associated Council infrastructure available from Legal Services for expert advice (especially rival Markets), Administration, Environmental Health, Maintenance for expert advice Cheaper rents than Commercial outlets Provides a ‘service’ to local people (Allenton—an area of Regeneration). Use of Council buildings Fairness—Council regulations/policies ensure this Training—Health and Safety (Fire etc)/Water Hygiene always up to date Commercial income generation. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Disadvantages Lack of investment Limited advertising budget to promote markets—looking into advertising in Derby this year. Money made in Market not being reinvested in Markets Due to Council regulations/policies Perceived lack of flexibility due to Council regulations/policies

Does central government support markets eVectively? If not, what additional support should be provided? Continuing government pressure for eYciencies in local government is shared across Markets, reducing the budget available for investment. We have Government Directives which are quite diYcult to adhere to without additional funding.

Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration? Yes. Social Cohesions— Provide funding for Local Authority Markets to oVer lower rents on stalls for people/ organisations that provide a social cohesion facility for example clubs, clinics, nurseries. They can be charitable. Health—Provide free fruit and vegetables vouchers to children for use in the Market. Local Authority Markets could oVer lower rents on stalls for social/awareness groups to use especially those to do with Health, for example health—check clinics, crime prevention units. Regeneration—Provide funding for the renovation of all Council—owned buildings. In Derby we do oVer free use of the central area in the Eagle Market for NHS campaigns, Local Constabulary campaigns and charitable organisations to raise awareness and funding.

Planning and licensing issues Do local and national planning regulations support or hinder the development of markets? They hinder them because they allow out of town shopping areas and restrict building in the City Centre. They make it diYcult to develop, modernise or maintain existing buildings (for example listed ones) without extreme costs involved.

Do licensing regulations support or hinder the development of markets? They support Markets in the fact they can be held—but they are often very detailed and can easily be misinterpreted by traders.

What improvements could be made to the planning and licensing regimes to aid the development of markets? Make the planning and licensing of Markets more simple so that everyone understands them and can adhere to them at all times.

Memorandum by Chelmsford Borough Council (MARKETS 08) 1. Summary — Chelmsford Borough Council’s in-house town centre management team have been working with internal and external partners to leverage the possibilities oVered by street trading to promote community cohesion. — This paper highlights how street trading has been used to positive social and economic eVect in Chelmsford.

2. Introduction — Chelmsford is located 35 miles to the east of London. Despite its proximity to East London (25 minutes by train to Stratford) Chelmsford’s population is not particularly diverse, with BME residents only representing 6% (OYce of National Statistics 2006) — Chelmsford is a popular town centre shopping destination oVering traditional high street stores and a mix of independent shops, restaurants, cafes and bars. — A key strand of Chelmsford Borough Council’s corporate plan is social inclusion and the council has been recognised regionally and by the Audit Commission for its achievements in promoting equality and diversity. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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3. Social and Economic Effects 3.1 Using street trading as a vehicle to raise awareness and educate the public about equality and diversity issues The Council’s in-house town centre management operates street trading on Fridays and Saturdays throughout the year and Chelmsford is well known for the lively, welcoming environment created by the presence of traders selling fresh produce, specialist foods, crafts and flowers. In October 2008, to celebrate Black History Month, the Council held an event, oVering free stalls to traders selling goods such as Caribbean food, Indian food, black hair and beauty products. In addition, there was a programme of live music from a range of local BME music groups. As a direct result of the event, the Council’s town centre management team was able to put one of the specialist traders in touch with the Council’s inward investment team who helped them to locate a suitable premises in Chelmsford from which to grow their business. The Black History Month event served as a springboard for some BME traders to evaluate the potential of their business ideas, having benefited from a free market pitch on one of the busiest days of the year.

3.2 The value of equality impact assessing street trading activities Having fully equality impact assessed High Street trading activity the Council has put in place traders’ terms and conditions that require them to uphold the standards of equality that the Council demands of its own employees and suppliers. Failure to comply with these standards of behaviour will result in the trader losing their pitch with immediate eVect. The impact assessment also ensures that the Council treats all applicants for street trading fairly and equitably. For example, traders for whom English is not their first language must not be disadvantaged and will be oVered help to complete the necessary registration, licensing and insurance documentation

3.3 Making Chelmsford accessible to all sections of the community By leveraging the popularity of High Street trading activity, the town centre management team has been able to raise awareness of other Council initiatives to a wide audience. For example, the Council has invested in promoting Chelmsford on the DisabledGo! Website (www.disabledgo.info ) which informs residents and visitors about the accessibility of literally hundreds of venues throughout the town centre. Pop up stands have been displayed in the town centre in key locations to drive people to the DisabledGo! Website. An event was held to celebrate Older People’s Day in collaboration with Age Concern. Proceeds from town centre trading pitch fees were used to pay for staging and sound for the event which enabled various older people’s community groups to showcase their activities. The event was broadcast on BBC Essex throughout the day.

4. What Qualities Contribute to a Successful Market Delivering Social and Economic Benefits? Chelmsford’s town centre management team have established open lines of communications with a wide range of traders, community and voluntary groups via the Council’s website, the bi-monthly town centre liaison group and the monthly town centre e-newsletter which has a distribution list of over 400 contacts and can be made available in alternative formats as required. The town centre management team also works closely with the Equality and Diversity OYcer, the Inward Investment team and the two centrally located shopping malls to maximise the opportunities available for community groups to play a full part in the life of the town centre, generally maximising the popularity of street trading as a crowd-puller. This friendly, “can do” approach has ensured reliability on the part of the traders and also their loyalty. In the current economic climate, a number of markets have shrunk in size or been cancelled. Chelmsford traders have remained loyal to the town centre management team as they are treated with respect, professionalism and a genuine interest in helping them grow their own business.

Memorandum by Vale Royal Borough Council (MARKETS 09) — Lack of commitment both by local government and developers to include markets in the redevelopment of town centres. — Markets sites, because of their position, are quite often very valuable and sought after by developers. — It is alarming how quickly independent retails are disappearing from our High Streets. — Where markets are incorporated into the centres they add choice, colour and variety plus increasingly better value. — A lot of local authorities do not understand markets. — Not enough money is budgeted for to maintain most markets to a high standard. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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— Lack of vision in incorporating markets within town centre improvements. — Markets are a key place for business start-ups. — Specialisation is the key word. 1. I have personally been involved for over forty years with markets initially as a trader and latterly as a Market Manager (both in the private sector and with a local authority). Markets have changed during this period from a situation when the market was the prime place a customer brought their weekly shopping to a situation today when it is one of many choices a customer can choose from. Supermarkets were in their infancy forty years ago and the internet had not even been invented. Open markets were then common and customers knew that to get the best of what was on oVer they had to get to the market early irrespective of the weather. It was not uncommon to see queues at Fruit & Veg. stalls at 7am in the morning and for trading to continue till 5 or 6pm. In the intervening years attitudes have changed as supermarkets upped their game and shopping malls set new standards of glitz and comfort. The car now rules where customers shop rather than a bus ride or even walking. The change in Sunday Trading Laws, relaxation of opening hours, greater prosperity and changing expectations have all led to the decline in markets. 2. Today open markets are out of favour as most people today will not shop outdoors unless the weather is good—markets cannot survive on three or four months of good trading—so sadly the days of open markets are numbered. However, the one exception to this is Street Markets. These have to be very near or in the heart of a shopping area and most are very successful whilst adding colour and bustle to the area. Market Halls are becoming more like mini-shopping malls with lock-up units in well lit and modern surroundings. Covered markets are the link between the old open markets and the modern market halls. Most were not purpose-built but evolved out of an open market firstly having a roof put over it and then later followed by walls, etc. 3. Creating a new town centre market where there has historically not been one before would be diYcult and expensive. The site, planning, other nearby markets charter rights, etc would create many problems but not necessarily insurmountable ones given money and time. 4. Specialist markets such as Continental and Farmers’ can be very successful but need to be position close to the existing regular market. The gain for the normal market having it so close is increased footfall which can only benefit regular traders. Disconnect the specialist market from other leads to reduced footfall and lost revenue. 5. When we were planning a major refurbishment of our Winsford Market we undertook extensive surveys of traders, local shopkeepers and customers. The findings were very interesting in that the local shopkeepers stated that market days were their busiest days and the manager of Asda said that a market day was worth an extra £16,000 in turnover. 6. Historically, markets were a key factor in the commercial development of villages & towns by giving local farmers and artisans a central place from where they could to sell their wares on a given day each week. The activities and growth of the market also attracted workshops and retail shops to develop alongside the sites of markets. These eventually became the town centres we know today. 7. Over the centuries demand allowed additional market days to be added and the development of permanent buildings such as covered markets and market halls. These central sites were and still are a key factor in enabling markets to continue to compete with other retail outlets and shopping centres. The major problem has been the lack of commitment both by local government and developers to include markets in the redevelopment of town centres. 8. Markets sites, because of their position, are quite often very valuable and sought after by developers. Too often markets have been moved to secondary sites or in some cases closed for ever. In turn a lot of shopping areas have been created that now contain the same multiple and national chains whilst many independent shops increasingly cannot aVord the high rents those national retailers appear willing to pay. 9. It is alarming how quickly independent retails are disappearing from our High Streets reducing choice and losing many local specialist services. However, these “clone” shopping centres are a fact of life today and are popular. Where markets are incorporated into the centres they add choice, colour and variety plus increasingly better value (up to 30% cheaper-NMTF 2008) for shoppers. 10. The problem with the majority of markets is that over they have been allowed to decline by local authorities (who still run most weekday markets). This is due to many reasons but principally as follows: 11. “Too much trouble”—Markets are full of independent minded traders who demand value for money and will spot weak management a mile oV. A lot of local authorities do not understand markets and make the mistake of not addressing the needs of a market or reinvesting for the future. Markets are not a problem if good management is in place but can be a nightmare if weak management is allowed to wreak havoc over several years. Too many authorities would simply like to see the “problem” disappear by either closing the market or selling the management problem to a developer. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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12. “Cash Cows”—markets can produce large monitory surpluses that have too often been siphon-oV to fund other local authority services. Not enough money is budgeted for to maintain most markets to a high standard. Too often budgets do not include a capital expenditure element. With no monies set aside for replacement of fixtures and fittings this can only lead to a long-term decline in the fabric of the buildings and its infrastructure. Shabby looking markets are all too common. 13. “Position, position….”—Back to the value of the sites that market operates on and the lack of vision in incorporating markets within town centre improvements. All too often markets are disregarded or sidelined. 14. I hasten to state there are many exceptions to the above comments. My own authority is committed to the markets they run and has invested £100,000’s over the last few years to carrying out major improvements. Across the country there are many other very successful markets that play a key role within their local community in providing for their customers wants—good products & specialist services at reasonable prices within pleasant modern shopping environment. 15. Markets were a key place for business start-ups. This is particularly true today. Once Marks of Marks & Spencer stated his empire on a stall at Leeds Market and as trade grew he opened his first shop—the rest is history. Today that route is not quite as simple. We still welcome and encourage new traders and we are developing a support programme to help these new budding entrepreneurs during their first years trading. We can oVer them a stall and they can then opt for a lock-up unit. If their business outgrows the market the next step used to be opening a shop. Today the diVerence between a market stall rent and a shop rent is gigantic and for most traders prohibitive. This has led to Market Halls oVering larger multiple units to retain traders and oVer an alternative to a shop. The downside is that the High Street contains fewer and fewer independent retailers. 16. Markets today have to oVer what most High Street shops cannot personnel service for a wide range of products and services. Specialisation is the key word. Customers these days have a wide choice of where to buy a product from: High Street, out of town centres, internet, etc. What they cannot get easily elsewhere is personnel service with a “unique selling factor”. An example is someone selling jewellery but also oVering a repair service. More and more traders are oVering that “unique selling factor” and it is the way forward for markets along with fresh food & produce.

Memorandum by the London Borough of Southwark (MARKETS 10) ExecutiveSummary 1. The picture in Southwark reflects the national one of mixed success with many traditional retail markets in decline and others thriving. However traditional retail markets still have much to oVer. 2. Markets have both social and economic benefits. Given the right conditions and support markets can be platforms for entrepreneurship and innovation and create local employment. Markets also remain important sites for social interaction in the community and can add to the vitality and vibrancy of the public realm. 3. Local government has a key role to play in the management and development of markets as part of its central role in fostering local economic development and placeshaping. 4. We believe that there is potential in considering alternative management vehicles for local markets for example management by non-profit making organisations. 5. The legislation in London is cumbersome and restrictive and needs a thorough review and overhaul. 6. The development of markets is not helped by the fragmented nature of national, regional and local responsibilities. It is at the local level, given the right support and investment, that we can ensure that markets have the greatest benefits to local communities. 7. The Planning system oVers some support for markets but this is not consistent and greater use should be made of Section 106 agreements to foster the development of local retail markets.

BackgroundInformation 8. Southwark Council supports street markets and street trading because we believe they are economically,socially and culturally important to the borough. We believe that well managed and supported Street Markets have the potential to: — Be successful economically, socially and culturally. — Encourage more entrepreneurship, independence and innovation. — Support a range and variety of local businesses. — Promote vibrancy in a well managed and maintained public realm. — Attract visitors and destination shoppers. — Provide access to aVordable, healthy and high quality food and other commodities. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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9. Southwark has over 26 trading venues with some 800 available pitches. 10. Southwark currently has around 570 registered traders, which includes temporary and permanent traders. These traders are located in diVerent market areas geographically spread across the borough including: — East Street; — Southwark Park Road; — New Caledonian/Bermondsey Antiques Market; — North Cross Road; — Westmoreland Road; — Peckham Square. In addition to these there are a number of isolated trading sites throughout the borough with between one and four pitches. 11. Southwark Council’s Markets and Street Trading Service is located within the Public Realm Division of the Council’s Environment & Housing Department. Environment & Housing provides a wide range of services that aim to make the Borough cleaner, greener and safer. The Markets Service manages all the Street Markets and Street Trading pitches in the Southwark area. These trading locations were once thriving areas. They were very popular with the shopper, attracted visitors to the borough and most sites had lengthy casual trader queues. 12. In addition to the sites operated by the Council, there are a significant number of private markets being operated in the borough. These include: — Borough Market (itself a market protected by statute). — East Dulwich Indoor Market. — Peckham Rye Lane Market (trading from two sites on Rye Lane). — Elephant and Castle. Many of these private markets appear to be trading well and there is no current strategic or legal framework controlling them. 13. In October of 2008 Southwark Council launched a strategic review of markets and street trading across the borough working with traders and with the National Association of British Markets Authorities to look at: — the role of Markets; — how we develop markets; — how we modernise trading practices and whether some of the current practices/regulations are outdated and too restrictive; — how we take advantage of new opportunities like more specialty markets; — how we make markets more competitive so they oVer more choice and play a bigger part in the regeneration of the borough; and — the aim of the review is to ensure that we provide the right conditions so that enterprise can flourish and markets become platforms for entrepreneurship and innovation. It will look at how we make sure that we have the best people in place with the right expertise to manage the service and move it forward. 14. The review will be completed by the end of January 2009 and is part of Southwark’s work to take a more strategic and holistic approach and identify the future vision for markets in the Borough. It will also articulate the change process required to transform our markets to meet changing retail habits, changing demographics, policy priorities such as the national Obesity Strategy, regeneration, and the external relationships necessary to make that transformation that have been lacking in the past.

RetailMarketsToday 15. Like many places nationally Southwark’s markets show a mixed pattern of success with some thriving while others have been declining over a number of years due to a range of national economic factors but also to local factors that we are working to address. Traditional markets like East Street have seen a decline in numbers of traders that has accelerated in recent years while for others like Northcross Road there is a significant waiting list of traders at weekends. To some extent this echoes the national trend with a surge in popularity of specialist and farmers markets. Our view is that these can integrate successfully with older markets and with the wider retail economy. 16. It is against this background of national decline that the council is working to improve street markets. 17. Factors that have contributed to the national decline in traditional retail markets over at least a decade include: Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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— Shoppers have more choice. — Shoppers have more mobility. — The advent and expansion of supermarkets. — The introduction of out of town shopping. — Sunday trading. — Increasing sales made online. — Other retailers providing good products at very cheap prices. — Lack of investment in traditional retail markets. — The regulatory framework. 18. However some markets have overcome these issues and remain popular eg Borough Market and Northcross Road at weekends. It is also noted in paragraph 5 above that there are a significant number of private markets operating in the borough and these appear to be trading well however there is no current strategic or legal framework controlling them. Thus it would appear that while the number of street traders has declined sharply the total number of traders has not. It would seem to be the case that where the opportunities and the environment are right there remains a viable market trading sector. 19. There are opportunities to create new markets and the rise in popularity of specialist markets, farmers markets, continental and arts and crafts markets are noted elsewhere in this paper. This however needs to consider the impact on existing markets and sit within the context of a strategic approach to market development at local level. There are a number of challenges in doing so and these are set out below.

Realising thePotential ofTraditionalMarkets 20. Responsibility for Markets at a National level is spread across a number of government departments. This fragmented responsibility means that there is no overarching holistic approach to markets nationally with a number of policies across several departments many of which fail to realise the full potential of retail markets. 21. In our view there are strong advantages to the involvement of the private sector in the operation of markets in terms of bringing in commercial and retail skills that are necessary to make markets successful however we do not see that there is a one size fits all approach, what matters is what works in the local circumstances. Our view is that whatever arrangements are in place local government has a key role to play as part of its central role in local economic development ensuring that markets play a full part in meting the needs and aspirations of local communities providing economic social and cultural opportunities. Markets also have a part to play in the role of local government as place shapers, as part of regeneration schemes, providing local employment and linked to the other strategies of local authorities, local strategic partnerships and the partners that they work with. Local government needs the capacity to ensure that markets meet their potential as part of these wider agendas and local government is best placed to develop markets as part of developing the vitality and viability of their local economies and ensuring that enterprise benefits local communities. While national and regional government have a role this cannot be achieved working only at a national or regional level. What is needed is for local authorities to move beyond their traditional regulatory functions re fair trading and nuisance control to actively support the development and growth of markets for their contribution to the local economy and wider benefits to the local community. 22. The London Development Agency (LDA) has provided funding for the implementation of the London Food Strategy. The main actions underway relate to a wholesale market and training public sector catering staV. Unfortunately little has been done to implement the actions relating to retail markets, although we accept that supporting the wholesale sector is an important piece of the overall picture. The London Development Agency (LDA) has also funded specific regeneration initiatives at certain markets (for example Borough Market), provided business support programmes for market traders (which in our view are an essential part of developing the business skills of traders) and is responsible for wider promotion of London through Visit London. We feel that much more could be done to invest in the promotion and development of key retail markets in London. 23. Paragraph 14 above refers to the importance of business support schemes for market traders our view is that local government should have a central role in ensuring that this support meets the specific needs of local businesses and local markets. 24. Central, regional and local government could make better use of markets to achieve wider policy goals and there is much good practice in the sector that demonstrates how this is possible. Markets can provide access to good quality aVordable food contributing to the health agenda, markets are fertile environments for new business start ups and the development of business skills, markets provide relatively fewer barriers to entering employment and business than other forms of enterprise including to black and ethnic minority communities and markets have a significant social and cultural role as places where people come together. Markets can also provide access to local produce contributing to policies aimed at environmental sustainability and sustainable development. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Planning,Licensing and Legal Issues 25. Like the majority of London Boroughs the market and street trading operation of Southwark Council is governed by the provisions of the London Local Authorities Acts 1990 (as amended). The focus of the London legislation is street trading and while the street trading may have the appearance of a market the activity does not fall within the definition of a market that gives rise to market rights etc. 26. Markets arising from franchise (eg charter markets) or statute are aVorded certain rights in law. They have the right and power to control the establishment of “rival” markets within a given distance of the franchise or statute market (6.66 miles). Whilst the London Local Authorities Act 1990 gives some restricted control over markets close to a public highway, it does not aVord the same level of protection. There are many reasons why market rights are important. The ability to control other market events and the ability to use market rights enables many local authorities outside London to organise markets on a more structured basis. 27. In our view the consequence of the legislation in London has been that historically, the management of the market and street trading portfolio has been seen solely as a regulatory/enforcement role. This has sometimes meant that the experience and skills required to successfully manage modern markets are lacking. In particular, an understanding of the commercial world—with its retail, marketing and customer-focused approach—and the social value of markets. 28. A third issue with the London legislation is that currently street trading is limited in terms of what can be charged by allowing only “as may be suYcient in the aggregate to cover in whole or in part the reasonable administrative or other costs in connection with their functions under this Part of the Act”. This can work against applying commercial considerations to market activity and in our view is too restrictive and hampers a more proactive approach to developing markets. We are currently exploring as part of our review whether the Food Act 1984 provides a better and more flexible legislative framework for operating markets and this is the legislation that is commonly used in most authorities outside London. 29. The Department for Communities and Local Government’s planning policies include the statement that “streets and covered markets (including farmers’ markets) can make a valuable contribution to local choice and diversity in shopping as well as the vitality of town centres and to the rural economy. As an integral part of the vision for their town centres, local authorities should seek to retain and enhance existing markets and, where appropriate, reintroduce or create new ones. Local authorities should ensure that their markets remain attractive and competitive by investing in their improvement”. Some local authorities like Southwark have planning policies that protect markets but this is not always the case. In Southwark we are also have proposals to integrate markets as parts of regeneration schemes. It is our view that there is potential for greater use of Section 106 agreements for the Town and Country Planning Act of 1991 to create and protect markets as part of a balanced retail oVer in and around new developments. Markets need to be seen as part of the wider local retail economy and can play a key role in developing future retail provision. 30. At a regional level, the Mayor of London supports markets through planning policies in the London Plan (including the requirement that “boroughs should work with retailers and others to prevent the loss of retail facilities, including street and farmers’ markets that provide essential convenience and specialist shopping…”. The London Mayor also has a Food Strategy with an aim to improve the health of Londoners. It is disappointing that the Food Strategy has few actions that relate to retail markets.

Conclusions and Recommendations for Action 31. The picture over the last ten years has been of mixed success with many traditional retail markets in decline and others thriving. However traditional retail markets still have much to oVer and with proactive and forward thinking management can play a major role in the viability of local economies. 32. Markets have both social and economic benefits. Given the right conditions and support markets can be platforms for entrepreneurship and innovation and create local employment. Markets also remain important sites for social interaction in the community and can add to the vitality and vibrancy of the public realm. 33. Local government has a key role to play in the management and development of markets as part of its central role in fostering local economic development and placeshaping and should move beyond mere regulation and control. 34. We also believe that there is some potential in considering alternative management vehicles for local markets for example management by non-profit making organisations. 35. The legislation in London is too cumbersome and restrictive and needs a thorough review and overhaul or simply replacing with the Food Act provisions. 36. The development of markets is not helped by the fragmented nature of national, regional and local responsibilities. While all levels of government have a role there should be a coherent and holistic national approach to markets. There has been some progress, Food Matters (the governments review of Food Policy) recognizes the central role of retail markets but all to often retail markets are ignored in national and regional policy and investment It is at the local level, given the right support and investment, that we can ensure that markets have the greatest benefits to local communities. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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37. The Planning system oVers some support for markets but this is not consistent and greater use should be made of Section 106 agreements to foster the development of local retail markets.

Memorandum by Chris Hurdman (MARKETS 11) InSummary — It is my opinion Market trading is no longer an attractive proposition for entrepreneurs starting a business in the retail industry, and that in the present economic climate the industry will collapse and not be able to recover. — Those prospective traders will not accept the long and physically demanding hours. — The constraint of market rules make unacceptable demands on a work life balance and precludes trading for anyone with school age children. — Margins have decreased and expenses such as fuel and market tolls have increased making market trading unattractive. — Lack of security in respect of trading on a daily basis and lack of tenure both make the prospective retailer look elsewhere for their investment. — Local Authorities use their markets to raise revenue and do not recognise the benefits of their markets.

Introduction Born in 1961, I joined the Royal Engineers in 1977 and left in 1985. I have been a Market Trader in partnership with my brother, trading on markets in Oxfordshire to date. I set up and chaired the trader operated market in Bicester and am currently the secretary of Thame Market Traders Cooperative. I am married with two children.

How has the picture changed over the last 10 years? Over the last 10 years there has been a reduction in the number of market traders, which in turn has seen the collapse of a number of private markets in Oxfordshire. There are a number of factors contributing to this decline all of which have contributed to a number of traders leaving the market industry. These factors, highlighted below, also contribute to the reasons why the industry is unable to attract new traders. — Lack of investment by local authorities. Markets on which I trade earn in excess of £60,000 per annum for providing floor space on a free car park. I am unaware of any reinvestment. — Local Authorities use their markets solely for revenue rental income; this is inextricably linked to monies authorities need to raise rather than setting a fair rent. — When market attendances fall, Local Authorities continue to maintain their gross revenue, which in turn makes more traders leave. — Individually traders are working long hours, it is not unusual to hear of traders working 18 to 20 hour days. — Local Authorities market rules insist on 8 hr trading days. As many traders are sole traders with no employees, their working day is extended by the setting up and dismantling of their stalls. Added to this is their travelling time to and from market as well as restocking their vehicles for the next days trading. — The majority of market traders are sole traders and do not employ staV the consequence of which means that traders work long hours without breaks. — The impact of specialist markets has had an eVect on Traditional Markets where the specialist, continental or farmers market has been introduced on a day other than the traditional market day. — In some cases continental markets have been oVered free rents to the operator of the continental markets, whilst the local authority charges tolls to the regular market traders. — There are benefits to both farmers markets and to traditional markets; when both markets are held in conjunction there has been a overall benefit to both the traditional and farmers market.

Their Social and Economic eVects — The provision of retail markets in towns with limited supermarket competition benefits the local community by providing competition in the retail sector. — The social eVects of local markets are immense, not just a meeting place but on well run markets they are a valuable addition to the local community. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Realising the potential of traditional retail markets — I am unaware of any local authority in Oxfordshire positively supporting their market. — The benefits of local authorities running markets are that local issues can be more easily resolved. — Local Authorities do not see the social and economic importance of markets, in strengthening communities and providing reasonably priced and healthy food. — I am unaware of any central government support of markets; this may be because of lack of local government knowledge of any such initiatives. — I consider that with central government support a healthy vibrant market on a designated market day can bring life atmosphere and trade back into town centres.

Recommendations I respectfully request that the committee to consider the following recommendations. — That central government ring fenced market tolls as street trader licences are then this sector of the retail industry could be saved. — That central government ensure that local government separate discussions of monies needed to be raised from their market tolls. — That Local Authorities are proactive in support of their markets and include market traders in decision making. — That market traders have right of tenure to protect both their investment and livelihood.

Memorandum by Action for Market Towns (AMT) (MARKETS 12) Action for Market Towns is a membership organisation open to market towns with a population of between 3,000 and 30,000, as well as individuals and organisations who wish to promote the viability and vitality of market towns. Currently,we have 420 members, largely market town partnerships or market town councils, bit also including county, district and unitary authorities. In December 2008, we surveyed our members on the issues on which the Select Committee is focussing in its inquiry into traditional retail markets. 108 member towns responded. I attach the analysis of the survey, which I hope the Select Committee will find of interest. I should be happy to give oral evidence if the Committee wishes. In response to some, but not all, of the questions which the Committee is examining, the survey provides the following summary information:

TraditionalRetailMarketsToday 1. How has the picture changed over the last 10 years? 36% of the towns with markets reported that number of stalls at their towns market had decreased over the last five years. When asked why they felt this was the case, a number of respondents commented that the number of market stalls in their town had decreased due to “increased competition,” whilst another theme was the “lack of actual traders.” 61% reported that their market had not been aVected by Retail Developments within their town. 61% reported that their market had not been aVected by Out of Town Retail Developments. (Pages 14–18 of the survey refer)

2. Are the number and types of markets in decline? If so, why? From those surveyed who indicated that their town did not have a market, 50% reported that a market was previously held. From this cohort 43% indicated that the market had closed in the last five years, 29% 21 to 50 years ago, 14% five to 10 years ago and 14% 50 more years ago. (Page 7 refers) 44% of respondents were confident in terms of the future of the market in their town. (Page 20 refers)

3. Are there obstacles hindering the successful business of existing market operators and traders? 60% of towns with markets felt that there were obstacles hindering the successful operations of their existing market traders, and when asked to expand on these obstacles two main themes emerged; “Location” and “Local Authorities”. 32% of those respondents with markets in their towns rated the local government support given as Neither EVective nor IneVective. When Respondents were asked what additional support local or central government could give to markets, and the main theme to emerge revolved around “financial support/ incentives” (Pages 21–22 refer) Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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4. What has been the impact of specialist markets eg continental and farmers markets, and do such markets integrate successfully with older markets? From the cohort that indicated their town held “New” markets such as Farmers, Continental and Arts and Crafts, 54% stated that these had been successfully integrated with the older markets. Responses from the 41% who did not feel that the new markets had successfully been integrated centred on the lack of a previous market to integrate with and “New” and “Old” markets being operated in diVerent locations. (pages 12–13 refer)

Realising the Potential of Traditional Retail Markets 5. Does local government support markets eVectively? Pages 21–22 of the survey deal with local government issues relating to towns with markets. These include liaison between diVerent tiers of local government, lack of investment, lack of support and vision and inadequate promotion.

6. Does central government support markets eVectively? If not, what additional support should be provided? Page 23 deals with this issue. Comments exclusively relate to the role of local government rather than central government.

Planning and licensingIssues 7. 69% of towns with markets reported that their market had not been aVected over the last five years by new regulations. However, of those who reported that new regulations had aVected the market within their town, 56% said that the eVect had been a negative one. This is an area where AMT wishes to investigate the survey responses in more depth. (Page 20 refers)

Action for Market Towns Markets Survey (MARKETS 12 BPa) ExecutiveSummary For towns with Markets; — 61% reported that the Local Authority were responsible for the operation. — 49% indicated that there was a Royal Charter on the market. — 45% reported that the market still in operation within their town had been in existence for over 500 years. — 44% of the towns indicated that the market was held more than once a week. — 96% of the towns markets were held outdoors. — 80% of towns indicated that “Food and Household Goods” best described the market in their town, with 57% stating “Farmers Market” and 29% “Food Market.” — From the cohort that indicated their town held “New” markets such as Farmers, Continental and Arts and Crafts, 54% stated that these had been successfully integrated with the older markets. — Responses from the 41% who did not feel that the new markets had successfully been integrated centred on the lack of a previous market to integrate with and “New” and “Old” markets being operated in diVerent locations. — 40% of towns have in excess of 21 stalls at their markets, 32% have one to 20 stalls and 27% one to 10 stalls. — 36% of the towns reported that number of stalls at their towns market had decreased over the last five years. When asked why they felt this was the case, a number of respondents commented that the number of market stalls in their town had decreased due to “increased competition,” whilst another theme was the “lack of actual traders.” — 61% reported that their market had not been aVected by Retail Developments within their town. — 61% reported that their market had not been aVected by Out of Town Retail Developments. — 69% reported that their market had not been aVected over the last five years by New Regulations. — On a scale of 5 Very Positively to 1 Very Negatively, 37% of those who had been aVected by Retail Developments rated their eVect on the market within their town as (3). — From those towns who stated that their market had been aVected by Out of Town Developments, 55% reported that this had had a negative eVect. — 56% of those who indicated that New Regulations had aVected the Market within their town felt the eVect had been a negative one. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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— 44% of respondents were confident in terms of the future of the market in their town. — 60% felt that there were obstacles hindering the successful operations of their existing market traders, and when asked to expand on these obstacles two main themes emerged; “Location” and “Local Authorities”. — 32% of those respondents with markets in their towns rated the local government support given as Neither EVective nor IneVective. When Respondents were asked what additional support local or central government could give to markets, and the main theme to emerge revolved around “financial support/incentives”.

Introduction andMethodology Action for Market Towns (AMT) is preparing to respond to the Communities and Local Government Select Committee consultation on traditional retail markets. The inquiry considers covered and uncovered markets, including specialist markets serving local people in urban and rural towns and cities. As the voice of market towns, AMT has seen the consultation as both a unique opportunity to consult with members on markets in their towns, and the chance to oVer a valid response to the Local Government Select Committee. In order to do this AMT contracted amt-i to design a survey to be disseminated to members and the following report is based on the findings. The survey was designed on the SNAP software system by the amt-i Senior Research Consultant and both posted on the AMT website and emailed for members to complete. The survey was “live” for two weeks.

KeyFindings 108 AMT Members responded to the Markets Survey.

Does your town have a Market? 87 90%

80%

70%

60%

50% Yes 40% No

30%

20% 13 10%

0%

87% of respondents reported that their town had a market. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Did your town previously have a Market? 50 50% 50

45%

40%

35%

30%

25% Yes No 20%

15%

10%

5%

0%

From those surveyed who indicated that their town did not have a market, 50% reported that a market was previously held. From this cohort 43% indicated that the market had closed in the last 5 years, 29% 21 to 50 years ago, 14% 5 to 10 years ago and 14% 50 more years ago.

TOWNS WITH MARKETS

Who is responsible for the operation of the Market?

70%

61 60%

50%

40% Local Authority Private Company 30% Don't Know 23 Other 20% 15

10%

1 0%

From the 94 respondents whose town had a market, 61% reported that the Local Authority were responsible for the operation. From the 15% who provided the “other” response, the majority stated that the Town Council were responsible for the operation of the market. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Does your Market have a Royal Charter? 49 50% 46 45%

40%

35%

30% No reply 25% Yes 20% No

15%

10% 5 5%

0%

49% of respondents whose town had a market indicated that there was a Royal Charter.

How long has your regular Market been in existence? 45 45% 40% 35% 30% 25% 20% 15% 10 10% 7 7 7 5 6 5% 3 3 4 1 0% No reply Over 500 years Less than 5 years Between 5 and 10 years Between 10 and 25 years Between 25 and 50 years Between 50 and 100 years Between 400 and 500 years Between 300 and 400 years Between 200 and 300 years Between 100 and 200 years

45% of respondents reported that the market still in operation within their town had been in existence for over 500 years. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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How often is there a Market in your town? 44 45% 42 40%

35%

30% More than once a week 25% Once a week Once a fortnight 20% Monthly 15% Other 13 10%

5% 2 0 0%

44% of the towns with a market reported that it was held more than once a week.

Which of the following Markets do you have in you town?

100% 96 90%

80%

70%

60%

50% An indoor market An outdoor market 40% 27 30%

20%

10%

0%

96% of the towns with markets reported that they were held outdoors. (Respondents we able to give multiple answers, which is why the percentages add to more than 100) Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Which of the following options describe the Market(s) that take place in your town? 80 80%

70%

57 60%

50% Food Market Farmers Market 40% Arts and Crafts Market Continental Market 30% 29 Food and Household Goods Market 25 25 Other 20% 12 10%

0%

80% of towns with current markets indicated that “Food and Household Goods” best described the market in their town, with 57% stating “Farmers Market” and 29% “Food Market.” (Respondents we able to give multiple answers, which is why the percentages add to more than 100)

If you have new markets (e.g. Farmers/Continental/Arts and Crafts Markets), have these been integrated successfully with older markets? 60% 54

50%

41 40%

No reply 30% Yes No 20%

10% 5

0%

From the cohort that indicated their town held “New” markets such as Farmers, Continental and Arts and Crafts, 54% stated that these had been successfully integrated with the older markets. Responses from the 41% who did not feel that the new markets had successfully been integrated included the lack of a previous market to integrate with; — “Because there were no markets held for many years”. — “We have not really had old markets before.” — “Organisers of the separate markets have made no eVorts to combine. Space would be an issue, and Farmers Market is keen to emphasise its individuality.” — “Because the older market ceased to operate many years ago.” — “There are no older markets to integrate with. A previous attempt to set up stalls for an open air market on a fortnightly cycle failed after a few months. This project was set up by the Town Council in response to requests from the public.” Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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“New” and “Old” markets being operated in diVerent locations was another reason cited; — “The diYcult location—away from the High Street—is probably a bigger problem for all three.” — “The farmers; arts and crafts and fine food markets are held at indoor venue away from location of traditional market which occurs twice a week on the market place. The indoor location was deemed a more suitable location for the events which attract visitors, and these events also occur on non market days.” Another theme for lack of integration revolved around the “New” and “Old” markets being operated on separate days. — “The Farmers Market is run on diVerent days to the Standard Market.” — “These are usually held on a diVerent day.” — “The three diVerent markets (general every Friday, farmers and continental ca monthly/less frequently usually at weekend) operate on diVerent dates. To an extent they appeal to diVerent clienteles, but there is some feeling that this compartmentalising prevents a really strong market day impact.” — “The Market is Every Friday the Farmers/Italian or French Markets are on Wednesdays or Saturdays on some sort of schedule no one understands!”

How many stalls does your Market have? 45% 40 40%

35% 32 30% 27 25% No reply 1-10 stalls 20% 11-20 stalls 21 or more stalls 15%

10%

5% 1 0%

40% of towns have in excess of 21 stalls at their markets, 32% have one to 20 stalls and 27% one to 10 stalls. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Which of the following statements describes the number of stalls at your towns Market over the last 5 years?

