LDP Business Magazine July 2010 by Liverpool Post & Echo

M O N T H LY R E G I O N A L B U S I N E S S M A G A Z I N E

LDP BUSINESS w w w . l d p b u s i n e s s . c o . u k July 2010

Driving ambition

Transport tycoon Steve O’Connor on Stobart’s green dream

● Britain’s banks: Open for business? ● Cloud computing: Preparing for a rainy day ● Business lunch: A hidden gem

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INSIDE 4

LDP BUSINESS

NEWS

Honour for Birkenhead ex-pat

EDITOR Bill Gleeson 0151 472 2319

BIG FEATURE

bill.gleeson@liverpool.com

Are the banks open for business?

DEPUTY BUSINESS EDITOR Tony McDonough 0151 330 4918

16 PROFESSIONAL SECTORS Society’s new president

tony.mcdonough @liverpool.com

17 Steve O’Connor, Stobart Group

BUSINESS WRITERS Alistair Houghton

Peter Elson

BIG INTERVIEW

alistair.houghton @liverpool.com

ECONOMIC DEVELOPMENT

27 COMMERCIAL PROPERTY Better times for 20 Chapel Street

peter.elson @liverpool.com

Focus on Sefton

Neil Hodgson neil.hodgson @liverpool.com

Alex Turner

alex.turner@liverpool.com

HEAD OF IMAGES Barrie Mills

MARKETING EXECUTIVE Cath Reeves 0151 285 8428

SCIENCE & TECHNOLOGY The future is in the cloud

ADVERTISEMENT DIRECTOR Debbie McGraw

INTERNATIONAL TRADE Opportunities in Saudi Arabia

ADVERTISEMENT MANAGER Jackie McMahon 0151 330 5077

HOW GREEN IS YOUR BUSINESS?

A favourable wind from Whitehall

34 TRANSPORT

South Parkway success

36 EDUCATION

University’s online first

PHOTOGRAPHY Trinity Mirror PUBLISHED BY Trinity Mirror NW2, PO Box 48, Old Hall Street, Liverpool, L69 3EB.

38 RESTAURANT REVIEW Blackburne House cafe

39 THE LIST

TELEPHONE 0151 227 2000

FAX 0151 330 4942

NETWORKER

Neil Hodgson goes East

LDP Business is printed monthly and distributed with the Liverpool Daily Post. No part of this publication may be reproduced without permission of the publisher.

SOCIAL DIARY

Carolyn Hughes out on the town

POST-BUDGET Britain is not a great place to be for many millions of public sector workers. Chancellor of the Exchequer George Osborne’s Budget speech last month included plans to cut funding for some government departments by as much as 25%. There will be a corresponding cull in staffing levels within those departments. Indeed, I have already come across examples of public sector bodies showing nervousness about recruitment to existing vacancies. Such apprehension is understandable, given the likelihood that all departments will shortly be asked to freeze recruitment. However, the current

ADVERTISEMENT SALES Julie Cowley 0151 472 2311 Neil Johnson 0151 472 2705

EDITOR’S LETTER uncertainties afflicting the public sector will not just bring a stop to those programmes to be cut but will also, for the time being at least, leave all the good work that isn’t to be cut in limbo. The whole of Britain’s public sector has entered a period of stagnation. It could be many months yet before it ends. Only once the big decisions about where the cuts are actually going to fall have been finalised

and announced as part of the public spending review in autumn will there be any clarity about which programmes are to be cut and which will continue. The recruitment freeze is likely to last, in some departments at least, until Britain’s public sector borrowing requirement is back in balance, a process that could take four to five years to complete. Given the profound disruptive effect the financial uncertainty is having on all branches of government, it is all the more

necessary that the task of sorting the mess out is undertaken as swiftly as possible so as to shorten the pain and bring an early end to what will be some dark and wasted years. There are serious question marks about whether the private sector will be able to generate sufficient employment growth to absorb what surely will be hundreds of thousands of government job losses over the next four years. Indeed, the cuts themselves will have a knock-on effect on the private sector as construction projects and facility management

projects are terminated. Some new source of economic growth will need to be found to replace the GDP lost from the public sector. What could this possibly be? Can we, for example, increase our exports to make good the loss? Somehow I doubt it. What is more, as Harriet Harman said on Budget day, some of the biggest retrenchment will take place in Merseyside because of the region’s over dependence on public sector jobs. Sadly, many of the civil service departments here are not among those whose funding has been ringfenced.

BILL GLEESON 3

NEWS

New Chinese network offers hand of friendship

Network manager Colin Ling

LIVERPOOL Chinese Business Association has set up a dedicated network to open up trading links in the city and as far as China. The Liverpool Chinese Business Network, backed by Liverpool City Council and private sector partners including law firm Kirwans, will promote collaboration between Chinese and nonChinese companies. Network manager Colin Ling said: “Our aim is to help grow profitable relationships between Chinese and non-Chinese

enterprises and assist businesses who wish to trade with China by providing a friendly, accessible environment. “Our network events will be designed to allow people to get to know one another, our motto is ‘let’s first become friends then do business’.” Last month the association established links with municipal and central government leaders during a weeklong trade mission to Linyi, a city of 10.3 million people situated in north east China. ● The Networker P40

Ex-pat businessman achieves OBE honour IRKENHEAD-born Terry O’Connor, who is now a prominent figure in Singapore’s business world, has been awarded the OBE for his services in promoting UK business interests throughout the region. Former St Edward’s pupil Mr O’Connor began his career as a buyer with former Liverpool TV retailer Colorvision in Smithdown Road. He arrived in Singapore in 1993 as buying director for electronics and furniture retailer Courts and is now their regional chief executive. He is also president of the British Chamber of Commerce in Singapore, which has evolved into one of the most effective British Chambers overseas under his guidance. Paul Madden, British High Commissioner in Singapore, said: “I am delighted that Her Majesty has recognised Terry O’Connor’s contribution in this way. He is an outstanding business leader and a leading figure in the British community here in Singapore. “His personal drive and dedication have helped the British Chamber to become one of the best chambers we have anywhere in the world.” Mr O’Connor, who returns to Liverpool two to three times a year to visit family and friends, said: “I see this as not only a proud personal milestone, but also a reflection of the immense support I have had from an outstanding team involved with the British Chamber, as well as the amazing commitment shown by my colleagues at Courts.” Under his leadership, the British Chamber has grown as an active organisation with more than 1,000 members, delivering valuable services to the British business community.

Birkenhead-born Terry O’Connor, an OBE recipient

Begbies Traynor chairman Ric Traynor

Begbies extends offshore growth INSOLVENCY expert and professional services consultancy Begbies Traynor has expanded its offshore practice by opening an office in the Cayman Islands and setting up a teaming agreement with an established insolvency practice in the Isle of Man. The Cayman Islands office will specialise in insolvency and forensic services for offshore clients such as funds and special investment vehicles. The teaming agreement in the Isle of Man with Shimmin Wilson & Co will augment the existing Channel Islands bases in Jersey and Guernsey to create a tri-island practice specialising in risk mitigation with corporate restructuring and insolvency, forensic accounting and

corporate intelligence services for the finance industry. Ric Traynor, executive chairman of the group which operates a Liverpool office in Old Hall Street, said: “These developments represent another step in our strategy to grow our insolvency and restructuring practice through both organic investment and acquisitions. “They will further enhance the group’s existing presence in the important and rapidly growing offshore markets, giving the group the resources and expertise to carry out complex and crossjurisdictional work.” Paul Shimmin, of Shimmin Wilson & Co, is also a director of Begbies Traynor and will head up the group’s team in Douglas.

ADVERTISING FEATURE

Funding key to success Organ builders play a happy tune, thanks to much-needed boost from Stepclever

STEPCLEVER is an initiative to generate an enterprise culture in North Liverpool and South Sefton, by offering free business advice and support, as well as grants and other financial assistance for existing enterprises, start-up companies and individuals. Here we look at an exciting venture which is being helped by Stepclever.

THERE’S one company in Merseyside that works hard at making sure its clients hit the right note. Established in 1981, David Wells Organ Builders Ltd is one of just a handful of companies across the UK that specialises in building, restoring and tuning pipe organs. Clients are located nationwide and include Liverpool’s Anglican Cathedral (which is the proud owner of one of the largest pipe organs in the UK), Liverpool’s Metropolitan Cathedral, St George’s Hall, Liverpool Philharmonic Hall and Liverpool Parish Church. Restoration and rebuilding of large instruments, left, can take up to nine months, and tuning can range from half a day to six days. David said: “Most of our work comes from recommendations – you’re only as good as your last job, after all – and we pride ourselves on providing an efficient service which is of an extremely high standard.” However, during the difficult economic period, David Wells

Organ Builders found it a challenge to attract new business and looked at ways to spread the positive message about the services they could provide. Thanks to Stepclever, they secured a grant of around £2,000, which has been invested in a vital marketing tool. David added: “We went through a very lean time, but thankfully we’re coming out on the other side and Stepclever has given us the boost we needed. “With the money we received, we’re in the process of developing a brand new website which will not only attract new clients but will give us the opportunity to promote all of our services which is great news. “I’d definitely recommend Stepclever to others, as the support they offer can really give your business the boost it needs.” The new site, www.dwob.org, is currently being developed and will be launched soon. ■ TO FIND out more about David Wells Organ Builders, contact davidwells@dwob.org

David Wells – company is developing a new website

“The support they offer really gives your business the boost it needs.” Grow your business

David Wells David Wells Organ Builders Kirkdale

Call 0151 207 6304 or visit stepclever.co.uk

NEWS

Lawrence Gregory of Saturn Security Installations with Nigel Toone, his Business Link Northwest adviser

Saturn looks to go into orbit

Security systems firm is working with Business Link Northwest to grow its business SATURN Security Installations is aiming to set off alarm bells among its competitors by embarking on a high-growth strategy. The Grassendale security systems firm currently employs 16 people and is looking at potential acquisition targets to spread its geographic reach and replicate its success in the North West. Lawrence Gregory, managing director of Saturn Security Installations, who founded the company in 1987, has been working with Business Link Northwest to plan growth for the firm.

He has also joined the Northwest Regional Development Agency’s high growth programme. Mr Gregory said: “Our turnover is already very healthy but my aim is to hit the £1m mark. By working with my Business Link adviser and my high growth mentor I find I am able to better prioritise the ideas that will help me achieve an increase in turnover.” Business Link Northwest growth adviser Nigel Toone said: “The high growth programme offers free support to create and develop new and existing

businesses with high growth potential through coaching from mentors experienced in the business world. “Lawrence was keen to get take advantage of the scheme as he saw the potential to expand his horizons on a professional level and I had no hesitations in putting him forward.” Mr Toone has also suggested acquiring a similar company to Saturn Security Installations in a different region. He added: “This could be a very good option for Lawrence because it will

give him a head start in an area that Saturn Security Installations may not be particularly well-known and accelerate his growth plans.” Saturn and Business Link have also looked at Mr Gregory’s role, as he acknowledge that his hands-on nature made it more difficult for him to look at long-term strategies that would aid growth. They considered the benefits of employing a administrative manager but Mr Gregory decided to look to employ a sales manager to find new business and

look after existing clients – and enable Mr Gregory to focus on Saturn’s development. ● BUSINESSES can access face-to-face support from a Business Link adviser with specialist industry expertise. The service can be accessed by telephone and email from 8am to 8pm, Monday to Friday, and from 8am to 2pm at weekends and on bank holidays. Call 0845 00 66 888, e-mail advisers at info@businesslinknw.co.uk or visit businesslink.gov.uk/ northwest

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ADVERTISING FEATURE

True cost of the budget The financial experts at Coutts break down how the Chancellor’s cuts might affect you to offset tight fiscal policy by keeping short-term interest rates lower for longer. Gilts and sterling are therefore the clearest winners from the budget. The implications for equities and the housing market are mixed.

