Agenda item

To consider a report by the Strategic Regeneration Manager (copy attached) which seeks the Committee’s support for the development of a strategy to improve the economic performance of North Wales and the establishment of a Board to oversee the delivery of the strategy.

The Strategic Regeneration Manager (SRM) presented a report (previously circulated) setting out the development of a strategy to address the relative performance of the economy of North Wales compared to that of the other parts of Wales and the UK, and the creation by the region’s six unitary authorities of a Board which will oversee the delivery of the strategy.  The North Wales economy had a low level of productivity (71% of the UK average), low levels of new firm formation and high levels of youth unemployment.

The report looked at how the six unitary authorities engaged with other stakeholders and the voluntary sector.  There was a proposal to have a business charter and to reinvigorate the approach to inward investment. 

Three themes had emerged from the workshops and discussions held across the region and the proposal was to focus on these themes and incorporate them into an action plan.  The themes being:-

• Environment and Energy sector
• Advanced manufacturing
• “Destination North Wales” – how to promote the area

The first job for the Board would be to develop a Business Plan, and by working together the six authorities would have a stronger unified voice.  In terms of taking it forward, the report was to be presented at Cabinet on 17^th July 2012.   The other five local authorities were also presenting their reports to their various Cabinets.

The North Wales Economic Ambition Board would comprise of elected members from each authority and it seemed that the portfolio holder with responsibility for regeneration would be an appropriate member to serve on the Board.  Each Council’s member on the Board would be expected to communicate information on the Board’s work and discussions to their respective authority.  If Denbighshire, when deciding on its corporate priorities for the term of the new Council did decide that economic ambition was to be one of its priorities, an internal programme board would most likely be established and there could potentially be scrutiny members serving on that internal board.

The Vice-Chair raised the issue of whether St. Asaph Business Park could be considered a success.  She stated that half of the business units appeared to be empty and there were 50,000 square metres of vacant space available to let.   Companies had originally moved on to the business park having been enticed by grant funding, but when the grant funding coming to an end, some companies had relocated.  There was an urgent need to encourage private companies to the area, encourage the establishment and growth of local businesses and boost youth employment.

The SRM confirmed the approach being proposed would address the following issues:-

• Whether buildings were available and in the most appropriate locations
• Was the required infrastructure available
• Prospective employers needed to know if there were people with the relevant skills etc.

The Committee agreed that it wanted to see a holistic approach developed for economic development, which had regard for local needs, looking at the infrastructure of the region, the skills base and opportunities available in order to build upon them and improve skills (particularly young people’s skills and qualifications).  Greater emphasis should be placed in future on attracting private sector investment and on nurturing local people/businesses to consider establishing or expanding their businesses so that a much broader range of opportunities were available for people of all ages in the area.  In addition a balance needed to be struck between inward investment, ambition, innovation and regulation in order to develop a sustainable economy for the long term.  There was a strong feeling that regulation at present stifled private businesses and innovation.  It was:-

Resolved that subject to the above the Committee support:-

(a)               the principles of the Economic Ambition – a Strategy of Change document as presented with the report;

(b)               the proposal to form the Economic Ambition Board and its draft constitution as set out in appendix 2 to the report; and

(c)               that an update on the Strategy for Change document and the establishment of a Regional Economic Ambition Board be provided to the Committee in early 2013.