40% 36 35% 32 30%

25% No reply Greatly increased 20% 19 Increased Neither increased or decreased 15% Decreased Greatly decreased 10 10%

5% 2 1 0%

36% of the towns reported that number of stalls at their towns market had decreased over the last five years. When asked why they felt this was the case, a number of respondents commented that the number of market stalls in their town had decreased due to increased competition; — “Change of culture within younger generations. Most market goods can now be obtained at Pound shops and they are open every day.” — “Competition from Supermarkets and internet and changing retail patterns.” — “General recession and competition with shops that now sell cheap goods. E.g. shops such as B&M, Poundland etc, in addition the large hypermarkets, Asda, Tesco, Morrisons et al also provide more competition than hitherto.” — “Competition from supermarkets and high costs of stalls.” — “Change in shopping patterns, Decline in general market stall operators Other ‘high street’ competition.” — “There are too many out of town shopping places where people can buy everything in one go at super and hyper markets.” Another theme was the lack of actual traders through a variety of reasons; — “They don’t seem to be able to make a living from running a market stall.” — “General decline in market trade”. — “DiYcult to assess but is probably due to a national downturn. New market traders are not replacing those that cease to trade (whether due to death, retirement or a downturn in trade).” — “A number of regular traders have retired and the market has a rather small turnover with a small catchment population ('3,500 residents). As the number of stalls dwindles so does the number of regular shoppers and the spiral continues. We only have two to three regular stalls and in bad weather less than that.” — “Fewer individuals seeing this lifestyle as a viable option with profits which can be slim and hours which can be long and working conditions which can be uncomfortable.” — “No longer such a popular way of making a living for market traders perhaps?” — “Stall holders retiring and not being replaced possible because of falling trade”. 32% stated that the number had neither increased nor decreased. From the 19% who felt the number of market stalls had increased reasons provided included; — “Housing growth has encouraged a higher footfall”. — “through the energy of the town clerk”. — “due to popularity of the public wishing to purchase goods other than from retail outlets”. — “We have a market manager who is extremely active in advertising the market and finding new stalls.” — “better run, better quality and more diversity—no junk allowed”. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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— “The town is a catchment for a large number of surrounding villages and whilst there are a number of local farmers markets, it appears that the market is better attended by traders than others— possibly because it is on a Saturday.” — “There is a high demand for pitches which generates very high levels of footfall.” — “we had a new manager, who invited more stall holders”. — “Town council has let the franchise to a more committed and enthusiastic franchise-holder with more pro-active support from the town council.” — “it is one operator who has expanded”. — “The market enhances the retail oVer and has the flexibility to respond very quickly to demand and changing consumer preferences. The market retains a strong presence in the town and receives great support from both local residents and visitors to the area.” — “Because other traders have seen how successful the market is.” — “No real idea. Perhaps we give them a fair deal?” — “farmer’s market has proved popular”. — “We didn’t have a market before. The la tried one earlier, some years ago, but it was not successful. It had a very unfortunate start coinciding with major road works and was not as focused on complementary types of goods as the current farmers market, which does seem to be a success. The site of the current market is better too.” — “the covered retail market is a well established and very popular shopping area and is open from Wednesday through to Saturday selling a variety of quality foods, butcher, baker, grocers as well as household items, pet foods, bric a brac, books, toys, spices, clothing and so on in 27 shop units. Farmers markets are brought into town throughout the year on bank holidays and focus on traditional local foods with one continental (Italian) market held in may. These are well run markets which have up to 32 stalls and are often a part of a much larger town wide event (ie plum festival throughout august).” — “we do not let in to many of the same”. — “it is a family run market very friendly oVer tea coVee for all and a good range of produce”. — “The street market went into decline 11 years ago when the cattle market closed down but has revived to some extent following the regeneration of the town centre and the building of a covered market facility. It does, however, remain rather quieter than it was 11 years ago.” Respondents were asked whether or not over the last five years the Market in their town been aVected by Retail Developments, Out of Town Developments or New Regulations.

Retail Developments within your town

70%

61 60%

50%

40% No reply Yes 29 30% No

20%

11 10%

0%

61% reported that their market had not been aVected by Retail Developments within their town. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Out of town retail developments 70%

61 60%

50%

40% No reply Yes 30% 26 No

20% 14 10%

0%

61% reported that their market had not been aVected by Out of Town Retail Developments.

New regulations 69 70%

60%

50%

40% No reply Yes 30% No 21 20%

10 10%

0%

69% reported that their market had not been aVected over the last five years by New Regulations. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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On a scale of 5 Very Positively to 1 Very Negatively, how would you rate the effect of the Retail Developments on the Market within your town?

40% 37 33 35%

30%

25% 22 5 Very Positively 4 Positively 20% 3 Neither Positively nor Negatively 2 Negatively 15% 1 Very Negatively

10% 7

5% 0 0%

On a scale of 5 Very Positively to 1 Very Negatively, 37% of those who had been aVected by Retail Developments rated their eVect on the market within their town as (3). 33% indicated the retail developments had had a Positive eVect.

On a scale of 5 Very Positively to 1 Very Negatively, how would you rate the effect of the Out of Town Developments on the Market within your to town?

60% 55

50%

40% 5 Very Positively 4 Positively 30% 3 Neither Positively nor Negatively 23 2 Negatively 18 20% 1 Very Negatively

10% 5 0 0%

From those towns who stated that their market had been aVected by Out of Town Developments, 55% reported that this had had a negative eVect. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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How would you rate the effect of New Regulations on the Market within your town? 60% 56

50%

40% No reply 5 Very Positively 30% 4 Positively 3 Neither Positively nor Negatively 22 2 Negatively 20% 1 Very Negatively

11 11 10%

0 0 0%

56% of those who indicated that New Regulations had aVected the Market within their town felt the eVect had been a negative one.

How confident are you in terms of the future of the Market in your town?

45% 44

40%

35%

30% Very Confident 23 25 25% Confident Neither Confident nor Not Confident 20% Not Confident 15% Not at all Confident

10% 9

5% 0 0%

44% of respondents were confident in terms of the future of the market in their town. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Are there obstacles hindering the successful operation of your existing market traders? 60 60%

50%

40% 36

No reply 30% Yes No 20%

10% 4

0%

60% felt that there were obstacles hindering the successful operations of their existing market traders, and when asked to expand on these obstacles two main themes emerged; “Location;” — “Small location”. — “Topography of site”. — “Location/Parking”. — “Indoor Market Hall is dated and inflexible”. — “Poor site, being the only land available.” — “IT SHOULD BE CLOSER TO THE TOWN”. — “The diYcult site (see earlier answer) which is away from the main High Street footfall and very uninviting in wet/windy weather.” — “The position is appalling. It is the top floor of a car park not visible from the main road.” “Local Authorities,” — “Obtaining a consensus between the Town, Borough and County Councils can be an issue as all three (quite properly) seek to promote their respective although not necessarily identical interests.” — “No investment in Market. Stall fees expensive. Organisers not specialists in Markets or Marketing. District Council unsure about how to proceed.” — “The market is run by the District Council which is due to expire due to a unitary authority being formed—this is causing some problems eg stagnation until the new authority is empowered—also uncertainty this brings.” — “Lack of support and vision by the LA.” — “The local authority is unable to do enough promotion of the market to satisfy the trader’s requirements.” — “Lack of vision by the council”. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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How would you rate the local government support given to your markets?

35% 32 31 30%

25% No reply 20% Very Effective Effective 15 15% 14 Neither Effective nor Ineffective Ineffective Very Ineffective 10%

5 5% 3

0%

32% of those respondents with markets in their towns rated the local government support given as Neither EVective nor IneVective. 46% rated the support as either EVective (31%) or Very EVective (15%). Respondents were asked what additional support local or central government could give to markets and the main theme to emerge revolved around “financial support/incentives”; — “Tax breaks for local traders”. — “Cancel payment of council tax rate for area used by market”. — “Co-ordination of and funding for marketing and other ‘strategic’ support”. — “More funding for improving market areas.” — “Reduce or waive charges for street closure, which are extremely expensive.” — “Grants to improve the infrastructure”. — “They should give cash to ensure good market sites are able to be maintained in sustainable positions in the centres of towns. They should cut beaurocracy and provide assistance to councils to buy and maintain nice stalls to enhance the amenity and allow stalls to be placed on wider public highways where they are visible and can operate in the old tradition of wheeled in barrows.” — “Lower cost for rental, provide better looking stalls for the traders”. — “District Council (the provider of the market) could invest more in the market ….applying lower rents and new equipment.” — “Support both financially and strategically to have vision to adapt the present circumstances to reflect the needs of the consumer”. — “LA could encourage traders to switch to direct debit payment for stalls—this ensures ease of payment to LA and encourages stallholders to come each week, which in turn encourages shoppers. As a benefit to retailers, they can be given ‘free week’ when they sign up, and discounted rate for colder months (balanced against higher rate for weekend/summer) It is important to understand that local govt is financially stretched at this time and a question perhaps should be asked—why help a market stall trader over a high street retailer? It is important for Cllrs to understand options—namely that if they want to keep market as an asset for their community,then it will require commitment to fund its promotion. It is not enough to just put up stalls. A political decision will have to be taken at a local level on if the LA should see the market as a ‘community asset’ in which case they should make some commitment to funding the markets promotion (£8k p.a.) or be happy to let market forces precide, but with a possible consequence of it failing/ disappearing over next five to 10 years.” Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Memorandum by the Retail Markets Alliance (MARKETS 13) This submission is made on behalf of the Retail Markets Alliance (RMA) which represents the four major organisations involved in the markets industry in the UK. The RMA was formed in 2008 with the intention of representing the views of the markets industry on major issues, and comprises the following organisations: — The National Association of British Market Authorities (NABMA); — The National Market Traders’ Federation (NMTF); — The Association of Town Centre Management (ATCM); and — The National Farmers’ Retail and Markets Association (FARMA). It was drafted by Jrys Zasada, Policy Development Manager for NABMA. The Retail Markets Alliance works closely with the All Party Parliamentary Markets Group (APPMG) and particularly the Chairman of the Group, Ann CoVey MP (Stockport) and its Secretary Brian Iddon MP (Bolton South East). Over the last two years the APPMG has been particularly active with the launch of the Markets Policy Framework and special events such as the recent reception to present awards to the “Greenest” markets and market trader. As can be seen in the submission, more relevant and comprehensive information on markets will become available to the RMA during the year. We would like, therefore, to be included in any oral evidence sessions to ensure that the Committee has the latest information.

Summary 1. Markets in the UK have been undergoing a transformation over the past decade. This change has been led by innovation—in strategic and operational thinking, and in recognising the need to respond to the needs and aspirations of modern consumers. Examples of this include the development of farmers’, Christmas, organic, arts & crafts and continental markets, as well as the modernisation of some traditional street and indoor markets. They are attracting new businesses and entrepreneurs into the sector, by acting as “business incubators”, though more needs to be done to encourage this economic growth. 2. The change processes underway also recognise the positive environmental contribution that markets can make—reduced packaging/waste, increased waste recycling, providing local access so reducing customer travel, and embracing local and organic produce. 3. The popularity of these markets also demonstrates the continuing role that markets can play, not just in the retail high street, but also as social spaces. They provide meeting points for communities and create local jobs. The social and cultural diversity of market traders and customers is testament to their success. 4. There is also growing recognition of the contribution that markets can make to national policy issues such as the food and health agendas. In addition to providing access to fresh fruit and vegetables at cheaper prices than supermarkets, many markets are now using their role as “community hubs” to promote healthy eating and lifestyles. Food remains one of the key drivers for change and innovation in wholesale and retail markets in the UK. 5. The Markets Policy Framework 2007, produced by the Retail Markets Alliance and launched by the All Party Parliamentary Markets Group (APPMG), identified that successful markets contribute to the social, environmental and economic well-being of the nation, by: — Providing a sense of place. — Being part of the nation’s cultural heritage. — Remaining an important element of the economy, particularly in relation to independent retailing, local employment and business start-up opportunities. —OVering local access to fresh produce and other commodities. — Reducing environmental impacts eg by eliminating excessive packaging/waste. 6. However it is not all good news. Many traditional markets, market operators and traders have failed to grasp the need for change. These markets are in decline and it is very likely that a significant proportion of them will close, unless radical action is taken. 7. There is also an historic lack of research and data relating to the markets sector. Although some progress is being made, the need for accurate and up-to-date information is a serious shortcoming and must be addressed.

Recommendations 8. Recommendation 1—simplify central government’s relationship with retail and wholesale markets by appointing a Minister with responsibility for markets, ensuring that all relevant departments “think markets” when considering policy and legislative change, and have named contacts within relevant departments responsible for liaison and communication with the markets sector. 9. Recommendation 2—support and commission, at central and regional government level, further research into the scale and value of retail and wholesale markets in the UK. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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10. Recommendation 3—promote business start-up opportunities on markets as part of a national scheme, in partnership with regional and local government. 11. Recommendation 4—encourage Sector Skills Councils to develop specific learning and skills material for the markets sector. 12. Recommendation 5—ensure that PPS 6 Guidance specifically addresses the issue of supporting independent retailing/markets. 13. Recommendation 6—encourage local planning authorities to produce Supplementary Planning Documents in relation to markets and market developments. 14. Recommendation 7—encourage local authorities to recognise the importance of markets in delivering the wider policy agenda. This should include the appointment of a “champion” for markets to ensure they receive appropriate recognition. 15. Recommendation 8—encourage local authorities to invest in their markets, particularly where markets currently produce a trading surplus. 16. Recommendation 9—encourage local authorities to produce clear policy guidance in relation to the holding and licensing of markets within their administrative area. 17. Recommendation 10—repeal the Pedlars Act 1871 (as amended) and ensure that the licensing of all street trading is in the hands of local authorities. 18. Recommendation 11—amend the exemption contained in the Town and Country (General Permitted) Order 1995 so that markets above a particular size are outside the exemption. 19. Recommendation 12—consider the codification of the term “farmers’ markets” so that the term can be protected by law.

TraditionalRetailMarketsToday How has the picture changed over the last 10 years? 20. One of the problems facing the markets industry is an historic lack of information and research into the sector. Many market operators across the country undertake local surveys but little has been carried out nationally to measure the cumulative value of a market. 21. The report of the First National Retail Markets Survey (“The Rhodes Study”) was launched in 2005. The research and report were jointly funded by NABMA and the NMTF. The main aim of the survey was to establish and identify: — the number of markets operating across the country; — the locality of the market; — the type of market; — stall occupancy rates; — the number of market traders; — market trader ethnicity; — the number of people employed across the market industry; — the number of shopping visits per year; — all turnover by both the operator and at the stall; and — trends using data from 1998 to 2004. 22. The study revealed the following headline figures: — Over 1,150 retail markets are operated within the UK. — Over 150,000 stalls are available each week. — The market industry oVers employment to more than 96,000 people. — Over 46,000 market traders work across the UK. — Over £1.1 billion spent at market stalls each year in the UK. — The average stall occupancy rates are 75% and falling. — Over 435 million shopping visits per year. — Over £125 million turnover by market operators each year. 23. A PhD studentship (the first to look at retail markets in the UK) is currently underway investigating the changing place of traditional food retailing in English retail markets. The results are not yet available, but the study includes developing a national markets database and this is already showing a significant increase in the number of UK retail markets. This is largely due to the growth in specialist markets, including farmers’ markets and “country markets”, which had not been recorded previously. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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24. Farmers’ markets, whereby stallholders only sell what they produce/make, are drawn from an area that is local to the market—typically 30 miles, and the principal stallholder is involved in production (so able to discuss farming/production practices with shoppers) were initiated in 1997. FARMA research (2008) identified some 800 farmers’ markets across the UK (c.700 in England). 25. They have enabled the return of craft & traditional foods by creating a regular alternative to conventional supermarket food chains. They reconnect farming with their local community and can enable a rural/urban dialogue.

Are the number and types of markets in decline? If so, why? 26. It is a mixed and complex picture. It is clear that some markets and market types are in decline, but equally many markets are thriving. 27. The Rhodes Study concluded that General Markets across the UK, the core of most market operators business, are in decline. It also concluded that there had been a significant growth in farmers’ and other specialist markets. This view is supported by the Review of London Markets 2008, commissioned by the London Assembly, which stated that “There are around 180 retail markets in London today—63 more than 10 years ago and more than twice as many as had previously been thought.” It also noted that “A significant number of borough-managed street markets have shrunk or closed down in the past 10 years.”, and concluded that “The vast majority of new retail markets are privately run farmers” or specialist markets: at least 47…have been established across London in the last 10 years. This sector is “thriving and undergoing a popularity surge across the country.” 28. There are many factors that can contribute to the decline of markets. 29. Today’s consumers have more choice, more mobility and higher expectations, and find the more modern centres/supermarkets increasingly attractive. Their “convenience”, however, may be at least partly due to a lack of alternatives. The resurgence of specialist food markets shows that a market at the end of the street can be both convenient and attractive, providing there is good access and councils recognise the importance of customer parking. 30. The trend towards shopping on line also continues to grow. 31. Regeneration of our towns and cities often results in a shifting of the commercial/retail centre, leaving markets isolated. Equally, regeneration can result in dispersal of the market’s traditional catchment population. The result is shoppers’ “footfall” being moved away from the traditional retail markets. Regeneration can also negatively aVect the accessibility of markets by diverting public transport away from traditional markets, and by increasing the availability of car parking (sometimes free or subsidised) as part of their developments. 32. Retail markets have also experienced a lack of investment over the years with local authorities (the principal market operator) choosing to invest in services of higher priority, eg housing, social services and education. Hence, some market facilities now look tired compared to new modern retail facilities. Equally, many traditional retail markets that were “modernised” in the 1960s and 70s now appear as concrete bunker- like buildings that do not appeal to modern shoppers. 33. The lack of investment in markets consists of more than just capital. The failure of many local authorities to recognise the strategic value of markets, coupled with local government reorganisation, has had some negative consequences. Many local authorities see markets as a problem that needs to be controlled and managed, rather than a vibrant part of community life. The management responsibility for markets within local authorities varies significantly, ranging from Regeneration, Economic Development to Parks and Leisure, and even Printing. The calibre of manager can also vary considerably, and the common “regulatory” approach taken by many authorities means that they lack the retail and commercial skills necessary to understand, attract, promote and support the businesses that operate within their markets. There is also a general lack of eVective marketing and promotion of markets. 34. The lack of information and data about markets also contributes in that it is diYcult to mount a cogent case for investment or strategic development if the “value” of the markets is unknown. 35. Some market traders, too, have contributed to the decline. Complacency and a lack of understanding of modern retail trends and customer expectations, means that they are not always oVering what the customer wants.

Are there obstacles preventing the creation of more markets? 36. A number of obstacles can be identified. These include markets being perceived as a low strategic priority within local authorities, a lack of public sector capital to invest in the markets, the perceived diYculties of managing a significant number of independent traders, perceptions among private sector developers that markets deliver a “low yield” and that, therefore, the return on their capital investment is best maximised elsewhere. On this last point, however, there is some evidence emerging that some developers are starting to recognise the benefits of incorporating a retail market into their developments as a footfall generator. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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37. Crucially,there is also a lack of new young traders entering the sector. Markets are an untapped source of employment. Whilst the RMA is supporting an initiative with Make Your Mark to attract new entrepreneurs into markets, much more has to be done, and this remains one of the industry’s key priorities.

Are there obstacles hindering the successful business of existing market operators and traders? 38. In addition to the points raised in paragraphs 29-35, modern retailing requires extended trading— seven days a week and late night opening. This trend presents an obstacle to market traders who can be sole traders or who run a family business and cannot aVord to take on additional staV to compete with these extended trading hours. Also, market trading is still largely cash-based, and the lack of credit card facilities on markets restricts customer choice.

What has been the impact of specialist markets eg continental and farmers’ markets, and do such markets integrate successfully with older markets? 39. There has been a clear growth in speciality markets in recent years, which provides evidence that good and relevant markets remain fundamentally popular with customers. They also bring clear benefits to the wider economy. Economic Impact Studies have been commissioned in relation to Christmas markets in Belfast and Manchester. These showed Net Additional Expenditure of £5.3 million and £22.4 million respectively in the local economy. 40. In relation to farmers’ markets, FARMA has conducted annual consumer tracking research across UK for the past five years. In 2008 this showed 57% awareness and 30% of all homes shopping at a farmers’ market at least annually. 41. Farmers’ markets have developed from a grass-roots movement, organised diVerently from general markets, with no permanent market facilities and operating weekly to monthly. They take place in town centres, secondary shopping areas, car parks, alongside farm shops, village halls. They are operated by a range of organisers, eg: — producer-owned organisations; — specialist private operators; — local authorities; and — voluntary groups. 42. In relation to their integration with older markets, there are three models—the specialist markets are fully integrated into existing markets, the specialist markets take place in the same location as existing markets but take place on diVerent days/times, or the market operates completely separately from the existing market.

TheirSocial andEconomicEffects What social and economic eVects do traditional retail markets have on their local communities? 43. Markets have existed for millennia and historically ensured the residents of towns and cities had access to aVordable fresh food and other commodities. They have also acted as a key source of retail innovation, creating many of today’s multi-national retailers eg TESCO (Hackney, East London), Marks & Spencer (Leeds), and Morrison’s (Bradford). This innovation is still being displayed today through, for example, Farmers’ and Christmas markets. 44. In 2008, NABMA and the World Union of Wholesale Markets (WUWM) looked at a number of economic indicators for market—the number of markets, the number of market traders, the number of people employed on markets and the economic (business) turnover of the markets per annum. This is summarised below for a number of EU States:

State No. markets Population No. traders No. employed Gross turnover (Million) (Billionƒ p.a.) France 4,900 63.8 50,000 20,000 4.75 Germany 3,000 82.2 50,000 150,000 4 Ireland 750 4.2 15,000 20,000 0.89 Netherlands 1,000 16.4 24,000 45,500 3.1 Spain 1,300 45.1 75,000 278,000 5 UK 1,200 60.6 46,000 46,000 1.38 Totals 12,150 272.3 261,000 559,500 19 Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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45. Extrapolating the data for the whole of the EU produced the following:

Population Gross turnover EU Total No markets (Million) No traders No employed (Billion ƒ pa) 25,000 495.5 400,000 1,000,000 35

46. Collectively, the retail markets industry across the EU is comparable to a global company such as TESCO. 47. Retail markets remain an important part of the retail oVer in towns and cities. Research commissioned by the London Development Agency (LDA) in November 2005 to inform the Mayor’s Food Strategy, found that customers shopping for food at street markets spend between £3,000 and £15,000 a day in nearby shops, and local retailers, were almost universally supportive of markets. 48. The 2008 review of street markets by the London Assembly identified that “Street markets are important to people as sources of aVordable high quality food. A shopping survey undertaken by the New Economics Foundation in 2005 found that in Lewisham a shopping basket of food cost £4.74 from the market compared to a cost of £7.18 to buy the same food from a supermarket.” The NMTF Shopping Basket Survey 2008 also showed that, across a range of thirteen items, markets were on average 6% cheaper than supermarkets, and in relation to fresh produce, markets were 32% cheaper than supermarkets. They are thus in a position to respond positively to the current economic downturn and may not be as badly aVected as some other retailers. 49. In addition, markets are able to respond to a number of other social and economic drivers: — Changing consumer preferences in relation to a desire for more seasonal local fresh food, and better provenance. — Contributing to government initiatives—food security, obesity/health promotion, sustainability and climate change, business-start-up/employment generation (particularly for new migrants), community cohesion, and regeneration. — Reacting to changing demographics—an increasingly elderly population will become less mobile, and markets are in a position to “take the market to the community”. 50. In 2006, the Joseph Rowntree Foundation conducted research on Markets as social spaces. It concluded that: — Markets were important sites of social interaction for all groups in the community, but most significantly for older people, especially women. Markets also represent important social spaces for mothers with young children, young people, and families with children, particularly at weekends. — Markets had a significant social inclusion role, as places to linger, particularly for older people and young mothers. Some markets also appeared to be inclusive of disabled people, although in other places this was less evident. — The social life of traders played a significant role in creating a vibrant atmosphere in markets, and in forging social bonds and links in the trading community as well as with shoppers. — For markets to function well as social spaces, various factors are significant. Essential attributes include, a diverse range of products fitting well with local needs and tastes; cafes or food vans on site or nearby; good access to the site, especially by local transport; an active and engaged community of traders; and a sense of the unexpected. — Where markets are managed by local authorities, good local management and a strategic vision by the council could help with their development. It was evident from the research, however, that some markets do not have a high profile or significant resourcing from the councils. — There is limited national and local policy to encourage and support markets’ role as a key social and economic space for the local community.Markets could play a more significant role in national policy agendas such as social inclusion, town centre regeneration and healthy eating.

What qualities contribute to a successful market delivering social and economic benefits, and are there examples of best practice that have a wider application? 51. It is possible to identify a number of key factors that contribute to a successful market. These include: — Critical mass. — A sense of place. — Accessibility and permeability. — Retail oVer targeted to customer base/catchment. — Vibrancy, dynamism and theatre. — Social interaction (dwell time). Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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—EVective management. — Integration with surrounding retail oVer. —EVective marketing/PR. 52. There are many examples of good practice to be found in markets throughout the country.These have wider application, and are currently being developed as case studies. They include: — Borough, London—an example of the declining market transforming itself through food to become an internationally renowned destination. — Bradford International market—celebrating the cultural and social diversity of the area. — Bristol St. Nicholas Market—an example of a market introducing robust and eVective environmental management systems, and National Winners of NMTF Green Awards. — Bury—an example of a thriving market—well promoted and marketed. Winner of BBC radio 4 market of the year award. — Islington Whitecross Street—an example of a London Street market being transformed through a regeneration project. — Longsight, Manchester Chand Raat market—celebrating the end of Ramadan and supporting the cultural and social mix of its location. — New Covent Garden Wholesale Market—an example of integrating wholesale and retail supply via “Local to London”. — Northenden, Manchester—Community Food market introduced in response to “food desert”/ customer demand. — Nuneaton—an example of a thriving market town integrating its market into town centre management. — Stroud Farmers’ Market—a weekly market of local food and craft producers that has revived a town centre and has superb community support.

Realising thePotential ofTraditionalRetailMarkets Does local government support markets eVectively? 53. As can be seen from the details above, the picture is mixed. There are many examples of local government supporting markets, but the key issue here is the eVectiveness of that support.

What are the advantages and disadvantages of local authorities having powers to operate markets? 54. Advantages include good links to public policy, an understanding of “the public good” that markets perform, eVective strategic co-ordination, the ability to link markets into regeneration projects, open and responsive management and eVective regulation. 55. Disadvantages include a lack of strategic understanding of the benefits and role of markets eg their contribution to key policy agendas such as food and health, lack of management expertise and skills, risk aversion—no entrepreneurial spirit, profits being used to support the general fund and a lack of reinvestment in the markets.

Does central government support markets eVectively? If not, what additional support should be provided? 56. No. One of the fundamental issues in relation to central government is where do markets fit? 57. The Markets Policy Framework 2007 identified that markets contribute to the following key areas: — Regeneration/economy. — Food & health. — Culture & tourism. — Community cohesion. — Environment. 58. This, coupled with the regulatory frameworks that markets operate within, means that the following departments all have some link or potential link with markets: — Department for Business, Enterprise and Regulatory Reform (BERR). — Department for Children, Schools and Families (DCSF). — Department for Communities and Local Government (DCLG). — Department for Culture, Media and Sport (DCMS). — Department for Environment, Food and Rural AVairs (DEFRA). Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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— Department of Health (DoH). — Department for Innovation, Universities and Skills (DIUS). 59. The result of this is that markets remain largely hidden and “oV the radar” when it comes to departmental thinking. 60. Two changes should be considered—the identification of a single central government department that takes a strategic and co-ordinating role for markets nationally, and that all departments when considering policy or legislation “think markets”, ensuring eVective engagement with the sector.

Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration? 61. Yes. Some aspects of the food and health agenda are now considered in a little more detail by way of example: 62. In July 2008, the Cabinet OYce published Food Matters—Towards a strategy for the 21st Century. It states: “Street markets can be an important source of aVordable, good-quality food including fresh fruit and vegetables. They can be significantly cheaper than supermarkets and so provide access to good-quality fresh food to those on low incomes.” It also states: “The success of farmers’ and specialist markets and large revitalised city markets provide models for greater local engagement with fresh, aVordable food and highlight an opportunity to modernise or develop new food markets. Cities and towns can, through their planning and food strategies, support farmers’ markets and traditional street markets by: — Identifying sites for markets, especially sites with good links to local transport infrastructure; — Promoting markets and access, and challenging restrictions that limit signage for shoppers about opening times, and — Looking at easing parking restrictions near markets to increase access.” 63. Despite this, the role that markets (farmers’, wholesale and retail) can make to the governments’ food strategy and its obesity strategy (Healthy Weight, Healthy Lives) in terms of food access, food security, local food, eVective and eYcient supply chains, waste minimisation and recycling, education and health promotion appears to be significantly underestimated. The same is true of the other policy areas listed at paragraph 57.

Planning andLicensingIssues Do local and national planning regulations support or hinder the development of markets? 64. The importance of markets has been highlighted in planning guidance. Planning Policy Statement 6: Planning for Town Centres provided the following encouragement to local authorities: “Street and covered markets (including farmers’ markets) can make a valuable contribution to local choice and diversity in shopping as well as the vitality of town centres and to the rural economy. As an integral part of the vision for their town centres, local authorities should seek to retain and enhance existing markets and, where appropriate, re-introduce or create new ones. Local authorities should ensure that their markets remain attractive and competitive by investing in their improvement.” 65. Currently a review of planning guidance is underway and the RMA has made a detailed submission urging that the content of PPS 6 should be retained and strengthened. It is vital that local authorities in particular are encouraged to invest in their markets because of the wider value that markets can bring to town centres and local communities. 66. Details are still awaited from DCLG as to how the revised PPS6 guidance will actually support and encourage independent retailing, including markets. 67. Normally a market requires planning permission, but an important exemption exists within the Town and Country Planning (General Permitted Development) Order 1995, which provides certain “permitted development” rights. EVectively the provisions grant planning permission in respect of the holding of a market (including car boot sales) for up to fourteen days in total in a calendar year. 68. Over the last 20 years there has been an enormous growth in the number of car boot sales. What started essentially as a fund raising initiative for local charities has become commercially driven with many car boot sales comprising hundreds, and sometimes thousands, of vehicles and attracting many thousands of potential customers. 69. While the permitted rights under the 1995 Order can be removed by a local planning authority there is little evidence that this has been done. 70. It is clear that many car boot sales are not regulated in an eVective way and this results in a range of problems such as traYc noise and pollution. There is also evidence that some car boot sales are used to dispose of counterfeit and fake items and also stolen goods, and better regulation and control is required. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Do licensing regulations support or hinder the development of markets? 71. In addition to directly operating markets, local authorities can license markets and car-boot sales by virtue of the charter and/or statutory powers they hold to operate markets (Market Rights). 72. Section 37 of the Local Government (Miscellaneous Provisions) Act 1982 enables a local authority to receive advance notice of a temporary market. These provisions are adoptive and carry a fine of up to £1,000. In isolation these powers are limited and have been diYcult to enforce eVectively but as part of a general planning and licensing approach by local authorities they can be used in a more meaningful way. 73. Markets outside of London are covered by the street trading legislation contained in Section 3 and Schedule 4 of the Local Government (Miscellaneous Provisions) Act 1982 and it is clear that many markets suVer from the current inadequacies of this legislation. Many unlawful traders, purporting in some instances to act as pedlars, sell a wide range of counterfeit and fake goods often undermining sales in markets and other retail outlets. The problems caused by these traders have reached such a level that a number of local authorities including Newcastle, Leicester and Maidstone have already promoted local legislation and a number of others including Manchester and Nottingham are currently pursuing local legislation.

What improvements could be made to the planning and licensing regimes to aid the development of markets? 74. Given the importance of planning considerations to the future success of markets, planners and market operators need to work more closely together. 75. Markets will continue to be an important part of town centres, and planning guidance must not only encourage local authorities to invest in markets but also ensure that town centres remain the focus of community life and retail business. Markets cannot flourish in isolation and the success of a particular market is normally measured by the success of the town centre in which it operates. 76. It is important that all local planning authorities provide clear guidance on the holding of markets within their administrative area. There should be encouragement to provide planning guidance (Supplementary Planning Documents) giving operators of markets information on planning requirements and details of measures that the planning authority considers appropriate in terms of the arrangements for the development of markets. 77. Local authorities should also develop, alongside this planning guidance, relevant policies relating to the licensing of markets and car boot sales. Such policies can provide limits on the size, frequency and operating arrangements. Many local authorities already operate such policies but it is important that there is more general encouragement to adopt this measure. 78. The RMA would like to see the exemption contained in the Town and Country (General Permitted) Order 1995 reviewed so that markets of a particular size are outside the exemption. 79. The RMA has been conducting a national campaign to reform the street trading legislation, particularly asking the Government to address the position of pedlars. Currently the Government is considering its position following receipt of research undertaken by Durham University. However, whatever the outcome of the research, it is important that the licensing of all street trading is in the hands of local authorities and is not, as is currently the case, a divided responsibility between local authorities and the Police. 80. The RMA supports the need to set standards for the continuing development of farmers’ markets through the FARMA Certification scheme, which has been instrumental in maintaining the distinctive nature of farmers’ markets. 81. The RMA also supports FARMA in its call for the codification of the term farmers’ market by the Food Standards Agency so that their distinctiveness can be enforced through Trading Standards.

APPENDIX 1 THE RETAIL MARKETS ALLIANCE This submission is made on behalf of the Retail Markets Alliance (RMA) which represents the four major organisations involved in the markets industry in the UK. The RMA was formed in 2008 with the intention of representing the views of the markets industry on major issues, and comprises the following organisations: — The National Association of British Market Authorities (NABMA). — The National Market Traders’ Federation (NMTF). — The Association of Town Centre Management (ATCM) and — The National Farmers’ Retail and Markets Association (FARMA). NABMA represents local authority operators of markets and also a significant number of private operators. Currently NABMA represents one hundred and sixty two local authorities and fourteen private operators and provides advice, good practice and a range of other services to its members. The NMTF represents the interests of more than 34,000 members throughout the UK. As well as providing them with the insurance cover they need to trade on retail markets, the NMTF lobbies on their behalf at local, national and international government level, and strives to ensure the industry not only Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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survives, but thrives. The organisation also mounts major publicity campaigns to raise public awareness of the choice and value of markets. Through its popular website (www.nmtf.co.uk) the Federation provides both traders and shoppers with details of more than 800 retail markets. The ATCM is a UK wide organisation engaged in the promotion of vitality and viability in town centres. It supports nearly 600 members including practitioners in town centre management initiatives, retailers, property owners and government agencies. In helping town and city centres realise their natural roles both as prosperous locations for business and investment, and as focal points for vibrant, inclusive communities, the ATCM has: assisted governments in England, Wales and Scotland in introducing Business Improvement District legislation; supported the formation of the skills and accreditation body the Institute of Place Management; and has formed valuable links with both the International Downtown Association based in the US and TOCEMA which includes similar European based town centre trade bodies. FARMA is a social enterprise of farmers and producers selling on a local scale and farmers’ markets organisers. FARMA works throughout the UK and is the largest organisation of its type in the world representing direct sales to customers through farmers’ markets and other outlets. FARMA is constituted as a co-operative having a sector developmental role as well as setting standards through a Certification programme for farmers’ markets.

APPENDIX 2 SUPPLEMENTARY MATERIAL SUBMITTED 1. APPMG Markets Policy Framework Document. 2. The First National Retail Market Survey—Report 2005.

Memorandum by City of Bradford Metropolitan District Council (MARKETS 14) Bradford Markets Service has been working to a five year strategy originally agreed by an all party Council Executive in February 2003. The Council’s Executive not only approved the current markets strategy but also agreed to a capital investment plan funded from markets surpluses. The creation of a dedicated reserve fund generated from annual markets surpluses has to date delivered valuable and significant capital improvements to the markets facilities. These improvements have included carrying out essential maintenance repairs and enhancements/ improvements to the buildings and the planned investment in the service’s assets has enabled significant returns to be realised. Markets overall income levels have increased significantly over the last five years The strategy was recently reviewed and a second strategic report for the Service is being compiled. A principle priority of the new strategy focuses on how the Service could add value to the regeneration aspirations of the district and, in particular, Bradford City Centre. Bradford Markets Service is recognised nationally as providing and delivering major market style events such as the Bradford International Market in 2004 and 2006 which attracted over 650,000 visitors generating £10 million in economic activity in the City. I have taken the opportunity to enclose a couple of CD’s which shows a number of Market style events that we have delivered over the last few years.

1. BACKGROUND 1.1 The Council’s Markets provision comprises indoor markets in Bradford, at the Oastler Centre and Kirkgate, and Keighley; and outdoor markets at Shipley and Bingley. 1.2 The Service also operates a successful Wholesale Market and organises local produce markets and themed market events across the District. 1.3 The Service supports over 300 small businesses and over 800 full and part time jobs, and provides around 800 lettable units totalling 120,000 sq ft of retail and wholesale floor space. 1.4 Between eight and nine million visits are made to the three indoor markets on an annual basis. (See Appendix A for more detailed information on Bradford’s market operations). 1.5 At its meeting of 18 February 2003, the Council’s Executive approved a five year Markets Strategy which included approval to retain annual surpluses for reinvestment into the Service. 1.6 In September 2003 this was enhanced, approving the creation of a dedicated fund generated from annual markets surpluses to be used for the future maintenance and development work on the markets portfolio across the district. As a result, a rolling 10 year reinvestment programme for the Markets Service now runs alongside the revenue budget. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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2. Markets Strategic Positioning 2.1 National context In 2007 an all party parliamentary group accepted a national markets policy framework which stated: “Successful markets matter in all their forms. Whether they are wholesale, specialist, farmers’, street or covered markets, they contribute to the social, environmental and economic well-being of the nation. They do this by: — Providing a sense of place. — Being part of the nation’s cultural tradition. — Remaining an important element of the economy, particularly in relation to independent retailing, local employment and business start-up opportunities. —OVering local access to fresh produce and other commodities. — Reducing environmental impacts eg by eliminating excessive packaging/waste”. The Strategy Unit of the Cabinet OYce produced a report in July 2008 titled “Food Matter Towards a Strategy for the 21st Century”. The report was in response to the Prime Minister asking the Strategy Unit to take forward a project on food and food policy in the summer of 2007. The report stated “markets can be an important source of aVordable, good quality food including fresh fruit and vegetables. They can be significantly cheaper than supermarkets and so provide access to good quality fresh food to those on low incomes.” The report also stated “The success of Farmers’ and specialist markets and revitalised large city markets provide models for greater local engagement with fresh, aVordable food and highlight an opportunity to modernise or develop new food retail markets. Cities and towns can, through their planning policies and food strategies, support farmers’ markets and traditional street markets.” The Council’s “Big Plan” (Sustainable Community Strategy for the district) highlights five priorities to transform the district: — Regeneration of the city and towns — Improving skills at all levels — Improving education outcomes And two cross cutting priorities — Cohesion and sustainability Markets will play a key role in action plans to deliver against these priorities and in the changing community leadership role of Local Government addressing community cohesion and neighbourhood renewal programmes. The 2006 Government Planning Policy (PPS6) stated that “Street and covered markets (including Farmers’ markets) can make a valuable contribution to local choice and diversity in shopping as well as the vitality of town centres and to the rural economy. As an integral part of the vision for their town centres, local authorities should seek to retain and enhance existing markets and, where appropriate, re-introduce or create new ones. Local authorities should ensure that their markets remain attractive and competitive by investing in their improvement.”