John Price, Senior Private Banker at Coutts in Liverpool looks at the economic implications of the budget CHANCELLOR George Osborne has delivered the most significant UK fiscal tightening in almost 30 years, announcing swingeing cuts to departmental budgets, cuts/freezes in various welfare payments, a VAT tax increase and a two-year freeze in public sector pay amongst other measures. Although painful, the emergency budget suggests the UK government will bring this year’s budget deficit of 10.1% of GDP under control, thereby avoiding a Greek-style sovereign debt crisis and instead allowing long-term interest rates to stay low. The Bank of England is likely

Investment implications The measures substantially increase the chances that the UK will keep its triple-A credit rating. In particular, the fact that consolidation is being driven primarily by cuts in government spending increases the chances of success in terms of achieving the aim of consolidating the public finances International historical evidence shows that fiscal consolidation is easier to achieve when it is driven primarily by lower spending rather than through tax increases. This should reassure international and domestic investors concerned about the UK’s fiscal situation, helping keep long-term interest rates low and supporting sterling. Investors will also be reassured by the fact that the government is using more realistic growth and inflation forecasts provided by the newly created and independent Office for Budget Responsibility (OBR), when deciding how much fiscal consolidation is needed to stabilise the public finances. Indeed, if the government is successful in consolidating the public finances, the UK could even come to be viewed as a safe

haven for international investors. Bond markets The offset to extremely tight fiscal policy is likely to be extremely loose monetary policy, with the Bank of England set to keep interest rates lower for longer. UK government bond markets should therefore get support from both lower long and short-term interest rates. Sterling The emergency budget is positive for sterling, particularly against the euro where the political risks surrounding fiscal consolidation are greater. Sterling is also still undervalued on a long-term purchasing power parity (PPP) basis against the euro. The implications for sterling versus the dollar are less clear, given the lack of significant undervaluation, but probably still positive for sterling. Equity markets Equity markets will get some encouragement from a one percentage-point per year reduction in corporation tax over four years, gradually bringing the UK corporate tax rate from 28% to 24%. However, this will be offset by weaker growth at least in the short-term from lower government spending, the increase in capital gains tax and an increase in other taxes such as VAT, which could hit consumer spending. The biggest impact on equities could come at

a sectoral level, between these sectors most and least exposed to spending cuts, given that they will not fall uniformly across all departments. Housing The UK housing market should benefit from interest rates staying lower for longer. However, this will be offset by a likely increase in public sector redundancies, which are inevitable given the scale of government spending cuts envisaged. The regions most dependent on government spending will be hit hardest. Wales, the North East and Scotland are the three regions with the highest proportion of the labour force in the public sector, while London has the lowest proportion. The London property market also benefits from being viewed as an attractive place for international investors, suggesting the London property market will outperform other regions. Entrepreneurs The extension of the 10% capital gains tax rate for entrepreneurs to £5m is a welcome sign that this vital sector of our economy will be supported further through these difficult times. Conclusion Although painful, the 2010 Emergency Budget will go a long way in reassuring investors that the government can bring the

sizeable budget deficit under control and stabilise the public finances. Long- and short-term interest rates should therefore stay low, supporting the bond market. However, the price to pay will be slower growth for some years because of lower government spending. Sterling should nevertheless benefit from the UK’s greater deficit fighting credentials, especially versus the euro, against which it is undervalued on a PPP basis, and where political risks are higher. ■ For more information about becoming a Coutts client in Liverpool, contact John Price on john.price@coutts.com or 0151 236 1068 or visit www.coutts.com/liverpool. The information in this document is not intended as an offer or solicitation to buy or sell securities or any other investment or banking product, nor does it constitute a personal recommendation. The information shown is believed to be correct but cannot be guaranteed. Any opinion or forecast constitutes our judgement as at the date of issue and is subject to change without notice.

THE BIG FEATURE

Banking on change

Swedish quartet Abba sang Money Money Money – and that’s also been the cry of small firms looking for bank funding since the credit crunch

BY PETER ELSON

▲ ▲

Stung by public criticism and government censure, the banking industry wants to regain our confidence

THE BIG FEATURE HILE the banks may not have been in a hurry to take the blame for the credit crunch and recession, they have shown a readiness to knuckle down to the new economic order. Whether this co-operation with the government to restructure and agree new financial regulation amounts to an admission of guilt from the banking industry is open to debate. The proof is in the fiscal pudding and Liverpool Chamber of Commerce found far more positive responses in their banking questionnaire than might have been expected by the layman. It seems that British banks are genuinely trying to be more user-friendly than assumed by the public, who were understandably made cynical by the near cataclysmic events of autumn 2008. Liverpool Chamber members were surveyed in the second quarter of 2010 and 63% of businesses said that they felt supported by their bank in the current climate. Only a small minority (6%) of businesses reported they had switched banks in the past year and 16% reported that they are considering following suit – a reduction on the previous three quarters. Over half of those surveyed reported their banking facilities had been recently reviewed. Of these, more than half were renewed at the same level and cost, and 28% were renewed at the same level but at a higher cost. Nearly one third reported that they were asked for more riskrelated information than previously. Some 17% had recently applied for new facilities; of these 61% said that the process was easy, 58% said they got a quick positive response and 47% that they were happy with the result. Only 18% said that their lender had made them aware of a government backed loan guarantee scheme. Some 45% said they would consider this a viable method of supporting their business. In responding to tightening working capital, 45% said that they had cut capital expenditure, 32% made later payments, and 33% made no changes. There were 43% who reported an increase in time taken to receive payment over the past three months. Brian McCann, the chair of the Chamber’s finance committee and director of Vanguard Corporate Finance based at Liverpool Science Park, said: “The responses to our banking questions do support the anecdotal evidence we have from talking with members and from our own experience in working with our clients here at Vanguard Corporate Finance. “The demand for new or increased facilities has been constrained. “In some cases businesses don’t believe they will succeed with an application for new funding and are simply trying to manage within their existing facilities. “To some extent, this does lead to the credit taken from suppliers being stretched, which means that the pressure on cash feeds through the supply chain. “Very few businesses are able to

Noel Edmonds phones The Banker every day in Channel 4 show Deal Or No Deal – a task with which many small business switch banks at the moment. Most banks appear to have responded to the credit crunch by focusing more resource on managing potential problems within their existing customer base and less resource on winning additional customers away from their competitors. “The credit crunch is still having a serious impact on the funding of many small to medium sized enterprises (SMEs) although we are seeing a gradual improvement in the availability of credit, including the availability of funding under the Enterprise Finance Guarantee.” Peter Stoney, honorary senior fellow in economics at Liverpool University, said: “The future

lending environment will improve in the UK as the major emerging markets grow. “For example, China is investing in the Midlands’ car industry and Japan is shaping up. “Lending will follow economic growth. But everything could go pear-shaped if we have a global upset, like an attack on Israel. “The banks are now retrenching and regrouping. “Northern Rock is making in-roads by putting bad loans into a ‘bad bank’ area and seeing daylight with redemption of these loans or writing them off. The recession is over, but the credit crunch is still a questionable situation. Banks are now much more wary of over-lending.”

Fifty years ago, fewer banks were quoted on the stock market. Instead, many were based on mutual principles, seeking to lend to borrowers on the back of money saved by depositors. “Now they’re quoted, which creates pressures and incentives for their management to make profits to improve their shareholders’ returns,” said Mr Stoney. “Therefore the banks are more exposed by taking on financial obligations like credit default swaps and structured investment vehicles, collateralised debt obligations (i.e. secured against properties). “When the system blew up, these sophisticated or complicated

sequential inter-bank lending instruments came onto the wholesale market, which never used to happen.” The Bank of England’s model showed Northern Rock’s behaviour was destined to end in tears. “It existed on such marginal profit rates, dicing with death and in the end it died. The bad loans showed up their fragility,” said Mr Stoney. “The government is now into prudence through macro-prudential regulation.” The government will now restore the Bank of England (BoE) as the chief regulator of the financial system. Traditionally the regulator of

THE BIG FEATURE

No complacency – but much caution North West businesses fear the unknown

BUSINESS confidence in the North West fell to the lowest level since the third quarter of 2009, despite relatively strong growth expectations for the next twelve months. One hundred senior business professionals in the North West were interviewed and recorded a confidence index score of 14.4 in the second quarter of 2010 by the Institute of Chartered Accountants in England and Wales (ICAEW) UK Business Confidence Monitor (BCM). The confidence index for the North West has decreased by 9.9 points from the last quarter, the steepest fall for any region in the UK. In spite of being less confident than the rest of the UK, firms in the North West have relatively strong expectations for growth in key performance indicators. Turnover is projected to rise by 5.4% in the coming 12 months, following a decline of 0.4% over the last 12 months. This is the strongest forecast for turnover growth since the first quarter of 2008. Firms in the North West also expect the steepest rise in sales volumes since the first quarter of 2008, with 5.1% growth forecast for the coming 12 months. A number of house builders in the North West, including Redrow Homes, are predicted to return to profit for the first time in three years, the region’s firms forecast profits growth of 4.4% over the next 12 months. This is the most positive forecast for profits growth since the third quarter of 2008 and follows a contraction in profits of 1.2% over the last 12 months. Melanie Christie, ICAEW North West regional director, said: “The North West results of the latest BCM show that

ICAEW North West regional director Melanie Christie businesses are not allowing themselves to become complacent and remain cautious about the outlook. “The economy still faces significant challenges, many of which are outside of businesses control. “Until prospects for the future become clearer, UK plc is continuing to manage risk, cut costs and not expose itself to potential risks outside its control, leading to a slower than expected recovery. ” Reflecting their region’s status as one of the two least confident regions, businesses in the North West have the lowest expectations for growth in employee headcount of any part of the UK. The number of employees

in the North West is expected to grow by only 0.5% over the next 12 months, compared to 1.1% growth for the UK overall. A similarly cautious outlook for staff development budgets is also expected, with projections of 0.7% growth in the North West – again the lowest of any part of the UK. However, compared to some other regions, the labour market in the North West has held up relatively well over the last year. Headcount has fallen by 1.7% over the last 12 months, compared to a 2% fall for the UK overall. Official statistics also show the employment rate in the North West suffered the smallest fall of any UK region in 2009.

owners will be all too familiar the system, the BoE lost its powers under the former Labour government through the expansion of the role of the Financial Services Authority (FSA). After recent failures, the government will no longer directly regulate the banks. The FSA will be removed, leaving the BoE to govern itself, the high street banks and investment banks. “The banks now play much safer,” said Mr Stoney. “The BoE got to within days of all the cash points (ATMs) failing and the entire collapse of the whole banking system. “All banking is totally interlinked on a global basis,

which is why there’s now all the talk of taxing banks with a levy to bail out any problems. “There will be more regulation of interbank transactions in order to reduce the chances or probability of bank failures. “The German Chancellor Angela Merkel abolished short selling in Germany, which is another device used by financial players to hedge their bets. “The whole hedge fund industry grew like topsy, so Germans are trying to prevent losses in certain circumstances. “Businesses must work harder to prove a good case for getting a loan. There is nothing new in bank failures – remember the South Sea Bubble of 1720.”

North West access to capital tougher THE challenge of access to capital persists for firms in the North West. In contrast to the trend seen in most other UK regions, accessing finance has still been a major problem for businesses in the North West in the past 12 months. One third (34%) of firms in the region report

access to capital poses a greater challenge to their business than a year ago. This is the worst picture for this measure recorded by the Business Confidence Monitor (BCM) in the region, and is up from 29% in the first quarter of 2009 when credit markets froze and the economy

suffered its worst ever quarterly contraction of output. This finding is also not consistent with results from the Bank of England’s recent Credit Conditions Survey, which showed the availability of credit to corporates continued to ease at the start of

2010, with demand for credit by small and medium-sized private non-financial corporations (SMEs) rising more strongly than anticipated. It was also noted in the same report that spreads and fees had widened slightly for SMEs over the first three months of 2010.

THE BIG FEATURE

Steve Sankson, of RBS and NatWest – keen to stimulate small businesses

Is UK’s credit crunch at an Uncertainty means markets are pricing in more risk to cover all eventualities, says leading DISAGREEMENT over whether the credit crunch has ended still plagues the banking world. As a result, says Steve Sankson, RBS and NatWest regional director of business & commercial banking in Merseyside, markets price in more risk. “There seems to be disagreement over whether the credit crunch has ended,” he said. “The events of the last two years have left everyone nervous, not only about the stability of financial markets, but also about the sovereign debt problems we are seeing in Europe and the scale of government deficits in many countries. “Naturally, this means that markets price in more risk, volatility increases and uncertainty returns in certain areas. “The measures taken by banks

and governments across the globe mean banks are now much better capitalised, have access to different markets and have more certain and stable funding structures.” In spite of the markets’ volatility, Mr Sankson does not expect the issues which caused the last credit crisis to resurface. “Banks are opening up their funds to small and medium-sized businesses (SMEs),” he said. “Credit is available to businesses which can demonstrate they can afford to repay the debts they take on. “What has changed is that businesses will need to be able to show how they are trading in the current climate by having an appropriate level of up-to-date management information. “This doesn't have to be costly, or, indeed, even complex – in most

cases, internal figures are fine. But it is not unreasonable for a lender to want to assess the current trading performance of a business they lend money to.” RBS and NatWest are committed to the SME sector and have provided a number of tangible commitments to demonstrate this, he said. “For example, the bank’s SME Customer Charter, introduced last November, gives business customers the chance to renew their overdrafts at the same or lower rate for a further 12 months. “It also introduced a cap of 1.5% on overdraft and loan arrangement fees for businesses with a turnover of up to £25m, and extends the NatWest offer of two years’ free banking to RBS customers. “Furthermore, in March, we agreed with the Government to

make available £50bn in gross new facilities for business customers during 2010-11.” Credit insurance tightened across many sectors during 2008-09 due to the worldwide economic uncertainty. However, government schemes to provide “top-up insurance” did emerge. “Via RBS Invoice Finance (the bank’s invoice discounting arm), we could provide credit insurance alongside funding to many of our customers, despite the market turbulence. We saw a significant increase in numbers of companies using invoice discounting specifically to obtain credit insurance on their customers. “Credit insurance has not disappeared. Many insurance companies still provide credit insurance, and our own Invoice Finance businesses provides a

significant number of businesses with additional credit protection.” Banks are in the risk business, said Mr Sankson, and lending money carries a risk of non-repayment. “That has always been the case. In more volatile or depressed economic conditions, these risks rise, but that is part of the cycle. Our attitude honestly hasn’t changed. We judge a business on its merits and its ability to repay the debt. “We account for sector trends and outlooks, the quality of management, the profitability and cash generation of a business before we lend. “All these factors contribute to our view of ‘risk’, and I think it’s right that they should. “If anything has changed, it’s our desire to be closer to our customers, so we understand

THE BIG FEATURE

Companies in need of loans urged to show clear plans Banks ‘keen to support businesses in the tough environment’

end? Mersey banker better the risks they face and are better placed to help if things do change.” RBS and NatWest has led the way in the region, he claimed, providing over 60% of all Enterprise Finance Guarantee Scheme (EFG) loans approved and drawn. It has agreed loans worth £67.15m, of which £59.07m have been drawn. “It is a very useful scheme and has proved an invaluable resource for SMEs that are looking for additional working capital or investment funding,” he said. “RBS and NatWest has issued a comprehensive customer charter that gives a very specific price promise. “Our maximum arrangement fee is 1.5%, and there will not be any increase in the overdraft margin, provided the risk has not deteriorated.”

