Funded by AN ENVIRONMENTAL PROSPECTUS FOR SOUTH WEST

Registered Charity No. 207076

This report has emerged from a workshop held in 1998 as part of preparations for the new South Regional Development Agency (SWERDA). This workshop involved a number of economic, social and environmental partners, and considered the role of the South West’s environment in an evolving regional economic agenda. An Environment Prospectus Group was formed and agreed to take this work forward. An Environmental Prospectus for is offered as a first step in an area of work which we hope will be taken forward by SWERDA and others charged with the economic development of the Region.

The Environment Prospectus Group includes those organisations which have contributed to the funding of this report, plus the South West Regional Planning Conference, Country Landowners Association, Community Council for and Conservation Forum.

This Group has acted on behalf of a wider partnership of organisations established through the workshop in 1998: Water plc, British Trust for Conservation Volunteers (BTCV), Business Link - , Campaign for the Protection of Rural England (CPRE), Community Council for Somerset (CCS), College, Countryside Commission South West Region, Country Landowners Association (CLA), Dartmoor National Park Authority, Devon Conservation Forum, English Nature, Environment Agency, Farming and Wildlife Advisory Group (FWAG), Federation of Small Businesses (FSB), Forestry Commission (Severn, Wye & Avon Conservancy and South West Conservancy), Friends of the Earth (FoE), National Trust in the South West, PAYBACK, Royal Society for the Protection of Birds (RSPB), South West Regional Planning Conference, Surfers Against Sewage (SAS), Sustainable Futures, University of , University of Plymouth, University of the West of England (UWE), Water plc, West Country Tourist Board Linking the Economy

(WCTB), Wildlife Trusts in the South West. and the Environment All the views expressed in this report may not necessarily be shared by all these organisations. Printed on 100% recycled paper •TOURISM•RE-CYCLING•INVESTMENT•JOBS•COMPETITIVENESS•AGRICULTURE•RENEWABLE ENERGY•ORGANIC PRODUCTS• •TOURISM•RE-CYCLING•INVESTMENT•JOBS•COMPETITIVENESS•AGRICULTURE•RENEWABLE ENERGY•ORGANIC FOR FURTHER CONTACT

To take up the issues raised in this Prospectus, please contact one of the following:

Tim de Winton Mark Robins Regional Strategic Planner Senior Conservation Officer Environment Agency RSPB Manley House Keble House Kestrel Way Southernhay Gardens Exeter Exeter Devon Devon EX2 7LQ EX1 1NT

Tel: 01392 444000 Tel: 01392 432691 Fax: 01392 444238 Fax: 01392 453750 Email: Email: [email protected] [email protected]

March 1999 AN ENVIRONMENTAL PROSPECTUS FOR SOUTH WEST ENGLAND EXECUTIVE SUMMARY

LINKING THE ENVIRONMENT WITH JOBS AND WEALTH CREATION ✸ With the emergence of the new South West of England Regional Development Agency (SWERDA) and the Regional Chamber as a voice of regional government, the South West region will achieve greater prominence than ever before both within the UK and across Europe. In meeting the challenges of the future, it is essential that the region pursues policies and programmes that play to the real strengths of the South West. ✸ The environment of the South West is a key regional strength and one that sets it apart from other English regions. The varied and dramatic landscapes, the rich and diverse wildlife, the overall sense of place and quality of life for which the South West is so well known, are already of immense value to the great many who live in, work in and visit the region. ✸ At a workshop held in 1998 a number of economic, social and environmental partners considered the role of the South West’s environment in an evolving regional economic agenda. An Environment Prospectus Group was formed to take forward the work of linking the environment and economic development. An Environmental Prospectus for South West England is offered as a first step in this area of work which we hope will be pursued by SWERDA and others charged with the economic development of the region. ✸ The information, case studies and recommendations in this report will be of immense interest and value to decision makers across the Region. We must all look increasingly towards the environment and related sectors as a key force in today’s and tomorrow’s development. Those charged with economic development in the region must now take the work forward.

✸ THE CURRENT POSITION Environment related economic activity contributes c100,000 jobs and £1.6 billion to the South West region. This is over 4% of employment and 3% of GDP across the region. This is a highly conservative estimate; overall the value of the environment is in the region of 5-10% of the South West’s total GDP. This Prospectus describes this economic activity in three parts: 1 The Environment sector: c38,000 jobs, c£833 million output The Environment Industry: firms that provide goods and services which are needed for environmental protection Environmental Management use of environmental management systems by businesses to assess and reduce their impact on the environment Renewable Energy wind energy, biofuels and their potentials Waste Management recycling and alternatives to landfill Natural Environment Sector economic activity associated with the protection and enhancement of the natural environment 2 Regenerating the primary sector: c600 jobs, c£13.1 million output Agriculture and the Environment environmental land management schemes, organic farming Regional Produce using the high quality of the environment to brand regional produce, local purchasing, countryside products Forestry Working Woodlands, multi-purpose forestry, Community Forests, the South West Forest Project AN ENVIRONMENTAL PROSPECTUS FOR 3 Capitalising on a high quality environment: c55,000 jobs, c744 million output SOUTH WEST ENGLAND EXECUTIVE Tourism rural/countryside tourism, sustainable tourism SUMMARY activities, coast and clean seas Continued Films and Media dedicated regional centres of excellence, quality environments as film locations Inward Investment links between inward investment and quality of life factors, company location Quality of life quality of life underpinning life in much of the region for its residents

✸ With the right approach, the environment has the potential to contribute even further to the sustainable development of the South West, securing economic, social and environmental benefits for the Region which will be in everyone’s interest.

✸ FUTURE OPPORTUNITIES The economy associated with the environment is a fast growing sector. Significant opportunities exist to increase the employment and economic output of a number of environment-related activities: Environment industries an additional 24,000 jobs and £370m output Renewable energy an additional 12,000 jobs and £260m output Organic farming an additional 160 jobs and £3.5m output Local purchasing an additional 2,000 jobs and £44m output

✸ RECOMMENDATIONS An Environmental Prospectus for South West England offers a number of recommendations to SWERDA and others with a key role to play in the sustainable development of the Region. These recommendations can be summarised as follows:

A South West Economic Development Vision should: ● ensure that opportunities presented by the environment for supporting and enhancing a diverse and strong economy are fully recognised and promoted, particularly in the rural areas of the South West. A South West Economic Strategy should: ● develop a skills strategy that matches the existing and future opportunities offered by environment-related activities in the Region. ● identify ways in which it can direct incentives within funding programmes to encourage environmental benefits. ● identify flagship environmental projects and pursue programmes which demonstrate the ‘win win’ opportunities from pursuing environmental and economic objectives together. ● be subject to a ‘sustainability assessment’ which should include a strategic environmental assessment that is both comprehensive and transparent. As a voice for the Region and in developing Best Practice, SWERDA and others charged with the economic development of the Region should develop in-house expertise and work with the network of environment partners to: ● assess the environmental impacts and opportunities of policies and programmes ● help business to respond to new environmental legislation and policy developments ● ensure that necessary environmental infrastructure, such as waste management facilities, is put in place. FOREWORD

With the emergence of the new South West of England Regional Development Agency and Regional Chamber, the South West Region will achieve greater prominence than ever before across the UK and Europe. In meeting the challenges of the future, it is essential that the Region pursues policies and programmes that will play to the real strengths of the South West. The environment of the South West is one of the Region’s key strengths and one that sets it apart from other English regions. The varied and dramatic landscapes, the rich and diverse wildlife, the overall sense of place and quality of life for which the South West is so well known, are already of immense value to the great many who live in, work in and visit the Region. With the right approach, the environment has the potential to contribute even further to the sustainable development of the South West, securing economic, social and environmental benefits for the Region which will be in everyone’s interest. On behalf of the partnership of organisations behind An Environmental Prospectus for the South West, I am very pleased to offer this publication as a means of promoting such an approach. The information and case studies contained within this publication and the recommendations that it makes will, I believe, be of immense interest and value to a wide range of decision makers across the Region. I hope An Environmental Prospectus for the South West inspires you to look increasingly towards the environment and related sectors as a key force in today’s and tomorrow’s development.

Katharine Bryan Regional General Manager - Environment Agency South West

On behalf of the Environmental Prospectus Group CONTENTS

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EXECUTIVE SUMMARY i FORWARD ii CONTENTS iii 1 INTRODUCTION 1 1.1 THE ENVIRONMENT AND ECONOMIC DEVELOPMENT 1 1.2 ENVIRONMENT AND THE ECONOMY LINKAGES 1 1.3 SUSTAINABLE DEVELOPMENT 1 1.4 CAPTURING THE ENVIRONMENT IN DEVELOPMENT PROGRAMMES 2 1.5 THE ENVIRONMENTAL PROSPECTUS FOR THE SOUTH WEST 2 1.6 THE REGIONAL ECONOMY: AN OVERVIEW 3 1.7 THE ENVIRONMENT: AN OVERVIEW 3 2 THE ENVIRONMENT SECTOR 5 2.1 INTRODUCTION 5 2.2 THE ENVIRONMENT INDUSTRY 5 2.3 ENVIRONMENTAL MANAGEMENT 6 2.4 RENEWABLE ENERGY 7 2.5 WASTE MANAGEMENT 9 2.6 SUSTAINABLE TRANSPORT 10 2.7 THE NATURAL ENVIRONMENT SECTOR 11 2.8 SUMMARY OF REGIONAL ECONOMIC BENEFITS 13 3 REGENERATING THE PRIMARY SECTOR 14 3.1 INTRODUCTION 14 3.2 AGRICULTURE 14 3.3 REGIONAL PRODUCE 16 3.4 FORESTRY 18 3.5 SUMMARY OF REGIONAL ECONOMIC BENEFITS 20 4 CAPITALISING ON A HIGH QUALITY ENVIRONMENT 21 4.1 INTRODUCTION 21 4.2 TOURISM 21 4.3 FILM AND MEDIA 23 4.4 INVESTMENT IN THE SOUTH WEST 24 4.5 QUALITY OF LIFE BENEFITS FOR RESIDENTS 25 4.6 SUMMARY OF REGIONAL ECONOMIC BENEFITS 26 5 SUMMARY AND RECOMMENDATIONS 27 5.1 SUMMARY 27 5.2 RECOMMENDATIONS 29 6 BIBLIOGRAPHY 32 7 GLOSSARY 34 1. INTRODUCTION

1.1 THE ENVIRONMENT AND focusing on the supply of environmental ECONOMIC DEVELOPMENT goods and services; ■ With a new Regional Development Agency (The increasing employment opportunities South West of England Regional Development associated with environmental compliance Agency - SWERDA), revised Regional Planning and enhancement in industry, and in sectors Guidance (RPG) and the emergence of the such as transport, energy and agriculture; Regional Chamber as an active voice of regional ■ the importance of environmental progress for government, regional affairs are now long term industrial and business paramount. Key choices face those involved in competitiveness; planning and managing the economy of the ■ the recognition that clean technologies are South West. The organisations that have come efficient, can save money and enhance together to produce this Environmental productivity and hence growth; Prospectus 1 understand that, if sustainable growth is to be achieved, then environmental ■ evidence that failure to meet environmental and social concerns have to be integrated into responsibilities today can limit development economic decision-making. Policies, and incur greater cost to the economy and programmes and projects have to achieve society in the future; economic, social and environmental objectives. ■ the growing importance of enhanced In this Prospectus, we describe the nature of the environmental quality for the tourism sector, link between the environment and the economy. and in creating conditions for inward We also explore some of the real job and wealth investment and business growth sustaining opportunities that the environment Historically business has often seen presents. environmental issues as a constraining factor. We believe that the environment provides an However, the evidence is now quite the important basis for economic development, both opposite in that opportunities provided by the directly through growth in those sectors already environment are likely to outweigh the involved in and providing for the management perceived risks . of the environment, and indirectly through the contribution of a healthy and high quality 1.3 SUSTAINABLE DEVELOPMENT environment across the region, making it a place The new RDAs are the first development where people want to live and work. agencies in the UK to have a specific duty to The policy backgrounds elsewhere, at European contribute to sustainable development in the and UK levels, are increasingly providing a regions. Sustainable development aims to progressive approach to environmental pursue the following three objectives in such a improvement. Our challenge to those involved way as to make them mutually compatible for in the new regional development agenda is to current and future generations: give proper weight to environmental concerns, (i) sustainable, non-inflationary economic understand the significant contribution the growth; environment makes to the region’s economy and capture this very special asset in planning (ii) social cohesion through access for all to for our future. employment and a high quality of life; 1.2 ENVIRONMENT AND THE ECONOMY (iii) enhancement and maintenance of the LINKAGES environmental capital upon which life depends. This Prospectus begins to explore the nature of the positive linkages between the environment (after ECOTEC 1997). and the economy in the South West. It is worth noting here the key elements of the overall Achieving this requires a shift in focus, from linkage (after RSPB, 1999): models where economic growth is coupled with increasing rates of environmental degradation, ■ the growing size of the environmental to one where growth is compatible with industry - businesses and organisations reducing demands on the environment. Recognition of this was a central feature in the 1 This Prospectus is largely based on a report commissioned by the European Commission’s White Paper on Environment Prospectus Group from consultants: Environmental Resources Management: An Environmental Prospectus for the South West of England, February 1999, Ref 5697.