2.2 Local context Further to plans for the development of Broadway and Park at the Heart the Council has recognised the need to maintain a strong and cohesive city centre through promoting a commercially strong, diverse and attractive area at the top of town to encourage pedestrian movements through the centre from the Broadway development. The Markets have a key role to play in the area known as the Markets Quarter within the City Centre Masterplan for which we have a local development planning framework which identifies it as an area for mixed use development. One scenario is that the two Bradford retail Markets will consolidate in this area and focus on speciality products including an emphasis on fresh produce and ethnic products and foods. The area is central to the “World Mile” proposals continuing the ethnic theme along White Abbey Road. A Development Brief is being prepared in conjunction with Bradford Centre Regeneration which will look at opportunities the area oVers to create a unique regional if not national visitor attraction and destination. As the Westfield Broadway shopping centre makes progress on site it is important to take forward the aspirations for the Markets Quarter to maintain a city wide regeneration programme. Markets also address the health and well-being agenda through the development of new markets for regional and local food at wholesale level, the fruit and vegetables into schools schemes, creation of food business start ups particularly in relation to BME communities, and at retail level ensuring local communities have access to fresh produce. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Regarding growth in the local economy the future of markets rests in its ability to develop small businesses and oVer less well oV sections of the community (which includes migrant groups) the opportunity to become economically active. A key strength of the service, particularly amongst tenants and traders, is the equality of opportunity and fairness attributed to Council run venues and their key contribution to the cohesion agenda. The Service generates welcoming environments and demonstrates the strengths of a multi-community in a commercial environment and sustains shopping venues for the less well oV in the community. In addition market style events on both a large scale and within communities have added to a feeling of local well being. On environmental issues the Markets Services has introduced a range of initiatives reducing packaging and increasing waste recovery and recycling. The markets are significantly contributing towards two of the Government’s national indicators on climate change —NI 185 & NI 186 —by identifying means of reducing energy consumption at all of their properties and reducing mileage travelled for business across the district.

3. ServiceAreaGrowth/Trends 3.1 The 2003–08 Markets Strategy took the evolving role of the Local Authority and set the commercial world of the markets against the Council’s priorities and its long term vision. 3.2 The case for the Council providing the Markets service was made along the lines of their ability to: — Be community builders, restoring pride and sense of ownership in the local population. — Be a nurturing ground for small businesses to start up and grow. — Add value to the leisure repertoire of town and city centres and tourist locations. — Provide employment opportunities for a wide range of local people. — Add value to the economic activity of urban centres and be an essential link in local commercial supply chains. — Be commercially profitable. — Be the innovators and creators of themed events as proven mechanisms for enlivening urban centres and generating a community “feel good” factor. 3.3 The 2003 strategy created a five to six year plan for the markets based on reinvestment in core business and an expansion programme into themed events across the district. 3.4 The key areas addressed over the last five years with some considerable degree of success are: — To provide attractive, clean and safe shopping environments for the public, traders and tenants of Bradford. — Maintain and where possible increase the trading surplus of the Markets Service by improving revenue income and controlling costs by eYciency gains. — To provide suitable opportunities and advice for the establishment and nurturing of small businesses as well as raising the standard, variety and quality of current service providers. — To support the achievement of the Council’s Vision and Corporate Plan for the region of Bradford through an holistic approach to the provision of a Markets Service. 3.5 Achievements from 2003 include: — March 2004—Highly commended LGC Awards Management Team of the Year category, when in Customer Services Dept. — August 2004—Bradford International Market Festival attracted over 600,000 visitors and was the biggest and first event of its kind ever hosted by Bradford Council. — July 2005—Achieved ISO 9001 accreditation for operational and financial procedures. — September 2005—Short listed White Rose Awards for Tourism—Best Tourism Experience of the Year. — August 2006—Bradford International Market attracted over 700,000 visitors over four days (over 200,000 tourists from o/s the District) and over £10m in local economic activity generated. — Jan 2007—Commended, NABMA Market of the Year Award. — March 2007—Winner ATCM Yorkshire Regional Award for Enhancing the Retail OVer with BIM 2006. — March 2007—Bradford Markets Management Team delivered a one day training seminar on Markets Management Best Practice to market practitioners from across the UK. — April 2007—Short listed Yorkshire Digital Awards in business to business category for Markets Website. — May 2007—Achieved ISO 14001 EMS accreditation for Environmental Good Practice. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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— June 2007—Winner and case study provider, IEMA Awards for Environmental Good Practise— waste recycling at the Wholesale Market.

— June 2007—IIFA Bollywood Fringe Festival (as part of the Yorkshire IIFA Awards) attracting over 30,000 visitors and generating over £300k in local economic activity.

— June 2007—Short listed SCEPTRE Awards with Kirkgate Shopping Centre recognising environmental best practice in Envirowise Managed Shopping Centre Scheme.

— Sept 2007—Short listed White Rose Awards for Tourism Best Customer experience.

— March 2008—Bingley Open Market re-launched on the new town square.

— August 2008—Bradford Market Service cited as a good example of partnership working between public and private sector in the All Parliamentary Urban Development Group’s report on “Greening UK Cities” buildings.

— September 2008—Invited to run a workshop at an environmental conference hosted by the Institute of Environmental Management and Assessment (IEMA) and DEFRA in London.

— November 2008—Short listed by the Chartered Institute of Waste Management in its awards for Environmental Excellence, in the category of sustainable facilities management, specifically for the work undertaken at St James’s Wholesale Market.

3.6 Over the last three to four years the Service has responded to requests from other Authorities and has advised and assisted in the development and delivery of themed market events. Commissions continue to be received and support is provided to other Authorities subject to capacity.

3.7 The Service has regularly compared its performance with other Authorities in various benchmarking exercises. The most recent 2007–08 model (below) indicates the balance in Bradford of market days provided, innovative management and eVective reinvestment planning has resulted in comparatively successful levels of shoppers visiting, occupancy levels and surpluses generated.

SERVICE COMPARISON 2007–08 BENCHMARKING—Y&H MARKET SERVICES

BRADFORD KIRKLEES SHEFFIELD WAKEFIELD Surplus Generated 18.4% 1.12% "19% 0.63% Visits (per 1,000 population 1,740 N/A 1,522 N/A Lettings achieved 89.46% 81.76% 88% 67.84% Stall Days provided (per 422 499 256 502 1,000 population) Rent, inc arrears 1.99% 1.42% 15% 1.56% Investment per 1,000 population £1,211 £4,362 £Nil £Nil Customer satisfaction 72% N/A N/A 59%

3.8 The Service’s key performance indicators and business drivers since 2003–04 are detailed at Appendix B.

4. FinancialPosition 4.1 Revenue In February 2003 Executive approved the current markets strategy and approved a capital investment plan to be funded from markets surpluses. In September 2003 Executive further resolved that the “creation of a dedicated reserve fund generated from annual markets surpluses be approved to be used for future maintenance, re-investment and development work on the markets portfolio across the district”.

As a result of these decisions an investment programme has been implemented and to date delivered valuable and significant capital improvements to the markets facilities. These improvements have included carrying out essential maintenance repairs and enhancements/improvements to the buildings.

This planned investment in the service’s assets has enabled significant returns to be realised. Markets overall income levels have increased significantly over the last five years—although a note of caution must be expressed as the economic downturn begins to impact on the Service. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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MARKET SURPLUS

(£K’S) 2002–03 2003–04 2005–05 2005–06 2006–07 2007–08 Controllable expenditure 2,076 1,702 2,274 2,024 2,280 2,171 Income 2,338 2,237 2,477 2,652 2,884 2,753 Trading Surplus "261 "535 "203 "658 "604 "582 (200k bim) In 2006–07 the markets accounts were transferred into the Council’s general account from the trading account. From that date the annual surpluses have been taken into the general account to meet a budget surplus target (in 2007–08 £505k). The amount now available for reinvestment is any variation from this budget target and a commuted sum of £400k per annum from the Council’s trading account.

4.2 Markets Capital Investment Programme—2003 to 2008 Funding was prioritised towards the refurbishment of Keighley Market and a phased programme of works was prepared by the Council’s external architects, Wm Saunders Partnership highlighting both essential and enhancement works that were needed to be undertaken to provide more modern shopping facilities. Refurbishment works has been ongoing taken place since 2004 and have included a new roof, entrances, lighting, heating and ventilation, internal decoration, new fire and security systems, new electrical supply and the installation of a ramp leading from the rear entrance to Morrisons. Currently a £500k market canopy is being constructed in front of the main entrance partially funded though a successful £220,000 application from the Local Enterprise Growth Initiative (LEGI) funded programme. Other areas of refurbishment that have taken place are internal repainting and new lighting schemes at Kirkgate Market and the installation of a new fire alarm system and roofing works at St James Wholesale Market.

2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 £ 000 £ 000 £ 000 £ 000 £ 000 £ 000 St James Wholesale Market 11 28 4 26 252 95 Oastler Shopping Centre 7 10 7 30 39 45 Kirkgate Market 25 14 107 55 8 10 Outdoor Markets 4 35 9 Keighley Market Hall 6 320 534 197 195 381 Other —Environmental Initiatives 26

4.3 Markets Capital Investment Programme—2009 to 2014 Future development work envisaged for the next five years will see the continued refurbishment of facilities at St James’s Wholesale Market, new stalls and flooring at Keighley Market, development of Local Produce and Fine Food Festival Markets across the district, upgrading of stalls at Shipley Open Market and major redevelopment work at Kirkgate Market and Oastler Shopping Centre, the latter subject to the City Centre regeneration masterplans

2009–10 2010–11 2011–12 2012–13 2013–14 £ 000 £ 000 £ 000 £ 000 £ 000 St James Wholesale Market 145 20 25 25 25 Oastler Shopping Centre 80 50 25 25 25 Kirkgate Market 25 35 40 50 50 Outdoor Markets 5 5 5 5 5 Keighley Market Hall 269 484 409 Markets Style Events Programme 100 100 100 100 100

5. Current Trading Performance Keighley Market continues to trade successfully attracting in the region of 50,000 shoppers per week. The Market is fully let and is an important addition to the town’s retail oVer. Recent capital investment has helped to maintain the Market’s popularity with shoppers and traders and next year a new £500,000 extension to the market will be built with funding of £220,000 from the Local Enterprise Growth Initiative (LEGI) programme. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Bingley Market has recently relocated to an open air venue on the newly constructed Town Square as part of the proposed Myrtle Walk redevelopment. The opening event was a great success and the market continues to be well received by local business and residents. The market regularly attracts over 30 stalls each market day. (three days per week) The open market in Shipley Market Square will form an important part of the future redevelopment of the town centre for which a masterplan is being worked on. St James’s Wholesale Market is trading extremely well and its 66 units are fully let. The market employs over 400 people and it is estimated that the market generates around £40 million in turnover and supports over 600 local and regional businesses. Declining confidence, the levels of shop vacancies in the city centre and the economic downturn are critical issues particularly to both the Oastler Shopping Centre and Kirkgate Market. Worryingly there is an increasing trend showing a reducing footfall and an increase in unit vacancies, particularly at Kirkgate Market where there are xxx no of vacant stalls. This market has been severely aVected by the decline in non- food sales over the last 2/3 years and competition from major low value retailers particularly Primark who are located in the Kirkgate Centre. The trend of increased unit vacancies in Kirkgate Market will continue and the long term future of the market will heed to be addressed as part of the ongoing master plans for the City Centre. The strategic direction for the two city centre markets is o combine into one trading location, preferably around a remodelled Oastler Centre Short term actions/interventions are being undertaken by the Council to support footfall levels and trader confidence. However, there is a fundamental need for a proactive approach to address the level of shop vacancies in parts of the city centre. Discussions are ongoing regarding the future of the Morrison’s Westgate store to ensure its redevelopment contributes to aspirations for the area. A recent survey of shoppers revealed a predicated significant drop in footfall per year at the Oastler Centre if the supermarket were to close. The Markets Service has entered into a partnership with the Council’s Regeneration Department to support the Bradford Kickstart programme. A Local Enterprise Growth Initiative (LEGI) funded programme has made available start up units in the Oastler Shopping Centre. The test trading opportunity will allow for the nurturing of new businesses that may be otherwise put oV by the risks/costs of starting up a new business and will provide the first step on the retail ladder that may allow their development into other opportunities such as an indoor market or retail shop The Markets Service works with new businesses providing them with a fitted out trading unit complete with signage, point of sale material and public liability insurance. A local business counsellor will work closely with Market OYcers to identify and select potential new businesses and arrange for them to commence trading. Monitoring and advice will be given to each new business during the initial 12 week trading period, including assistance to relocate to other market properties, where appropriate. The service sets itself high standards and has achieved ISO 9001 for its Quality Management Systems which includes recycling initiatives in partnership with SME’s, and 14001 accreditation for its Environmental Management Systems. This year, the service is aiming to seek accreditation in BS 18001 for Occupational Health & Safety Management Systems.

6. MarketStyleEvents As well as delivering its core business of operating three indoor retail venues, a wholesale market and open markets the service also delivers market style events throughout the district. There has been a considerable growth in speciality markets such as Continental Markets, Christmas Markets, Farmers’ Market and specialist Food Markets throughout the UK in recent years. The “signature” event that the Markets Service has delivered was the Bradford International Market held over the August bank holiday week-end in 2004 and 2006. In 2004 a four day celebration of European style street trading attracted over 650,000 visitors generating £10 million in economic activity in the City. In 2006 the International Market attracted almost a metric mile of market stalls from across the continent and beyond to a “traYc free” City Centre. To accommodate the event 10 City Centre roads were closed to traYc, nine bus stops were moved and 21 bus routes were reconfigured; the whole of Bradford’s central retail footprint was pedestrianised. To support the introduction of this unique retail oVer, two temporary park “n” ride sites were also installed. To complete the product a giant fun fair and over 60 hours of world class street theatre, entertainment and music was also commissioned for the four day event. The event attracted over 700,000 visitors to Bradford City Centre, with an average dwell time of around 5 hours and was estimated again to have generated almost £10 million in economic activity for the City. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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The Service has also delivered a programme of local events across the district which has included the following: — Bingley Food Festival. — Ilkley Festival (markets element). — Bradford Mela (markets element). — Saltaire Festival (markets element). — Monthly Farmers’ Market at Bradford City Centre and Saltaire. — Keighley St George’s Day Market. — Bradford Classic Car Event (continental market element). — Keighley Continental Market. — Bradford Christmas Market. The Service supports and advises on the delivery of themed market events for other local authorities. In 2008–09 commissions have been received from Kirklees, Rochdale, Leeds and Wakefield. In order to build on the success of these events it is proposed to extend the concept of food festivals across the district where quality locally sourced foods is made available. These events are complemented with cooking demonstrations by local, and celebrity chefs, a model that was well received when over 20,000 people attended the two day event in Bingley over the Easter week-end. It is proposed the programme would be partially funded by the markets re-investment allocation and external funding (eg; Working Neighbourhoods Fund, RDA).

APPENDIX A BRADFORD AND DISTRICT MARKET OPERATIONS TheOastlerShoppingCentre The Oastler Shopping Centre (formerly John Street Market) This venue was subject to a £4 million refurbishment in 2002 and is now at the forefront of plans for a new era seeking to deliver both a contemporary shopping experience and a realistic opportunity for small business development and growth. The centre has an excellent local shopper catchment with approximately 65,000 customers through the centre each week. The centre comprises 173 retail units as well as 27 exterior units retailing on John Street, Northgate and Rawson Road.

KirkgateShoppingHall This market is situated within the Kirkgate Shopping Centre and has direct internal access from the centre’s malls as well as a separate external access from Westgate. The shopping hall oVers 184 units and attracts approximately 35,000 customers each week. A refurbishment programme has been maintained including new lighting throughout and a complete redecoration of the hall.

KeighleyMarketHall This market oVers 29 perimeter shops and 51 island shops and enjoys an excellent position, being situated between the popular Airedale Centre at the heart of retailing in Keighley town centre. Nearby are branches of many major High Street names and the recently extended and up-graded Morrisons Superstore. The average number of customers that visit the market each week is approximately 50,000. Plans are in place for an extensive, long term refurbishment programme which will result in a modern, comfortable, customer-inviting environment, with improvements to the fabric of the building, heating and ventilation, up-graded lighting, and improved stall design and layout, all being included in the £1.5m programme.

StJamesWholesaleMarket St James Wholesale market is located on a six acre site just oV the A650 Wakefield Road, Bradford. It is easily accessible from the city centre and has convenient links to the nearby M62 and M1 motorways as well as other major towns and cities in the area. Ample parking is provided for buyers in the main hall where the bulk of the selling takes place. A wide range of fresh fruit and vegetables, exotic produce and flowers are available from over 60 trading units. In response to demand, the product range has been extended in recent years to include pre%packed supplies to cater for restaurant owners. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Shipley Open Market Shipley Open Market provides a focal point to the town centre. The open market operates on a Monday selling a wide selection of second-hand items and bric-a-brac. On Friday and Saturday a variable selection of miscellaneous goods and fresh food products are available.

BingleyOpenMarket Bingley Open Market located on the new town square adjacent to Main Street oVers shoppers the opportunity to shop at the market on a Wednesday, Friday and Saturday, this busy market has wide range of fresh produce and other goods on oVer.

SaltaireFarmersMarket Caroline Street Car Park, Victoria Road, Saltaire—third Saturday of every month 9-3pm

BradfordLocalProduceMarket Bank Street, Bradford City Centre—last Saturday of every month 9-3pm

SpecialistMarketEvents The service also runs a number of market events, such as European style, Christmas and Easter markets across the District.

APPENDIX B KEY PERFORMANCE TRENDS

2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 INCOME 2,344,824 2,356,413 2,538,416 2,662,563 2,883,956 2,753,796 SURPLUSES 174,773 291,209 385,983 537,123 505,514 471,321 OCCUPANCY LEVELS (INDOOR) 95.32% 99.50% 99.17% 99.01% 99.17% 95.39% OCCUPANCY LEVELS 99.42% 96.79% 88.77% 90.91% 83.96% 75.39% (OUTDOOR) ARREARS (% TO RENT DEBT) 2.77% 2.07% 0.25% 0.22% 0.95% 1.81% TRADERS ON DD " 26.24% 59.35% 68.84% 79.55% 85.10% 2003 2004 2005 2006 2007 2008 FOOTFALL (INDOOR) 8,146,705 8,953,102 8,201,103 8,058,169 7,860,410 7,845,861

Memorandum by the National Association of British Market Authorities (NABMA) (MARKETS 15) Summary — The National Association of British Market Authorities (NABMA) represents local authority market operators and also a number of private market operators. — NABMA has also contributed to the response from the Retail Markets Association and would want to endorse the content of that submission. — NABMA welcomes the opportunity to respond to the Select Committee and ask that the Select Committee considers the following recommendations: — NABMA will be pleased to provide further support on any of the issues referred to in this submission.

Recommendations 1. To encourage local authorities to recognise the importance of markets in delivering the wider policy agenda, particularly in terms of social and economic benefits. 2. To encourage business start up opportunities on markets as part of a national scheme in partnership with local authorities. 3. To encourage the appointment of a Minister with responsibility for markets to help in the provision of a co-ordinated approach. 4. To encourage local authorities to appoint a “Champion” for markets to ensure they receive appropriate recognition. 5. To encourage local authorities to invest in their markets, particularly where markets currently produce a surplus. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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6. To encourage local authorities to consider the most eVective way of providing a markets service, particularly through some of the innovative schemes already in existence. 7. To encourage partnership working to ensure that markets are not seen as a “stand alone” service but as part of an integrated service to the local and business communities. 8. To encourage a co-ordinated approach to retail and wholesale issues so that both sectors of the markets industry can play eVective roles. 9. To promote eVective use of the current licensing arrangements in partnership with local planning guidance.

Introduction “Markets represent our oldest and most successful form of exchange. They are the reason why many towns exist ………. nothing can beat the bustle of a market to get you into a place.” Producing The Goods—Markets and Market Places (Common Ground) Markets oVer a host of benefits to a local community including: (a) Access to aVordable local and fresh produce. (b) Support for health agendas. (c) Support for the local economy as most traders live within a short distance of the market. (d) Money collected and retained within the local economy. (e) Local employment. (f) Opportunities for new business start ups. (g) Unique retail oVer. 1. Markets have been an important local authority service for many years. Almost local authorities have the powers to operate markets. While some local authorities use powers they have derived from Charters many rely on provisions which are currently found in Part III of the Food Act 1984 which provide for the establishment and operation of markets. Reference is made in the submission of the Retail Markets Alliance to the recent history and current position of retail markets. While it is right to acknowledge that there has been an overall decline in the number of stalls occupied on traditional retail markets there has been a significant growth in farmers and other specialist markets. However, it is also right to acknowledge that the decline evidenced by the “Rhodes Study” is not widespread throughout the country. There are examples of markets continuing to be successful and are full on market days. Bury Market is an excellent example of a successful market which regularly operates at full capacity. It has won a host of national awards and during 2008 it attracted nearly 1,200 coaches and twelve million visitors. On a smaller scale Hinckley in the Midlands has seen growth in the operation of its markets. Over the last year the number of stalls occupied at Hinckley Market has grown by an average of 8.2% and the market has grown from an average of 40 stalls to over 50 stalls. 2. Many markets still operate with a profit margin. In Bury’s case the net profit over the last two years has been £872,000 and £901,000 respectively. In Leicester there was a profit of £585,000 in the last financial year and while the profit shown in Nuneaton and Bedworth was significantly reduced, largely because of change in accounting procedures, a profit of £41,500 was still produced last year. 3. However it is important to look at this issue in the context of where the profit is actually spent. Many local authorities have chosen to divert the profits from their markets to other local authority services and this has produced a significant problem of under investment in many markets. Bradford has adopted a “ring fenced” approach to profits generated through its markets allowing reinvestment of the profits back into the markets. This has been responsible for Bradford having a number of innovative and large scale market projects. 4. While the examples given above indicate that substantial profits are still being earned by some local authorities it is also the case that other local authorities are currently running markets on a break even and also subsidy basis. This is particularly the case in relation to a number of small markets which probably cannot be justified on a purely economic basis. 5. However the issue of lack of investment in markets is merely symptomatic of a much wider problem of the way in which many local authorities treat their markets. While it is acknowledged that in a current local authority structure of a small number of mixed portfolios there will be management responsibility of a number of diVerent areas it is sad to note that in many instances the calibre of the markets management can vary considerably. Many local authorities treat markets in a purely regulatory role and do not embrace the wider benefit that markets can bring. This is responsible for markets management often being reactive rather than proactive. There is also a general lack of eVective marketing and promotion of markets which prevents markets having the profile they deserve. 6. While it is important that markets operate on a sound economic basis it is vitally important that markets are seen in a wider context because seen in this way markets assume a much more significant role within the local authority structure. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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7. In 2007 the All Party Parliamentary Markets Group endorsed a Markets Policy Framework which highlighted a number of key areas to which markets contribute significantly. Among these areas are: (i) Regeneration/economy. (ii) Food and health. (iii) Culture and tourism. (iv) Community cohesion. (v) Environment. 8. It is therefore important that local authorities support markets in the context of this wider agenda. Some markets will continue to make a profit but many others will struggle in the years to come if the only basis for their continuance is a financial return. While it is accepted that there will be need for some rationalisation there is a fundamental need for local authorities generally to move away from the regulatory approach which sees markets simply as an economic enterprise to a situation where markets have a role to play in the delivery of a number of important local and national policies. 9. The Government’s Planning Policy Statement (PPS6) states, at Section 2.27: “Streets and Covered Markets ( including Farmers’ Markets) can make a valuable contribution to local choice and diversity in shopping as well as the vitality of town centres and to the rural economy. As an integral part of the vision for their town centres, local authorities should seek to retain and enhance existing markets and, where appropriate, reintroduce or create new ones. Local authorities should ensure that their markets remain attractive and competitive by investing in their improvement.” 10. NABMA would urge the Select Committee to re-emphasise the importance of this encouragement to local authorities and particularly to view markets within the wider policy framework. 11. There is an important job to do in changing the attitude within many local authorities towards markets. Where this is already happening there are visible signs of the benefits that markets bring to the wider community. 12. Darlington is an excellent example of how markets are a vital part of the local community. Darlington has a wide range of markets including general markets, farmers’ markets, craft markets and special event markets. Darlington’s markets aim to provide something for everyone and with an increase in Eastern European residents in the Borough the markets now attract a diVerent ethnic mix of customers. As a result new ranges of foodstuVs are available at the markets. The markets in Darlington have made a conscious eVort to embrace the green agenda and recently Darlington Markets won the NMTF Regional Trophy in the UK’s Greenest Markets Awards 2008. The market is a perfect fit within Darlington’s town centre and adds to the general vibrancy of the activities of the town centre. 13. Bristol is another example of a local authority that takes its markets seriously. In addition to the St. Nicholas Market, located in the historic medieval centre of Bristol there are also a range of other markets which include the Bristol Farmers’ Market and the Bristol Slow Food Market. Bristol City Council has spent considerable resources in the development of a “markets quarter” within the City and this has become a prominent landmark. There is an emphasis on food sales within the markets and the standards that are observed promote high quality in the diVerent product ranges. There are also high standards of environmental care in respect of the operation and welfare of the markets. 14. Bradford City Council decided to undertake a substantial investment in the development of Bingley town centre which resulted in the creation of a new market square at the heart of the town centre. The creation of the new market square enabled the weekly market to relocate from its current position and also provided an impetus with the introduction of a Food Festival over the Easter weekend 2008. This event was extremely successful and attracted over 30,000 people. All other retailers in Bingley reported increased sales over the two days of the Food Festival. The revamped market is now at the heart of Bingley town centre and has the support of all sections of the community. Bingley Chamber of Trade have reported increased footfall in the town as a result of the local community returning to make regular purchases on the market.

15. Many local authorities promote special events as part of their markets oVer and also combine market activities with theatre, cultural festivals and other events. The added importance of such events to the markets scene was highlighted in 2006 by the Joseph Rowntree Foundation and the publication of research on Markets as Social Spaces. This report concluded that markets were important sites of social interaction for all groups in the community but most significantly for older people, especially women. Markets already represent important social spaces for mothers with young children, young people and families with children, particularly at weekends. The report also went on to acknowledge that markets had an important social inclusion role. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Realising the potential of traditional retail markets 16. Against the background that has already been provided it is clear that there is a mixed picture. Where local authorities support markets in an eVective way there is evidence of success but there are also many examples of markets that are the subject of neglect and under investment. In 2005 NABMA commissioned a research paper from the Retail Enterprise Network on the present status and future prospects for Retail Markets. This work was undertaken by Dr Alan Hallsworth, University of Surrey and Kathy Parker, Director of the Retail Enterprise Network, Manchester Metropolitan University. 17. In determining the support for markets in the future the report highlighted a number of key factors: — The need for Champions. — The need for pro-active management. — A recognition that one size does not fit all. — The need to be able to reinvest profit and benefit from the regeneration that good markets can spur. — The recognition that to do nothing is not an option. — The need for a source of financial investment that is hypothecated by local authorities in order to action the good intentions of PPS6. 18. The submission by the Retail Markets Alliance raises the issue of where markets fit within the Government structure. There are a number of Government Departments who have responsibilities for diVerent aspects of markets. While it is accepted that there will always be some overlap between diVerent Government Departments it is important that there is a Markets Champion. In the context of the value of markets to the national economy and also the policy value that markets generate the Select Committee is invited to recommend that a Government Minister should be appointed with responsibility for markets to ensure that markets have an eVective voice within Government. The same situation should be mirrored within local authorities where an appropriate Portfolio Holder should have specific responsibility for the operation of the market service within a wider policy framework. 19. EVective management is vital to the success of any operation. It is clear that markets have suVered in recent years from a failure in many local authorities to invest in adequate management systems. Given that markets fulfil the wider policy agenda staV should be expected to widen their horizons from simply viewing markets as an economic entity to an operation that embraces all the issues that have been identified in the Policy Framework. Proactive management will mean that the market service will have to link eVectively with other town centre organisations and community groups. Markets must not be seen as a stand alone service but as an important cog in the overall delivery of a local authority’s service to its community. 20. In the report issued by the Retail Enterprise Network it was acknowledged that “it may indeed be time to leave some locations behind”. There needs to be realistic appraisals of whether markets continue to be situated in the right location to serve the community.There must also be new thinking on the way markets are delivered with flexibility in operating times and a new approach by traders. Local authorities should be encouraged to look at the locations they currently use and determine where a market will eVectively deliver their policy agenda. 21. Central Government has a role to play in supporting markets by assisting with the provision of business support. New start opportunities for traders and investment in the running of markets are vital to the future success of market activities. Currently there a number of local schemes which have been piloted to bring new traders into the markets but these local schemes need to be embraced within a national framework. Warrington Borough Council is one of a number of local authorities that encourage new market traders with help from the North West Regional Development Agency. This has provided new traders with training, mentoring, business support and financial help. The scheme operated by Warrington has been successful in attracting new traders into the market. Currently a national scheme, sponsored by “Make Your Mark” is being operated throughout the country with the intention of identifying new traders. This is being done in collaboration with the National Association of British Market Authorities, National Market Traders’ Federation and Association of Town Centre Management. 22. Reference has already been made to the encouragement given by PPS6. There is evidence of substantial investment by some local authorities in their markets. Stockport covered Market Hall is a wonderful example of how investment can act as a catalyst to the market. In 2003 the market hall was identified as being in need of refurbishment and by the end of last year a major scheme of refurbishment had been completed which had involved expenditure of almost £2 million. The result is that the market hall has been restored to its former glory and is now part of a retail and heritage section of the town. 23. Since 2002 £3 million has been spent in the redevelopment of the Granger Market at Newcastle upon Tyne. In April 2008 the Guardian described this market as “one of those brilliant, old indoor markets some towns are lucky enough still to have. It is full of independent traders and craft people and folk selling stuV for less than you think possible.” 24. Liverpool is currently considering substantial investment in its St. Johns Market and the new market is likely to be the anchor point of the new shopping centre. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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25. These are examples of local authorities recognising the value of markets but there are many others who have failed to respond to the encouragement in PPS6. In this respect some additional encouragement to local authorities identifying financial assistance that might be available to invest in markets would help in the further regeneration of markets. 26. In the same way that local authorities need to understand the greater significance of markets in terms of delivery of a wider agenda to their community so the Government need to understand that markets can make an eVective contribution to achieving national goals. The Select Committee have particularly identified social cohesion, health and regeneration. The Policy Framework Document, highlighted in this submission and also in more detail in the submission from the Retail Markets Alliance, details the areas covered by the Policy Framework. This all adds weight for the appointment of a Government Minister with responsibility for markets.

Future provision of markets 27. Markets have always been a key local authority activity but there are increasing signs that a number of local authorities are looking at the provision of market services by using diVerent structures. 28. Glasgow have become the first local authority to operate their markets through an arms length limited company. This new structure enables the markets to operate independently of the local authority and attracts investment on its own terms. 29. Other local authorities have considered public/private partnerships in diVerent formats. 30. Liverpool have entered into a partnership agreement to provide investment and a new approach to the St. John’s Market in the centre of the city. 31. NABMA have a number of private market operators within its membership and these private operators have contributed significantly to the markets industry over many years. 32. There is a need for all local authorities to consider how markets can be most eVectively provided in their areas. Many will choose to continue operating themselves but others may find it helpful to contemplate new arrangements. Whatever provision is contemplated the future must be considered against criteria which embraces the wider agenda for markets.

The need for an integrated approach across retail and wholesale sectors 33. It is vital that retail and wholesale markets work together towards common objectives. 34. NABMA have a number of wholesale market operators within its membership and one of NABMA’s key objectives is to promote an integrated approach. 35. This is particularly the case in terms of delivering one of the key objectives of the Policy Framework. 36. The policy on food and health recognises the significant role that wholesale and retail markets can play in delivering this agenda. This includes promoting and supporting business opportunities at wholesale level in relation to improved supply-chain eYciency; accessing new markets for regional and local food (including local food hubs), public procurement and the fruit and vegetables into schools scheme. 37. NABMA seeks to encourage interaction between wholesalers and their retail market customers. This helps to ensure that wholesalers acknowledge their responsibility to be part of an eVective supply chain which provides consumers with what they want to eat.

Planning and Licensing Legislation 38. The submission by the Retail Markets Alliance covers the main issues that NABMA would want to support. 39. Local authorities through their existing market rights have the opportunity to license markets and car boot sales in their area. 40. Leeds and Leicester are examples of two local authorities who do this in an eVective way and NABMA supports a similar approach in more authorities. 41. It is important that standards in markets are raised and local authorities are in the best position to regulate the quality and number of markets being held. 42. This licensing approach must be undertaken within a clear planning framework and NABMA also supports the provision of local planning guidance on the holding of markets as described in the submission of the Retail Markets Alliance. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Memorandum by Bolton Council (MARKETS 16) Summary The Markets Industry in the UK is in need of support if it is to retain its long held traditions as a nurturing ground for small businesses and an anchor/community hub. Although the likes of TESCO’S, Marks and Spencer, and Morrison’s all started out life on Markets, without Government intervention, it is diYcult to see how these successes can be replicated to aspire and inspire future generations. The Planning “needs test”, employing professional lobbyists and philanthropic gestures are unavailable to this section of the retail industry. Opportunities such as this Select Committee are warmly welcomed. It is no longer reasonable to assume that pure “retail market forces” will deliver on Socio economic priorities such as “place making” or even “place keeping”. Why? Because ultimately the payback ability of the more deprived areas of the UK will mean that some locations may not be worth investing in by the private sector if their only driver is financial profit. Local Government must fill the void. Tie this into national priorities around health and the need for employment especially amongst those in deprived communities who are young and unskilled and it becomes obvious that without targeted interventions to promote self worth and self help, the Government and Local Councils are in danger of not fulfilling their social wellbeing obligations. Markets have the ability to breathe life into otherwise dead space. They create a sense of theatre and place and can be a source of tremendous civic pride. They rely on an ever decreasing client base of existing independent retailers and there is now a real need to find and encourage new entrepreneurs to keep the tradition that is a Market Stall alive. Local Authorities have a lead role to play in designing and delivering a social and physical infrastructure for the communities that they serve which is reliable, inclusive and fit for purpose both now and in future. This submission seeks to explain how a typical local authority Markets Service will add value to those priorities. This evidence is based on current thinking around re-energising the Markets Portfolio at Bolton Council and how this fits into the work of this Select Committee. It is a copy of a Committee Report that was presented to the Environmental Services Policy Development Group chaired by the Executive Member for the Environment on the Council. It should be read as a case study alongside the evidence submitted by the Retail Markets Alliance (RMA) and the National Association of British Market Authorities (NABMA). The submission outlines a strategy that seeks to deliver (at local level) the national outcomes and priorities suggested by Central Government as they stand today from an operational markets point of view. Whilst it acknowledges that Markets are part of the retail industry in the United Kingdom it does concentrate on describing how local government policy outcomes can be delivered.

AboutBoltonCouncil Bolton is one of the largest towns in England and is an integral part of the Manchester City Region. Bolton’s heritage as an important textile town is reflected in its attractions and architecture with 600 individual buildings listed as being of special interest. The Bolton Borough covers 54 square miles and has a population of 265,000. It has an increasingly diverse community profile and has a growing tradition in cycling, boxing and Premiership Football. It is also home to some of Britain’s best loved comedians. Bolton Council is a 4 Star Local Authority that is improving and achieved Beacon Status in 2007 for preventing and tackling anti social behaviour. The physical regeneration of the Borough is also progressing with major schemes planned for the Town Centre and district centres. In most a local market proposition is central to each development. To complement this physical regeneration the role of the Markets Service is growing in significance, especially with regard to healthy eating/lifestyle issues as a low cost opportunity to set up in business and as an opportunity to place keep by delivering themed market events that allow communities to engage and celebrate together.

Recommendations The Select Committee are requested to: Recommend the creation of a funded national pilot scheme to trial the concept of a Markets Apprenticeship Scheme. Applications could be assessed on a matched funding basis. Recommend that the Industry be allocated a prominent advocate within a relevant Government OYce who would be empowered to facilitate ongoing and continuous proactive dialogue on all relevant national policy matters perhaps via the Retail Markets Alliance (RMA). Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Support a bid to create funding (perhaps through RDAs) to underwrite an analysis of local independent food supply chains in the UK. This work would have a strategic fit with the “live” DEFRA Select Committee on food security and will help the industry to maximise the potential on its emerging USP as a distribution mechanism for local food and drink. Models for this already exist in Europe (see Rungis Wholesale Market, Paris France). Support the creation of national data on the retail and wholesale markets industry via perhaps via CIPFA statistics (simple profit or loss to begin with) or the CAA basis that begins to capture the City Regional benefits of local markets which in turn will help to baseline future policy and future interventions.

Bolton Market Strategy—Overview (MARKETS 16 BPa) Bolton’s Market Service has reached a critical point in its ongoing development. Its primary site at Ashburner Street is poised to be the focal point of the soon to be developed Bolton Innovation Zone (BIZ). Its satellite venues at Horwich, Westhoughton and Farnworth are also the subject of interesting and ongoing developments as the Borough looks to stay ahead of its regional peers and maintain a prime position behind Manchester in the North West. Following the Value for Money Review (VFM) earlier this year, the Service has put in place a number of initiatives aimed at reducing costs, increasing occupancy and reducing arrears (these are critical success factors for the business). This will allow the Service to negotiate the short term. In tandem with this work, redevelopment and refurbishment proposals for Horwich, Westhoughton and Farnworth are gathering pace and will see changes in the way in which the Service is delivered at a more local level in these three areas in the medium to long term. To kick start this and in response to business need, the Service has been re-branded to reflect the community focus that is a local Market and has commenced a programme of awareness raising interventions designed to keep the current customer base and entice new shoppers and traders especially to the Ashburner Street site. Finally, the Service has commenced dialogue with partners both inside and external to the Council, to deliver added value to the Borough wide priorities as set out in the Bolton’s Big Plan. These include working with the local PCT on healthy eating initiatives, looking at the use of the Working Neighbourhood Fund and Area Based Grant to kick start new, small retail businesses on Markets and working up a brief to enable the Service to deliver street trading consents, thematic markets and other events across the Borough. It is acknowledged, that this work needs to be brought together, articulated more strategically and that the Council be involved in that process. As a result, this report will outline, in broad terms, the actions and areas of work that are or will be undertaken, in the short to medium term, to help deliver added value against the Boroughs key priority areas these are:- — Safe, Strong and Confident. — Achieving and Prosperous. — Healthy. — Cleaner and Greener. The remainder of this report will highlight headline actions that will help to deliver against these objectives along with the reference list that will be used to underwrite the thinking behind the Markets Strategy for Bolton.

