The Mersey Partnership
An Action Plan for the City Region 2002-2005 Consultation Draft August 2001 9 September 2001 Dear Colleague
An Action Plan for the City Region 2002 – 2005 Consultation Draft
I am enclosing the Consultation Draft of the Merseyside City Region’s exciting new Action Plan for 2002 – 2005.
My colleagues at The Mersey Partnership and I have been extremely heartened by the quality of the thinking, of the ideas and of the contributions from partners, which together have enabled us to produce a truly imaginative and yet realistic plan. It is my belief that the delivery of the actions set out with the strong support of the North West Development Agency (NWDA) will transform the Merseyside economy.
We are now seeking partners’ views on the attached consultation draft. Our objective is to produce a finalised plan by the end of October 2001.
In conjunction with the Merseyside area office of the NWDA, we will be holding a series of consultation workshops at the venues and dates shown on the booking form overleaf. These will be led by Thomas O’Brien, our new Chief Executive and Aidan Manley, Area Manager for Merseyside of the NWDA.
Please use booking form that follows and fax it to Anna Maloney on 0151 227 2325 or click the link at http://www.makeitmerseyside.org/actionplan to register on line by Monday, 17th September 2001 to confirm your attendance on one of the dates listed on the form. Please indicate a second choice in case there is an oversubscription on any day.
This document is available on our website at http://www.makeitmerseyside.org/actionplan. Please encourage your contacts to access it. We look forward to receiving your comments either in writing to Bill le Breton or by email to [email protected] by Monday, 15th October 2001.
Thank you in advance for your involvement in this important stage in the economic development of Merseyside.
With kind regards,
Yours sincerely,
Mr R A Morris Chairman BOOKING FORM – Please reply by Monday 17th September 2001
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25th September 2001 10:00 – 12:00 Hilton Hotel, St Helens ? ? 25th September 2001 14:00 – 16:00 Suites Hotel, Knowsley ? ? 26th September 2001 10:00 – 12:00 Lawson House, Runcorn, Halton ? ? 26th September 2001 14:00 – 16:00 Holiday Inn City Centre, Liverpool ? ? 2nd October 2001 10:00 – 12:00 Bowler Hat Hotel, Wirral ? ? 2nd October 2001 14:00 – 16:00 Holiday Inn City Centre, Liverpool ? ? 3rd October 2001 10:00 – 12:00 Holiday Inn City Centre, Liverpool ? ? 3rd October 2001 14:00 – 16:00 Royal Clifton Hotel, Southport ? ?
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Please complete this form and: FAX back on 0151 227 2325 POST to: Anna Maloney, The Mersey Conference Bureau, Cunard Building, Pier Head, Liverpool L3 1ET OR E-MAIL details to: [email protected] BOOK ON-LINE AT www.makeitmerseyside.org.uk/actionplan If you have any queries please Contact Anna Maloney on 0151 237 3923 An Action Plan for the City Region 2002- 2005 Consultation Draft Summary 1. Why an Action Plan?
The Mersey Partnership (TMP) has co-ordinated the development of this Action Plan for two reasons. Firstly, for some time, it has been planning to refresh the strategy prepared by the Merseyside Economic Forum (MEF) during 1998 and 1999. In December 2000, TMP formally accepted the role of strategy development and of co-ordinating economic development across all sectors of Merseyside from the MEF.
Secondly, in June 2001, the North West Development Agency (NWDA) called for sub-regions to identify their economic development priorities to inform its Corporate Plan for 2002 – 2005. NWDA is entering a new budget régime from April 2002 and it will develop its regeneration programmes and allocate resources based on the priorities set with its partners geared towards the delivery of the Regional Strategy.
For both reasons, TMP and its partners in Merseyside saw the creation of an Action Plan as a vital step in securing resources for its regeneration efforts and as a means of ensuring that delivery of the actions put forward was co-ordinated effectively across the partnership. In view of this, consultations with partners have already been extensive and are set to widen further based on this consultation draft. Private, public and voluntary sector groups have contributed their views of priorities and actions for inclusion in this draft; many have expended considerable effort and resources in this task. TMP acknowledges this effort and expresses gratitude to all partners for their contributions.
2. Context for the Action Plan
The Action Plan has been significantly enhanced by the inclusion of Halton – all partners now take and define Merseyside to include Halton.
The attached Action Plan reviews some of the economic evidence available in Merseyside which shows that it is poised to achieve significant improvement. Merseyside has substantial European Structural Funds awarded to it. Liverpool City Centre is demonstrating a new vibrancy. The Port and related maritime industries are also growing, fuelled by investment in port facilities. Other sectors – biotechnology, tourism, ICT, creative industries, construction, healthcare, automotives and professional and financial services – all show signs of growth. Unemployment, whilst still much higher than the national or regional averages, is reducing – the year on year reduction is some 13%.
However, other evidence points to an economy that has spare capacity and resources to achieve a step change in activity, in order that statistics like GDP, employment and activity rates start to converge with regional averages. For the economy to achieve convergence over the medium term it has to achieve much higher growth than the rest of the North-West region – the Action Plan includes a gap analysis to show the scale of the task.
Partners have made it clear that positioning the economy to achieve such a level of growth will involve:
a. securing diversification to reduce the dependence on branches of major UK or international firms;
b. developing an entrepreneurial culture;
c. investing in knowledge intensive industries; and
d. creating opportunities for those who have so far not become properly engaged in the economy. It is universally accepted by partners that there is a need to secure growth in the base of firms in Merseyside that are able to grow their markets beyond the sub-region, innovate to achieve competitive advantage and employ people on good pay rates. This needs to be achieved in a manner that reduces the dependency on branches of major UK or international firms (one partner referred to Merseyside having a problem of ‘absentee landlords’) and that is sufficiently diversified to be able to withstand specific sector economic shocks. However, the ambition is also to be people focussed, particularly in respect of those who have yet to become properly engaged in the economy. Priorities and actions have taken into account the sectors that have the potential to take on residents with minimal or no skills; a number of public sector partners stand ready to help at this gateway with measures designed for the unemployed to move them into the economy. Imaginative solutions to reduce the barriers to the disadvantaged and those with disabilities are also programmed in many of the actions. Moreover, social enterprise development is given particular focus since the creation of wealth through social enterprise will create a rung in the employment ladder which will offer opportunity to individuals that might otherwise be excluded from the chance to share properly in the economic prosperity.
There is also a need to develop the economy in a sustainable manner. Merseyside plays a key role in the North West economy in a number of ways but in particular in the movement of goods to and from the Ports. In developing a balanced, sustainable economy, it is imperative that ways are sought, for example, to move more goods on rail rather than on road, to upgrade public transport to reduce car use and to enhance and maintain the rich and diverse natural heritage that those who live, visit and work in this maritime region are offered.
The Action Plan addresses the development task on two levels – the priorities and actions that will drive the sub-regional economy on the one hand and the activities that will ensure the delivery of local development on the other. Local Strategic Partnerships (LSPs) have emerged under national government policy as the form of organisation to secure neighbourhood renewal and a general improvement in the quality of life of the most deprived areas. NWDA has made it clear that it will become a funding partner of the six LSPs in Merseyside.
The priorities and proposed actions put forward by partners have been validated against the Regional Strategy. Partners considered it important that the sub-regional contribution to the implementation of the Regional Strategy was evident.
3. Stratification of priorities Partners were keen to demonstrate the different levels of priority that have arisen in the discussions so far; these are based on an assessment of the differing levels of potential contribution to the achievement of the Regional Strategy. Six categories have emerged. The following economic ‘driver’ priorities and actions are geared to creating growth and wealth as set out in the partners’ economic ambitions: (i) “Big ideas” – there are two concepts that have emerged from this process which, if actioned, the partners believe are of potential international significance and will have a major economic impact; (ii) “Breakthrough” priorities – those actions which are of consequence in their own right at the regional level and which can make a significant economic difference to the sub-region; (iii) Given the need for GDP and employment growth in the sub-region, the Action Plan puts forward priorities and actions for wealth creation through developing business as the next level of economic ‘driver’ priorities;
Clearly there is much to be done to set the conditions for the above priorities to succeed. The Action Plan sets out the following ‘condition setting’ priorities:
(iv) Sub-regional priorities and actions for developing people and communities; and (v) Sub-regional priorities and actions for creating the environment for growth. Finally, there are a number of ‘foundation laying’ priorities and actions that will be being developed by partners in the period to 2005, but which will not be completed until a later date; these are referred to as:
(vi) carry forward priorities.
An overview of priorities and actions is set out below.
4. Merseyside’s “Big idea” projects
(i) A Mersey Waterfront Regional Park The River Mersey and the three great estuaries in Merseyside are what make it different and special. The River is a significant driver of the Merseyside and North West economies through its port and maritime industries, through growing tourism, sport and leisure activities, and through the real estate and development opportunities that a river frontage offers. The River is also a reason why people like to live and work in the sub-region. The amenity value of the River and the estuaries is substantial for local residents. The collective term adopted for the River and the estuaries that partners wish to advance as a brand and as a “big idea” project for development is the Mersey Waterfront Regional Park.
It is worth highlighting that: § part of the Waterfront - Liverpool Waterfront and Commercial Centre - is to be nominated for World Heritage status; § the Waterfront hosts six championship golf courses considered to be in the top 100 in the world, and is a major centre for water sports; § huge tourism potential exists in the resorts (Southport and New Brighton), and in the Liverpool Waterfront and Birkenhead/Wallasey Waterfront; § the River hosts port, marine engineering and related industry of vital importance to the region; and § the Waterfront is a huge environmental asset – because of its significance for migratory birds the Mersey Estuary, for example, is an internationally important wildlife resource with every international designation imaginable.
The project aims to harness, manage and develop this resource to drive the Merseyside economy. Plans include the establishment of a new strategic organisation and the commencement of a more co-ordinated development programme, expected to span a fifteen year period, which will work on four themes – the development of commercial activities; the development and management of the estuaries; the development of tourism, sport and leisure; and flagship and infrastructure development. The following chart summarises the concept. Mersey Waterfront Regional Park
Collaborative strategic partner organisation
Estuary Development Flagship and 1 MerseyPort development of tourism, infrastructure and sport and development4 2 management leisure3
Notes to figure: 1. MerseyPort is currently in development mode led by Sefton MBC but is targeting the involvement of all private sector port, marine engineering and maritime industries and public sector partners. 2. Estuary development and management will embrace water quality, beaches, bio-diversity, formal and informal recreation sites and their access, formal and informal urban parks, sensitive coastal sites of high environmental importance and nature conservation value, country parks and coastal trails and cycleways. 3. Tourism, sport and leisure will include the golf “offer”, watersport development, additional moorings at Liverpool Marina and at Albert Dock, more spectacular river events, promotion of visitor packages, hotel development (particularly the development of a leisure & conference hotel in Southport and a four or five star hotel on the Wirral), restaurants, markets, and the Maritime Museum. Also, importantly there is a need to develop a reputation for world class customer care. 4. Flagship and infrastructure development will include for example Southport and New Brighton resorts, Kings Dock, a major conference centre, a Fourth Grace, Stanley Dock, a new or refurbished ‘iconic’ building in Birkenhead, 12 Quays, the RoRos, Crosby Marina, a Cruise Terminal, and the canal extension from Stanley to Albert Dock.
(ii) A national centre for Biotechnology at Speke Speke already has a long history in biomanufacturing and hosts a number of important producers. There is also a vast potential in the research and biomedical basic and clinical science base at the Liverpool Universities, at Daresbury and in the local health trusts. A collaborative training partnership, Partnership for Learning, has recently been launched at Halewood offering training to the pharmaceutical sector.
There is a plan to develop a national biomanufacturing centre (NBC) at Speke, offering the capacity for early stage biomanaufacturing to support the development and early stage clinical trials in the UK and Europe which is severely limited at present. Without filling this gap, there is a threat to the UK’s ability to exploit its scientific research base and compete with global pharmaceutical producers in the medium term. In addition to NBC, which has already secured national and regional funding of £24m to proceed, the Action Plan proposes the following additional actions: § a significant branding campaign; § the establishment of a Biomanufacturing and Process Development Research Institute and a life sciences showcase / attraction; § an incubator for orphan drugs, third world medicines and natural products; and § a biomanufacturing business park.
Partners believe that, with these developments, few locations globally will be able to offer the equivalent package for biomanufacturing and pharmaceuticals. 5. “Breakthrough” priorities
(i) The SSDAs, the EDZ and Daresbury Much strategic planning has been undertaken in establishing 7 Strategic Spatial Development Areas (SSDAs)1, an Economic Development Zone (EDZ)2 and Daresbury, as a set of areas of economic focus. They have all developed integrated plans, embracing physical, business and people development. They include a significant part of Merseyside’s industry and commercial potential. They are also linked with the main areas of need in Merseyside.
(ii) Liverpool City Centre and Liverpool Vision The City Centre’s importance is recognised in the Regional Strategy. Liverpool Vision has been created as one of the country’s first three pilot Urban Regeneration Companies to drive the development of the City Centre as a key employment, culture, tourism, retail and residential opportunity for Merseyside. It has compiled a comprehensive Strategic Framework and a holistic Integrated Action Plan with a development programme of over £1bn. (iii) European Capital of Culture bid Activities aimed at supporting Liverpool’s bid to become the European Capital of Culture in 2008 are identified as a ‘breakthrough’ priority in view of the image and other benefits that will arise to Merseyside and the North West at large if the bid is successful. Partners therefore acknowledge the importance of aiming for balanced economic development in this Action Plan with due focus being awarded to the development of the city region’s cultural resources as part of the strong sense of place that is engendered particularly through its maritime heritage.
6. Sub-regional priorities – wealth creation through developing business
Merseyside’s key development need is the attraction and development of firms that can deliver a step change in GDP and employment. The Action Plan sets out a wide range of wealth creation development activities. (i) Sector/cluster projects Included are a port and maritime industry cluster development initiative, further development activities in biotechnology, digital content, multi-media and Grid development, construction labour supply initiatives (in view of the massive public and private sector expenditure ahead on construction and repair projects), and further development of the tourism offer (over and above the Mersey Waterfront Regional Park). (ii) Activities aimed at starting and incubating new businesses The plan sets out activities to foster more and better entrepreneurs, to develop incubation facilities, for the provision of start-up business support and to increase the availability of seedcorn and venture capital. (iii) Developing SMEs A range of programmes are being developed by Greater Merseyside Enterprise (GME) to focus on firms with growth potential, using “best practice” frameworks, diagnostic and advisory tools. These will be complemented by a package of support facilities offered by the Universities and Further Education Colleges. (iv) Exporting The Action Plan envisages continuation and growth of the highly successful “Made on Merseyside” initiative supporting firms in their efforts to open up overseas markets. (v) ICT and access to broadband Promoting firms’ competitive advantage is through access to and use of best technology is put forward, with actions geared to ensuring that broadband providers are convinced to invest in Merseyside, thereby offering the widest possible choice to firms. GME will also set about developing a culture of ICT use in growth firms and creating more e:businesses . The ICT Sector Champion plans to promote the development of electronic communities for the identified focus sectors underpinning the projects referred to above but particularly focussed on driving competitiveness. There is also seen
1 The areas are Atlantic Gateway, Huyton-Prescott, Eastern Approaches, Gillmoss-Kirby, Speke Halewood, St Helens, Wirral Waterfront 2 Widnes Waterfront to be a way of using ICT to improve the quality of life of Merseyside’s people and to alter work patterns to secure this. (vi) Investment management Working with TMP, the local authorities have developed new working arrangements to ensure that investment opportunities, either from outside Merseyside or from within, are realised. A much enlarged “virtual” investment team, consisting of TMP and representatives from the local authorities, has been agreed.
7. Sub-regional priorities – developing people and communities
A competitive economy needs skilled people. The activities in this part of the Action Plan start with education – a range of measures to improve educational attainment are proposed: § developing alternative curriculum pathways for 14-19 year olds; § tackling disaffection; § effective use of ICT and the Learning Grid; and § promoting an understanding of the world of work.
It follows with a range of training and people development programmes to support the identified growth sectors and ensure those in employment and those wishing to gain employment can take advantage of the new opportunities that will be created. The importance of initiatives to retain graduates is reflected in a set of actions proposed by the Universities. In view of their growth plans, actions are proposed to support the SSDA’s, EDZ and Daresbury – these are planned to link with areas of need. The overall picture is one of a range of development opportunities to be made available both to the employed and unemployed. There are two clear dimensions which partners wish to integrate – competitiveness and social inclusion.
In terms of community development, the Action Plan recognises that to be sustainable, communities need access to employment opportunities. The development of social enterprise is put forward as one of the solutions to contribute to economic development within local neighbourhoods and communities. Housing also receives attention since partners have highlighted the lack of resources available to renew derelict estates in parts of Merseyside. The newly emerging LSPs are in progress in developing a range of activities to improve the quality of life in the most deprived communities and ensure that job opportunities are focussed into them.
The Action Plan also notes the availability of health impact assessment techniques and proposes that parts of the Action Plan could be tested to ensure that they have a positive influence on people’s health.
8. Sub-regional priorities – creating an environment for growth
Actions are proposed to underpin the economic “driver” priorities referred to in Sections 4 to 6 above. The extension of the designations of strategic sites, a programme of land reclamation, and the development of coastal resorts (in support of the Mersey Waterfront Regional Park) further reinforce the ‘big idea’ and ‘breakthrough’ priorities.
Likewise, a range of transport and movement developments are put forward to improve linkages to the city region, to the city centre, to improve port access and freight movements and enhance access to the Mersey Waterfront Regional Park.
A new focus to investment marketing is proposed which will address itself to the priorities included in this Action Plan.