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Growth, Competitiveness and Employment 1 ● supporting the production and use of renewable which states that ‘the current development model in energy and materials; the Community … is characterised by an insufficient ● encouraging economic sectors with little use of labour resources and an excessive use of environmental impact; natural resources, and results in a deterioration of ● supporting environmentally responsible, integrated the quality of life’. The European Commission’s transport; subsequent Communication on Environment ● supporting the use of information technology; and Employment 2 presents an agenda for ● building a sustainable Europe, defined as one spatial planning to reduce environmental impacts; which ‘achieves a competitive economy combined ● development planning to encourage ‘industrial with less environmental degradation, improved ecology’(3). resource efficiency of energy and raw materials, and (1) Ecotec (1997) Encouraging Sustainable Development Through higher employment rates’. Objective 2 Programmes: Guidance for Programme Managers. (2) Environmental infrastructure: waste water treatment facilities, etc. 1.4 CAPTURING THE ENVIRONMENT IN (3) Industrial ecology: economic activities sharing energy, water or waste DEVELOPMENT PROGRAMMES products (cascading from one firm to another, localised materials exchange, etc. With this shift at all levels of governance, what does the movement towards sustainable These then are a useful toolkit for providing a development look like? How can it be made shift towards more sustainable development. more meaningful to those involved in pursuing Our task in the South West is to identify our sustainable development? specific regional opportunities to use these to There is a growing body of material that best effect. identifies and promotes strategic measures for sustainable development. This Prospectus starts 1.5 THE ENVIRONMENTAL PROSPECTUS the task of further specifying the South West FOR THE SOUTH WEST agenda. One such suite of recommendations is provided by ECOTEC (1997) (Box 1.1). In producing this Prospectus, we had three aims: Box ■ 1.1 Encouraging Sustainable Development in to assist regional development players in the Funding Programmes SW by indicating a broad range of activities which capture joint benefits for the The following principles are included in a environment and the economy; handbook(1) developed to assist programme managers to identify and promote those features of ■ to promote a positive approach by Objective 2 programmes which can significantly quantitatively demonstrating the range and change regional development towards sustainable scale of some of these benefits in the regional patterns. context; ● enhancing and maintaining environmental quality ■ (eg, supporting urban renovation schemes, cleaning to highlight some of the future opportunities up derelict and contaminated industrial sites); which should be addressed within a regional ● ensuring adequate environmental infrastructure(2) is economic development strategy. available; The Environmental Prospectus is a starting ● ensuring there are environmental awareness and point. We urge SWERDA and others charged ‘adjustment’ programmes for SMEs; with development in the Region to take up the ● helping to support environmental industries; challenge with real vigour. ● encouraging the application of ‘clean technologies’ and products; 1.5.1. Structure of the Environmental Prospectus ● supporting energy conservation, materials re-use and recycling; The structure of the Environmental Prospectus for the South West is outlined below. ● supporting development on brownfield sites; ■ ● supporting development on sites already served by Section 1: Introduction. The remainder of road/utilities/rail infrastructure this section presents a brief overview of the ● supporting innovation in new ‘green’ products, South West region’s economy and processes and services; environment, to set the analysis in context. It highlights the particular dependencies of the 1 The European Commission (1993) White Paper on Growth, Competitiveness South West economy on the environment, and and Employment: The Challenges and Ways Forward into the 21st Century. the special environmental features that 2 European Commission (1997) Building a Sustainable Europe: Communication on Environment and Employment.

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differentiate the region from other English These figures conceal considerable variation regions. The region’s economic and within the region. For example, GDP per head environmental strengths are characterised. ranges from 26% below the UK average for ■ Section 2: Environment industries. The South Cornwall, to 15% above the average for West’s growing environmental industry in . In general, the north and east of the goods and services for pollution control region are relatively prosperous with high creates jobs, whilst reducing pressures from value-added industries; while the south west industrial activity on the environment. Other peninsula and rural areas have suffered from environment-related activities, such as the structural decline of traditional industries renewable energy and nature conservation, such as mining, agriculture, fisheries and create new jobs, help to conserve and enhance defence. Box 1.2 presents some key statistics the high quality environment of the South about the regional economy, particularly for West. those sectors that have strong linkages with the environment. ■ Section 3: Regenerating the primary sector. Box Economic development in the South West 1.2 Key Strengths of the Regional Economy needs to address those sectors which are in decline, mainly land-based industries in the The regional economy is particularly strong in more rural areas. There are many financial and business services, with just over a opportunities to tackle the economic decline quarter of the region’s GDP being derived from this sector; only London and the South East have higher of these industries by diversifying the proportions. However, small business sites of fewer economic base, keeping people on the land than ten employees account for over 85% of all sites, and hence conserving the environmental and only 2.5% of sites employ 50 plus. characteristics of the South West that make it Tourism is also very strong, accounting for £3.5 unique. billion or around 7% of GDP in 1996, representing ■ Section 4: Capitalising on a high quality 13% of total expenditure by tourists in the UK. In that year, 21.7 million tourists (10% of whom came environment. The environment, quality of from overseas) visited the South West, a 21% increase life and regional identity offered by the South on 1991 figures. West are a vital asset for the wider economy. Agriculture accounts for almost 4% of GDP Sectors such as tourism depend on a high compared with less than 2% for the UK as a whole. quality environment for their continued 2% of employees and 12% of the self-employed work growth and competitiveness. The quality of in agriculture. More than three quarters of the life within the region is an important factor regional land area is in agriculture, mainly beef, attracting and retaining investment; while sheep and dairy farming. regional and quality based marketing Important regional variations include: initiatives are built upon the area’s strong ● High proportions of people above retirement age in regional and sub-regional identity. Dorset, Devon and Cornwall. These populations do not contribute to GDP but do contribute to economic ■ Section 5: Summary and recommendations. prosperity measured in disposable income per head. The overall value of the environment to the ● A particular reliance on the primary sector in Devon South West regional economy in terms of and Cornwall, where more than 20% of business sites employment opportunities, economic growth are involved in agriculture, hunting, fishing and prospects and competitiveness is forestry. identified.Recommendations are offered to ● Below average disposable income per head in SWERDA and others charged with the Cornwall, due to the predominance of seasonal and economical development of the region on low value added activity in tourism and agriculture. how to take these linkages forward. 1.7 THE ENVIRONMENT: AN OVERVIEW 1.6 THE REGIONAL ECONOMY: AN The environment of the South West is one of the OVERVIEW most rich and diverse in the UK. Quality of life, The South West region, comprising the Isles of seen by many to be a key asset, in turn attracts Scilly, Cornwall, Devon, Dorset, Somerset, people to live and work in the region. In a Wiltshire, and the former recent survey of company executives2, 57% county of Avon, had an economic output of stated that overall quality of life was the most around £50 billion and contributed nearly 8% of important personal factor for relocation to UK GDP in 19961. another city. Bristol was voted the top city to 1 The analysis in this section is based on Government Office for the South West (1998) Focus on the South West, HMSO. 2 Black Horse Relocation (1998) Survey of Britain’s Best Cities to Relocate to.

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relocate to, and a further two cities in the South The flora and fauna in the region is of local, national West , Plymouth and Exeter, featured in the top and international importance, and includes : ten. ● some 25 species that are globally important; ● The natural and built environment have been over 700 species that are of national conservation concern: this includes nearly 50 mammals, over 100 shown to be the two most important factors in birds and more than 100 plants; ‘quality of life’, and the environmental assets of ● 34 UK endemic species, 11 of which are endemic to the South West are disproportionately high to its the region (eg western ramping-fumitory and a land area. Box 1.3 below presents a summary of freshwater shrimp, Nipharqellus glenniei); the region’s key environmental strengths. ● the sand lizard - once found through much of the Box SW, but now only found on fragmented heathland in 1.3 Key Environmental Attributes of the South West SE Dorset; ● the greater horseshoe bat - 70% of whose UK Landscape, Historical and Cultural Strengths of population occurs in the SW. the Region The region is rich in landscape, historical and cultural assets: ● There is an enormous length of coastline. Much of this coastline (638 kilometres in all) has been designated as Heritage Coast, more than 60% of the total for England. ● Nearly half the UK's EU designated bathing waters. ● Areas of Outstanding Natural Beauty, that is landscapes of national scenic importance, cover almost a third of the land area, double the proportion in England as a whole. ● The region includes: the World Heritage Sites of Stonehenge, Avebury and the City of Bath; over 6,000 Ancient Monuments, that is 37% of the total for England; and over 100,000 individual listed buildings. ● The landscapes and cultural heritage of the South West are frequently celebrated in culture and the arts, having inspired poetry, prose, painting and music.

Valued Habitats and Species of the South West 1, 2, 3 The South West possesses a high proportion of some of the UK’s rarest and most endangered habitats . These include: ● 62% of the UK’s remaining calcareous grassland (95% of the national resource has been lost); ● 25% of the UK’s remaining lowland heathland (40% of the national resource has been lost); ● 57% of the UK’s remaining flower rich meadows (97% of the national resource has been lost); ● 850 of the UK’s 6,300 Sites of Special Scientific Interest (21% of England’s SSSIs); ● 10 of the UK’s Special Protection Areas (14% of England’s total). In addition, the SW has 39 candidate SAC (Special Areas of Conservation) sites for designation under the EU’s Habitats Directive.

1 The South West Biodiversity Group, The Importance of Biodiversity to the South West. 2 Government Office for the South West (1998) Focus on the South West, HMSO. 3 RSPB, County Wildlife Trusts and South West Regional Planning Conference (1996) The Biodiversity of the South West.

4 2 THE ENVIRONMENT SECTOR

2.1 INTRODUCTION In the UK, the environment industry 2, on a fairly narrow definition, employs nearly 200,000 In this section we examine the nature and people and has become a 10 billion ECU significance of the ‘environment sector’ as it business sector. The UK environment industry stands today. How big is the sector? What are contributes 4 billion ECU of value added to the its components? We have used the term economy 3 . Accelerated growth in this industry ‘environment sector’ to capture the wide range is expected to continue, with estimated annual of firms, organisations and types of activities growth rates of some 8% in both the UK and the which fall within our description: EU 4. Economic data is now collected at the Those firms and organisations which have a direct national level on the narrowly defined relationship with environmental protection activities; ‘environment industry’ within the European either by nature of their business activity or by System for the Collection of Economic providing goods and services to help others minimise Information on the Environment (SERIEE) 5 We their impact on the environment. explore the growing importance of this industry Standard industrial statistical descriptions do in the South West below. not have a separate “environment sector” industry classification; for instance, firms which 2.2.1. The Environment Industry in the South West fall within this category are located in all types Comparable data is unfortunately not available of NACE 1 defined industries. We have at the regional level to provide a direct therefore gathered readily available information comparison of the South West’s environment from a range of sources to demonstrate the size industry with the precise definition of the sector and potential for growth in some activities used at an EU level. Regional data for the which form part of the South West’s private sector is however available from the environment sector. Environment Business Directory for 1999 which The economic activities explored in this section allows an estimate of the number of firms and are: employment in similar, although slightly wider classifications, to be derived. This is shown for ■ the environment industry (Section 2.2); the South West in Table 2.1. ■ business and environmental management The Directory contains nearly 180 entries for (Section 2.3); businesses in the SW. These account for over ■ renewable energy (Section 2.4); 30,000 jobs. Environmental businesses with ■ fewer than 40 employees account for over 60% waste management (Section 2.5); of total businesses in the SW’s environment ■ sustainable transport (Section 2.6); industry. Overall, they contribute nearly £700 ■ the natural environment sector (Section 2.7). million to regional GDP. At expected growth rates of 8% per annum, this could potentially The section concludes with an overall increase to £1.2 billion by 2005. assessment of the economic benefits derived in the South West from the activities explored The traditional environmental industry includes above. It should be noted though that this is by both public and private sector activities. Table necessity a conservative starting point. Other 2.1 overleaf only provides information on areas of economic activity could clearly be private sector activities and hence considerably brought into this exploration, eg, the sea fishing underestimates the level of activity in providing industry. This is a task for further stages. environmental goods and services in the South West. Many of these firms already recognise the 2.2 THE ENVIRONMENT INDUSTRY importance of the environment to their activities and are going further in mainstreaming Rapid growth in EU and UK environmental sustainability issues into their operations and legislation and policy, coupled with businesses activities (see Box 2.1). adopting greener processes and performance standards, has led to a growing demand for the

provision of environmental goods and services. 2 Goods and services included in the EU definition are: air pollution control, This has given rise to the ‘environment industry’, waste water treatment, waste management, contaminated land and water remediation, noise and vibration control, environmental R&D, environmental which comprises those firms which provide monitoring and consultancy services. goods and services which are used for 3 Ecotec (1994) Job Creation and New Occupations: The Environment Sector. environmental protection. 4 European Commission (1997) Building a Sustainable Europe: Communication on Environment and Employment. 5 Ecotec, BIPE Conseil, IFO (1997) An Estimate of Eco-Industries in the 1 See glossary European Union 1994, prepared for DGXI and Eurostat.

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Table 2.1 The Environment Industry in the South West, 1998 Sector No of businesses in employment size bands (1) Total Total staff businesses 1-5 6-15 16-40 41-99 100-250 250+ 1000+ Air monitoring equipment 2 1 5 0 1 0 1 10 1,331 Air treatment and control equip. 2 1 210006 142 Contaminated land 0 0 100001 28 treatment & spills equipment Effluent monitoring equipment 4 1 210109 773 Effluent treatment equipment 3 2 50000 10 169 Energy equipment 3 2 110007 127 Recycling equipment 2 2 110006 124 Software equipment 1 1 100003 41 Solid waste treatment equipment 0 1 010002 80 Other equipment suppliers 2 1 020106 781 Consultancy 19 8 9843126315,524 Laboratories & monitoring 1 0 120206 1,421 Lawyers 00110406 2,598 Waste management 0 3 52221152,910 Water companies 0 0 102306 2,253 Associations & NGOs (2) 00110103 723 Other service providers 2 5 32001131,280 Total 41 28 39 23 9 19 15 172 30,305

Notes: (1) Some companies in the 1000+ employee size band will be UK wide, with a branch in the South West. (2) Two of the entries in this sector have been included in the analysis of the natural environment sector (see Section 2.7). They have thus been excluded from this table. Source: Environment Business (1998) Environment Business Directory 1999

Excluded from the data are the services 2.3 ENVIRONMENTAL MANAGEMENT provided by local authorities and NDPBs (non- In addition to complying with regulatory departmental public bodies). Some NDPBs, requirements, firms are increasingly anticipating such as the Environment Agency and English future developments or going further by Nature, are included below in the analysis of the adopting environmental management systems natural environment sector (see Section 2.7). to assess and reduce their impact on the Box environment. Further developments in supply 2.1 Wessex Water: Committing to Sustainability chain dynamics, whereby larger firms are increasingly seeking commitments about the Wessex Water provides water services to 1.2 million environmental policies of those firms with people and waste water services to 2.5 million people which they do business, are likely to add in five counties across SW England. The company is included in our assessment of the environment impetus to current trends. industry presented above. In addition to providing From a business viewpoint many large services which directly protect and improve the companies now have dedicated environmental environment in the SW, Wessex Water is going departments; small companies are also further and, in 1997, made a commitment to become a sustainable operation. In 1998, its first embracing environmental management. This sustainability report ‘Striking the Balance 1998’ was can lead to substantial cost savings, adding published and it plans to report annually on progress value and increasing competitiveness, often against goals and targets. adding a competitive edge rather than an The company is working on a reporting framework additional burden on industry as has been which will assess its impact on the environment in a assumed in the past. holistic way, as well as capturing the social aspects of their operations. The company currently reports on 2.3.1. Environmental Management in the South West water services, energy and transport and has recently introduced a new Biodiversity Action Plan and The EU’s Environmental Management and climate change indicator. Audit Scheme (EMAS) is a voluntary environmental management and audit