BANKS are opening up their funds to small and medium-sized businesses – but with specific caveats attached to any loans. Brian Colquhoun, Yorkshire Bank’s North West regional director, said: “We’re entering another crucial stage of the economic recovery. “On the whole, banks are keen to support businesses in what remains a tough environment. “From a Yorkshire Bank perspective, we’re as keen as ever to support trading businesses that have strong management and clear plans for growth. “From a customer point of view, management teams are emerging stronger from the experience of the downturn. “They’re looking to create lasting relationships with a partner that has the ambition and vision to provide a solution to financing needs. “Banks with clear appetite to lend will benefit from this.” For their part, banks need to be ready to support businesses that have quality growth opportunities. “That’s why Yorkshire Bank launched its Investing for Growth initiative in May. “Investing for Growth offers a dedicated planning service and a flexible approach to investment finance, including payment holidays or interest-only loan periods,” said Mr Colquhoun. “Our aim with this initiative is to help support business cashflow while easing the customer’s debt commitments. “We’re responding to growing customer demand for flexible support as business confidence returns.” Mr Colquhoun is fairly confident about the future lending environment and feels there are many lending opportunities. He predicts a strong period of refinancing of good business. “In the immediate future, we're seeing good growth and demand for products such as invoice discounting and asset-based lending. “With balance sheets weakened and property prices depressed, real value can be driven from facilities secured directly against the asset being funded, removing the need for personal security to be pledged. “The recovery is presenting numerous lending opportunities in the form of

Brian Colquhoun – banks want to create lasting business relationships businesses looking to start a new relationship with a funder, a requirement to finance increased activity, and the opportunity in the current economic conditions to make acquisitions. “The key growth area will be fatigued management teams looking for a solid longterm bank partner that understands their financing needs and can provide a tailored solution.” This month, the Department for Business Innovation & Skills released figures for the Enterprise Finance Guarantee Scheme. Nearly £1bn has been approved and more than £800m drawn since the EFG scheme was introduced, just over 12 months ago. In the North West, £111m-worth of EFG loans have been approved across all banks, and £96m drawn to date. The Confederation of British Industry (CBI) is enthusiastic about the scheme.

John Cridland, CBI deputy director-general, said: “We welcome the proposal to extend the National Loan Guarantee scheme to more medium-sized businesses. This would help improve access to finance as demand recovers.” One of the UK’s leading asset-based finance providers, Lloyds TSB Commercial Finance, has given its support to North West businesses by enhancing its Client Charter and launching its first Introducer Charter for the professional community. The revised Client Charter now enables prospective clients with a turnover of up to £15m to obtain an indicative lending decision within 48 hours and the funder pledges to match any competitive offer. Lloyds TSB Commercial Finance’s Charter offers the option to conclude a facility at any time, by giving 28 days’ notice without incurring termination fees.

Banks dismiss critical ‘it’s business as usual’ report THE British Bankers’ Association (BBA) has robustly defended criticisms aimed at banking in an influential report. The BBA believes the banking industry already has far better ways of tackling problems than those set out in the Which? Future of Banking Commission report. The industry has made many significant changes to the way it operates, and the far-reaching nature of

regulatory change means there has not been a return to “business as usual” as the report implies, it said. Action already taken extends not only to banks holding more, better quality capital resources, but to new requirements on the cash they need, governance, risk control, accounting, conduct of business and enhanced supervision. Angela Knight, BBA chief executive, said: “Banking is

integral to the modern global economy and, as UK banking is truly international, effective reform needs to work across borders. “UK banks are a major export earner and pay taxes locally. Our universal banks assist investment and help the economy grow, so it is vital decisions taken here do not talk the country down or damage our recovery. “We must guard against

making it more difficult to do business in the UK as financial services are a major contributor to GDP, employment and tax. “Competition in the high street has driven prices down and has provided excellent value for individual customers and businesses alike. “Change is necessary, with banks at the heart of reform. Banks are very conscious of their responsibility to society.”

THE BIG FEATURE

Unemployment ‘still not at its peak’ Top accountant warns there will be more necessary pain before any beneficial gain THE good news, according to one of the North’s top accountants is that the banking system didn’t – and won’t – fail, in spite of the horrendous economic turmoil of the last year. The bad news is that private sector unemployment has yet to reach its peak over the next year. Jonathan Hurst, chairman of KPMG North, said: “I think there’s a difference between the credit crunch and a potential double dip. “The big question regarding the credit crunch was would the banking system fail? “It didn’t and it wouldn’t. “Although the credit crunch has eased, it’s still difficult to get credit, as banks are not assessing risk in the same way.” The risk of a double dip happening is less than 20-50%, and probably towards the bottom end of that range, he believes. The avoidance of a double dip is driven by taking into account three major factors, said Mr Hurst. Firstly, the austerity spending cuts which will come have not just a direct impact, but along all of the supply chain. Secondly, the sovereign debt issues of developing European countries are not yet quite played out and will have an impact. Thirdly, unemployment in the private sector has not yet hit the levels which people expect, and it will go up. “The recovery is fragile and we’re not out of it yet,” said Mr Hurst. “However, we have got some really good signs; for example, no bank has gone bust, and they are forced to keep lending. “At last we’ve seen far more merger and acquisition activity for the first time in two years. “It’s now going to be the better asset managers and teams which come to market first. “Private equity has got a hole in its pocket with money to burn and funds to utilise,” said Mr Hurst. But the 90-10 (as in percentage loan to shares or equity) model is gone and it is moving towards 50-50 or even 40-60, he said. The big issue for the banks is the Special Liquidity Scheme (SLS), whereby £185bn was lent to UK banks by the government and to be repaid by the January 1, 2012. “All those banks are in the process of agreeing plans with the Financial Services Association for repayment, but I wouldn’t be surprised if there is slippage,” said Mr Hurst. Basel 3, the plans on international banking laws and regulations to set the amount of funds banks need to put aside to guard against major bank collapse, will bring in more stringent capital

requirements (although the amounts have been pared down after bank lobbying). “So we could have a situation where the first recession is over but could double dip, then the SLS has to be repaid, capital tightens and banks’ level of capital reserves are regulated,” said Mr Hurst. “There is a natural tension and we’ve not found the equilibrium yet. “Some smaller businesses will get knocked back when needing to be financed correctly if their approach is not right. “Their plans must be simple and clear, with professional advice on presentation.” Plans and figures have got to be rocksolid and controlled by a quality management team, he advises. Borders bookshop and Ethel Austin went down partly because their equity capital model was not quite right. Problems included being over-retailed (too much square footage) and over-rented (paying too much for premises). “Therefore, the business models were exposed in the recession and this would be the reason why credit was not available,” said Mr Hurst. “Had their models been better, they would have been refinanced.” The overall interest bill to “UK plc” has not changed much over the last year, as LIBOR reduced variations significantly. LIBOR is the London Interbank Offered Rate, which is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the wholesale money market. “Banks who have shareholders to manage are getting their money back in three areas,” said Mr Hurst. Firstly, their margin over LIBOR (interest rate on debt); secondly, the arrangement fees on maintenance monitoring; thirdly, the “tenor” of the loan. “In the heady days, the latter would have been, say, five years; now it’s only two years,” said Mr Hurst. “So, as soon as you refinance, you’ve got to refinance again. “The attitude to risk has changed and rightly so, with a lending culture based on, for example, property. “The loan-to-value (LTV) was totally predicated on asset value. “While that’s a factor, it has to throw up cash, so the quality of tenant, the covenant and servicing the loan is crucial. “One of the real gripes is there is no long term certainty, which is really a key factor. Until that’s in place, you don’t have the certainty to make the business decisions. “The future lending environment is going to get steadily better, but we will not suddenly get liquidity booming and huge lending.”

Optimistic: Jonathan Hurst, chairman of KPMG North

Small and medium-sized businesses blame banks for economic woes

Phil McCabe

MORE than two-thirds of the North West’s smaller businesses want to see far tougher regulation of the banking industry, whom they blame for the economic crisis, according to a new survey. In research by the Cheshire-based Forum of Private Business, 68% of the region’s small and

medium-sized businesses (SMEs) said there must be stronger regulation of banks and utility companies. After the priority of tackling the debt crisis, this emerged as the second most popular concern, finding favour with 68% of business owners polled. This compared to 62% across the wider UK. Forum spokesman

Phil McCabe said: “Business owners in the North West seem particularly keen to see stronger regulation of the banks. “This perhaps shows that they have had particular problems with accessing credit through the recession and are especially keen to see the banking industry being held to account for the

financial crisis.” Tax simplification was the third most popular priority for the new Government among small firms in the North West, with 67% of respondents listing it as a concern. “This research shows most small business owners in the North West appreciate the need to tackle the UK’s record public debt and

are behind the new Government’s efforts to do so,” said Mr McCabe. “”usiness owners will suffer some pain from big spending cuts, but it’s important that crucial small business support services aren’t sacrificed in the drive to cut costs, as SMEs will be crucial to Britain’s economic recovery.”

PROFESSIONAL SECTORS SECTOR

LEGALLY

SPEAKING

With Derek MillardSmith, associate and trading standards specialist at Hill Dickinson

I AM the owner of a medium-sized business and am concerned that laws rushed through by the last government before the general election could result in me risking investigation by Trading Standards. Could I be facing criminal proceedings for offences that didn’t previously exist?

THERE were a number of laws passed in Gordon Brown’s six-day “wash-up” (the period between a general election being announced and the Queen proclaiming the dissolution of Parliament). To prevent unreasonable laws being passed hastily, their becoming statute requires co-operation from both the Houses of Commons and Lords. While it is right that you are concerned to know the detail of the new laws, it is unlikely that there has been a “wash-up” – “stitch-up”. The new Government will review all legislation and have vowed to remove unnecessary “over-regulation”, but, due to the reasonable ideology of the new laws (some of which are outlined below) they are likely to remain relatively unchanged with most of them already in force. Most of the Digital Economy Act 2010 came into force on June 8, 2010; it extends copyright licensing and creates measures to deal with online copyright infringement, while also increasing the maximum penalties for copyright offences. It enables regulations to allow court injunctions to disable access to websites that infringe copyright. The act

also restricts the age for purchasing of video games to 12 years or above. Most of the Crime and Security Act 2010 came into force on April 8, 2010; it makes it an offence for the owner of an air weapon (airgun) to fail to take reasonable precautions to prevent it being used by a person under 18. Clamping companies must now be licensed; if not, they will be committing a criminal offence and licensing authorities will be able to restrict the sale and supply of alcohol between 3am and 6am. The Sunbeds (Regulation) Act 2010 is likely to come into force on April 8, 2011. This Act followed the sad case of 10-year-old Kelly Thompson suffering 70% burns after 15 minutes of unsupervised use of a coin-operated sunbed in a tanning salon. It will be an offence for the owner of a sunbed business to offer, allow or fail to prevent a person under the age of 18 from using a sunbed on the business premises.

‘Remember newlaws arenewto Trading Standards, aswell’

Conclusion These new laws, among others passed, create new criminal offences that didn’t previously exist. Local Trading Standards are the first port of call for any legitimate business concerned as to laws that apply to them. They can and should be approached on a without prejudice basis to provide assistance as to legal compliance. Businesses must remember that these laws are new to Trading Standards, too; they must get to grips with their increased enforcement burden, so, provided you make sure you are aware of your obligations and are duly diligent in trying to comply, then you need not be concerned, should the inspector call.

Change at the top Accountants’ president named, writes Tim Gleeson JAN McDERMOTT, owner and founder of Jan McDermott & Co, is the new president of the Liverpool Society of Chartered Accountants during it 140th anniversary year. She takes over from Michael Sale, of Liverpool-based Kemp & Co, who, in 2009/2010, led the local society. Ms McDermott is a longstanding Liverpool Society committee member, and is also a past president of the Liverpool Chartered Accountants Students Association. Her main role will be to provide support for the 4,264 members of the oldest local society in the country and one of the founding societies of the Institute of Chartered Accountants in England and Wales (ICAEW). By her side will be Martyn Best, co-founder of Paver Smith & Co, and vice-president Paul Christian, audit and advisory director at global accountancy firm PricewaterhouseCoopers. Ms McDermott said: “I am incredibly proud to be able to represent the Liverpool Society of Chartered Accountants. “During my term in office, I hope to raise the profile of the Institute and the Liverpool Society across Merseyside by ensuring that members’ views are promoted effectively on accountancy and business issues. “I also aim to build on the excellent work of the Society over recent years by continuing to deliver high-quality events to help support local members whether in practice or business, and especially those affected by the recession.”

Jan McDermott, new president of the Liverpool Society

Liverpool Society of Chartered Accountants vice-president Paul Christian, president Jan McDermott and deputy president Martyn Best

THE BIG INTERVIEW

Keep on trucking BY BILL GLEESON

▲ ▲

Steve O’Connor sold his haulage firm for £23m. So why did he choose to stay at work when he could have enjoyed the easy life somewhere sunny . . . ?

