4.0 Our Forward Strategy The forward strategy for improving the economic • Reduce the social polarisation of the Tees Valley The following sections set out in more detail how we from companies wanting to fill gaps in the integrated performance of the Tees Valley is based upon two by providing more opportunities for new housing will seek to take advantage of the opportunities complex which forms the Teesside chemistry set. fundamental principles: in the centres of our main towns. afforded by our assets. Hence it is vital that the key industry leaders are • Improve the liveability of the Tees Valley by heavily involved in directing the work of the North a) First we need to build on the economic improving our environment, cultural and retail 4.1.1 CHEMICALS East Process Industries Cluster (NEPIC). assets of the city region. These fundamentally are facilities. The area also contains a significant speciality our world class chemicals industry and research • Develop in the long term a viable private sector The chemicals and process industries are absolutely chemical and biotechnology sector primarily based base and its potential for future development both commercial property market without the need for critical to the North East economy and to its at Billingham which has significant potential for for chemicals and as a national centre for energy public sector support successful development and prosperity. There are development. development, the development of our port as the • Make the most of the economic opportunities over 200 individual chemical, pharmaceutical, second largest in the UK, the development of presented by our transport connections to other speciality and biotechnology companies operating in The table below shows the investment which has Durham Tees Valley Airport, our potential as a city regions the region producing a total of £8.8 billion GDP. It is taken place in the chemicals industry in the last 3 logistics hub, exploiting the research potential of our • Ensure that the towns of County Durham and important to recognise that there are close links with years. It shows the commitment from major universities and taking advantage of Defence North Yorkshire can actively benefit from the the energy/low carbon industry, Teesport and the international companies to the development of the Estates proposals to double the size of Catterick economic development and regeneration of the world-class engineering design industry in the Tees industry in the Tees Valley. The upturn in chemicals Garrison. Tees Valley. Valley. output and investment that has occurred is hugely welcome but we need to remain a competitive b) Secondly, we need to improve the urban 4.1 DEVELOPING OUR ASSETS The chemicals industry is the largest industry in the location and support is needed where there are competitiveness and liveability of the Tees Valley Tees Valley. It employs 13,400 people, about half in strategic investments and opportunities for through upgrading the business environment, skill Our forward strategy is to build on our economic petrochemicals and the remainder in fine and integration with competitive energy/waste investment base and physical, social and cultural infrastructures, strengths. These are: speciality chemicals. It is largely based on three which will benefit both. so as to attract and retain high growth, innovation sites, Wilton, Billingham and North Tees/Seal Sands. and profitable firms, and an educated, creative, Developing further our world-class chemicals The petrochemical cluster is the largest integrated entrepreneurial workforce, thereby enabling them to industry and research base which is the second chemical complex in the UK in terms of achieve a high rate of productivity, high employment largest in Western Europe manufacturing capacity and the second largest in Advansa - Major PTA debottleneck, Wilton 30m • I rate, high wages, high GDP per capita and low levels Realising the potential for an energy economy Western Europe after Rotterdam. It contributes Avecia Biologies - new manufacturing/lab fac1ltlies, Billingham 70m of income inequality and social exclusion. based on renewable energy and hydrogen gross domestic output of £1.6 billion and £3.5 billion Building on our infrastructure and expertise in to the local and national economies respectively. It Biofuels Corporation - world's largest biodiesel facility, 80m Seal Sands In relation to improving urban competitiveness we resource management including industrial supports 69,000 jobs in the UK, of which 20,000 are have a long way to go. We need to: symbiosis and technologies that convert waste in the Tees Valley. The petrochemical cluster is BOC - UK's largest hydrogen plant supply H2 and steam to 100m into secondary raw material and energy based on the olefines, aromatics and ammonia Huntsman • • Regenerate the core of our urban areas and Developing the port (Teesport) which is the derivative chains. Feedstock is provided by the Coebio3 - new fermentation units, Wilton 2m develop underutilised vacant and environmentally second largest port in terms of volume in the UK CATS pipeline from the North Sea gas fields, which poor land in central Hartlepool and along both and the seventh in Western Europe provides 20% of the UK's oil and gas. At the Degussa - utility plant upgrades, Seal Sands 2m banks of the Tees from Stockton through • Realising the economic potential of Durham Tees terminal the gas is processed into natural gas for Huntsman - low density polyethylene plant and aromatics 200m Middlesbrough to South Bank. Valley Airport as an economic driver transmission to the national grid or fractionated into refurbishment Provide city scale activities in Related to the port and airport developing the butane, propane and condensate which forms the Huntsman Tioxide - upgrade Billingham and Greatham works 65m Stockton/Middlesbrough and improve the quality Tees Valley as a logistics hub for the North East basic feedstock for the petrochemical industry. The of life in our main town centres of Darlington, and Yorkshire and the Humber supply of feedstock from the North Sea will last for at lnvista - boric acid upgrade, Wilton 40m • Developing a new cluster around the University least 50 years. Hartlepool and Redcar. Lundbeck Pharmaceuticals - upgrade, Seal Sands Nik • Provide a modern competitive transport infra of Teesside's world-class reputation in structure which improves both internal and digital/multi-media and the University of The competitiveness of the industry has been SembCorp - new wood burning power unit, Wilton 60m

external connectivity. Durham's research activities at Durham City, examined by Arthur D Little in 2004. They SembCorp - gas turbine unit, Wilton 25m • Renew our ageing housing stock which caters for NetPark and Stockton. concluded that the industry was competitive - whilst the needs of the early part of the 20th Century • The doubling of the size of Catterick Garrison in Antwerp and Rotterdam score better as access to CPI - national Industrial Biotechnology facility - Wilton 7m

rather than the needs of the 21 st. North Yorkshire markets, Teesside scores better on labour costs and John Baarola - tomato farm Billingham from steam/CO2 from 12m • Tackle problems of worklessness, lack of skills • Develop the potential for the river as an productivity. The petrochemical industry is a true Terra plant and social deprivation. economic asset cluster in that the product from one plant provides £693m • Create an environment which enhances the stock the raw material for another plant. For these of business and encourages entrepreneurship. reasons major investments in the future will come Source: NEPIC