9. Actions beyond 2005 – “carry forward” projects The attached plan sets out an analysis of the actions which are in the nature of foundation projects, the implementation of which will occur in the period beyond 2005. A vision for each category of priority is included indicating in broad terms what is expected to have been achieved by 2005 as a ‘milestone’ point in Merseyside’s resurgence. 10. Issues for partnership debate with NWDA and Government In preparing this consultation draft Action Plan, partners considered numerous issues that affect the area’s economic development potential. Many items can be tackled within Merseyside but some need to be addressed on a larger canvas. Examples of such issues that were mentioned are highlighted below, which could form the basis of further discussion with the NWDA and other Government departments. In this way, Merseyside plays its part in helping influence, and resolve, issues of a wider nature to promote growth in our area and across the North West. (i) Effective funding and delivery arrangements for business support Recognising the importance of the proposed actions to improve Merseyside’s competitiveness and GDP, partners wish to work with NWDA to develop a more coherent approach to the delivery of business support activity. Part of this coherence surrounds the need for more flexibility from both the Government and European Union in order to make the best use of European Structural Funds for business support activities. Specifically, additional public revenue match support of some £70m needs to be identified. (ii) Housing Partners are concerned that housing renewal, particularly private sector owner-occupied housing in run down areas, should be part and parcel of overall regeneration policy. There are whole neighbourhoods of decaying properties in poor areas of Merseyside that need to be renewed. Lack of attention to this important quality of life issue could act as a drag on other regeneration efforts. (iii) The science base The location of non-university, public sector science and research and development institutions is heavily biased in favour of the South of England. This Action Plan, and indeed the Regional Strategy, is setting about building new industrial activity around its science base. Given the need to address the economic imbalance between the North and South, this issue needs more debate with Government in order to ensure that future decisions on the location of science bases favour other regions than those in the South of England.
11. Way forward
During and following consultation on this draft and the finalisation of the Action Plan in October 2001, discussions will commence between partners and funding agencies to develop a programme. Cost and funding profiles will need to be agreed on a project-by-project basis. Project output and outcome targets need to be set and monitoring arrangements put in place. TMP plans to prepare an annual report to partners on progress. This consultation draft and the final version should guide these discussions and assist partners to put their proposals in a sub regional and regional context. It will enable NWDA to establish targets for Merseyside’s contribution to its targets and, in turn, to its nationally set targets.
12. Conclusion There has been substantial collaboration across partner organisations through TMP in order to develop this Action Plan. This bodes well for the future. With the collective power of all partners combined in this manner, Merseyside can look forward to a brighter economic future, offering people new opportunities in a great place to live, work and visit.
The Mersey Partnership looks forward to consulting with partners on this draft Action Plan.
The Mersey Partnership August 2001 Contents
1 Background 1 1.1 Why an Action Plan? 1 1.2 TMP – the Partnership co-ordinator 1 1.3 NWDA Regional Corporate Plan 2002-2005 1 1.4 Consultations undertaken with Partners 2 1.5 A consultation draft 3 1.6 Acknowledgement 3
2 Context for the Action Plan 4 2.1 The Regional Strategy 4 2.2 To the power of six – what is Merseyside? 4 2.3 Merseyside’s economic strengths and its potential 4 2.4 Merseyside’s economic ambitions 7 2.5 Cross cutting themes 8 2.6 The local dimension – Local Strategic Partnerships (LSPs) 8 2.7 The Action Plan framework used 9 2.8 Stratification of priorities 11
3 Merseyside’s “Big Idea” projects 14 3.1 Introduction 14 3.2 A Mersey Waterfront Regional Park 14 3.3 A national centre for Biotechnology at Speke 17
4 Merseyside’s “breakthrough” priorities 20 4.1 Introduction 20 4.2 The SSDAs/EDZ and Daresbury 20 4.3 Liverpool City Centre and Liverpool Vision 22 4.4 Developing the European Capital of Culture 23
5 Sub-regional priorities – wealth creation through developing business 25 5.1 Introduction 25 5.2 Sector / cluster specific priority projects 25 5.3 Starting and incubating new businesses 29 5.4 Developing SMEs with targeted business support 30 5.5 Exporting Made on Merseyside 31 5.6 ICT and access to broadband 31 5.7 Sector Champions and Sector Development Agencies 32 5.8 Improving the management of the investment process 32
6 Sub-regional priorities – developing people and communities 34 6.1 Introduction 34 6.2 Supporting the economic “driver” priorities through improving educational attainment 37 6.3 Supporting the economic “driver” priorities by training for growth sectors 39 6.4 Supporting the economic “driver” priorities by developing and retaining graduates to fuel the knowledge industries 40 6.5 Supporting the “breakthrough” priorities – SSDAs, EDZ and Daresbury 40 6.6 Supporting the economic “driver” priorities by focussing on employability 41 6.7 Promoting social inclusion – job creation through the social economy 41 6.8 Developing communities – early actions from LSPs 43 6.9 Developing communities – housing 43 6.10 Setting the conditions for economic development – health impact assessments 44
7 Sub-regional priorities – creating the environment for growth 45 7.1 Introduction 45 7.2 Support for the breakthrough priorities – designated Strategic Sites 45 7.3 Supporting the economic “driver” priorities through land reclamation 46 7.4 Supporting the Mersey Waterfront Regional Park – coastal resorts 47 7.5 Supporting the economic “driver” priorities through transport development 47 7.6 Supporting the economic “driver” priorities through a new focus for investment marketing 51
8 Laying the foundations for Merseyside’s renewal to 2010 and beyond – the “carry forward” priorities and actions 53 8.1 Introduction 53 8.2 The “Big idea” projects 53 8.3 The “breakthrough” priorities 53 8.4 The priorities for creating wealth through business development 54 8.5 The priorities for developing people and communities 54 8.6 The priorities for creating an environment for growth 54 8.7 Another important ‘carry forward’ project 54
9 Key issues for partnership debate with NWDA and Government 55 9.1 The way forward 55 9.2 Key issues 55
10 Conclusion 57
Index of Figures: Figure 1: The scope of the Action Plan 10 Figure 2: The process adopted to establish priorities and actions 11 Figure 3: The inter relationships between the stratified priorities in the Action Plan 13 Figure 4: Mersey Waterfront Regional Park 16 Figure 5: The key players in education training 35 Figure 6: An overview of the social economy 41 1 Background
1.1 Why an Action Plan? For some time, partners in the sub-region have indicated the need to update and refresh Merseyside 2010, the strategy prepared in 1998 by the former Merseyside Economic Forum (MEF). At the time of its preparation, the North West Development Agency was newly formed. It was a basis for discussing Merseyside’s economic development objectives, actions and targets with NWDA. It was designed to demonstrate Merseyside’s coherence and the maturity of its partnership working. As an additional benefit it was drafted in a style that was closely aligned with the European Objective 1 Programme 2000-2006. The Mersey Partnership (TMP) has had plans to update Merseyside 2010 since it accepted the strategic economic development role from the MEF. Only recently, it commissioned preliminary work 3 to review current economic development and regeneration activities and recommend the most appropriate ways to engage with partners. During this review, the North West Development Agency (NWDA) called for sub-regions to develop action plans to identify priorities which would inform its Corporate Plan for 2002 – 2005. TMP has welcomed this call and, with contributions from a wide range of partners, has compiled herein a set of priorities and actions that are designed to promote the regional and sub-regional economies. The process has involved significant collaboration, joint discussions and debate. Partners have recognised the need to consider issues and priorities beyond their local area or organisation and have recognised the need to demonstrate contribution to the Regional Strategy on the one hand and to the many sub-regional strategies on the other.
1.2 TMP – the Partnership co-ordinator In a letter from the NWDA Chief Executive to partners of 15th March 2001, the agency requested the establishment of a sub-regional organisation which would be recognised by partners and able to be the focal point of the sub-region’s relationship with it. In addition it requested that the same organisation should take a lead in attracting investment into the sub-region and to ensure that interest is converted into actual investment. Funding support from NWDA for such organisations is offered to undertake this role. Fortunately, Merseyside had already moved in this direction. In December 2000, TMP formally accepted the new role for it recommended by the report: “What’s Best for Merseyside?” 4 This acceptance led to the cessation of the MEF and the transfer of its role of strategy development and of coordinating economic development across all sectors of Merseyside. TMP was enabled to speak with one voice on matters of sub- regional economic development importance; partners confirmed TMP’s role to NWDA at the meeting on 19 June 2000, which launched its corporate planning process.
1.3 NWDA Regional Corporate Plan 2002-2005 The call by NWDA for sub-regions to identify their economic development priorities is designed to inform its Corporate Plan 2002-2005. From 2002/3, the NWDA moves into a single financial framework that will enable it to develop its own regeneration programme in the context of its Regional Strategy. Therefore it is for NWDA to decide how to allocate its resources in its region, subject only to its obligation to work within a given capital/revenue split.
3 A Transitional Review, AMION Consulting: May 2001 4 The European Institute of Urban Affairs and AMION Consulting: September 2000 1 Its approach is to embark on discussions at a sub-regional level, to establish with partners the sub-regional priorities for action which flow from the Regional Strategy, and which strengthen the economic base of those areas. It also wishes to reflect the geographical priorities defined by the Government in determining the allocation of Neighbourhood Renewal funding. The Agency sees itself as a partner in the newly established Local Strategic Partnership (LSPs), supporting the economic aspects of their programmes.
1.4 Consultations undertaken with Partners Consultations have been wide ranging. The table below identifies the organisations that have contributed to the Action Plan but understates the scale of additional discussions that have been held around individual topics and issues.
Merseyside Private Sector Group Liverpool University and LJMU – Vice Chancellors International Trade and Foreign Capital Greater Merseyside Learning & Skills Group Council Merseytravel Greater Merseyside Enterprise Local Strategic Partnerships (NWDA led Greater Merseyside Transport Group through local authorities) (including Railtrack, MDHC, Virgin, Arriva, and Road Haulage Association) Sector Co-ordinators (Voluntary, Higher Social Economy representatives Education, Further Education, Pathways, (NWDA led) Local Authorities, Private Sector) NWDA - various Liverpool Vision Local Authority Chief Executives and Liverpool Chamber of Commerce & Regeneration Directors Industry (representing the Merseyside Chambers)
Government Office North West Objective 1 Priority Managers and Cross-Cutting Theme Managers
Various agencies involved in incubation MerseyPort (working group)5 (NWDA led) North West Housing Forum The Housing Corporation Health Authorities Merseyside and Cheshire Workforce Development Confederation The Employment Service Mersey Strategy Steering Group Hothouse The Merseyside Incubation Partnership (NWDA led)
5 MerseyPort is a project title for a potential new organisation geared to championing the important Port and Maritime Industries sector/cluster and particularly the harnessing of new investment and economic activity, and developing the skills of the workforce and skills of those not employed to support the projected growth. A working group has been established by local authorities with NWDA support with support from key private sector players. It is an activity considered of importance to the Region’s future economic prosperity where uniquely the sub-region can take the lead role on the Region’s behalf. 2 1.5 A consultation draft This document has the status of a consultation draft. TMP seeks partners' views on the priorities and proposed actions herein. TMP's Board has also issued the draft to NWDA so that it can review it for the purposes of compiling its draft Corporate Plan. Consultation on this draft and on the NWDA's Corporate Plan are scheduled for September and October 2001, following which revisions will be considered by both the TMP and NWDA Boards. Both will be finalised during November 2001.
It will be noted that this draft does not include either the costs of the proposed actions nor their proposed funding sources. This is because generally partners were unable to offer this level of information within the short timetable involved; also July and August vacations limited the responses of a number of partners. Therefore, the priorities and actions are put forward in outline in order to guide partner discussion on the priorities but not to secure the necessary funding. Discussions between partners and funding agencies will therefore follow agreement of this consultation draft. The potential economic impact of the proposed actions is also not included, again due to the short timescale involved. Work will continue during the consultation period where appropriate to demonstrate the potential economic impact of the actions proposed.
1.6 Acknowledgement TMP wishes to express its gratitude to partners for their contributions to this Action Plan. In many cases this involved considerable effort and resources.
An informal Steering Group was formed to work with TMP to guide the process of consultation and the content of the Action Plan. Steering Group members were drawn from North West Business Leadership Team, Liverpool Chamber of Commerce and Industry, Merseyside Policy Unit, Speke Garston Development Company, North West Development Agency, Halton BC, Sefton MBC, and Liverpool City Council. TMP is grateful for the time and enthusiasm offered by Steering Group members in interpreting the substantial level of information collected for this task and in helping to shape the Plan.
3 2 Context for the Action Plan
2.1 The Regional Strategy The Action Plan needs to demonstrate its contribution to the Regional Strategy and its themes of improving competitiveness, enhancing environmental quality, increasing social inclusion and achieving sustainable development. The priorities and proposed actions set out in the sections below have been validated against the eight Guiding Principles 6 which run through the Strategy, using the tests put forward by NWDA 7.
2.2 To the power of six – what is Merseyside? Halton Borough Council has been accepted as a full partner in Merseyside and in respect of all strategic matters becomes the sixth local authority. Clearly this is in the form of a strategic alliance given Halton’s status as a unitary authority. Its full strategic partner status is evidenced in a number of ways: § it has joined TMP on the same subscription basis as other local authorities; § it has joined local authority operational groups, such as the Network Group; § it has been included in the scope of the new agencies formed – Greater Merseyside Enterprise, Greater Merseyside Learning & Skills Council and Greater Merseyside Connexions. Therefore throughout this document, reference to Merseyside includes Halton.
2.3 Merseyside’s economic strengths and its potential
A strengthening economy Although the sub-region has suffered a weak economic performance for a considerable time, there is growing evidence that it is gathering strength. The Partners believe that carefully targeted intervention can ensure that it realises its potential. Raising its GDP and employment levels will substantially contribute to the regional targets for economic performance, since its weak economic performance in the past has adversely affected regional economic statistics. In other words, improving the Merseyside economy will show through directly in an improved regional economic performance. In turn Merseyside is aiming to focus on its economically weakest areas in order to improve its overall economic performance. Social inclusion therefore has a clear economic logic. Merseyside has developed integrated plans to ensure that the main areas of need (Pathways and CED areas) are aligned with areas of opportunity (SSDAs/EDZ and Daresbury) in order to achieve a more balanced formula for economic development.
The benefit of its European Structural Funds Its Objective 1 and 2 statuses confers on it a very substantial level of European Structural Funds for economic intervention. It is crucial that the UK public sector funds made available to match the European funds are made available in the period if the potential now demonstrated is to be realised.
6 The eight Guiding Principles are competitiveness, sustainable development, opportunity and need, sustainable communities and social inclusion, information and communications technology, creating a learning culture, subsidiarity and partnership and better use of resources. 7 Future Regeneration Priorities and Programmes: NWDA letter to partners 15 March 2001. 4 UK public sector funding of economic development on Merseyside is a sound investment for two reasons § funds can normally be matched with European Structural Funds making them stretch further and achieve more; § it is essential that the current economic buoyancy in evidence is capitalised on during the period that European funds are available.
The positive economic evidence A number of factors have led to an increased level of confidence in the sub-regional economy: (i) Liverpool City Centre A more buoyant city centre is now evident with strong growth in its property market and rental levels; confidence is high and investment levels stronger than for many years. It shows strength8, in comparison with comparator city centres, in financial intermediation, professional and support services, tourism, creative industries and higher education. It has established one of the country’s pilot Urban Regeneration Companies (URCs) - Liverpool Vision - which is implementing its agreed strategy, a programme involving investment of over £1bn in the period to 2006. Since the city centre hosts 75,000 jobs across over 2450 firms, its economic well-being is crucial to the whole of Merseyside. It also hosts the sub-region’s principal cultural resources and activities, which helps to give the sub-region its identity and offers all residents in the sub-region cultural and leisure opportunities. The city is bidding for the status of European Capital of Culture in 2008. There are a number of public sector organisations in the City Centre whose economic contributions are significant and a number are evidencing growth in activity and employment. Of particular note are Liverpool University and Liverpool John Moores University. In both cases they are establishing numerous activities aimed at supporting the Merseyside economy; they are substantial employers in their own right. Likewise the health sector in the City and throughout the sub-region is a major employer. In line with government policy it is set to recruit in large numbers to improve its services. (ii) The Port and related maritime industries Approximately one quarter of the North West region’s imports and exports are captured by the Port – some 30 million tonnes/units of goods per annum. This includes 20% of UK-US container traffic, and 30% of Irish unitised traffic. The role of the port in animating regional prosperity is therefore highly significant. Merseyside, through the port, is the link with two other nations - Wales and Ireland. Projected growth in port volumes is strong, fuelled by investment in two new river berths aimed at enhancing the Port’s competitiveness in the Irish Sea roll-on/roll-off (RoRo) ferry business. (iii) Other sectors and clusters There is evidence of significant growth and potential growth in biotechnology, tourism, ICT (including digital content), creative industries, construction (including maintenance), healthcare, automotives and professional and financial services.
8 By reference to location quotient - the ratio of the proportion of employment in an industry or cluster locally to the proportion in the same industry or cluster nationally; comparator cities included in the comparison were Birmingham, Bristol, Cardiff, Chester, Glasgow, Leeds, Manchester, and Newcastle.
5 This action plan will focus on those sectors or clusters of activity where public sector intervention can make a real difference to the level of impact of the projected growth. Past evidence has shown that intervention is often most effective in the labour market – in other words ensuring that resources are available to prepare the skills of employees as well as unemployed residents to enable them to take the employment and career opportunities that will emerge in the growth sectors. (iv) Employment/unemployment Based on July 2001 Labour Force Survey data, there has been a reduction, year on year, of claimant count unemployment of 6022 (or – 13.4%), and 371 in Halton (or – 13.9%). However, the unemployment rate remains persistently high compared with the national average. The improvement in unemployment, however, also masks the true underlying problem of low activity rates 9. Merseyside has 659,000 economically active – an activity rate of 56.8% (based on 1.16m economically active residents over 16), compared with the North West average of 61.4, and a UK average of 62.9% 10. These two indicators highlight the key economic issue that needs to be addressed – the lack of demand. However, as indicated by the positive economic evidence and by the willingness for partners to tackle the issues collaboratively, the conditions are right for actions to be put in place that will stimulate demand. (v) Merseyside’s GDP gap
Table 1 shows the 1998 GDP levels for the UK, North West and Merseyside. Assuming the population of the areas and other variables remained unchanged, to reach the same level of GDP per capita as the UK and the North West, Merseyside would have to increase its GDP by £5.3bn (43%) and £3bn (25%) respectively.