THE BIG INTERVIEW STEVE O’CONNOR CONTINUED FROM PAGE 17 WO months ago, Widnes haulier Steve O’Connor was named Businessperson of the Year at the Liverpool Daily Post’s annual Regional Business Awards. He was given the accolade in recognition of the way he had built the family business, O’Connors, into a major force in the trucking world before selling it to docks firm Westbury for £23m in 2007. Westbury, including O’Connors, was shortly afterwards sold to the stock market-quoted transport firm, Stobart Group. Despite being in receipt of such a hefty windfall, Mr O’Connor, who also owns Widnes Vikings Rugby League Club, chose to stay at his desk in the role of managing director of Stobart Ports, taking a 4% stake in the group’s shares. The Carlisleheadquartered group then gave him the job of overseeing the development of its Mersey Multi-Modal Gateway (3MG) at Widnes, in the shadow of the town’s Silver Jubilee Bridge. O’Connor said: “I would not have done that if I did not think there was an enormous opportunity going forward. I could have walked into the sunset. There’s a genuine momentum and enthusiasm and plenty of potential for us to develop this business. “This is not just a job to keep me out of mischief. It is exciting. It’s given me a new lease of life – it’s reinvigorating.” O’Connor was born and brought up in Widnes, the youngest of four brothers and one sister. He attended St Joseph’s High School and originally planned to become an architect or a draughtsman, but his elder brothers showed little interest in their father’s haulage business – which was at that time running four trucks – and so at 16 he entered the firm, helping with the administration. In the spring, Stobart Ports announced that it had secured Tesco as its first tenant of the 3MG site at Widnes. But they couldn’t just build a Tesco warehouse. The land needed assembling and a 25-acre mound had to be flattened first. “That meant we had to shovel away 400,000 cubic metres of rubble,” said O’Connor. The rubble from the mound was used to fill in a hollow in the adjacent land acquired in 2008 to accommodate the firm’s hugely ambitious expansion plans. Using the rubble in this way fits in neatly with the group’s policy of letting nothing go to waste. Tesco’s new 3MG warehouse sits where part of the mound used to be. The supermarket’s facility occupies 540,000sq ft of space. As big as it is, the group hopes that eventually it will form just a small part of a 1.5m sq ft development of distribution space at the 250 acre site. Tesco has planning permission already to expand its unit by another 160,000 sq ft at any time in the next 10 years. O’Connor said: “That might happen sooner rather than later. There is an appetite for expansion.” The aim now is to use Tesco to lever in other retailers and create a distribution hub like that at

Daventry, in the West Midlands. To do that, the firm needs to create facilities that will be attractive to retailers. O’Connor explained: “We are looking at establishing a vehicle maintenance unit. The retailers may see a value in a vehicle maintenance unit on this site. It takes away some road miles. It prevents them needing to go elsewhere to be repaired.” But there is a long way to go, if Widnes is to match Daventry. That site has 16 retailers, plus

four major logistics players. O’Connor believes there is a powerful logic that can entice retailers to cluster together in a single large site, rather than having their separate locations. He said: “There is value in collaboration. That’s the Stobart model. It revolves around sharing vehicles. Some retailers need to use vehicles in the morning, others in the afternoon or evening. “Stobart vehicles are not branded with one or other

retailer’s logo. They can take goods from a retailer and collect goods from another retailer on the way back. “It’s a pay-as-you-go model and they share the costs. “But it wouldn’t work to have a Tesco-branded vehicle moving goods for another supermarket.” Stobart, which operates 1,900 vehicles, works hard to ensure that as few as possible return empty from a trip. He said: “About 84% of our travel miles are laden, whereas

the industry as a whole struggles to reach 60%. “We share the benefits with retailers. They get the benefits without having to put the work in. Their main effort goes into buying and selling the products they are retailing. “If we can put the sharing of vehicles together without affecting their brand values, they can do it for cheaper. For example, we work for United Biscuits and Nestlé. We can carry similar products the other way.

THE BIG INTERVIEW STEVE O’CONNOR

Steve O’Connor wins the Business Person of the Year award at the Daily Post’s Regional Business Awards in May

Steve O’Connor at the Mersey Multi-Modal Gateway site in Widnes, above; and, below, addressing the crowd from the pitch at the Stobart Stadium Halton – home of his beloved Widnes Vikings club

“The costs of distribution have been rising. More and more goods are travelling globally.” As well as lorries, Stobart operates freight train services to and from the south coast of England and around Europe. In total, the group runs nine services a day. Trains arriving at Widnes are carrying South East Asian manufactured products, mostly clothing and electrical goods. Rail freight containers are lifted off the back of trains by large gantry

cranes that straddle the tracks and a parallel roadway. O Connor adds: “Retailers need to make sure they are utilising us as much as they can to keep their costs down. These goods come through Felixstowe and the Thames Estuary, then they come through to us by rail. Only the last leg is by road. “The retailers see consumers starting to take note of the environmental impact of bringing products to supermarket shelves. “We have 1,000 lorry

movements a day at Widnes. For every one lorry movement, there are 350 cars driving goods away from supermarkets.” “We have a Valencia-to-Barking train service that brings in fresh produce such as salad and citrus fruits. It’s picked in Spain on the Tuesday, leaves Valencia on the Wednesday, arrives in Barking on the Friday and is bought in the shops in the South East on the Saturday and Sunday. “It is currently once a week, but is set to rise to three times a

week. In Widnes, we currently move 1m cases of fresh product each week. Two-thirds of our building is kept at one degree centigrade, the other third at 12 degrees.” About 500 farmers and growers bring their produce directly to Tesco’s warehouse at 3MG. It leaves in wheeled cages which already have the supermarket aisle number on them. “It’s military precision. “It’s a 24-hour, seven days a week operation.

“All the jobs we’ve created are sustainable. “The smart added-extra ingredient we offer here is that we take waste food back from the supermarkets to this site which then goes into a biomass plant and the energy from that biomass plant is used to power the cold store. That building is only seven metres high. “We’re putting £30m into the biomass business. We plan a series of biomass plants around the country. Vehicles that would otherwise be empty bring biomass waste back here.” The developments at Widnes reflect the fundamental changes affecting transportation. Stobart currently offers 8m sq ft of warehousing space. It operates a port at the nearby Weston Point docks, on the Manchester Ship Canal. It even owns an airport at Southend, which has received £100m of investment in recent years, money used to build a control tower, a new terminal building and runway extension. The firm hopes to have 2m passengers flying through it when it opens in 2012. O’Connor said: “Southend was like Liverpool’s JLA 20 years ago. We want to develop air freight services there so we can become more multi-modal, offering, air, sea, road and rail.” O’Connor added: “We are breaking old ways of doing business.” O’Connor believes the UK needs more railway infrastructure because the railways are every bit as congested as the roads. The other big development he would like to see is the creation of in-river post-Panamax quays at Seaforth. At the moment, the world’s biggest vessels, ploughing the seas between the Far East, call in at Le Havre, Zebrugge and Rotterdam, but not Liverpool. Goods are then transferred to smaller ships to be brought here. “That adds time to the journey, and adds costs, too. Any encouragement to send freight direct to the North West would help. It would encourage more people to move to Widnes. A lot would still go to the South East, but three or four vessels a week coming here would be good news.” Another part of the grand strategy is to try to replicate the success of a major distribution hub at Daventry in the Midlands. “We need to persuade more freight firms to use the North West, rather than the East Midlands. We need a joined-up freight strategy. It’s gone off the agenda in the last 18 months. We need to find a way to keep supply chain management sector and take costs out. “There’s a great opportunity with the joined-up thinking that’s going on. “We are creating sustainable employment where the borough council is keen to tackle deprivation. The Tesco deal has created 600 new jobs now, and that will be 1,200 in 12 months’ time. Stobart is creating 260 jobs, and that’s before the others in the chain, such as caterers, are included. “We are hoping for the cluster effect of Tesco. They are the anchor client and hopefully others will follow. It’s logical the next client will follow.

CONTINUED ON PAGE 20

THE BIG INTERVIEW STEVE O’CONNOR

Tackling some big issues: businessman and Widnes Vikings Rugby Club owner Steve O’Connor

CONTINUED FROM PAGE 18 “We have three different retailers speaking to us at the moment. They are very keen but this sort of thing is a quantum leap and it takes them out of their comfort zone. It takes some time to get it right.” The new jobs are very welcome in a borough that has seen its fair share of job losses in recent times. These include 600 jobs that may soon be lost if, as expected, B&Q leaves the borough for Swindon.

“That was really disappointing,” said O’Connor. “B&Q were in old buildings which were not fit for purpose, similarly Tesco at Middleton. “Therefore, new buildings make the difference. We need to keep up to date with our distribution space in the Liverpool City Region. We need to stay up to speed with the right quality of space.” “B&Q’s centre was an inappropriate facility. It had vast floor space but it was not good for

distribution and the economies of scale of having four facilities consolidating into Swindon swayed them. “It’s quite a challenge. There’s a lot of retailers out there, but you can’t work with everybody. “There’s a greater sense in the last two years that they don’t compete on the distribution bit, but do so on the shelf, and therefore there is more willingness to accept a holistic approach to distribution.” O’Connor claims that Stobart’s

brand has a high level of recognition. He cited a recent study which placed Stobarts just behind mobile phone group O2 and ahead of Virgin Atlantic as the 23rd most recognised brand in the UK. “The Eddie Stobart name had about 97% recognition from people in the transport sector and 94% recognition from people who are not in it,” he said. “The brand is very valuable at opening doors.” O’Connor is heartened by the

backing he has had from the Stobart people since they took over the business. “When Stobart came along, they gave me the comfort of knowing that I was very much part of the future here,” he said. “When you first talk to people, you have to convince them about the dream and I think they have quickly understood my vision for the business. “They told me to carry on with what I am doing, and have given me the freedom to do it.”

www.investsefton.com

Taking your business to Another Place

ECONOMIC

DEVELOPMENT

IN ASSOCIATION WITH

No.1 Atlantic Park provides 46,000 sq ft of Grade A office space

Weathered by the storm

Sefton’s iron men aim to avoid lasting damage from the effects of the harsh economic wind BY ALEX TURNER IT IS five years ago today that artist Antony Gormley unveiled his 100 iron men on Crosby beach. Originally planned to continue their global voyage 15 months later, heading to New York, the artwork has now become a permanent feature on the Sefton coastline. The passage of time is marked on the statues, becoming weathered with every rising and ebbing tide. Looking out to sea, the iron men have watched the ships coming in and out of the Port of Liverpool carrying slightly less cargo in each of the last four years.

The port handled 33.78m tonnes when Another Place was installed in 2005. That became 33.55m, then 32.26m and 32.20m, before the impact of the recession hit the sector and Liverpool’s volume dropped 7% in 2009 to a decadelow level of 29.89m tonnes. However, Sefton Council’s assistant director for regeneration, Mark Long, is keen to emphasise that the short-term economic problems don’t detract from the borough’s continuing advantages. He said: “We are in the middle of a recession and that’s having an effect. “Sefton has the natural assets –

the coast and the countryside – the locational advantages, the port next to a big city. We are a bit of Europe that faces the Atlantic. “We have still got those advantages. “We are a reasonably resilient borough, we have the people, place and the assets to do that. “Our forecasts are that it will be a period of jobless growth in the next three to four years. There will be growth.” But there continues to be much uncertainty about what will happen in the future, with considerable changes being driven by spending cuts enforced by central government affecting

existing and planned schemes – a situation that will almost certainly be exacerbated by the details in the spending review that will be announced in October. In a report to Sefton Council, its planning and economic development director, Andy Wallis, said: “The landscape for employment and skills has shifted rapidly over the lifetime of our local programme, and there has been fundamental change to the machinery of government. “The dissolution of the Learning and Skills Council, the transfer of 14-19 duties to local authorities, the expansion of Jobcentre Plus capacity in

response to the hike in benefits claimants and the end of transitional arrangements for Merseyside to access European funds are only some of the major shifts which has left the way forward uncertain. “The new Government has stated there will be further significant welfare-to-work reforms including the end of Future Jobs Fund, the creation of a single work programme replacing the New Deal and other contracted provision, and simplification of the out-of-work benefits system.

CONTINUED CONTINUED ON ON PAGE 24 25

ECONOMIC DEVELOPMENT SEFTON

TOTALLY

FRANK

Frank McKenna is the chairman of Downtown Liverpool In Business

The business club with influence! THE decision of the new Labour administration at Liverpool City Council to order an independent review of its economic development activities, including the work of Liverpool Vision and The Mersey Partnership (TMP), is the latest in a series of high-profile announcements that have been made at local and national government level which endorse the policy positions taken by Downtown Liverpool. In the space of a month, we have seen Liverpool’s new council leader, Joe Anderson, take on the role in a full-time capacity, something we have advocated since 2004. We also called for a “Business Champion” to be appointed to the council executive six years ago; an aspiration now met by the proposal to have a private sector representative on the city council cabinet. On the back of our successful campaign to stop the introduction of evening car parking charges in the city centre last year, the business club with attitude is quickly establishing itself as the business club with influence. Nationally, too, with proposals for elected mayors in England’s major cities; and the coalition government’s business secretary articulating the view that the Northwest Development Agency does, indeed, have a future, Downtown policy is being endorsed. On the issue of the Business Cabinet member, may I explain my reasons for ruling myself out of the job. While DLIB obviously welcomes this move, it would be wholly inappropriate for me to take on the role. Downtown will have a

positive relationship with the council, but I believe it is essential that we should sit outside of the council’s official structures, enabling us to maintain our independence, and continue to constructively criticise when the need arises. I am surprised that leading figures from other business organisations have not taken the same view, but that is a matter for them. Personally, I would like to see a business representative who could command respect from across the business community, and who has to run her or his own business on a dayto-day basis; and has the scars to show from running and managing a private enterprise at their own risk. That said, I will support whoever is selected, and once again celebrate another tick in the box for Downtown’s change agenda. One of the big issues they, and the new administration, will face in the coming months is the thorny issue of procurement. For all the millions of pounds that have poured into Liverpool from European funds and government projects, there has been a real difficulty in ensuring that Liverpool people and Liverpool businesses have benefited directly. The rules and regulations governing procurement have been used as an excuse for this, yet, in other places, most notably Salford, there has been genuine inclusion of local labour and the local private sector in work undertaken. If they can find ways to make the rules work for their own locality in other parts of the region, why not here? That is the next big issue that Downtown will be turning its attention to, so watch this space.