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certification scheme which provides firms with £1,000 per employee, with greater achievements a mechanism for monitoring and improving expected with the extension of six groups in their environmental performance. Five large locations from Bath to Land’s End; companies have EMAS certified sites in the SW, ■ potential savings from the waste nearly 10% of the 61 registered sites in the UK minimisation programme are in the order of as a whole. £8.3 million, and this could be equated with Large firms only account for a small proportion preserving or creating more than 230 jobs. of business activity in the region and other The Environmental Technology Best Practice initiatives to encourage more environmentally Programme, run by ETSU on behalf of the DTI, friendly practices by SMEs have been explored has 21 participants in the South West region. further in the regional context. On average, companies participating in the Green Business Clubs are local fora for small Programme save one fifth of their energy costs and medium sized enterprises which meet to and one quarter of their waste costs. This tends exchange experience and provide advice on to equate to about 4% of the companies’ environmental best practice. Horizon SW acts turnover. To illustrate the significance of this, if as a regional co-ordinator for the numerous the entire manufacturing sector in the SW, with clubs and networks in the SW region, some of a turnover in 1996 of £30 billion, adopted a which are listed in Box 2.2. Recognition of the waste minimisation programme, regional benefits of adopting best practice - particularly savings could be in the order of £1.2 billion. cost savings, which ultimately increase business competitiveness and value added for the region 2.4 RENEWABLE ENERGY - has seen the development of networks and There is significant potential for further partnerships which aim to promote new ideas, development of renewable energy sources in the share experience, and disseminate technological South West, particularly for wind energy in know-how. which the region has a natural competitive Box advantage. The wind energy industry in the UK 2.2 Environmental Networks and Business Clubs in is a small but growing source of employment. the SW The Non Fossil Fuel Obligation (NFFO) ● Avon and Somerset Energy & Environment provides support to renewable electricity Management Group generation. As the development of many ● Business Environment Association Bath & District renewable technologies is still at an embryonic (BEAB) stage, they are likely to require continued ● Cotswold Energy & Environmental Management support of some form to create a sustainable Group market. In the latest round of awards, 16 ● Devon & Cornwall Energy & Environmental projects in the South West Electricity Board’s Management Group (SWEB) area were approved, equivalent to 6% ● Devon Environment Business Initiative (DEBI) of the UK total, and with a generating capacity ● Gloucestershire Green Business Club of about 55 MWs. It is forecast that these ● PAYBACK Environmental Business Association schemes will create up to 3,000 jobs over the ● South Wessex Waste Minimisation Group next 10 years 2. ● Swindon Chamber of Commerce Environmental Business Club ● The Somerset Waste Minimisation Group ● Wessex Environment Business Club ● Wessex Energy & Environmental Management Group ● Western Environment Business Forum (WEB Forum)

PAYBACK was the first UK initiative to pioneer waste minimisation for SMEs and is still considered to be one of the most successful in the country. PAYBACK reports1 that: ■ between 1995 and 1998, more than 60 companies achieved savings averaging over 2 The Cornish Guardian (22 October 1998) Promise of More Jobs in the Wind 1 Payback (May 1998) Newsletter, Issue 10, Groundwork. Sector.

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Table Box 2.3 demonstrates how achieving the 2.2 The South West’s Share of NFFO-5 for potential capacity for wind energy in Cornwall Renewable Energy Sources, 1998 and from energy crops in Devon and Cornwall could create an additional 9,000 jobs in the Type of project Number Generation Region. of projects capacity (MW) Box Landfill gas 5 7.6 2.3 Economic Benefits of Realising Practical Municipal and Renewable Energy Capacity industrial waste 2 28.7 According to National Wind Power Ltd and SWEB, Municipal and industrial the existing five wind farms in Cornwall have a total waste with combined installed capacity of 32MW and supply 3% of heat and power 2 10.4 domestic electricity demand. A general rule of thumb for wealth creation 4 is that a 10MW wind Small scale hydro 2 0.15 farm will bring in approximately £7.5 million to the Large wind 1 4.2 region, of which approximately 25% will be invested Small wind 4 4.4 locally as land rents, local materials, and jobs during construction. If the potential for 70MW was realised Total in South West 16 55.45 by 2008, the level of investment remaining in the Total in England and Wales 261 ~1,200MW region would be in the order of £131 million. Extrapolating from the forecast job creation potential Source: ETSU for the DTI (Nov 1998) New Review,Issue 38 of the electricity generating capacity of the SW’s NFFO approvals (3,000 jobs over the next 10 years from 55MW) to the feasible level of provision from renewables in Cornwall (100MW) and from energy A number of studies have been carried out to crops in Devon and Cornwall (50MW), there is the assess the potential for renewable energy potential to create an additional 9,000 jobs. sources in the region and the key findings are presented below. In addition to increased energy production, there are opportunities for businesses involved ■ Wind energy produced on land not protected in energy efficiency and emissions reductions in by landscape designations such as AONBs in line with international climate change Cornwall could be almost doubled from commitments. Box 2.4 illustrates how one SW 32MW in 1996 to 70MW over the next 10-15 company is successfully capitalising on its years. Other sources of renewables could technical expertise to boost the region’s exports. practically increase this level of provision to 100MW, ie 15% of the county’s 1993/4 Box 2.4 Queen’s Award for Sustainable Energy electricity supply 1. Company in the South West ■ Similarly in Devon, accessible renewable Wiltshire-based Energy for Sustainable Development resources could provide 15-20% of the (ESD) Ltd has won a Queen’s Award for Export County’s electricity supply within the next 10- Achievement for helping governments and 15 years 2. businesses meet the challenge of cutting greenhouse ■ In an assessment of the agro-industrial and gas emissions. The company’s work in the international renewables industry ranges from high- economic factors affecting energy crops in the level policy development to project implementation. SW 3 a potential 300-500 MW of electrical ESD’s export earnings have more than trebled in the generating capacity could be fuelled by last three years. The company believes this is an energy crops in Devon and Cornwall. indication of the significant opportunities being Competition with other land uses and created as governments and businesses gear up to transport considerations are likely to limit the meet the challenge of climate change. It has carried development of energy crop fuelled out work for the European Commission which shows generating plant to 30-50 MW of installed that the export market for renewable energy could be capacity over the next 20 years. worth £150 billion by the year 2020. Source: ETSU for the DTI, New Review, November 1998

1 Cornwall County Council, ETSU, DTI (1996) Land-use Planning for Renewable Energy in Cornwall. 2 Devon County Council, West Devon Borough Council, DTI (1993) Planning for Renewable Energy. 3 CSM Associates (1995) An Assessment of the Agro-Industrial and Economic Factors Affecting Energy Crops in South West England, for the CEC Altener Programme. 4 National Wind Power Ltd (1998) Written Communication

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2.5 WASTE MANAGEMENT Much work still needs to be done to assess various options for complying with the The proposed EC Directive on Landfill will proposed Directive. Alternative disposal require the UK to reduce significantly the methods need to be explored alongside amount of biodegradable waste going to measures to minimise resource use and landfill. The Directive sets out a timetable for encourage recycling activities. A number of stringent reduction targets. This has local authorities in the South West have already implications for the South West, as it does for set recycling targets and provide kerbside the rest of the UK and the EU. The UK is collections and composting schemes. A number amongst the top 5 EU Member States where the of local and regional initiatives also exist, and majority of waste is disposed of to landfill. Table the work being undertaken by The Recycling 2.3 presents figures for the SW which show that, Consortium, and opportunities for further on average, local authorities dispose of 90% of developments in community-based waste household waste by landfill. management and eco-industrial parks are outlined in Box 2.5. The implementation of the Landfill Directive Table offers much potential in terms of opportunities 2.3 Landfilling of Household Waste in the for creating new employment, increasing South West competitiveness by reducing costs, and stimulating innovation and new markets for Local authority Volume of Proportion of waste collected household waste reducing and recycling waste. US studies on (tonnes) 1996/7 landfilled (%) municipal waste have shown that recycling offers the highest employment potential and Bath & North East landfill the lowest. The substantial cost savings (1) Somerset Council 79,340 82 to SMEs in the South West participating in Bournemouth Borough Council 98,713 100 waste minimisation programmes have been Bristol City Council 175,000(1) 93 referred to earlier in Section 2.3.1. Cornwall County Friends of the Earth 1 have estimated that a 40% Council 217,000 94 recycling rate in the UK would create 2,450- Devon County 11,550 extra jobs; with greater job creation Council 374,522 85 potential if other wastes and composting Dorset County Council 194,300(1) 67(1) schemes are considered. Based on this, we have Gloucestershire estimated that achieving the same target in the County Council 220,000 90 SW could create an additional 675 jobs in the Plymouth City region (see Box 2.5). Council 104,646 90 Box Poole, Borough of 76,900(1) 80(1) 2.5 Recycling in the South West: North Somerset Council 102,000 93 Innovation and potential Somerset County Council 240,000 90 The Recycling Consortium. South This is a not-for-profit company based in the Gloucestershire CREATE centre in Bristol. It promotes community- Council 126,530(1) 95 based waste reduction, re-use and recycling in Swindon Borough Bristol, South Gloucestershire, North and North East Council 47,000 92 Somerset, and Bath. It currently organises a range of Torbay Borough networks including the Community Recycling Council 60,000 89 Network, Furniture Recycling Network (eg the SOFA Wiltshire County project to collect unwanted furniture and household Council 186,700 95 appliances and pass them to low income households) and Children’s Scrapstore. These demonstrate the Total/average 2,302,651 89% range and scale of existing activity within the community waste management sector. The Notes: Recycling Consortium estimates that expanding and (1) Data refers to 1997/98 developing their existing activities could generate a Source: Jackson C (1998) The End of the Throw-Away Society? The EU further 1,500-2,000 jobs in the region. Draft Directive on Landfill and its Implications for the South West of England

1 FoE (1994) Working Future? Jobs and the Environment. Quoted in RSPB (1999) The Environment and the Regional Economy: Opportunities for RDAs.

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The Recycling Consortium is also assessing the scope term ‘predict and provide’ approach to traffic for developing reprocessing capacity within the growth which has had detrimental effects on the Region and is considering the development of an environment and human health and is eco-industrial park in Bristol to reprocess newspaper, unsustainable in the long term. plastics, textiles and glass. It is estimated that there is potential for a further 2-3 such parks in the region, Investment in all transport infrastructure each generating about 80 jobs. An application for EU contributes to economic wealth and creates funding for a feasibility study is under consideration. employment opportunities during construction, The work of the Recycling Consortium is nationally operation and management. Different transport recognised and it currently receives funding from the options vary in their economic impacts, and also DETR and UK Waste to develop a toolkit for other in their environmental and social impacts. The community organisations and local authorities to develop community-based actions to reduce and basis of an integrated strategy is in a recycle waste. Members of the Recycling comparative assessment of all transport options Consortium are significant employers in the waste based on the full range of economic, management sector and the activities of one of their environmental and social benefits. members is outlined below. There is growing evidence that more Avon Friends of the Earth. environmentally benign transport options, such Avon FoE has been involved in developing kerbside as investments in public transport, can create collection since 1979 in conjunction with the local authorities. Their service agreements with Bristol, more jobs than the more environmentally 3 Bath and NE Somerset, South Gloucestershire, and damaging options such as road building . It Stroud District currently provide 165 local jobs with has been estimated that shifting the modal split substantial scope for further development. towards public transport and reducing private traffic growth will provide net employment The Job Creation Potential of Recycling in the gains. South West The Council for the Protection of Rural England The UK collects almost 24 million tonnes of (CPRE) 4 has predicted future traffic growth on household waste per annum 1, 14% (3.4 mn t) of rural roads 5 at the county level throughout the which was recycled in 1995/6. Increasing this to UK. The forecast growth rates for the South achieve a UK-wide recycling target of 40% (9.6 mn t) West, based on a high traffic growth scenario, will require the recycling of an additional 6.2 million are provided in Table 2.4. This shows that tonnes. Achieving the 40% target has been estimated average traffic growth rates in rural areas in the to create 2,450-11,550 extra jobs (average 7,000 jobs). This provides an average of 1 job for every 885 South West could potentially increase by an tonnes of household waste recycled. average of 160% by 2025 in the absence of Local authorities in the South West collect 2.3 million measures to reduce transport growth rates and tonnes of household waste per annum (see Table 2.3). dependency on private passenger travel. Assuming a similar rate of recycling at present as the Examples of initiatives to stimulate more UK average (14% ie 0.3 mn t), achieving 40% (0.9 mn sustainable forms and patterns of transport in t) would involve recycling an additional 598,000 rural and urban parts of the South West are tonnes of household waste, potentially creating an provided in Box 2.6. additional 675 jobs. Achieving these targets requires investment in local recycling capacity, which will Table help to ensure that the majority of these jobs will be 2.4 Forecast Traffic Growth on Rural Roads in created locally or regionally, and that the economics the South West (1994-2025) are improved by keeping transport costs to a minimum. County Average number Increase in rural of vehicles per road traffic by day on average 2025 from 2.6 SUSTAINABLE TRANSPORT rural road in 2025 1994 levels The Government’s recently published White Avon >1,850 191% Paper on sustainable transport, ‘A New Deal for Devon 850-1,349 136% Transport’2 recognises the important role transport plays in supporting a strong and Dorset >1,850 200+% prosperous economy and in improving the Cornwall <850 141% quality of life. It also recognises that transport Somerset <850 141% policy in the past has been driven by a short Wiltshire 850-1,349 146%

1 Jackson C (1998) The EU draft directive on landfill, and its implications for the SW of England. 3 RSPB (1999) The Environment and the Regional Economy. 2 Department of Transport, Environment and the Regions (1998) A New Deal 4 Council for the Protection of Rural England (1996) Traffic Trauma Map. for Transport, HMSO. 5 Defined as all non-built up C roads and unclassified roads.