20 Tees Valley City Region A Business Case for Delivery 21

6.0 How Can The Government Help

proposals for the Tees Valley heavy rail network, managing change that ensures the housing offer priorities for investment, with funding from all Hambleton District Council leading to a detailed business case and funding reflects both household aspirations (as confirmed sources, required to achieve the ambitious RES Durham County Council submission in 2007. by our Housing Market Assessment and the objectives. The 10 year Investment Strategy could Easington District Council Regional Aspirations Study) and the commitment act as a useful starting point for discussion. Once Sedgefield Borough Council We would also ask that national agencies such as to place-making and image change, and is these priorities have been agreed then further Wear Valley Borough Council Network Rail and the Highways Agency as well as responsive to future change. discussions can take place on the appropriate North East Chamber of Commerce regional bodies recognise the new Transport for Tees • Contribute £30 million per annum to speed the management, decision-making and delivery Tees Valley Partnership Valley Board and engage with it on sub-regional and process up, to minimise disruption and arrangements. We will be looking for Tees Valley One NorthEast strategic transport issues. In particular, we need to encourage the fullest involvement of the private Unlimited to be playing a significant role in these North East Regional Assembly develop the Tees Valley Metro proposals and sector in long-term relationships at the earliest areas for the place/regeneration agenda. North East Learning and Skills Council address the issue of Article 14 directions on the opportunity. Jobcentre Plus trunk road network that could stifle development in • Grant further freedoms and flexibilities - changes For the present time we propose that North Yorkshire Business Link Tees Valley the City Region. are needed to a number of programmes, such as and Durham County Councils are involved through a Tees Valley Area Tourism Partnership 'Homebuy'; borrowing capacities; spending/ policy forum approach rather than direct involvement Tees Valley Living In order to transform the housing market in the budgeting exercises and funding timescales. through the Tees Valley Metropolitan Economic Tees Valley Regeneration weaker areas, Tees Valley Living have identified the • Guide the Tees Valley Authorities by nominating a Partnership. Tees Valley Joint Strategy Committee need to demolish 5,500 homes and replace them 'critical friend' to aid the process of learning from with 5,000 new build properties and to improve best practice, in a similar way to the facility The ask of Government is to support the governance 3,000 dwellings. To complete this task in 1 O years available to the HMR pathfinders. model and to endorse Tees Valley Unlimited our public sector resources need to rise from £15 proposals for Metropolitan Area Agreements, and to million per annum to £30 million pr annum. This To help us deliver improved economic performance, agree a timetable between October 2006 and March investment is estimated to generate private sector we propose the creation of a Tees Valley 2007 which will allow the new arrangements to be in leverage of £450 million. Metropolitan Economic Partnership, which we want place from April 2007. We will work with partners in to call Tees Valley Unlimited. These new the Tees Valley to develop the details of the We believe our progress in understanding the arrangements in the Tees Valley would have an initial governance arrangements over the same period. complex relationship between the local housing critical role in negotiating the Metropolitan Area offer and our economic potential merits further Agreement which would set out resources available We commend the Business Case to you as a clear recognition by the Government. The Tees Valley and the outcomes and outputs expected to be coherent strategy for tackling the poor economic Authorities have shown already that they can work in achieved. Tees Valley Unlimited would then provide performance of the Tees Valley through building on effective partnership with their communities and key leadership and coordination to drive forward the City our economic assets, improving urban stakeholders to harness public funding towards Region Development Plan and arrangement for the competitiveness and improving governance urban renaissance and build sustainable mixed management and delivery of the projects within the arrangements between national, regional and local income communities. Metropolitan Area Agreement and the other government and in involving the public, private and functional areas within its remit. voluntary sectors. In recognition of this process the Government is asked to: This will require some devolution of responsibility to Finally, the Business Case has the support of a wide Tees Valley Unlimited in relation to: range of bodies. There has been positive support • Acknowledge the evidence that transformational and editorials in the Evening Gazette and Northern change is needed in the urban core of Tees a) Housing market restructuring funded by DCLG. Echo. The Government Office North East has also Valley to provide modern homes in an attractive provided considerable help and advice to the setting. b) Tees Valley wide transport projects - the preparation of the Business Case. The Business • Recognise that house price rises in failing areas Transport Innovation fund, Tees Valley Metro and Case has the support of the following organisations: are typically driven by buy-to-let investors, which Tees Valley Bus Network improvements. may be unlikely to create sustainable Darlington Borough Council communities. It is understand that discussions are required with Hartlepool Borough Council • Endorse Tees Valley's 10 year strategy, balancing One NorthEast to consider future delivery Middlesbrough Borough Council housing demolition and redevelopment with arrangements for regeneration/place programmes. Redcar and Cleveland Borough Council extensive refurbishment and improvement to As part of the ongoing RES Action Plan process Stockton on Tees Borough Council provide choice in critical neighbourhoods. there needs to be a constructive dialogue and North Yorkshire County Council • Support the sub-region's commitment to negotiation between partners to agree the strategic Richmondshire District Council

74 Tees Valley City Region A Business Case for Delivery 75