Table 1: 1998 GDP levels for the UK, North West and Merseyside
Merseyside GDP GDP GDP (£M) req'd to achieve (Per Capita) UK and NW Difference % increase GDP per capita UK 743,314 12,548 17600.72 5314.72 43% North West 75,275 10,909 15301.74 3015.74 25% Merseyside 12,286 8,759
Source: Local area and sub-regional GDP, ONS, 26 April 2001
(vi) The geography of opportunity – the Strategic Spatial Development Areas (SSDAs), the Economic Development Zone (EDZ) and Daresbury
Under the new European Structural Fund programmes (both Objective 1 and 2) there has been a substantial shift towards adding a geographical focus, concentrating resources on the localities best placed strategically to create jobs and wealth. This connects up to the focus in previous programmes on areas in need (so called ‘Pathways’ areas and community economic development or “CED”). In the Objective 1 areas of Merseyside there are eight Strategic Spatial Development Areas (SSDAs) one of which is Liverpool City Centre which is dealt with under a separate measure. In the Objective 2 area, Halton is bidding for
9 This is the total of economically active people as a percentage of all persons in the relevant age group. 10 Based on Labour force Survey August 2001. 6 resources to concentrate on the Widnes Waterfront Economic Development Zone. A further complex of strategic economic and employment significance lies at Daresbury.
Together these ten areas represent the existing major clusters of economic activity within Merseyside which have growth potential; they incorporate most of the major land development opportunities and in accordance with the direction of Government policy, many of the key sites are brownfield; together they represent a range of types of locations which should ensure Merseyside’s “offer” as a sub region is highly competitive nationally and internationally. The range includes key waterfront areas central to the conurbation, major industrial centres in and around vital corridors accessing the City Centre and the port, major peripheral sites, and sites at gateways to the sub region. All of these areas are well placed in relation to strategic transport networks, but nevertheless require further investment if competitiveness is to be improved.
(vii) Tourism
Tourism is a substantial contributor to wealth and employment in the sub-region region. It currently supports an estimated 21,800 jobs in Merseyside (some 4.5% of total employment in the region), contributes visitor spending of around £604 m per annum, and provides in the region of 2.3% of total sub-regional GDP 11. It has the capacity to grow particularly given the unique opportunities provided by the Mersey Waterfront, together with and its sporting and resort attractions.
2.4 Merseyside’s economic ambitions It is universally accepted by partners that there is a need to secure growth in the base of firms in Merseyside that are able to grow their markets beyond the sub-region, innovate to achieve competitive advantage and employ people on good pay rates. Moreover, partners intend to make Merseyside a world-leading research and training centre in issues related to the Information Society. This needs to be achieved in a manner that increases firms with their main base in Merseyside or, put another way, reduces the dependency on branches of major UK or international firms (one partner referred to Merseyside having a problem of ‘absentee landlords’). Alongside this is the need for the sub-region to be sufficiently diversified to be able to withstand specific sector or more widespread economic shocks.
However, the ambition is also to be people focussed, particularly in respect of those who have yet to become properly engaged in the economy. Priorities and actions have taken into account the sectors that have the potential to take on residents with minimal or no skills; a number of public sector partners stand ready to help at this gateway with measures designed for the unemployed to move them into the economy. Imaginative solutions to reduce the barriers to those with disabilities are also programmed in many of the actions. Moreover, social enterprise development is given focus since the creation of wealth through social enterprise will create a rung in the employment ladder that will offer opportunity that will reach some individuals that might otherwise be excluded from the chance to share properly in the economic prosperity that partners target. This people focus is critical because just as Merseyside’s past weak economic performance has held back the North West’s economic achievements, properly engaging poorer communities within Merseyside is central to improving the sub-region’s own economic performance.
There is also an ambition to develop the economy in a sustainable manner. Merseyside plays a key role in the North West economy in a number of ways but in particular in the
11 Report on Tourism on Merseyside, BDO Stoy Hayward 1998 7 movement of goods to and from the Ports. In developing a balanced, sustainable economy, it is imperative that ways are sought, for example, to move more goods on rail rather than on road, to upgrade public transport to reduce car use and to enhance and maintain the rich and diverse natural heritage that those who live, visit and work in this maritime region are offered.
2.5 Cross cutting themes Business plans have been prepared for the three cross cutting themes which have influenced the actions referred to in sections 3 to 9 below:
· Information & communication technologies (ICT) is widely recognised as fundamentally changing the way in which we work and live our lives. ICT has been designated a cross cutting theme in European funding programmes because the European Commission concludes that such technologies have a significant contribution to make to economic and social regeneration.
· Environmental sustainability derives from sustainable development, which is defined as “meeting the needs of the present without compromising the ability of future generations to meet their own needs”. It has the following objectives in underpinning the sub-region’s priorities and actions:
- to promote environmental performance as a factor for economic advantage; - to ensure businesses remain competitive by meeting existing and anticipated environmental legislation; - to improve the environment to raise perception of the sub-region to investors, residents and visitors; - to maximise opportunities in the environmental goods and services growth sector; - to move Merseyside towards a more sustainable future.
· Equal opportunities and social inclusion is wide ranging dealing with three strands: - gender equality; - access for people with disabilities; and - social inclusion for those people who are remain marginal to the mainstream economic and social life of the region.
2.6 The local dimension – Local Strategic Partnerships (LSPs) This action plan focuses on sub-regional priorities but as stated in section 1.3 above there is an important local dimension to the regional and sub-regional economic and social agendas which needs to be acknowledged as part of this Action Plan. LSPs are single bodies that bring together at a local level the different parts of the public sector as well as the private, business, community and voluntary sectors so that different initiatives and services support each other and work together. They are non-statutory, non-executive organisations that operate at a level which enable strategic decisions to be taken but they need to be close enough to individual neighbourhoods to allow actions to be determined at community level.
8 The six LSPs are in various stages ranging from inception to well advanced. Most are in a "medium" stage, having met once or twice, agreed terms of reference and in some cases have agreed an interim vision and strategic priorities pending the production of a statutory Neighbourhood Renewal Strategy and Community Strategy, both due by April 2002. All are based on previously existing Partnerships with varying degrees of further development, which in most cases has not yet been fully completed, such as the basis of community representation.
Liverpool was a pilot authority for the New Commitment to Regeneration and as a result the Liverpool Partnership Group (LPG) has been in existence for some time. It is the most complex: it has established a higher-level Liverpool First Board which agrees vision, priorities and targets for both the LPG and Liverpool First. Beneath the LPG there are 5 thematic partnerships and 5 area-based cluster partnerships, and a far wider Standing Conference for the community and voluntary sectors is under development using CEF resources.
None have yet been accredited by GONW, hardly surprising, given that Government Guidance on LSPs was only recently received (June 2001) and further guidance on accreditation is not now due until September 2001. All LSPs are targeting accreditation by March 2002. There is no requirement for LSPs to be accredited for the purposes of spending NRF in 2001/02 but they are required to agree a timetable with GONW in order that they may be accredited to prepare for NRF release in 2002/03.
Local partners will decide the full range of work of their LSP. Each LSP is making progress in:
· preparing and implementing a community strategy for the area, · bringing together local plans, partnerships and initiatives to provide a forum through which mainstream public service providers (local authorities, the police, health services, central government agencies and so on) work effectively together to meet local needs and priorities; · working with local authorities that are developing a local public service agreement (PSA) to help devise and then meet suitable targets; and · developing and delivering a local neighbourhood renewal strategy to secure more jobs, better education, improved health, reduced crime, and better housing, closing the gap between deprived neighbourhoods and the rest and contributing to the national targets to tackle deprivation (these cover education, employment, crime, health and housing).
2.7 The Action Plan framework used The structure used in the Merseyside 2010 strategy has been accepted by partners as the appropriate framework to be used for the preparation of this sub-regional Action Plan. The key objectives from Merseyside 2010 were offered to partners to guide their deliberations and ensure that they reflected on the full range of objectives that are appropriate to securing balanced and sustainable economic development. Another benefit of the use of this framework has been that it is closely aligned with the Objective 1 Single Programming Document therefore ensuring that the significant level of activities that are underway under the Objective 1 programme can be easily aligned with this Action Plan. The Objective 2 programme has three priorities which also align broadly with Merseyside 2010. The human resource development in Halton is funded through Objective 3 which is managed on a regional basis.
9 The following diagrams were issued to all partners as part of a briefing note for the development of the Action Plan. Figure 1 sets out to the scope of the contributions requested from Partners; it indicates the early ideas put forward by TMP as priorities which was intended to give partners guidance. Figure 2 summarises the process that TMP established for the creation of the consultation draft, the review and assessment mechanisms used and the subsequent consultations. Figure 1: the scope of the Action Plan
Key objectives Drivers for Change Vision for Merseyside Potential Priorities Widespread increase in - Sector focus competitiveness of existing 1 businesses 1 - ICT & access to broadband
Exploit the knowledge base - HEI spin outs 2 Developing 2 - Incubation
-Processes for winning Attract and encourage new Business 3 investment 3 new/retaining investment
- Targeted entreprenuer/ Create and encourage an business support 4 entrepreneurial culture 4
Raise educational standards and A world class - Improve educational attainment develop a culture of lifelong learning 5 city - region 5 - Lifelong learning interventions Developing People - Physical and labour market Increase the employability of all that attracts and Communities linking of opportunity and need 6 residents not in work 6 people to - Skill development Develop an employment rich live, work, - Develop social entrepreneurs 7 economy 7 - Collaborative ventures invest Develop the Regional Centre as a - Liverpool Vision Delivery Plan magnet to attract people and and visit 8 - Mersey Waterfront 8 business to the city-region - SSDAs Promote areas of strategic Creating an - Strategic sites opportunities and develop a premier Environment for 9 - Derelict land 9 image for the city-region - Marketing the City region Growth - Port access - Inter-modal shift Maximise external linkages 10 - Airport - Gateways 10 to/from Liverpool
10 Figure 2: The process adopted to establish priorities and actions
TMP Board TMP Board TMP Finalise agree role review Special P Key draft Decisions 26.6.01 31.7.01 Board
Process Priorities and actions Consultation Partners to ‘long list’ proposed by Stratify priorities implement Validation Assessment and actions September/ partners across 10 key priorities objectives (per 2010) October2001
Activities PartnerPartner consultationsconsultations ReviewReview longlong listlist AssessAssess listlist FinaliseFinalise prioritiespriorities 2002 – 2005 eg n Merseyside Private Sector n Review potential Group impacts n Fit with RS n Contribution to RS n Chambers of Commerce n Review strategic n Establish timing n Review by Steering n GME importance n Allocation of Group n GMLSC responsibilities n Assess contribution for action to RS n ES n Review by Steering n Split priorities at n Local authorities Group ‘Carry‘Carry--forward’forward’ three levels: n Universities projectsprojects - “Big Ideas” n Objective 1 Coordinators - “Breakthrough” n Merseytravel priorities(based on n Determine projects n NWDA significance to the requiring “foundation NW Region) n Liverpool Vision work” and actions - priorities (based on n LSPs/Pathways beyond 2005. significance to n GONW Greater n Health Authorities Merseyside); n Housing n Others Consultation draft - TMP to Validated sub- Assessment Summary of review Long list of priorities Outputs regional priorities summary priorities and action planned actions annually
2.8 Stratification of priorities Partner discussions have emphasised the importance about what constitutes a priority12. The sections that follow identify the priorities and then describe the proposed activities under each priority heading.
12 A priority for this Action Plan has been taken to be relating to an activity that it is likely to have an impact beyond a local area or organisation, that engages with other partners and that contributes to the Regional Strategy. 11 Partners were also keen to acknowledge that there are different levels of priority that need to be included in this Action Plan. The discussions have identified the need to analyse the sub-region’s priorities and actions into the following six categories:
The following economic ‘driver’ priorities and actions are geared to creating growth and wealth in line with partners’ economic ambitions: (i) “Big ideas” – there are two concepts that have emerged from this process which, if actioned, the partners believe are of potential international significance (section 3); (ii) “Breakthrough” priorities – those actions which are of consequence in their own right at the regional level and which can make a significant economic difference to the sub-region (section 4); (iii) A wide range of sub-regional priorities and actions for wealth creation through developing business (section 5);
In order to set the conditions to support the achievement of the economic development envisaged by the above economic ‘driver’ priorities, the Action Plan sets out the following ‘condition setting’ priorities:
(iv) Sub-regional priorities and actions for developing people and communities (section 6); and
(v) Sub-regional priorities and actions for creating the environment for growth (section 7).
Those ‘foundation laying’ priorities and actions that will be being developed by partners in the period to 2005, but which will not be completed until a later date are referred to as:
(vi) carry forward priorities (section 8).
The following chart shows the inter-relationships between these stratified priorities.
12 Figure 3: The inter-relationships between the stratified priorities in the Action Plan
Merseyside Action Plan 2002 - 2005
CONDITION ECONOMIC SETTING PRIORITIES DRIVER PRIORITIES
Developing People and “Big Idea” Projects Communities Of international - Education attainment - Mersey Waterfront significance - Lifelong learning Regional Park - Skill development - Biomanufacturing Centre - Social enterprise - LSPS Breakthrough Priorities Of North West - SSDAs/ EDZ/Daresbury - Housing region - Liverpool City Centre - Health significance NW Region - European Capital of GDP and Culture bid Creating an Environment Employment
for Growth Priorities for Wealth Creation Through - Strategic sites Developing Business - Land reclamation - Sectors / cluster projects Of significance in lifting - Coastal resorts - Incubation Merseyside’s - Seedcorn funding - Transport to and from GDP and “priority” places - Investment management Employment - SME development - Investment marketing of - Exporting priorities - Broadband access
Cross cutting themes – ICT, environmental sustainability and equal opportunities/social inclusion
The following sections describe the partners’ priorities and proposed actions under each of these categories.
13 3 Merseyside’s “Big Idea” projects
3.1 Introduction In building its Action Plan and priorities for the sub-region, partners have put forward their views on where they believe the sub-region’s competitive and comparative advantage lies. It has many opportunities but the two projects set out below are agreed by the partners as potentially world class; they both build on the area’s history and on major past and recent public and private sector investment. Interestingly, they also build on two synergistic needs of the economy. The low GDP performance in the sub-region points to the need to promote business investment in high value added activities to create the scale of wealth consistent with sustainable economic development with much more limited public sector intervention. At the same time it needs to build on sectors that offer opportunities for its residents, particularly the unemployed with limited skills but a keenness to work. Both proposals contribute in these ways and at the same time both will add positively to the sub-region’s image – an essential test of their worth.
3.2 A Mersey Waterfront Regional Park The River Mersey is what makes Merseyside different and special. The River is a significant driver of the Merseyside and North West economies through the port and maritime industries, through growing tourism, sport and leisure activities, and through the real estate and development opportunities that a river frontage offers. The river is also a reason why people like to live and work in the sub-region. The amenity value of the River is substantial for local residents. Merseyside is a maritime sub-region which spans the River Mersey and three great estuaries 13. This Waterfront was, is and will always be at the heart of its sense of place, its economy and its culture. The Waterfront is recognised internationally as something special and the government recently announced that part of the Waterfront - Liverpool's Waterfront and Commercial Centre - would be one of the UK sites, which it will nominate to UNESCO for World Heritage Site status. An historic place or group of buildings, which has outstanding universal value, can be added to the list of World Heritage Sites by UNESCO on behalf of the whole international community alongside sites in the UK places like Stonehenge, Durham Cathedral and the cities of Bath and Edinburgh and the Great Wall of China internationally. But there is much more to the Waterfront. It hosts six championship standard golf courses considered to be within the top 100 courses in the world including Royal Liverpool, and Royal Birkdale. It has the resorts of Southport and its smaller but important neighbour, New Brighton. It has significant tourist attractions in Liverpool and Wirral. It is an internationally renowned venue for sailing. And local residents love the riverside. The estuaries are a huge environmental asset. Merseyside is unique amongst the UK metropolitan areas in having such an extensive natural resource, with long sea and river views, beaches, historic river frontages, reflected light, and associated green areas. Because of its significance for migratory birds the Mersey Estuary, for example, is an internationally important wildlife resource: a site of Special Scientific Interest; a European Special Protection Area; and an international RAMSAR site. It is, very literally, a unique selling point. Properly managed and developed - as the Mersey Waterfront Regional Park – all this could be harnessed, branded and importantly managed as a powerful device for
13 The Mersey, the Dee and the Ribble 14 developing the sub-region’s economy and image. Partners have already commenced work on a new collaborative venture - MerseyPort - to promote the development of port and maritime industries aimed at securing more investment in added value activity from all of the commercial potential of this strategic location. It now wishes to set about attracting more tourists and visitors and securing a better quality of life for residents. The synergies with the sub regional economic development drive are clear - tourist markets are significant and growing (including coastal resorts, golf, and urban heritage tourism), and the premium residential offer that the Waterfront represents can assist in the attraction and retention of skilled and talented individuals. (Other parts of this Action Plan, such as the improvement in the sub-region’s educational attainment reinforce this – see section 6.2.) This potential is still little appreciated; not surprisingly. Existing partnerships have achieved much in recent years including the improvement in water quality and the internationally recognised coastal management techniques 14. However, although some areas (like the Formby Coast) are attractive and well managed, other green and hard assets are indifferently cared for. Both banks of the river host significant private sector commercial activities aimed at deriving maximum economic returns from their land and facilities. The Mersey Waterfront Regional Park will invigorate the numerous and disparate activities of partners and help achieve an overall vision, coordination, and direction but to realise the true potential of these assets three things must happen. Firstly a significant strategically managed programme of capital works is needed. Such a programme must be over and above what is already happening. It will involve land reclamation, enhancement to many existing green areas and flagship developments over approximately a ten to fifteen year time span. Secondly, Partners have identified the need to drive the development of the Mersey Waterfront Regional Park through a new collaborative organisation, comprised of representatives of all the stakeholders, but importantly through four themes each of which will have a ‘champion’. Wirral MBC has agreed to take the lead in developing the concept and establishing the new collaborative organisation. The themes to be included in the Regional Park will be MerseyPort (see Section 5.2), tourism, sport and leisure development (including the golf “package”), estuary development and management, and flagship and infrastructure development. In this manner, the programme will embrace the development of competitive port, marine engineering and maritime industry facilities, the enhancement of both green areas (like the Speke coast) and hard landscaping like the Wallasey and Southport waterfront as well as flagship developments like Kings Dock, a Fourth Grace and an iconic building on the opposite bank in Birkenhead. It also needs to lead to induced private investment such as quality hotels, leisure and retail venues, and high quality business and residential accommodation. Attention will also be given to the strategic transport and movement to and from the Regional Park, with a particular focus on managing the tensions between uses. Thirdly, an increasingly recognised key to success is the management of the venture and the upgrade and maintenance of the Regional Park. The new collaborative organisation formed to include key stakeholders in the Regional Park will consider the best option for the cost effective, consistent and quality management of all the public spaces both green and ‘hard’. The partners therefore propose to work with the NWDA and others to bring forward a number of actions to create a Mersey Waterfront Regional Park; the project will seek to add to the investment already underway through the private sector, local authorities and Liverpool Vision. It will target a quantum increase in visitors and importantly a lengthening
14 Sefton MBC has recently led on an Interreg IIb project involving coastal zone management with partners in Holland. 15 of their stay. It will define the added value that the Regional Park will contribute over and above the actions already underway and it will identify its special funding needs. It will protect and enhance the huge private and public sector investment in restoring Liverpool to a premier European city within its city region. It will lead to more coherent planning, offering more clarity to partners and funders for the purposes of programming the key changes needed. An example will be the completion of the development of Liverpool’s key waterfront developments in the next three or four years to be complemented by a focus on developing the Birkenhead and Wallasey waterfront so that both sides of the river contribute to this vision of a great place to be.