IN ASSOCIATION WITH

Workers avoid worst of job cuts UNEMPLOYMENT has risen more slowly in Sefton than the rest of the UK, despite leaping 80% in two years. The number of people claiming jobseeker’s allowance (JSA) rose sharply throughout the second half of 2008 – in line with regional and national trends – but the relative increase in Sefton has remained significantly lower. But the number of JSA claimants per job centre vacancy in Sefton has risen, and stayed around 10 for the last year, spiking at 19, in January, 2010.

House prices back to 2005 level SEFTON’S housing market has faced a turbulent few years. Data from the Land Registry shows that average house prices, in April, 2010, were almost identical to those of April, 2005 – £134,271 compared with £135,423. The period in between has seen huge changes, with house prices peaking at £154,757, in May, 2008, falling to £127,831 just 11 months later. Prices across England and Wales have also fluctuated, but, at £165,596 in April, they are more than £8,000 higher than five years ago.

‘DLIB is establishing itself as the business club with influence’

Borough’s output falls behind THE gap between the economic performance of Sefton and the rest of Merseyside has widened in five years. The most recent measurement of gross value added (GVA) per head – a measure of economic output – in 2007 was £12,017. This was 85% of Merseyside’s figure – £14,155 – and 59% of the UK average, of £20,430. However, five years earlier, Sefton was achieving 92% and 65% respectively, and had maintained these levels during the five previous years.

ECONOMIC DEVELOPMENT SEFTON

IN ASSOCIATION WITH

BOOTLE GLAMOUR STEPH LAVERY, left, has just opened beauty salon Glam Rock Studios, in Bootle, which offers hair and nails styling and treatments. Glam Rock has been financed with parental, but no public, support – and Ms Lavery has plans to cut a swathe through the established ranks. She describes her ambition as wanting to “build a bit of an empire really, so people can just come into one place”.

CONTINUED FROM PAGE 23 “On the demand side, the Government is reducing public expenditure on industrial investment and housing, allowing for the abolition of RDAs, and cancelling major infrastructure contracts.” Working to support businesses through their difficulties has been a priority, with events and direct activity providing advice and information. “Our strength in Sefton is our raft of SMEs,” said Mr Long. “90-95% of businesses have less than 250 employees. “That’s where most of our

activity goes on. We have been investing quite heavily in reaching those businesses. “The Sefton Economic Forum, which meets three times a year, regularly has 150-plus attendees. “We have bolstered that with the annual Sefton Business Survey. Last year it had 880 responses, which was fantastic, and we expect that to be repeated when we do this year’s survey in September. “We asked businesses where it was hurting and they told us. From that, we have held two response events, which have gone really well, with more than 100 attending each one.”

The events form part of the response to the economic difficulties, and they also support the longer-term work that goes on through the council’s business support function, Invest Sefton. The agency is based in the investment centre in Bootle. Mr Long said: “We are meant to come over as someone who is there to help businesses. We work closely with Business Link. “We concentrate our efforts on particular areas, especially the deprived areas and those with an entrepreneurial gap.” “Our biggest project has been Stepclever,” he said. “It has just been given a contract extension to

the two years to March, 2012. I think it will be a major plank for the economic renewal of that area.” Stepclever is part of regeneration efforts in six wards, four in North Liverpool and two in South Sefton – Linacre and Derby. The £21m programme, which is funded by the Local Enterprise Growth Initiative, has three main objectives – to increase entrepreneurial activity, to support businesses’ sustainable growth and reduce the failure rate, and to attract investment. A mid-term review of Stepclever by economic

consultants Regeneris found the gross impact had been to increase the total turnover of the firms it assisted by £22-26m, which generated additional profit of £3.5m-£4.2m and created between 1,450 and 1,730 additional jobs. Mr Long said: “The review points out that Stepclever began closing the gap with the rest of Merseyside at the top of a 10-year boom, and is now attempting to close the gap at the bottom of the world’s worst recession for 80 years. “Clearly the credit crunch and economic downturn have constrained the growth of new

CONTINUED ON PAGE 26

ECONOMIC DEVELOPMENT SEFTON

IN ASSOCIATION WITH

4M SOUTHPORT HAS £9 Y SEASIDE ECONOM

ide tourism SOUTHPORT’S seas the town’s to 4m £9 tes contribu -largest seaside economy – the eighthand Wales. nd economy in Engla of 5,300 jobs A year-round average by seaside ed ort pp su tly ec were dir according to tourism in Southport,ield Hallam eff Sh researchers at Regional University’s Centre for search. Re l cia So d an ic om Econ Tourist ide as Se e Th , ort The rep les, argues Wa d an nd gla Industry in En figure is s job h hig that the relatively tors. fac er oth by ed nc influe ggest that It said: “The figures suthe list on up h hig Southport is er is part of its because its retail off pulls in visitors d an al, pe ap ide seas other from Merseyside and surrounding areas.” % of all It estimates that 39 d 13% of all tourist-related jobs andirectly jobs in the town were tourism. supported by seasiders rejected the The report’s autho uthport was idea that because So purely for ed lop ve de lly “origina r than from a seaside tourism rathe ttlement . . . it se tal as pre-existing co whole of the the t could be argued tha be attributed to ld ou sh t en ym emplo tourism.” years, other They added: “Over thealongside up sectors have grown onomies of the tourism so that the ec wholly dependent towns are no longer ne. alo r cto on this one se universities “These days, there aregovernment ls, and colleges, hospita firms and offices, manufacturing ctor businesses countless service se s independently job that support local of seaside tourism. s presented in “What the estimate extent to which this report show is theremain directly jobs in seaside towns tourism.” dependent on seaside

Southport has the eighth-largest seaside economy in England and Wales, which supports 5,300 jobs

CONTINUED FROM PAGE 25 starts, restricted access to credit, slowed down investment, and created tough external trading conditions.” During the first two years of the programme, the business population had grown slightly, by 0.4% a year, although this compared with a 7% fall across England. Mr Long said: “We have created about 250-300 businesses in a couple of years, that’s in an area that’s been written off in terms of entrepreneurial activity. “We are putting a lot of effort in reaching people with entrepreneurial ambitions, motivating them and helping them through the first steps.

“First of all, we provide financial incentives for businesses to get engaged. Then they get to work with a business adviser on the longer-term needs as well as having access to specialist support.” Some of the council’s focus has had to shift from entrepreneurship to employment as the number of people claiming jobseeker’s allowance increased by nearly 4,000 people in two years, to a peak of 8,856 in February. Mr Long said: “We have targeted most of our employment support at the deprived communities. The JobCentre aren’t geared up enough – essentially, they are policing benefits. “We wanted something that gave them more time and had

funds they could tap into to help them get into work and then stay in work.” One aspect of the recession has been that it has hit the white-collar workforce proportionately harder than in previous economic slowdowns. Mr Long said: “While the impact of the recession was delayed and at a lower level, the proportionate increase has been in Southport – the middle-class shop and office jobs. It has created a new set of demands for us, as we have previously tended to concentrate on people with multiple barriers to entering employment.” Sefton only has a small manufacturing sector, accounting for about 8% of jobs, but it does have a large public sector, which

is around five times larger. There is a cluster of data processing centres in Bootle which includes the former Girobank and Alliance & Leicester centre, which now operates under Santander ownership. Nearby, with similar operations, are HSBC, the National Lottery and the Valuation Office. In the north of the borough, Paymentshield and Experian are among the bigger private sector employers. Sefton’s commercial property sector, along with most of the country, remains subdued as the waiting game continues. Previously, public sector deals had been among the highlights, with Bootle benefiting from the Health & Safety Executive moving 100 yards into a £40m

headquarters, and HM Revenue & Customs also relocating a short distance into a new building. South Sefton Investment Centre was officially opened in January, 2009, with Sefton Council’s economic regeneration department as its first tenants. In Southport, the focus of development is the Southport Cultural Centre, which is expected to take several years. It will bring together the Southport Arts Centre, the Atkinson Art Gallery and Southport Library, and adding three museum galleries, a craft gallery, a local history centre and space for community groups.

■ STEPCLEVER feature: Page 5

COMMERCIAL PROPERTY

Finally a towering success After a slow 2009, 20 Chapel Street has now secured a number of key lettings SINCE its completion in 2007, Rumford Investment’s 20 Chapel Street office development has had mixed fortunes. Offering almost 155,000 sq ft of office space over 15 floors, it was the biggest single source of Grade A accommodation in Liverpool city centre. Shortly after opening, there were a number of promising early lettings to architects Broadway Malyan, stockbrokers Panmure Gordon and accountancy giant Ernst and Young. Early in 2008, Bank of Ireland took 6,350 sq ft of space on the 13th floor, followed shortly by further lettings to Barclays Corporate and Barclays Wealth. However, as 2008 progressed, the UK and global economy suffered a dramatic downturn and this hit the commercial property market. Not surprisingly, 2009 was a tough year for the market and 20 Chapel Street was no exception. Rumford director Mike Stares announced that its sister

Mike Stares residential building, Unity, was full, but there were just a handful of smaller lettings of the commercial space. These included accountancy firm Jackson (which later vacated its space), design agency Finch and Poole PR. Up-market furniture outlet BoConcept also took up residence in the ground-floor retail unit. As 2010 dawned, there were rumours in the local market that Liverpool Football Club was eyeing space in the building. Shortly afterwards, the club announced it would be taking the 9th floor – 9,132 sq ft – with an option to take two further floors. That option was exercised in May when LFC announced that LFC had taken occupancy of 10th and 8th floors – 9, 122 sq ft and 10,222 sq ft respectively. In recent days, stockbroking and investment management firm Charles Stanley has taken 7,600 sq ft on the first floor. This deal means the building is now around 60% let, and Rumford’s marketing manager William Coleman, said: “We will be announcing further lettings soon. 20 Chapel Street has firmly established itself as Liverpool’s premier commercial HQ.”

20 Chapel Street ,in Liverpool’s central business district, has established itself as a favourite with blue-chip tenants

SCIENCE & TECHNOLOGY

Cloudburst: Where can businesses turn when disaster strikes?

Cloud cover: the next big thing

Chris Hughes reports on a new IT venture offering local firms protection against disasters ASK any IT expert for a definition of cloud computing and, while they will all agree it is the next big thing, you will not find any consensus about what it means. However, one thing is for certain, Professor Dennis Kehoe, chief executive of Liverpool-based AIMES Grid Services, intends to sell it to Merseyside firms. Its part of a wider initiative to encourage local businesses to make plans to cope with any disasters that might strike, such as severe weather, floods or power cuts. AIMES (which stands for Advanced Internet Methods Emergent Sectors) is building a new business continuity suite utilising cloud computing services. AIMES already owns a data centre at Liverpool Innovation Park on Edge Lane, which is its head office. The centre is designed to house and store commercial data on behalf of its business clients. According to Prof Kehoe, cloud

computing techniques can be used by companies to back up their data from their own servers onto one common server shared by multiple businesses. This can be used as a safeguard in an emergency or in disaster recovery, giving the business a higher chance of survival. Indeed, he points to figures from the Department for Business, Innovation and Skills that show 70% of firms that suffer a major data loss are out of business within 18 months. He added: “Merseyside needs more very high density data centres. A large part of 21st century society is based on the digital infrastructure, but the UK is 23rd in the world league table of connectivity. Our bandwidth is falling behind our competitors. “The business world is going to stimulate demand for high capacity bandwidth from the need to back up data systems. “What is more, data systems have to be resilient.”