Safe,Strong andConfident There is a school of thought that describes Markets as a “Public Good”. This concept is based on the heritage that surrounds the industry in that many Local Authorities have Market Charter Rights which were handed down centuries ago as an act of benevolence by the relevant Monarch at that time. These actions allowed for the development of commerce around the Market site that, over time, saw Markets and Market Halls being built as statements of civic pride. Bolton’s Charter dates back to 1251 AD (the charter was granted during the reign of Henry III to William De Ferrers, the Earl of Derby, for the holding of markets & fairs) and gives the Council the legal right to control rival market style events within the Borough and beyond. This same heritage has seen Markets become the focal point of towns and cities throughout the UK and even today these venues give identity, pride and a sense of belonging to local communities. Markets are also an internationally understood brand/ environment. They oVer a backdrop for communities old and new to come together in an easily understood environment to trade, shop, experience new cultures, or just people watch. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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The social dynamic of a Market environment and its low barriers to business entry creates simple and understandable opportunities for local people and migrant communities to become economically active. Managed correctly, the product mix within a typical Market environment can reflect the diverse nature of todays social environment. For Bolton’s community the market can help in promoting cultural education and allowing the Council to “Place Keep” as well as “Place Make”. This helps to sustain communities and re-enforces messages of harmony through food, culture, lifestyle and music. Initiatives to progress these ideals at a strategic level will see a testing out of: — Soft loan schemes for the development of new businesses and those that add cultural value to the shopping repertoire on Bolton’s Markets. — Social statement of theme days at Bolton’s Markets such as International Women’s Day which highlight national/international issues and demonstrate an awareness of “the bigger picture” as far as the local markets service is concerned. — Work towards making Ashburner Street a Regional Food Tourist Hub. This will include closer relationships with the restaurants (both existing and emerging) of the Borough and with organizations such as A Taste of Lancashire and the Ribble Valley Food Trail. — Aligning the re-development of out district Market venues alongside other community benefits such as post oYces, building schools for the future (BSF), health drop-in centres (planned PCT developments for the Borough), libraries and local transport hubs to make it easier for those without personal transport or the older community to “one stop shop” at local level more often and more easily. — Delivering a monthly food demonstration calendar at Ashburner St Market that showcases community celebration and religion through food tasting and recipes. For example January 2009 will see a celebration of the Chinese New Year by demonstrating a healthy stir fry meal using ingredients from the market and delivered by the local PCT health/chef nutritionist.

Achieving andProsperous The Service currently nurtures over 300 small businesses and provides direct and in-direct employment for over 500 people at the Ashburner St venue alone. In addition it oVers access to good quality, low cost food staples to the more deprived communities of the Borough as well as using local supply chains for fresh food and vegetables. There are a number of initiatives that will form part of the ongoing Service Strategy within this context. These will include: — Accessing Working Neighbourhood Funding to underwrite initiatives that will help to supply new entrepreneurs into the industry at local level. It is hoped that this will manifest in the creation of a Markets Apprenticeship Scheme at local level although funding will be an issue. — Working with national bodies such as the National Association of British Market Authorities (NABMA) the National Market Traders Federation (NMTF) and the World Union of Wholesale Markets (WUWM) to lobby for Government and European funding to promote the Markets industry. This work is ongoing and at present we are seeking to submit case study material to a national policy development project. The Service is also commencing work on a regional bid to create ambulant trading opportunities based on the European model of street trading using bespoke trailers as the selling unit instead of the more traditional stall. In addition, the Service networks across Europe to share good practice and is in early discussions with Barcelona’s Market Authority to “twin” with them at some time in the near future. This is helping to raise Bolton’s profile within Europe. Other local actions include: — Creating partnerships with local creative industries, Town Centre Management and local businesses to deliver themed markets and events designed to generate tourism footfall, increase civic pride and engender community involvement. The Service is already an active member of the Bolton Tourism Forum and has working links with Highways, Regeneration, the Economic Development Department and Corporate Property Services and is currently preparing a bid to release Area Based Grant Funding to help underwrite the work detailed above These business relationships and funding stream (if successful) will be developed over time to include meaningful input in the Boroughs Event and Animation Strategy, Public Realm Strategy and Property Portfolio Strategy especially in relation to the Borough wide market venues at Horwich, Farnworth and Westhoughton. Current examples of actions in this area include commencing dialogue with traders and businesses at Westhougton regarding future developments and looking at the options available around the “Nerve Centre” initiative which is a local website that connects the local creative industries to business (retail and showcasing) opportunities available. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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In addition the service is in the process of purchasing a number of demountable open market stalls to progress street trading initiatives in the Town Centre and for use showcasing opportunities for current and new small businesses. A photo of a prototype stall which was used at this years Bolton University Freshers Week to capture new customers is included below.

Prototype ofBoltonMarket’sDemountableStall This stall was used in the recent “Fresher’s Week” promotion and Bolton University where over 700 new customer names/details were captured for future marketing campaigns.

Healthy In order to maximise returns for the Council and its partners under this priority, the service will undertake the following actions during the course of this strategy document. These are designed to help narrow the health inequality gap that exists within the Borough. — Partnerships with the PCT and the School Meals service will be developed to work on and deliver a coordinated approach to health interventions for all sections of the community. — Ashburner Street Markets unique selling point (food) will be used as the focus for all future marketing campaigns. This work has already started with a joint collaboration using a national campaign (British Food Fortnight) as the backdrop for highlighting local food. To complement the healthy eating interventions within schools the Markets Service undertook the first of its monthly food demonstrations at Bolton market using local produce and ingredients cooked on site by the School Meals training chef. This will also form part of the overall marketing campaign for the venue as well as complementing ongoing initiatives for school meals within the Borough. Work will start early in the new year to create a demonstration kitchen in the food hall at Asburner St which over time should allow audience participation to take place for example by oVering the opportunity to “have a go” or teach parents and children cooking skills together. This fits in with similar initiatives currently being developed by the PCT who are targeting deprived communities as part of their food education programme. Other Interventions will include prescribing the market as a diagnostic venue for helping to change the diets of overweight and unhealthy Bolton residents. To reinforce the theme, free to enter competitions designed to drive footfall will capture customer data and will feature healthy prizes such as “fitness” Wii computer games systems, bicycles and free trials at gymnasiums. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Other ideas that will be employed are: — The fruit and vegetable voucher scheme. — School visits to Ashburner Street including talks on where food comes from. — A range of Market based “healthy eating” recipes driven by the website and by selected traders. In the longer term research will be undertaken to look at the feasibility of aggregating new market venues with other new build ventures particularly in terms of provision of older people, health centres and leisure activities such as libraries. These opportunities may be most appropriate within the outlying areas of the Borough, such as Horwich.

Cleaner andGreener These two priorities will be enhanced in the longer term by ensuring that the Markets Service gains accreditation in ISO 14001 (Environmental good practice). In doing so, various interventions will become common practice around such things as recycling targets for organic waste, cardboard, wood, shrink wrap and plastic. Alongside this work, the Service will begin work on detailing the provenance of its food supply chain by working more closely with local food hubs (wholesale markets and local producers/farmers) to quantify environmental good practice on Carbon footprint and CO2 emissions of the Service. This will automatically feed into the work currently being progressed on a Food Strategy for the Borough in terms of food security, local supply chain analysis and collaborating with our own School Meals Service and the Council Childrens Services to add value to existing initiatives designed to tackle food poverty and improve wellbeing targets. It will also explore ideas to join up issues such as community growing projects, the reworking of current supported employment models to look at (for example) a local bicycle delivery service and developing the Markets website so as to encourage some degree of “E tailing”. As this develops and networking improves the Service fully expects to manage the current Local Farmers Market/Local Produce Market and develop additional venues around the Borough such as Horwich. The initiative that started with “Freshers Week”, at Bolton University earlier this month to gather personal data from potential new customers will continue. This will allow for personalised and (where appropriate) electronic marketing to take place thus reducing the use of more carbon costly methodologies such as buses. Eventually it is hoped that various inanimate Council Infrastructures might be used to promote the Markets. This could mean, for example, using existing lamp posts for franchised “barrel” advertising and banner site advertising at arterial roadway junctions. Other advertising methodologies will include highlighting the reduced packaging used by market traders in comparison to the supermarkets and re-enforcing this message with free bio degradable bags and regular “food basket” shopping comparisons.

Memorandum by Bletchley & Fenny Stratford Town Council (MARKETS 17) This response is from Bletchley and Fenny Stratford Town Council. Summary of our details in bullet format (as per your specification): — Town Council in Milton Keynes, Buckinghamshire. — The Town Council took over management of the market from Milton Keynes Council (the principal authority) in April 2006. — We have seen a steady decline in market traders over the past few years with a significant decrease in these past six to eight months. — We manage a small, uncovered market. — The pitches are not supplied to traders and there are no permanent fixtures. — Electricity and waste disposal is supplied to traders and this is included in the rental charges. — Bletchley is a town within Milton Keynes and is regarded within the local development plan as a second retail centre. 1. The Town Council took over the management of Bletchley market from Milton Keynes Council (MKC) in April 2005. At that time, MKC were proposing to discontinue supporting the market and this would have resulted in no market provision in the local area. The Town Council strongly felt that a market should continue and took over the total management of market. 2. Details of the market income from 2005–06 are shown in an attached excel spreadsheet. You can see from this that the income has decreased quite considerably and with a significant decrease in this current year. 3. There are many potential reasons for the decline and these can be briefly summarised as follows: decline in retail trade generally,increase in super/hyper markets selling many lines of products, out of town shopping centres, increase in retail stores selling cheap/pound items. This is not an exhaustive list. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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4. Obstacles preventing the successful business of markets: could be no financial support from government in set up costs, significant costs initially if needing to buy stall, cover, products etc, lack of cash flow. 5. Specialist markets—Bletchley is a traditional high street which has had a market for over 400 years. In the area of the Town Council, a market has existed since “time immemorial” (a charter was granted in 1609 for Fenny Stratford) and that market (produce and cattle) moved to the top end of Bletchley Road (now called Queensway) in 1924. Since this time, the market has existed on various sites until, at popular request, it was located in its current site being a street market along Queensway in the late 1990s. The Town Council remains committed to maintaining this element of the community’s heritage whilst it is economic ably viable to do so. In recent years the Town Council has considered operating specialist markets such as a farmer’s markets. This was not implemented as we could not find any 3rd party willing to run the operation on our behalf as they felt that Bletchley was not an aZuent area to sustain a farmers market. 6. Neither local or central government (other than the Town Council) has any input into the management of the market and there is no financial assistance from them. There is no support (in our experience) and no willingness to work together to promote and enhance the market. 7. Local planning and licensing can hinder the development of the market as planning permissions are given to more retail units changing from class 1 (traditional retail units) to other classes. This is creating a non retail high street, full of financial and licensable units. This is detrimental to the high street as a whole and also to the market. Processed: 17-07-2009 23:36:32 Page Layout: CWMEM1 [O] PPSysB Job: 428788 Unit: PAG5

Communities and Local Government Committee: Evidence Ev 123 Total Income 2008–09 £411.90 £1,983.20 £411.00 £4,639.45 £365.00£429.00£398.40£378.90 £365.00 £794.00 £1,192.40 £431.40 £1,571.30 £313.90£342.45 £2,414.60 £421.60 £2,728.50 £322.00 £3,070.95 £413.90 £3,492.55 £3,814.55 £459.00 £4,228.45 £343.90£315.00 £5,098.45 £309.00 £5,442.35 £303.50 £5,757.35 £303.50 £6,066.35 £248.00 £6,369.85 £322.00 £6,673.35 £303.50 £6,921.35 £296.50 £7,243.35 £236.50 £7,546.85 £303.50 £7,843.35 £288.50 £8,079.85 £270.50 £8,383.35 £361.00 £8,671.85 £255.50 £8,942.35 £320.00 £9,303.35 £316.00 £9,558.85 £327.00 £9,878.85 £330.50 £10,194.85 £353.00 £10,521.85 £292.50 £10,852.35 £389.30 £11,205.35 £11,497.85 £11,887.15 Total £750.00£706.00£821.50£860.00 £750.00 £1,456.00 £870.50 £2,277.50 £722.50 £3,137.50 £801.50 £4,008.00 £766.50 £4,730.50 £628.00 £5,532.00 £874.50 £6,298.50 £710.50 £6,926.50 £608.50 £7,801.00 £697.00 £8,511.50 £767.50 £9,120.00 £716.50 £9,817.00 £521.50 £10,584.50 £782.50 £11,301.00 £765.50 £11,822.50 £841.00 £12,605.00 £703.00 £13,370.50 £850.00 £14,211.50 £822.00 £14,914.50 £769.50 £15,764.50 £845.50 £16,586.50 £738.50 £17,356.00 £619.50 £18,201.50 £765.50 £18,940.00 £710.00 £19,559.50 £859.00 £20,325.00 £935.50 £21,035.00 £923.50 £21,894.00 £856.50 £22,829.50 £753.50 £23,753.00 £794.00 £24,609.50 £908.00 £25,363.00 £26,157.00 £27,065.00 Income 2007–2008 Total Cumulative Weekly Total Cumulative Weekly Total Cumulative Income 2006–07 £374.00£678.50£783.00£775.00 £374.00 £1,052.50 £846.50 £1,835.50 £771.50 £2,610.50 £863.00 £3,457.00 £691.50 £4,228.50 £675.50 £5,091.50 £715.50 £5,783.00 £734.50 £6,458.50 £898.50 £7,174.00 £986.50 £7,908.50 £929.50 £8,807.00 £9,793.50 £10,723.00 £990.50£937.50£837.50 £15,117.00 £846.00 £16,054.50 £16,892.00 £908.00 £17,738.00 £860.00 £19,705.00 £720.50£716.50 £21,575.50 £580.50 £22,296.00 £806.00 £23,012.50 £679.50 £23,593.00 £814.00 £24,399.00 £784.50 £25,078.50 £790.00 £25,892.50 £606.50 £26,677.00 £820.50 £27,467.00 £28,073.50 £28,894.00 £1,157.50£1,208.50£1,037.50 £11,880.50 £13,089.00 £14,126.50 £1,059.00£1,010.50 £18,797.00 £20,715.50 Total I ncome Income 2005–06 £832.50£956.00£834.50£929.00 £1,788.50 £946.50 833.5 £2,623.00 £851.00 £3,552.00 £4,498.50 £849.50 £5,349.50 £7,224.00 £914.00 £12,419.50 £964.50£755.50 £24,540.50 £26,300.00 £897.00£736.50£840.00 £29,259.00 £29,995.50 £695.50 £30,835.50 £840.50 £32,565.00 £33,405.50 £1,011.00 £23,576.00 £1,025.00£1,065.00 £6,374.50 £1,073.00£1,064.50 £8,289.00 £1,079.00 £9,362.00 £10,426.50 £1,066.50 £11,505.50 £1,175.00£1,062.00 £13,486.00 £1,123.00 £14,661.00 £1,074.50 £15,723.00 £1,456.50 £16,846.00 £1,081.00 £17,920.50 £1,044.50 £19,377.00 £1,062.50 £20,458.00 £21,502.50 £22,565.00 £1,004.00£1,000.50 £25,544.50 £1,061.50 £27,300.50 £28,362.00 £1,034.00 £31,869.50 M arket C omparison of Week No Weekly total Cummulative 1 2 3 4 5 6 7 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Processed: 17-07-2009 23:36:32 Page Layout: CWMEM1 [E] PPSysB Job: 428788 Unit: PAG5

Ev 124 Communities and Local Government Committee: Evidence Total £0.00 £12,990.95 £74.50 £13,173.95 Income 2008–09 £381.25£296.50£426.05 £12,268.40 £12,564.90 £12,990.95 £108.50 £13,099.45 Total £13,173.95 Total £0.00 £35,616.50 £411.00 £30,437.50 £562.50 £27,627.50 £989.50£336.50 £28,617.00 £30,026.50 £350.00£267.00£595.50 £30,787.50 £368.50 £31,054.50 £588.50 £31,650.00 £535.50 £32,018.50 £571.00 £32,607.00 £469.00 £33,142.50 £507.00 £33,713.50 £407.50 £34,182.50 £238.00 £34,689.50 £281.50 £35,097.00 £35,335.00 £35,616.50 Income 2007–2008 £1,073.00 £29,690.00 Total £35,616.50 Total Cumulative Weekly Total Cumulative Weekly Total Cumulative Income 2006–07 £856.50 £29,750.50 £963.00 £30,713.50 £358.00 £33,312.00 £544.00£536.50£552.00 £33,856.00 £681.50 £34,392.50 £733.00 £34,944.50 £288.50 £35,626.00 £683.00 £36,359.00 £588.50 £36,647.50 £757.00 £37,330.50 £777.50 £37,919.00 £762.50 £38,676.00 £682.50 £39,453.50 £741.00 £40,216.00 £40,898.50 £41,639.50 £1,089.50£1,151.00 £31,803.00 £32,954.00 Total £41,639.50 Total Income 2005–06 £788.00 £34,193.50 £960.50£968.00£885.00 £35,154.00 £36,122.00 £37,007.00 £308.50£681.00£619.00 £38,351.50 £674.00 £39,032.50 £606.00 £39,651.50 £798.00 £40,325.50 £589.50 £40,931.50 £728.00 £41,729.50 £510.00 £42,319.00 £438.50 £43,047.00 £781.00 £43,557.00 £496.50 £43,995.50 £158.00 £44,776.50 £45,273.00 £45,431.00 £1,036.00 £38,043.00 £45,431.00 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Total: Week No Weekly total Cummulative Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Memorandum by City of Westminster Council (MARKETS 18) City of Westminster Council is pleased to oVer evidence to the Communities and Local Government Select Committee enquiry on Traditional Retail Markets. Our response is structured around the question set out in the original notice of the inquiry and call for evidence. Main Points: — Markets play a vital role within our communities. — The rise of specialist markets is a good sign of the continued vitality of markets, especially in Westminster. — The City of Westminster Bill is a vital piece of legislation in order to rebalance the relationship between the local authority and traders. — City of Westminster Council is happy to facilitate any visit to its local markets the committee would like to see.

1. TraditionalRetailMarketsToday How has the picture changed over the last 10 years? Westminster’s experience is that following a period of quite rapid decline in the previous 20–30 years, the position for traditional markets has stabilised over the last 10 years. What markets oVer has become more diverse, as has the background mix of market traders. Although held less frequently, growth has been seen in the demand for, and provision of specialist, leisure and farmers markets.

Are the number and types of markets in decline? If so, why? In Westminster traditional markets and street trading is relatively stable, with operator and consumer demand for specialist markets growing. However, variations are evident depending on the location and immediate environment of the markets, and the demographics of the surrounding area.

Are their obstacles preventing the creation of more markets? In Westminster, physical infrastructure restrictions, particularly on the highway and in the public realm, can create barriers to the creation, expansion and maintenance of markets, because of the competing demands on highway use. However, other obstacles in play presently include the economic climate and local competition, lack of available investment, and policies seeking to balance the viability of existing markets and retail premises against new market proposals or opportunities.

Are their obstacles hindering the successful business of existing market operators and traders? The major diYculty for the City of Westminster, as a market operator, is the inflexibility and prescriptive nature of the legislation under which street trading and markets operates. Prescriptive rights held by individual traders as licence holders, and restrictions in re-siting and developing pitches, limits the ability of the City Council to implement improvement plans for markets. The value of these rights, and the fact that they are not time extinguished, is such that traders are reluctant to risk their rights in order to commit to proposed changes. A recent consultant study of street trading in the Oxford Street/Regent Street/Bond Street area demonstrated a real lack of retail expertise amongst many street traders, and the need to provide research and training to inform business decisions.

What has been the impact of specialist markets eg continental and farmers markets, and do such markets integrate successfully with older markets? Specialist markets have had a positive influence both for existing traditional markets and for communities when operating in isolation. They tend to operate for a limited duration, either on a single day per week or for three or four days at infrequent intervals. They have integrated well in Westminster with existing markets under these operating conditions.

2. TheirSocial andEconomicEffects What social and economic eVects do traditional retail markets have on their local communities? Markets, on the whole, do have a valuable social and economic eVect on local communities. They do this in a number of ways. They provide retail opportunities and support complementary retail premises in the area by increasing footfall on market days. They provide low-start-up-cost employment opportunities. They provide a physical focus and activity within a community, which can be enhanced by associated leisure and cultural activities. This contributes to a sense of place for all the community. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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What qualities contribute to a successful market delivering social and economic benefits, and are their examples of best practice that have a wider application? Markets need to be relevant to the community, who ideally should at least be stakeholders in them. In the largest traditional market operated by the City Council arrangements to devolve the governance of the market have been implemented to the local community, which involves local residents, market traders, and community representatives. This has allowed relevant priorities to be set and focussed local interest in the management and operation of the market. A local innovation has been the allocation of Ward member budgets, which some members have earmarked as additional investment in local markets.

3. Realising thePotential ofTraditionalRetailMarkets Does local government support markets eVectively? Support in Westminster is provided in line with other corporate priorities and resource constraints. Feedback suggests support is eVective but can be improved.

What are the advantages and disadvantages of local authorities having powers to operate markets? One advantage of local authorities operating markets relates to the integration of market development into the wider management and improvement of the public realm. This includes physical, economic, and social development strategies. Another advantage is the ability of the local authority to take a long-term view, and support markets through challenging financial times or periods of change. Local authorities may also prioritise markets for other than purely financial reasons. Some potential disadvantages are that some local authorities may not have relevant organisational structures or dedicated expertise to maximise business opportunities, or may not have the necessary freedoms to implement innovation.

Does central government support markets eVectively? If not, what additional support should be provided? Not known. Very little knowledge of any cohesive market strategy or support currently provided in the Westminster area, which suggests very little is given.

Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration? The possibilities here seem endless. Direct support to market operators, traders, and sharing of best practice would obviously assist, not just the traders but Local Authorities.

4. Planning andLicensingIssues Do local and national planning regulations support or hinder the development of markets? Westminster finds the planning regulations have a neutral eVect on the development of markets.

Do licensing regulations support or hinder the development of markets? Licensing regimes vary and markets can be established by a number of statutory and non-statutory means. Existing legislation, unique in Westminster, which regulates markets and street trading has proved to significantly restrict the City Council in achieving change in market operations, or integrate street trading provision into a wider vision for the public realm. The City Council has deposited a Bill (City of Westminster Bill 2008–09, http://www.publications.parliament.uk/pa/privbill/200809/unassigned/cofw/020/414655/ 191108/2009020.htm) to relax some of these constraints, although a balance will still exist between trader’s rights and local authority powers, even if it brought into force.

What improvements could be made to the planning and licensing regimes to aid the development of markets? The Bill deposited by the City Council would go some way to make amendments to the licensing regime under which markets operate. Further amendments promoted in a public Bill would make more fundamental changes to existing regimes to give greater flexibility in managing markets for the wider benefit of local communities.

Memorandum by Chris New, New Markets Solutions (MARKETS 19) I have over 40 years experience in the management and development of traditional retail markets. This includes working as an Assistant Director/Head of Markets/Chief OYcer with a major metropolitan district authority and in my present role as a specialist markets industry consultant. You have requested that I submit evidence to assist the Select Committee and I am pleased to do so. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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I trust that the NABMA and the NMTF will be presenting you with much detail in response to your enquiry. SuYce to say, therefore, that there are three main strategic drivers of the significant decline of the traditional markets industry, namely: (a) The intense competition caused to the markets industry due to the immense escalation in retail square footage and the power of the supermarkets over the last 20 years. (b) The public’s desire for more qualitative and wider forms of shopping that was met by big retail business whilst local authorities left their markets services in a vacuum of disinterest, due to the apolitical nature of markets services. (c) The failure of national and local politicians to recognise and bolster markets as a public good* in order that they could withstand the commercial pressures of big business. (*The public good is through the facilitation of small trader entrepreneurialism, the contribution to the vitality and regeneration of town centres due to the diVerentiation factors, the support that markets give to social cohesion and to the culture of local communities, the VFM contribution to healthy eating, the self-suYciency of many tens of thousands of individuals in self employment who also provide tens of thousands of employment opportunities ….) Markets come in all shapes, sizes and types. Most markets are operated by local authorities. Most are in severe decline. The last two statements have connection. There are councils where there are key exceptions of best practice—where specific local excellences have created notable, viable markets but—generally— traditional markets will not survive without governmental strategic intervention because the decline is now deep rooted and endemic. Minor changes to planning and licensing arrangements would be totally inadequate to make a significant beneficial diVerence to the state of the markets industry. There will be significant loss to society and to the public good, therefore, unless there are governmental strategic interventions. My key proposals to counter the serious decline in the markets industry are: — Proposal 1: Government direction requiring local authorities to actively promote markets as a key driver in reactivating town centre vitality and viability—and as a support mechanism to lessen unemployment. Without central direction to create a real raised profile for markets services they will continue to be ignored and will die.

— Proposal 2: Grant-aided hypothecation of capital and revenue investment in local markets. Markets services have been used as a cash cow so that their income and self-generated profits have been used to support other council services rather than being reinvested. Other services have not only been tax-borne but capital grants have been available for their development, unlike markets services. The development of markets services has fallen in between these two financial regimes and without strategic financial intervention of a hypothecated nature there is no future for many markets.

— Proposal 3: A National Markets Training Regime that would create: (a) Strategic understanding/knowledge of markets for local authority senior politicians and oYcers responsible for town centre viability and vitality. The downgrading of markets management following local government reorganisations meant that there is a near-total lack of understanding and appreciation by senior local politicians and chief oYcers of the benefits of markets. There is a lack of commercial understanding of the factors that can create successful markets and no desire to understand as senior politicians are driven to more politically attractive services. For markets to have a future, this mindset needs to change. (b) Tactical and operational training in markets development and management for local authority market oYcers and private sector markets management. The decline of markets has greatly reduced the availability of professional/specialist management training. The training capacity to regenerate markets services is lacking and would require strategic intervention to correct this. (c) Market trader training in specific markets small business operation and marketing, particularly in small retailer skills, customer relations, good purchasing practice and merchandising. Due to the fragmented nature of markets services across the country—and despite there being many tens of thousands in the industry—there has never been (unlike in some European countries) any coordinated specialist/qualitative training available for market traders and their staVs. Whilst big retail business is well supported in professional training methods, markets have “lost out” in not being able to adequately compete due to this vacuum. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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— Proposal 4: Government-backed subsidies to new market traders commencing self-employment in the markets industry. A 1970’s government scheme encouraged people from unemployment into self—employment via a £40 a week subsidy. Many traditional markets benefited from the added viability this scheme created. The current government is providing £50 a week employment subsidies to employers taking on staV in the recession. A similar scheme should be payable for market trader self employment, with the 1970’s rate indexed to current standards over a fixed three-year period in order to give the necessary encouragement and confidence to new starters. However, this scheme should be tied into active participation in the trader training programme.

— Proposal 5: The creation of a National Markets Agency to monitor, research, encourage and direct local authorities to support the implementation of the above proposals. There would be a need for active central promotion of such policy initiatives. Raising the profile of markets and the benefits they create, supporting and initiating qualitative markets activity, driving results at national level and coordinating national markets representative organisations towards markets regeneration, would be the means to making the diVerence so that there is a realistic and sizeable markets sector in the future. The alternative to these or similar high-level strategic interventions is that for the next generation traditional markets will simply be an interesting footnote in the cultural and economic history of this country.

Memorandum from Quarterbridge Project Management Ltd (MARKETS 20) 1. Introduction: Thank you for giving us this opportunity to make a submission to the Committee. Please regard this document as a preliminary submission illustrating the range of challenges facing the retail markets industry. It does not purport to illustrate the full range of policy solutions we believe to be appropriate—those are best dealt with later. This overview is based upon our unrivalled experience of the markets industry throughout the UK and abroad and although we have restricted our comments to the situation in the UK we suggest the committee consider why other countries can support a thriving markets industry—for instance Barcelona, Spain—and the eVect of the recently rescinded of the Groceries Order in Ireland. Background information on Quarterbridge projects is attached and we would welcome the opportunity to expand on issues raised in this submission and give verbal evidence to the committee. At the outset we must express our concern that this inquiry does not restrict it’s scope in the same way as the recent Competition Commission enquiry into the groceries sector. The range of issues this Committee should consider are wide and cut across many departmental policy agendas—taxation, food security, the environment, economic development and consumer standards—so it may be tempting to restrict their scope. That would not be appropriate and we trust this inquiry will adopt a more informed approach than the CC and not avoid addressing the most fundamental policy issues. Unlike the Competition Commission we trust this inquiry will acknowledge all of the many representations which will doubtless be made to it. A review of the policy issues aVecting the retail markets industry is long overdue. This inquiry is an opportunity to illustrate the profoundly negative impact that the decline of the industry is having upon consumers and local communities.

2. TheFailure ofUKRetailPolicy: Since 1945 successive governments have adopted a laisser faire approach to retail policy in favour of unrestricted economic growth. It is only now that the impact of so-called retail consolidation is becoming apparent and it’s insidious eVect upon consumers, the UK economy and the environment. The catastrophic decline of independent retailing in the UK is typified by a struggling stallholder on a market and illustrates governmental failure to address a range of interconnected policy issues. Unlike many European countries the UK has failed to recognise the importance of retail markets to both the health and social wellbeing of the nation. There has been no overarching policy review of the issues raised by retail consolidation. The work now being undertaken by the Cabinet OYce Strategy Unit into food security and energy security is long overdue as we believe the industry has passed the tipping point beyond which it will be unable to recover except with co-ordinated support across many policy areas.

3. TheOutlook for theUKMarketsIndustry. The decline of the retail markets industry is self-evident. Trader numbers and viability have fallen as food retailing has become concentrated in the hands of the “big four” supermarket chains—Tesco, Asda/ Walmart, Morrisons/Safeway and Sainsburys. Over the last 20 years they have secured over 80% of UK sales of household goods and groceries and a sector which has been a traditional mainstay of the markets industry has been denied to it. This so-called retail consolidation has eVectively wiped-out independent retailing, not just markets in many town centres. Shops and market stalls that sold preserves, dry goods, tinned goods and the like are no longer viable because of supermarkets’ ability to undercut them by buying-in long shelf-life Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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stock in bulk, direct from the producer. Retail consolidation has forced many traders out of the industry and left the consumer reliant upon a limited range of retailers and their procurement and pricing policies— not a healthy situation. The OYce of Fair Trading has only recently begun to take positive action to address these issues but still lacks support. The recent Competition Commission enquiry into the Groceries sector was, quite frankly a waste of time and eVort. The fines imposed on supermarket chains by the OFT for colluding to fix the price of dairy products have been laughed-oV by the guilty parties and they continue to pursue thinly-disguised predatory pricing policies. Now that the groceries sector is eVectively consolidated the supermarket chains are adopting similar tactics to maintain profits by expanding into non-food lines, encouraged by the short-sighted relaxation of planning legislation enabling them to install mezzanine floors in existing superstores. Governmental policy guidance has either been ineVectual eg the almost-oVhand comment in PPS6 recognising the significance of markets in town centres, or frustrated by the lobbying power of supermarkets and the British Retail Consortium eg the failure to pursue a commendable initiative of levying a charge on “free” out-of-town store parking. In short, the markets industry is being driven into extinction by the failure of successive governments to restrain the supermarkets industry. Whilst supermarkets have been (supposedly) driving down food prices, few politicians have risked standing up to say “at what cost?” Policies that run the risk of increasing food prices do not win votes.

4. TheImpact ofMarketFailures onCommunityProvision Local Authorities have welcomed the additional rates income from new superstore developments but those which own a market ie Market Authorities have witnessed a matching decline in the income from their market operations. Fewer traders generate less rent, and fewer stalls represents less choice and variety for the community. These indirect eVects are the most insidious and damaging eVect of retail consolidation. The low prices oVered on markets have always played a vital role in providing for many of the most vulnerable and disadvantaged members of society, especially those with limited mobility and income. The closure of a market directly impacts on their welfare and undermines policies that alleviate poverty. The markets industry is now largely reliant upon elderly shoppers with low disposable incomes as reflected in failing market businesses, stagnant rents and falling occupancy rates. Traders are being forced to leave the industry to seek other ways to earn a living wage. The argument can be made that supermarket competition forces down prices to the benefit of the consumer but on closer scrutiny this can be seen to be untrue. In reality markets consistently oVer a 20–30% discount on supermarket prices. A survey amongst members of NABMA (The National Association of British Markets Authorities) in 2005 estimated that 96,000 people are employed in the UK retail markets industry. Retail consolidation is not only putting their livelihoods at risk but also those of the producers, processors and distributors who rely upon them as customers. This eVect is apparent in the wholesale groceries industry where traders are finding it increasingly diYcult to source product. By our estimation some 1.5 livelihoods are directly dependent upon each market stall in the UK and they in turn support a further 1.5 livelihoods in the producer/supplier chain. The contrast with the vertical integration and shortened supply chain of a supermarket is stark. The Association of Convenience Stores, The Rural Shops Alliance, New Economics Foundation, Joseph Rowntree Trust and Association of Sub-Postmasters (amongst others) have all undertaken excellent research into such social and economic eVects. We suggest the Committee invites them to make submissions.

5. TheAbsence ofStatisticalEvidence Quarterbridge has undertaken detailed financial analyses and prepared Business Plans for many Market Authorities over the years which have all confirmed that Council-run markets are in a decline slowed only by a remarkably high level of shopper loyalty. Regrettably there are no meaningful national statistics to measure this trend. Admittedly there are some bright spots eg periodic Farmers Markets and Carboot sales but we see no possibility of so-called regular Open Markets and Market Halls reversing their decline unless they secure policy support from central government and adopt the same management strategies as their retail competitors. In an increasingly aZuent and mobile society markets are no longer the retail destination of necessity and most have been unable to convert themselves into the retail destination of choice. Those that are fortunate enough to be well-located eg Old Covent Garden and Borough Market are an exception to the rule but all others must struggle to reinvent themselves without access to the financial resources their competitors enjoy.

6. TheNeed forImprovedLocalAuthorityManagement The under-performance of Council-run Markets is compounded by their failure to adopt commercial management skills. Councils tend to concentrate on their primary function of delivering eYcient regulatory services rather than competing in the retail industry. Their management skills—or rather, the lack of them— reflects as much. Market Authorities are generally good at controlling operating costs but equally poor at Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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exploiting business opportunities. Most still operate on the false assumption that a waiting list of traders exists for their stalls and they consistently fail to either to attract new “customers” ie traders or promote their oVer to shoppers. Historically, Council-run markets have generally been treated as a “cash cow” to deliver revenue support for other budgets without the application of any revenue ring-fencing for business development. This is an almost universal failure of local government and in many cases extends to starving markets of even the most essential repair and maintenance, let alone modernisation. Councils’ reluctance to reinvest has been compounded by a singular lack of business planning amongst Market Authorities and their failure to adopt profits-focussed management—an obvious failure in a fast- moving industry like retailing where there is little room for sentiment. Historic Market Hall buildings with their statutory listing and high maintenance costs are a particular problem for many Councils and eVectively constitute a liability rather than an asset. Many suVer from a backlog of repairs and are unsuitable for alternative use so there is no exit strategy to dispose of the liabilities. It is not uncommon for a financially- viable Open Market operation to be dragged down by the cost of maintaining an inherently-unviable Market Hall. Small wonder then that most markets have failed to keep pace with their retail competitors. Some market operations have passed the tipping-point beyond which they can recover. The decline in trading profits has reduced support for Councils’ general funds to the point where in the current economic climate we expect 2009–10 to witness an unprecedented level of closures.

7. TheNeed toSupportTraderDevelopment Decreasing viability is not a single-cause problem. Many market traders have still not adopted the most basic of modern retailing techniques, eg EFT (Electronic Funds Transfer—accepting credit and debit cards)—and are equally poor at promoting or reinvesting in their business. They mistakenly consider the market owners promotional eVorts as suYcient to promote their individual businesses and unlike their mainstream competitors they generally lack formal training in business planning and product presentation. Market traders are generally self-reliant, enterprising and opportunistic but too often are also under- capitalised sole proprietorships (sometimes not even VAT-registered) competing in arguably the most dynamic and competitive sector of the UK economy. Their inherent reluctant to admit they “have a problem” and to seek support means they are slow to take-up commendable initiatives such as the Local Enterprise Growth Initiative. For our part we believe LEGI to be an excellent method of attracting new traders into the industry and are keen to actively promote it as a fundamental component of market improvement plans.

8. TheImpact ofMarketFailures on theEnvironment The environmental impact of modern retailing patterns has been highlighted by other organisations such as Greenpeace and the Sustain Alliance. They are better qualified to comment than us so we suggest they are invited to make submissions. But it is clear to even the least-informed that retail consolidation has been accompanied by an unprecedented rise in “food miles” due to centralised distribution systems and the air freighting of non- seasonal foods. This, combined with car-bone shopping trips to “free” carparking at edge of town retail parks is undermining attempts to reduce CO2 emissions. By contrast the town centre location of traditional markets and their predominantly local product sourcing is patently more environmentally-friendly. But it has to be said that the markets industry has been lamentably poor at promoting such “good news” stories such as the “How Green is your Market?” promotion recently launched by the National Market Traders Federation.