Figure 4: Mersey Waterfront Regional Park
Collaborative strategic partner organisation
MerseyPort1 Estuary Flagship and development Development of infrastructure 4 and tourism, sport development 2 management and leisure3
Notes to figure:
4. MerseyPort is currently in development mode led by Sefton MBC but is targeting the involvement of all private sector port, marine engineering and maritime industries and public sector partners. 5. Estuary development and management will embrace water quality, beaches, bio-diversity, formal and informal recreation sites and their access, formal and informal urban parks, sensitive coastal sites of high environmental importance and nature conservation value, country parks and coastal trails and cycleways. In addition there is a need to reach agreement with Waterfront landowners about access opportunities which conflict with commercial uses. 6. Tourism, sport and leisure will include the golf “offer”, watersport development, additional moorings at Liverpool Marina and at Albert Dock, more spectacular river events, promotion of visitor packages, hotel development (particularly the development of a leisure & conference hotel in Southport and a four or five star hotel on the Wirral), restaurants, markets, and Maritime Museum and Industrial heritage. Also, importantly there is a need to develop a reputation for world class customer care. 7. Flagship and infrastructure development will include for example Southport and New Brighton resorts (see section 7.4), Kings Dock, a major conference centre, a Fourth Grace, Stanley Dock, a new or refurbished ‘iconic’ building in Birkenhead, 12 Quays, the RoRos, Crosby Marina, a Cruise Terminal, and the canal extension from Stanley Dock to Albert Dock.
Lead partner: Wirral MBC
16 3.3 A national centre for Biotechnology at Speke There are considerable opportunities for biotechnology development in Merseyside based around the science base and the partners see the establishment of the biomanufacturing facility at Speke as a ‘breakthrough’ priority in its own right. The sub-region, working with other regional resources, already includes many pieces of the jigsaw but there is a need to ‘ think big’ to complete it in a manner that will make a stunning picture.
The building blocks of this concept are as follows. § The area has a recognised history in biomanufacturing with the Distillers’ plant at Speke being one of the first two factories in Europe to produce penicillin by fermentation (1945) and Eli Lilly’s Speke site is where the world’s first biologic - insulin - was produced in commercial quantities (1981) and is the world’s major supplier of Human Growth Hormone (1985). Also Medeva at Speke (now Evans Vaccines) was first to take a biologic, Hepacare®, through the European Regulatory system (2000). § There is vast potential in the research and development and biomedical basic and clinical science base at the University of Liverpool, Liverpool John Moores University and Daresbury and in the health sector’s scale of operation in Liverpool and Wirral but in particular its teaching hospitals and their facilities which support the value chain from research to clinical trial to commercialisation in this high value added key sector. § Evans Vaccines and Eli Lilly are existing Speke based producers and as one of the key local players has noted “more people wake up and go to work to produce biopharmaceuticals for a global marketplace in Speke than anywhere else in Europe”. § Partnership for Learning (PfL) a unique collaborative private sector led skills development venture with a focus on the pharmaceutical sector was established earlier this year on a site adjacent to the producers. § Powder Systems has a unique position in a number of specialist pharmaceutical markets;
The project proposed for making Speke a national biotechnology centre includes five components:
(i) A significant branding campaign
o to promote Speke for biomed/biomanufacturing building on both its tradition in modern biotechnology, its current producers and its potential; o a global advertising and promotion programme; o on site banners/sculpture/structures to denote brand; o a specialist information office at Speke Garston Development Co Ltd (SGDL); o the communication of the key selling message that research can applied locally in ‘in-market supply’ conditions; and o the creation of opportunities for shared services provision.
Lead partners: MerseyBIO, TMP, Speke Garston Development Company and NWDA
17 (ii) National Biomanufacturing Centre (NBC)
Such a centre is needed the develop capacity for early stage bio manufacturing to support the development and early stage clinical trials in the UK and Europe which is severely limited at present. Without the ability to obtain clinical grade biologics at reasonable cost, early stage and start up companies cannot secure investment. This market gap – the lack of bio-development and manufacturing capacity - poses a threat to the country’s ability to exploit its scientific research base and compete with global pharmaceutical producers in the medium to long term. The result will be that UK firms will be forced into licensing opportunities overseas too early in the ‘value chain’. The other major risk is the ‘brain drain’ that will result if scientists are unable to procure the commercialisation of their research in this country. The NBC is being developed with national, regional and local funding resources, in order to overcome this identified bottleneck in biotechnology development. It will carry out the initial process development and manufacture of biopharmaceuticals, which could then be used in early trials. It will plug a gap that currently exists to speed up transfer from research to commercial exploitation. A major development of this type contributes substantially to the Region’s science base including the ‘Liverpool Health Corridor’15, the relevant Universities, and the Research Institutes including Daresbury Laboratories. It also helps to reinforce the cluster of pharmaceutical activity in South Merseyside (Speke and Halton) particularly following the recent announcement of the closure of the GlaxoSmithKline plant there.
Lead partners: NWDA and Liverpool University
(iii) The establishment of a Biomanufacturing and Process Development Research Institute and a life sciences showcase/attraction to: o demonstrate a close alignment of research to NBC, to Faraday programmes and to PfL’s role of developing people in this sector o service generic research requirements for industry o undertake and disseminate best practice studies o promote biomanufacturing, process development and related management/financial study programmes and specialist MBAs with the Liverpool and other business Schools o promote post graduate degrees in technical and management programmes (with Universities/PfL) o develop Chairs in this field with Liverpool and Manchester Universities, in a manner that would differentiate it from established centres like UCL, and Strathclyde o create an imaginative venue for public education awareness (at PfL or in a new venue) and access to demonstrate that what his happening in this special place is very important for the health and wealth of the nation/world (with linkages to other North West venues such as the Catalyst Museum, and the Manchester Science Museum).
Lead Partners: Liverpool University, NWDA and PfL
15 University of Liverpool (Medical, Dental, Vetinary Schools), School of Tropical Medicine, MerseyBIO Incubator, Roy Castle Centre, Clinical Trials Centre, LJMU, Royal Liverpool Hospital 18 (iv) Incubator’ for orphan drugs, third world medicines and natural products o Orphan drugs are drugs that have a very small market size (often these are rare genetic diseases which can devastate the patient) and, therefore, are not commercially viable to develop and manufacture without special incentives such as exclusive marketing rights, tax incentives, grants, and fast tracking regulatory processes. o Third world medicines, while they have a major potential market, must be low cost and, again, commercial viability is an issue for development and production. New UK tax incentives are being proposed for research and development in vaccine development for third world countries. The combination of the School of Tropical Medicine, the burgeoning biotechnology community and the NBC, has raised the opportunity to consider this focus for development and production. It should be noted that Eli Lilly at Speke already produces a last resort antibiotic for TB (mainly third world) at cost for the World Health Organisation. o Natural local products include traditional Chinese medicines and herbal medicines. Much interest has developed in these ‘alternative’ medicines and also in the regulation and testing of them. Liverpool and Manchester both have large Chinese communities with practitioners and there is also potential for providing a clinical testing ground for such remedies that will be acceptable to both MCA and FDA. While any production would be centered at Speke, clinical trials must be carried out adjacent to the patient base, for example at the Liverpool Clinical Trials facility. Linkages with Hong Kong, as a commercial gateway to China could be encouraged.
Lead partners: MerseyBIO, Liverpool University, NWDA and Liverpool Hospital Trusts
(v) A biomanufacturing business park Speke will become a key location for investment in biomanufacturing and pharmaceuticals. Estuary Business Park has already hosted investment in this cluster (Powder Systems). Other ‘branded’ landholdings in Speke could be promoted to attract investment.
Lead partner: Speke Garston Development Company
Given these developments, few other competing locations globally will be able to offer the equivalent total package for biomanufacturing than Speke.
19 4 Merseyside’s “breakthrough” priorities
4.1 Introduction Merseyside has had the benefit of having undertaken an enormous amount of strategic planning in the last couple of years particularly for its European Structural Funds Programmes on which it can now draw to achieve focus in determining its priorities and actions. The following projects have been evaluated by TMP as being of regional significance in their own right. The tests applied to them to determine this status includes: o their potential contribution to the targets set by the NWDA in the Regional Strategy (the so called Tier 2 outcome targets) particularly GDP and employment; o the organisational attributes that are consistent with the delivering positive change, such as the involvement of competent management and executive delivery resources backed by coherent, widely accepted plans; o a high degree of acceptance of their importance by all partners and communities; o the reversal of the sub-region’s negative image; o a judgement that their successful delivery will make the sub-region a focus of investment by the private sector rather than a focus for public sector support.
4.2 The SSDAs/EDZ and Daresbury As described in section 2.3 (vi) above, the partners see the SSDAs, the Halton EDZ in Widnes and Daresbury as a collective set of areas of economic focus which have a substantial role to play in the delivery of a quantum economic uplift of economic activity for the North West region and for Merseyside. They have all developed coherent integrated plans, and the amount of resource to be focussed on them is substantial. The planned expenditures to realise the economic development prize that these areas offer is some £500m in the period to 2005, and is expected to generate in the order of 20,000 new jobs.
The following summaries briefly portray the scale of opportunity that these areas present.
Atlantic Gateway stretches from the northern boundary of Liverpool City Centre to Seaforth and from Seaforth to Switch Island M57/M58 junction. At the heart of this area lies the core operation of the newly successful Port of Liverpool – a major gateway for Merseyside, the North West region and continental Europe to Ireland and the rest of the World. Key projects in the Atlantic Gateway programme are designed to maximise the potential of indigenous and port related industry; move towards resolving the major conflicts between traffic and environmental conditions for residents, build a sustainable office quarter and Town Centre in Bootle, and achieve an exciting leisure/tourism redevelopment of the Stanley Dock.
The Huyton – Prescot SSDA brings together a number of existing and potential key sites all of which are well positioned for access to the M57 and M62 motorways. The SSDA programme includes major office and technology park developments (Roscoes Wood East and Cronton Colliery) immediately adjacent to the M57/62 junction. These are complemented by grants and business support schemes, and by substantial interventions to improve accessibility.
The focus of the Eastern Approaches is the Edge Lane Corridor, which is the most important gateway to Liverpool City Centre - the greatest generator of jobs and economic activity for Merseyside. At the core of the SSDA is the successful Wavertree Technology 20 Park. The SSDA programme aims to create a first class gateway, grow the high technology business and indigenous business potential and link the opportunities created to pathways residents. Key projects include major improvements to Edge Lane, an extension to the Wavertree Technology Park, and support for business clustering, especially around ICT and Knowledge based activities.
Gilmoss Kirkby lies 10 to 15 km from Liverpool City Centre and is perhaps the largest concentration of industrial activity on Merseyside. It is focused on Knowsley Industrial Park and Knowsley Business Park and Aintree Industrial Estate in Liverpool. These areas are connected by a corridor of development opportunities along the A580. A very large proportion of the SSDA programme is designed to unlock the development potential of various sites – such as Gilmoss, Walton Farm, Acornfield Rd South, and to supporting transport and environmental improvements.
Speke Halewood is an existing edge of city manufacturing complex with two important economic clusters - the pharmaceutical and the automotive industries, a rapidly expanding Liverpool John Lennon Airport and good motorway access. Core projects for the Speke Halewood SSDA are developing sites with strategic employment potential such as Estuary Commerce Park Phase 2; business support including enhancing the existing Business Spoke; Jobs Education Training (JET) services to be established/enhanced; and improving public transport particularly sustainable modes of transport for employers and employees.
St Helens SSDA is strategically placed, east of Liverpool, with good access to the motorway network. The area includes the town centre and is closely based on the Southern Corridor - the area which includes most of the development sites with investment and employment potential of regional significance. The SSDA programme has over half of its resources dedicated to investment in major sites and transport improvements such as Lea Green Farm, Technology Campus final phase and Central Station upgrading. Significantly there are also major plans for investing in cultural and tourism infrastructure such as a flagship project to develop Sherdley Park as a recreational, training and events arena of major commercial potential.
Wirral Waterfront SSDA lies at the heart of the traditional and modern employment zones in Wirral – stretching from New Brighton, along the whole of the Mersey waterfront, incorporating the potential of docklands and Birkenhead Town Centre, through the Cammell Laird complex to the Wirral International Business Park. The SSDA programme includes £54m further investment in the Business Park, one of the 11 strategic employment sites in the NW. After major investment in sites and premises, the next largest element of the programme is in tourism, with a flagship project being the International Space Exploration and Exhibition Centre.
Widnes Waterfront EDZ is a regionally significant gateway/bridgehead linking the Southern Crescent and the Metropolitan axis Merseybelt. The vision is to create a new waterfront for Widnes - a high quality working environment for business, a link to the town centre, the development of the historic/conservation heritage, and to provide integrated transport to link opportunities with communities in need. The core programme will reclaim and develop existing sites with services to new units and office space, develop tourism attractions and make major environmental improvements.
The Daresbury “product” is vital to the future economic prosperity of the North-West region and Merseyside. There are three sites which collectively represent a massive existing investment in scientific research and high technology, and great potential alongside the development of production capability at Speke (see section 3.3 above) for leading the region into the further development of knowledge based industries. The three sites are: 21 1) the existing Daresbury Laboratory in which the Government has agreed a substantial investment in the CASIM project (Centre for Accelerator Science, Imaging and Medicine) – a partnership between Daresbury, North West Universities and the Health sector, which will ensure Daresbury provides a next generation research capability.
2) immediately adjacent to the laboratory will be the Daresbury Science Park, currently a 13 acre greenfield site, acquired by NWDA, which will exclusively provide for incubator units for spin out businesses from the laboratory. The potential is for 72,000 sq.m of premises and 750 jobs (see also section 5.3 below).
3) Daresbury Park is one of NWDA’s designated strategic sites immediately adjacent to junction 11 of the M56 motorway. This private sector development of a high quality office park is already well underway. Three buildings are already built and occupied and a further two are under construction, totalling over 80,000 sq.m.
Lead partners: the SSDA and EDZ Boards, Halton Borough Council and the DeVere Group/ Maplegrove Developments (Daresbury).
4.3 Liverpool City Centre and Liverpool Vision Liverpool City Centre’s importance is recognised in the Regional Economic Strategy and is identified in the (draft) Regional Planning Guidance as a regeneration priority area. Liverpool Vision has been created as one of the country’s first three pilot Urban Regeneration Companies to drive the development of the city centre as a key employment, cultural, tourism, retail and residential opportunity for the whole sub-region. Interestingly the strategic overview and direction for Liverpool Vision is derived from its Board, a mix of senior private and public sector leaders, and from LPG, the Local Strategic Partnership for Liverpool (see section 2.6 above). It has been designated as an SSDA for the purposes of the Objective 1 Programme. Its Integrated Development Plan created to secure funding from the Objective 1 Programme, gives a good insight to the multi dimensional holistic action proposed to create a truly European city. A summary of its strategic objectives and an indication of some of its projects will serve to underline its regional and sub-regional importance. Strategic objective 1 – to attract and develop City Centre firms and get the business friendly context right. Included is this element is the development of Liverpool Business Centre and the creation of University focussed incubation space on the metropolitan cathedral site. Strategic objective 2 – to develop and support key market sectors within the City Centre economy. This includes the creation of an arts village and specific support measures for identified growth sectors. Strategic objective 3 – to create quality accommodation for City Centre firms, residents, shoppers and visitors. Major office developments are planned along with a major new retail area in the Paradise Street area and a Hard Days Night Beatles Hotel. Strategic objective 4 – to build upon the City Centre’s rich historic character and potential by developing world-class tourism and cultural resources. This includes a range of investment projects on the Liverpool Waterfront, including development of King’s Dock and related infrastructure changes. It also embraces the St. George’s Hall Cultural Quarter and support for Liverpool’s bid to become the European Capital of Culture in 2008 (see section 4.4 below). Strategic objective 5 – to improve access to, from and within the city centre; this embraces a new transport interchange.
22 Strategic objective 6 – to ensure that Pathways areas and people benefit from City Centre employment opportunities, helping them gain City Centre jobs and progress through the labour market. This strand of activities includes development of employment link mechanisms, a skills strategy and the development of the City Centre social economy. Overall the programme has an estimated total expenditure of over £1bn. It has funding already secured from a dedicated measure in the Objective 1 Programme (Measure 21) and from Single Regeneration Budget Round 6. An economic model supporting its Integrated Development Plan shows that it has the potential to create new jobs in the order of 8,200 and to increase the GVA associated with City Centre firms by some £220m in the period of the Objective 1 programme.