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Box ■ at least 1,376 jobs (equivalent to 1,201 FTE) 2.6 Sustainable Transport Initiatives in the South West are directly employed in the natural Company transport plans environment sector in the SW; Hewlett Packard in Bristol has drawn up a Green ■ this suggests that the natural environment Commuter Plan in conjunction with Transport 2000 sector employs about 1 in 1,000 people in the to tackle congestion, improve urban air quality, and region; reduce employees’ dependency on private car use1. ■ Public transport campaign analysis of employment trends show more The largest bus company in the South West, First than 80% of organisations surveyed have Group, based in Bristol, has carried out a successful stable or increasing levels of employment; campaign to stimulate use of public transport and, as ■ a conservative estimate of annual expenditure a result, this has led to a significant increase in bus travel which includes a high proportion of high by the surveyed firms is in the order of £43 income group users2. million. Promoting walking and cycling This represents a contribution of £26 million to The Tarka Trail is a good example of promoting regional GDP (see Section 2.8). walking and cycling for leisure and recreation 7 purposes and at the same time boosting jobs and A case study illustrating the economic and tourism in the South West. The Tarka Trail Cycleway environmental benefits of some of this now ranks amongst North Devon’s major tourist expenditure on the protection of the natural attractions. Over 150,000 cycle journeys were made environment is shown in Box 2.7. in 1995-96 3 and 37,500 walkers also used the trail. Box Demand responsive transport 2.7 Heathland Management in Dorset A ‘flexible’ bus service, called the ‘Wigglybus’, has been successfully trialled in Wiltshire. The Royal Dorset’s heaths are of extremely high conservation Mail is also running a number of experimental Post importance, supporting a range of rare and often Buses, which are postal vans which deliver people as specialised species of flora and fauna. The area of well as letters and parcels 4. The concept of demand heathland in south-east Dorset has declined responsive transport (DRT) is gaining popularity and dramatically over the last two and a half centuries. has also been tested in Belgium, Finland and Italy. The remaining resource is threatened by neglect due DRT can have a positive impact on local economies to the loss of traditional management practices. and can contribute to reviving rural communities, Recent attempts by the RSPB and other organisations where problems of access and poor public transport to restore and manage Dorset’s heathlands have had services are often key concerns. a positive effect on the county’s economy: ● RSPB currently spends £300,000 per annum on 2.7 THE NATURAL ENVIRONMENT SECTOR heathland management in Dorset. This work is estimated to support 27 FTE jobs directly and The natural environment sector includes all indirectly in Dorset. those organisations and businesses directly ● Heathland management by other organisations involved in the protection and enhancement of involves local expenditure of more than £1.2 the natural environment. A recent study 5 by million per annum, providing 38 FTE jobs the RSPB has assessed the economic importance directly, and approximately 67 FTE in total. of this sector in the South West region. This The future of Dorset’s heathlands requires continued study surveyed a wide range of organisations public funding for heathland restoration and including government agencies (such as the management. In the long term, heathlands will be Environment Agency and English Nature), non- more secure if they can be managed not only as governmental organisations (NGOs) (such as nature reserves, but as integral parts of a productive land use system, most likely involving extensive the British Trust for Conservation Volunteers grazing and in turn supporting environmental (BTCV) and the Wildlife Trusts), local tourism. authorities and private companies 6. The key findings from the survey are as follows: The findings from the RSPB survey 1 Transport 2000 South West (1999) Personal Communication. undoubtedly underestimate the scale of the 2 Transport 2000 South West (1999) Personal Communication economic benefits from the natural environment 3 West Country Tourist Board (1998) A Strategy for Tourism in the South sector. For example, initial figures from The West 1999-2003. National Trust 8 indicate that in the South West 4 Countryside Commission South West (1998) Special Transport Issue, Winter 1998. 5 RSPB (1998) The Economic Importance of the Natural Environment Sector 7 RSPB (1998) The Economic Importance of the Natural Environment Sector in South West England. in South West England. 6 The types of organisations/firms involved in the natural environment sector 8 Tourism Associates (1999) Valuing our Environment: A Study of the are, on the whole, excluded from the traditional environment industry Economic Impact of Conserved Landscapes and the Direct Value of The described in Section 2.2, although there may be a small degree of overlap for National Trust in the South West. Draft Report. Note: the RSPB study environmental consultancies. included one of the county-based National Trusts in the region.

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it spends nearly £30 million of which £18 Box million is spent within the region. In addition, 2.8 The value of voluntary activities in the natural the range of activities undertaken by The environment: National Trust in the South West directly and BTCV Conservation Working Holidays indirectly supports 5,130 FTE, generating an estimated output of £113 million to the regional British Trust for Conservation Volunteers is a economy. national organisation running conservation working holidays/weekends throughout the UK. Volunteers The two National Parks in the South West - pay a small fee to go on a holiday. Volunteer work is Dartmoor and - and 10 of the 12 on environmental projects. AONBs for which data is available 1 directly Income from volunteers on schemes in the South employ some 200 people and jointly spend over West is 100% retained in the region’s economy. Some £6.7 million per annum on projects to conserve is retained by BTCV. However, a large proportion is and protect the natural and built environment, passed on to local accommodation providers and and promote and manage sustainable tourism spent on local produce and services. Total expenditure by volunteers in 1997/8 was just over £1 and recreation. In addition, volunteer days in million. The key economic data for the same period the two National Parks and the Cotswold are: AONB alone are the equivalent of a further 40 ● 31,266 volunteers provided 15,980 work days; FTE. Moreover, the management of these ● the value of the volunteer labour, using DETR’s protected areas levers new money into the estimated value of £46 per day, is £735,000; region. National Parks and AONBs together ● additional spending by the volunteers on local bring in substantial amounts of European services of £239,700, assuming an average spend Regional Development Funds (ERDF), Lottery, of £15 per day (based on South West Coast Path Millennium and MAFF’s Environmentally analysis). Sensitive Areas (ESAs) spending to the area by providing funding or project management by Beach Watch ‘97 core staff. Reader’s Digest Beachwatch is a practical conservation initiative, organised by the Marine 2.7.1. The Voluntary Sector and Conservation Conservation Society with sponsorship from The South West also has a very active voluntary Reader’s Digest. Launched in 1993, it aims to raise awareness about the problem of marine and coastal environmental sector. This includes both litter, monitor levels and sources of litter on Britain’s volunteer inputs to maintaining and protecting beaches and encourage action to reduce marine the region’s natural and built environment in pollution at source. protected areas and along the coastline, and 508 volunteers cleaned litter from 42 of South West attracting conservation volunteers into the Region’s beaches over 2 days (1 weekend). This region. As well as contributing to the quality of project has taken place each year for the last 7 years the region’s environment, the latter also creates and the number of volunteers and beaches cleaned employment and income opportunities in the rises each year. The outcome is a cleaner image for region and helps to diversify traditional tourism the area, with knock-on effects for the tourism sector, sectors (see Section 4). The economic increased public awareness of the value of the coastline and, particularly, of the importance of contribution of the voluntary sector has been waste management for fishing operators. estimated for the following case studies (Box 2.8) Source: Marine Conservation Society - Reader’s Digest Beach Watch ‘97 and is included in the summary of economic (from the 1997 Nationwide Beach-Clean & Survey Report, Marine benefits in Section 2.7. The two schemes Conservation Society/Readers Digest). examined together contribute £800,000 and they serve to illustrate the potential for the voluntary Coral Cay Conservation Sub Aqua Club sector as a whole. The Coral Cay Conservation Sub Aqua Club was formed 8 years ago, mainly as a result of the annual expedition, which received substantial funding from English Nature. The Club undertakes trips, typically over 2 weeks, to carry out survey work in and around the archipelago. A few examples of projects include surveys of the health and distribution of seagrass (Zostera marina) beds and the production of a photographic collage of the Scillies’ population of the Sunset Cup Coral (Leptopsammia pruvoti), a nationally rare and protected coral which is only known in two 1 ERM (1998) Protected Areas Funding Study, for the Countryside Commission. Excludes Quantock Hills and Isles of Scilly AONBs. locations. In 1997 the Club extended its involvement

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with the Marine Conservation Society’s Box SEASEARCH project and assisted in surveys of the 2.9 Projections of Economic Benefits in the Dorset coast. Environment Sector In both 1997 and 1998, 15 volunteers stayed for Section 2.2: The Environment Industries between 3 days and 2 weeks. 1997 figures were the ● same. Approximately £4,500 was spent in the local Rapid growth in industries providing area, excluding volunteers’ own expenditure on environmental goods and services is expected to items such as tourist gifts, food and drink etc. increase the value of this sector from £700 million at present to £1.2 billion by 2005. Section 2.4: Renewable Energy 2.8 SUMMARY OF REGIONAL ● It is forecast that the latest round of renewable ECONOMIC BENEFITS energy projects supported by the NFFO in the The quantitative data presented in this section South West will create up to 3,000 jobs in the next 10 years. has been analysed to identify the level of ● employment associated with the specific Realising the potential capacity for wind energy in Cornwall and from energy crops in Devon and activities examined, and their contribution to Cornwall could create an additional 9,000 jobs in regional GDP. A summary of the key findings is the South West - this underestimates the potential provided in Table 2.5 and Box 2.9. This is based for energy crops in the Region overall. on readily available information and only covers Section 2.5: Waste Management a small part of the wide range of businesses and ● Increasing recycling activities to achieve a 40% activities which make up the South West’s reduction in the amount of waste going to landfill environment sector. in the South West could create 675 local/regional Table 2.5 shows that the current economic jobs. ● benefits from some of the environment-related Assistance to accelerate the uptake of activities examined provide around 38,000 FTE environmental management and waste minimisation programmes could lead to regional jobs in the South West and add almost £835 cost savings in the order of £1.2 billion in the million to regional GDP. It has also been manufacturing sector alone. possible to quantitatively assess the growth potential in a number of these areas where there are opportunities for developing and expanding emerging industries and these are summarised in Box 2.9.

Table 2.5 Current Economic Benefits of the South West’s Environment Sector Activity Employment Expenditure Output (FTE) (£m) (£m) Section:2.2: Environment industries 31,555 694(1) Section 2.7: Natural environment sector (2) 6,330 26.7 138.8(1) Total 37,885 832.8

Assumptions: (1) based on average GDP/worker of £22,000 pa (2) includes RSPB findings and National Trust data

13 3 REGENERATING THE PRIMARY SECTOR

3.1 INTRODUCTION abandonment in marginal areas, will have significant effects on farm wildlife and Some sectors which have been reliant on natural landscape character. resources and the environment such as agriculture and sea fisheries are in decline both Decline in the agricultural sector is a function of nationally and in the South West, particularly in a number of trends affecting farming in the UK the more rural areas in the west of the region. and the EU which stem largely from the high levels of financial support to agriculture and, A number of initiatives at national, regional and more recently, increased competition in world local level are using environmental programmes markets. In addition to favouring larger farms as a driver for regeneration and development at the expense of smaller holdings, these trends across these declining primary sectors. This have also provided incentives to adopt intensive section highlights the importance of some of agricultural practices which are detrimental to these programmes and initiatives, and focuses the environment. Furthermore, farming in the on three areas of opportunity where South West is characterised by relatively small diversification of the traditional resource base farms with an ageing farming population and illustrates possibilities for the way forward: high levels of business failure in vulnerable ■ agriculture (Section 3.2); farming enterprises such as lowland livestock ■ regional produce and countryside products farms 2. The impact of the BSE crisis has also (Section 3.3); been acute in the South West where livestock farming predominates. ■ forestry (Section 3.4). Future reform of the CAP is high on the EC These areas can lead to the joint production of agenda and is expected to shift the emphasis commercial outputs and environmental further away from production support, with the attributes. The economic benefits from the likelihood of farmers receiving payments for examples included are summarised in Section acting as environmental guardians. A larger 3.5. Many other initiatives in these three areas proportion of EU funding in rural areas will be could be reviewed and included in the analysis. focused on rural development and Furthermore, the scope of the analysis could be environmental projects, rather than agricultural widened to explore the benefits from activities production and major infrastructural which seek to diversify economies in other programmes. The UK’s Agriculture Select sectors such as, for example, sea fisheries. Committee has found that conserving rural Tourism also plays a key role in the scenery and wildlife, along with forestry and diversification of the economy and is discussed timber products, food manufacturing and in Section 4. marketing, tourism and even light industry could be the key for agricultural diversification 3.2 AGRICULTURE and competitiveness 3. Agriculture is a significant sector in the South This section considers the role of agri- West’s economy. It accounts for almost 4% of environment schemes in supporting farmers regional GDP compared with 2% for the UK as a and providing environmental benefits, the whole. Agriculture occupies more than three opportunities from organic farming and the 1 quarters of the region’s total land area . potential for further benefits from expansion, Current pressures and future developments in and the benefits from developing regional this sector thus have significant implications for branding and encouraging local purchasing much of the South West’s valued habitats and networks. landscapes. Continued decline in agriculture will have 3.2.1 Agri-Environment Schemes significant economic, social and environmental Agri-environment schemes provide payments to impacts. Declining farm incomes and farmers to improve the environmental employment add to the pressures already facing performance of farming or to maintain the west of the region, particularly in the more traditional, environmentally-friendly forms of remote rural areas. Unemployment and out- land management. They are an important migration will further reduce the viability of mechanism in seeking environmental gain and remote rural areas and the provision of rural thereby maintaining the viability of existing services and facilities. Continued or further 2 Soil Association (1998) Go-Organic South West Feasibility Study: Executive intensification of farming, or indeed land Summary. 3 The Independent newspaper (20 January 1999) Farmers told to diversify or 1 GOSW (1998) Focus on the South West. go under.

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farms, encouraging diversification and creating the potential for creating 13,052 person years of new jobs in the wider economy. employment from placing 30% of agricultural land nationally under the Countryside Stewardship Current information shows that over 7,000 Scheme. agreements under the various agri-environment In a study undertaken by CEAS 4 of the socio- schemes available have been entered into in the economic impact of the Countryside Stewardship South West, although a small proportion of Scheme, net changes to the use of farm labour were farmers may be participating in more than one equivalent to 50 FTE when extrapolated to the whole scheme. These agreements cover some 225,000 of England. The increased use of outside contractors hectares, equivalent to 12% of the South West’s and advisors was more significant and equivalent to hiring 48,250 person days (about 200 FTE) nationally agricultural land area (1.8 million hectares 1). per year. In addition, down stream benefits were Table 3.1 provides a summary of uptake and experienced by local business, mostly small scale, expenditure on agri-environment schemes in the with an estimated additional 220 full time jobs South West Region. There is obvious scope for created nationally, for an expenditure of £5.7 million. increasing the proportion of farmland under The total number of jobs created is therefore environmental management as a means of estimated at 1 job per 1,666 ha. realising the potential for economic, social and South West environmental benefits. Applying the above analysis to the 27,935 hectares of land in the Countryside Stewardship Scheme in the Table South West provides 17 FTE jobs in the region. This 3.1 Expenditure and Uptake of includes jobs sustained in addition to direct and 2 indirect jobs created. Further extrapolation to the Agri-Environment Schemes total land area under various agri-environment Scheme No. of Area Annual schemes in the region (223,920 ha) indicates an agreements covered Payment associated employment level of 134 FTE. Increasing (ha) 1997/98 the proportion of land under environmental (£000s) management from 12% at present to 30% (ie 540,000 ha) would create an additional 190 FTE jobs. Countryside Stewardship The Economic Impact of Environmentally Sensitive Scheme 1,517 27,935 3,164 Area Schemes in the South West Environmentally Studies of ESA Schemes in the Somerset Levels and Sensitive Areas 3,878 175,000 11,973 Moors and West Penwith 5 show significant economic benefits to the agriculture sector. For the Somerset Habitat Scheme 150 2,590 - Levels and Moors, farmers would experience an EN Management average net income loss of £82 per hectare if they Agreements 475 15,490 932 were to leave the ESA. Full time employment would EN’s Wildlife fall by 28% and part-time employment by 20% in the Enhancement absence of ESA. There would be a 9% increase in Scheme 118 2,905 283 casual employment. For West Penwith, farmers would experience an average net income loss of £63 Total 6,138 223,920 16,352 per hectare if they were to leave the ESA.