9. Suggestions forFurtherConsideration by theCommittee — Retail diversity: Retail consolidation has created the “clone town” eVect identified by the New Economics Foundation and others. This is at odds with planning policy guidance via PPS6 etc. and undermines the eVorts of most town centre retail plans. — Over-reliance on a narrow supply chain: The dangers of concentrating too much supply into the hands of too few retailers became apparent with the recent petrol tanker drivers dispute, as were the public health issues raised by the recent H5N1 bird “flu” scare and potential contamination of the food chain. — Sustainable local economies: Markets retain the “shoppers pound” within the local economy and do not remit it to remote, institutional shareholders. They retain cash within the local economy and support the local producer/supplier base that creates sustainable local economies. This eVect has been researched in detail by the NEF. — Employment: Multiple retailers seek to drive down costs by adopting self-serve methods so it is self-evident that fewer persons are employed per square metre of supermarket floorspace than on a market. The common assertion that a new local superstore will “create an additional 250 jobs” is in fact a complete fallacy. It may do so in the short term but double that number of jobs are lost from the closure of local independent retailers in the medium term. The opening of a new superstore Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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is followed by the failure of the local Market Hall within two years or so once the independents have exhausted their resources. They are not equipped to compete against loss-leader pricing and thinly-disguised predatory pricing techniques and the ripple-out eVect of a market’s decline amongst it’s local suppliers and distributors is equally profound. It is no surprise that markets thrive best in areas where supermarkets do not (yet) dominate the local economy. We hope you find these initial comments informative and helpful and would be pleased to expand upon them further. We look forward to hearing from you in due course. January 2009

Memorandum by the Royal Borough of Kensington and Chelsea (MARKETS 21) Summary — RBKC currently has traditional markets in Portobello Road, Golborne Road and Portobello Green and farmer’s markets in Bute Street in South Kensington, Notting Hill Gate and Duke of York’s Square. The creation of a further farmer’s market at World’s End is also currently under consideration. — The traditional market in Portobello Road has declined in terms of the number of pitches in recent years; although three new farmer’s markets have opened in the borough. Pitches are available and aVordable but there appears to be a problem in attracting the next generation of fruit and vegetable and antiques traders. — Traders have been adversely aVected by vehicle emissions legislation, and the western extension of the London congestion charge, while the national fraud initiative has pushed some traders away from council run markets. — Traditional markets are particularly important in providing access to aVordable healthy food and the opportunity for local people to set up stalls to meet the needs of their own communities. These markets have a major role to play in promoting healthy eating, however to achieve the real potential it will be necessary to re-think market opening times and how healthy eating is promoted through markets. — The ability of the council to proactively develop and promote markets is limited by the London Local Authorities Act that prevents the council from charging traders to establish a fund to promote the markets or improve facilities. — Central government could consider how Business Improvement District (BID) legislation could be applied to market traders.

1. How has the picture changed over the last 10 years? 1.1 In Portobello Road, over the last six years, there has been a significant reduction in the number of market pitches in regular use on a Saturday, the busiest day, from around 212 to an average of 180. From Monday to Friday the numbers have also been significantly reduced.

2. Are the number and types of markets in decline? If so, why? 2.1 The number of markets in the Royal borough has actually increased in recent years with the creation of new farmer’s markets in Bute Street South Kensington, Notting Hill Gate and Duke of York’s Square.

3. Are there obstacles preventing the creation of more markets? 3.1 Planning policies can be used to create a positive framework within which new markets can be permitted. However, the process allows people to object to applications, and, in this borough, as public open space is limited, there can be resistance to any development that could reduce, even temporarily, access to open space. There are also real issues of residential amenity.

4. Are there obstacles hindering the successful business of existing market operators and traders? 4.1 Availability and aVordability of pitches is not an issue for the markets run by the council. As detailed above demand for pitches has declined and the cost of a pitch has been reduced from £54 to £52 per week for a six day licence and casual licences during the week have dropped from £22 to £12. 4.2 There is an issue with market trader succession particularly in the antique and fruit and vegetable stalls, where younger people are less keen to go into these trades. In contrast younger people are actively selling “vintage” second hand clothing, new clothing and innovative gadgets in our markets. 4.3 Some recent legislative changes have adversely impacted our traders. The new vehicle emissions legislation has required them to outlay for new vehicles, which may not be aVordable for these often quite marginal businesses. As a result of the National Fraud Initiative the council now collects National Insurance Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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details on all our market traders. While this is an entirely legitimate increase in bureaucracy it has had the eVect of pushing some traders away from council run markets to less stringent private markets and car boot sales. 4.4 Employees on the markets do not benefit from some Health and Safety and Employment legislation like requirements on rest breaks and hours of working etc., they are generally employed on a temporary cash in hand basis because their employers are unable to aVord to provide these benefits. 4.5 The western extension of the London congestion charge has adversely aVected our week day traders who were reliant on passing traYc, and it has increased their overheads.

5. What has been the impact of specialist markets eg continental and farmers markets, and do such markets integrate successfully with older markets? 5.1 Farmer’s markets are quite popular with our residents and supported in principle by our Councillors. As detailed above three new farmers’s markets have opened in the borough and another is currently under consideration. These markets are privately run and physically separate from the traditional markets so integration is not an issue. 5.2 The council has recently reviewed the performance of Bute Street farmer’s market. This market is privately run but was established through the instigation of the council in May 2008. The market is performing acceptably and the majority of customers are suYciently local to walk to the market. 5.3 Visiting speciality markets have been held in Kensington Town Hall forecourt (every two months excluding Dec–March) and Portobello market where five diVerent operators have visited on an ad hoc basis. Generally these take place on a Friday and Saturday, they are popular but relatively expensive, so they have not performed as well as could have been expected. There was no objection from the Portobello traders to the speciality market because it filled unused space and increased footfall for the whole of the market.

6. What social and economic eVects do traditional retail markets have on their local communities? 6.1 Portobello and Golborne Road markets are unusual in that the serve some of both the richest and the poorest wards in Britain. These markets are particularly important in providing access to aVordable healthy food and the opportunity for local people to set up stalls to meet the needs of their own communities, for example Moroccan food traders are particularly strong in Golborne Road. Socially these markets are places where the diVerent communities in the borough can meet and shop. 6.2 The market plays a particularly important part in supporting the transient population of the area, and has changed over the years to reflect the arrival of diVerent nationalities. 6.3 Through the consultations that have taken place as part of the preparation of planning policies in the LDF, we have received clear feedback that there are fears about “market gentrification”. However, as stated elsewhere in this paper, the markets are in decline in terms of stall take up. Some form of innovation would therefore seem to be needed—but any innovation that caters more fully for the aZuent residents would be perceived to be “gentrification” and thus seen to undermine the current character of the market. This is a conundrum to which there is no easy answer.

7. What qualities contribute to a successful market delivering social and economic benefits, and are there examples of best practice that have a wider application? 7.1 Easy availability of pitches and the active support of the Markets OYce have helped to maintain the success of the markets. The Markets OYce have found that maintaining, good links with the local Islamic Centre can help to resolve any diYculties that may arise. The market is open to all customers and traders and the Markets OYce has a can do—open door attitude.

8. Does local government support markets eVectively? 8.1 The Council invested in electric bollards for the pitches in Portobello Road and Golborne Road through the North Kensington Redevelopment in the 1980s. The Markets OYce is self-funding. 8.2 The ability of the Council to proactively develop and promote markets is limited by the London Local Authorities Act that prevents the council from charging traders to establish a fund to promote the markets or improve facilities. Attempts to create a London Markets brand are now only emerging under the auspices of the Mayor’s oYce.

9. What are the advantages and disadvantages of local authorities having powers to operate markets? 9.1 The advantages of local authorities operating markets are that the council exercises democratically controlled powers to protect the interests of the residents, shoppers and traders. The legislation, the fees and all paper work is open to public scrutiny preventing corruption, nepotism etc. 9.2 In contrast private operators have a freer hand, they can invest in developing specialist skills and assembling an attractive mix of niche traders and in promoting their markets. Budgetary, consultation and approval constraints make it more diYcult for the council to take this kind of proactive approach. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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10. Does central government support markets eVectively? If not, what additional support should be provided? 10.1 We are not aware of any specific central government support for markets. There is a serious problem for markets across much of the country in controlling pedlars, although this is not an issue in London, because of the London Local Authorities Act 1990 (as amended). 10.2 Central government could consider how Business Improvement District (BID) legislation could be applied to market traders who do not pay business rates and therefore cannot be charged a BID levy in the same way as retailers.

11. Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration? 11.1 Markets have a major role to play in promoting healthy eating, however to achieve the real potential it will be necessary to re-think market opening times and how markets promote themselves and healthy eating. There is also a potential to develop isolated trading sites to encourage wider access to aVordable healthy food. 11.2 In terms of social cohesion markets clearly have a significant role to play as the focus of their local communities; this has been discussed in more detail under social and economic eVects. 11.3 In terms of regeneration the market at Bute Street was developed to provide for the needs of local residents and support local shops by increasing the draw of the area.

12. Do local and national planning regulations support or hinder the development of markets? 12.1 Planning policies recognise the importance of markets and retail diversity, which the council supports. However, there can be an issue with consideration of residential amenity in establishing new markets.

13. Do licensing regulations support or hinder the development of markets? 13.1 The licensing regime is quite flexible; it did not present any diYculties in establishing the new market in Bute Street. However, the licensing requirements do ensure that traders only pay for directly attributable services like street cleansing and market management. This makes it diYcult to establish funds to develop and promote the market. This means that any funds for this must come from general council resources, for which there are many competing demands.

14. What improvements could be made to the planning and licensing regimes to aid the development of markets? 14.1 Greater powers to control the amalgamation of units could help promote the independent retail character of unique areas like Portobello Road which in turn would support the market.

Memorandum by Leicestershire Food Links Ltd (MARKETS 22) — Our company is a not for profit social enterprise which was formed in 1999 following an 18 month project run under “Food Futures”. — We aim to promote and increase the amount of local food available in Leicestershire for sale and consumption. — As part of this work we run five Farmers Markets in Leicestershire. — We have been responsible for the set up of a further four markets which are still running successfully.

1. TraditionalRetailsMarketToday (i) How has the picture changed over the last 10 years Ten years ago Farmers Markets were extremely new and only one pilot project was initiated then. Now as a county Leicestershire boasts 11 operating Farmers Markets. All of these markets with the exception of a twice weekly market at Melton Mowbray are held monthly. There is a demand for more Farmers Markets but we have been experiencing obstacles to these being set up. (See below) The success of Farmers Markets is closely linked with the economy and we are now experiencing a recession which is the first time Farmers Markets have faced this test.

(ii) Are the number and types of markets in decline? Although several farmers markets have closed over the last couple of years due to lack of support by the local community, the remainder are well established and have been running for over two years. We have to be aware that there has been a marked increase in the number of large supermarkets and supermarket convenience stores opening extended hours in Leicestershire. This will no doubt impact on the number of consumers regularly using market town centres for their food shopping. Limited transport and parking Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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issues will also have an impact. It is apparent that consumers are interested in new speciality markets ie continental and farmers markets. They visit farmers markets for diVerent reasons. Some seek variety, freshness and quality whilst others see the benefits that local food can make to the welfare of their community.

(iii) and (iv) Are there obstacles preventing the creation of new markets and are there obstacles hindering the successful business of existing market holders and traders? Yes to both. We have encountered diYculties agreeing new markets and trading opportunities without the support of the relevant councils. This is despite the urgent need for an increase in sustainable local food to protect our food security.Several councils and independent charter holders within Leicestershire strictly operate Market Charters with or without Rival Markets Policies which stop new markets evolving. Leicester City charges a rate of £300 per market and Charnwood £225.00. Only one additional market has been agreed within Leicester City’s area and this has only been achieved because of the joint support of Blaby District Council (who finance the market) and us. Blaby District council realise the importance of local food in the community but are penalised because of their location (five miles from the city centre). Many other authorities countrywide are willing to forgo fees and waive regulations as they realise the benefits of supporting local food markets to help environment and grow communities. With regard to Charnwood Borough Council’s policy we are assessed as a commercial enterprise despite our not for profit status a position we will be challenging. We would urge the committee to look at the possibility of standardising Local Authority policy and the removal of Market Charters to positively support the increased availability of local food. In the last year we have looked at the costs of setting up six new markets within several Market Charter areas. Most of these markets would have run 10–20 stalls. Regular costs of market management, site rent, advertising etc. would have allowed the markets to run sustainably however with the addition of the Charter fees charged the markets became financially unviable and none has been set up. One such market would be held monthly at Leicester University where they are eager to promote local food to the students and encourage engagement with the local community. They see it as a vital part of their Green awareness and their strategy to reduce carbon footprint. If Farmers Markets in Leicestershire continue to be restricted it will limit the opportunities for local producers to trade and grow. We currently operate a waiting list on several of our markets. Equally our markets encourage new producers to enter the market place to sell their produce and products. It is a low cost opportunity to test the market. Again some struggle to find suYcient local Farmers Markets on which to stand. Several of our markets would benefit from running fortnightly but again the fees are prohibitive. There is no body which oversees the standards at all Farmers Markets and hence they vary considerably. We are accredited with FARMA and adhere to a set of exacting rules to encourage confidence in our markets, producers and the food on sale. This tends to deter producers who do not use a proportion of local ingredients or who are not involved in the process of production but works to maintain good standards. Whether Farmers Markets should all work under a standard code of practice for their consumers benefit is a question worth considering in the future.

(v) What has been the impact of specialist markets eg continental and farmers markets and do such markets integrate successfully with older markets? Farmers Markets have become very popular as consumers demand variety and an opportunity to help their environment and community. Also they provide a diVerent shopping experience to supermarkets. We are not aware of any threat they pose to older markets especially as many operate on a day when the local market is not being held. We operate one market within a Traditional General Market in Leicester City Centre which benefits the main market as it brings additional customers to the area. However local produce traders struggle to compete unless they sell a speciality, eg organic produce, local cheeses and honey or provide hot catering. Many have decided that they will not attend unless the market is moved. The current site is limited in area and cannot accommodate more than 14 stalls. It will not thrive unless re-sited however at the present time this will bring the market under the Rival Market policy and a fee. Also it must be noted that the General Market at Leicester is in urgent need of redevelopment. We have in the past closed a market in Melton Mowbray which stood with the general market due to lack of support from producers and consumers.

2. TheirSocial andEconomicEffects (i) What social and economic eVects do tradional retail markets have on their local communities? Social EVects (a) Increased integration of community and a sense of ownership(some markets are volunteer run). (b) Provides education and information for local consumers and a meeting place. Many farmers markets have a calendar of events which run with the markets, local community groups, recycling projects, school visits etc. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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(c) Fresher healthier meat and vegetables in season and at their best. (d) Environmental benefits, reduced travel, less packaging, British standards of animal welfare, traceability of products. Surveys at Blaby Farmers market showed that customers came from a small radius of the market and therefore did not threaten the City centre market thereby reducing travel to shop.

Economic EVects (a) Benefits local economy by attracting consumers who use town centre shops. Increases the amount of shops and restaurants using local produce. (b) Retain more money in the local economy. (c) Tourism. (d) Supports small local businesses and provides increased opportunities for trade.

(ii) What qualities contribute to a successful market delivering social and economic eVects and are there examples of best practice that have a wider application? A well managed, vibrant market with strong community and council support. Markets which have good support from their council and community will develop other applications. Hinckley and Bosworth Borough Council have provided excellent support for the Farmers Market at Hinckley which has led to other local food projects: — Taste of Hinckley (food trails). — Hinckley Farmers Market Festival which provides educational tours for local schools around the market to meet the producers and their livestock and to learn more about their environment and community.

3. Realising thePotential ofTraditionalRetailMarkets (i) Does local government support markets eVectively? As already stated the amount of support varies from area to area. However funding is always an issue and a lack of knowledge on local food issues is apparent in some areas. We would like to see much greater awareness on the importance of local food markets and the issues involved, more partnerships developed, and funding made available. More contact between rural and urban areas is becoming absolutely essential. It is becoming increasingly necessary for all LAs to appreciate the role and impact that local food and farming has on its communities. We would like to see an increase in the number of partnerships formed with LAs.

(ii) What are the advantages and disadvantages of local authorities having power to operate markets? As stated above it currently depends on the authorities involved and the level of support they give to organisations trying to promote local food. It is very diYcult for a community enterprise to find the resources to challenge a decision made by an Authority who perceives Farmers Markets as a threat rather than an opportunity. Equally it is diYcult to find funding or support if your cause is not recognised or highlighted in LA or Government planning.

(iii) Does central government support markets eVectively? If not, what additional support should be provided? We not aware of any support government provides, which is a problem in itself. We would like to see additional support given to Farmers Markets and local food provision especially in light of the current inquiry—“Securing food supplies up to 2050: the challenges for the UK” and the economic recession. Leicestershire’s local food network is not well developed. This is due in part to the restrictions that have been imposed by several charter holders. We would hope that the Government reviews the situation to enable Farmers Markets to develop and grow a comprehensive network and provide support for organisations like ours battling to improve the provision of local food. An economic recession could aVect the viability of many Farmers Markets as part of the local small business network. Government needs to provide additional support now for their maintenance in order to reap the benefits in coming years. We would seek both financial support and assistance in achieving de- regulation.

(iv) Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration Yes. Farmers markets could be used to integrate diVerent communities, provide information on healthy food options and to tackle regeneration in depressed areas. Food is common to all of us and those who appreciate food can work closely together for a common good. We are eager to promote health issues and the Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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importance of nutrition but we find there are few examples of joint partnerships to tackle these issues. We are part of a local food organisation which has passion for what it does. With our expertise and that of our producer members our organisation could be used to work across our diverse communities to deliver educational workshops on a range of issues within the concept of the markets. There is no substitute for hands on knowledge and expertise, the opportunity to see where food is produced and to get involved with all aspects of what we eat. We too are concerned with current problems including obesity, poor diet and the lack of skills and knowledge regarding food and its origins. We are willing to help if given the appropriate tools for the job.

4. Planning andLicensingIssues (i) Do local and national planning regulations support or hinder the development of markets? I am not aware of any issues relating to planning regulations.

(ii) Do licensing regulations support or hinder the development of markets? Our local wine, cider, beer and liqueur makers have only a limited number of temporary event notices which can be used at unlicensed markets this prohibits them from standing as often as they could or at certain locations. Equally we too, have a small number of applications that we can make which causes the same problems. This is especially relevant when we are asked to run one oV Farmers Markets and find that our quota is used up very quickly.

(iii) What improvements could be made to the planning and licensing regimes to aid the development of markets? We have yet to seek advice on licensing issues at new venues but would welcome an increase in the number of TENs allowed or the possibility of obtaining a roving licence for sales at Farmers Markets in conjunction with a Personal licence and training.

Annex House of Commons Debate on Leicester City Council (Market Charter) held on 8 October 2008 [Col 379] not printed.

Memorandum by the Fresh Produce Consortium (MARKETS 23) Introduction 1. The Fresh Produce Consortium (FPC) is the UK’s trade association representing the complete spectrum of the fresh produce industry: from growers, importers, wholesalers, retailers, distributors, packers, food service organisations and other allied organisations. Among our members are a number of wholesale market tenants’ associations, as well as individual companies trading at markets.

ExecutiveSummary 2. FPC welcomes the Communities and Local Government Committee’s inquiry into traditional retail markets: — which form an essential platform for our members to provide UK consumers with a wide range of aVordable quality fresh fruit and vegetables and cut flowers; and — in addition, local farmers and specialist markets are helping to meet the consumers’ demand for the availability of locally sourced fresh produce.

MeetingNationalGoals 3. In July 2008 the Cabinet OYce published “Food Matters—Towards a strategy for the 21st Century”. This strategy highlighted the importance of traditional retail markets, in particular their role in providing local supplies of fresh produce, stating: “Street markets can be an important source of aVordable, good- quality food including fresh fruit and vegetables. They can be significantly cheaper than supermarkets and so provide access to good quality fresh food to those on low incomes.” 4. The strategy also commented on the increasing popularity of a number of specialist markets: “The success of farmers’ and specialist markets and large revitalised city markets provide models for great local engagement with fresh, aVordable food and highlight an opportunity to modernise of develop new food markets.” 5. The total quantity of fruit and vegetables marketed in the UK in 2006 was 8.1 million tonnes. Since 1996 the market volume has grown by 1.2 million tonnes, or 16.8%. The market still has the potential for further expansion in order to meet consumption targets of 5-a-day. If the entire UK population were to eat the recommended 5-a-day, actual consumption would be in the region of 8.8 million tonnes. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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6. The Government has recognised that long-term food security, sustainable food production and consumption must be delivered in a global context. Around 60% of fruit and vegetables are imported into the UK, providing us with produce outside the UK season as well as varieties which simply cannot be grown in the UK. Whilst concerns have been raised regarding the issue of “air miles”, research indicates that about 83% of greenhouse gases are created in the production phase of food, with transportation representing only 11% of the life cycle of greenhouse gases. Meat production is far more greenhouse gas intensive than the production of fresh produce. According to a US report on food miles and food choices “dietary shift can be a more eVective means of lowering an average household’s food-related climate footprint than ‘buying local’”. The Fresh Produce Consortium is working with the Carbon Trust and others to look at how we can identify sources of emissions and reduce the carbon footprint of companies and their products.

Social andEconomicEffects 7. The potential for local markets to contribute both within local communities and their economy is significant. Independent retail markets are a key customer group for wholesale market traders and an important element of the local economy. 8. According to research carried out by the National Association of British Market Authorities (NABMA) and the World Union of Wholesale Markets (WUWM) in 2008 there are 1,200 markets in the UK, with approximately 46,000 traders and a gross turnover of 1.38 billion Euros each year. Across the European Union there are 25,000 markets, with approximately 400,000 traders and a gross turnover of 35 billion Euros per annum. 9. In addition, retail markets can provide a vibrant social hub, delivering local access to a wide range of fresh produce which cater for the diverse needs of the local community,as well as providing social interaction particularly for older people and young mothers. 10. The industry’s campaign Eat In Colour is ideally placed to provide consumers of all ages with advice on how to enjoy eating healthily and to reach the recommended 5-a-day target. Last year we published the findings of a TNS consumption survey which indicates that on average consumers are eating 2.5 servings of fruit and vegetable a day. Without a dramatic change in eating habits it could take another 25 years for consumers to meet the recommended 5-a-day. 11. Traditional retail markets can play a vital role in helping to encourage consumers of all ages to increase their consumption of healthy fresh produce, in particular women and families with lower incomes, both key target groups for the 5-a-day campaign. Our survey found that overall women set the pace for healthy eating, with 2.7 servings a day compared to men with 2.4 servings a day. Mothers take care of young children age 0–5, encouraging them to eat 2.5 servings, but there is a decline in consumption as children get older. 12. There seems to be an economic link to the ability of consumers to eat the recommended amounts of fruit and veg. A greater proportion of less well oV consumers eat unhealthily. Nearly two thirds of people classed as less well oV eat two or less servings of fruit and vegetables a day. Around 1.9 million less well oV people are eating less than one serving of fruit and vegetables a day. Worryingly their consumption appeared to increase back in 2006, but seems to be decreasing again to levels recorded in 2005.

Memorandum by The National Retail Planning Forum (MARKETS 24) Introduction The National Retail Planning Forum (NRPF), a registered charity, was created in 1995 to improve understanding between private and public sectors on planning and its impact on retailing. A membership based organisation, the Forum is specifically not a lobbying organisation. Drawing as it does on local and central government, the private sector and the academic arena, the Forum aims to act as a bridge between the diVerent interests involved in retail planning. NRPF Board membership currently consists of; The Co-op Group, British Council of Shopping Centres (BCSC), John Lewis Partnership, Grosvenor, National Association of British Market Authorities (Nabma), Tesco, Local Government Association (LGA) Legal & General, Prudential, Lend Lease, and Westfield. As well as staging a series of events, seminars and workshops throughout the year, NRPF has a research group that meets on a bi-monthly basis. A number of research projects have been undertaken and published. NRPF also maintains a website www.nrpf.org that contains a substantial knowledge base on retail planning issues. George Nicholson the founder and current secretary of NRPF, was until recently the Chairman of the Trustees of the Borough Market in London, where he has been a Trustee for over 30 years. He has been a leading figure in the revival of the fortunes of the Borough Market as a retail food market. He also has extensive knowledge of the markets industry in the UK and abroad. He was formerly the chairman of the planning committee of the Greater London Council and before that a local councillor in Southwark. NRPF supports the submission made by the Retail Markets Alliance (RMA) and has the following comments to make based on the questions set out in terms of reference for the inquiry. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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1. Traditional Markets Today (a) How has the picture changed over the last 10 years The UK has an historic public market tradition stretching back many centuries. Borough Market for example has existed on its current site since 1756, but has traded in and around the foot of London Bridge since Roman times. Many other markets in the UK have similar traditions, often having been established by royal charter. There are also a number of privately run markets in the UK. It had not been possible until Nabma undertook a survey of Markets in 2005, to even start any serious discussion on the scale or health of the UK markets sector. Data is still not collected on a regular and consistent basis, making analysis, policy development and growth planning diYcult. This is not of course a situation confined just to markets. The whole retail sector in the UK suVers a deficit with respect to data gathering, something DCLG have started, to address, but have by no means completed. Markets are established in a number of diVerent formats and settings, including open air market places, street markets, indoor markets, covered markets (sheds) and within shopping centres. Each of these has developed either as a result of local tradition eg. street markets in London, or because of property market activity eg. town centre redevelopment. Markets operate on diVerent days of the week and at diVerent times of the day, depending on local circumstances. More recent developments, such as farmers markets, continental markets and Christmas markets operate either in existing locations; sometimes where markets have ceased to operate; or sometimes in completely new locations. It would be fair to say that there is no overall coherent picture of the public markets in the UK. A good model for such an analysis to begin is provided by the book “Public Markets”, recently published by the Library of Congress in the USA in 2008 (ISBN 978-0-393-73167-5). One of the issues which will be developed later in this statement, is the management and oversight of markets. Historically, markets had a dedicated committee and staYng. The City of London almost alone sustains such an arrangement, but latterly, most markets committees have been merged into much larger more generic committees, the markets themselves being situated in any number of diVerent departments. Markets have also often lost any direct professional management oversight. In addition surpluses—where made—are usually absorbed in wider council finances and not re-invested in the markets concerned. The net eVect of all this is that markets could have been said to have disappeared “oV the radar” of the public policy agenda in recent years. This however needs to be balanced by the fact that there are a number of very successful retail markets throughout the UK, in every format. Indeed as a reflection of this, the BBC 4 Food programme in 2008, launched a “Market of the Year” award—the winner being Bury Market in Lancashire. Nabma itself, has for a number of years now also run an annual markets award in a number of diVerent categories, which has also been well received both in the markets industry and wider. It is diYcult to come to specific conclusions about the trends over the last 10 years. As the Nabma survey revealed, there remains substantial market activity throughout the UK. In some areas the market plays a very similar role to an anchor tenant eg Borough Market in Halifax in Yorkshire. In many other locations they provide an important community focus in the towns/cities in which they are located eg Leicester, Birmingham, Leeds, Darlington, Newcastle or CardiV etc. In others a high quality food oVer is provided eg Borough Market in London or Bury market in Lancashire, whilst in yet others, eg Bradford, Huddersfield and Preston an important source of “value” products for people on lower incomes provides an essential service to consumers. Undoubtedly however, the trading situation is getting tougher. The direct competition from Asda, Tesco and Morrison’s and more recently the deep discount stores such as Aldi and Netto is bound to increase the options open to the same customer base that traditionally might have gone to a market. This makes the need for a serious discussion about the future of retail markets and the proper assessment of their needs for investment, promotion and development even more pressing. One feature of the markets world that is starting to emerge is the replacement of the 70s generation of shopping centres, that often contained markets, for example Liverpool and Chester. Large property development companies such as ING, Land Securities and Grosvenor are having to develop their thinking on the next generation of markets. Developers are also thinking of how to integrate new style markets into their new schemes for example at Kings Cross in London. Some of the larger town centre schemes are also being seen by developers as possible locations for new markets. This is a new departure for developers. It is significant that the new market in the Lend Lease/Grosvenor scheme in Preston is being seen as the “Third Anchor”, the other two being John Lewis and M&S. This is a good indication of how markets can be utilised if the local authority, developer and retailers have a shared vision of what their town/city can become.

(b) Are the number and types of markets in decline and if so why? As the Nabma survey showed, the picture is mixed. One the one hand the number of market days has stayed pretty constant with even an increase in the number of stalls available. On the other hand, vacancy rates have increased in some markets and income has also declined. Many markets however create surpluses—often quite substantial ones. Other types of markets, such as specialist markets, farmers markets, car-boot sales, continental markets and Christmas markets have shown a marked increase in recent years, pointing to an ongoing demand for market based activity and the number of traders prepared to take a pitch. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Borough Market in London has since 1998 created a completely new retail food market (in addition to the existing wholesale market), increasing the number of stalls/businesses located there from around 12 to over 160, including a range of casual stalls, permanent stands, retail outlets, cafes and restaurants. There are undoubtedly matters to do with lack of investment and the proper management of markets that will over time aVect the attractiveness of existing markets, something that will inevitably lead to further decline unless tackled. The same issue will severely limit the possibilities for creating new markets.

(c) Are there obstacles preventing the creation of more markets? This is a very general question, to which it is diYcult to give a definitive answer. Again it depends on the type of market. However it can be encapsulated in just two words—funding and management. Obviously the creation of a new indoor market is vastly more expensive than the creation of a new open air market. There are very little start up costs for either market or trader in a starting a farmers market or car boot sale. On the other hand, Islington Council in London have recently invested over £1 million on regenerating an existing street market (Whitecross Street) that was in severe decline. Since the investment, there has been a marked increase in the number and type of traders and customers. Cities such as Liverpool, Chester and Preston have indoor markets in ageing shopping centres that are in need of and are in the process of being redeveloped. These are very costly exercises running into several million pounds. However, the success of these schemes depends on the state of the retail development industry—currently at a low ebb. The current property market conditions will leave a number of markets in limbo, potentially threatening their long term survival. Other markets struggle on in buildings—mostly Arndale type centres—that had inappropriate spaces created for them, usually as a replacement of an historic market structure. There are a number of historic markets, in need of substantial investment as well. Borough Market in London for example spent nearly £10 million on developing its new retail market, the cost being for a mixture of the refurbishment of existing structures and new market buildings. Funding was raised from a combined mixture of property sales, government funding—initially through SRB and latterly through the RDA—and the markets own resources. There is a problem with the integration of new farmers markets within existing markets. Often this is because of resistance from existing traders, such as in Leeds market or more often from the operators of farmers markets who want to retain a distinct identity. This is not a black and white issue, but with many markets in need of an injection of new traders and products, it probably makes sense to try and integrate new markets within existing structures where they exist. As mentioned earlier, the lack of active management of existing markets in a number of local authorities, makes it most unlikely that they would be seeking to create new markets. Recently in London, the London Development Agency (LDA) has funded a number of posts for people to be located in the existing wholesale markets to promote increased trade and also improve links between producers and the markets concerned. Leicester Market is considering making a specific appointment to promote the existing retail market to the same end. These are isolated examples. They do however demonstrate a growing awareness of the potential of markets as vehicles for increased business. It is this potential that has yet to be more widely appreciated in both local government and central government circles. Blackpool has recently started to promote itself as a centre for traditional foods, even launching a new sausage. There are a number of food trails in places such as Lancashire which are starting to develop the potential for food tourism. Markets are well placed to exploit this potential. Stockport market itself currently undergoing refurbishment, has the town’s tourism oYce located adjacent to the market and uses the market on all the towns’ promotional material. Bury calls itself “The World Famous Market”. It is also a very good and rare example of a market and a shopping centre working together to mutual benefit. Often it is very diYcult to locate a market within a shopping centre either because of the physical design of the centre or because of a lack of co-operation between the two, as a visit to Swansea, Manchester or Nottingham will reveal.

(d) Are there obstacles hindering the successful business of existing market operators and traders? Overall, there is no coherent policy framework either at local, regional, or central government level setting out the place or importance of markets, either as part of the retail hierarchy or as potential vehicles for tackling current concerns with healthy eating and growing levels of obesity. There is a brief mention in PPS6 on the planning for markets, but there is no identifiable funding stream at central, regional or local level to support the development of existing markets or to increase them in number. Part of the problem is a “lack of visibility” for markets in the policy and political fraternity.Few people in the regeneration or development worlds have any direct experience of markets. Even in the food world, there is often a focus on producers or end users, food preparation and cooking. But the key place that markets play in the supply chain is often completely overlooked. There is as has already been stressed, often no-one with a direct responsibility for the management or the future direction of a market within a local authority. This is particularly marked in London, where there are a huge number of street markets. All too often, the only function a local authority plays is one of issuing a licence to an individual trader from a distant town hall. The undertaking of cleansing, food standards and consumer protection is carried out in an ad hoc manner by diVerent departments, with little regard to the Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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overall functioning of an individual market or a series of markets in a borough. The overall upkeep of the market, maintaining standards, trader relations, the provision of electrical, water and storage facilities is often missing as is any promotion of the markets. There has in recent years also been a trend—encouraged by central government—to view markets as simply part of the wider property portfolio of an authority. Markets are of course of their very nature a place where space is rented out in diVerent ways. But in viewing a market and the spaces within it as simply a part of a property portfolio or in the context of the rental structure of the town within which they are located, runs the risk of misunderstanding the nature of a market or pricing out existing traders. In an extreme example a local authority will view the shops surrounding a market not as part of the market but simply as part of a wider portfolio. This completely ignores the interplay that goes on between a market and the shops it contains and also the potential for business growth within a market. In an extreme example local authorities have been known to strip markets of their shops—and hence removing an important source of income thus undermining the viability of the market itself. Sometimes, when a market is redeveloped, the same thing occurs. The example of Borough Market in London is again illustrative of a diVerent approach. Here the creation of what is known as a “Composite Market” has been developed, where there is a mixture of casual and permanent stalls stands and kiosks, retail outlets, cafes and restaurants, all feeding oV each other. This is a more robust and flexible model than found elsewhere. There are also issues regarding the trader/authority organisation in a market. The example of the Boqueria market in Barcelona is worth exploring for wider application. All traders as part of their licence are required to join the trader organisation. The traders in turn employ staV to promote the market and liaise with the city authority, who in turn employ specific staV to look after the interests of the market. All 40 markets in Barcelona are legally bound together in an independent legal vehicle that receives the rents and uses any surpluses to re-invest in the markets. Currently there is also a huge programme of refurbishment going on in Barcelona funded by the City authority. In most markets in the UK, any surpluses are redistributed to the general local authority account and are not re-invested in the way they are in Barcelona. If markets are to be sustained and develop in the UK it is crucial that adequate investment is made and income generated is retained. There is also an issue of the perception of markets amongst the retailer, property development and investment worlds. Generally,markets are not understood, are not seen in a very good light, nor as attractive neighbours. Markets that have been included in property schemes have often been poorly designed and located. On the other hand, some food retailers such as Morrison’s are starting to include a “market” concept in their internal layouts. There needs to be a proper dialogue with the retail industry about the present and future role of retail markets to increase understanding in the retail world of local authority wishes and also in the local authority world of the demands of modern retailing.

(e) What has been the impact of specialist markets eg continental and farmers markets The impact has generally been positive. This is both because it has generated new business and also raised the profile of markets in the UK. It has also brought many new and younger entrants into an industry that has a traditionally ageing population.

2. TheirSocial andEconomicEffects (a) What social and economic eVects do traditional retail markets have on their local communities? This is a very important area to study and promote. Markets are above all a social space with an economic function, and one historically kept in common ownership for the public good. This explains the special status given to markets and the fact that markets like Borough Market are deemed to be charitable organisations. This is not because the market function itself is charitable. It is because historically it has been deemed important for local authorities to retain a place in public ownership—often in perpetuity—for the purposes of holding a market. The issue of the social nature of markets has recently been the subject of a study by the Joseph Rowntree Foundation. One has only to compare the atmosphere in a traditional retail market to a supermarket or department store to see how diVerently a market operates in terms of human interaction and customer experience. Traditional markets play a crucial role in a number of towns and cities, particularly for the poorer sections of the community—including students. Markets are also low entry cost vehicles for business growth and the encouragement of start-ups and the potential for developing local enterprises. At Borough Market there is an annual community bar-b-que, and a series of events and festivals throughout the year. There is also a proposal being developed for a food school to link up local schools with traders, food specialists and the chefs who use the market. Approaching 5 million people a year pass through the Market. The market has had a dramatic impact in terms of its wider regeneration eVects locally in Southwark, and also in the image of the area to the outside world. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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(b) What qualities contribute to a successful market delivering social and economic benefits, and are there examples of best practice that have a wider application? The qualities required are: 1. A clear focus by a local authority on the running and management of a successful market. You have to want to run a market. 2. The integration of the market into the surrounding area where it is located, whether the surrounding retail oVer or the host community. You have to manage the place in which the market is located, and study and understand the links it has and needs to maintain. Permeability is a key feature. 3. An understanding within the authority of the potential of the market in helping to deliver cross cutting programmes within the council. You have to understand how a market works. 4. The development of links with organisations locally who might benefit from contact with the market ie schools and hospitals etc and also those outside the area linked to the market supply chain. You have to adopt an entrepreneurial outward looking approach to your market. 5. An ongoing programme of customer research, feedback and improvements to the market. You must always be seeking to find ways of improving your market, both for those who trade in it and those who visit it. 6. Strong trader organisation and proper liaison with the market authority. Markets work best when both are working together to a common set of objectives. 7. Transparency in the running and financing of the market is vital. This encourages ownership and involvement by stakeholders. 8. A clear understanding of where and how the market operates in the supply chain. It is essential to see the market in its wider economic context. 9. Participation in local regional and national networks: It is vital to stay abreast of developments in the markets world and also in the regeneration and education fields amongst others. 10. Celebrate your achievements. Let people know how you are making progress and share that with the local community. A number of examples of best practice have been supplied by (RMA) in their evidence to which we would concur. I would add the Boqueria market in Barcelona.

3. Realising thePotential ofTraditionalRetailMarkets (a) Does local government support markets eVectively? The picture is mixed for the reasons set out above. Generally there is a need for la’s to give greater recognition and prominence to their markets in terms of how they are perceived and managed. Greater understanding is also needed of their role in the local shopping hierarchy. A markets role within a wider economic context both from a potential employment perspective and also as vehicles for business growth also needs to be better understood by la’s. Currently, there is a “markets champion” (Stockport) designated within the LGA, but how this is translated into action either in terms of policy development in the LGA or in action on the ground is not at all clear.