Lead partners: Liverpool Vision and Liverpool City Council
4.4 Developing the European Capital of Culture
In a report from an independent World Commission on Culture and Development 16 it was noted that “Development divorced from its human or cultural context is growth without a soul. Economic development in its full flowering is part of a people’s culture.” One of the central arguments advanced by the Commission is that “development embraces not only access to goods and services, but also the opportunity to choose a full, satisfying, valuable and valued way of living together, thus encouraging the flourishing of human existence in all its forms and as a whole.” The government has also acknowledged the importance of culture as a key element in economic success: "This Government knows that culture and creativity matter. They matter because they can enrich all our lives, and everyone deserves the opportunity to develop their own creative talents and to benefit from those of others. They matter because creative talent will be crucial to our individual and national economic success in the economy of the future" 17
The city region needs to secure economic development, but it also needs to be a place that is a pleasure to live in. Cities play a crucial role in providing the quality of life that gives the city region its sense of place and enjoyment. Therefore in the process of investing in the nuts and bolts of economic development around the sub-region it is important to keep in mind the need for cultural investment.
The bid for Liverpool to become European Capital of Culture for 2008 is now well established in terms of the framework, preparation of key components, delivery programme and regional partnerships. The actions set out below are designed to continue the efforts to prepare Liverpool’s ‘offer’ and to communicate the importance of the bid to Merseyside and improve partners’ understanding of the sub-regional benefits that will accrue from it.
Partners include all the Merseyside local authorities who receive regular information on the bid process and progress at various levels. Presentations have been made by Sir Bob Scott, Chief Executive of the Liverpool Culture Company, to the Merseyside Co- ordinating Committee which is attended by Leaders and Chief Executives. Similar presentations have been made to the Merseyside Chief Executives Group. The Merseyside Cultural Forum, which consists of Executive Members for Culture and Leisure and Chief Leisure and Culture Officers from each of the local authorities receives, and will
16 “Our Creative Diversity” Report to Unesco and the United Nations from the World Commission on Culture and Development: November 1995. 17 Tony Blair - Culture and Creativity Green Paper March 2001
23 continue to receive, a progress report at each meeting. Moreover, each local authority’s arts officers are invited to Capital of Culture Stakeholder meetings in order that they contribute to the preparation of the Bid and identify the opportunities for each of the Merseyside Boroughs which can arise from the Bid process.
As part of the European funding bid, it was demonstrated that the preparation of the Bid would not only have beneficial effects in terms of the tourism and cultural sectors in Liverpool but the Merseyside region as a whole. The development of key strands in the cultural sector and festivals and events gives the opportunity for Liverpool and Merseyside to develop its promotion as a cultural destination and attract additional tourists.
Key projects will include a rolling programme of interventions to raise the local profile of Liverpool including public realm improvements, a new movement strategy and new cultural buildings and refurbishments. Some are underway and some are still at the planning stage. The Liverpool Museum, the Walker Art Gallery, the FACT Centre, the Blackie, the Empire Theatre are currently undergoing major building works. Plans are advanced for St George’s Hall, the Bluecoat Centre, The 4th Grace (to include a new museum, a new theatre complex and a new Beatles Centre), a new Philharmonic Centre, a new Central Library and now the new stadium arena on the Kings Dock.
The benefits of winning the title are quite tangible. It will do so much more than simply throwing the spotlight on all of the city's cultural and artistic achievements. The world already knows about the Beatles and the City’s famous football teams. The title will enable the City to tell a more complete story, encompassing everything from the Tate in Liverpool to the many events of the Liverpool festivals. Specific benefits will also include local and regional regeneration, increased tourism, greater business activity and an overall increase in cultural activities. Just as importantly, the title will remind everyone in the region - and indeed the country - that Liverpool is very much a city to be proud of. Far from being just another title, it is an ideal opportunity to celebrate the cultural accomplishments of Europe's great cities and to involve the community throughout the sub-region in that celebration. It is also an opportunity for further development. Glasgow experienced substantial economic and social benefits during its period as the City of Culture, both strengthening and promoting its own impressive regeneration.
Competition is now underway and the Government will publish a shortlist of candidates in the last quarter of 2002, with the final UK nomination decided in spring of 2003. At that point, the winning city will be able to start using the title European Capital of Culture 2008 and to start preparing in earnest for its year of tenure. Before that point, it needs support from all partners to ensure that no opportunity is missed to put forward a winning bid.
Lead partners: Liverpool City Council and Liverpool Culture Company
24 5 Sub-regional priorities – wealth creation through developing business
5.1 Introduction A key focus of the Regional Strategy and of Merseyside 2010 is to increase the wealth creation potential of the region by ‘attracting new investment and by harnessing the skills and creativity of all the region’s people and indigenous businesses’. This sub-region has to focus heavily on these goals in view of its recent history of weak GDP and its over dependence on “branches” of larger national or international corporates. The partners have tried to ensure that the following priorities will make a real difference, building on elements of the sub regional economy that are differentiated, where growth and strong markets are evident and where the public sector can add value. The related priorities and actions in relation to the development of people and communities (section 6) and of the environment and infrastructure for growth (section 7) have been established in large part by taking account of the need to underpin the wealth creation priorities set out below. The message from any economic analysis of Merseyside is clear – focus has to be given to the generation of demand, and activities in the supply side of the economy18 need to support demand side initiatives.
5.2 Sector / cluster specific priority projects (i) MerseyPort
Strategic development of the port and maritime industries cluster19 is considered by the partners to be a cluster of activity that uniquely can be led by the Merseyside sub-region on behalf of the region as a whole. There is a need for a body to champion the cluster, secure strategic investment in port related logistics, assembly and manufacturing and ensure that the investment is made in the key skills associated with the cluster’s development – in respect of people already in the cluster and people who are unemployed who could be absorbed by the cluster’s expected growth. The cluster embraces all organisations that relate to the port as a strategic location. 20 There will also be a role for the public sector to continue to support the fragile marine engineering activities on the Wirral until some stability in the post receivership trading performance is established. A key role for public sector support will remain the investment in the core specialist engineering skills, particularly through the Lairdside apprenticeship programmes. The project to be given priority is to build a private-public partnership to shift port- related industry to higher value added logistics, manufacturing through inward investment driven off Irish and American growth markets, and by the expansion of firms resident in the cluster. Project components include sector mapping,
18 Generally this is accepted as interventions to improve sites and premises, the operation of the labour market and the level of individuals’ skills, the availability of venture and other capital and the improvement in technological infrastructure. 19 The port and maritime industries cluster embraces key assets at the heart of Merseyside’s maritime sector: the port on both sides of the river and including Garston Docks, marine engineering and its key training infrastructure including the Laird Foundation along with firms which support these activities in or near the port operational areas, the marine/logistics specialities in the Liverpool Universities and the port and maritime professional services firms in Liverpool.
20Key organisations include Mersey Docks and Harbour Co., Associated British Ports, Cammell Laird, Peel Holdings, ACL, Drake Port Services and Cargill Inc. 25 recruitment of a sector champion and the preparation of a business plan for a business-led maritime cluster. By 2005, it is expected that MerseyPort will be self- sustaining through the establishment of a centre of excellence in port and logistics training, a trade portal and consultancy services in the cluster. Lead partner – The MerseyPort Development Team and Atlantic Gateway SSDA Board
(ii) Biotechnology
MerseyBIO has been established to harness the innovation potential on Merseyside to create high growth start-ups and a thriving Bio-Technology industry in the sub-region. The new Bio-Science Centre, housing a business Incubator, will be established by August 2002. It is important that this venture is offered revenue support to enable it to achieve its objective, particularly given its role as a “feeder” for the proposed new national Biopharmaceutical Manufacturing Centre in Speke (see Section 3.3. above).
Lead partner: MerseyBIO
(iii) Digital content, multi-media and Grid development
The sub-region has an important emerging cluster of activity in digital content and related creative and media activities related sectors. It has a focus in the Rope Walks and University area of Liverpool. There are two university business activities which have specialised in this market – Connect and The International Centre for Digital Content (ICDC) both of which have helped spin out significant high growth businesses. The city has creatively combined skills in art, multimedia and computer science in a manner that has been noted nationally. It is considered important therefore that there is a development created near to the Universities to promote the further development of this market and to attract and promote the development of new firms alongside it.
A digital content led science park has been put forward as a priority project. This needs concerted effort to assemble a suitable site or a series of adjacent buildings in close proximity. JMU will establish a centre of excellence in digital content research and production which embrace ICDC as an ‘attractor’. The core activities will be course provision, research and production, and business and community partnerships. The centre will work with individuals and businesses in the region to foster entrepreneurial activities and position Merseyside at the heart of the digital content industry. ICDC will focus on attracting students and businesses, and creating and supporting high growth business start-ups through offering innovative courses and developing research that will be at the cutting edge of digital content production and delivery. With the advent of new high-speed research networks, the Grid links together people, computers, databases, instruments and other resources in ways that were previously not possible. The Grid is already contributing to a variety of research projects such as very large scale simulations and computer enhanced instruments. Liverpool University has leading edge expertise in Grid Development (the next generation of information access). It is keen to become an e-commerce node for the Grid and to allow Merseyside to be at the forefront of Grid development and to support the next generation of ICT business to the sub-region on the back of Grid developments. This will require both capital and revenue support from partners but in this fast moving technology it is important to take a position and build on it rapidly – Liverpool University’s expertise offers this opportunity to the sub-region.
26 There is also an opportunity to grow the digital film and television industry with state of the art editing and post production facilities along with the related tourism potential (see (v) below). Discussions are underway between further education colleges and the universities to launch a bid (the first stage of which is due by 19 October 2001) to create a New Technology Institute (NTI) in Merseyside. These are aimed at increasing the supply of people with technician and higher level skills in ICT and other advanced technologies. They can also make advice to SMEs on the adoption of new technology and innovative business practices more available.
Lead partners: Liverpool University, Liverpool John Moores University, Further Education Colleges and North West Vision (iv) The construction opportunity
In the next few years the sub-region will experience what can only be described as a boom in construction and related maintenance work. The current sector reports show modest but accelerating growth for Merseyside. The Construction Industry Training Board (CITB) however is forecasting that the number employed in the industry will rise by 7,000 by 2004 – given the capital programme ahead in the sub- region it is anticipated that it could account for as many as 4,000 of this forecast.
There are several reasons for this as the examples below demonstrate most of which relate to investment by the public sector:
o the Health Authority has major capital expenditure plans ahead including a joint scheme between the Cardiothoracic Centre and the Royal Liverpool Hospital to double the capacity for cardiovascular surgery at a cost in the order of £50m. In addition in 2002/03 an investment in a new out-patient service unit and a standalone elective surgical facility at Fazakerley is expected to add another £20m to this;
o there is a major construction programme ahead in relation to the SSDAs, to the EDZ and Daresbury and in respect of Liverpool Vision’s implementation plan. Conservatively this is expected be in excess of £1bn over the Objective 1and 2 programmes including the private sector funded elements;
o recent announcements of the local authority housing stock transfer programme for the next two years includes over 46,000 properties put forward for transfer to a mixture of new and existing social landlords. The authorities involved are Liverpool, Knowsley and St. Helens. The stock transfer process levers in significant private sector lending into the refurbishment and redevelopment of the units over a relatively short timescale; the expenditures are expected to exceed £100m;
o the Housing Corporation programme on new social housing development in the sub-region is estimated at £120m in the period to 2005;
o the Merseyside Local Transport Plan proposes some £380m investment in the local transport network in Merseyside;
o the Government has pledged more expenditure on schools; o there are 16 capital projects emerging in the FE sector with a total budget of some £65m in respect of new 16-19 provision (particularly in response to needs identified through Area inspections undertaken by OFSTED), Centres of Vocational Excellence in line with the Government’s national initiative and
27 further local colleges and/or outreach centres to increase participation in learning among adults; and
o the University of Liverpool has embarked on an £80m capital programme.
Moreover, there is “next door” pressure on the sector from the investment in the major facilities being created for the Commonwealth Games and local authority housing is due to be transferred in Greater Manchester in the near future.
Even before this massive programme, the Federation of Master Builders’ most recent survey notes 50% of member firms in the North West reporting difficulty in recruiting direct employees and 48% in obtaining sub-contractor skills.
The message from this analysis is clear – the sub-region will be a massive importer of construction labour unless it can train and secure recruitment into the sector of large numbers to underpin this scale of activity. This will need careful programming as further explained in section 6.3 below. Lead partners: Local authorities/RSLs/CITB/JobcentrePlus/GMLSC
(v) Tourism
A number of tourism priorities will be included in the Mersey Waterfront Regional Park project and will be developed under this brand (see Section 3.2 and footnotes 3 and 4). However, there are a number of priorities across Merseyside in addition, such as: o overseas marketing; o central Liverpool ‘backpacker’ accommodation; o Liverpool’s Cultural Quarter expansion: an art house cinema, quality restaurants, and a ‘signature’ hotel; o Merseyside film production studios; o a Merseyside conference centre; o the development of web based packages and ‘virtual’ tours of the sub- region’s key attractions; o building the visitor packages associated with Merseyside’s festivals, sporting and cultural events; and o customer care training and more customer care training.
Lead partner: TMP and North West Vision
(vi) Other sectors and clusters
Merseyside has other growing sectors and clusters which will yield opportunities for joint initiatives with public sector partners in the period of this Plan. One of these, which is in the second phase of NWDA’s review of sectors is Environmental Technologies where there has been a growing recognition of the need to improve the sustainability of the sub-regional economy by actively adopting technologically and environmentally innovative product solutions.
28 5.3 Starting and incubating new businesses A number of partners stress the importance of growing the sub-region’s economic base by helping the creation of new businesses and the creation of entrepreneurs. The priorities for partner action include:
§ the fostering of more and better entrepreneurs – Higher Education business and entrepreneurship courses, and the new School of Management at Liverpool University will play vital roles in creating more and better entrepreneurs. GME has training of entrepreneurs as an integral part of their programme, with support from GMLSC. Also there is much interest in developing entrepreneurs in social enterprises (see section 6.7).
Lead partners: Universities ,GME and GMLSC
§ the development of incubation space – the development of some 35,000 sq. metres of incubation space before 2005 is envisaged ranging from high quality accommodation for very high growth start ups close to the Universities, to space in the SSDAs/EDZ and Daresbury (see Section 4.2 above). The University linked incubation units need to reflect their expectations of the technology and knowledge with most commercial potential. These are biotechnology (an incubator for which is already being developed), technology based engineering/manufacturing and digital content.
NWDA chairs a Merseyside Incubation group which brings together the key players in relation to the development of incubation on Merseyside. The group is linking closely into the NWDA North West study into incubation and once those findings are known, the group will begin to develop its specific programme. Already, the Universities envisage that The Hothouse method of incubating business activity as the appropriate model to lead the planned new facilities – as a hub of incubation activity across Merseyside, particularly geared to supporting knowledge based businesses in growth sectors.
Lead partners: Universities and NWDA
§ the provision of start up business support – there will need to be intensive support in the incubators and generic, less intensive, support to businesses with growth potential. To avoid duplication, the HE incubators will make use of support services provided through a re-focused HotHouse service. GME will devote some of its resources to assisting new growth firms in incubators;
Lead partners: Universities and GME
§ seedcorn – the Universities jointly intend to create a Seed Capital Fund to help turn good research into business opportunities. A £3m fund will support potential commercial opportunities arising from the collaboration of the Universities, the Merseyside NHS Trusts, and the Roy Castle Lung Centre. A bid has been submitted to the Higher Education Innovation Fund to provide partial funding, but some revenue match funding is required. There is an opportunity to significantly scale up the level of seed corn funding if match for Objective 1 could be found. The Objective 1, Priority 1 team wishes to scale this up to significantly in the plan period subject to available match funding and link it with the Merseyside Special Investment Fund (MSIF).
Lead partners: Universities
29 § venture capital – a key success of the last programme of European Structural Funds was the development of MSIF as Merseyside’s own specialist source of funds. It is set to further underpin the economic renewal and will secure new European and private capital to achieve this. It is increasingly working to support firms in the sectors and clusters that other key agencies are supporting and building its own expertise in these sectors.
Lead partner: MSIF § social enterprise – there are many opportunities to create an effective ladder to employment through social enterprise, particularly where public sector service delivery meets with market need (see section 6.7 below).
5.4 Developing SMEs with targeted business support Targeted business support
The sub-region needs a dramatic level of growth of its SMEs to bridge its economic gap. The European funded effort will be led by GME to assist some 4800 businesses in growth sectors through a process of change. GME is also working with Halton partners to develop business support under the Objective 2 Programme. It aims to produce 'best practice' frameworks covering all business disciplines, from general management to HR, ICT, and operations. Business consultants will be engaged to diagnose business needs and develop an action plan. The action plan will then be implemented with advice and training to deploy best practice.
The key priority for the partnership to debate with the NWDA is the scale of the programme that would be enabled if funds could be made available to properly match the ERDF and ESF in Priority 1 of Objective 1. The aspiration in the Objective 1 plans to increase the proposed scale of seedcorn funding, as well as create funds to assist SMEs to invest in new products and to develop new markets is particularly dependent on the match funding support.
Lead partners: GME, GONW, Priority 1 Manager and NWDA
University specialist support
The Universities have developed a number of existing activities and proposals geared towards SME development including: § Reach Out, Business Services – an umbrella service linking businesses to academic research activities; § The Agility Centre/The Centre for Competitive Manufacturing – which will work with SMEs on methods to ensure business responsiveness (simulation, modelling, mass customisation) and linking this ‘agility’ with e-commerce, supply chain management and lean manufacturing § Product Innovation Development Centre (PIDC) – offering product design, modelling and simulation and rapid prototyping technologies. § Knowledge Centre – will co-ordinate activities designed to add value to the economy, providing access and training for skill development, support for SMEs through knowledge transfer, workforce development and inward investment information. It will initially bring together the flagship Business Bridge initiative – a partnership between the three HEIs on Merseyside – with sectoral business support. Students and
30 graduates will be able to access routes to improve their employability through project work, entrepreneur support mechanisms and social economy volunteer programmes.
Lead partners: Liverpool University, Liverpool John Moores university and Liverpool Hope University
Further Education (FE) Institution specialist support FE Colleges are establishing specialist centres for supporting key focus sectors in the economy including construction and engineering (Liverpool Community College at Pumpfields), ICT (St Helens) and tourism, leisure and hospitality (Liverpool Community College at Merchant Square). Colleges are also engaged in developing entrepreneurs. They are giving some young people the opportunity to experiment with their own ideas and learn through doing. With additional resources, they propose that this could be spread wider.