The findings of some studies which have been 3.2.2 Organic Farming undertaken to assess the socio-economic The market for organic food is growing rapidly. impacts of some of these schemes are Over the last nine years, sales of organic food in summarised in Box 3.1. the UK have more than doubled from £100 Box million in 1993 to £260 million in 1997. By 2002 3.1 Economic Impacts of Agri-Environment it is estimated that organic food will account for Schemes 7-8% of the total UK food market, with a potential retail value of over £1 billion 6. Countryside Stewardship Scheme UK Organic farming contributes to sustainable development by delivering economic, A national study undertaken by Safe Alliance 3 has demonstrated the potential for job creation through environmental and social benefits. The labour the Countryside Stewardship Scheme. This found intensity of organic farming is higher than modern farming methods. Increased

1 SWRPC (1998) Revised Regional Strategy for the South West, Consultant 4 Countryside Commission, CEAS Consultants, University of Reading (1996) Draft. Socio-Economic Effects of the Countryside Stewardship Scheme. 2 Data provided by FRCA and English Nature, 1998/99. Excludes data on 5 Quoted in RSPB (1998) The Economic Importance of the Natural uptake of Organic Aid Scheme. Environment Sector in South West England. 3 Safe Alliance (1997) Double Yield: Jobs and Sustainable Food Production. 6 Soil Association (1998) The Organic Food and Farming Report, 1998.

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employment is attributable to both the ● increase the proportion of product where added production processes used and new kinds of on- value takes place in the region; farm activities such as processing and direct ● develop supply chains for livestock, dairy and sales. Increased revenue from price premiums crops; on organic food also help to maintain ● increase employment. employment and increase farm incomes. The study identifies some important barriers to developing organic farming in the region including In the South West, there is almost 13,500 ha investment and infrastructure barriers and the under organic farmland 1. At only 0.7% of the availability of information and advice on conversion. utilised agricultural area, there is significant Elements of the programme include: potential for expansion. At the same time, ● SW Organic Business Centre to co-ordinate interest in organic farming in the SW is high. advice, training, marketing, regional brand The Organic Conversion Information Service, development etc; funded by MAFF, receives its largest number of ● a SW organic grants scheme; enquiries from farmers in the South West (28%), ● an organic training initiative provided by the compared to any other region in England and Duchy College of Agriculture. Wales. Furthermore, the characteristic farm The proposed programme has the potential to create types in the region - small scale, low production 157.5 FTEs and sustain 86 FTEs. intensity, mixed grass-based enterprises - are well suited to organic management 2. Employment Benefits of Organic Conversion: examples from two farms The Soil Association has recently completed a feasibility study which evaluates the Two examples 3 of the economic benefits of organic opportunities for expansion of organic farming conversion - on a small and large farm - are in the South West’s Objective 5b region highlighted below. ● (Cornwall and parts of Devon and Somerset). Eastbrook Farm near Swindon is a 1,336 acre farm and was put under organic conversion in 1984. The regional marketing opportunities are also The farm enterprise has diversified substantially explored, seeking to increase the amount of and has a successful meat processing and added value which takes place within the marketing business. Employment has increased region. The study estimates that from 2 family workers and 4 full-time staff before implementation of the proposed sectoral conversion to 11 full time staff on-farm and a development programme (see Box 3.2) will further 12 at the Eastbrook Farm Organic Meats create or safeguard about 250 FTEs. The business. example of Eastbrook Farm in Box 3.2 shows ● Manor Farm in Dorset is a 270 acre farm which how conversion and diversification can converted to organic production between 1984 effectively lead to a four-fold increase in and 1988. It has dairy, ewes, feed wheat, straw and wheat reed operations and also processes its employment in a traditional family-run own milk in addition to milk from other farms in business. the locality. Since conversion, staff levels have Box increased from 2 to 5.6 FTEs. 3.2 Organic Farming: a south west opportunity: 3.3 REGIONAL PRODUCE Feasibility Study into Organic Farming in the SW’s Objective 5b Region 3.3.1 Developing Regional Brands The Soil Association recently carried out a feasibility A number of initiatives are attempting to study for the establishment of a sectoral development programme for organic food increase value added and open new markets for production and processing in the SW region with the agricultural produce from the South West. support of the EAGGF Objective 5b funds. An These initiatives involve developing a brand assessment of market opportunities found name which is readily associated with the high considerable potential for expansion, particularly for quality environmental image and/or cultural livestock, dairy, horticulture and the associated associations of the South West, such as local development of ancillary industries. cheeses, with joint marketing initiatives which The objectives of the proposed programme are to: bring together smaller producers to overcome, ● double the number of organic farmers and for instance, the far South West’s peripheral organic farmland in the region; location. Forming co-operatives helps small producers by 1 Soil Association, personal communication (1999). Based on Soil Association guaranteeing the volume sought by certification of 73% of organic producers/land area in the region. 2 Soil Association (1998) Go-Organic South West Feasibility Study: Executive Summary. 3 Safe Alliance (1997) Double Yield: Jobs and Sustainable Food Production.

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supermarkets and in the long term is leading to benefits for landscape and biodiversity. increased sales volume and prices. Initiatives Since 1994 turnover has grown by an average of 25% such as Cornish King, marketed by South West per year. In 1996, Wild Beef had a turnover of £60,000 Horticulture 2000 Limited, are crucial as they plus, and £75,000 was anticipated for 1997. Annual bring together growers from all over the West turnover is expected to grow further to £150,000 Country. Cornish King has cornered 35% of the within 5 years. Currently the business makes a 30% margin on total turnover. West Country potato market in under two years. A government supported initiative, Taste of the West, focuses on specialist, high value added 3.3.2 Encouraging Local Purchasing produce, using the South West location as a key The UK government’s food chain Foresight selling point. Panel highlighted the major opportunities to Box add value in local agriculture and horticulture 1. 3.3 Using the environment to brand the region Adding value by local processing of locally produced food has been chosen as an area of Cornish King focus by the region’s competitiveness network, Cornish King (CK) is a registered trademark, reducing transport and increasing local launched in May 1996 with the aim of promoting employment 2. Recognising the opportunities to quality horticultural produce from Cornwall using establish stronger links between local producers Cornish King as a brand name. The project receives and local consumers in the South West, approximately 50% public and 50% private sector funding. particularly in the tourism and leisure sector, through increased local sourcing by More than 60 growers are currently involved. Cornish King has a significant input in keeping a supermarkets and major international tourist Cornish produce market share with the multiple hotels, is a key factor. Meeting the demanding retailers and in helping to maintain the volume of quality standards involved will both enhance sales against stiff European competition. The brand the competitiveness of the sector and provide name is getting stronger in a number of markets. environmental benefits by reducing food air The main crops are early potatoes, cauliflower and miles and road freight and their associated spring greens. Not all supermarkets take every crop environmental impacts. but, on the whole, they are sold in most South West regional supermarket stores and in some stores The University of Plymouth Business School has nationally. Other summer Cornish King crops are estimated the value of local purchasing in the also sold locally. SW 3. Around 2,000 additional jobs could be With the success of Cornish King, a linked, new generated in the SW if the proportion of local brand will be developed in 1999 for other food agricultural and food products purchased by sectors such as meat, fish, dairy, bakery and other local retailers and hotel and catering preserves. establishments was increased by 10%. This Consumer market research shows that 32% of alone would contribute an additional £44mn to consumers would buy the Cornish King branded vegetables if they saw them at point-of-sale. This the South West GDP before the impact of initial demand figure is almost as high as for the diversification is taken into account. more established Jersey Royals brand, at 47%. A recent study 4 also demonstrates the potential Produce from Cornwall was seen to be associated and keen interest for increasing local purchasing with a positive image of very fresh food, excellent quality and flavour. in the South West. Consumers showed a strong preference for local produce. Preferences were Wild Beef further strengthened for local organic produce. ‘Wild Beef’ was set up in 1992 with the aim of The majority of producers surveyed were increasing the margin of profit and turnover of the positive about the benefits of seeking local farm by taking control of the whole production and markets for their produce. retail process and by giving a coherent and integrated brand and image. The business, which is There is a need to further explore the types of sited within the boundaries of the Dartmoor support needed to effectively harness the National Park, is concerned with the breeding and potential economic benefits which increased rearing of native breeds of cattle (such as the South local purchasing offers. Experience with local Devon and the Welsh Black), and the sale of beef labour schemes in the SW have had mixed products locally and across the south of England and South Wales. 1 Foresight Food Chain Group Report (1998), Office of Science and Technology. Traditional extensive stocking methods are an 2 Government Office for the South West (1997) Changing for the Better. essential way of maintaining Dartmoor’s habitat and 3 In West Country Business Guide: Special Publication (1998), by West landscape value by controlling the spread of gorse Country Press. 4 The Soil Association (1998) The Potential for Local Purchasing in Mid- and bracken, thereby providing environmental Somerset, for South Somerset District Council.

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results and the more successful schemes, such as ● indirect employment in sectors associated with ‘Business Match’ set up by Bristol City Council, forestry, including recreation and tourism; may provide ideas for the type of approach ● the maintenance of rural economies, through the which works well. One local purchasing incomes received from employment; initiative, the Dartmoor Direct Initiative, helps ● inducing inward investment in urban areas, as local farmers develop new markets locally by trees increase the appeal of the area. encouraging them to use the Internet to market Environmental benefits their produce directly to hotels and homes. These include reducing pollution, enhancing the beauty of the countryside, revitalising derelict and 3.3.3 Countryside Products degraded landscapes and enhancing wildlife A recent study and initiative by the Countryside habitats. Commission has sought to establish whether Social benefits there is a market for ‘countryside products’ in Forests and woodlands provide opportunities for the UK. According to their definition, these are recreation and sporting activities, improved quality products which originate from environmentally of life, and an attractive setting for housing and responsible land management and which can industry. encourage local economic activity or a sense of regional identity. These might include The South West region has a greater woodland traditional breeds and crops (see Box 3.3), cover (10% of the land area) than the UK organic produce and regionally branded average (7.5%). The region includes two of products. Such products would contribute to Britain’s 12 Community Forests - the Forest of the environment and economic livelihoods in Avon and the Great Western Forest - and one of rural areas. The study found an increasing Britain’s largest and finest multi-purpose forests interest in such products both from consumers in the Forest of Dean. and retailers, and a greater presence of the types Some £3.3 million per annum in grants from the of farm produce which would qualify for a Forestry Commission is supporting nearly countryside product label and associated 15,000 hectares of new planting in the SW premium in the South West than any other part region (see Table 3.2). The Woodland Grant of the country. Scheme and Farm Woodland Premium Scheme are available to farmers and other landholders 3.4 FORESTRY and, in addition to the direct economic benefits, Forestry offers many opportunities for economic can help to diversify and support farm incomes benefits from the sector itself and associated and contribute to ‘keeping farmers on the land’. upstream and downstream activities. Forestry provides additional practical benefits to Opportunities exist in relation to the farmers by providing wood products for on- management of existing woodlands and new farm use such as fencing. planting. The Government’s new forestry strategy for England explicitly recognises the Table wide range of economic, environmental and 3.2 Grant Support to the Private Sector 1997/98 social benefits which forests and woodlands can Area No. of Area Support provide. These are highlighted in Box 3.4. approvals covered (£m) Box in SW (ha) 3.4 Woodlands and Forests: benefiting the environment and the economy Woodland Grant The Government’s new forestry strategy for Scheme England1 provides a policy framework for Severn Wye sustainable forest management which recognises the and Avon wide range of benefits which forests and woodlands Conservancy 223 9,845 1.2 can provide. This spans: West Country Economic benefits Conservancy 350 5,000 2.1 Total 573 14,844 3.3 These include: Farm Woodland ● direct employment created within the forestry Premium sector through increased afforestation and Scheme 928 3,920 - management of existing woodlands;

Source: Forestry Commission (1999), personal communications 1 Forestry Commission (1998) England Forestry Strategy: A New Focus for England’s Woodlands.

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New planting adds to existing employment Box opportunities in the forestry sector as new 3.5 Woodlands and Forests: linking the forests are thinned, harvested and replanted, environment and the economy: and through the development of subsequent The Working Woodlands Initiative 1 processing. In England, the range of forest- related activities, from establishment and Working Woodlands is a £2.94 million programme harvesting to timber haulage and processing, partly financed by the EU and UK central and local employed 19,410 people 1 in 1994. As the South government. It aims to develop jobs and wealth 2 from the neglected resources in the many small, West contains 19% of England’s forest cover, semi-natural woodlands that are scattered this indicates a level of employment in the throughout rural Cornwall, Devon and Somerset. forestry sector of about 3,690 employees. Working Woodlands directs investment and training Employment in the sector is projected to grow to reconstruct the small woodlands supply chain and stimulate market demand for its products. In the last nationally at the rate of around 1,000 jobs per 12 months, Working Woodlands Project has offered year between 1998 and 2016, based on around £370,000 of grants to 64 enterprises. If grant expanding timber supplies and investment in aid is added to the money that the enterprises are processing. A UK-wide survey of employment putting up themselves, the project has stimulated in the forestry sector has found that 86% of more than £930,000 in the local small woods sector. forestry employees and 25% of contract labour More than 212 jobs have either been safeguarded or live within 10 miles of where they work. created and there is a projected increase in turnover in the rural economy of £2.7 million per year . Forest Enterprise is providing a wide range of environmental education events and also carries Economic Benefits of the South West Forest 4 out conservation activities. Expenditure on Project these activities in 1997/98 was around The SW Forests project area covers a total of 280,000 £1,507,000. These figures are over and above hectares and is located entirely within the boundary expenditure on the conservation and landscape of the Objective 5(b) programme area. The project enhancement activities undertaken as an uses forestry planting and management as a catalyst integral part of day-to-day forest management for positive land use change, and to stimulate other sectors of the rural economy. The overall objective is practices. In addition, the wider benefits of all to arrest rural decline, to safeguard existing woodlands, in terms of access, recreation, employment and create new job opportunities. education and tourism (see example of Forest of During the first five year period, the study estimates Dean in Box 4.1), are also important. that 30,000 person days of employment would be generated, equating to 50 full time jobs over the six Numerous regional and local initiatives are winter months each year. During the second five aiming to improve the management of neglected years, this rate would double, creating 140 full time woodlands and develop new or traditional jobs over six months. During the third 5 year period, markets for woodland products. As with employment would be 165 jobs over 6 months. agricultural produce, further opportunities exist Considering existing employment in forestry and to build on the experience of these initiatives related industries is approximately 900 jobs, the and to encourage local purchasing, helping to projected increase would make a substantial contribution. keep a greater proportion of the value of the forest resource within the region. Indirect employment in SW Forest timber-related industries is estimated at 145 full time jobs. Indirect Three case studies highlighting the economic and induced employment in other sectors could benefits of different types of forest management result in a further 58 jobs. Other jobs are likely to be are presented below. There are many others in safeguarded as timber supplements farm incomes the South West, for example, Woodworks and the character of the countryside is maintained and enhanced. New activities such as craft (Silvanus), South Hams Woodland Initiative, industries and green tourism would generate Greater Exmoor Woodland Project, Exmoor additional employment. Leader II (includes woodland work). Economic Benefits of the Forest of Avon Community Forest 5 The Forest of Avon is one of 12 Community Forests which combine to form the country’s largest

3 Working Woodlands (Issue 6, Winter 1998) Revitalising the South West’s 1 The Forestry Industry Council of Great Britain (1998) The Forestry Industry Small Woodland Economy Handbook 1998. 4 Land Use Consultants (1996) The South West Forests Project: A Rural 2 The SW has 186,000 hectares of forest cover; England has 990,000 hectares of Development Initiative. forest cover. Forestry Commission (1999). Personal communication. 5 The Forest of Avon (1998) Forest Review 1997/98.