As well as operating a data centre, AIMES is building a business continuity suite. It will be housed in the former high quality factory buildings on Edge Lane that used to belong to Marconi. Prof Kehoe said: “Data centre capacity is an area that Liverpool has fallen behind in. Most of the UK’s digital infrastructure is in London and the South East and there is some in Manchester. Indeed Manchester has five times more than Merseyside and this affects our ability to compete in the knowledge economy. “Investing in these facilities is as crucial to the city’s future as investment was in Liverpool’s docks or in its airport. “In Liverpool, we have an opportunity to create an infrastructure, but we have not done that. That means we are not getting investment.” The planned continuity suite will be 10,000 sq ft and will house

100 desks. The service is shared with five to 10 other businesses. Typically it costs £250 per desk per year. This allows businesses to quickly house their workers after an incident. Rapid access to computers and data could prove to be a life saver for threatened businesses. Prof Kehoe is keen to emphasise that his business continuity service is different to that offered by firms such as Sun Guard based in Leicestershire. They store all the kit a business would need in a big warehouse and promise to deliver and install it in the event of an emergency. “Typically, it takes 72 hours, but increasingly the world has moved on and people want to be down for as short a time as possible,” Prof Kehoe said. “Our service here is cost effective. We have plenty of car parking. It is just outside the city centre and close to the M62.” Cloud computing works by

using the internet to link together a number of geographically disparate data centres. This helps overcome a number of risks to businesses who might otherwise be relying on just one server. If any organisation’s main server fails, it would risk losing all its data which in the case of a hospital, for example, could be disastrous for the delivery of healthcare. AIMES is hosting a series of city council sponsored events to promote disaster planning. For small companies, it can be expensive to have even one server, never mind their own back-up hardware, and can also waste space and time. Lack of expertise and equipment can also mean that private servers are difficult to maintain. Cloud computing technology solves these problems by asking why a server can’t be moved from a firm’s building to a safer environment while also allowing

SCIENCE & TECHNOLOGY

Professor Dennis Kehoe, chief executive of AIMES Grid Services

in computing

that could threaten their survival multiple firms to use it for data backup. AIMES does exactly that. Prof Kehoe said: “Cloud computing uses the internet to share resources. With Cloud computing, you buy processing power when you need it. It’s a very scalable, consumption-based model. “It addresses some of the key problems we have in our business community. “The volume of information is increasing exponentially. The importance of this information is increasing exponentially. The time any organisation can do without its information is shrinking exponentially. “The world is less reliable these days, whether it’s snow storms in January, swine flu in October or energy capacity reducing in the future as we move towards decommissioning power stations. The world is less and less stable. “Cloud computing comes to our rescue. We can move virtual

servers around more than physical servers.” A client’s data is backed up in real time as it is being processed at the client’s business premises, ensuring the business’ survival. The data stored at AIMES is secure and cannot be read by anyone unless specified by the company that owns the data. That’s because blade technology is employed, which means that the hard drives are physically separate and so one client cannot see another client’s data. In the new business continuity suite, costs are kept to a minimum because the same desk space is shared by between five and 10 businesses. The suite was opened last week and is already filling up nicely, so much so that AIMES now wants fresh space for expansion and is in talks with potential landlords in other parts of the region. These new sites would not only open new doors for AIMES, providing them

with a source of back-up for their own data, but would also lead to the development of similar business continuity suites to house the growing number of clients. AIMES moved to the Edge Lane site in 2007, the main attraction being its “resilience”. The Innovation Park is served by 10 megawatts of power supply and has three separate electricity sub-stations of its own with the additional benefit of having two high bandwidth pipes coming in at either side of the site. AIMES is confident that the new data centres, business continuity suite and the investments and developments in its cloud computing branch will be profitable and is an opportunity not to be wasted. Prof Kehoe said: “Cloud computing is the next big thing. It’s a move towards shared architecture for computing that provides economies of scale.”

To advertise here contact Julie Cowley. Telephone 0151 472 2311 or email julie.cowley@liverpool.com or Neil Johnson, Telephone 0151 472 2705 or email neil.johnshon@liverpool.com

INTERNATIONAL TRADE

Kingdom of opportunity

Chris Montgomery, second left, MD of Merseyside’s E-Tech Components, collects the North West Passport to Export award in 2010, organised by UK Trade & Investment

Report points to $129bn Saudi construction market for region’s firms, writes Chris Hughes SAUDI ARABIA presents multi-billion pound opportunities for exporting firms in the North West. UK Trade & Investment’s recent report, Building Saudi Arabia, highlights the chances there are for the region’s construction and infrastructure firms. The kingdom of Saudi Arabia has the Middle East’s largest economy and claims 16th position for Ease of Doing Business, with more than 4,400 new schools, five airports, 3,000 km of rail track and six new cities under construction. The kingdom possesses one of the fastest growing and largest construction markets in the Middle East, based around a $129.7bn programme of mega-projects, including the King Abdullah Economic City which, when finished, will be the size of Hong Kong.

UKTI chief executive Sir Andrew Cahn said: “Saudi Arabia controls a quarter of the world’s oil and gas reserves, and is a country that thinks big. “Major projects are matched by major investment, which offers huge opportunities for North West firms. Whether it is building infrastructure to help pilgrims in the Hajj or new cities to help diversify the economy and provide jobs for the growing population, the rate and pace of development in Saudi Arabia is astounding.” One Merseyside firm trading in Saudi is E-Tech Components. The firm went to Saudi on a trade mission two years ago where it developed relationships with local projects and became aware of large growth potential in the country.

Richard Klein, from E-Tech Components, said: “There was huge investment in train lines and metro systems in Dubai and some E-Tech Components’ parts were used in that. That formed a good platform for business.” Having become aware of the investment in Saudi Arabian projects, the firm was quick to start trading there. One such project involved a $16bn investment in education. Mr Klein said: “The size of the project was mind boggling. There are also inner-city developments and there is lots of money to invest there. Saudi has amazing potential.” The recent report sheds light on opportunities for firms across the construction and infrastructure sectors in

a range of areas including water and power, railways, airports, seaports, education construction, housing and retail. Mr Klein said: “The UK has an excellent track record of managing major infrastructure projects and experience in designing and managing the type of logistical projects that will be integral to the future of the economic success of the Kingdom.” Helping thousands of construction and infrastructure companies to break into new markets every year, the UKTI’s report is part of its programme of practical assistance for UK based companies wanting to enter overseas markets. In order to help companies make the right connections, the UKTI has a network of advisers in the UK and abroad.

Experts gather to advise North West businesses on trading with Asia

A GROUP of public and private-sector specialists in trade with Asia will be in the North West next week to offer advice and insight to the region’s companies. British Ambassadors and High Commissioners to 10 Asian countries will bring North West businesses the most up-to-date market intelligence available.

UK Trade & Investment North West’s international trade director, Clive Drinkwater, said: “The Doing Business in Asia event will bring together a Who’s Who of experts on Asia. “As we look to grow our businesses, nobody can afford to ignore the opportunities which are represented in that part of the

world. Attending this event is sure to give any business a fantastic head start.” British diplomats from China, India, South Korea, Japan, Thailand, Taiwan, Vietnam, Indonesia, Singapore and Hong Kong, along with six Asia-based directors from Royal Bank of Scotland, will also look at financial issues affecting

trade in the region. In addition, there will be a special workshop on intellectual property rights protection. Lord Powell of Bayswater, the co-chair of the Asia Task Force will also speak at the event at Manchester’s Hilton Hotel on July 9. To book a place visit www.businessinasia.co.uk

The Hong Kong skyline

IN ASSOCIATION WITH

HOW GREEN IS YOUR BUSINESS?

A favourable wind blowing

Turbine company welcomes coalition government proposals for lower carbon economy A COMPANY operating a wind farm in Liverpool Bay has welcomed the coalition government’s plans for a lower carbon economy. West Coast Energy, which is based in North Wales, has given the thumbs-up to the coalition’s proposals to establish a full system of feed-in tariffs in electricity and a reform of the planning process to allow greater control at local authority level. The strategy is designed to decarbonise the economy by making planning more efficient, creating new green jobs and fast-tracking sustainable development programmes. However, West Coast Energy warns that, in order to effect “meaningful” change, the renewable energy industry will need to work closely with councils to ensure that the new policy plans are implemented fully. Managing director Robert Tate said: “Prior to the election, less than 10% of prospective Conservative candidates agreed strongly that the expansion of onshore wind was essential if the UK was to deliver on its renewable energy targets. “The percentage was much higher for the Liberal Democrat candidates, and given that the new Secretary of State for Energy and Climate Change, Chris Huhne, is a Liberal Democrat, our aim will be to work with local authorities and local communities across the UK to implement some of the new green initiatives of the coalition government for our future energy security.” Feed-in tariffs allow householders with wind turbines to earn cash by exporting energy to the National Grid. West Coast Energy is seeking to partner with landowners to develop single turbine installations of 250kW to 1.5MW. Chairman Gerry Jewson said: “I am very pleased that the coalition agreement has made specific mention of the need to increase the target for energy – from renewable sources as well as the full establishment of the feed-in tariff mechanism to boost renewable energy electricity generation. “Going green can strengthen the economy and create jobs that last.”

Wind turbines operated by West Coast Energy, located out in Liverpool Bay

Man on a mission to persuade tourists to go green TOURIST attractions across Merseyside are to receive free business support from the Merseyside Transport Partnership (MTP) to help visitors consider more environmentally-friendly travel options. On behalf of the MTP, Merseytravel has appointed a dedicated visitor economy officer, Andrew

Elliot, who will be working with a number of the most popular attractions in Merseyside to overcome issues such as car park overcapacity. He will help attractions inform customers how best to reach their sites via public transport, walking or cycling. Mr Elliot’s remit extends

the existing work that MTP, through TravelWise, is doing to support attractions in putting travel plans in place. He aims to work with at least 50 tourism and leisure sites over the next 12 months. He said: “Encouraging visitors to consider greener travel options will result in tangible business benefits

to tourist attractions, helping to tackle car park overcapacity and improving their existing marketing activity to make sites more accessible to more people. By working closely with tourism sites, we can help the environment and make it easier for everybody.”

Andrew Elliot – will be working with tourist sites

IN ASSOCIATION WITH

HOW GREEN IS YOUR BUSINESS?

Liverpool’s BT Convention Centre takes its green credentials seriously, and Liverpool Convention Bureau believes this is a major selling point

Carbon cutters will attract business Liverpool’s convention venues adopt environmental agenda in bid to outshine rivals

AN ORGANISATION set up to promote Liverpool as a conference destination claims the green credentials of the city’s facilities are a major selling point. Liverpool Convention Bureau commissioned a survey which shows environmental issues are now high on the agenda of employees of firms across the country. According to the survey of 2,014 UK adults, 56%of employed respondents said green issues were important to their company, compared with 15% who felt green issues were unimportant in their workplace.

Companies in the North West and the Midlands took the most note of green issues, with 59% agreeing that a green ethos was important to the business they worked for. Meanwhile, 54% of respondents said it was important that the companies they purchased from had good green credentials. Women were most concerned with the green credentials of companies, with 59% saying they were important compared to 49% among males. The survey was conducted as part of a bid to promote the city as a green business destination and

its own green economy. Carol O’Reilly, of Liverpool Convention Bureau, said: “As a city, Liverpool embodies green principles wholeheartedly with carbon emissions per person lower than the national average. “There are already 8,000 people employed in the energy and environmental technology sector generating £1bn of value, but a fully low carbon economy can generate a further 7,000 jobs by 2015. “In winning major events, conferences and meetings to Liverpool, we have to offer something our competitors don’t

and, for many, green issues are an important decision in the purchasing process. “A number of our venues participate in the green tourism for business scheme and we have also launched a carbon compensating scheme with Foundation for event organisers. “We were also the first city to have an ISO14001 accredited convention centre in the form of the Echo Arena and BT Convention Centre.” The ISO14001 accreditation is awarded to organisations that demonstrate a strong commitment to reducing their

carbon emissions. International meeting planner and founder of Quint Strategies, Wendy Parsley, said: “The decision to host PPI Transport Symposium 18 at the BT Convention Centre was a risky one considering the venue was still under construction when we first visited. “It turned out to be an excellent choice. “As an added bonus, the venue’s green initiatives tied into our goals to create a ‘green’ meeting for our delegates. “Nearly all of the hotels we used were within walking distance of the venue.”

Energy assessor trainer sets up solar business THE Merseyside-based managing director of the energy assessor training business is setting up another firm selling solar panels to homes and businesses. Peter Bladen runs The Energy Foundation, based in Halsall, near Southport. He is now also setting up a separate firm called BSOLAR that will supply and install the panels.

Mr Bladen believes that with the rising cost of energy bills, the Government introducing more environmental policies and technology improving, there is a good opportunity for the new venture. He said: “As managing director of the Energy Foundation, I have been working in the environmental sector for years and seen the

technology and the market develop. “There is definitely a demand in the North West for some of the new green technologies available, particularly the solar photovoltaic panels. “These types of solar panel convert sunlight into direct current electricity. “They are now so advanced that they can generate huge amounts of

power and, with recent changes in government legislation, represent an excellent investment, giving major savings on bills.” “Typically, if you spend 10 to £12,000 on solar panels for your property, you will make at least £800 a year saving on your electricity bill. The solar panel technology represents one of the best investments you can make in the current market.”