Lead partners: FE Colleges
5.5 Exporting Made on Merseyside It is vital to encourage exporting to those companies that are ready for it to sustain the sales growth of businesses, which leads to wealth creation and new jobs.
The highly successful Made on Merseyside scheme must be continued to support local companies. As well as reducing the risk and cost of exporting it allows companies to visit overseas markets when it is convenient for them.
Lead partners: Chambers of Commerce in Merseyside
5.6 ICT and access to broadband
According to a report by Datamonitor, a third of all Internet access will be broadband within four years. The UK will be Europe's second largest consumer broadband market after Germany by this time, and half of all broadband modems will be installed within TV set-top boxes. Broadband can be delivered through a range of media - cable modems, digital subscriber lines (DSL) wireless transmission and satellite dishes, along with fibre-optic cables. Merseyside has landfall sites for major transatlantic telecom networks, such as 360o networks node at Ainsdale, which provides gigabit capacity linking North America and the Far East to metropolitan rings in the UK and Europe. Several service providers in the UK including Telewest and BT currently offer high-speed Internet access dedicated to businesses. The two most notable local offerings are ADSL (BT) and Blue Yonder (Telewest). Norweb/Your Communications are developing local wireless technology and have successfully won four regional licences including the Northwest, West Midlands, North and Yorkshire. This product is targeted at SME and small corporate businesses. BT's ADSL (part of its DSL product range) rollout aims to reach 70% coverage by the end of 2001. Other telcos' rollout of ADSL depends on their accessing BT's exchanges as part of the unbundling of the local loop. Broadband connections are also offered by the cable companies, such as ntl and Telewest's Blue Yonder service. They may provide a cable modem to make the connection, or offer ADSL over the copper wires they laid with their Hybrid Fibre Coax (HFC) networks. TV broadband connections can be made using satellite and using fixed wireless, but services using these options are not yet offered widely in the UK.
31 Service availability is, however, quite patchy, with 'small islands' of haves'' surrounded by large areas of 'have-nots'. This is due to UK-specific DSL technical implementations and, above all, exacerbated by the delays in the 'Local Loop Unbundling' (LLU) process. Regardless of platform, the availability of new services and the deployment or upgrade of broadband-related infrastructure is directly dependent on the development priorities established by the different carriers. If this prioritising exercise is to be influenced in favour of Merseyside, it will have to find mechanisms to achieve that goal. In other words, it must develop a suitable business case, which in turn will generate a commercially attractive proposition for whichever carrier to make their services available to the wider community. Commercial opportunities exist for both broadband deployment across the “have-not” areas and for the co-location and web hosting at strategic nodes in the underlying carrier networks. On this basis, it is a clearly a priority that businesses cases are prepared and negotiations are held by the ICT Sector Champion with broadband providers in order to maximise provision and choice in Merseyside but particularly within the SSDAs and the EDZ.
Also, the GME Best Practice frameworks are aimed at changing the culture and practice of SMEs. All of the frameworks have ICT components and there is one dedicated to ICT aimed at delivering e:businesses. The sector champion also wishes to establish e:communities within the key growth sectors commencing with biotechnology. There is also seen to be a way of using ICT to improve the quality of life and work patterns in Merseyside.
Lead partners: ICT Sector Champion/GME/SSDAs/EDZ/Liverpool Chamber of Commerce
5.7 Sector Champions and Sector Development Agencies Objective 1, Priority 1 plans include the provision of 11 sector champions for selected, strategically important clusters. In addition Sector Development Agencies will be established as intermediaries to provide support to SMEs within identified clusters. These are important pieces of programme ‘infrastructure’ that need to be fully consistent with NWDA equivalent champions to ensure that the aims of both the RES and SPD are achieved. The funding package for these roles has yet to be assembled.
Lead partner: NWDA Business Development Division and Objective 1/2
5.8 Improving the management of the investment process Local Authorities have an improving competence in handling investments. TMP needs to position itself so that duplication of effort is avoided not only to reduce costs but also to present a coherent and professional location to potential external investors. TMP should have a remit for leading on sub-regional economic strategy development, market intelligence and external marketing. Much of its resource should help to give direction to the city region strategically, be channelled into building profile and should generate quality leads.
For reasons of critical mass and economies of scale it makes sense for partners to use TMP in accessing investment opportunities or leads - for example in a specific cluster such as biotechnology, or a distant market such as the Far East which it is impractical for an individual authority to pursue. In turn, TMP will make full use of NWDA’s expertise.
Where an enquiry is received through TMP for Merseyside as a location, TMP will be able to call on the support of all six local authorities. Under a new protocol that has been developed as part of this Action Plan, TMP will have a ‘virtual’ team to assist with the process of securing investment - nominated local authority representatives joined with TMP will be able to significantly increase TMP’s capacity and local intelligence on site 32 and skills availability. The process will rely on the ‘virtual’ team being in constant contact electronically.
TMP will develop a process which allows the client to be fully supported by TMP into the later stages of deal ‘closing’ with the selected local authority partner.
33 6 Sub-regional priorities – developing people and communities
6.1 Introduction
The key education and training agencies
The development of people is a key priority for the economic progression of the sub region.
This is taken to encompass all types of learning, developing a broad-based set of interventions across the spectrum of public sector agencies, which engage in this dimension. At regional level, the NWDA is charged with the development and implementation of a wider NW Skills Strategy, which will set a wider NW framework for Merseyside. At a sub regional level, these include local education authorities (LEAs), the Greater Merseyside Learning and Skills Council (GMLSC), further education colleges, higher education, the Employment Service (which is in the process of creating a new delivery organisation – Job Centre Plus) and Connexions. The activities of partners should provide a seamless web of public sector intervention from school age to early training and life learning for all members of our society to ensure that people are able to contribute to the sub regional economy in all its forms, either as employees or self employed.
Early interventions are required by the LEAs to overcome disaffection, increase educational attainment and development a sense of engagement by young people with the world of work. The GMLSC sets the broad strategic framework for post 16 learning, which will be delivered through LEAs (adult and community education), the further education colleges and private sector contractors. These interventions will cover broad- based skills training and lifelong learning opportunities.
Higher education institutions are important in delivering higher level skills to both young people at the end of their formal schooling and to returners and people wanting to upgrade their skills while working. The connection between the individual and the formal labour market can be assisted by the work of Connexions (for young people) and by the JobCentrePlus to ensure that people are linked with existing, new and emerging job opportunities at all stages. A number of locally based initiatives sit alongside JobCentre Plus to link directly between local people and local opportunities, especially within the SSDAs/EDZ and Daresbury.
34 Figure 5: The key players in education and training
NWDA (NW Skills Strategy)
Greater Merseyside Learning and Skills Council Further Education LEAs - Young people - educational attainment - Skills/SMEs, - disaffection enterprises - engagement with world - adult learners of work - lifelong learning - adult/community Private sector education employers
Developing people Locally based agencies Higher Education Developing people - One Stop Shops - young people - JET Centres - returners - Opportunity shops - lifelong learning - research & technology transfer Private sector employers
Trade Unions -Employment NTOs Connexions Service/Job Lifelong Learning - careers advice Partnerships CentresPlus Voluntary sector Employment Zone -New Deal
A drive to competitiveness
The Greater Merseyside Learning and Skills Council (GMLSC) has only just commenced its corporate planning for 2002-2005. Despite the mismatch in timetables, it has offered TMP some of its early headline level strategic thinking. When combined with contributions from others involved in people and community development it has enabled a number of priorities to be set and actions planned. GMLSC has confirmed what we all know – that people are critical to the success of businesses. Increasingly however there has been a decoupling of skills from enterprise in policy terms at all levels. There is a danger that this reinforces skills and learning as a ‘people’ issue and interventions are targeted just on people and on not on businesses. A key priority is therefore to develop a strategy which recognises the crucial role of skills in the competitiveness of the Merseyside economy and of its constituent businesses and in the prospects of individual residents and communities in contributing to and sharing in the prosperity of the sub region.
Through the SSDAs, the EDZ and Daresbury, Merseyside is driving a concerted effort to provide a 21st century business environment, supported by effective and sophisticated business support packages to support economic competitiveness and growth. The third component of this offer to existing businesses and prospective investors on Merseyside needs to be a highly skilled, productive and flexible workforce. In turn, this will also ensure the increase in residents’ economic activity and incomes that is needed to boost internal economic demand. In this way, Merseyside will be making the most of its assets and opportunities, ensuring that supply side interventions result in economic outcomes for both businesses and its communities, in the process eliminating the concentrations of deprivation which act as a brake on sustainable economic growth. 35 This direction is confirmed by the Objective 1 contribution to this Action Plan which suggests that developing people, whether employed or unemployed, will be more closely aligned to the demand side of the economy either through the development of customised training for SMEs or through employment related training for individuals. The DfES report ‘Skills, Local Areas and Unemployment’ (July 2001) also identifies Merseyside as an area with a higher than expected rate of job vacancies due to skills shortages, reinforcing the need for improved up-skilling aligned to the needs of specific industrial sectors and occupations where the skills gaps are evident. A diverse, well trained and motivated workforce gives competitive edge by providing access to new ideas, new markets, new ways of working and challenges companies to innovate in their working practises – this is what helps an economy to grow in a manner that retains good people.
Education, education, education Partners have also emphasised the importance of ensuring that the education system introduces as high a level of achievers into the economy as possible. The need to improve educational attainment has been a priority of LEAs for some time and their input into this strand of the Action Plan is seen as crucial.
A place for skills The challenge for Merseyside is therefore to transform itself into an area renowned for a skilled workforce which is adaptable to the fast changing needs of the economy. This will help to ensure the continuing and sustainable competitiveness of businesses as well as ensuring that individuals are equipped to retain employment and to up-date their skills for better mobility and progression through the labour market. This relationship between skills and incomes is therefore a key factor in the twin aims of increased competitiveness and the reduction of the social and economic disparities which currently act as one of the brakes on the Merseyside economy. The retention of skills and talent also needs to be a key focus – in terms of entrepreneurs, the self-employed and graduates. The economy does not contain the level of knowledge- based businesses necessary to create the economic strength for the future. Entrepreneur and graduate retention and development is a necessary element in building a more knowledge intensive economy. A particular focus to underpin this drive will be the widespread delivery of ICT foundation skills. The Objective 1 and 2 programmes aim to increase the accessibility of ICT to communities and ICDC is currently working with Government Office to recommend a means of achieving the spread of best practice in community access to ICT.
The key role to be played by the private sector
It is recognised that many companies invest in their workforce as a matter of course to ensure that they remain a competitive and dynamic business, provide career paths for employees and develop their staff. Public investment is increasingly planned to build on this private sector investment and seek to support companies by ensuring that new entrants to the workforce meet a level of competency and understanding which enables them to take advantage of the investment which will be undertaken by their employers.
The link with Neighbourhood Renewal Partners have also indicated concern to ensure that due focus is given to Merseyside’s most deprived communities which need more intensive help to enable them to play their part in the economy and to reap a more equal share of the sub-region’s prosperity. All six of the Merseyside local authority districts are part of the group of 88 areas in England tackling deprivation in the ‘worst 10% ‘ wards nationally through the New Commitment to Neighbourhood Renewal. The Objective 1 ‘Pathways’ programme and the Objective 2 36 CED area programme are early precursors of this approach. The experience of these initiatives reinforces the need for additional support intervention, to supplement mainstream programmes for education, skills and employment in order to improve literacy, numeracy and key skills and to provide increased support to enable communities in the most deprived areas to access existing and future job opportunities. There are already robust foundations for this type of additional support throughout Merseyside, mostly funded through SRB and Objective 1/2, taking the form of local labour market intermediaries, training and employability programmes on the ground and transitional employment measures. These now form part of the strategic and operational linkages between the SSDAs the EDZ and Daresbury, and the Pathways areas and other regeneration neighbourhoods. In order to maximise outcomes and to accelerate the rate at which economic and social conditions can be improved, better linkages need to be developed between demand side issues in the economic growth areas and training and employability programmes for the communities in the deprived areas. Housing Alongside employment as the route out of unemployment and poverty, the poor housing conditions which are a hallmark of many of the deprived areas must be tackled. There is a need to act and to convince government of the economic importance of intervention in declining housing markets – as a precondition of stable and attractive housing areas which will retain existing residents and indeed attract new population.
6.2 Supporting the economic “driver” priorities through improving educational attainment
(i) Developing alternative curriculum pathways for 14-19 year olds The Government Green Paper “Schools Building on Success” outlines proposals to develop new pathways for 14-19 years olds to enable young people to pursue a learning programme which reflects their own talents and aspirations. Merseyside LEAs are anxious to develop and pilot a range of these alternative pathways providing the opportunity for young people to mix academic and vocational GCSE’s and work based options. All programmes will be of high quality and lead towards a ‘graduation’ at age 19. Two major challenges will be to develop alternative pathways which have parity of esteem with the current traditional A and A/S levels route and which enable pupils to move freely between academic and vocational routes as their vocational aspirations develop.
Lead partners: LEAs with Sefton/Wirral in the lead
(ii) Tackling disaffection
All Merseyside LEAs have as a major priority developing a range of support services to meet the needs of pupils somewhere on the continuum relating to disaffection. This can span minor indiscipline through to young people who have severe behaviour problems who may be excluded and extremely difficult to secure support for and who also may be known to a number of agencies in relation to the severity of their behavioural difficulties.
Each LEA has a Behaviour Support Plan setting out the local approach to this group of pupils and all include certain key activities such as (a) behaviour support teams, (b) learning mentors, (c) in-school units, (d) motivational programmes (e) area learning support units, and (f) pupil referral units. Although funding from LEA
37 budgets, Excellence in Cities, Objective 1/2, SRB and NRF is considerable, funding has not yet been identified for disseminating good practice and research and piloting new approaches.
Lead partner: Liverpool LEA
(iii) The Learning Grid
Information and communication technology (ICT) is a major priority for all Merseyside LEAs. Many schools in Merseyside are already using ICT to create a step change in improving teaching and learning, to improve communication between teachers and parents, to assess and record pupil progress and set targets and to design, adapt and prepare teaching materials as well as to link with institutions across the globe and to put information at the finger tips of all pupils. All Merseyside LEAs wish to ensure that every school is making as effective use of ICT as the best schools are in this area of delivery. Each LEA needs to further develop its connectivity between and across schools and the LEA, its intranet, the software available and the hardware in each school as well as improving training for staff.
Lead partner: Knowsley LEA
(iv) Understanding the world of work
Across Merseyside a consortium of education/business liaison organisations (EBLOs) has been developed. This consortium aims to develop and enhance the understanding of all ages of pupils of the world of work and support their preparation for adult life. A range of activities is supported through these organisations including work experience, industry days, mock interviews, employer mentors, enterprise initiatives and compact arrangements.
It has been clearly demonstrated that activities of this nature improve motivation, enhance achievement, increase post-16 participation rates and reduce early drop- out rates from post-16 opportunities. Funding for the core programme is available but there is a need to ensure that the action is evenly distributed across Merseyside to achieve its aims in full.
Lead partner: Halton LEA
(v) Family and parental learning
Research has demonstrated that the greatest single indicator of pupil attainment is the attainment of their parents. A number of programmes have been developed, therefore, across Merseyside to help parents to help their children to learn. These programmes have a very direct effect on pupil attainment whilst also improving adult skills and attainment. A major priority within this area on Merseyside is that of attracting fathers into provision. Locally, women are frequently the main or sole earner in a family and fathers take responsibility for day-to-day parenting. A number of Merseyside LEAs have piloted particular projects to attract fathers to learn how to support their own children better. This is a funded action again with the exception of the need to ensure an even distribution around the sub-region.
Lead partner: St Helens LEA
38 6.3 Supporting the economic “driver” priorities by training for growth sectors As indicated in sections 2.3 and 5.2 above there are certain sectors, which are set to grow, and a number of these will create opportunities for the unemployed in particular. There are four which are highlighted here by way of examples but similar opportunities will be evident in other sectors. (i) Construction Section 5.2(iv) above sets out the challenge. There is already discussion underway between the largest Housing Associations and with local authorities involved in voluntary transfers, CITB, Job Centre Plus and others to create a ‘Transitional Employment Mechanism’ to ensure that local contractors secure a trained supply of labour to enable them to win and deliver the new contracts that will arise. Lead partners: Housing Associations and the ‘transfer’ LAs
(ii) Healthcare Information from the Merseyside and Cheshire Workforce Development Confederation shows significant growth in recruitment levels over the period to 2005, ranging from 25.1% growth in allied health professionals to 9.4% in nursing; this is consistent with government spending plans already announced. The NHS Plan acknowledges the need to invest in the skills and potential of staff who do not have a professional qualification. Over the next three years all such staff will have access to an individual learning account of £150 or dedicated training to NVQ Level 2 and 3. The Confederation has already received funding in order to fund 300 ILA and 206 NVQs for 2001/02 within Merseyside. This investment will help the NHS make better use of health care assistants, operating department practitioners, pharmacy technicians and others. These staff will play a key part in raising the standard of patient care.
It is implicit that NHS employers will have to work with local education providers to offer high quality learning opportunities for staff without professional qualification. The Confederation has a remit to widen the access for those communities who are under-represented in the workforce. It plans to achieve this by a number of methods including cadet schemes, work experience and Introduction to practice; this is a preparation programme for people who are interested in a career in the NHS. At completion the participant will have the necessary entry gate criteria to undertake nurse training. These individuals can be positively targeted via local recruitment to local health programmes. Lead partner: The Merseyside and Cheshire Workforce Development Confederation
(iii) The port and maritime industries
One of the early projects emerging from the Atlantic Gateway SSDA is an employer led collaborative skills venture aimed at securing more skilled people available for the sector’s needs. Work has already been commenced in respect of stevedoring trades with the intention of widening this to eight skill sets as the model expands under the aegis of MerseyPort.
Lead partners: Atlantic Gateway SSDA Board and MerseyPort Development team
39 (iv) Tourism
Mersey Tourism has undertaken a training audit which identifies training needs in the sector. In addition, the importance of customer care training is vital to the Action Plan generally but particularly in view of the Mersey Waterfront Regional Park and its proposed related tourism developments.