(b) What are the advantages and disadvantages of local authorities having powers to operate markets? The advantage is that markets occupying as they often do a central role (physically and also socially) in the communities in which they are located, are a natural vehicle for the outward expression of the la’s commitment to providing both an important service and the need to communicate with its residents. It is a potentially vivid expression of a “public good”. Markets are potentially a good vehicle for an authority to experiment with new ideas and also to promote competition to other retailers thus ensuring an evolving and dynamic oVer to residents. The disadvantage are again set out above in that some la’s do not have the commitment, powers, policies or resources to manage their markets properly. All of these things could be remedied. The alternative of private operators meets some of these problems but also potentially fundamentally changes the relationships set out above. Any move in that direction should be carefully contemplated and should not be driven solely by financial constraints or perceived lack of management ability internally.

(c) Does central government support markets eVectively? If not, what additional support should be provided? It is diYcult to find an example of central government support for markets, apart from the brief mention in PPS6 with respect to DCLG planning policy. There is thus a policy vacuum in Whitehall that needs addressing. Crucially,with respect to food markets, Defra needs to be asked to address the diVerent potential roles of markets both for their role in respect of the food supply chain but also as potential vehicles for promoting and selling British produce as part of any food security plans that might emerge from Government. Other Government departments such as BERR, DCSF, DoH need also to be asked to review their policy frameworks to include a section on the role and potential of retail markets. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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(d) Could central government make better use of markets to achieve national goals, particularly with regard to social cohesion, health and regeneration? Yes, for the reasons set out above.

4. Planning andLicensingIssues (a) Do local and national planning regulations support or hinder the development of markets? Both. There is support at national level in PPS6. However, when it comes to application at the local level, there is little evidence of a clear analysis of the role of markets and the need for supportive policies. Markets are dynamic entities that require careful management, flexibility in the interpretation of planning regulations, and speed of decision making. It is also crucial to clearly set the market in the context of the surrounding retail oVer whether in town centre or street. It is important that la’s as part of the development of their “Core Strategies” include a section on the potential of their markets.

(b) Do licensing regulations support or hinder the development of markets? See the (RMA) evidence. As mentioned above, it is not necessarily one of a problem with licensing as such, but in London in particular, la’s only see themselves as having a licensing role, rather than a wider remit. In fact what are called markets, are in fact no more than a series of individual numbered pitches marked out on a street. There is no collective entity that can be described or defined as a “market” in law. This obviously has severe implications for the proper management and development of a market. There are other restrictions currently in place in London that severely restrict the charges that can be made, aVecting the financial management of the markets concerned and hence their viability.

(c) What improvements could be made to the planning and licensing regimes to aid the development of markets? There needs to be a complete review of both the planning and licensing regimes as they apply to markets at national, regional and local level. The guiding influence behind this review, should be to allow markets to (a) be managed eVectively, (b) be able to attract funding, (c) be able to compete properly in the wider retail world, (d) be able to operate in a financially viable manner, (e) be able to develop and grow, (f) be able to play a part in the developing sustainability agenda, in respect of food policy, urban and rural development, and climate change.

Memorandum by Geraud Markets (UK) Ltd (MARKETS 25) You may not be aware but Geraud Markets UK Ltd is the main sponsor of the National Association of British Markets Authorities (NABMA) which is one of the primary stakeholders in the Retail Markets Alliance (RMA). We have a very close working relationship with the organisation’s principle oYcers with whom we consult on a regular basis. Our company’s own principle, Monsieur Jean-Paul Auguste, is also likely to be asked to support any delegation which may be invited to represent the industry at future meetings with the Select Committee. Monsieur Auguste is also the incumbent Chair of the Retail Sector of the World Union of Wholesale Markets. Whilst we will continue to play an active role in promoting the industry’s joint response to the Select Committee, together with our colleagues in NABMA we have concluded that it may be helpful to the process if we were to submit a separate document in support of the main submission based upon our own experiences as Europe’s largest private sector market operator. Geraud Markets is uniquely placed to provide a private sector perspective by drawing upon its extensive experience of commercial market operations and joint public-private sector partnerships in the UK, France and several other European countries. Since its foundation in 1880, we have specialised in the development and regeneration of community retail markets, building an association with over 300 local authorities for whom we manage in excess of 1,500 markets each week through 600 separate contracts. We are proud of the fact that some of those contracts have continued through the entire 129 years of the company’s existence. It is perhaps no coincidence that since its foundation, the company has remained in the same private ownership of the Auguste family. The experience we have gained in the creation and regeneration of local authority markets is, we believe, unique amongst European market operators and something which could add value to the work of the Select Committee. Geraud Markets UK Ltd (GMUK) is the UK arm of Groupe Geraud and whilst GMUK Ltd has acquired a number of wholly-owned business interests, we still believe very strongly that the management of community based retail markets is our core activity. Since 1999, when the company was established in the UK, GMUK has grown to become the country’s leading private sector market operator. In 2003, we established with Liverpool City Council, a ground- breaking joint venture partnership. Six years later, Geraud Markets Liverpool Ltd (GMLL) remains the UK’s only public-private sector joint venture market operating company, managing nine of Liverpool’s indoor and outdoor retail markets plus the city’s Wholesale Fruit & Vegetable Market. In that time, GMLL has overseen a dramatic reversal in the financial performance of the city’s markets portfolio. Prior to the Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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company’s involvement, the City Council’s markets were operating at a significant annual deficit. However, within four years of the company becoming responsible for the strategic and operational management of the portfolio, that deficit was eliminated and an aggregate profit of over £1,000,000 realised. Major initiatives currently being progressed in the city include the relocation of the city centre Charter Market in St Johns Centre to a new purpose-built location, the relocation/redevelopment of the Wholesale Market and the redevelopment of the city’s oldest street market, Great Homer Street. Our other local authority contracts include Allerdale, Clevedon, Swadlincote and most recently Ipswich, where the revival in the town’s market since we assumed control in September 2007 has exceeded both our own and we believe also our partner, Ipswich BC’s expectations. In the UK, a wholly-owned subsidiary of GMUK, InShops Ltd, comprises 40 centres from Aberdeen in the north to Chatham in the South. Our combined UK operations employ 250 people and generate income in excess of £22m per annum. InShops is an entirely private commercial venture which has reinforced the company’s experience and expertise in the UK’s extremely competitive retail sector. In the context of Geraud Markets UK Ltd’s contribution in support of the main RMA submission, it would be neither appropriate nor feasible to provide an exhaustive account of the company operations, experience and philosophy of markets management. However, it is perhaps particularly appropriate to include a brief reference to certain key areas as “headline” discussion points which could be explored in greater depth, should the members of the Select Committee so wish.

PartnershipWorking The principle underpinning the company’s philosophy and approach to each and every one of its public- private associations is one of true “Partnership”. Whilst the structure of the company’s relationships vary from simple management contracts to full Joint Venture Companies in which both parties are shareholders, the relationship is always based on openness and transparency and the key to sustaining that relationship, communication, is invariably conducted in a spirit of mutual respect for each other’s aspirations. Whilst we and our partners recognise that as public and private sector organisations, we are subject to diVerent and occasionally conflicting constraints in the delivery of our respective objectives, we also understand that each party has an equally important and valuable contribution to make to the relationship and that the key to sustaining that partnership is to ensure that we establish an agreed set of key objectives and an agreed strategy as to how those objectives will be delivered. We believe, and our extensive experience in partnership with numerous local authorities demonstrates that whilst the public and private sectors seek to achieve a mixture of social, environmental and economic objectives, these need not be mutually exclusive and with appropriate planning and consultation, it is entirely possible to satisfy the aspirations of both parties. Geraud Markets UK Ltd is a commercial market operator. However, whilst the company needs to achieve a financial return on its investments, short-termism and profit maximisation are not principles which our organisation advocates. Our approach recognises and values the important role of all stakeholders in delivering popular and sustainable market operations. If we are able to provide a service which customers enjoy and continue to support, market traders will be attracted to and benefit from the buoyant trading conditions. The local authority in turn will enjoy the benefits of a thriving alternative retail oVer. If we succeed in satisfying each of the stakeholders’ aspirations, our own commercial return will inevitably follow. Our reward is a consequence of delivering our partners’ objectives. Public-private sector enterprise is our core business and our company is, we believe, unique in having developed long associations based upon our ability to meet our partners’ aspirations to create vibrant and sustainable community based retail markets. In relation to the Select Committee’s remit, our approach is perhaps best illustrated by two examples of how partnerships can be structured very diVerently to achieve the objectives of the stakeholders. The first example which is mentioned earlier in this document is the joint venture company which was created in partnership with Liverpool City Council (LCC). For statutory reasons, LCC’s shareholding in the JV Co is limited to 19.9% with GMUK holding the remaining 81.1%. Whilst LCC holds the minority shareholding, a schedule of “Reserved Matters” was incorporated into the contract and Board approval on these matters must be unanimous. In eVect, through a “Golden Share”, LCC is able to exercise a degree of control which is disproportionate to its minority shareholding. The second example is our relationship with the London Borough of Southwark (LBS) which in contrast to the structured legal relationship of the Liverpool partnership, is based upon a very loose, informal arrangement. In September 2007, LBS invited GMUK to assume responsibility for its Street Trading Section. The initial interim contract period of three months has been extended until July 2009 (potentially 2010) to allow the authority to undertake a fundamental review of its Street Trading Service. Members of the Select Committee will be well aware that unlike the provinces, markets within the capital are governed by the London Local Authorities Act 1990 (LLAA). There are particular provisions within that legislation which govern the management of markets within the 31 London Boroughs and Westminster which do not exist elsewhere in Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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the UK. It is interesting to note that GMUK has successfully managed the Borough Council’s markets for a period of 17 months without LBS delegating any of its statutory powers to GMUK’s staV. In reality, the management of the Council’s markets portfolio has been achieved without the benefit of regulatory powers provided by the LLAA 1990 and which all London Boroughs no doubt consider indispensable to the eVective management of their Markets Services. Our relationships with Liverpool and Southwark illustrate the point that whilst one is based upon a very clearly defined, legal structure and the other is a much less formal arrangement with no written contract, both suit the individual circumstances and both have achieved the objective of providing an eVective management structure which is capable of realising the respective authorities’ objectives. In Liverpool, where we enjoy a long-term relationship of 15 years with an option to extend for a further period of up to 10 years, we are able to take a long term view and develop proposals which complement the city’s own regeneration initiatives. In Southwark, where our tenure is much shorter, we are still able to provide the same eYcient operational management support. In both instances, our role is specifically designed to fit the individual sets of circumstances prevailing in that area.

StrategicPlanning No two markets are identical. Social, economic, and demographic factors influence the nature of the market oVer. The location and physical constraints of the site determine the scale and configuration of the operation. Political support or opposition from various groups combine with other considerations in an endless permutation of variables to determine the unique nature of each market. One of the main advantages which markets enjoy in an increasingly innovative and competitive retail sector is the speed and flexibility with which they are able to respond to often very rapidly changing consumer preferences, shopping patterns and numerous other factors which impact upon the industry. The uniquely close relationship which market traders enjoy with their customers provides them with an understanding of the consumer which High Street retailers and national multiples by the nature of their management structures and scale of operations, find diYcult to match. Whilst there is no magic wand nor prescriptive formula which can guarantee the viability or sustainability of a market, if the experience and expertise gained in 129 years in the industry has taught us anything, it is that the inclusion of the views of all stakeholders in translating a vision into a bespoke strategic and operational management plan, is essential to ensure that whatever potential may exist for that market, is realised. The final point to make on this subject is that successful and sustainable markets are not achieved overnight. They need to become embedded in the social and commercial fabric of the town or city. Only when a strong local identity has been established will a genuine sense of ownership develop amongst the local community. It is this sense of ownership which is the essential element in ensuring the long term sustainability of the market.

WholesaleMarkets—SupplyChain Whilst the most visible sector of the markets industry is community retail markets, it would be wrong to overlook the importance which wholesale markets play in the supply chain. Indeed, wholesale markets are the hub of the fresh produce industry, underpinning the most fundamentally important elements of every general market. Fresh produce traders are the “anchor tenants” of any general retail market. However, the extent to which the large supermarket chains have begun to dominate the retail sector over the past 25 years has seriously undermined the ability of traders in fresh produce to compete. A modern, thriving, national wholesale market network is essential to supply traders who are required to service a generation with increasingly more sophisticated tastes, demanding of ever wider choice and better quality. Whilst any detailed analysis of the relevance of wholesale markets and their importance to the commercial activity of cities and regions throughout the UK is clearly beyond the scope of this document, it is perhaps worth including the briefest of references to our European connections. Our own company commissioned a very detailed study from colleagues in Rungis, Paris which is generally acknowledged to be Europe’s premier wholesale market. That study provides important evidence from leading European experts in the fresh produce industry. We believe that it would be of interest to members of the Select Committee and could be made available, if required. Our vision for the wholesale markets in Liverpool is to create an integrated food hub which includes: — Wholesale Fruit Vegetable and Flower Markets. — Meat and Fish Markets. — Food Preparation and Processing. — Food Packaging. — Related and Ancillary Commercial Activities. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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The benefits from the vertical integration of the fresh produce supply chain not only provides commercial and logistical advantages for those involved but there are obvious environmental benefits from the reduction of food miles and the consequential reduction in carbon emissions. Inevitably, improved eYciency in the supply chain results in benefits for the end user. Healthy eating and other socially desirable food related initiatives all become more achievable as a result.

Markets—Diversity andChoice A final point which the Select Committee may wish to have regard to is the increasing popularity of Farmers, Continental, Christmas and other speciality markets throughout a diYcult period for the markets industry as a whole. Our company’s Special Events Division operates an extensive and very successful programme of events throughout the UK and last year we piloted a number of International Street Markets in Stockholm and Copenhagen. Such was the success of those events that a programme of over 20 markets is being developed for 2009 in response to the interest generated amongst other Scandinavian towns and cities. In an age of increased mobility where the barriers to economic migration are becoming fewer, a demand for increasingly more diverse and unusual products is developing. Speciality Markets are perfectly suited to satisfy that demand and we believe that this trend will continue in spite of the present challenges facing world economies. The growth and popularity of food based speciality markets underlines the opportunity and indeed requirement for a proactive approach to encourage into the industry the next generation of traders to satisfy the increasingly sophisticated tastes of the modern consumer. The role is not exclusively that of the private or public sectors but is best achieved by a multi-agency approach where central and local government creates the necessary framework in which the private sector can use its experience and expertise to implement a holistic solution which addresses the structural problems within the industry which have been largely overlooked for too long. As we have already stated, this document is intended to support the main submission of the RMA by providing a personal perspective of the markets industry in the UK and Europe from our own experience as commercial market operators, albeit with extensive involvement with the public sector. We have attempted to do no more than provide an understanding of our company’s ethos and to raise a limited number of keys points which we believe are relevant to the work of the Select Committee. If you feel that you would like to discuss the matter further, we have no doubt that Monsieur Auguste would be delighted to meet members of the Select Committee and we are sure that as the head of Europe’s largest private sector market operator, his personal contribution to the process would be invaluable.

Memorandum by The Alliance Against Intellectual Property Theft (MARKETS 26) About theAllianceAgainstIPTheft Established in 1998, the Alliance Against Intellectual Property (IP) Theft is a UK-based coalition of 21 trade associations and enforcement organisations with an interest in ensuring intellectual property rights receive the protection they need and deserve. With a combined turnover of over £250 billion, our members include representatives of the audiovisual, music, games and business software, and sports industries, branded manufactured goods, publishers, retailers and designers. The Alliance is concerned with ensuring that intellectual property rights are valued in the UK and that a robust, eYcient legislative and regulatory regime exists, which enables these rights to be properly protected. Our members work closely with trading standards and local police forces to reduce the harm caused by intellectual property crime in local communities and to ensure that legitimate businesses and traders are able to operate fairly. We work closely with the Department for Innovation, Universities and Skills and the Intellectual Property OYce to raise awareness of the harm caused by IP theft. We, and many of our members, are also participants in the IP Crime Group, which facilitates cross departmental dialogue and joint working amongst the relevant enforcement bodies and organisations.

Introduction Traditional markets play a valuable part in the consumer shopping experience, providing for many an environment where they can purchase goods more cheaply than those for sale in retail shops. Visits to such markets can also provide an outing for the whole family, in the belief that they oVer a safe shopping environment. The Alliance is very concerned, however, about the amount of counterfeit and pirated product that is available at markets up and down the country and appreciates the opportunity to draw the Committee’s attention to this, and to the harm it causes. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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We recognise that the inquiry is designed to consider mainly the operation and the social/economic eVects of traditional retail markets, and that car boot sales have been deemed to be outside the scope of this inquiry, and we understand why such a distinction has been made. However, we respectfully draw the committee’s attention to the fact that the same problems regarding the sale of fake and counterfeit goods, and the harm this activity causes, are equally to be found in traditional retail markets (be they covered or uncovered), occasional and seasonal markets and car boot sales and trade fairs (eg computer, watch and book fairs).

WhyGreaterRegulation isNeeded Markets (which include occasional sales, non-chartered markets and car boot sales), are not uniformly regulated and therefore oVer easy opportunities for those who wish to trade illegally. Markets are infiltrated by racketeers and criminal gangs for whom intellectual property (IP) crime is just one in a portfolio of illegal activities that makes up a criminal lifestyle. At present, the trade in counterfeit and pirated goods represents a high return and very low risk and markets—be they occasional, fixed or permanent—are the venues of choice. There is increasing evidence of children being used to front up market stalls in order to protect the counterfeiters, and of violence and intimidation in the enforcement of traders’ patches. The link between the trade in counterfeit goods and organised crime such as people smuggling and the drugs trade is also well- established. The extent of the problem was acknowledged in the Gowers Review of 2006, which recommended that the Government consult on measures to tighten the regulation of occasional sales and markets by the end of 2007. This timetable has slipped and the delay is doing real damage to legitimate businesses and helping to line the pockets of serious organised criminals, so there is a need for urgent action. Alliance members have been working with local authorities to encourage the implementation of codes of practice to introduce measures to clean up markets but the implementation of these has been patchy and criminals move from areas of vigilance to set up where there is little personal risk from local enforcement. The Alliance and the Trading Standards Institute are therefore united in pressing for commonsense light touch regulation of such markets in order to stop them being used for criminal activities. This would protect the public from the risk of purchasing fake, substandard goods, and protect local businesses from unfair competition from illegal traders, whose activities undermine local communities and defraud the Exchequer (by not paying taxes, including VAT).

TheThreat Harm to consumers Unregulated markets of any kind expose consumers to a risk of real harm which they would not encounter in other retail environments. The Anti-Counterfeiting Group, an Alliance member, reports a wide range of potentially harmful products found, by their brand owner members, for sale at markets. Specific examples include: — flammable children’s clothing; — fake household cleaning products; — fake mobile phones and accessories; — counterfeit perfume; — fake alcohol and cigarettes containing noxious and harmful substances; — fake appliance batteries which have exploded under testing conditions; — fake electric drills; — fake disposable razors that have caused extensive skin damage; and — other fake personal care products (skin creams, soaps etc). It goes without saying that the safety of counterfeit electrical goods and children’s toys cannot be guaranteed, but add to this the number of DVDs, CDs, computer games and software, and books on sale in such markets, and it can be appreciated just how much damage is caused to legitimate local retailers and business.

Harm to communities The link between the trade in fake goods and other serious organised crime, such as people smuggling, hard core pornography, drugs and the use of oVensive weapons, is becoming increasingly clear. The harm caused by IP crime is now recognised by crime prevention and enforcement bodies such as the Serious Organised Crime Agency. IP crime is one of SOCA’s priorities, and addressing counterfeiting and piracy has been identified as one of the five national priorities for local regulatory services following the Rogers Review. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Harm to businesses and the economy This multi-billion pound trade hits UK industry at all levels—from large corporations through to local traders. The collapse of three major British video store chains, Choices UK, Global and Apollo Video Film hire, with the loss of over 500 outlets and many jobs, was partly attributed to the piracy of DVD/film product. The impact of this closure was felt not just in economic terms but also through the damage it has done to the vitality of high streets and the lack of legal outlets for video across the country, which have been replaced by illegal street sales. The TECHNOPOLIS Study,1 quoted in the IP Crime Report 2007 demonstrates that 23% of Small and Medium Sized Enterprises have had their business significantly aVected by IP crime. Since the Government has acknowledged the need for regulation of markets it is regrettable that lack of action by DBERR is adding to the burden faced by nearly a quarter of the UK’s most vulnerable businesses. In addition, the Exchequer is losing out on valuable tax revenue because of non-payment of VAT, corporation tax and other business rates by IP criminals who are instead making vast profits from the illegal trade in fakes.

SomeExamples ofProblems atMarkets Dagenham Market, London In the week before Christmas 2007, a huge haul of fake “designer” clothing worth more than £150,000 was seized in a raid on Dagenham Market. Barking & Dagenham Council’s trading standards team led the raid, supported by the police and street wardens, targeting two stalls suspected of selling counterfeit brands, and removed 10,000 items of clothing. Several test purchases had previously been made from the stalls and both stallholders had already received warning letters regarding the sale of fake goods.

Grey Mare Lane Market, Manchester This market is a perennial problem for many Alliance members, resulting in FACT arresting 11 people during 2008 and over 17,000 counterfeit DVDs being seized. Quantities of counterfeit cigarettes were also found. The results of 10 prosecutions are still pending. It is estimated that at least 25% of the stalls are selling counterfeit goods.

Nine Elms Market, Vauxhall Nine Elms is a serious problem for law enforcement with trading standards no longer investigating without police support. 40–45% of stalls are selling all manner of counterfeit goods including DVDs, clothing, toiletries, tools and batteries; the danger such goods pose to consumers from these products is clear.

Brownhills Market, West Midlands Industry, trading standards and the police work jointly in an attempt to ensure Brownhills Market is a safe place for consumers and legitimate traders. However, nine people have been arrested over the past year and over 23,000 counterfeit DVDs seized. One of the people arrested tried to resist and ended up assaulting one of the police oYcers. He was also arrested for this oVence. FACT estimate up to 30% of the stalls at this market are involved in the sale of counterfeit goods.

Bank Holiday Market, Warwickshire On 24 March 2008 oYcers from Warwickshire Trading Standards and Police Services attended a Bank Holiday Market in Warwickshire. Whilst there, they identified a stall selling counterfeit clothing, razors and DVDs. The four stallholders were arrested.

Scale of theProblem — A 2005 report (Fake Nation) co-funded by the government and industry into consumer usage and attitudes towards counterfeits and fakes revealed that roughly 25% of all purchases take place at such markets. — Research by the audio-visual industry conducted by IPSOS shows that 33% of buyers of counterfeit DVDs purchase them at car boot sales and markets. — In addition, 1 in 3 counterfeit DVDs are sold at car boot sales and markets. — Similar research conducted by IPSOS for the music industry shows that 29% of counterfeit CDs bought come from car boot sales or markets.

1 TECHNOPOLIS Study: “EVects of counterfeiting on EU SMEs and a review of various public and private IPR enforcement initiatives and resources.” Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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— An independent survey by Ledbury Research in January 07 shows that markets and car boot sales remain the prevalent source of counterfeit clothing and footwear, with two-thirds of respondents who purchase such goods doing so from market stalls. — This research also found that criminals are receiving £750 million each year from the sale of such fake clothes and shoes at markets alone representing the sale of 33 million fake items. Ledbury’s research also shows that fake clothing and footwear alone cost local shops, traders and manufacturers nearly £3.5 billion a year in lost UK sales.

Examples ofLinks withAssociatedCriminalActivity(Courtesy ofFact) Youth Exploitation Location: Glasgow A group of youths, all aged under 16, were arrested as they tried to covertly sell counterfeit DVDs at a well-known market. Surveillance had revealed that the youths were operating under the control of a recidivist DVD seller who was using the youths to sell the product. The ringleader was subsequently arrested. The use of children in the sale of counterfeit DVDs highlights how easy it is for minors to become involved in criminal activity. The use of children also demonstrates how lifelong criminals exploit minors in order to cover up their own financial greed and attempt to distance themselves from being caught.

Benefit Fraud Location: North West of England Barry Powell and Mark Quincey, who ran a well-organised counterfeiting operation in the North-West of England were imprisoned for 12 and 15 months respectively for their role in a six-month scam that also involved an extensive benefit fraud. His Honour Judge Morrow QC also handed down a nine month prison sentence to fellow ringleader Sarah Haynes. They operated this illegal business from their homes, supplying local markets and car boot fairs, generating in excess of £40,000 in criminal proceeds during its six month operation. The defendants had also claimed a total of £20,000 illegally in state benefits. The convicted may now lose all their assets under the Proceeds of Crime Act. These defendants were arrested along with 21 others as part of a massive police operation involving 135 oYcers, and coordinated with UK record industry body the BPI, FACT, games industry enforcement body ELSPA and the Department for Work and Pensions.

Drugs Location: Deptford, London A search warrant was executed at a flat in Deptford, London. The warrant had been obtained by the Metropolitan Police, also present were Lewisham Trading Standards, Borders & Immigration Agency, and FACT personnel. The flat contained a DVD factory consisting of multiple DVD burning units, printers, a large quantity of printing ink, 6,600 blank media discs, 7,600 counterfeit DVDs and false identity documents. An illegal unregistered dental practice was also found to be set up by one of the occupants operating from the living room of the premises. From this, drugs including cocaine-derived dental anaesthetic and arsenic tinctures were seized. One man was subsequently arrested and cautioned under the Dentists Act 1984.

People smuggling Location: Lancaster, Lancashire On 5 February 2004 21 Chinese illegal immigrants tragically lost their lives whilst picking cockles in Morecambe Bay near Lancaster. Investigations by Lancashire Constabulary led the Police to addresses in the Merseyside area. Upon searching the homes Police found over 4000 counterfeit DVDs and computers containing counterfeit material. The two men were arrested for the involvement in the death of the Chinese cockle pickers and named as Lin Liang Ren and Lin Mu Yong. On 28 March 2006 Lin Liang Ren was charged with 21 counts of manslaughter, perverting the Course of Justice and manufacturing of false work permits. Ren was sentenced to 14 years imprisonment. Due to the severity of Ren’s involvement with the death of cockle pickers the Crown Prosecutor decided that Ren would not be charged with trade mark oVences. Lin Mu Yong was charged with Assisting and Facilitation Illegal immigration and perverting the Course of Justice. Yong was sentenced to five years imprisonment. Yong also pleaded guilty to 11 oVences under the Trade Marks Act of 1994 and was further sentenced to nine months imprisonment. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Dangerous weapons Location: Sunderland, Tyne & Wear A male was stopped by Northumbria Police for appearing to be driving without valid insurance for his vehicle. When told the vehicle would be searched the male advised there was a knife under the driver’s seat. A search revealed this to be a 7+ kitchen knife. The male was arrested and a subsequent search under PACE of his home address revealed a large quantity of counterfeit DVDs.

What theAllianceWouldLike toSee 1. Civil and criminal liabilities on market organisers who knowingly allow the sale of counterfeit or pirated goods on their land, for example from market stalls or car boot sales. There are already several precedents for holding them liable—aiding and abetting, and money-laundering (in the full knowledge that the profits are from illegal sales of fakes) have both been established as a basis for prosecution in recent years.2 It would therefore be diYcult to argue against, providing the measure allowed for the owners and organisers first to be given adequate warning through an enforcement notice that illegal sales or activities are taking place at the occasional sale. 2. The introduction of national light touch regulation which would include such measures as: — Requiring the market organiser to notify the local authority notified 21 days in advance. — Requiring that the organiser collect basic information on the day of all traders operating at the market—could include name, address, vehicle registration. — Requiring that the adult responsible for renting the stall remains which the precincts of the sale while trading was taking place. The Alliance has growing evidence of illegal traders using children to sell fake products in order to escape prosecution. — A standard clause in local authority licence agreements whereby a licence would be revoked if counterfeit or pirated products were continually sold. — A National Licence Database for all authorities to access which would alert them to people applying for a licence in one authority who had had a previous one revoked by another. This might go someway to addressing the continuing problem of displacement.

AllianceMembers Anti-Counterfeiting Group Authors’ Licensing and Collecting Society British Brands Group BPI (British Recorded Music Industry) British Video Association Business Software Alliance Cinema Exhibitors Association Copyright Licensing Agency Design and Artists Copyright Society Entertainment and Leisure Software Publishers Association Entertainment Retailers Association Federation Against Copyright Theft Federation Against Software Theft Film Distributors Association Institute of Trade Mark Attorneys Motion Picture Association Premier League Publishers Licensing Society

AssociateMembers Anti-Copying in Design British Jewellery, Giftware & Finishing Federation Video Standards Council

Memorandum by the National Farmers’ Retail & Markets Association (FARMA) (MARKETS 27) 1. The National Farmers’ Retail & Markets Association (FARMA) is the representative body in the UK for farmers’ markets and direct sales from the producer. It is a member of the Retail Markets Alliance which has made a separate submission that provides an overview about traditional retail markets. 1.1 This submission concentrates on farmers’ markets.

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1.2 Farmers’ markets have been the chief instrument of a change in the food culture in the UK over the past 10 years. Farmers’ markets made local foods visible and accessible to a large number of people, and supported a growing number of farmers and artisan food producers keen to revive food traditions as well as bring new products to the market place. “The resurgence of interest in food in UK society is epitomised by the growth of the farmers’ market movement . . . These trends are seen by some as not just indicative of a renewed interest in the provenance and quality of food but representative of an alternative food system that co-exists with ‘conventional’ systems of farming, food manufacture and retail.” Cabinet OYce, Food Matters, Towards a Strategy for the 21st Century (July 2008) 1.3 It is no accident that local foods are synonymous with quality foods, and that farmers’ markets are identified as places to buy these foods. The attractive concept has needed firm steering from the start so that it did not become diluted with imported goods and traders who have no direct relationship with the foods sold ie wholesalers and middle-men buying from other sources. Rules were put in place that determined what a farmers’ market should be; these are checked and policed through a Certification system implemented by FARMA. As a result, people trust farmers’ markets and enjoy shopping there because it is a diVerent and rewarding experience. “For consumers, farmers’ markets oVer an opportunity to escape the familiar retail experience oVered by the large supermarkets. For producers, they are an opportunity to gain a premium for unique, artisan, home-produced foodstuVs which they may not be able to sell to major retailers owing to scale issues and the process of supermarket buying.” Cabinet OYce, Food Matters, Towards a Strategy for the 21st Century (July 2008) 1.4 This document calls for farmers’ markets to continue to be recognised as special markets, with a framework of rules and an inspection procedure. It calls for this recognition to extend to codification of farmers’ markets standards so that Trading Standards OYcers can be empowered with regard to improper use of the term “farmers’ market”. 1.5 Farmers’ markets that are Certified under the FARMA scheme may then ask for some simple privileges which will further support their healthy development such as derogations under signage and planning law. 1.6 This document calls for national and local government to recognise that this is a fragile, young sector and that the impact of regulation is often disproportionate on farmers’ markets. 1.7 The first successful modern farmers’ market took place in September 1997; there are now some 800 farmers’ and producers’ markets operating in the UK. They have become part of the food vocabulary for food writers, chefs and the public at large and are recognised as instruments in many areas of local and national government policy. 1.8 This document describes how farmers’ markets are special. They improve the quality of life of communities and bring people together; they can help to revitalise town and city centres and improve local economies as well as support the livelihoods of farmers and entrepreneurial individuals. Planning Policy Statement (PPS) 6, section 2:27 states: “Street and covered markets, including farmers’ markets, can make a valuable contribution to consumer choice and diversity in shopping as well as the vitality of town centres and to the rural economy.”

2. Summary 2.1 Farmers’ markets oVer locally produced foods and crafts, sold to the public directly by those who have grown, reared, caught or made them with locally-grown ingredients. Millions of people have welcomed the renaissance of an ancient idea, a market that springs from its community of farmers, artisan food producers and land-based crafts and which oVers contact, information and essentials of local distinctiveness. A thriving farmers’ market enriches the quality of life of its community. 2.2 Farmers’ markets are seen as quality outlets. Unlike general markets, farmers’ markets are defined by rules which are supported by Certified standards, established by FARMA. Stallholders must fulfil key criteria (see 3.6). While general markets have been in decline, farmers’ markets have grown rapidly over the past decade. 2.3 Market towns are based on ancient markets at which, for hundreds of years, local farmers regularly sold their produce. From the 1950’s, supermarkets grew in size and number and took farmers’ produce into their centralised distribution networks, almost stifling the local market for produce. As farmers withdrew, traditional retail markets turned to selling general goods and foods from wholesale markets. Their image suVered and their popularity dwindled. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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2.4 In 1997 the first modern farmers’ market in the UK started, referencing successful farmers’ markets in North America where standards/criteria had been applied. In the UK, there was growing consumer interest in local foods and alternatives to supermarkets, which farmers’ markets thrived on and fuelled. There are now some 800 farmers’ markets recorded in the UK, mainly in England and operating mainly on a monthly basis. 2.5 Farmers’ markets are popular with 30–33% of households shopping at least annually (YouGov tracking research commissioned by FARMA 2004–08). Some £250million is spent at farmers’ markets annually, money which circulates in the local economy first (New Economics Foundation, LM3). Some 10,000 farmers and small businesses directly rely on farmers’ markets for some or all of their livelihood. 2.6 Benefits of farmers’ markets include: — enabling farmers and farming to become more visible (linking farmer and consumer, urban and rural); — fostering an appreciation of good food that can be produced in each locality (local distinctiveness); — enabling many farms to be/remain viable through diversification to produce for a local market; — improving local economies, reviving town centres (although not a panacea); — reinforcing local identity and building community links; — encouraging the development of new skills eg artisan cheese-making, bakers, butchery; and — improving the quality of life for local residents. 2.7 Farmers’ markets are diVerent from general markets in that: — they are embedded in a supply-side based on local farms and craft-scale producers, who need the markets as much as the markets need them to develop capacity; — they work with, and have strong links with, the community they serve; — while general markets tend to be managed by local authorities there are many diVerent kinds of farmers’ market operators, including local authorities or town centre management but also community groups, farmers’ and producers’ groups, entrepreneurial individuals and private management companies; — they require protection and standards so that they remain distinctive and do not degenerate. Car- boot sales are a good example of a concept debased through lack of standards/regulation; and — with a few exceptions, farmers’ markets do not integrate well with general markets (see 4.5).

2.8 Summary of Recommendations 2.8.1 To maintain distinctiveness and consumer trust in the term “farmers’ market” (which cannot be trademarked and is open to abuse), FARMA established a Certification programme in 2002. It is voluntary and some 250 farmers’ markets are Certified within the scheme. Certification is a very useful tool that distinguishes real farmers’ markets and could provide a means for establishing a number of benefits from local authorities and national government to encourage further healthy development of farmers’ markets.

Recommendation FARMA calls for the term “farmers’ market” to be codified by the Food Standards Agency with the standards set by FARMA Certification made compulsory for any market using the name “farmers’ market”, “producers’ market” or similar term, and Trading Standards OYcers empowered to enforce. 2.8.2 Disproportionate eVect of legislation, targeted at larger businesses, on the micro-businesses and SME’s that make up farmers’ market operators and stallholders. Examples of this are: — Licensing laws which require Individual and Premises Licences or costly Temporary Event Notices. — Signage: legislation designed to end the abuse of “temporary” advertising (as displayed in fields alongside motorways) has prompted some local authorities to ban all signage for farmers’ markets.

Recommendation FARMA calls for recognition of micro-businesses and SME’s in legislation to ensure appropriate measures and derogations are included under British and EU law; we suggest a fast-track approval for signage for Certified farmers’ markets. 2.8.3 FARMA calls for changes to Planning law, which currently allows up to 14 events a year without the need for planning permission (Class B of Part 4 of the Town and Country Planning General Permitted Development Order 1995), and is among the reasons that most farmers’ markets operate just once a month. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Recommendation FARMA calls for a derogation in the Planning laws to allow up to 60 Certified farmers’ markets events a year before planning permission is needed.

2.8.4 Supply-side changes New producers—particularly of primary produce such as fruit and vegetables—are needed to boost existing and create new farmers’ markets. Council-owned smallholdings have in the past provided land at low cost rents for start-up farmers; these are diminishing in number as they are sold oV by Councils.

Recommendation Local authorities encouraged to retain and make smallholdings available at reasonable rents, and increase the amount of land on oVer under a scheme to encourage new entrants to farming. All agricultural and farming policy decisions should be tested in the light of a policy/strategy for small farms.

2.8.5 Market Charter Rights Ancient Market Charter rights can be held by local authorities or individual land-owners and state that no market may be established within six and two-thirds miles of a Charter market site, whether or not there is actually a market on the site, and whether or not an actual Charter document can be found. Charter Rights can be invoked to constrain the development of farmers’ markets (eg in Leicestershire) either by disallowing the farmers’ market or charging high fees for a license.

Recommendation A review of Charter Rights to establish whether this ancient law is needed. Certified farmers’ markets should be exempt from the restrictions imposed by Charter Rights and/or a peppercorn fee charged for licenses where they are applied.

2.8.6 Lack of infrastructure for markets and farmers’ markets Farmers’ markets operate in temporary facilities which can make good retail practice diYcult, through lack of power supply and running water to the site of the market. Recommendation: local authorities should be required to create designated areas, including appropriate outdoor areas, for markets and farmers’ markets which incorporate power supply and running water.

2.8.7 Local authorities support for Certified farmers’ markets as community-enhancing activity Local authority support is critical for the sustained healthy development of the alternative local foods network and land-based crafts supply to communities. There are social, health and economic benefits (see 3.6) inherent in a successful local farmers’ market. While there are some good examples of support, it is often lacking hindering the access to good sites, signage, promotion of local foods within local government and missing the potential local foods as a tourist attraction.

Recommendation That a cross-cutting group is established of markets & farmers’ markets, local authority representatives, trading standards, environmental health bodies and interested government departments. This should be replicated on a county basis.