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environmental initiative. The project covers an area Table of 220 square miles in and around Bristol and aims to 3.3 Current Economic Benefits from plant 6,500 ha of new woodland, increasing woodland cover from 5% to 27% of land area over Regenerating the Primary Sector the next 40-50 years. Project initiatives focus on Activity Employment Expenditure Output multi-purpose use of woodland creation, including (FTEs) (£m) (£m) improving access, recreation, habitat value and landscape quality. Some achievements since 1991 Section 3.2: include nearly 2,000 ha of woodland brought under Agriculture management, 45km of hedgerows created or brought ● Agri-Environment under management, and public access to over 900 ha Schemes 134 (1) 16.3 2.9 (2) of new woodland. Section 3.4: In addition to the direct economic benefits to the Forestry forestry sector and wood-related industries, the ● Woodland Grant project represents a substantial investment in Schemes 28 (3) 3.3 0.6 (2) improving the quality of life and image of the area ● for attracting new business opportunities. Working Woodlands 212 2.7 4.7 (2) Expenditure for 1997/98 totalled £163,489. A ● (2) substantial proportion of expenditure from other SW Forest 203 4.5 bodies is also attracted to the area, including Single ● Forest of Avon 20 (4) 0.3 0.4 (2) Regeneration Budget, Community Forest Total 597 13.1 Conservation Grants and Forestry Commission grants. This further expenditure was around £95,000. Assumptions: (1) based on figure of 1 FTE/1,666 hectares (2) based on average GDP/worker of £22,000 pa 3.5 SUMMARY OF REGIONAL (3) based on agri-environment scheme experience ECONOMIC BENEFITS (4) based on Working Woodlands experience. Average GDP per worker is derived from dividing 1996 GDP for the South West (49,109 Table 3.3 and Box 3.6 set out the current and million) by total workforce in the South West (2.24 million) to give a forecast economic benefits of the activities figure of £22,000/worker. Source: Focus on the South West (1998) presented in Section 3 for which quantitative data is available. The employment level of 597 FTEs indicates the potential for small scale, innovative projects involving local partners and Box appropriate levels of support and funding for 3.6 Projections of Economic Benefits from the regeneration of rural areas. It should also be Regenerating the Primary Sector noted that these jobs are full time equivalents, Section 3.2: Agriculture and that much of the job creation in these types ● Increasing the proportion of land under agri- of activities is likely to be either seasonal or environment schemes from 12% at present to 30% part-time, contributing to wider diversification. could create an additional 190 FTE jobs. They therefore contribute to increasing current ● Supporting the development of organic farming, income levels and allow people to remain in which currently takes place on less than 1% of the land management activities. Matching the type region’s agricultural area, could create an of employment created with needs is of additional 157 FTEs and sustain 86 FTEs within particular interest from a regeneration the SW’s Objective 5b region. perspective. Section 3.3: Regional produce and local purchasing ● Around 2,000 jobs could be generated in the SW if the proportion of agricultural and food products purchased locally was increased by 10% (this figure does not take account of the employment and other benefits from encouraging local purchasing of forest and woodland products).

20 4 CAPITALISING ON A HIGH QUALITY ENVIRONMENT

4.1 INTRODUCTION 1999-2003 2 identifies the importance of a quality environment for the region’s tourism and In addition to the environment sector (Section 2) highlights numerous natural and built and traditional land based economic sectors environmental assets which make the region (Section 3) a high quality environment is competitive. The Strategy states that: increasingly recognised as a crucial, but less tangible capital asset for other economic sectors ‘The quality of the natural (and built) such as tourism. The role of a high quality environment is the main attraction which brings environment in attracting inward investment to visitors to the region. It is therefore essential that the region, and in attracting regional businesses the quality be maintained…’ from the major cities to provincial and rural The strategy also recognises that tourism can towns is also increasingly recognised. become a victim of its own success and that, if This section explores the contribution that a not carefully managed, traditional mass tourism high quality environment makes to: with low profit margins, poor facilities and lack of environmental management (eg of beaches or ■ the tourism sector (Section 4.2); traffic) can lead to a downward spiral in which ■ film and media (Section 4.3); not only the physical environment but also the ■ inward investment (Section 4.4); economy and the host community suffer. ■ Actions and targets to address this include quality of life benefits for residents achieving 100% compliance with Bathing Water (Section 4.5). Standards and increasing the proportion of Finally, Section 4.6 summarises the economic tourists using public transport to access the benefits from those activities where the part the region. Recognising the dependency of tourism environment plays in supporting these wider on a quality environment, and the need to plan sectors can be quantified. for the long term viability of the industry, a report highlighting key issues for the SW has 4.2 TOURISM been undertaken 3. Tourism is one of the fastest growth sectors in A number of studies have attempted to evaluate the world today, continuing to grow 4% pa the economic impact of the strong tourism- despite recession in many other sectors. It is the environment linkage in the South West. A study world’s largest employer and, if not already, it is by the Rural Development Commission expected to constitute the world’s largest estimated that overall tourism spending in the industry by the end of the century. Not South West countryside already accounted for surprisingly the sector has been embraced as an around £0.5 billion in 1994. A recent study engine of economic growth and regeneration by undertaken on behalf of The National Trust to many regions and countries. The UK has quantify the effect of landscape conservation on enjoyed an even faster rate of growth at around tourism and leisure expenditure in the South 5% per year, with some 26 million overseas West indicates that visitor spend on landscape visitors in 1997, spending in excess of £12 motivated holidays is £1.8 billion and that billion. linkage and multiplier effects add another £883 million to this. More details of these two Regionally, tourism is a key sector in the studies are given in Box 4.1. economy of the South West, attracting more than 21 million visitors each year and A case study of a single environmentally based contributing £3.5 billion to the region’s GDP 1. tourism and leisure attraction - The South West The region attracts 17% of domestic tourist Coast Path - shows that it brings thirty times spending (greater than any region other than more income into the region (an estimated Scotland). At present, tourism in Cornwall £15.75 million per annum) than the annual costs employs about 20,000 people, the majority part of maintaining it (see Box 4.1). Since the time of time (employing one in ten people in some these studies, a number of new tourism and form), and accounts for nearly a quarter of the environment initiatives have sought to build on county’s GDP. the growing interest in nature and rural based tourism. By its very nature tourism is acutely dependent on the conservation and enhancement of a high quality natural and built environment. The 2 West Country Tourist Board (1998) A Strategy for Tourism in the South draft strategy for tourism in the South West for West 1999-2003: Consultation Draft. 3 West Country Tourist Board, Countryside Commission (1997) Sustainable Tourism: A Special Discussion Paper on Key Issues Affecting the South West. 1 GOSW (1998) Focus on the South West. Prepared for the GOSW Tourism Competitiveness Group.

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Box ● In relation to accommodation, 813,000 users spent 4.1 The Importance of the Environment to the SW an average of £11.14 per night, including those Tourism Sector who spent nothing, and this increases to £13.91 if those are excluded. Countryside Tourism ● Daytime expenditure: 835,000 users spent an In a study undertaken by the Rural Development average of £5.37 per person per day. This gives a Commission and the Countryside Commission (1997) total spend of over £15.75 million during the on the economic impact of recreation and tourism in survey period (May 28-September 30). the English Countryside, it was estimated that, for ● Income generated for the region is more than 30 the West Country Tourist Board region (c80% of the times the annual cost of maintaining the path SW England region), the overall tourist spend in the (about £500,000). countryside was £498 million pa (in 1994). Exeter Tourism Research Group has similarly New tourism areas are also being developed in undertaken a study to evaluate the economic impact the region. For instance, since the withdrawal of the environment on the area’s tourism. Results from this study are expected to be available shortly. of the MOD from the Isle of Portland, Dorset, the area has been identified as an ‘Island of Landscape Motivated Tourism Opportunity’, with tourism and outdoor The West Country Tourist Board has undertaken a recreation seen as key engines for economic joint project with The National Trust entitled Valuing development. A full package of financial Our Environment to be published soon. This covers assistance is available (including SRB defence three specific issues: the value of the rural landscape estate conversion grant) to encourage tourism to the south west, the motivations behind visits to operators to develop new tourist activities. National Trust land and the value of goods and services provided by the Trust. The development of larger tourist attractions in The draft report identifies a total expenditure by the region tend also to have a strong tourists on landscape motivated holiday trips of £1.8 environmental dimension. Some of these are billion which directly supports 36,000 FTE jobs. The highlighted in Box 4.2. These should help to linkage and multiplier effects add another £883 extend the tourist season throughout the year million spend, resulting in an additional 17,900 FTE and encourage more international tourists to the jobs. This gives a total of 54,000 FTE jobs supported by landscape motivated holiday trips. region. In addition to the wide range of sustainable tourism initiatives taking place (see Forestry and Tourism Section 4.2.1), these should assist in diversifying Information on tourism in the Forest of Dean is the type of tourism activity available in the contained in the Government’s new forest strategy region and prevent decline in the industry ‘A New Focus for England’s Woodlands’. The Forest overall as a result of the decline in the more of Dean hosts over 1 million visits per annum. The traditional ‘bucket and spade’ holidays. Symonds Yat viewpoint and Sculpture Trail are well- known tourist destinations. The forest is popular for Box many outdoor activities such as hiking, cycling, 4.2 Complementary Tourist Attractions 2: birdwatching, rock climbing and orienteering. There exploiting the economic potential of the natural are 300,000 camper nights per year on sites managed environment by Forest Enterprise and tourism generates an estimated £30 million each year for local businesses. The Eden Project The South West Coast Path The Eden Project in mid-Cornwall, with Millennium funding, is expected to attract up to three quarters of The South West Coast Project was set up by the a million visitors a year. At £74mn, it is the largest Countryside Commission with the support of the single investment in the county ever. It is expected local authorities, National Trust, SWWA and WCTB. to open in 2001. The stated mission of the Eden The aim was to undertake three main tasks, Project is: ‘to promote a universal understanding of the including an assessment into the level, use and critical importance of our relationship with plants; economic benefit it brings to the communities and supporting and showcasing projects and encouraging businesses along the route; the condition of the path individual actions and choices that will lead to sustainable and its signs; and to draw up a comprehensive 1 land use’. Built on the scarred landscape of a china strategy for future management. A user survey clay pit, it will contain three bio-domes, seven drew the following main findings: hectares of parkland, a visitor centre and 60 m high ● 44% of holidaymakers said that the existence of planthouses. The University of Plymouth Business the trail was a factor in visiting the area. School estimates that the Eden project will generate ● 63% said that scenery/landscape were the main 440 FTE jobs within Cornwall and 880 in South West things that attracted them to the Coast Path.

2 In West Country Business Guide’s Special Publication (1998) West Country 1 Countryside Commission (1994) South West Coast Path User Survey. Press.

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as a whole during construction and around 255 in Box Cornwall and 310 in the South West once completed. 4.3 Greening Traditional Tourism in the SW For every 20,000 additional tourists attracted to the SW, output and GDP are estimated to increase across Farm Tourism the Region by £4.8 mn and £2.6 mn a year The West Country Tourist Board is on the point of respectively. introducing a streamlined incentive scheme for improving visitors’ experience of the farm The Lost Gardens of Heligan environment. The grant scheme is available to Ongoing restoration of the Lost Gardens of Heligan enhance the appeal of farm tourism businesses by in Cornwall (285,000 visits in 1997) makes it the 12th developing their uniqueness. Funds are available to in the top admission-charging attractions in the West farm tourism operators in Cornwall and parts of Country. Devon and West Somerset (European Objective 5b National Marine Aquarium in Plymouth area). Assistance is available for up to one third of the cost of the project. The minimum project that This is a flagship tourist attraction - £14 mn project, will be considered is £600 and the maximum is which is expected to attract more than 500,000 £6,000. Final approval for the scheme is awaited visitors a year. It displays six habitats from English from MAFF. In addition, Farm 2000 is a farmer moorland streams to coral seas. The project is backed marketing project which has been set up to expected to expand the range of year round address issues facing farm tourism in the future. attractions and encourage visits outside the peak summer season. Green Audits The West Country Tourist Board has been the lead Regional Tourist Board in promoting the Green Audit 4.2.1 Sustainable Tourism Initiatives Kit approach to individual tourism initiatives. In The SW Tourism Strategy (WCTB) also 1992, South Devon developed and piloted a recognises the need for sustainable management methodology for applying this to small tourism businesses as a national demonstration project. This of tourist pressures in the most popular sites. It resulted in the ‘Green Audit Kit’, a self-manual of is recognised that some particularly attractive advice and practical action. This was piloted, areas in the region, notably honeypot sites in the evaluated, revised and finally published in a national National Parks and historic towns, are under form and promoted to tourism businesses across pressure and, apart from detracting from the England from 1996. Sales and use of the Green Audit quality of the resource, these can also diminish Kit increased from 150 to over 300 businesses by mid the quality of the visitor experience. 1996. An award scheme has been developed which recognises and rewards practical action by users. For these areas the tourism objective is therefore Developing Links between Rural and Urban Areas not simply to maximise the number of visitors Bristol and its associated hinterland is a unique and but to encourage more sustainable use. The increasingly popular destination for visitors. In challenge is to harness the positive impacts of October 1998 a report for Bristol City Council tourism (jobs, income, infrastructure and entitled Sustainable Tourism in Bristol: Local maintaining the viability of rural and coastal Opportunities highlights the potential for this type of areas) whilst managing to minimise, or avoid, urban tourism. This included promotion of all the negatives. There have been a number of ‘weekend shortbreaks’. This project has ERDF projects involving public bodies such as the funding. In addition a KONVER 2/Bristol and Bath Tourist Boards and private operators and 2000 initiative is a jointly managed programme, marketing both cities, with a campaign to promote business associations to either green traditional the sub region as a holiday activity area where tourism activities or to develop more environmental impacts will be benign. A sum of sustainable tourism products for the region. £160,000 has been set aside as part of this funding for Some examples are provided in Box 4.3. the promotion of ‘green initiatives’.