Lead partner: Mersey Tourism
(v) Other growth sectors Alongside the three sectors identified above, there is also a need to ensure that the design and delivery of training and up-skilling measures supports the needs of other growth sectors and clusters and that current and future anticipated skills shortages are eliminated. This will also help to ensure a wider range of access points employment as well as improved progression through the labour market.
Lead partners: GMLSC/GME/FE/HE
6.4 Supporting the economic “driver” priorities by developing and retaining graduates to fuel the knowledge industries The Universities have a long and successful track record of collaboration with other HEIs in undergraduate (Business Bridge) graduate (Graduates into Employment Unit - GIEU) and post-graduate (Teaching Company Scheme) development work to provide high value employment and high graduate retention rates in the region. Working together with Business Bridge, GIEU intend to create a Pool of Talent to be available to the region's businesses who will be trained and encouraged to gain work-related skills and supported to gain employment in the region's businesses. Subject to match funding availability, Objective 1 resources could be used effectively to extend this to include the kind of management development for graduates that are offered by large corporates. It is predicted that SME growth in the sub-region will require the recruitment and retention of some 8000 graduates – the vehicles of knowledge!
Lead partners: Liverpool University and Liverpool John Moores University
6.5 Supporting the “breakthrough” priorities – SSDAs, EDZ and Daresbury
The SSDA, EDZ and Daresbury programmes provides a unique opportunity to give greater focus to the specific skills needs of employers and investors in these areas, with the potential for increasing collaborative arrangements for skills and workforce development between groups of employers – linked back into the needs of unemployed communities. In this way Merseyside will be making best use of the asset of its existing employer base to reduce its need to import labour from elsewhere, thereby reducing the leakage of incomes out of the sub-region.
Lead partner: SSDA and EDZ Boards
40 6.6 Supporting the economic “driver” priorities by focussing on employability
Partners have referred to the importance they attach to a focus on the development of people in terms of their readiness for work. Improving basic skills is also central to GMLSC’s plans and indeed to government through DfES. The plan is to achieve a co- ordinated programme aimed at unemployed and school leavers to ensure that they are ready for the world of work. This process clearly needs to start at school (as proposed - see for example section 6.2 (iv) above), permeate the pre-work development package offered by all the relevant agencies (see figure 5 above) and raise the aspirations of those who are in employment but who are not reaching their full potential.
A range of measures is required to create a match between the needs of employers and the skills of local people. Existing employees will benefit from training and upskilling to nationally recognised standards at NVQ Level 2 and above. This will, with other supporting initiatives, result in ‘bottom line’ improvements for employers together with raised expectations and self-esteem for employees. For the long term unemployed programmes are required that provide encompassing support packages which instil the work ethic, build self-confidence, deliver basic skills training and provide opportunities to work in a real working environment with real work targets. To enable inclusion of all, transport and childcare needs will need to be addressed.
6.7 Promoting social inclusion – job creation through the social economy The social economy is emerging as a key policy priority at European and national levels (e.g. the Neighbourhood Regional Strategy), regionally (as one of the NWDAs identified priorities) and locally (within for example the Objective 1 and 2 programmes and the emerging ‘Liverpool Plus’ proposals). However there is extensive debate about what constitutes the ‘social economy’. The term is often used to encompass everything which sits outside the traditional private sector and the public sector, that is, incorporating all voluntary sector activity. The focus of this Action Plan however is primarily on the wealth- generating end of the social economy spectrum in the development of ‘social enterprises’.
Figure 6: An overview of the social economy
Trading T ransaction
Grants
Volunteers
Social Gain Profit Motivation / Mission
41 In July 2001, NWDA hosted a workshop which brought together potential funders, providers of social enterprise activity, local authorities and networks to discuss the potential for developing a package of support for social enterprise on Merseyside.
Social enterprises are businesses that trade in the market in order to fulfil social aims. They bring people and communities together for economic development and social gain. Social enterprises have three common characteristics: (i) Enterprise oriented: They are directly involved in the production of goods and the provision of services to a market. They seek to be viable trading concerns, making a surplus from trading. (ii) Social aims: They have explicit social aims such as job creation, training and provision of local services. They have ethical values including commitment to local capacity building. They are accountable to their members and the wider community for their social, environmental and economic impact. (iii) Social ownership: They are autonomous organisation with a governance and ownership structure based on participation by stakeholder groups (users or clients, local community groups, etc) or by trustees. Profits are distributed as profit sharing to stakeholders or used for the benefit of the community.
Social enterprises are increasingly vehicles for achieving broader regeneration objectives and reveal themselves in a variety of forms, which include: employee owned businesses creating jobs and rescuing jobs as part of economic development strategies; credit unions providing access to finance; co-operatives: development trusts; social firms providing employment and training to people with disabilities and other disadvantaged groups; intermediate labour market organisations (or transitional employment mechanisms) providing training and work experience for the long-term unemployed; community businesses: social enterprises which have a strong geographical definition and focus on local markets and local services and Charities' trading arms: enabling charities to meet their objectives in innovative ways, such as Fair Trade companies.
Social enterprises appear to move along a continuum from (on the left) mainly grant- aided organisations to (on the right) organisations that are viable trading concerns making a surplus from trading. It was agreed that for the purpose of the Merseyside Action Plan partners should target those organisations towards the right of the continuum.
Social enterprise development and involvement in service delivery is potentially unique in that it can make a key contribution to a number of different dimensions of the regeneration agenda: o Social inclusion/Neighbourhood Renewal – through for example provision of employment and training opportunities; targeted physical and environmental improvements; better local services and amenities; and measures to promote social capital, community empowerment, cohesion and identity. o Improved competitiveness – through development of new sustainable activities which retain and reinvest surpluses in the local area and which provide goods and services that promote a ‘business-friendly’ environment, help attract new investment and facilitate local business growth. o Improved services and amenities – through a more ‘entrepreneurial’ approach to service delivery thus providing for the development/improvement of services - especially in target areas - and greater cost-effectiveness.
42 The workshop considered that support for social enterprise should focus on:
- Nurturing and support before going into business. - Finance and investment. - On-going support – such as best practice sharing and generic services. - Infrastructure and facilities –such as plant and equipment. - Research and development of new ideas. - Risk funding - need for funders to be "creative". - Capacity and training and education particularly in management skills.
A research programme has been agreed which includes a review of best practice models elsewhere for completion by March 2002. This will form the basis of a set of specific actions and proposals for consideration by partners.
6.8 Developing communities – early actions from LSPs
NWDA has indicated that it wishes to participate in the LSPs in the region as a member of each board and as a funding partner for the economic elements of the LSP plans.
The NWDA has asked each of the LSPs to develop economic development proposals to operate within the most deprived areas. The proposals are being submitted as part of the NWDA corporate planning process.
6.9 Developing communities – housing A recent report on housing markets in the M62 corridor by the Centre for Urban and Regional Studies (CURS) at Birmingham University, together with more detailed research in Greater Merseyside, have pointed to the severe problems experienced in the housing markets of significant parts of the sub-region. The most severe concentrations are in Liverpool (eg Anfield, Breckfield and Kensington), Inner Wirral and Bootle. While the reasons for this phenomenon are complex in individual localities, clear patterns have emerged. The problem has both social and economic implications, both for the localities involved and for the economy of Merseyside. The accelerating decline of these neighbourhoods exacerbates problems of social instability and accelerates the rate of abandonment as more economically active households move out. The effects of blight jeopardise existing public and private investment and undermine prospects of market solutions. There is a clear gap in the range of existing policy and funding instruments to tackle the clearance, remodelling and other restructuring of housing provision required in order to stem current and future decline of these housing markets and the consequent negative effects on the quality of life in these areas.
It is essential that partners offer support to the North West Housing Forum in its submissions to the Government’s Spending Review 2003 for effective instruments needed to lay down the pre-conditions for private sector investment. There is a recognition that this essential public sector intervention will take many forms including streamlined CPO powers as well as financial instruments – perhaps in the form of tax credits and gap funding – for the costs of the acquisition, clearance and redevelopment of such areas along with mortgage and shared-ownership schemes to enable low equity owner occupiers to be re-housed as part of the redevelopment process. Used in combination with the Neighbourhood Renewal Strategy, and with local labour in construction schemes to provide jobs to local residents, the effective restructuring of declining housing markets will make a significant contribution to a competitive and sustainable Merseyside economy.
43 Lead partners: Housing Associations, local authorities and private sector housing providers
6.10 Setting the conditions for economic development – health impact assessments In the context of developing people and the sub-regional economy, it is important to bear in mind that residents’ health (rather than the management of sickness which absorbs most of the NHS’ resources and public attention) is a critical issue. A methodology for health impact assessment of programmes and policies has been compiled by key health organisations locally21. Such assessments should guide rather than delay the decision-making process. In order to make the most efficient use of available expert resources, it is necessary to be selective about what impact assessment is undertaken. Projects, programmes or policies should be assessed summarily with regard to their likely influences on health. Financial and/or human resource costs of assessing a programme/project/proposal or service, or the level of vulnerability of groups affected may be the criteria against which selection is carried out. This procedure is necessarily crude, but is essential if Health Impact Rapid Appraisal is to be effectively deployed. From a strategic perspective, it is likely that priority is given to overarching policies above programmes, and to work programmes and services over individual projects, since criteria set at the policy level should have a knock-on effect in delivering action locally which is beneficial to health. The proposal is that given that the health of the sub-region’s people must be a priority, there should be a health impact assessment undertaken of a sample of projects considered relevant by the both TMP, representing the partnership, and by the health authority. Following completion of this Action Plan, further discussion on how this might be applied and how a sample of projects might be selected will be considered by TMP.
Lead partner: Liverpool Health Authority
21 Copyright the authors c/o Impact (International Collaboration for Health Impact Assessment) consisting of Liverpool University, Liverpool School of Tropical Medicine, Liverpool Health Authority and Liverpool John Moores University, November 2000
44 7 Sub-regional priorities – creating the environment for growth
7.1 Introduction This section sets out the necessary actions needed to support the growth of the sub- regional economy through the economic driver priorities. It also identifies the need to market the city region effectively to attract investment.
7.2 Support for the breakthrough priorities – designated Strategic Sites The Regional Strategy included a shortlist of 11 large regional strategic sites but it also committed the NWDA to a property review in order to facilitate an extended list. The following summarises the existing sub-regional sites that are included on the regional list of 11 and those additional sites which are recommended for inclusion on the extended list which is subject to consultation with partners. They fit well with the SSDAs/EDZ/ Daresbury “breakthrough” priorities or are important facilities to serve to improve intermodal transport links with them.
Existing: Target use: Daresbury Park, Runcorn High quality service sector Kings Business Park, Knowsley High quality service sector The Estuary, Liverpool (Speke Garston) High quality service sector Wirral International Business Park Generic manufacturing
Proposed additional sites (subject to consultation):
Birkenhead 12 Quays RoRo ferry terminal Wavertree Technology Park, extensions Creative and knowledge industries Liverpool, University Edge Creative industries and university spin outs Parkside Potential inter modal freight terminal Ditton, Widnes Potential inter modal freight terminal
In addition the Mersey Belt study by DTZ Pieda (yet to be published) is understood to recommend that a number of additional sites need to be acknowledged as important to the growth of knowledge-based industries. As well as Speke Garston, Wavertree Technology Park extensions and Liverpool, University Edge, the study is understood to recommend the designation of Clatterbridge, Wirral. In all cases these recommendations are understood to be made with high priority weighting attributed to the sustainability of the sites.
The local authorities welcome the current consultation exercise on the proposed 14 new Regional Strategic Sites, including the five referred to above, as set out in recent correspondence from NWDA. Local authorities would wish to ensure that the NWDA is
45 flexible in its approach to Regional Strategic Sites, taking into account market demand and the deliverability of these sites, and that it will be responsive to sites put forward in Merseyside for NWDA support in the SSDAs, EDZ and Daresbury and others with Objective 1/2 resources.
The need for such a flexible approach is revealed by the past take up of sites but more importantly by the projected future take up given Merseyside’s development programme. In excess of 160 ha of the identified strategic sites on Merseyside have been developed over the last three years which represents some 18% of the total. Demand continues to be strong with a number of strategic developments at an advanced stage of negotiations with planning applications either submitted and under consideration or imminent. Therefore, it is essential that the quality of product is maintained if the level of demand is to be sustained and enhanced.
The Merseyside partners are also able to put forward a range of brownfield sites near to the Mersey Belt Southern Crescent which offer the North West region opportunities for a more sustainable development programme than will be achieved if development of the Southern Crescent is allowed to become too intense.
Lead partners: Local authorities and NWDA
7.3 Supporting the economic “driver” priorities through land reclamation Reclamation of derelict land is a Regional Strategy priority – the North West contains 25% of England’s derelict land. NWDA has just completed a Land Reclamation Review which confirms that it is looking to develop a step change in the way it addresses with partners the wide scale environment deficit problems. It wishes to focus mainly on soft end use projects with a range of partners.
As part of this Action Plan, all six Merseyside local authorities have provided information indicating the scale and scope of present priorities for reclamation of land in their current regeneration programmes (for example the SSDAs, and EDZ). They have also indicated how these priorities could be broadened to reflect the NWDA’s new policy ambition. The sites submitted in the context of the development of this Action Plan as a first stage in the sub-region’s response to NWDA’s call total some 1220 ha of land, of which some 730 ha is within high priority regeneration areas. The total cost of reclaiming these sites is estimated at £240 million. The high priority sites account for about 75% of this total. These costs are based largely on historical average reclamation costs, and therefore do not at this stage take into account potential unusual remediation costs. Also, many of these sites will have long lead-in times to reclamation/reuse because of ownership and other problems. Approximately one third of the total area comprises land proposed specifically for “soft” after-uses (some within high priority areas). The estimated cost of reclamation for soft after-uses is some 5% of the total cost.
It is emphasised that this estimate does not reflect the full picture of land in need of reclamation in Merseyside – it is a ‘snapshot’ of a range of key sites which need to be brought into productive use. It reveals the importance of action in the priority regeneration areas, and indicates the timescale within which reclamation should take place. The need for a focussed rolling programme of reclamation in Merseyside is clearly demonstrated. The local authorities wish to work with NWDA in developing such a programme as a matter of urgency. Lead partners: Local authorities and NWDA
46 7.4 Supporting the Mersey Waterfront Regional Park – coastal resorts The Regional Strategy identified the North West's coastal resorts as important tourism and leisure assets, and as the most sustainable locations for new development. It noted that markets were changing and that some resorts were experiencing serious economic difficulties. To address this issue, a new vision is being developed by a partnership of the relevant local authorities and other agencies, focusing within Merseyside on the resorts of Southport and New Brighton.
The brief of this new partnership is to produce, within the next few months, a strategy which will guide public and private investment in the task of revitalising the strong basic assets of the coastal resorts. The objective is to strengthen their role as centres for leisure and tourism, reinforcing the substantial contribution which these activities make to the respective local economies, and producing substantial employment and environmental benefits.
This initiative will form an integral part of the Mersey Waterfront Regional Park project. It also relates closely and compatibly with other existing and evolving initiatives, including the Mersey Basin Campaign, and the Interreg Quality of Coastal Towns project.
Lead partners: Sefton MBC and NWDA
7.5 Supporting the economic “driver” priorities through transport development There is a range of important improvements needed to the sub-region’s transport infrastructure in order to underpin the delivery of economic prosperity targeted. The following sets out the actions that will support the “big idea” projects, the ‘breakthrough’ and the wealth creation priorities. Linking areas of need to areas of opportunity is a key theme in the ‘breakthrough priorities - in SSDAs/EDZ and Daresbury developments as well as in respect of access to Liverpool City Centre.
The Merseyside Local Transport Plan (LTP) and the LTP for Halton provide the strategic framework in which the transport network of Merseyside will be improved over the next 10 years. The plans seek to support the new Objective 1 and 2 Programmes and other regeneration funding programmes and secure the sustained and inclusive regeneration of Merseyside. They contain a ten year transport strategy covering all forms of travel, including freight movements and a more detailed five year implementation plan covering the period 2001/02 to 2005/06.
Compared with the rest of the UK, Merseyside has a low level of car ownership - with over 40% of households having no access to a car. Levels of traffic have remained relatively unchanged over the last 10 years with only limited traffic congestion on the major routes – with some notable exceptions such as Runcorn Bridge. However this is forecast to change, as a result of the regeneration programmes, and a 30% growth in general traffic volumes over the next 10 years is anticipated. A key element of the LTPs is to better link the 38 Pathways and CED areas across Merseyside to employment opportunities in each of the SSDAs/EDZ and Daresbury, to assist with the target of securing employment for the unemployed. At the same time, the LTPs have set about actions which will constrain the impacts of this traffic growth by the delivery of high quality sustainable transport networks.
The LTPs also reflect and support the key transport priorities for the region as set out by the North West Regional Development Agency Regional transport investment priorities.
47 The priorities derived in this process are also reinforced by draft Regional Planning Guidance (RPG) for the North West. ‘Breakthrough’ priority support – city region linkages
(i) The linking of the two conurbation cores and Liverpool and Manchester Airports using the Mersey Belt ‘rail circle’ concept (which is only possible by building the Manchester Airport Western Link) along with an integrated transport system north and south of the river between the two cities is seen to be crucial, particularly to provide much needed capacity at the Manchester hub, which is important to the services to/from Merseyside.
Linked to this is the need for capacity enhancements on the West Coast Main Line for all classes of traffic and will result in faster journey times and new rolling stock. Lead partner: SRA, Railtrack and Virgin Trains
(ii) Air links from Liverpool to London need to be re-established for economic credibility – a study is underway. Lead partner: Avia Consultants
(iii) A significant business need is the main corridor area improvements and access to Liverpool City Centre from the M62 which require major improvement as a priority consistent with Liverpool’s growth and projected further development. Lead partner: Liverpool City Council/Highways Agency
(iv) Allerton Interchange – is essential to the maintenance of regeneration initiatives in South Liverpool and to improve public transport access to the Airport. It is included in the North West RPG as a priority. It features the construction of a major new interchange facility between local and longer distance rail services, local bus and coach services and a 300 space park and ride facility. It also forms part of the Liverpool Airport Surface Access Strategy. Lead partner: Merseytravel Support for the commercial elements of the Mersey Waterfront Regional Park – port access, freight and intermodal development
(v) Managing freight on the rail network and NETA - in view of the importance of freight to the North West and Merseyside economies, there is a need to secure the Government and the Strategic Rail Authority’s acceptance of the Central Railways’ proposal to construct a new rail link to carry trailers and containers from the sub- region to the continent through the Channel Tunnel.