Peter Bladen with one of his solar panels

TRANSPORT MARK DOWD PUBLIC transport is at the receiving end of the deepest Government cuts, and our most urgent priority will be to maintain what we have achieved over the past decade. Electrification of the line between Liverpool and Manchester is now highly unlikely, despite the fact that it would reduce travelling time, improve economic prospects and eventually pay for itself. Rail companies are also expressing concern that, across the North West, we won't be getting additional rolling stock to ease the overcrowding and Chris Dale, chair of the passenger watchdog, TravelWatch NorthWest, claims "things are going from bad to worse.” He says: "Potential passengers are already being discouraged from travelling at busy times because of overcrowding. The Department for Transport appears to be completely out of touch with passengers' needs in the North West." To add to our problems, the £10m promised by Lord Adonis in the last Government to improve the ten worst stations in the country, which includes Liverpool's Central Station, is no longer on the table. But here, at least, all is not yet lost . . . We are making strenuous efforts to salvage the Central Station scheme, which is not a cosmetic facelift, but vital for the wellbeing and safety of passengers using the busiest station on our network. Meanwhile, there is also a possibility that we could improve our bus networks, which are in the hands of private operators. Currently, we have no control over them and it would be foolish to assume they would wish other than themselves to be in control. Under deregulation, we have no power to influence the quality and frequency

of services, fares or routes and there is no law saying that private bus operators have to consult the public over changes they want to make. It's too easy for operators to chop and change services at their own convenience rather than passengers' convenience, and far too easy to bypass locally accountable transport authorities in the process. Indeed, services change with such frequency that bus timetables are out of date as soon as they are printed. As chair of the group of six Integrated Transport Authorities in England, which includes Merseytravel, I have asked the Department for Transport to impose a 70day notice on operators who want to change a service. It will give bus passengers the stability they want. We also want the Department to consider establishing national “service change days”, and we believe passengers should be given three weeks’ notice of any changes to their services. Operators should be required to provide local transport authorities with details of the fares that apply on their services, and when they do deregister a service they should provide patronage and revenue data to local transport authorities. These suggested improvements are among our responses to the Department for Transport's consultation on Improving Bus Passenger Services through the Regulatory Framework. Chris Dale says the Department appears to be completely out of touch with passengers' needs in the North West. I hope he's wrong, but I believe his thoughts are valid. Mark Dowd, Chair, Merseytravel

Central Station – in urgent need of a facelift

in association with

More get ticket to park and ride

Merseytravel hub sees 20% rise in passengers

Liverpool South Parkway. which replaced the original Allerton and Garston stations LIVERPOOL South Parkway (LSP) transport hub has recorded its highest-ever weekly figures. Owner Merseytravel is also in advanced discussions to expand services there from December. More than 32,700 passengers used the station when surveyed over a recent week. This was an increase of more than 5,000 on the same time last year. A leading example of investing in modern transport infrastructure, the station hub now carries 300% more passengers than the original Allerton and Garston stations it replaced four years ago. Cllr Mark Dowd, Merseytravel chairman, said: “Liverpool South

Parkway is a spectacular success. We’ve seen an increase in passengers of more than 20% in the past two years. “The hub now draws customers from all over the north of England and the Midlands, including people who are either flying from Liverpool John Lennon or are tourists to the region. “We are in detailed discussions with train operators about new train services to be introduced in December this year and next spring.” Over the last year, an additional 60 new free park and ride spaces have been created to meet increased demand and a new, fully

accessible Travel Centre, plus a passenger lounge and smart-card enabled ticket gates have been introduced. Hooton Station, another important Merseyrail park and ride interchange, has benefited from Access for All, a national fund to improve station accessibility. Work has started on a £4m project to give passengers using Hooton station step-free access to the station building and platforms by installing lifts and a new overbridge. The work is being carried out by J Murphy & Sons Ltd for Network Rail, in partnership with Merseytravel and Merseyrail.

TRANSPORT

IN ASSOCIATION WITH

At Liverpool Pier Head, the statue of King Edward VII looms over the mighty Crown Princess during a call on a round-Britain cruise

Cruise line courts agents

Princess Cruises holds first cruise convention for travel agents on board ship in Liverpool PRINCESS Cruises is holding its first cruise convention in Liverpool for travel agents on board one its megaliners. More than 100 agents will visit the 113,000 gross ton Crown Princess when she visits Liverpool Cruise Terminal on Sunday, June 27. Princess Cruises took the opportunity to hold the event on Crown Princess while making her first of four calls at Liverpool during this summer’s roundBritain cruise programme. Although aimed at US passengers, Princess Cruises believes the brand has big UK appeal to be tapped. The event is planned in tandem with the Association of Cruise Experts (ACE) and Liverpool will be its first regional event location. Agents from Merseyside and the North will receive a tour of the ship, video footage from the Convention in Southampton, first-hand reports of Princess cruising and a three-course lunch. John Cooper, Liverpool Cruise

Club sales and marketing manager, said this was just what Liverpool and cruise lines should be doing to exploit the city’s potential cruise industry role. “This the first great big roll-out programme for northern travel agents by Princess Cruises. “Crown Princess is a spectacular ship and it’s a terrific idea to gives agents an unparalleled chance to see the ship and experience her facilities. “This is all about building product knowledge and is far easier than getting agents onto cruises, which is very expensive. “This is very helpful for the northern travel industry and I think Cunard Line is likely to follow suit in July with Queen Victoria’s Liverpool visit.” The Liverpool event is, in effect, an extension of Princess Cruises’ Southampton Cruise Convention. Crown Princess, which can carry 3,600 passengers, is on her second season of round-Britain cruises calling at Liverpool. Such has been the success of

these cruises, starting from Southampton, that the liner is already booked to call at Liverpool over the next two years. Crown Princess was the largest liner to call at Liverpool until Queen Mary 2’s visit last October. Flo Powell, ACE director, said: “We want all agents interested in, or currently selling cruises, to be offered as many opportunities as possible to gain first-hand experience of the incredible value and service that cruising offers. “The UK Cruise Convention in Southampton and this additional regional visit will ensure that agents can ‘get on board’ with cruising and talk enthusiastically to their customers to boost sales.” Peter van der Schee, Princess Cruises head of brand marketing, said: “We’re delighted to be able to offer agents from the Merseyside area this additional opportunity to be part of the UK Cruise Convention. “They can experience one of our spectacular ships in a more convenient location.”

Making a splash on Crown Princess

EDUCATION

Popular online programme

September sees a significant milestone for the Univerity of Liverpool’s extended learning NEW business degree will mark the 10th anniversary of the University of Liverpool’s online programme – the biggest in Europe – and herald a £200,000 investment in 10 new scholarships. The university’s Doctorate in Business Administration (DBA) will be the first wholly online degree of its kind in the UK, and will continue a decade of progress in the field. Not only will the new programme build on the success of the University’s online Masters in Business Administration (MBA), which has graduated 1,500 students around the globe since it was launched in 2000, it will be unique in being entirely delivered by “action learning” and “action research”. Students will apply theory and research findings to solve problems they are dealing with in the workplace. The degree will be launched in September with main subject areas including change management, leadership, innovation, global issues and sustainability. University vice-chancellor Prof Sir Howard Newby said: “As a global university, our online degree provision is a key part of our commitment to offer students around the world the opportunity to study for a Liverpool degree. “Liverpool already offers degrees through partnership arrangements with universities in Chile, Mexico and Spain; through Xi’an Jiaotong-Liverpool University, our joint venture university in China; and online.” He added: “The new DBA will offer students the opportunity to study with other senior executives from a wide variety of companies all over the world.” The University is also marking the 10-year anniversary of its online degrees with the introduction of 10 scholarships, worth up to £20,000 each, funded by its online learning partner Laureate Online Education. The scholarships will fund an entire degree programme for 20 students from developing countries. The university’s first online academic class took place in 2000 when 18 students – mostly from the Netherlands – began an MSc programme in Information Technology. Today, the University has 5,300 online students studying in 175 countries across the globe. It runs online Masters programmes in Management, Medicine, IT and Law. Over the course of the 10-year programme, the average age of students studying for online degrees is usually 32 to 38. The most popular course is the MBA, with 2,100 (39%) of enrolled online students undertaking the programme – 65% of online

students are studying management programmes. Much of the student body is from Europe and Africa, although there is a significant percentage from the US and Canada. Most students work in the fields of finance and marketing. Last year 2,924 students were recruited to University of Liverpool online programmes. Liverpool has delivered its online degrees in partnership with Laureate Online Education since 2004. Laureate is a US-based global education provider with a network of universities offering graduate and undergraduate degrees in more than 21 countries. The University is constantly evolving its provision to meet the needs of working professionals in a demanding global marketplace, and in 2009 it launched a new Masters programmes in a range of areas including computer security; internet systems; software engineering; corporate

finance; project management; international business law; international finance and banking law; and technology and property law. The courses bring the portfolio of online Masters courses up to 19, with some of the most popular programmes continuing to be the MBA and the Masters in Public Health (MPH). Liverpool’s online courses attract students from a large number of global blue-chip organisations. The MPH, in particular, attracts many students from African countries such as Sudan, Zambia and Malawi with current students including surgeons and HIV project co-ordinators. The University now has the same number of online postgraduate students as on campus. Alan Southern, director of e-learning at the University of Liverpool, said: “The beauty of our online degrees is that students who would never have

considered coming to Liverpool to study, due to work or home commitments, are able to benefit from our academic excellence. “There is a real vibrancy in the virtual classroom. “Our students are encouraged to analyse theory, and compare it to their personal experiences in the workplace. “With students in many different countries talking about theory in the context of their own culture, it is a truly global experience that is difficult to replicate in any other environment.” He added: “Our online degrees are very much tailored to the needs of the global economy – our recently launched programme in project management with a specialisation in oil and gas has attracted a great deal of interest from the petrochemical industry. “A significant number of students who have enrolled are working in that field in countries such as Saudi Arabia and Nigeria with companies such as Shell and

Mobil. Students studying on our programme in operations and supply chain management – which has recently become the first wholly online programme to be accredited by the Chartered Institute of Purchase and Supplies (CIPS) – are from a real mix of companies, from the likes of Airbus and Boeing to Nestlé and Coca-Cola. “Chief executives want managers with the highest level of business education, but don’t want to lose their staff for a year while they study. Online degrees suit that need perfectly.” Students studying online degrees hail from diverse geographical locations, but David Meadows, 56, chose the online route of learning because of the flexibility of the programme. As chief of technical services and officer in charge of administrative services for the Kosovo Peacekeeping Mission in the United Nations, David, originally from Neston, in Wirral, opted to follow the online MBA as

EDUCATION

casts its net on global scale

offer as Neil Hodgson reveals a pioneering qualification to mark a decade of progress

Alan Southern, director of e-learning at the University of Liverpool it enabled him to study while on the move – often in remote and challenging locations. He said: “As a mature student who had been away from education for some considerable time pursuing a busy career, it would have been easy to not go through with it, but the programme has enabled me to become ‘au courant’ with modern business practices, which has been extremely useful within my managerial role with the United Nations.” He said the programme was not without its challenges: “Due to my constant mobility from the beginning of the three-year programme, working in a demanding peacekeeping environment and moving from one country to another, it was sometimes challenging to participate in the daily and weekly inputs required, as well as the weekly submissions. “Finding suitable internet access in all the countries I was working in was not always easy,

but was extremely important. My motivation was driven by the encouragement of my wife and children, as well as my own ambition to finish the course. “My three daughters were going through undergraduate studies in the UK at the same time as I was studying for my MBA, so that was great encouragement for me. I graduated from my MBA at the same time my youngest daughter graduated at Bachelor’s level.” David’s role took him to Switzerland, France, the US, Lebanon, Sudan, Tanzania, Ethiopia, Libya, Chad, Kenya, Eritrea and Kosovo during the time he was studying. Moving somewhat farther afield from Neston, Liz Thompson, 48, began her MBA as Minister for Housing, Lands and Environment in Barbados. Having been a lawyer for many years, Liz wanted to study for an MBA to strengthen her critical analysis and management skills, but did not want to leave the

David Meadows, who worked for the United Nations in Kosovo, studied for his MBA online country to take up full-time study overseas. She said: “I needed to find a reputable university which had high standards but was fully accessible online. I found the online classroom a major tool of learning. “Being able to share experiences across disciplines and cultures was invaluable to me and provided a knowledge base from which I continue to draw. “The MBA has dramatically improved my critical analysis skills, allowing me to bring a new set of analytical tools to all my professional endeavours. “It has increased my level of discipline in terms of the way I work and has given me a lens through which I can view issues and problems in the workplace. “I think the online MBA builds a higher degree of performance and responsibility since working in a team with people all over the globe whom you have never met, to deliver an assignment within a deadline, is more demanding than

Liz Thompson working with someone faceto-face or whom you have seen in the classroom and can easily telephone.” Liz chose the management of energy policy for her dissertation topic. “My studies and extensive research for my dissertation

served to put me at the cutting edge of this very important global issue and in a very practical way, along with my work experience, better equipped and positioned me for professional and specialist roles in energy and environment.” She now leads an energy and environmental consultancy which works across the Caribbean and is a winner of the United Nations Environmental Programme’s Champion of the Earth Award which she shares with a number of international leaders including Prince Albert of Monaco, former New Zealand Prime Minister Helen Clark, former Presidents Thabo Mbeki and Mikhail Gorbachev, and former Vice-President Al Gore. Liz is also a senator, leading opposition business in the Barbados Senate. The Barbados government recently nominated her for the post of Executive Secretary of the United Nations Framework Convention on Climate Change.