4.3 FILM AND MEDIA The film and television industry is attracted to the location of the South West due to its historical landscape, rugged coastline, stately homes and as a ‘nice place to work’. The South West Film Commission promotes and assists film making in the region. It has estimated that, during the 1997-1998 period, approximately £14 million was brought into the region, amounting to the generation of some 65 local jobs 1.

1 South West Film Commission (1999) Personal Communication.

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However, there is also much indirect spending multimedia; financial and business services, which filters into the local economy and wider particularly call centres. The importance of a spin-offs to the tourism industry through high quality environment in attracting attracting visitors to specific locations once films companies in these target sectors is and dramas are screened. Wycliffe has been demonstrated by the following quote from a particularly successful in attracting visitors to recent arrival: the rugged coastline of Cornwall and films such “We chose Bournemouth as the location for our as Sense and Sensibility and Remains of the Day new European Operations Centre for quality of draw many visitors to the stately homes. life, lower operating costs than a big city, good The West of England also has one of the largest transportation and, above all, a motivated and media presences in the UK and is the long- experienced workforce” Ian Stewart, Vice established home of the BBC and Aardman President, Chase Manhattan Bank, NA. Animation. The region supports approximately During 1997/8 Devon and Cornwall 300 companies in front-line computer hardware, Development International (DCDI) was software and creative development. The West involved in £71 million of investment and the of England has traditionally attracted creative creation or safeguarding of 2,200 jobs. DCDI talent on the basis of its quality of life, indicate that a ‘superb quality of life’ linked to environmental quality and existing talent base. the natural environment in Devon and Cornwall “The presence of the BBC’s Natural History is seen as a factor which can overcome Features and Documentaries Unit has acted as a traditional disadvantages of isolation, poor magnet for talent from around the world. The transport links and inward investment grants. region’s beautiful towns and landscapes have Other advantage factors for the SW were served as locations for a stream of fine feature identified as a growing population, and the films” ability to attract key professional and The Bristol area has long been known as a managerial staff, if required, from other parts of world player in high quality wildlife and video the UK. This is supported by a quote from the productions. Aardman Animations alone DCDI annual report 1997/8: directly and indirectly supports some 300 local “Our telecommunications facilities are just as jobs. good as those in major cities, but we don’t have the unnecessary stress, congestion and pollution”. 4.4 INVESTMENT IN THE SOUTH WEST 4.4.2 Changing Investment Patterns Within the 4.4.1 Inward Investment Region A high quality of life is widely recognised as a A major feature of recent economic growth in significant attraction for businesses and people the South West region has been a high degree of choosing to live or work in a new area. A CBI disparity of economic performance within the survey 1 of UK regions and the factors affecting region as a whole. The relative prosperity of the competitiveness found that: north and east of the region has been driven by ‘compared to other UK regions, the South West’s growth in high value added industries, largely key strengths were its quality of life, knowledge and technology based, as well as telecommunications and the quality of education high levels of inward investment drawn from and training provision’. the South East and overseas. At the same time, parts of the rural and peripheral areas of the This view was repeated consistently by region have recorded significant progress in respondents regardless of the size of company diversifying and improving their local or business sector. The high value attached to economies. Indeed, DCDI reported that more these factors is endorsed by incoming than two thirds of investments originate from businesses established in the South West. companies already established in the wider The West of England Development Agency 2 region. (WEDA), whose responsibility it has been to Recent research by University of Cambridge 3 attract inward investment in the past, has has highlighted the urban-rural shift of identified a list of target sectors which includes employment and businesses since the 1960s and computing and telecommunications; software; the relative shift of firms, outputs and jobs from

1 CBI (1996) Fulfilling our Potential: the Business Agenda for the South West. 3 Entrepreneurship, Business Growth and Enterprising Behaviour in Rural 2 West of England Development Agency, Annual Report 1997/98. South West England, University of Cambridge

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conurbations and big cities to smaller towns and Table rural areas. The research indicates that the 4.1 Reasons for Choice of Company Location fastest growth of employment has been in the SW 1 recorded in rural and less urbanised areas of Britain. The explanation for why business Reason Remote Accessible Urban Rural Rural (% of firms) activity and employment have been growing (% of firms) (% of firms) fastest in rural regions such as South West England has been sought in terms of the Nearness to advantages rural areas offer for enterprising founder’s home 37.0 57.6 40.9 behaviour by locally founded businesses. Environmental attractiveness 35.4 36.4 37.5 This survey based research clearly indicates that an important explanation of why there is a high Labour advantages 40.5 36.4 15.6 level of new firm formation in rural settlements and small towns is because this is where the Premises advantages 24.1 27.2 46.9 professional, managerial and skilled Local market entrepreneurs wish to live and establish or materials 35.4 36.4 37.5 businesses. Many of these entrepreneurs have Good been drawn to visually more attractive, rural communications 40.5 36.4 15.6 and small town living environments from large Government cities and conurbations. The importance of grants 24.1 27.2 46.9 environmental attractiveness as a factor in Historic company location decisions is shown in Table reasons 35.4 36.4 37.5 4.1. Whilst this shows that there is a portfolio of Company factors which need to be taken into account, acquisition 40.5 36.4 15.6 environmental attractiveness is a key factor for Accessibility to firms in remote and accessible rural areas as clients, staff, well as urban areas. Other important factors for suppliers 24.1 27.2 46.9 firms in all three location types are nearness to founder’s home and historic reasons. Other 35.4 36.4 37.5 Therefore, for the South West region, the growth of the more accessible rural areas and small 4.5 QUALITY OF LIFE BENEFITS FOR towns has been stimulated by rural enterprise RESIDENTS creation of founders drawn from larger cities, Finally, a high quality environment can be seen attracted by the perceived quality of life and to provide a number of less tangible benefits to pleasant residential environment of rural residents of the Region. It has not been possible settlements. The business survey undertaken to quantify these benefits within the current for the research study indicates that, for remote study. These wider benefits might be rural firms in the South West, the third most characterised as follows: frequently reported reason for business location ■ choice was environmental attractiveness for Environmental understanding. Natural areas, founders and staff (24% of replies). Rural woodlands and green space in urban and business growth reflects the increasing rural areas provide opportunities for learning footlooseness of many economic activities, and about nature and for studying human many firms locating or being set up in rural interactions with the natural environment; areas are not tied by economic constraints to ■ Physical and mental quality of life benefits. any particular location, urban or rural. The Wilderness and wooded areas are considered South West is clearly well placed to benefit from to have a stress relieving influence on human this interest in quality of life. behaviour. Less polluted environments may materially contribute to lower incidence of asthmatic and other pollution related diseases and health related spending per capita while open space, trees and areas of outstanding natural beauty have been linked with improved mental health of those who have access to them.

1 Plymouth Business School (1996) The South West Economy: Trends and Prospects.

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■ Spiritual quality of life benefits which are Table increasingly considered measurable using 4.2 Available Estimates of Economic Benefits new environmental economic valuation of a High Quality Environment techniques such as contingent valuation. These attempt to place a monetary value on Activity Employment Expenditure Output (FTE) (£m) (£m) public goods such as the environment. These might include ‘existence’ values where people Section 4.2: derive a benefit from the very knowledge that Tourism wildlife, forests and unspoilt rivers and ● Landscape beaches exist, even they may not directly visit motivated tourism 54,000 1,781 702 (1) or use them. These latter values may also be ● The Eden Project 310 4 enjoyed by people outside the SW who ● Forest of Dean 30 simply like to know that the remaining Section 4.3: relatively wild areas of Cornwall and Devon Film and Media will continue to exist unspoilt. ● Aardman Animation 300 6.6 (2) ● SW film location shots 55 1.2 (2) Total 54,665 743.8

Assumptions: (1) based on interim findings, average GDP/tourism worker of £13,000. Tourism GDP per worker is derived from the South West Coastal Path study which indicated that £16 million of output generated 1,226 FTE jobs, namely GDP/worker of £13,000 (2) based on average GDP/worker of £22,000

The analysis does not, therefore, include the wider, less-tangible benefits which nonetheless constitute one of the SW’s key strengths.

4.6 SUMMARY OF REGIONAL ECONOMIC BENEFITS The ways in which the environment underpins important regional sectors such as tourism and inward investment have been discussed above. However, these wider economic benefits of a high quality environment are not easily quantified without additional primary research. The linkage though is clear. Table 4.2 includes some examples where the economic activity has a strong environmental dimension and where the link between the economy and the environment has been assessed. For example, whilst it is widely recognised that tourism is strongly dependent on a high quality environment, we have only included data derived from studies which have specifically assessed the economic impact of the environmental dimension.

26 5 SUMMARY AND RECOMMENDATIONS

5.1 SUMMARY output is dependent upon the quality of the SW’s environment.This information is also This section summarises the key findings of the presented on page 28 Prospectus in relation to the economic benefits of environment-related activities. Particular This indicates that in total the value of the opportunities for mutually compatible economic environment amounts to some 5-10% of the development and environment enhancement region’s total GDP. and protection are highlighted. Finally, the ways in which a positive approach to the 5.1.2 Future Opportunities environment can contribute to economic Key features and potential opportunities which objectives are summarised. We have used emerge from the review of environment-related SWERDA’s core objectives to structure this activities are noted below. summary ■ Many of the sectors are new and growing 5.1.1 Current Position rapidly (eg environment industries, We have carried out an initial analysis of a wide renewable energy, waste management) and, range of economic activities which clearly have whilst much is already happening on the a positive environmental dimension, and ground, unleashing their full potential with assessed their contribution to employment and maximum benefits to the region is now the regional output. A summary of the analysis is opportunity. presented in Table 5.1. ■ Many of the activities will require future development as a result of the current UK Table and EU policy initiatives and policies in the 5.1 Summary of Economic Benefits from pipeline (eg Agenda 2000, sustainable forest Readily Available Information management, the Landfill Directive, the Activity Employment Output sustainable development model and Local (FTE) (£m) Agenda 21 strategies). Building these Section 2: activities into an economic development The environment sector 37,885 833 strategy offers significant advantages in terms Section 3: of ‘being ahead of the game’ and gaining a Regenerating the competitive edge. primary sector 597 13 Future opportunities identified during the Section 4: Wider benefits of a high research are summarised in Table 5.2. Again, quality environment 54,665 744 these significantly underestimate the scale of opportunities in a wide range of other areas as Total 93,147 1,590 they are based only on those sectors for which SW economy as a whole 2,239,000 49,109 quantitative data was available. Regional contribution 4.2% 3.2% Table We have found that economic activities which 5.2 Projections For Growth in Selected have a strong positive link to the environment Activities currently provide some 100,000 FTE jobs in the Activity Employment Output South West and contribute nearly £1.6 billion (FTE) (£m) to the South West’s regional GDP. Section 2.2: Employment in these areas accounts for about Environment industries (1) 23,607 367 4% of total employment in the region and Section 2.4: slightly more than 3% of GDP. Renewable energy 12,000 264 The 3% of total output attributable to the Section 3.2: Organic farming 158 3.5 environment is a highly conservative estimate and is only based on those activities explored Section 3.3: Local purchasing 2,000 44 for the Environmental Prospectus and for which quantitative data was available. Taking into Total projected economic benefits 37,765 678.5 account the impact of the environment on the general business community, rural businesses, Total current (Table 5.1) and projections 130,912 2,269 businesses producing countryside products, and inward investment decisions, it is estimated that Regional contribution 5.8% 4.6% a similar additional proportion of economic Note: (1) Incremental based on forecast growth rate

27 SIGNIFICANT POTENTIAL FOR GROWTH THE ENVIRONMENT AND THE ECONOMY IN THE SOUTH WEST LINKING THE ENVIRONMENT WITH JOBS AND WEALTH CREATION

THE ENVIRONMENT SECTOR: c38,000 jobs, c£833 million output

THE ENVIRONMENT INDUSTRY: Firms that provide goods and services which are needed for environmental protection. ENVIRONMENTAL MANAGEMENT: Use of environmental management systems by businesses to assess and reduce their impact on the environment. RENEWABLE ENERGY: Wind energy, biofuels and their potentials. WASTE MANAGEMENT: Recycling, alternatives to landfill. THE NATURAL ENVIRONMENT SECTOR: Economic activity associated with the protection and enhancement of the natural environment. (OTHER SECTORS NOT FULLY EXPLORED IN THIS REPORT, eg, integrated transport activities)

REGENERATING THE PRIMARY SECTOR: c600 jobs, c£13.1 million output AGRICULTURE & THE ENVIRONMENT: Environmental land management schemes, organic farming. REGIONAL PRODUCE: Using the quality of the environment to brand the region, local purchasing, countryside products. FORESTRY: Working woodlands, multi-purpose forestry, community forests, the SW Forest Project. (OTHER SECTORS NOT FULLY EXPLORED IN THIS REPORT, eg, sustainable marine fisheries)

CAPITALISING ON A HIGH QUALITY ENVIRONMENT: c55,000 jobs, c£744 million output TOURISM: Rural/countryside tourism, sustainable tourist activities, coast and clean seas. FILMS & MEDIA: Dedicated regional centres of excellence, quality environments as film locations. INWARD INVESTMENT: Links between inward investment and quality of life factors, company location. QUALITY OF LIFE FOR RESIDENTS: Quality of life underpinning life in much of the region for its residents: spiritual, mental and physical dimensions.

ECONOMIC ACTIVITIES WHICH HAVE A STRONG POSITIVE LINK TO THE ENVIRONMENT IN THE REGION c100,000 jobs, c£1.6 billion output A HIGHLY CONSERVATIVE ESTIMATE: OVERALL THE VALUE OF THE ENVIRONMENT IS IN THE REGION OF 5-10% OF THE SW’S TOTAL GDP.