Merseyside partners have also been involved with the Northern European Trade Axis (NETA) project. The European Union has sponsored a project exploring the potential for developing a west-east trade corridor to complement the existing predominant north-south trade. From the eastern coast of Ireland, the corridor spans the Irish Sea to Liverpool and Manchester, crossing the Pennines to Yorkshire and the Humber ports, then on to continental Europe via the North Sea. The NETA project is developing several action-orientated projects for submission under Interreg IIIB, which involves high gauge integrated transport freight routes between Merseyside and the Humber Ports, all of which are clearly important. Other actions include streamlining the logistics chain to ensure the fast movement of goods and services within NETA. Lead partners: New rail link - Central Railways and NETA Partners
48 (vi) Managing freight on Merseyside’s roads - in view of the significant level of freight from the Port, there is a particular need for a commitment to improve the sub-region’s road connections to the South. Also the sub-region is vitally interested in the M62/M60 multi-modal studies underway, given its importance for commercial traffic connecting Mersey and Humber Ports and the major conurbations of Manchester and Leeds with Merseyside. Moreover, the Regional transport priorities confirmed in 2000 include the improvement of M62 Junction 6 to provide adequate capacity to serve the Airport and the Port and improve access from M62 to the City Centre. Lead partner: Highways Agency and local authorities
(vii) The Second River Crossing – consultants have been appointed for the next stage of the work (in the period 2001-2003). In view of its importance to the sub-region there is a need to bring it up the agenda to ensure commitment to seeing it through to completion (7 to 10 year horizon). It is essential to the success of the rail transfer facilities currently at Widnes and will be essential to the Ditton project (see (viii) below), to the Freightliner Terminal at Garston, to the ports at Garston and Runcorn, and to the commuting between Halton and South Merseyside. Lead partner: Halton Borough Council
(viii) Ditton Freight Village is referenced in the Merseyside Local Transport Plan and would be located in the key corridor identified by the Merseyside Freight Study. It is a major brownfield site and has enormous capacity for transfer of freight to rail. It also links with A5300 and does not conflict with the Parkside opportunity referred to in (x) below.
Lead partner: Halton Borough Council
(ix) Parkside - is a project to develop a major intermodal freight terminal close to M62/M6 on the site of a former colliery Lead partners: Railtrack and St Helens MBC
(x) Rail access from the Port to the mainline needs the addition of the so-called ‘Olive Mount Chord’, and work to a number of bridges to achieve gauge enhancement. It is also essential to resolve the current conflict between passenger and freight movements. Also there have been discussions over the restoration of the links to Birkenhead docks from Rock Ferry and from Bidston. There is complementary work underway to try to identify firm rail traffic. It is likely that external funding will be required if the potential of the scheme is to be realised since there is no Railtrack funding available. Lead partners: Olive Mount Chord - Railtrack/SRA/ Sefton MBC Birkenhead – Wirral MBC, MDHC, Railtrack and EWS
(xi) Road access from Switch Island to the Port and the link with Liverpool City Centre is now the subject of a major study under the Atlantic Gateway SSDA plans. Also access to Southport is a key issue with current difficulties constraining tourism and business growth. Lead partner: Sefton MBC and Liverpool City Council
49 Support for the tourism elements of the Mersey Waterfront Regional Park
(xii) Given the international image to be created by the Regional Park for tourism there is a need to develop the tourism and visitor linked developments identified in the Local Transport Plan including the cycle routes, walkways and additional local rail and bus facilities. Lead partner: Merseytravel and local authorities
‘Breakthrough’ priority support – Liverpool City Centre
(xiii) The City Centre, main retail area (Paradise Street) and major transport nodes (Lime Street and Pierhead) Movement Strategy – is a crucial element in the delivery plans for Liverpool Vision and for the Mersey Waterfront Regional Park concept referred to in section 3 above and it includes a Light Rapid Tram system – Merseytram - which proposes to link the Waterfront with the City Centre. It also proposes a major upgrade of Central Station. Lead partners: Merseytravel/Liverpool City Council/ Liverpool Vision
(xiv) Hall Lane improvement scheme – will allow much improved flows around the City Centre and environmental improvements for the Hall Lane and Kensington residential areas. Lead partner: Liverpool City Council
‘Breakthrough’ priority support – SSDAs/EDZ and Daresbury
(xv) Movement and transport plans – each of the SSDAs/EDZ and Daresbury and generally across Merseyside, the LTPs include a number of proposals to improve movement, particularly the linkages between these areas of opportunity and the adjacent areas of need such as the Pathways and CED areas. As such comprehensive proposals have been identified in the LTPs based on the following themes:-
- walking; - cycling; - sustainable public transport; - demand management; - improving choice; - accessibility for all; - maintenance; and - sustainable freight.
The development of a Single and Fully Integrated Public Transport Network is a key part of the proposed Merseyside wide improvements. These include the upgrade of 15 key bus corridors to SMART Quality Standards over the next five years as a Quality Partnership between Merseytravel, the bus operators and the local authorities. These SMART routes will be fully integrated with the Merseyrail Network, Mersey Ferries and the proposed Merseytram.
Further improvements to the Merseyrail network are also programmed, including rolling stock refurbishment, station improvements and better Park and Ride facilities.
Lead partner: Merseytravel, local authorities and SSDA/EDZ Boards
50 7.6 Supporting the economic “driver” priorities through a new focus for investment marketing
Over the last eight years TMP has made a major contribution to the improving fortunes of the city region. Through its strategic communications programme it has put Merseyside “on the map”. Confidence has improved both locally and nationally. Negative national coverage has diminished, image has improved, tourism is booming and in the last few years a number of high profile inward investments have been realised. However the job is far from complete. Although it is now accepted that the city region is “on the up” much work will need to be done to sustain the positive momentum. TMP’s investment marketing and image programme will need to adapt to an ever-changing environment if it is to continue to be effective. Moreover it needs a much tighter focus and be “joined up” with other economic development stakeholders’ activities throughout the region.
There are a number of priorities and drivers for change that have emerged and which will impact on TMP’s investment and image marketing over the next few years:
§ TMP’s new economic development co-ordination role for the sub-region § the need to work closely with NWDA in investment marketing § the Mersey Waterfront Regional Park – full of investment marketing possibilities § the acceptance regionally of the importance of Liverpool City Centre at the heart of a city region § the emergence of SSDAs, the EDZ and Daresbury § the strategic sites § the emergence of a sector focus and sector champions § Liverpool’s bid for European Capital of Culture 2008
In reviewing the above, it has determined the following three key action areas:
(i) The new economic development co-ordination role for TMP offers it a massive opportunity for increased focus. The priorities and actions set out in the sections above set the agenda to influence product development. Following consultation on this document decisions will be made on the sub regional economic priorities for 2002-5 including the sectors and clusters that TMP should focus its efforts on.
Promotional campaigns only have two main purposes – firstly to raise awareness of success and secondly to change perceptions about “an untruth”. A true “marketing” approach needs to address issues on product development and pricing and this is where TMP can now make a difference. Research has been planned for later this year that will identify what the key issues are for each of the agreed target sectors. TMP will be looking to identify the sub-region’s competitive position in each sector with the sector champions and from this identify the best plan for each. These plans will consist of a number of solutions, many of which will not be related to promotion for example lobbying for world-class office space or encouraging the development of more multi-lingual training.
(ii) Merseyside’s SSDAs, its EDZ and Daresbury and the ‘to be agreed’ strategic sites should be presented as “the jewels in our crown”. They should not be marketed in isolation but showcased within existing marketing activities. SSDAs, the EDZ and Daresbury may wish to promote themselves within a local or regional context but for national and international promotion, TMP will position itself as the lead agency. 51 TMP’s promotional activities such as advertising, PR programme, print, web site and broker visit programmes will all highlight the SSDAs/EDZ and Daresbury and the strategic sites as the focal points of the city region. TMP will need to work closely with the NWDA and refocus its marketing communications so that the broader strengths of the city region are still promoted but give major prominence to the specific strengths of the SSDAs themselves.
(iii) Last year, TMP introduced Liverpool as an explicit component of its regional campaigns; consistent with campaigns branded under the “make it Merseyside” umbrella. Further, there is a consensus that TMP is right to lead with a Liverpool brand for tourism and overseas campaigns. Liverpool is a huge global brand – Merseyside is not. TMP and its stakeholders must continue reviewing market perceptions to ensure that campaigns and activity select the best branding in a consistent, professional manner for the target audiences, be this strap-lines on Liverpool, Merseyside, other districts or a combination thereof. The remit will still be to promote the whole city region not just Liverpool but this will be most effectively achieved by capitalising on Liverpool as the most powerful brand.
52 8 Laying the foundations for Merseyside’s renewal to 2010 and beyond – the “carry forward” priorities and actions
8.1 Introduction There are a number of important foundation activities that will be underway during the period to 2005 but where the expenditure or the project will not be committed until later. In the context of a this medium term action plan it is important to maintain the projects referred to below as priorities even if only partial funding or no significant funding requirement is needed. Also set out below in outline is the expected state of achievement for each of the priority sets by 2005.
8.2 The “Big idea” projects
(i) The Mersey Waterfront Regional Park
Partners have already confirmed that they see the development of their vision for the Regional Park as needing ten to fifteen years to realise. The proposed Strategic organisation will put forward development targets for all four themes and monitor partner delivery of them. However, by 2005 a significant increase in visitor and tourist numbers, and massive investment in waterfront facilities will have been achieved. Undoubtedly there will be ongoing investment In the Estuary, in tourism and leisure facilities and on flagship developments in the key centres.
(ii) The national centre for biotechnology in Speke
A number of its elements will be created before 2005, but the realisation of the investment associated with firms being attracted by the facilities is likely to peak after this period; some of these will be SMEs and ongoing business development support is likely to be needed to realise their potential.
8.3 The “breakthrough” priorities (i) The SSDAs/EDZ and Daresbury are areas of massive opportunity the programmes for which will only be completed by 2008. The European funding programmes for such initiatives is very demanding and in order to avoid problems in terms of under- achievement of objectives funding is being allocated based on performance against targets set. There will be a major review in 2004 that will identify then how best to allocate the remaining part of the funding based on which parts of Merseyside appears to offer the best opportunity to realise the GDP and employment targets in the remaining period.
(ii) Liverpool City Centre’s regeneration programme extends beyond 2005. Support for ongoing action will be needed but there is an expectation that the private sector will be the most significant source of development funding. Evidence so far in terms of property values in the City Centre would point to a self-sustaining position in this timeframe.
(iii) By 2005, Liverpool’s work to prepare for the Capital of Culture bid in 2008 will be intensifying.
53 8.4 The priorities for creating wealth through business development This Action Plan envisages that much of the work necessary to establish high growth and employment will have already become evident. This will reveal itself in a number of ways: § the private sector port and maritime industry key partners will have established a collective vehicle which seeks to maximise the impact of the cluster and will be realising more added value activity in Merseyside linked to the strategic port facilities; § Liverpool will have achieved an international profile for its digital content, multi media and Grid expertise and it will become a ‘breakthrough’ priority in its own right; § more recruits annually will be taken in the construction and maintenance sector; § a significant increase in tourist and visitor numbers will be evident; § more entrepreneurs than now will emerge from the universities, colleges and schools; § the universities will be even more ‘embedded’ than now in the development of knowledge-based firms throughout Merseyside. As a consequence the stock of knowledge-based firms will have significantly increased; and § investors into Merseyside will experience a more slick, professional and convincing offer than any other comparable sub-region in the UK.
8.5 The priorities for developing people and communities The need for continuous improvement and for the private and public sector to train for competitiveness will continue beyond this action plan period. New specific intervention opportunities will arise in growth sectors. Also social enterprise will take time to develop and achieve growth along with the opportunity to recruit people and enable them to start climbing the economic ladder; but it will become an important part of Merseyside’s employment tapestry.
The LSPs will have completed their set up activities and will be starting to make a difference to disadvantaged neighbourhoods. They will need the full participation of all key agencies with a neighbourhood agenda to make a real difference to the quality of life and economic prospects of these neighbourhoods. Once their planning has been completed there will need to be further consideration of the issues that are common and which need to influence policy and programme implementation.
8.6 The priorities for creating an environment for growth A number of transport infrastructure changes will take a number of years to complete, including the second river crossing, the Manchester Hub Rail system and the M62 Junction 6. Merseyside’s land reclamation programme will be at a level by 2005 such that the stock will be reducing.
8.7 Another important ‘carry forward’ project Opportunities for mutual benefit from collaborative development of the two city regions may emerge in the Liverpool-Manchester Vision study currently in progress.22
22 SURF,CURDS, DTZ Pieda Liverpool – Manchester Vision Study 54 9 Issues for partnership debate with NWDA and Government
9.1 The way forward The development of this Action Plan has been a positive process of collective discussion that has enabled a wide range of organisations to reach agreement on priorities. It is the start of an ongoing process through which Merseyside partners accept that they need to support the achievement of targets set by the NWDA which in turn need to be in line with targets set nationally. Therefore this Action Plan should be further developed by partners and funding agencies into a programme based on agreed project by project costs and funding profiles. As part of this activity, project output and outcome targets need to be set. Individual projects need to be monitored by funding agencies and a body, such as TMP, needs to co- ordinate the monitoring of progress on the programme as a whole, reporting annually to partners. More discussion is needed with NWDA and partners on this process to ensure that consistent targets for outputs and outcome measurement are used and that information can be made available to TMP without establishing an overly detailed or cumbersome reporting structure.
9.2 Discussion issues In compiling this draft Action Plan, partners on Merseyside considered many issues that affect the area’s economic development potential. Many of those issues have been noted earlier, and can be tackled within Merseyside. There are also issues which are set in a wider context (of regional or national policy), or are of such a scale, that they need to be addressed on a larger canvas. Examples of such issues that were mentioned are highlighted below, which could form the basis of further discussion with the NWDA and other Government departments. In this way, Merseyside plays its part in helping influence, and resolve, issues of a wider nature that can help promote growth in our area and across the North West.
(i) Effective funding and delivery arrangements for business support
This Action Plan sets out a coherent set of actions which require concerted and collaborative efforts on behalf of Merseyside partners to achieve what they believe will be a high impact on the sub-region’s competitiveness. Partners now wish to work closely with NWDA to develop a more coherent approach to the delivery of business support activity. This will certainly require integration and leadership from partners, NWDA and other new agencies such as Objective 1 and 2, GME, GMLSC and BTi. Importantly a greater degree of flexibility on behalf of both Government and the European Union as primary funders of business support is needed to make effective use of European Structural Funds. Specifically, additional public sector revenue support of some £70m needs to be identified. In this respect, central government and its agencies have a particularly important role to play as they deliver key components of government policy within the regional and local context.
(ii) Housing
There are some severe housing problems in parts of the sub-region. Partners recognise that upgrading the region’s housing is a long term process, involving the leverage of private investment and the strong involvement of local communities. It is important to build upon actions such as those of the Neighbourhood Renewal
55 Fund, to ensure that housing issues are part and parcel of the overall urban regeneration effort. Substantial resources are likely to be needed in this area, and further review of Regional Development Agencies’ ability to fund housing renewal programs may be merited, and/or the scope of the Housing Corporation and Housing Associations to play this role. Care has to be taken to avoid a danger of certain neighbourhoods moving into decay – with significant social and economic costs - particularly private owner occupied houses in poor areas such as fringe City Centre, inner Wirral and Bootle.
(iii) Merseyside and the North West’s science base
At the time of compiling this Action Plan, the manufacturing base in Merseyside is under recessionary pressures as elsewhere. One of the key factors in both retaining and attracting new manufacturing industry is the strength of the science base in Merseyside and the North West. A recent report to Government Office following the decision not to locate the next synchroton investment at Daresbury 23 noted that “particular production facilities may be sited in the region because of the proximity and scale of the science base, such as R&D centres, and any erosion of the science base over time may make these operations less fixed in the region”. The report also argues that “the level of science activity may also have an important role in projecting a favourable image for the region that could in turn influence investment decisions of inward investors or UK firms”.
The North West science base is strong and broadly based, yet the region must be alert to the effects of continuing industrial change and avoid becoming disadvantaged relative to other regions. There is a major imbalance nationally in the location of non-university public research with 39 research organisations located in the South of England or Oxbridge and 7 in the rest of England24. Since one of the most important projects in this Action Plan – the biotechnology centre in Speke - is very dependent on the region’s science base, the gaining of future public sector science activity to reinforce it is essential. The North West, and Merseyside in particular, also have the development sites available which are often not available near to other science bases in the UK.
23 Arthur D, Little Limited - North West Science and Daresbury Development Study: Report to the Government Office for the North West, January 2001 24 Location of public research institutions in the UK (excluding universities and DERA sites): University of Wolverhampton. 56 10 Conclusion This draft Action Plan offers partners the context for agreeing funding of projects with funding agencies. It proposes a stratification of priorities to enable partners to demonstrate focus on activities most likely to deliver the scale of economic impact required. However, in targeting such a focus, it acknowledges the importance of ensuring that the economic and social conditions are set to support the economic drive. In particular, educational attainment needs continual attention in schools. People in work and out of work need to be developed. But there is increasingly a desire to focus on the growth activities and respond to the signals that are generated from them in designing and applying training interventions. In addition, strategic sites and under-used land needs to be put forward to respond to the same signals. A key benefit of this process will be that Merseyside now plans to bring its investment marketing in line with the priorities. This will underpin partners’ aim to improve the sub- region’s image. Supporting Liverpool’s bid for the European Capital of Culture in 2008, if successful, will also create the environment for a step change in image. The discussions across the Partnership have also identified a number of concerns which need further discussion with colleagues at NWDA and then with Government as outlined in section 9 above. There has been substantial collaboration across partner organisations through TMP in order to develop this Action Plan. This bodes well for the future. With the collective power of all partners combined in this manner, Merseyside can look forward to a brighter economic future, offering people new opportunities in a great place to live, work and visit.
The Mersey Partnership looks forward to consulting with partners on this draft Action Plan.
The Mersey Partnership August 2001
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