THE NETWORKER

BUSINESS LUNCH Davide de Maestri tells Bill Gleeson why he likes the informality of the Cafe Bar, at Blackburne House LACKBURNE House Cafe Bar describes itself as a “hidden gem off Hope Street”. Situated in a Grade II-listed building, it provides an informal alternative to the usual, pricier lunch haunts. It was suggested by my guest, Davide de Maestri, who previously worked for Saatchi & Saatchi as an account director, and for Liverpool Football Club as a brand director before becoming a business coach with the Liverpool-based International Coaching Academy. On meeting us, Davide extolled the grand scale of the architecture. He said: “Blackburne House is a beautiful building. I would love to live here! It’s surrounded by other lovely buildings opposite and down Falkner Street. “It used to be a girls’ school. That’s what’s inspired the legacy, and it’s now a charitable trust that provides education, training and business support services for women. It helps to create an overall nice ambience. “They have different art exhibitions here. Today, there are a lot of flower and plant pictures on display. You can buy them. Two months ago when I was last here, the theme was portraits of women. They were very striking and in keeping with the trust’s aims.” A social enterprise which reinvests its profits into Blackburne House to support its services, the cafe is spacious and light. Plenty of other people appear to have discovered this “hidden gem” as trade looked brisk as we arrived, though there was plenty of room. It was doing well despite the fact it’s surrounded by a dozen alternative venues. The menu, prepared with locally sourced ingredients where possible, is extensive and includes soups, salads, hot paninis and sandwiches, as well as hot dishes. It is also fully licensed, offering beers and bottles of wine, with the wines typically priced between £10 to £14 a bottle. Reading the menu, Davide commented: “The food is freshly made up in the morning and the prices are very reasonable.” For his starters, Davide chose a celeriac, roquet and

carrot, peppers and parmesan salad. I opted for one of the soups of the day, butternut squash and chilli, while my wife and sighted guide Frances chose the leek and potato. While we ate our first course, I discovered that myself and Davide share a link to events that hit the front pages of the newspapers 15 years ago. Davide witnessed first hand the break up of the original Saatchi & Saatchi advertising agency. He was one of those staff whom Maurice Saatchi lured away to form a new agency. At the same time, I was busy attending court to report these events for The Independent. Oh, happy days! Davide joined Saatchi & Saatchi as a graduate trainee in 1987. He worked on the famous Silk Cut account. He said: “It was the most pressurised account for creatives to work on because the standards were set so high. “I remember visiting the sixth floor of our Berkley Square head office, which we all called the Maurice and Charles floor because they had it to themselves. It was incredibly opulent. Charles’s office was the biggest I had ever seen. There were art works everywhere and where most offices have plants, they had trees. There was an enormous statue of a bulldog. He was making a statement. The whole place made you feel very small. It felt quite intimidating. We had to present outstanding ideas to Charles, who was ruthless in selecting them. And then we had to present them to the chairman and chief executive of Gallagher.” Of his starter, Davide said: “It was very nice and fresh.” I thought my generous serving of soup was flavoursome, while Frances said hers had a nice texture. For his main course, Davide selected fisher-

Blackburne House Cafe Bar describes itself as a “hidden gem” off Hope Street man’s pie, Frances had a goats’ cheese and red pepper quiche, and I had Thai fishcakes with a sweet chilli dip. While we ate our main course, Davide explained that, after leaving Saatchis, he joined Liverpool Football Club as brand director. He said this was very different from working for the likes of Gallagher or Proctor & Gamble. Football Clubs, he explained, are not big businesses. Davide said: “They employ about 200 people. The vast majority of them are there to stage a football match. The majority of their revenue comes from a couple of sources: gate receipts and television. About 30% of their revenue comes from commercial activities and sponsorship – shirt sponsorship and kit manufacturing was the lion’s share of what was left. All the other stuff that comes after that is relatively small. The total revenue of all the other stuff that remains is no more than £200,000 to £300,000 a year. “Things like mugs and calendars that you might see in

Davide de Maestri

the shop. People read too much into them and build them up into more than they are.” Nevertheless, he believes that big football clubs like Liverpool still have huge, untapped commercial potential and that the likes of the Glazer family, Roman Abramovich and the American investors in Liverpool became involved in English football because they had an eye on the profits to be made from clubs screening their own games on a pay-per-view basis over the internet. “They are doing it for the money because they think that the huge explosion of broadband and interactive TV means that in the future there will be no need to go through a distributor such as Sky or the BBC to sell programmes to customers because Liverpool FC will sell their rights directly to fans around the world,” he said. “They could earn £100m a game, for example, more than £1bn a year. That would transform the business of football.” Davide said his fisherman’s pie was excellent as he could taste the separate flavours of the seafood.

My Thai fishcakes were nicely browned and were also very flavoursome. Frances thought her quiche was very tasty, as the goats’ cheese didn’t get lost in the quiche. Over coffee, the recently appointed chairman of the North West branch of the Chartered Institute of Marketing described his latest venture, the International Coaching Academy, which offers coaching and training services to businesses of all sizes. Through the University of Liverpool’s Management School, the academy provides advice to 25 owner-managed businesses. Davide said he preferred this type of work to big agencies, because: “I can make more of a difference to people.”

DETAILS Blackburne House Cafe Bar Blackburne Place Off Hope Street, Liverpool L8 7PE Tel: 0151 708 3929 email: cafe@blackburne house.co.uk

THE NETWORKER

THE BUSINESS LIST

Wednesday, July 7

A SEMINAR on the legal issues involved in intellectual property (IP) and licensing, and how they apply practically, is being held at Daresbury Innovation Centre. The free event, which is aimed at business owners and chief executives, is from 11am to 1pm. To book, visit http://tinyurl.com/IPjuly7

FRIDAY, JULY 16/ LIVERPOOL CHAMBER OF COMMERCE’S 160TH BIRTHDAY PARTY

Thursday, July 8 Knowsley Chamber of Commerce is holding a one-day seminar on tendering. The event speakers are Dr Brian Farrington and Stephen Ashcroft, co-authors of Contracting in the Public Sector. It is at the Village Hotel, Whiston, and is free to attend. To book, visit http://tinyurl.com/tenderjuly8

Thursday, July 8 A workshop, 10 steps to growing your business in uncertain times, is being held by St Helens Chamber. This half-day event will be delivered by DTC Associates and begins at 8.45am. It costs £11.75 for members and £23.50 for non-members. To book, visit http://tinyurl.com/tipsjuly8

Friday, July 9 Rippleffect managing director Ben Hatton will be speaking about the internet and how businesses can help to improve their websites to maximise their return on investment and reach their target audiences effectively. It is the latest event in Liverpool Chamber of Commerce’s 60 really useful minutes series. It is from 9am-10am and is free to members and £5 for nonmembers. To book, visit http://tinyurl.com/webjuly9

Tuesday, July 13 Halton Women in Business is holding its next meeting at The Heath Business Park, Runcorn, from 12pm-2pm. It is £5 for Halton Chamber members and £10 for non-members, and includes a light lunch. To book,

‘Summer evening of Gatsby-esque opulence’ – the Isla Gladstone Conservatory, in Stanley Park LIVERPOOL Chamber of Commerce and Industry is celebrating its 160th birthday in style with an evening of entertainment. Stanley Park’s wonderfully restored Isla Gladstone Conservatory, in

Anfield, has been chose as the venue for the birthday barbecue. The Chamber promises “a summer evening of Gatsby-esque opulence and a real night to remember”. The elegant Victorian conservatory is set

call Nicola Holland on 01928 516142, or email nicolah@halton chamber.com

amid gardens and lakes, surrounded by historic stone pavilions and adjacent to a fairy tale bandstand. The evening will include Pimms, live music and dancing, a barbecue banquet, magicians and

fire-eaters, a charity auction and a midnight snack. There will also be some special awards marking the contributions that some members have played throughout its history. It costs £65 for

Wednesday, July 14

companies and their supply and support communities. It is an informal, presentation-free event. The breakfast is at Daresbury Innovation Centre, starting from 8am. For more details, see http://tinyurl.com/bfastjuly16

A business breakfast is being held at Inglewood Manor, Ellesmere Port, from 7.30am-9pm. The event, organised by West Cheshire and North Wales Chamber of Commerce, costs £11.75 for members and £23.50 for non-members. To book, call 01244 669988.

Tuesday, July 27

Thursday, July 15 St Helens Chamber is holding an event for would-be entrepreneurs, bringing them together with specialist advisers. The free event is from 6pm-8pm. To register, visit http://tinyurl.com/bossjuly15 Ben Hatton, MD of Rippleffect

members and £75 for non-members, with discounts for a table booking. For details, contact Melissa Bush at Liverpool Chamber on 0151 224 1860 or email melissa.bush@liverpool chamber.org.uk

Liverpool’s West Tower

Friday, July 16 The Daresbury Business Breakfast brings together around 100 people working for hi-tech

The Area 51 business breakfast will this month be held at the top of Liverpool’s tallest building, West Tower. Organised by Liverpool Chamber of Commerce, networking will take place almost 500 feet above the ground. It costs £15 for members and £20 for non-members and starts at 7.30am. To book, visit http://tinyurl.com/westjuly27

THE NETWORKER

NEIL HODGSON Ever felt in the minority? One can be a lonely number, especially when you’re one among 10.3m people . . . SUPPOSE the ultimate aim of the consummate networker is to get themselves noticed, and in this respect I recently hit the target – scored the proverbial one hundred and eiiiigghhhtttty, notched that “back of the net” moment. I was in the fortunate position of having been invited by Liverpool Chinese Business Association to accompany a visit by a three-man team to assess the trade opportunities between our region and the North Eastern Chinese city of Linyi. Situated between Shanghai and Beijing, the second-tier city of Linyi is a burgeoning economic development area with a population of 10.3m people. That’s bigger than London, which is pretty impressive for a city I had never heard of before. Our reception from first to last by the municipal and central Government was nothing short of astonishing. We were whisked from meeting to meeting in a blacked-out people carrier escorted front and back by sleek black VW Government Passats with hazards flashing to denote the special status of the motorcade sweeping through the city and surrounding countryside on visits to development zones. Gatehouse security guards in pristine uniforms stood bolt upright to attention and saluted as we swept by on a hectic four- day programme of morning, daytime and evening

meetings and functions. Then, on Saturday, our itinerary afforded us a free afternoon which myself and my three Liverpool Chinese companions used to see something of Linyi city centre. Earlier that week, we had transited through Shanghai, where “Gwailos” are relatively commonplace, and I had only been vaguely aware of seeing no other westerners in Linyi. So far we had been cocooned in a world of hotels, motorcades and air-conditioned offices, and it was only when traffic came to a standstill on the streets of bustling Linyi city centre that I was aware of my novelty value. Clearly, I was the first foreigner thousands of Linyi citizens were experiencing, in the flesh, so to speak. Much to the amusement of my fellow travellers, cars came to a halt and drivers and passengers gawped, slack-jawed, at this fair-haired, white skinned oddity among them. As we passed, small children frowned in puzzlement in an encounter they will probably tell their own grandkids about. Strolling through a public park I was urged, sotto voce by my companions, to take a quick glance behind, whereupon, in a visible trail in our wake were scores of locals who had stopped in their tracks, turned, and were watching us – me – in something akin to suspicious wonderment. The following day, as we stopped for 15 minutes at a very cheap and cheerful roadside eaterie in the

Spot the odd one out! A reception for the Liverpool Chinese Business Association party, by local and national Government officials, in Linyi

middle of nowhere on our 300km drive to Quing Dao airport, one of the owner’s family told our interpreter that I was the first outsider he had encountered in his 80 years of life so far. I just hoped he wasn’t disappointed. F COURSE, the officials we met took my presence very much in their stride, but nevertheless the networking process over 15-course breakfasts and 25-course lunches and dinners still presented us with our fair share of dilemmas. By this stage, I had already succumbed to a particularly nasty bout of food poisoning in Shanghai, after a brush with a fish which my LCBA companion Colin Ling diplomatically described thus: “If it was meat, I suppose you could describe it as ‘gamey’.” Obviously, my wussy western digestive system was having none of it, and for the following day and night I had been re-enacting THAT scene from The Exorcist in a darkened Linyi hotel room. Luckily, the following day I was able to fall into step with our schedule, but lunch with several high ranking government officials and the county mayor presented an unforeseen quandary, even for the Liverpool Chinese. Our hosts were generous to a fault and the table was groaning under the weight of soups, side dishes, meats, fish, scorpions (yes), wasps (I kid you not), grubs (oh yes) and eggs which at first we thought were quail’s but contained – reminiscent of Monty Python’s famous “Crunchy Frog” sketch – something altogether unexpected. Some of this food was not for the hoi polloi, nor, it has to be said, for us. But how do you explain that politely? Colin attempted, along the lines of: “I know some food, like greens, is good for me, but I don’t eat it because of the taste or texture. And I know some things are bad for me, like beer, but I drink that.” I don’t think that really cut any ice with our hosts. So, what is the solution to such a potential social faux pas? Well, I’m afraid to say, I took the coward’s way out. I politely allowed my small plate to be loaded with various exotic items, then engaged in deep conversation until the ever-attentive serving staff returned to clear the table for the inexorable next course. Not very gallant, I know, but having come off second best in a tussle with a “gamey” fish, I wasn’t taking any more chances.

SOCIAL DIARY THE NETWORKER

Liverpool City Council leader Joe Anderson, left, and DLIB chairman Frank McKenna

Rachel Haugh from Ian Simpson Architects with Annie Atkins and Charlotte Myhrum from Places Matter at the RIBA Architecture Festival 2010 launch

CAROLYN HUGHES From left, Mike Carr of NSG UK, Roy Gronow of Entwistle and Dave Blackman of Venmore at the DLIB event

LOBBY group Downtown Liverpool in Business (DLIB) hosted its third annual Business Week last month. Among the events was a question and answer session at the Hilton Hotel, when DLIB chairman Frank McKenna was joined by new Liverpool City Council leader Joe Anderson. ■ RIBA held the launch of Architecture Festival 2010 in Downing’s Port of Liverpool Building. Speakers at the launch included RIBA’s Belinda Irlam-Mowbray, Steve Broomhead of the

Northwest Development Agency and Rod Holmes of The Mersey Partnership. ■ Last month more than 40 guests attended a special Spanish wine tasting evening at The Mersey Partnership’s restaurant of the year 60 Hope Street. The evening, hosted by Colin Manning of 60 Hope Street and Efrem Mallol, general manager of Bodegas Ca N’Estrella included a four-course meal, with each course being matched with a different wine from the estate.

Mark Barsoum, Dineka Gray, Stephen Kane and Donna Friend at 60 Hope Street

Emma Carvell and Gareth Lewis enjoy the wine tasting at 60 Hope Street

Dr Rob McDonald from the Liverpool Architectural Society and Rod Holmes, chairman of The Mersey Partnership, at the RIBA event

Kate and Graeme Creer, of Weightmans, with Irene and John Borley at the wine tasting event

Christine and Bill Ainslie in the private dining room at 60 Hope Street

Sharon Tagoe and Brenda Chukuma at the 60 Hope Street wine tasting event

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