3. Background 3.1 Farmers’ have sold direct to customers for centuries. Market towns grew around markets which were based on food produced locally being sold on regular and frequent market days. 3.2 The growth of supermarkets changed markets and, as supermarkets increased their dominance from the 1950’s, most traditional retail food markets declined in popularity. 3.3 Farmers, particularly those on small, family-run farms who traditionally sold at retail or wholesale markets, have needed to find alternative routes to sell their produce. Direct sales through pick-your-own, farm shops, box schemes (home delivery) have grown in number and sophistication over the past thirty years. For the past 10 years, farmers’ markets have provided a new, accessible and attractive means for farmers to sell direct.

3.4 The growth of farmers’ markets — Interest in the growth of farmers’ markets in North America led to the Farm Retail Association (FRA) in 1996 adopting a policy of support for introducing them in the UK. The FRA worked with the Ministry of Agriculture Food & Fisheries (MAFF) to trial the retail concept. — Independently the Local Agenda 21 oYce at Bath & North-East Somerset Council set out to pilot a farmers’ market, and introduced the first modern farmers’ market in September 1997. A BBC Processed: 17-07-2009 23:36:32 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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TV Countryfile programme featuring this Bath market and the growth of farmers’ markets in the USA led to a high level of interest from many diVerent potential operators, including community sustainability teams within local authorities. — We believe that there are currently around 800 farmers’ or producers’ markets in the UK. Of these we estimate that 600 are regular (mainly monthly) farmers’ markets, of which 250 are FARMA Certified. — The combined value of sales at farmers’ markets we estimate to be £250million annually. The total value of the direct sales sector we estimate to be £2 billion annually. Some 10,000 farmers and producers take part in farmers’ markets, where some 250,000 “stallholder-days” have been created in the last decade. — Farmers’ markets thrived on and fuelled the growing consumer interest in an alternative food supply chain that bypassed the supermarkets. Farmers have re-skilled as butchers and chefs and a new breed of artisan food producers has been encouraged through a low cost and relatively easy3 access to the market place. — Farmers’ markets have been a welcome addition to community life and important to UK tourism. — Direct communication with consumers ensures that stallholders at farmers’ markets are operating to high animal welfare and environmental standards.

3.5 Background to FARMA — In 1998 MAFF facilitated the formation of the National Association of Farmers’ Markets (NAFM) with four sponsoring organisations working together (Bath Environmental Centre, FRA, National Farmers Union, Soil Association). NAFM published standards and encouraged the development of farmers’ markets throughout the UK. — By early 2001 there were 200 farmers’ markets. Almost all closed due to foot and mouth disease in spring 2001, damaging the impetus and confidence of producers and organisers. In 2002 a Certification programme for farmers’ markets was introduced by NAFM. — In 2003 the memberships of the FRA and NAFM voted to merge to form FARMA. This produced a social enterprise which combined the interests of farmers/producers selling direct with farmers’ markets organisers. FARMA is constituted as a not-for-profit co-operative society. — FARMA has a membership of 700 of which 100 are farmers’ markets managers or management organisations, representing some 250 farmers’ market locations.

3.6 What is a farmers’ market? FARMA sets key criteria that define a farmers’ market. These are: (a) stallholders should only sell what they produce/make; (b) stallholders should be drawn from the locality (typically 30 miles); (c) the principal stallholder should be involved in production; and (d) there is information at each stall and within the market about the produce sold. These criteria mean that: — middlemen do not sell at farmers’ markets; — producers take full responsibility for what they bring to the market; — producers are able to take the full margin; — a local food and crafts network is catalysed; — routes to markets for small farms and smaller-scale producers are enabled; — a spirit of enterprise is fostered; — consumers benefit from more information about their food and where it comes from; and — seasonality improves variety. The benefits that farmers’ markets bring to participants and communities are: — Economic—local businesses are supported; farmers’ markets bring footfall which improves other businesses in town centres. — Social—farmers/producers working together to create eVective retail markets means more co- operation and partnerships; rekindling of food production skills eg development of artisan cheeses. — More diverse farming, range of crops and types of livestock enhances biodiversity. — Farming viability improved, younger generation stays on the farm to work.

3 FARMA standards for farmers’ markets insist that all food producers are compliant with all current food and food hygiene regulations. Processed: 17-07-2009 23:36:32 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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— Social and educational benefits for a local community—improving the quality of life. — A spirit of community is fostered through contacts made at the farmers’ market. — Shorter food chains mean fresher food, potentially more variety/choices, arguably better quality food. — Seasonality means that people buy a greater variety of diVerent foods; and it can be cheaper than the supermarkets. — Diet can be improved through this, and through the requirement to cook fresh foods. — The dialogue between customer and producer is a powerful mechanism to encourage producers to develop/maintain high environmental and animal welfare standards. — Reduced food miles arguably produce an environmental benefit. — There is little or no packaging which reduces waste and the environmental impact of disposal. — Farmers’ markets are part of the tourism oVer and catalytic to other food events eg food festivals. Farmers’ Markets

Markets Local Food

Community

The diagram above shows the relationship between the local food supply, the community and locations in which farmers’ markets sit. Farmers’ markets come from the grass-roots of their community. The best are deeply embedded in their community. This is the key distinction between farmers’ markets and general markets: the people involved as stallholders and the products sold are all related to the place. Types of operators include: — producer owned organisations (eg Thames Valley Farmers’ Markets Co-operative Ltd, Hampshire Farmers’ Markets Ltd); — specialist private operators (eg London Farmers’ Markets Ltd, Made in Stroud); — local authorities (eg Waverley Borough Council, North Lincolnshire Council); — community voluntary groups (eg Deddington Community Initiative, Moseley Neighbourhood Forum); and — local voluntary groups (eg Frieds of the Earth—Maidenhead, Salvation Army—Hadleigh, Essex). Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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3.7 Who shops at farmers’ markets FARMA conducts annual consumer tracking research. For GB in 2008: — 10% of households spontaneously said they bought food from a farmers’ market. — 71% of households would like to shop at a farmers’ market. — 57% of households were aware of a farmers’ market in their locality. — 30% of households shopped at a farmers’ market at least annually. — Amongst ABC1’s this was 36% and amongst C2DE’s this was 24%.

3.8 Standards at farmers’ markets FARMA sets the standards for farmers’ markets which are based on the core criteria described in 3.6. Certification is based on an independent inspection by an accredited inspectorate. Since 2002 this has been SA Certification. (Note that organic production is not a criterion for farmers’ markets). The standards set and the inspection process have distinguished farmers’ markets from general markets. Certification is part of a strategy to ensure that consumers have trust and confidence in farmers’ markets and that a high quality standard is maintained in all aspects of the market. FARMA’s Certification is voluntary, and there is a cost to the market for participating.

4. Traditional Retail Markets Today 4.1 How markets have changed in the past decade The most significant innovation has been the introduction and strong growth of farmers’ markets, representing a return to a tradition almost-forgotten as supermarkets rose to dominate food retailing. At the same time, general markets have seen a decline in fortunes indicating that farmers’ markets are providing a real alternative, quality shopping experience that meets expectations and continues to deliver on its promises. 4.2 The number of general markets now stands at around 1,150; the number of farmers’ markets is estimated to be 800. There will be change in the number of farmers’ markets at any one time as some will not succeed in attracting the customer/stallholder base needed for sustainability. Unlike general markets which tend to be in purpose-built locations and running more than one day a week for most of the day, farmers’ markets operate mostly once a month, for four or five hours, at a variety of temporary locations from village halls to car parks, streets and pedestrianised areas, market squares and farms.

4.3 Are there obstacles hindering the creation of more markets? Obstacles include: 4.3.1 Lack of local authority support evidenced in: — Selection of venues for farmers’ markets. — Imposition of fees/rentals which become unaVordable. These include charges for licenses, advertising road closure, rent for premises and charges eg for putting up and taking down market stalls. — Temporary signage blocked, or made diYcult. — Lack of investment in outdoor market infrastructure. — Lack of co-ordination between diVerent levels of local government and departments. 4.3.2 Lack of stallholders Insistence on standards means that farmers’ markets are not open to all-comers; farmers and food producers are eligible to attend along with land-based crafts. The shortage of primary producers (fruit and vegetable growers particularly) might be addressed through recognition that local authority smallholdings oVer a low-rent first-step farming opportunity, generally close to town/ city boundaries which particularly benefits urban farmers’ markets. Council-owed smallholdings have been sold-oV over the years and there has been little encouragement for new entrants. This trend should be stopped, and reversed with a policy of active support for new farmers and Council owned farm tenancies. 4.3.3 Charter rights These are a source of conflict where the charter holder stands on an ancient right to constrain, or demand fees from, any market within six and two-thirds miles of the location of the charter market. In most circumstances the prospective farmers’ market operator comes to an agreement with the charter holder and pays over a license fee. However, the amount is entirely within the gift of charter-holder. FARMA calls for a review of the legislation that upholds charter rights with a view to its amendment to favour Certified farmers’ markets. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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4.4 Are there obstacles hindering the successful business of existing market operators and traders? Obstacles include: 4.4.1 FARMA’s researches at farmers’ markets show that signage is the most important means of reminding and telling potential customers that the market is operating, and its location. Local authorities’ present stance on temporary signage is damaging farmers’ markets across the country and needs to be addressed urgently. 4.4.2 Current planning guidelines regarding temporary events is hindering the development of farmers’ markets in that they are constrained to being monthly events in the absence of planning permission to extend the number of days of operation. FARMA believes that the potential of farmers’ markets will not be realised until the majority are (at least) weekly events. FARMA recommends a review of planning law to allow Certified farmers’ markets on 60 days of the year. 4.4.3 New legislation regarding alcohol licensing has had a disproportionate eVect on the availability of local wines and beers at farmers’ markets. Market managements have, in some cases, been able to get personal and premises licences; some stallholders have resorted to Temporary Events Notices. However, alcohol is not consumed on the farmers’ market premises (other than samples) and the space occupied by stallholders oVering local wine or beer is small. FARMA recommends a review of the licensing law to establish appropriate measures for farmers’ markets and other temporary events where alcohol is sold but not consumed on the premises. 4.4.4 Farmers’ markets spring from the community in which they operate and, at their best, are embedded in the cultural and political life of the location, and local authority commitment is key to this. FARMA recommends that cross-cutting groups are set up by local authorities to ensure that consumer/ market/farmer/stallholder/tourism/other community voices are heard and work together.

4.5 What has been the impact of specialist markets, eg continental and farmers’ markets, and do such markets integrate successfully with older markets? 4.5.1 Farmers’ markets have revolutionised the idea of markets, giving them a new lease of life. They have enabled local communities to engage with their food supply. They are distinctive markets (supported in this with Certification of standards) and support the local economy with environmental, social and health benefits as well as tourism and other income generators for a town/city. As with market-days of old, they are places where people meet, there is a dialogue about food and experience of the seasons in the foods on oVer from local farms and producers. 4.5.2 Farmers’ markets provide an opportunity to sell direct and have provided small farms/producers with a route to survive, at a time of increasing supermarket centralisation. As a result an embryonic, alternative and localised food sector is developing. 4.5.3 Because they are so diVerent, they generally do not integrate well with older general markets. Certification requires inspection and constant vigilance. There is no such quality standard imposed on general markets and the opportunities for consumer confusion—leading to a lack of trust and eventually the collapse of the market—are great. With few exceptions, integration experiments have failed; where they have succeeded the farmers’ market has needed its own area in the market and special identification, along with exceptional vigilance on the part of the market management. In general, farmers’ markets work better separately located, or operating on diVerent days if in the same location as the general market.

5. TheirSocial andEconomicEffects 5.1 Social eVects of farmers’ markets There is evidence from Stroud Farmers’ Market, Gloucestershire and Brigg Farmers’ Market, Lincolnshire that a Certified farmers’ market can be instrumental in bringing new life into a community. In both locations the town centre was in decline at weekends as people chose to shop at out-of-town supermarkets. The farmers’ markets have been instrumental in bringing people back into the town centre and the increased footfall has benefited other town centre businesses. In Brigg, the number of people coming into town to shop on relevant Saturdays has increased ten-fold since the farmers’ market began. As many villages, towns and cities do not have any other readily available “place to meet”, farmers’ markets have an important role in providing a focal point and enabling social interaction. Similarly— recognising that farming can be isolated work—farmers attending as stallholders have been able to develop networks in the farming and general community previously not easily available, which has supported their well-being. As the farmers’ markets spring from the community, their success is a useful indicator of the health of a community in its support of the initiative. Not all farmers’ markets are successful; perhaps as many as one in ten of those that start-up fail because they do not gain the support of the community in terms of customers or number of stallholders. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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5.2 Economic eVect of farmers’ markets FARMA estimates that across the UK, farmers’ markets contribute some £250 million into their local economies each year. This is multiplied through increased local employment and use of local services by growing businesses. There are currently some 10,000 market-days per year, with over 10,000 producers involved in farmers’ markets across 250,000 “stallholder-days”. Farmers’ markets are a first-step for entrepreneurs to start selling foods and crafts, providing the opportunity for sales alongside market research of new products. Alongside opportunities for local people to buy locally produced foods and crafts direct from the producers, farmers’ markets are featured as a tourist attraction in many locations. Food tourism is a new feature in the UK, made possible over the past 10 years through the availability of truly local foods, a product of their location only, at farmers’ markets and farm shops.

5.3 Qualities of a successful market delivering social and economic benefits — Good locations, particularly highly visible and well-traYcked town/city centres. — Standards, which unpin and justify the trust put in the concept of “farmers’ market”. The standards for farmers’ markets have been identified and Certified by FARMA procedures. — Local partnerships and community support: In his book, “Farmers’ Markets: Success, Failure & Market Ecology” Garry Stephenson says “Good [farmers’] markets have a pleasant atmosphere, a diversity of high quality products and close and multifaceted links to their community through a loyal customer base.” Stroud and Taunton farmers’ markets enjoy the support of their local authority/town centre management. Consultation is frequent and both are engaged in enabling the farmers’ market to remain a focal point for the community. — Good signage, so that locals and tourists can find the farmers’ market easily. — Frequency of the market: Stroud farmers’ market and Taunton farmers’ market are examples where the decision to hold the market weekly has benefited the town, consumers and stallholders in equal measure.

6. Realising thePotential ofFarmers’Markets 6.1 Does local government support farmers’ markets eVectively? The response must be “mixed”, with some local authorities actively engaged and creating excellent farmers’ markets eg Waverley Borough Council and Chichester. Others are indiVerent or actively hostile. Some urban local authorities have pulled away from supporting farmers’ markets, due to understandable budget constraints and diYculty justifying support for the rural community. There is a need for better dialogue with local authorities so that the benefits of farmers’ markets can be better understood and, where practical, they are initiated and continued with local authority support.

6.2 Advantages and disadvantages of local authorities having power to operate markets Local authorities have a key role in integrating and engaging with the local community; where they support the farmers’ market there is a greater chance that it will succeed. However, much depends on personality and commitment. Managing a farmers’ market almost always requires weekend working. It requires an understanding that a farmers’ market changes with the seasons and with the ability of producers to come to market with things to sell. It is not a “one-stop, once and for all” process. Where local authority managers have enthusiasm for farmers’ markets, they are a very good influence. Where they are indiVerent, farmers’ markets fail or become more like general markets, with middle-men and imported products. Commitment to FARMA Certification can help local authorities to manage markets in that, through independent inspection, features that do not contribute to the overall health of the market can be dealt with. Certification also gives local authority managers a framework and confidence to deal with conflicts. Local authorities can have a strong enabling role for other farmers’ market operators where they do not manage the markets themselves. In many ways, handing over the reins to an expert and committed team outside the local authority can be liberating—such as in Stroud where the farmers’ market is managed by a private company, or in Taunton where it is managed by a co-operative of the producers.

6.3 Evidence of central government support, and could it be improved Central government support for farmers’ markets has been most welcome and valuable. Farmers’ markets have formed part of the strategy for the “reconnection of farmers and consumers” since the end of FMD. Nick Brown and Lord Whitty, in their terms as agriculture minister, have written to local authority chief executives to encourage support for establishing farmers’ markets. The current farmers’ market Certification programme was developed with the support of a DEFRA grant; this will be joined shortly by Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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a new Producer Verification scheme which has benefited from a DEFRA grant under the Agricultural Development Scheme. DEFRA was among the organisations that actively supported the merger of the National Association of Farmers’ Markets and the Farm Retail Association in 2003. Central government support is still critical to the farmers’ market movement, particularly through support of the standards that represent a true farmers’ market.

6.4 Could central government make use of farmers’ markets to achieve national goals eg social cohesion, health and regeneration? 6.4.1 Health and nutrition: Farmers’ markets (and farm shops) will participate in and support the new Change 4 Life initiative. Some farm shops are participating in the Healthy Start voucher scheme but no farmers’ markets are doing so (to our knowledge). In the USA, the “Women Infants & Children (WIC)” and “Seniors” federal programmes to encourage low-income families to eat more fresh produce involved farmers’ markets heavily. FARMA would welcome a discussion about linking Healthy Start with farmers’ markets in the UK. Direct sales from the producer enable people to buy food that is fresh, top quality and which has flavour. The short food chain from farm to consumer means that there is less time in transit, the food can be harvested when ripe and varieties can be grown for flavour, not for its ability to survive storage and transit. Such food deserves to be promoted by any means possible and FARMA would welcome suggestions for linkages in existing and future government programmes. 6.4.2 Social cohesion Moseley farmers’ market in Birmingham provides a good illustration of how farmers’ markets can be an instrument in improving communities and fostering social cohesion. The farmers’ market was established by Moseley Neighbourhood Forum (supported by Birmingham City Council) and is a social enterprise (Community Interest Company) with all proceeds from market stall fees ploughed back into community projects. The market itself is well-supported with some 50 stalls each month. Kings Norton, also in Birmingham, operates on similar principles. 6.4.3 Regeneration As has been established, farmers’ markets need the support of large elements of their community if they are to succeed. Brigg, Lincolnshire and Stroud, Gloucestershire have been cited as examples where this has happened and benefited uderused town centres. However, we would urge caution in considering that farmers’ markets will always succeed in diYcult social and economic situations.

7. Planning andLicensingIssues 7.1 Do local and national planning regulations support or hinder the development of farmers’ markets? The restriction on temporary events has been referred to earlier; it is a barrier to the development of weekly or more frequent farmers’ markets. Restrictions on signage likewise have been discussed earlier. There are good examples internationally of local and national regulations that support farmers’ markets and their development. In California, USA, certification of farmers’ markets and verification of producers through a state-wide programme backed by legislation has led to high levels of consumer trust in Certified farmers’ markets and promoted the rapid development of farmers’ markets. Compared to the UK, California has double the number of farmers’ markets per head of population. In Italy, the Ministry for Agricultural, Food & Forestry Policies issued a decree in 2007 to control and define markets reserved for direct selling by farmers, with licensing of towns to create a network of 400–500 farmers’ markets by 2010.

7.2 Do Licensing Regulations support or hinder the development of farmers’ markets? The problems created by the introduction of new licensing laws in November 2005 have been discussed earlier. Their impact has been disproportionate on farmers’ markets and other small businesses where alcohol sales form a small part of their activity.

APPENDIX Government Policy Support and Other Policy Support for markets/farmers’ markets (not printed) Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Memorandum by Local Authority National VAT Consultative Committee (MARKETS 28) By Ian Harris, VAT & Taxation Advice OYcer, Leicester City Council I refer to the Committee’s current enquiry into traditional retail markets and, in particular, the question of what can be done to ensure their survival, something which, I believe from the evidence so far, is agreed to be desirable. It seems generally agreed by respondents to date that one of the key factors in ensuring the flourishing and survival of traditional retail markets is the need for local authority market operators to invest in their market facilities. The point of this response is to draw the attention of the Committee to a major constraint in VAT law, as interpreted and applied by HMRC to local authorities, that acts as an eVective barrier to such investment. I am the VAT and Taxation Advice OYcer at Leicester City Council—which, incidentally, runs one of the largest markets in the UK—but also a member of the CIPFA VAT Committee, a high level body by which senior local authority VAT practitioners meet quarterly with senior staV from Policy HQ Division of HMRC. For completeness, I am also chair of the Midlands Unitary Authorities VAT and Tax Group and the Leicestershire Local Authorities VAT Group, being thereby a member of the Local Authority National VAT Consultative Group and, ex-oYcio, of both the Central Counties VAT Liaison Group and the West Midlands Local Authority VAT Group. I would, therefore, claim to bring considerable expertise and experience to this subject in the widest national context. The attached paper, completed after some two years of research, was submitted by me to HMRC under the auspices of the CIPFA VAT Committee in September 2007. The paper considers the eVective barrier to investment in detail, including a possible resolution thereto. For simplicity, however, the position may be summarised as follows. The issue concerns the ability of a local authority to fully recover VAT on expenditure incurred in connection with the operation of its market, both on day-to-day running costs and, more pertinently, on capital investment costs. A local authority is permitted to recover, from HMRC, VAT incurred on expenditure in the following three circumstances: 1. where it is incurred in connection with the making of VATable supplies of goods or services—this is the “normal” VAT position familiar in the private sector; 2. where it is incurred in connection with the carrying out by a local authority of its statutory public service functions other than by way of business—this is further to a political commitment made by the Government on the introduction of VAT that it would not fall as a burden on the Rates (sic); and 3. where it is incurred in connection with the making of supplies of goods or services which are exempt from VAT (“VAT-exempt” supplies), providing such “exempt-attributable VAT” incurred is “insignificant”—HMRC interpret this to mean: — less than £7,500 per annum, providing this is less than half of all the VAT incurred by the local authority, or — less than 5% of all the VAT incurred by the local authority, whichever is the greater. These latter limits, however, are de-minimis limits resulting in eVective “cliV edge” impact where breached; where exempt-attributable VAT incurred by the authority remains below the limit it continues to be fully recoverable but if exempt-attributable VAT incurred by the authority exceeds the limit, all exempt- attributable VAT incurred thereby is then irrecoverable. For most local authorities to breach the de-minimis limit is prohibitive in terms of the consequent cost of irrecoverable VAT which would then arise. Consequently all local authorities invest considerable time and eVort in managing the position, in particular closely monitoring expenditure—especially capital expenditure —to be incurred in connection with the making of VAT-exempt supplies in order to ensure exempt-attributable VAT remains below the de-minimis limit. And there are examples of local authorities choosing not to pursue desirable projects as the result would be to breach their de-minimis limit. In the context of markets, the problem arises because HMRC view the granting of a right to stand a stall in a market as amounting to a licence to occupy land and, as such, exempt from VAT. Accordingly, all VAT incurred by a local authority in connection with its market is exempt-attributable and so counts against its de-minimis limit. Whilst VAT on day-to-day running costs of a local authority market are generally containable, it is less likely that VAT on significant capital investment costs at a market can be contained within the authority’s de-minimis limit. As a consequence, local authorities have been forced to downgrade, defer over a longer timescale or even cancel altogether desired capital investment works designed to improve their markets in order to ensure that the de-minimis limit is not breached (the attached paper gives examples at Leicester and Northampton). Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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HMRC’s response to this is that the local authority can exercise what is called an option to tax on its market. This “converts” the erstwhile VAT-exempt licence to occupy land into a VATable supply. Consequently, VAT then incurred on the market—including on capital investment—is fully recoverable as relating to the making of VATable supplies.

However, opting to tax a market also results in market stall tolls then becoming liable to VAT. Evidence suggests that only a minority of market traders are registered for VAT and thus charging VAT on their stall tolls amounts to an increased cost likely to drive the trader to relocate to an alternative unopted (and so unimproved) market if not to cease trading altogether. Alternatively,if tolls are “pegged”, the local authority loses that proportion of income from stall tolls declarable as VAT, currently approximately 13% (15/115ths) which is equally undesirable if indeed financially viable at all.

Whilst some local authorities have opted their markets as a consequence of desired on unavoidable improvement works being undertaken and the absence of any alternative mitigation strategy, this has invariably been done on the insistence of the finance function and against the opposition of the market manager.

The solution identified in the attached paper relies on the fact that a local authority undertaking its statutory public service functions other than by way of business may fully recover all associated VAT incurred.

To be treated as a non-business activity in this context, it is established case-law—including under the jurisprudence of the ECJ—that three criteria must be met:

1. The activity must be undertaken by a body governed by public law (a “public body”)—this is taken as read for a local authority.

2. The activity must be subject to a special legal regime, ie it must be governed by specific statutory or regulatory powers applicable to a public body but which would not apply to a private sector entity seeking to undertake that activity.

3. Treatment as non-business must not lead to a significant distortion of competition with the private sector undertaking comparable activities.

It is submitted in the attached paper that there is a clear special legal regime governing the operation of a market by a local authority. Even if Charters and historic local Acts of Parliament are not accepted to constitute such—and this is arguable—most, if not all, local authority markets are now run under Part III of the Food Act 1984. This refers explicitly to the “market authority”, defined in Section 61 to mean any local authority which maintains a market established or acquired under Section 50 or the corresponding provisions of any earlier enactment (eg Section 13 of the Markets and Fairs Clauses Act 1847 or Section 49 of the Food and Drugs Act 1955). And, for the avoidance of doubt, “local authority” is further defined as meaning a district council (including a metropolitan borough or non-metropolitan unitary district council), London borough council or parish or community council.

It appears clear to the author, therefore (and to most other local authority VAT practitioners), that local authority markets are subject to a special legal regime.

As to the question of significant distortion of competition, as other respondents have stated in evidence already, there is much to suggest that markets are in fact complementary to other parts of the retail sector and not in competition therewith.

Certainly in the narrower context of competition for the provision of facilities to trade, it is argued that there cannot possibly be said to be competition between a market trader seeking to stand a market stall and a shopkeeper seeking the lease of a shop unit.

These submissions put, however, were rejected by HMRC last year. It is the view of most local authority VAT practitioners, however, that HMRC’s rejection of the arguments were and are ill-founded and susceptible to challenge. To date, no such challenge has been pursued due to other developments in the local authority VAT field; it is though possible that this situation may be about to change with a number of authorities desirous either of instigating significant capital investment on their markets or securing a retrospective refund of VAT declared on opted markets contemplating litigation.

The purpose of this submission, therefore, is to apprise the Committee of an eVective barrier to much desired investment in local authority markets arising as a result of HMRC’s interpretation of VAT law, a interpretation which is nonetheless open to question but which, it seems, will require litigation to resolve. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Memorandum by Market Place [Europe] Ltd (MARKETS 29) In response to the specific questions contained in the email dated 9 January 2009 from Mr A D GriYths, 2nd Clerk to the Committee, Market Place [Europe] Ltd. wish to put forward the following views and opinions:

TraditionalMarketsToday 1. How has the picture changed over the past 10 years? Generally markets are in decline although there are some exceptions which prove the rule. The rate of decline is detailed in the Rhodes Report. However, in periods of recession, markets have generally fared better than other sectors of the retail industry.

2. Are the number and types of markets in decline? If so, why? The numbers are in decline but there is an increase in specialist, niche markets. There are too many reasons for the decline to list in this response but out of town shopping and the increase in the number of bargain shops have been important contributory factors. Markets have found it diYcult to respond to changing retail pressures over the last 20 years.

3. Are there obstacles preventing the creation of more markets? No—except in London where the London Corporation Act prevents LA’s from generating a profit from their street “markets”. It is therefore not viable for the street “market” operator in London, invariably the L A, to engage dynamic, innovative management which could invest in and improve the “market”. At this point we feel it important that the Committee fully appreciate the diVerence between the vast majority of markets operated throughout the country and those operated in London. Elsewhere in the country markets are created by several methods, primarily being by Royal Charter, Prescriptive Rights or by Statute—the latest being the 1984 Food Act. The operator is permitted to apply realistic commercial charges to the traders and such profit generated can be re-invested in the market or used to provide other benefits for the local community. In London, the street “markets” are not strictly markets in the legal sense of the word. They consist of a number of individual Licenced Street Traders [licensed under the London Corporation Act] who all congregate together at the same time and place to give the outward appearance of a market to all intents and purposes. The crucial diVerence here is that the L A can only recoup certain basic operational costs and cannot derive a profit from the operation of the “market”. As such London L A’s often regard their “market” as a necessary nuisance which they would rather not have to deal with and accordingly allocate the minimum resources—often of indiVerent quality—to manage and develop the “market”. A change in the legislation allowing London L A’s to generate a profit from their street “markets” would directly lead to greatly improved operational management and make investment on the infrastructure of such “markets” a more realistic probability.

4. Are there obstacles hindering the successful business of existing market operators and traders? No—other than the confines of the London Corporation Act referred to above.

5. What has been the impact of specialist markets eg continental and farmers markets, and do such markets integrate successfully with older markets? The Rhodes report states that where occasional specialist markets exist within a town or city the rate of decline of the traditional market is far less and in some cases negligible, as opposed to those towns and cities which do not have such specialist markets. However, due to the temporary nature of such markets where the stalls are erected and dismantled each day they do not easily fit into traditional markets where the stalls are of a permanently erected nature.

Social andEconomicEffects 6. What social and economic eVects do traditional retail markets have on their local communities? The social and economic eVects of markets are enormous but sadly mostly unquantifiable. Attempts have been made, mainly by L A’s, in the past to create benchmarks to quantify such benefits but all to no avail. Estimates as to the national economic benefit vary from £1.1 billion to over £3 billion per annum—thereby highlighting the diYculty in quantifying such benefits. As regards continental markets operated by MPEL we can accurately demonstrate that the four day market held in SheYeld City centre attracts an additional 100,000 persons to the market site each event. Of greater impact to a City is that of Belfast where the 29 day Christmas market operated by MPEL is now a major factor in the economic vitality of the city. The 2006 Events Evaluation Report [the latest available report] conducted by Messrs. Millward Brown, Ulster, commissioned by Belfast City Council, Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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states that the event attracted some 250,000 visitors over the 29 days and that “. . . the level of spending associated with the event is estimated at over £15.2 million.” and that “. . . additional expenditure . . . from visitors who would not have come to Belfast if the event had not been staged is estimated at £2.7 million.”

7. What qualities contribute to a successful market delivering social and economic benefits, and are there examples of best practice that have a wider application? The main qualities are good management, vision, promotion and eVective partnership working, As a generalisation, we find that such elements are often missing in the vast majority of markets. There are of course a number of notable exceptions, but overall the standard of market management, both in the public and private sector, throughout the UK is not of the highest standard.

Realising thePotential ofTraditionalMarkets

8. Does Local Government support markets eVectively? Varies greatly throughout the country with some having a great deal of involvement whilst others all but ignore them. It is clear that where an L A does support the market it is a better market for it and sometimes has strategies and development plans which help the wider local community as well as the market itself.

9. What are the advantages and disadvantages of local authorities having power to operate markets? A clear distinction has to be made between the overall provision of markets and the physical operation of markets.

There must be some mechanism to regulate the number, operational days and location of markets to prevent a free for all with markets springing up all over the place—often in wholly unsuitable locations. We feel that local authorities are the best means of providing such overall control.

As regards their physical operation we feel that the constraints of the democratic process placed upon local authorities often hinder the implementation of dynamic, innovative and forward thinking management. On a local level, political realities often dictate that capital investment by the L A on the L A market is diYcult, and often impossible, to obtain on an ongoing basis and that profits derived from the market are not re-invested in the market but go to other services/functions within the authority. We believe that a case therefore exists for local authority markets to be outsourced to the private sector or to an arms length company—a good example of such being the markets at Glasgow.

10. Does central government support markets eVectively? If not, what additional support should be provided? Central Government has recently shown some support through PPG 6 although the benefits of this have not yet been evident. Throughout the industry it is felt that markets do not have a high priority on the Governments’ agenda.

A good alternative model is that employed in Holland. There, a civil servant in their equivalent of the D.T.I, has special responsibility for markets and, following consultation processes with the main players and organisations within their market industry, reports to their equivalent of the Communities and local Government Select Committee. As a result, Holland now has a well administered, progressive and thriving market industry.

Another example is in the municipal market at Barcelona. However, the restrictive legislation which virtually forces supermarkets to be located at first floor level of a market hall, makes this option an unattainable model at present.

11. Could central government make better use of markets to achieve national goals, particularly with regard to social adhesion, health and regeneration? Yes. Either through the adoption of the Dutch model or by the implementation of national performance indicators for markets—currently there are no such indicators. Although NABMA, the L A Market Association, have tried to formulate such indicators in the past it has been unable to achieve any meaningful degree of co-operation from even their own fellow L A members, and absolutely no co-operation from the private sector. We feel that the only way forward on this issue is for central government to impose a mandatory set of key performance indicators for all markets. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Planning and Licensing Issues 12. Do local and national planning regulations support or hinder the development of markets? We see no major problems in the current regulations.

13. Do licensing regulations support or hinder the development of markets? We strongly feel that Street Trading licences and the accompanying legislation severely hinder the development of markets situated on highways—especially those in London referred to earlier in this submission. MPEL carried out a markets consultancy last year for the London Borough of Hackney [the location of the first site visit for the Committee] and it is clear that the licensing restrictions have a very significant negative eVect upon the market. We are currently conducting a markets consultancy for the London Borough of Lewisham and it is evident that similar diYculties arising from the licensing regulations are having an equally negative eVect there.

14. What improvements could be made to the planning and licensing regimes to aid the development of markets? Legally constituted markets throughout the UK have no requirement for and should not be subject to licensing arrangements. Licensing legislation, throughout the whole of the UK, including London, should be revised to allow the L A issuing the street trading licence to charge a realistic commercial charge for so doing. In addition to the above responses to the specific questions raised we would like to put forward certain of our considered proposals in respect of the provision and development of markets throughout the UK the following views.

1. Cost/benefits of market locations In order for markets to flourish we believe that, amongst other things, they need to be located in prime locations within a town or city. However, exclusive occupation of prime space with permanently erected stalls with a market operating two or three days a week cannot be financially viable or sustainable. The solution is to have flexible markets with modern demountable stalls—erected/dismantled on a daily basis— whereby the market can be sited on either temporarily unused space or on the High Street and can change shape, size and location as required. At present too many markets are situated in edge of town locations with permanently erected stalls which prohibit alternative uses of such space on non market days. We feel that such markets are inevitably unsustainable and need to be replaced sooner rather than later.

2. EVects of the current economic crisis In times of recession, markets, with their low overheads should fare better in comparison to other forms of retailing on the High Street. Although there are some exceptions—notably Bury and Burnley markets where trader induction courses are held for prospective traders— it seems that few markets are taking advantage of the present diYculties. Although no hard evidence exists to support it, we perceive that in the current recession the sales of the food oVer on most markets is holding firm but that of non- foods is experiencing hardship.

3. Public perception and Image Traditional Retail markets suVer from a very poor image and have little or no “street credibility” with the younger generation. The stereotypical market shopper is 45 years plus and socio-economic groups C2, D and E. We feel that such a profile renders the future of market shopping somewhat questionable. We strongly feel that standards in markets infrastructure and market management, both in the private and public sector, need improving and that traders need to be better educated in areas of customer satisfaction issues, presentation of goods and that general personal appearances and practices need to become far more professional. We also find that whilst most traditional markets around the UK are in decline, the specialist, niche markets such as continental markets, farmers markets, craft markets etc are thriving. We feel that this arises out of often better locations for these markets, stronger management and a higher class of goods being sold than on the traditional market. We feel that for traditional markets the adoption of the Dutch method of trading and the setting of mandatory key performance indicators by the central government, together with management mentoring such as that oVered by MPEL, would assist in improving the shortcomings on the traditional markets. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Memorandum by the Local Government Association (MARKETS 30) The Local Government Association discussed the select committee inquiry into traditional retail markets with a cross section of local authorities across the country. Some councils have strong opinions on how markets operate and contribute to the local community, and others do not. This reflects the variance in local economic sectors that the LGA has pointed to in its recent publication From recession to Recovery: the local dimension.

TraditionalRetailMarketsToday 1. The type, strength and picture of traditional retail markets in England vary considerably from area to area. Some areas have reported a decline in specialist markets in the last few years while others have seen a rise in the number of regular specialist markets operating within their areas. 2. Generalising a picture that fits across the whole of England is not helpful in the context of this inquiry as local realities depend entirely on the location, environment and demographics of the functional economic area. There is significant variance within regions. 3. For example while Bournemouth have reported a decline in the level of traditional street market and specialist market activity in their area, Westminster City Council have reported a stabilising of their traditional street market trade over the last 10 years after a period of decline earlier. Westminster also reports an increase in demand and provision of specialist, leisure and farmers markets.

Economic andSocialImpact 4. Again the economic, social and environmental impact of retail markets will vary significantly from region to region. Some councils, for example Chelmsford who have also submitted evidence to the committee, use street trading as a vehicle to promote community cohesion and social inclusion. Their town centre management team works at leveraging opportunities for community groups in street trading. 5. Markets in other areas can and do make positive environmental contributions by providing produce with reduced packaging/ waste, providing easy access to local and organic produce and reducing the need for customer travel further a field. 6. In the current economic environment markets may grow in importance to local economies as source of local employment and business start-up opportunities. 7. Equally the economic downturn could see an upsurge in problem traders, consumer scams and counterfeit goods flooding in through markets. Local trading standards services are best placed to deal with this issue should it prove a problem.

Potential ofTraditionalRetailMarkets 8. Local government is best placed to operate markets in their community because they are able to integrate its management into the wider physical, economic and social development strategies of the local area.