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5.1.3 The Environment - Helping to Meet the skills, to high tech environmental economic objectives of SWERDA and others management systems. ■ The Environmental Prospectus describes a wide Sustainable development. By their very range of economic activities for which the selection, the activities included in this environment acts as a strong driver for Prospectus are mutually compatible with economic growth and regeneration in the achieving economic and environmental region. The implications these have for the objectives. Furthermore, there are many economic objectives of SWERDA and others are complementary linkages between outlined below. environmental activities, social well-being, and quality of life factors. Environmental ■ Economic development and regeneration. improvements can strengthen communities Many environment-related activities are in the by improving the quality of their physical and process of rapid growth, and harnessing their social fabric, particularly where this involves full potential can make a significant supporting local partnerships and networks, contribution to economic development. Other stimulating community-based initiatives, and activities can help to diversify the economic promoting local distinctiveness. base in declining sectors, tackle particular pockets of deprivation, and assist people to 5.2 RECOMMENDATIONS remain in rural areas to manage the land where falling incomes and employment are a There are high expectations of our new RDA. continual threat. We look to SWERDA to improve the performance of the region in GDP and ■ Business efficiency, investment and employment terms, but also to enhance the competitiveness. Environmental quality of life for everyone in the region. The management measures such as energy region’s environment presents a key efficiency and waste minimisation can lead to opportunity to do both. We trust that SWERDA significant cost savings for both larger firms will act urgently on our recommendations as and SMEs. Subsequently, this can improve follows: business efficiency, support indigenous business growth and increase regional 5.2.1 A Regional Development Vision productivity. At the same time, a high quality 1 SWERDA should recognise in its guiding environment can provide inward investors vision statement that environmental with the added extra which differentiates the dimensions must be fully integrated within region from others in an economic climate development programmes. SWERDA should where many other factors are increasingly consider adopting the following aims within its competitive. overall vision statement: ■ Employment. Environmental protection and ■ recognise and champion the significant enhancement are a tool to stimulate the positive linkages between the environment economy, create jobs and preserve existing and economic development; jobs. The labour intensity of many environment-related activities is compatible ■ actively build on the region’s environmental with policies to combat high levels of and economic strengths, particularly those unemployment overall and pockets of aspects which differentiate the SW from the deprivation. The likelihood of displacing other regions; employment in other sectors is minimal as the ■ ensure that other activities and investments activities explored are either in new/growth in the region take environmental sectors or contribute to diversification in areas considerations fully into account and do not where the risk of unemployment is high. threaten environment-reliant activities; ■ Enhancing and developing relevant skills. ■ embrace the environment as an effective Delivering environmental projects requires an and sustainable route for developing the extensive skills base with training to allow economy and tackling regional economic people to benefit from the opportunities variation. offered. The full range of environment- related activities offers employment In recognising the role of the environment in opportunities at different skills levels and in regional development and setting high different occupation types. These range from standards for others, SWERDA should lead by environmentally sensitive land management example, sending the right signals to others.

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2 SWERDA should ensure that, in considering Skills programmes should include support for the development of rural areas, it fully environmental management, research and recognises the opportunity provided by the development and should be an important tool natural environment, for supporting a diverse, for the development of the emerging strong rural economy. environmental industries. It can also help to meet the needs of businesses (particularly 5.2.2 Strategic Issues SMEs) across all economic sectors to respond to 3 SWERDA should adopt an economic both existing environmental policy and development strategy that has a high legislation and future developments. environmental profile, reflecting the important Opportunities to revitalise the primary sectors contribution that environment-related activities in the SW highlight a need for improved make to the SW’s economy, and the land-based skills and training provision. opportunities they offer to help meet SWERDA’s objectives. 5.2.3 Best Practice 10 SWERDA should evaluate the current (and 4 SWERDA should use the work started within future) challenges that face businesses in this Prospectus to inform its Regional terms of environmental standards, legislation, Economic Strategy. Over time the potential for and policy developments. SWERDA needs to future growth and employment in sectors provide support to help businesses to respond covered by the Prospectus and other sectors to these challenges and enhance their needs to be explored further in order to competitiveness. maximise the benefits on offer. 11 SWERDA should set out how it will assess the 5 SWERDA should identify flagship baseline environmental quality of the region, environmental projects in its Regional and set out in the RES how this can be protected Environmental Strategy and early programmes and enhanced by the above actions. Threats and to demonstrate the ‘win win’ opportunities opportunities to the environment should be available by pursuing environmental and identified to ensure that they are taken into economic objectives together. account in formulating policies and 6 SWERDA should consider its role as a voice programmes in other areas. SWERDA should for the region and articulate a clear agenda for aim to maintain, improve and report regional linking the environment and the economy. progress towards environmental targets. There is scope to influence a wide range of other 12 SWERDA should develop incentives and bodies and actors that have a vested interest in ensure environmental considerations are regional development and environmental factored into sectoral policies effectively in protection and enhancement. order for jobs to be created in the environmental 7 SWERDA should consider ways in which it sector, especially in the fields of energy, can provide incentives within funding industry, transport, fisheries and agriculture. programmes and policies to encourage 13 SWERDA’s staff resources, at all levels of its environmental benefits. For example, it could operation, should reflect the importance of assess the possibilities for providing premium integrating environmental issues into grant rates for projects/programmes which add economic development. In-house expertise to the high quality environment. should be developed. 8 SWERDA must undertake a ‘sustainability 14 SWERDA should fully utilise the networks of assessment’ of its regional strategy. This environmental partners already established in should include a strategic environmental the region. To help deliver the integration of assessment that is both comprehensive and economic and environmental objectives, transparent. The government currently requires SWERDA must build connections with its departments and public bodies to undertake environmental interests, as well as developing an environmental assessment 1 of policies. its relationship with the SW Roundtable on 9 SWERDA should develop its skills strategy in Sustainable Development. a way that matches the existing and future SWERDA will have responsibility for all, or opportunities offered by the wide range of parts of the Structural Fund Programmes, the environment-related activities in the region. Single Regeneration Budget, English Partnerships, the Rural Development 1 A proposed EU Directive on SEA of policies, plans and programmes is currently a priority action for Member State agreement. Commission, and inward investment agencies.

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In carrying out its activities with respect to the above, the following recommendations are made. 15 SWERDA will need to ensure compliance with statutory requirements in relation to environmental impact assessment (EIA) of developments. In particular, SWERDA should strive to be at the forefront of best practice in relation to the scoping of EIAs and the form of public participation and consultation undertaken. 16 SWERDA should ensure that, in its management and evaluation of structural fund programmes, it maximises environmental benefits. SWERDA should make full use of the guidance and best practice manuals which now exist in relation to programme development, project selection criteria, indicators, monitoring and evaluation for sustainable development. 17 SWERDA should seek opportunities to develop partnerships with the environmental sector that are currently not being utilised effectively and include access to, eg, EP finances for ‘soft end-use’ projects such as small environmental schemes. A recent evaluation of how English Partnerships (EP) has implemented its obligations and objectives in respect of environmental protection and sustainable development has found that there is considerable scope for improvement in some areas. In particular, there is much scope for diversification into new ventures with different types of partners. SWERDA should seek redress in these areas. 18 SWERDA should ensure that the current level of provision of environmental infrastructure is adequate. Investing in environmental infrastructure (eg, waste management facilities) provides part of the necessary framework for modern, high quality, industrial and commercial activities and is a pre-requisite for sustainable economic activity. Below adequate levels of environmental infrastructure have implications for industrial sectors where growth is constrained by the level of environmental services, and for pollution sensitive sectors such as tourism, fisheries, agriculture and forestry.

31 BIBLIOGRAPHY

Black Horse Relocation (1998) Survey of Environmental Resources Management (1998) Britain’s Best Cities to Relocate to Protected Areas Funding Study, for the Countryside Commission Bristol City Council (1998) Sustainable Tourism in Bristol: Local Opportunities Environmental Resources Management (1998) English Partnerships Evaluation, for the DETR Confederation of British Industry (1996) Fulfilling our Potential: the Business Agenda for Environmental Resources Management (1997) the South West Countryside Products Research, for the Countryside Commission Cornwall County Council, ETSU, Department of Trade and Industry (1996) Land-use Planning Environmental Technology Support Unit (ETSU) for Renewable Energy in Cornwall for the Department of Trade and Industry (DTI) (November 1998) New Review, Issue 38 Council for the Protection of Rural England (1996) Traffic Trauma Map Environmental Technology Support Unit (ETSU) (1995) Assessment of the Agro-Industrial and Countryside Commission (1998) Countryside Economic Factors Affecting Energy Crops in Commission South West Special Transport Issue, South West England Winter 1998 European Commission (1997) Building a Countryside Commission, CEAS Consultants, Sustainable Europe: Communication on University of Reading (1996) Socio-Economic Environment and Employment Effects of the Countryside Stewardship Scheme European Commission (1993) White Paper on Countryside Commission (1994) Report of the Growth, Competitiveness and Employment: The South West Coast Path User Survey Challenges and Ways Forward into the 21st CSM Associates (1995) An Assessment of the Century Agro-Industrial and Economic Factors Affecting European Parliament (1997) Environment and Energy Crops in South West England, for the Employment, literature review prepared for CEC Altener Programme conference upon request of Committee on the Department of the Environment, Transport and Environment, Public Health and Consumer Regions (1998) A New Deal for Transport Protection HMSO Foresight Food Chain Group Report (1998) Department of the Environment (1994) Policy Office of Science and Technology Government Appraisal and the Environment, HMSO Office for the South West (1997) Changing for the Better Devon County Council, West Devon Borough Council, DTI (1993) Planning for Renewable Forestry Commission (1998) England Forestry Energy Strategy: A New Focus for England’s Woodlands Ecotec (1997) Encouraging Sustainable Development Through Objective 2 Programmes: Forestry Commission (1997) Public Opinion of Guidance for Programme Managers Forestry 1997, Forestry Commission Ecotec (1994) The Potential for Employment Forestry Industry Council of Great Britain (1998) Opportunities from Pursuing Sustainable The Forestry Industry Handbook 1998 Development Friends of the Earth (1997) Making Tracks in Ecotec (1994) Job Creation and New Wiltshire, Rural Package Bids: The Next Occupations: The Environment Sector Generation, Friends of the Earth Wiltshire Network Ecotec, BIPE Conseil, IFO (1994) An Estimate of Eco-Industries in the European Union 1994 Friends of the Earth (1994) Working Future? Jobs and the Environment Environment Business (1998) Environment Business Directory 1999 Government Office for the South West (1998) Focus on the South West, HMSO Environmental Resources Management (1999) An Environmental Prospectus for the South Government Office for the South West (1997) West of England Development Agency, for Changing for the Better Environmental Prospectus Group

32 Jackson C (1998) The End of the Throw-Away South West Regional Planning Conference Society? The EU Draft Directive on Landfill and (SWRPC) (1998) Revised Regional Strategy for its Implications for the South West of England the South West, Consultation Draft Land Use Consultants (1996) The South West Taste of the West (1998) Your Guide to Quality Forests Project: A Rural Development Initiative Food and Drink from the West Country Marine Conservation Society (1997) Nationwide The Forest of Avon (1998) Forest Review Beach-Clean and Survey Report, Marine 1997/98 Conservation Society/Readers Digest The Forest of Avon (1998) Forest News, Issue 7, National Small Woods Association (1998) Autumn/Winter 1998 Woodland Initiatives Register Tourism Associates (1999) Valuing our National Wind Power Ltd (1998) Written Environment: A Study of the Economic Impact Communication of Conserved Landscapes and the Direct Value of the National Trust in the South West (Draft OECD (1997) Environmental Policies and Report) Employment Tourism Associates (1997) A Green Audit Kit Office for National Statistics (ONS) (1998) UK Evaluation, produced for the English Tourist Environmental Accounts 1998, HMSO Board PAYBACK (1998) Newsletter, Issue No 10 May, UK Round Table on Sustainable Development Groundwork (1998) Aspects of Sustainable Agriculture and Purbeck Heritage Committee (1995) Keeping Rural Policy Purbeck Special: A Strategy for the Purbeck University of Cambridge Entrepreneurship, Heritage Area Business Growth and Enterprising Behaviour in Royal Society for the Protection of Birds (RSPB) Rural South West England (1999) The Environment and the Regional University of Plymouth Business School (1996) Economy. Opportunities for the RDAs The South West Economy: Trends and Prospects Royal Society for the Protection of Birds (RSPB) Wessex Water (1998) Striking the Balance (1998) The Economic Importance of the Natural Environment Sector in South West England West of England Development Agency (1998) Annual Report 1997/98 Royal Society for the Protection of Birds (RSPB), County Wildlife Trusts and South West Regional West Country Business Guide: Special Planning Conference (1996) The Biodiversity of Publication (1998) West Country Press the South West West Country Tourist Board (1998) A Strategy Rural Development Commission and the for Tourism in the South West 1999-2003: Countryside Commission (1997) The Economic Consultation Draft Impact of Recreation and Tourism in the English Countryside West Country Tourist Board (1998) A Streamlined Incentive Scheme for Improving Safe Alliance (1997) Double Yield: Jobs and Visitors’ Experience of the Farm Environment Sustainable Food Production West Country Tourist Board (1998) Farm 2000 Soil Association (1998) The Organic Food and Farming Report West Country Tourist Board, Countryside Commission (1997) Sustainable Tourism: A Soil Association (1998) Go-Organic South West Special Discussion Paper on Key Issues Feasibility Study: Executive Summary Affecting the South West, prepared for the GOSW Tourism Competitiveness Group Soil Association (1998) The Potential for Local Purchasing in Mid-Somerset, for South Somerset Working Woodlands (1998) Revitalising the District Council South West’s Small Woodland Economy, Issue 6 Winter South West Biodiversity Group (1998) The Importance of Biodiversity to the South West

33 GLOSSARY

AONB Area of Outstanding Natural NACE Nomenclature generale des Beauty activities economiques. An EC classification system for BTCV British Trust for Conservation economic activities developed by Volunteers Eurostat. CAP Common Agricultural Policy NFFO Non-Fossil Fuel Obligation CBI Confederation of British Industry NGO Non-Governmental Organisation CPRE Council for the Protection of NDPB Non-Departmental Public Body Rural England RDA Regional Development Agency DCDI Devon and Cornwall Development International RES Regional Economic Strategy DETR Department of the Environment, RPG Regional Planning Guidance Transport and Regions RSPB Royal Society for the Protection DTI Department of Trade and of Birds Industry SAC Special Area of Conservation EC European Commission SEA Strategic Environmental ECU European Currency Unit Assessment EIA Environmental Impact SME Small-Medium sized Enterprise Assessment SPA Special Protection Area EP English Partnerships SRB Single Regeneration Budget ERDF European Regional Development Fund SWEB South Western Electricity Board ESA Environmentally Sensitive Area SWERDA South West of England Rural Development Agency ESD Energy for Sustainable Development Ltd WCTB West Country Tourist Board ETSU Environmental Technology WEDA West of England Development Support Unit Agency EU European Union FoE Friends of the Earth FTE Full Time Equivalent GDP Gross Domestic Product MAFF Ministry of Agriculture, Fisheries and Food MOD Ministry of Defence MW Megawatt

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