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City and County of Cardiff Dinas a Sir Caerdydd

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City and County of Cardiff Dinas a Sir Caerdydd CITY AND COUNTY OF CARDIFF DINAS A SIR CAERDYDD CABINET : 17 MARCH 2000 Portfolio : Regeneration Report for : Decision ECONOMIC DEVELOPMENT PLAN 2000/2001 AGENDA ITEM 13 Background 1. An annual Economic Development Plan setting out its economic development proposals for the year ahead including relevant expenditure and income is a statutory duty under the Local Government and Housing Act 1989. The Plan requires Council approval before the 31 March each year in order to ensure that economic development expenditure for the subsequent financial year can be undertaken lawfully. 2. Authorities have the power and duty to consult appropriately with the local business community on their proposals in advance of the Council’s approval of the Plan Issues 3. The production of the Plan is a welcome opportunity for the Council to realign its commitment to economic regeneration by mapping out its aims, ideas and spending proposals on economic development initiatives for the coming financial year within an economic and policy context. 4. Following the Council’s current major political and structural reorganisation, the Plan can now be used to reposition economic development and regeneration to make a consistent and concerted impact on the future prosperity of Cardiff. In particular, we would want to ensure that the ethos of this and future Plans reflects the principle aims of the new Authority to work in partnership, openly, collectively, and through proper and meaningful consultation. 5. It has been recognised that tremendous inroads have been made into establishing Cardiff as a dynamic European Capital City. The work of the Development and European Affairs Service will seek to build on this success through the development of economic, business and policy initiatives. We will work corporately and innovatively through and across a number of areas, both internally and externally to mobilise effectively the resources and skills of key players from the public, private and voluntary sectors. 6. It is also the intention to develop, over the next few months, a comprehensive and cohesive strategic economic document that will set out the issues and challenges for the continued economic regeneration of Cardiff for the next 3-5 years. This new Strategy will broaden the remit of the annually produced Economic Development Plan, and will help inform and shape future Plans. It will also be able to reflect any new economic and related objectives set out in the Lord Mayor’s Address 2000 and will be underpinned by two broad goals:- · To sustain and enhance a modern diverse and globally competitive economy, able to increase and spread future prosperity throughout the City, its hinterland, and all Wales; · Create and enhance sustainable economic opportunities for Cardiff, its communities and its citizens. 7. Such a strategy will seek to contribute to, influence and help shape economic and regeneration strategies and policies of the National Assembly of Wales and other key economic and related bodies/agencies. Preparation of the Economic Development Plan - Process 8. To progress the preparation of a Plan of relevance and mutual interest to all key parties the following process is being undertaken:- · A business prospects survey For the first time, as part of the Plan’s initial consultation process, a survey of business in Cardiff has been undertaken which includes focusing on its future prospects, capabilities for achievement, potential barriers to growth, export potential and use of e-commerce. The results are currently being analysed. · External consultation Again, for the first time, a number of public sector and voluntary bodies were invited to submit initial thoughts in the early stages of the Plan’s preparation. Meetings were also held with the key agencies to identify economic and related issues impacting on their areas of work. This feature was welcomed by the organisations and will, hopefully, generate mutual ownership of the Plan when published. · Internal consultation A number of Council service areas were identified as being within, or closely related to, economic development activity. Meetings were recently completed with the relevant Corporate Manager/Heads of Service and comments and proposals incorporated into the document. · Financial Proposals As a result of the Council’s recent political and organisational restructuring, the detailed budget for 2000-2001 is, at the time of the preparation of this report, in the process of being finalised. Financial proposals against targets will be discussed and agreed with appropriate Services once budgets are confirmed and these will be included in the final document. · A thorough analysis of the City's economy A report offering a full analysis on the Cardiff economy in conjunction with Cardiff Research Centre and Cardiff Business School is being considered. It is anticipated that this work will feed into the proposed Economic Development Strategy and future Plans. · Further Consultation The draft Plan was distributed on 3 March (via e-mail to many) to 800 members of the business community, related bodies and agencies for their further views and comments. The deadline for comments/views is 14 March. 9. In addition, I chaired a meeting with representatives from key bodies, including the Welsh Development Agency, the South East Wales TEC, the Chamber of Commerce, Business in Focus, South East Wales Economic Forum and Cardiff Business School. 10. If the Cabinet is comfortable with the approach and issued outlined in this report, the draft will be subject to final approval via delegated powers to the relevant Corporate Manager in consultation with myself in order to meet the 31 March 2000 deadline for completion of Plans. It is envisaged that a ‘glossy’ version of the final Plan will be printed and launched by myself in May. Emerging Key Strategic Issues 11. The following issues/challenges are emerging from work completed to date. These will be adapted and modified when the consultation exercise is complete :- · As a key driver of the Welsh economy, Cardiff must not be constrained in its economic growth in the belief that this will encourage growth and spread prosperity to other parts of the Nation. Such constraint in not in Cardiff’s or Wales’ interest; · A balanced approach to gaining inward investment and supporting dynamic local business is needed. Partnership with other public sector agencies and the private sector will be vital in this process; · A modern, flexible, competitive and knowledge-based economy must be encouraged and developed by exploiting new high value-added growth sectors such as e- commerce in order to increase Cardiff’s share of internationally tradable services; · Investment in the future invest in knowledge by improving the skills base, particularly in technology, communication and marketing, and encouraging an innovative and entrepreneurial culture, will be an essential element of the required approval, · Employment opportunities must be increased by exploiting new growth sectors, and encouraging diversification and expansion. Developing the flexibility and skills of the local labour force as a prerequisite to resolving high unemployment and low economic activity rates in the area; · A community approach to sustainable economic and social regeneration needs to be promoted to tackle issues of social exclusion encouraging participation and inclusion - more contributors - less beneficiaries; · Cardiff will need to develop and implement a cohesive and wide-reaching strategy that seeks to address the impact of the demise of the Development Corporation as well as the social, economic, environmental and community needs of the Bay Area. This will be particularly important , in finding solutions to improve the co-existence of significant high investment with high unemployment and low economic activity rates in the area; · The ongoing and dedicated task of modernising Cardiff’s business, transport and technology infrastructure will be vital to its continued economic growth and sustainability as a dynamic and booming City · The need to continue to access a range of funding opportunities to underpin programme and project development. Conclusion 12. The Plan offers an opportunity to help shape the economic progress of the City. It is clear that significant political and economic challenges lie ahead – challenges which will be met, through an integrated and collective approach. The economy will be based on knowledge, education, skills, innovation and the ability to adapt and progress, incorporating the continued regeneration of the City’s economic and technological infrastructure. 13. The key to success is the effective mobilisation of the resources and skills of partners to progress a robust and shared economic development programme for the City. This will help secure continued and sustained prosperity and success for Cardiff and its citizens. ADVICE This report has been prepared in consultation with Corporate Managers and reflects their collective advice. It contains all the information necessary to allow Members to arrive at a reasonable view, taking into account the advice contained in this section. The Corporate Manager with responsibility for this report is John Dacey. Legal Implications The consultation is a vital part of the statutory process for the next financial year. Whilst the new budget is being finalised, a degree of fluidity has been built into the consultation process. The full budget impact will be included in the final document. Achievability The proposals contained in the
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