LicensingIssues 9. The LGA has been lobbied by some of its membership to address the issue of illegal street trading and in some case the issue of pedlars certificates being wrongly used or providing an excuse for illegal street traders. — Street trading is subject to statutory controls, which allow local authorities to designate streets within their area that will be subject to such controls. — The 1871 and 1881 Pedlars Acts established rules for pedlars, who would traditionally go door-to- door selling their wares or skills. Today holders of pedlar’s certificates (which are available for a small charge from a local police station) are exempt from controls and may trade wherever they choose. — Whether an individual is operating within the terms of a pedlar’s certificate is a question of fact which can only be ascertained through protracted observation, either by CCTV or enforcement oYcers, which is extremely resource intensive. — It hard to stop pedlars selling faulty or unsafe products, while consumers have little chance of getting their money back for substandard goods. Their products are often poor in quality and even dangerous. Some councils have reported that they can operate in groups, and may in some cases be linked to local criminal gangs, obstructing passers by and using intimidating and threatening behaviour. — A LGA was conducted last year to assess the scale of the problem. Of those that responded, 90% of local authorities said pedlars were a problem. The vast majority of councils supported new national legislation. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Manchester City Council Example In the summer of 2006 acute problems were experienced in Manchester City Centre with large groups of individuals trading, most claiming to benefit from a pedlar’s certificate. Groups of up to 20 individuals were often found selling goods such as balloons, flags, whistles etc from large, wheeled stalls. Their presence not only caused obstructions to pedestrians and projected a negative image of the area, but also resulted in complaints from legitimate street traders in the area who are subject to strict control by the City Council via conditions on their licence. Enforcement exercises were undertaken involving licensing oYcers, trading standards, CCTV and GMP. Whilst this exercise had some limited, short term, success it was extremely labour intensive, and not sustainable in the long term. Manchester City Council introduced a Private Bill to Parliament to try to address this issue for their local area. One of the main powers sought by the Bill is to remove the “pedlar’s exemption” on regulated streets, which would negate the need for oYcers to spend long periods on surveillance in order to obtain the necessary evidence to take the matter to Court. Other powers such as seizure and forfeiture of goods, as well as the power for oYcers to issue fixed penalty notices were also included in the bill which passed its second reading in October 2008. 10. Currently six councils have private bills before parliament promoting a similar change to legislation in their areas. These bills are Canterbury City Council Bill, Bournemouth Borough Council Bill, Manchester City Council Bill, Reading Borough Council Bill, Leeds City Council Bill and Nottingham City Council Bill. 11. Similar legislation has been successfully promoted in recent years in respect of London, Leicester, Liverpool, Newcastle upon Tyne, Medway, and Maidstone. 12. The LGA believes that the government should look into new national legislation to give councils in all areas the power to regulate pedlars and /or illegal street traders properly, rather than relying on councils promoting numerous local bills (as is occurring at the moment). 13. The Department for Business, Enterprise and Regulatory Reform conducted research into the issue of illegal street trading last year. We are awaiting the findings of their report and believe that the committee should take the BERR report into consideration during the course of the inquiry.

Memorandum by the Communities and Local Government and the Department for Environment, Food and Rural AVairs (MARKETS 31) Introduction 1. The Government recognises the valuable contribution that street, covered and farmers’ markets can make to local choice and diversity in shopping, as well as to the vitality of town centres and the wider rural economy. These markets complement high street shopping and our policy is that local authorities should retain and enhance existing markets, or reintroduce or create new ones, and invest in their improvement. 2. Our concern is to ensure that local authorities consider their markets as part of their retail needs, ensure a diverse retail oVer and that, where appropriate, consider the need for new markets. But markets need to adapt to changing conditions and challenges. 3. The All Party Parliamentary Group on Markets launched its Markets Policy Framework, in June 2007. This highlights the role markets can play in contributing to a number of important issues. In particular it highlighted the key priorities for the market industry covering: — regeneration and the economy; — food and health; — culture and tourism; — community cohesion; and — the Environment. 4. These priorities will be developed into detailed policy statements over the coming months, oVering advice and guidance at the local level.

TraditionalRetailMarketsToday 5. There are a wide variety of challenges faced by markets today,arising both from competition and, more recently, from the economic downturn. However, these challenges are not fundamentally diVerent to those facing other small retailers. For example, there is competition from major supermarkets and the need for regeneration of old style shopping arcades, which is, in turn, dependent on landlords. There is also increasing competition from the internet. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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6. Although many market operators across the country undertake local surveys into the sector, there has been very little research carried out nationally to measure the cumulative value of a market. Perhaps the broadest recent research on the market sector is the First National Retail Markets Survey (the Rhodes Study), published in 2005, which take account of a range of factors including numbers of markets, localities, type, occupancy rates, trader ethnicity, employment, visits and turnover. 7. Amongst other things, the study revealed that there were over 1,150 markets operating in the UK in 2005, with 150,000 stalls per week generating £1.1 billion in sales. However, the report also indicated that occupancy rates were around 75% and falling. 8. Competition from the high street and larger retailers, allied to the growth in internet retailing, has provided a challenge to traditional markets. However, there is evidence to support the view that the number of people wanting to become traders is also falling. 9. The Government is supportive of the role of retail markets and has pursued policies to ease the creation of new markets. For example, local authorities have been asked to seek to retain existing markets, or to recreate or introduce new ones, and to invest to ensure their markets remain attractive and competitive. 10. The Government has also supported the business-led Under-Served Markets Initiative, which aimed to promote retail investment in deprived areas in England to stimulate regeneration. New retail investment can act as a catalyst to attract further investment, and provide increased access to products and services, and provide employment and training opportunities for local people. 11. The project identified four pilot areas—Bradford, Lewisham, Oldham, and Waltham Forest—to test a model for promoting private sector investment in deprived areas. The pilot phase of the initiative ended in March 2007. The first pilot store, a Tesco regeneration store, opened in Failsworth, Oldham in July 2007, and created 390 jobs, of which 75 went to local, long-term unemployed and socially disadvantaged groups. 12. Positive outcomes from this first pilot include a good practice guide and Government looks forward to a full evaluation of the impact of the scheme and an assessment of its overall impact on the local community.

Farmers’Markets 13. The Government recognises that farmers’ markets can bring benefits for both producers and consumers. By selling direct to consumers, producers can get the full consumer price, save on packaging and transport costs and get instant feedback about their product from their customers. Equally, this direct contact enables consumers to find out exactly how the product they are buying has been produced and discuss their needs with the producer. It is also an excellent way for consumers to show their support for local food producers. 14. There can be benefits for the wider community too in the form of revitalised urban centres, employment opportunities, increased customer potential for adjacent retailers and opportunities to encourage farm diversification. They have been shown to help bring life back into town centres and stimulate trade in surrounding shops on days when they are held. They can also play a part in reinstating individuality to the local area, fostering a traditional “market town” atmosphere. 15. The UK’s first farmers’ market took place in Bath in September 1997. Government involved at this early stage in working with a range of organisations to help establish the concept. The then Ministry of Agriculture, Food and Fisheries worked with the Farm Retail Association (FRA) and then helped with the formation of the National Association of Farmers’ Markets (NAFM) to represent the sector. Subsequently, in 2003, Defra helped to facilitate the merger of FRA and NAFM into the National Farmers’ Retail and Markets Association (FARMA). 16. Following on from this the Government has provided funding, at both a national and regional level, under various grant schemes to help establish and raise awareness of farmers’ markets. For example, in 2003 £100,000 was awarded to the National Association of Farmers’ Markets (NAFM) to raise the profile of farmers’ markets across England and to increase public awareness of them. NAFM also received funding from Defra under the Agriculture Development Scheme for the publication of information booklets and to help producers develop their knowledge of sales and marketing. The funding also helped NAFM develop its certification programme for accrediting farmers’ markets. Over £600,000 of the old England Rural Development Programme funding was awarded to projects related to the establishment of or support for farmers’ markets. 17. In addition, Government has encouraged farmers’ markets by stressing to local authorities the benefits to the rural economy and to town centres which such markets can bring. Following on from the recommendations in the Curry Commission report, Lord Whitty wrote to all local authorities in November 2002 outlining the benefits farmers’ markets bring and the role they play in bringing urban and rural communities together. Prior to this, we sponsored the Local Government Association Guide on Farmers’ Markets, Developing good practice for sustainable farmers’ markets—a practical guide for local authorities. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Farmers’Markets and Traditional Markets 18. We recognise that, in a few areas, there have been tensions between supporters of farmers’ markets and existing charter markets, with the former arguing, for example, that the existence of charter markets has prevented the establishment of a farmers’ market in a particular town. The responsibility for applying charter market rights lies with local authorities, but there is no reason why farmers’ markets and charter markets cannot co-exist happily. 19. The National Association of British Market Authorities (NABMA) which represents charter market operators works closely with the National Farmers’ Retail and Markets Association (FARMA). Defra oYcials meet regularly with representatives from FARMA to explore how we can work together on our common goals of reconnecting farmers to their markets and helping them to add value. FARMA have also presented to Defra’s Regional Food Cross-Cutting Group which includes representatives from all the Regional Development Agencies.

Markets and Regeneration 20. The Government’s key objective for town centres is to promote their vitality and viability by planning for growth and development in such centres. We believe that street and covered markets (including farmers’ markets) can make a valuable contribution to local choice and diversity in shopping as well as the vitality of town centres and to the rural economy. The Government recognises that eVorts to secure the survival of street markets can lead to regeneration of the wider area. 21. Making Assets Work: The Quirk Review of community management and the ownership of public assets, examined barriers to the transfer of management and ownership of public assets to management groups. 22. There are examples of positive action by community focused groups, for example, at Heywood Magic, Rochdale. There, traders, threatened with closure of their market, set up a committee to take over its management. Of the several proposals put to the Council for redevelopment, the successful approach put forward a case for wider benefit to the community. 23. This set up the MAGIC (The Market Action Group in the Community) trust which developed a business plan that enabled the market to run profitably and identified a need for community activity and training. Since the trust took over management of the market, it has been highly successful: trader occupancy was 100% and the training facility fully occupied, with community grant awards made annually by the MAGIC Board out of the profits. 24. More specifically, farmers’ markets, also support the local community and economy. They are often used to showcase local and regional produce and can inject money into rural economies and help boost the development of small businesses. 25. A National Farmers’ Union study found that 80% of neighbouring businesses saw a boost in trade following the establishment of a market nearby. For example, WH Smith and Debenhams in Winchester, which are both adjacent to the local farmers’ market site, reported a rise in takings of up to 30% on market days. 26. In addition, markets can oVer social benefits, such as improved community spirit and pride in local producers, reconnecting consumers with producers as well as to build social capital. Evidence from the US suggests that farmers’ markets can act as business incubators, with companies that started oV in farmers’ markets growing into large businesses (eg Starbucks).

Local Authority Markets 27. Many markets have been in existence for centuries, originally set up to sell animals, but now sell a wide range of goods, from fruit and vegetables, meat and other food, clothing and household goods. Many markets, including charter markets, are managed by local authorities and today, there are around 1,400 in this group. Other markets are privately run and governed by local authority bye-laws. We have no reason to think the standards of governance for diVerent types of market are fundamentally diVerent. 28. The oldest markets were those established under Royal charter, for example at Kingston-Upon- Thames. Statutory markets carry the benefit of a common law right to protection from rival markets within a radius of six and two-thirds miles, to ensure they are as successful as possible. 29. Like farmers’ markets, markets run by local authorities have a key role to play in supporting communities. They also have a contribution to make to encouraging good environmental practice. For example, market traders are encouraged to sell goods with minimum packaging, and loose wherever possible. In doing this, they can provide healthy local food at aVordable prices and may help connect people more directly with the producers.

Markets and Better Town Centres 30. Government has a strong policy on markets. Whilst markets require planning permission, they also benefit from some permitted development rights enabling them to take place for limited periods (up to 14 days) in any calendar year without planning permission and our planning policy goes further in recognising their value. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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31. As stated above, the Government recognises the valuable contribution to local choice and diversity in shopping that markets provide. We also acknowledge their contribution to town centre vitality and the rural economy and therefore require local authorities, as an integral part of the vision for their town centres, to seek to retain and enhance existing markets and, where appropriate, re-introduce or create new ones. 32. It is important that local authorities look to ensure that their markets remain attractive and competitive by investing in their improvement. It is in the interests the Government’s wider policies on supporting communities and promoting cohesion and regeneration, and of local authorities and the communities they serve, to support the development of clean, safe and vibrant town centres, throughout the day and into night. 33. Government has therefore encouraged local authorities to manage their town centres in a positive and pro-active way, working in partnership with the private sector and with local communities. For example, we have: — published guidance on how to manage town centres and how to develop business-led town centre partnerships. Over 500 town centres now benefit from some form of management; — introduced Business Improvement Districts (BIDs)—allowing local business/public sector partnerships to use funds raised from the business rate to improve the local trading environment. 71 BIDs have been established since 2004; and provided guidance through Planning Policy Statements on economic development and planning— for town centres. 34. We know that town centres are facing particular challenges in the face of the downturn, eg with an increase in vacant properties. The tools and approaches we have developed should help, and we are considering what further help we might provide to assist town centres in dealing with these issues. 35. Our focus remains on town centre development and the Government is absolutely committed to the town-centre first policy and promoting the vitality and viability of town centres is a key objective. 36. Successful town centres need investment and a strong retail mix—that includes multiples and independents, niche retailers, large and small, which attract shoppers and provide consumer choice. Markets are part of that mix. Retailers face greater challenges than ever, from global competition, the internet, and the recession so there is no room for complacency.That is why we need to refine and enhance the eVectiveness of our policy. 37. The draft policy revisions to Planning Policy Statement 6, published in July 2008, recognised the importance of achieving a broad range of retailer representation, both small and large, in improving the attractiveness of town centres and promoting competition and consumer choice. 38. Local authorities should develop a vision, in partnership with businesses and the community, for how they want their area to develop. This vision should be reflected in their development plan, which forms the basis for their decisions on individual planning applications. Applications are then refused or permitted primarily in terms of whether they accord with the policies in their plan, alongside other relevant material considerations. 39. Although a local authority’s planning policies cannot necessarily be based on protecting any specific commercial interests, they can aim to protect the vitality and viability of a town centre as a whole, and to ensure that a mix of uses is maintained, in order to meet the needs of the community and promote consumer choice. 40. We are encouraging local authorities to adopt a proactive positive planning approach to their centres and maintaining a diverse and competitive economy. Through flexible town centre strategies local authorities can encourage new retail and other opportunities such as markets. Communities and Local Government & Department for the Environment, Food and Rural AVairs

Supplementary memorandum by Communities and Local Government (MARKETS 31A) Further to the hearing on Monday 20 April 2009, I promised to respond to the Committee’s follow up questions in the areas listed below. As I said at the hearing, I welcome the Select Committee’s inquiry into retail markets. Markets can oVer a distinctive part of a town centre strategy for local areas, and I would be keen to see what improvements the Select Committee recommends following their inquiry. In respect of follow up points, the Committee was keen to understand whether and how Government departments liaise with London Local Authorities on the London Local Authorities Act 1990 legislation. The position is that Government OYce for London liaises with London Councils—the umbrella body for London Boroughs—about their emerging local legislative proposals to ensure that they are engaged with the relevant policy teams in Whitehall. It is a matter for individual departments to consider how its specific Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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policy is working in practice; for example, it is the responsibility of the Department for Business, Enterprise and Regulatory Reform to liaise with Government OYce for London and other Government OYces in the regions about street trading. I mentioned at the hearing that I was planning to meet with London Councils later that week to discuss a range of matters. Unfortunately due to diary commitments, I was unable to meet with London Councils but will be rescheduling the meeting shortly. Following the Select Committee hearing last week, the Chief Executive of the National Association of British Market Authorities (NAMBA) has written to me with a request to meet to discuss how markets link up with local and national initiatives and the role of markets in revised planning guidance. In his letter, the Chief Executive has suggested that the Retail Markets Alliance would be keen to join any such discussions. I am keen to take up the oVer of a meeting, and I have arranged to meet with NAMBA on 13 May. Secondly, the Committee wanted further clarification on whether the good practice toolkit that CLG provided to local authorities in October 2008 mentions markets. The guide on “managing town centre partnerships” does make reference to markets, although these are given as examples of the types of activities town centre partnerships might encourage. This is in keeping with the message I hoped to convey to the Committee, namely that the role of markets should be considered by iocal authorities as part of the wider vision and strategy councils wish to see for their town centres. It should be noted that this document is intended to provide step-by-step guidance on setting up and managing town centre partnerships, rather than provide detailed advice on the various issues and opportunities that town centre partnerships deal with. The document on “Looking after our Town Centres”, published on 14 April 2009, provides more detailed information on partnership working and includes a specific sub-section on Farmer Markets. I attach a copy of the report for the Committee’s information. Thirdly,the Committee wanted further clarification on the timeline of the “detailed policy statements over the coming months, oVering advice and guidance at the local level”. As set out in my written evidence, the detailed policy statements were produced by the Markets Industry Forum and will support the work of the All Party Parliamentary Markets Group (APPMG). Paragraph 4 of the written evidence was a continuation of the previous statement (paragraph 3) and was directly referring to the work of the Markets Industry Forum, rather than activities of the department. I sincerely apologise if I didn’t make this clear in my written submission or in my oral evidence to the Committee; it was not my intention to mislead the Committee. I will, however, look at the detailed policy statements when produced by the Forum and consider whether they can be used as the basis for best practice guidance issued to local authorities. I understand from oYcials that the Markets Industry Forum that will be producing a Policy Framework document highlighting how markets connect with these policies, which is scheduled to be complete in the autumn of 2009 when it will be presented to a meeting of the APPMG. We recognise the valuable contribution that street, covered and farmers’ markets make to the vitality of town centres and the wider rural economy and will be interested in the outcome of the report presented to the APPMG. In terms of Government policy on planning guidance, in line with our commitment in the 2007 Planning White Paper and Killian Pretty Review we are undertaking a review of national planning policy to ensure we communicate policies better and produce a framework that is focussed on the needs of the user. We are anxious to provide local authorities with the flexibility and autonomy to determine local policies that are distinct to their area and consistent with local people’s ambition for their areas. We are keen to make planning guidance less prescriptive and better co-ordinated. That is why, as I mentioned at the hearing, we have decided to bring together the planning policy statements covering economic development topics into a single new PPS on Planning for Prosperous Economies. This new PPS will incorporate draft PPS 4: Planning for Sustainable Economic Development, PPG 5: Simplified Planning Zones, PPS 6: Planning for Town Centres and the economic development policies in PPS 7: Sustainable Development in Rural Areas. We will shortly consult on a draft of this new PPS. This will create a coherent and modern set of policies designed to meet the economic challenges we face both now and over the longer term. I hope this letter clarifies the points raised by the Committee. I look forward to receiving the Committee’s recommendations from/s inquiry. Iain Wright MP Parliamentary Under Secretary of State 30 April 2009

Memorandum submitted by Marion H Gettleson (MARKETS 32) SelectCommitteeHearing onTraditionalStreetMarkets 31.3.09 — Senior oYcers from Royal Borough of Kensington & Chelsea; Southwark & Westminster outlined proposed legislation, now in its second reading in the House of Lords, giving Councils powers to alter the governance of London markets. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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— The proposed legislation removes various protections from street traders. The Westminster oYcer said that given a choice, WCC would have no markets at all. Under the new legislation this appears a possibility. — The chairmen of street traders in RBKC and Southwark attended the Committee hearing. Neither had any previous knowledge of the proposed changes in the law. — London Councils have almost completed the process of changing Parliamentary legislation on street trading: eVectively in secret. No information was provided to street traders; communities; nor was any consultation process followed. — London Councils have circumvented the democratic process in matters that aVect not only street traders, but large sections of the wider community. — In 1985 legislation on the same matter was promoted by RBKC & WCC. It was rejected by Parliament on its third reading in the House of Commons, on the grounds of the lack of public consultation. The event is recorded in Hansard. The London Local Authorities Act 1990 s.34 was the eventual legislative response to this matter. — In 1985 street traders engaged parliamentary agents to co-ordinate their eVorts. The same agents are now believed to be promoting the current bill. Street traders no longer have a forum to debate their concerns; so are eVectively helpless. Please help London markets.

Memorandum by Urban Space Management Ltd (MARKETS 33) Urban Space Management Ltd (USM) is glad of the opportunity to add our comments to the Communities and Local Government Committee Enquiry on Retail Markets. USM is an urban regeneration specialist with over 35 years experience, both in providing a consultancy service on retail markets to many local authorities and developers throughout the UK, and in the practical management of a wide variety of existing and new markets, including both traditional street and covered general markets (eg Elephant & Castle Market, Gravesend Charter Market, Swindon Market Hall), and specialist arts and crafts markets (Camden Lock, Old Spitalfields Fruit and Vegetable Market, Greenwich Charter Market, Merton Abbey Mills). Our mission from the start has been the sustainable revival of run- down spaces by the creation and promotion of attractive centres for small retail and/or arts-based business, of which a market is often the essential ingredient. We are in broad agreement with many of the points made in the memoranda so far submitted, many of which we have found both constructive and encouragingly consistent. Against this background, from our own experience we should like to emphasise and develop a number of practical points for the Committee’s consideration: 1. A main issue discussed has been whether markets are better operated by local authorities or private operators. No one market is the same, and one form of management may suit some, the other the rest. In general, however, (and there are honourable exceptions) local authority management will always tend to be characterised by regulation and enforcement, rather than a flexible entrepreneurial approach which is constantly on the lookout for new opportunities and prepared to invest in them. 2. This is especially true in London where the provisions of the London Local Authority Act 1990 require the fees levied on traders to be suYcient only to cover the market’s running costs. In eVect there can be no surplus generated, which means nothing can be reinvested in entrepreneurial activity and, while London boroughs diVer in their interpretation of the LLA Act’s detail, many take the view that promotion is specifically forbidden. The inevitable result is that a market covered by the LLA Act simply cannot be regarded as a business at all, merely a service—and therefore is no match for its ever-keener retail competitors. The Act, set up for good reasons (eg when the rights of long-established family-run small businesses needed protection), reflects an outmoded view of the trading climate and suVers from the law of unintended consequences. Normal healthy business activity cannot but be stultified. Outside London the situation is not much better. While Councils are allowed to make a profit from running street markets, this is seldom ring-fenced for reinvestment in their improvement or promotion, but instead disappears into general council funds. The result is all too often that a market plays a Cinderella role in an area’s retail mix. 3. Private operators (while some respondents to the Forum naturally view them with suspicion) are altogether less inhibited, with greater flexibility in recruitment of stallholders (for example without pressure to keep a stall franchise within succeeding generations of a family), and are likely to have a better understanding of small business, of working day by day with their traders, and of cashflow and the relationship of the cash coming in to the true costs of the operation (for example, items like rubbish collection can often be hidden or taken for granted in council-run markets). They invariably benefit from less complex layers of management than a local authority, where several departments may be involved, Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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finance (again for unimpeachable reasons) is divorced from the day-to-day operation, and oYcers are in any case directly answerable to elected members. The latter may naturally be very supportive of a market as a public service, but we have often found this can produce tensions, typically when traders aVected by oYcers’ decisions appeal directly to their elected councillor, in eVect disempowering the on-the-ground management. This can have a very negative eVect on the eVective management of a market. As stated, there are exceptions; an example we have recently found is the very large traditional market in Chesterfield. Here the preservation and healthy growth of the market is a strategic priority, and entrepreneurial management by the local authority itself is clearly evident from its inclusion within the remit of the Council’s own Marketing and Tourism Development OYcer, as well as from a close and active relationship between management and traders. The contrast could not be more marked with a London market (which we do not name) where the day-to-day management is constantly undermined by a committee of elected members reacting to traders’ complaints, with predictable eVects on oYcer morale and trader discipline. 4. Most markets co-exist with shops, and when push comes to shove we believe that either group has to agree that it benefits from its relationship with the other. (Indeed at least one submission to the Forum states that market day is the best day for the surrounding shops—possibly circumstantial, but a fair conclusion). In our experience, where there is a thriving market alongside shops, the market is the main attraction and footfall draw, and the shops should relate to it as complementary to their business rather than competitive. (We have even heard of a local branch of a national multiple which gives a Christmas party for the neighbouring stall traders!). There have always been cases where shops have felt undercut by adjacent stalls, but these are generally resolved by a sensitive management relationship and entrepreneurial approach (and ironically the reverse is now happening, that stalls are complaining they are being undercut by shops). 5. Several submissions have stated that markets are underrated as assets, whether by local authorities, national government or developers. In our experience markets do generally represent a missed local development opportunity. A market is a business driver, a positive start-up for traders who, while typically they tend to remain as stallholders, in many cases can and do graduate up the retail hierarchy to a shop and thence to a successful business and local employer. There are many examples of market traders becoming successful shopkeepers, and often multiple retailers. We believe local authorities ignore this potential at their peril, especially in the present climate where new business start-ups have once again become a priority. USM’s experience of previous recessions has been that markets are well equipped to survive, not least because their oVer is essentially one of bargain price, and the rediscovery of the pleasure of a more personal, community-based relationship in shopping. 6. The issue of the fees levied by local authorities within the area of a Charter Market has been touched upon. We believe this time-honoured penalty needs urgent review, as it is not only entirely illogical and irrelevant to the twenty first century, but is unfair and can be very damaging to a neighbouring market’s viability. A vivid example from our experience (which we do not name) has been a popular and successful market originated by USM in a location six miles from a Charter Market, where the bizarre results of the ancient legislation were (a) that in eVect the business rate was doubled, making the market itself virtually unprofitable, (b) that a regeneration project highly prized by the borough in which it is situated was financially penalised by the borough next door, (c) that this fee, quite forgiveably described as “money for old rope”, was being levied in return for no municipal service whatever, and (d) that the specialist nature of the market (an arts, crafts and cultural visitor centre) was patently not the kind of operation the original legislation had in mind! We would urge the Committee to address the question of a review of the legislation covering a Charter Market’s right to levy fees, which while no doubt sensible and justifiable in its day some four hundred years ago is surely past its sell-by date in this day and age.

Memorandum by the London Borough of Bromley (MARKETS 34) Summary — The London Borough of Bromley presently manages; a 800 year old Charter Market, that takes place every Thursday in a council car park. A combined Arts and Craft and Farmers’ market, that takes place every Friday and Saturday in the pedestrian area of Bromley town centre. A small market that takes place every Monday in Orpington High Street. — Plans are in place to regenerate a producers’ street market in Penge, from June 2009. — Occasional continental markets take place in the smaller town centres around the borough throughout the year. — Proposals are in place to relocate the Charter Market to Bromley town centre to provide an alternative shopping experience and increase vibrancy to the town. — The local authority considers a well presented and managed market to be an important ingredient to a successful town centre. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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1. Traditional retail markets today 1.1 During the last 10 years markets have changed from traditional fruit, vegetable and clothing to more specialist, such as, Arts and Crafts, Farmers’ and continental. 1.2 The number of markets has actually increased. 1.3 The main obstacles to more markets would be lack of suitable sites, the expense of installing appropriate infrastructure, such as, power supplies, ground fixing points and stall structures. There is also a limited number of appropriate operators and traders. 1.4 Parking facilities for traders’ vehicles and the lack of appropriate infrastructure. 1.5 Continental and farmers’ markets have proved successful and popular, but only if they take place on an occasional basis as their novelty factor soon wears oV. Existing street and market traders welcome these markets, but only on an occasional basis.

2. Their social and economic eVects 2.1 They provide low cost start-up business opportunities. Provide an alternative shopping experience. OVer goods not easily available locally. Increase local footfall that contributes towards the vibrancy and vitality of the area. Creates face to face interaction between traders and customers. 2.2 Enable markets to provide the goods and services that customers need and want.

3. Realising the potential of traditional retail markets 3.1 Our markets are self-funding for operational purposes only. Bids are made for additional funding for such things as power supplies, new stalls and other infrastructure needs. 3.2 The local authority has a better understanding of the bigger picture in terms of the local environment, especially with regard to any future developments. Would need to meet the requirements of local businesses, residents, shoppers and not just the traders. Some local authorities may not possess the business experience to successfully manage a market. 3.3 Not aware of any support from central government for markets. Markets should be supported and managed locally. 3.4 Central government could make use of local markets for the promotion of healthier eating, less packaging, less transport costs etc. Also, contribute towards funding for regeneration areas to improve local economy and employment.

4. Planning and licensing issues 4.1 Planning regulations can assist where local conditions need to be implemented, for example, where residential properties are close-by. 4.2 Licensing regulations are essential for managing and controlling conditions. They ensure a “level playing field”. 4.3 Enable the regulations to be made more flexible to suit local conditions and requirements.

Memorandum by the London Borough of Lambeth (MARKETS 35) Lambeth Council Markets has no specific complaint about the current market legislation under the London Local Authorities Act 1990(amended), in terms of enforcements. We have adopted it and found it to be useful and practical when dealing street traders in the borough. It is restrictive in terms of income generation and funding from third parties.This is because of the nature of the street trading account, which is ringed fenced.Preventing and making it virtually impossible to apply for grants or funding directly. Thus making it diYcult to improve services and advertise to attract good professional traders with high quality goods the UK on order to attract and retain good traders.

Memorandum by the London Borough of Enfield (MARKETS 36) I write in response to your letter addressed to Rob Leak; Chief Executive, dated 27 April 2009 inviting us to comment on the legislative provisions for (traditional) street markets under the London Local Authorities Act 1990 (as amended). There are two traditional retail markets within the London Borough of Enfield. However, both of these markets operate on private land (not being part of the highway) by the owner of that land, and so fall outside the licensing regime under the London Local Authorities Act 1990. We do, however, have a small number Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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of stalls that are licensed in a few designated streets, and have recently extended street trading to include farmers and seasonal markets and also to tables and chairs outside cafes etc. We have found the legislation to be suitable and adequate to deal with the licensing and control of these matters.

Memorandum from the London Borough of Brent (MARKETS 37) Brent Council does not operate any markets. There are three within the Borough operated by private companies. We do not have any firm knowledge of the success or otherwise of these markets but anecdotally they are becoming less varied and not as well supported. We do from time to time have French, farmers, African, continental or craft markets that are facilitated by Brent Council, but eVectively may be managed by a third party. These markets when held take place usually as a street market. The markets take place by licensed consent with temporary street trading licences being granted to individual traders. Although Brent Council is not in a position to comment on the current situation with regard to the viability of markets, we have recently looked at the possibility of introducing one or more regular street markets. OYcers have found current legislation confusing and unhelpful with regard to street markets within London being run by a third party or contracted to a market company. Initial enquiries suggest that there are diVering schemes in place with each Authority. We would welcome clear legislation that supports Local Authorities facilitating or running street markets, particularly through a market management company without weakening our powers to prevent unauthorised or illegal street trading. Our biggest problem is that whereas we are keen to introduce street markets we do not have the expertise or resources to manage such an operation in-house.

Memorandum by the London Borough of Bexley (MARKETS 38) 1. Summary andContents This brief submission seeks to draw attention to two issues: (a) markets in towns with a “discount” retail oVer; and (b) constraints of Royal Market Charters.

2. CurrentMarketCharters The London Borough of Bexley has a Charter for a market in Erith. The town centre is one that has seen investment over the last 10 years and new retail outlets anchored. A consequence is that the general market has disappeared owing to many stall holders being unable to compete with the prices in the retail outlets such as ironmongery (now provided by a Wilkinson store open seven days a week). However, the nature and catchment area of the town, has also meant a more specialist market to diVerentiate it from the High Street oVer has not been possible unless related to occasional and major events coming through the town (eg Tour de France). This does suggest that, in some locations, the traditional customer base of general markets is being eroded by the retail oVer of multiples. Overall the retail outlets provide a more convenient oVer and a question is how the general market can compete or adapt and change. There seems a significant gap between the general and specialist markets. Consequently, where markets can add most vitality, it is often diYcult to secure a commercial operator.

3. Constraints ofMarketCharters Boroughs (within and outside London) have Royal Charters for Markets which prevent towns within a certain radius having markets on the same day. Historically, the Charters were used to support general markets albeit some would relate to seasonal themes throughout the year. However, there seems to be an increasing tendency to use this historical power to prevent specialist markets (eg continental markets) taking place in neighbouring towns. Typically this prevents markets being held on certain days which, when booking a specialist market, means some of the more rewarding trading periods (eg over a weekend) cannot be accommodated thereby creating encouraging the operator to opt for an alternative location able to do so. At a stage when most towns are seeking to improve the vitality of their town centre, this appears to be an unnecessary restraint. Consequently, it is suggested that there should be some diVerentiation given to types of markets and the application of Royal Market Charters reviewed accordingly. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Memorandum by the London Borough of Newham (MARKETS 39) Newham is pleased to respond to the Committee’s inquiry on how the provisions set out in the London Local Authority Act 1990 (LLAA) aVect our local authority. On the whole, the LLAA is a very useful set of legislation which provides oYcers with useful guidance on the daily operation of the markets. The one reservation we do have and would like to highlight however, is that some the legislation can be perceived as unclear and ambiguous therefore leaving it open to diVerent interpretations by diVerent oYcers. Our main concern is with two sections of the LLAA in particular: 1. Section 25 (11) states that a license holder can at any time surrender his/her licence which means the licence is no longer valid. However this is problematic given that the process for re-letting a pitch can take up to four weeks. It would take a couple of days for the Council to complete the process of re-letting the pitch but the whole process often takes longer because of logistical issues which the new trader may have. Often these problems are caused by the trader does not yet have the stock they need and more importantly because they do not have Public Liability Insurance in place. With these delays in mind, we recommend that the any licence holder wishing to surrender their licence should give at least four weeks notice. This will result in income for the pitch to carry on without any break. 2. Section 36 states that any assistant employed by the said licensee is not held responsible if he/she fails to comply with the condition of licence therefore the only person responsible for non- compliance is the licensee. However, any one who is working for the licensee should also have a responsibility to comply with the terms of the license. Failure for any staV who works for the licensee to comply could mean the demise of the market. To avoid this and ensure that the license terms are properly complied with, we recommend that any assistant/s employed by the licensee should also be legally obligated to comply with the license.

Memorandum by the London Borough of Islington (MARKETS 40) Proposals for theImprovement to theLondonLocalAuthorityAct 1990 Thank you again for taking time to visit one of our markets in Islington. We were very delighted in being chosen by your committee to be given the chance of highlighting the issues faced by one of the longest reigning establishments—Street Markets. You invited comments or ideas that would help improve the running of markets. For this reason we wish to draw the committee’s attention to our observations in relation to the London Local Authority Act 1990 (as amended). The LLA Act 1990 (as amended) was written at a time when street trading flourished. Markets were not threatened by supermarkets, parking restrictions and rigorous regulations. They provided employment from generation to generation and pitches were highly sought after. This is no longer the case. In Islington we recognise that markets still play a vital role in our communities but need increased council intervention to succeed. In deed the only reason Whitecross Street Market was able to resurrect itself was through outside funding and council commitment. Regulations in the LLA 1990 (in relation to Street Trading) do not provide assistance for dying markets. In addition to this; the wording and multitude of amendments make the whole Act a challenge to understand and interpret. If abandoning the Act altogether is not an option perhaps the following proposals can be explored.

Section Provision Proposal Section 25(2) Limits applications to Allow applications to made by individuals. Also means that partnerships or companies (need to ensure a trader is limited to trading no sub-letting though). This would allow in one market. flexibility for the licensee to employ staV and allow them to trade on their behalf and also to trade in more than one market. Section 29 If the Local Authority wishes The Local Authority should be allowed to to revoke on grounds that suspend a licence if not paid within two person has not paid fees or weeks. This would stop the licensee charges for four weeks they trading and prevent further arrears. need to give the licence holder 21 days notice of intention to revoke a licence. This means that the arrears would accrue to at least seven Processed: 17-07-2009 23:36:33 Page Layout: COENEW [O] PPSysB Job: 428788 Unit: PAG5

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Section Provision Proposal weeks before revocation. This period will extend if the licensee challenges the process. Section 32(2) This subsection give details of The Local Authority should be allowed to what services can be charged promote and invest in markets and recover for as part of the rent. The these costs from weekly rents. list is too restrictive.

Memorandum by Hackney Council (MARKETS 41) Thank you very much for your visit to Ridley Road Market on 10 March 2009. We were delighted to be chosen for a visit and be given the opportunity to highlight the issues faced by the local authority in the management of street markets. We are taking this opportunity to follow-up on your invitation to let the committee have any suggestions which would help improve the local authority management of street markets. We hope that the pack that was prepared has informed some of your thinking. We particularly wish to draw the committee’s attention to our observations in relation to the London Local Authority Act 1990 (as amended). Although the London Local Authority Act 1990 (ie the sections relating to Street Trading) provides the framework for the council to run markets, in many ways it hinders the commercial development of this enterprise. At present the legislation does not allow the local authority to (a) raise fees and charges to support the development of markets and (b) use the street trading account to support the development of markets. In addition the wording of the sections of the Act (and the amendments) relating to street trading make it a challenge to understand and interpret. We would suggest that the following powers are given to London Local Authorities under the current or a new Act to enable the management of markets to be improved. — To have the ability to develop the street trading account so that a fund can be built up to reinvest in the market to provide service improvements for both traders and customers. — To have the ability to transfer management of markets to another organisation where the local authority do not necessarily have the commercial expertise in-house to maximise the potential of markets. In making this decision local authorities would also look at whether markets could be managed more eVectively at arms length from the Council. The traders (Traders Association) could take more ownership of the management and promotional issues relating to their work. — To have the ability to develop the street trading account so that markets can be better promoted given that markets need to be able to compete with other retailers. As a local authority our responsibility to manage, maintain and promote markets has to be balanced with our responsibilities to council tax payers, and therefore we are not able to use or promote other retailers like the big supermarkets or clothing chains. — To have an ability to suspend a licence if not paid within two weeks. This would stop licensee trading and prevent further arrears. — To have similar powers to pursue traders for debts as parking legislation allows in relation to unpaid penalty tickets. At present traders who are in arrears often appeal to court against their revocation thereby allowing them to continue to trade until their case is heard. Invariably these traders continue not to pay and so can amass a large amount of arrears before their court case is heard. In cases where the traders appeal against revocation is not upheld, the trader invariably will not pay their arrears and therefore the authority will need to issue court proceeding to get an order for payment. Other suggestions for improving the development of markets and its management: — A barrier to entry for the next generation of market traders and to some extent markets staV for councils is training. We’d suggest that bodies such as the National Market Traders Federation take a more active role in promoting this career option and potentially looking to provide training. This could include looking at options for an NVQ standard qualification in all the aspects from legal to customer service that would help traders run profitable businesses. — The National Market Trader Bodies could also look at helping councils share best practice. They should seek better working relationships with councils to help them develop their understanding of how markets operate and what facilities and interventions they need to make them successful. Processed: 17-07-2009 23:36:33 Page Layout: COENEW [E] PPSysB Job: 428788 Unit: PAG5

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Memorandum from the London Borough of Havering (MARKETS 42) Havering Council operates Romford Market on the Market Plain which is owned by the Council and, therefore, for the most part we do not operate a street market. However, we are obliged to use the street trading provisions in the London Local Authority Act 1990 for some individual pitches around the market and have not found them easy to operate. Whilst we do not have an on street market, we are aware of the diYculties that other London boroughs have experienced in operating street markets under the current legislation, and we would support proposals for improving the legal framework. June 2009

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