Post Business Magazine - September 2012 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

POST

BUSINESS w w w . l d p b u s i n e s s . c o . u k September 2012

Leading the charge

Liverpool City Region LEP chair, Robert Hough, talks up the Merseyside economy

● Nest eggs: SME pensions shake-up ● People power: Why the Census matters ● Flexible friends: Tenants go short-term1

INSIDE 4

NEWS

BetFred.com signs deal with Tottenham Hotspur FC

POST

BUSINESS

BIG FEATURE

LIVERPOOL POST EDITOR Mark Thomas 0151 227 2000

BUSINESS WRITERS Bill Gleeson 0151 472 2319

mark.thomas@liverpool.com

Firms get set for shake-up in pensions regulations

bill.gleeson@liverpool.com

PROFESSIONAL SECTORS

Tony McDonough 0151 330 4918

Pro and cons to changes in how law firms are run

tony.mcdonough @liverpool.com

Alistair Houghton 0151 472 2449

BIG INTERVIEW

alistair.houghton @liverpool.com

Robert Hough, chair of the Liverpool City Region LEP

Neil Hodgson 0151 472 2451

neil.hodgson @liverpool.com

ECONOMIC DEVELOPMENT

HEAD OF IMAGES Barrie Mills

How the population ebb and flow affects the sub-regional economy

barrie.mills@liverpool.com

26 HOW GREEN IS YOUR BUSINESS?

MARKETING EXECUTIVE Rachel Street 0151 227 2000

ADVERTISEMENT DIRECTOR Debbie McGraw

Team GB triumph sparks interest in green bicycle scheme

rachel.street@trinitymirror.com

INTERNATIONAL TRADE

ADVERTISEMENT SALES Neil Johnson 0151 472 2705

Wirral hose specialist enjoys Middle Eastern growth

neil.johnson@trinitymirror.com

KNOWLEDGE ECONOMY

Germ-fighting company signs lucrative new deal

Diana Griffiths diana.griffiths@ trinitymirror.com

0151 472 2311 PHOTOGRAPHY Trinity Mirror

COMMERCIAL PROPERTY

Property firms having to adapt as tenants insist on flexibility

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

35 BUSINESS LUNCH

Camp and Furnace, in Liverpool

36 THE LIST

TELEPHONE 0151 227 2000

FAX 0151 330 4942

THE NETWORKER

Alistair Houghton puts another shrimp on the barbie

38 SOCIAL DIARY

Carolyn Hughes out on the town

NEXT week sees the start of a scheme to force more of us to save for retirement. Known as automatic enrolment, all employers will have to enrol all of their employees who earn a fraction over an £8,000 threshold into an employers’ or a private pension scheme, whether they want to join or not. The employers are also required to make a contribution, albeit at a relatively low level. It should result in many millions more people becoming entitled to a pension. Over time, it will also result in many billions of pounds of funds becoming available to British pension institutions, which in turn should result in greater investment in the

27 BILL GLEESON economy. You would wonder whether the greater savings/ investment funds sloshing around the system could be sufficient in its own right to push up investment asset values such as property, stocks and shares. It raises the question why don’t people already save for retirement? What causes the inertia? Perhaps as a nation we are not very good at figures, so we haven’t twigged that the state pension is

35 insufficient to comfortably live off. Maybe there are so many other demands on what money we have that we keep putting the issue off until after we have paid the mortgage, paid for child care, put the kids through university, bought a car, repaired the roof, taken a foreign holiday, funded Christmas, bought groceries and shoes, paid the gas bill, council tax and a hundred other things that seem more urgent and every bit as essential. Yet life is likely to get longer and healthier in the coming decades. More of us will

live for longer – much longer. Babies born today are predicted to see their 90s and early 100s, rather than their 70s and 80s as at present. There is, therefore, every reason to make sure we all have enough money put aside to pay for a long and active retirement. Living longer has to be seen as a good thing. Yes, it poses economic challenges, but it also is an economic opportunity. The new demographics should offer fresh markets for business to provide for. These might be in the leisure markets, housing,

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

health and social care. Ultimately, though, we are also going to have to get used to the idea of extending our working lives. There are already plans to raise the state pension age to 68. You can bet there will be further increases to come. Whether you see this as a good thing or not might depend on what you do for a living, but if you enjoy your work then why not carry on? I hope to. Of course, to pay for all of this, and to create the capacity to soak up all of the additional resource, we will need to see our economy grow hugely over the coming decades.

BILL GLEESON 3

NEWS

UKTI urges firms to target Brazil opportunities

Crosby’s Dan Purvis proved himself a GB Olympics ace Picture: GAVIN TRAFFORD

FRESH from Great Britain’s Olympics success, Government-backed UK Trade & Investment (UKTI) is urging north west firms to make the most of opportunities in Brazil which will host the 2016 Games, as well as the 2014 FIFA World Cup. During the games, delegations visited the UK to study our preparations not only for the Games but for legacy, giving firms the opportunity to understand Brazilian requirements and build solid trade partnerships for the future. Paul Eadie of UKTI

North West, said: “UKTI is actively playing a role in trying to capture these opportunities for British companies. “British architects have already triumphed by winning the contract for the design of the Olympic Stadium in Rio. “In addition, a north west company has won the ticketing rights for the World Cup in co-operation with a Brazilian company.” In November, UKTI NW will be taking companies to Brazil as part of a market visit to Latin America.

Betfred.com earns its Spurs in new deal

ARRINGTON-BASED betting group Betfred.com has sealed a deal to become the official UK betting partner of North London football club Tottenham Hotspur. As part of this deal, which will last for an initial three-year period, Betfred.com will have exclusive UK branding rights across Tottenham’s online, digital, mobile and social media platforms. As an introductory offer to celebrate the deal, Betfred.com, which is part of the Done Brothers group, will give Spurs fans a free matched bet of up to £50 and a free £10 bet on their next game after signing up. Once registered, they will enjoy a range of exclusive offers, including doubled and trebled first goalscorer prices on every Spurs Premier League game with Double Delight and Hat-Trick Heaven. Commenting on the deal, Betfred.com commercial director Rakesh Chablani said: “Tottenham Hotspur is a massive, globally recognised brand and I’m very confident our newly-established partnership with them will reap huge rewards for our business. “Spurs supporters registering with us can now also look forward to increased value, season-long specials and exclusive offers.” Tracey Keenan, head of global partnerships with Tottenham Hotspur said: “We’re delighted to announce Betfred.com is the club’s new official UK betting partner.” She added: “We are looking forward to working in partnership over the course of the next three years to deliver a number of exciting and engaging consumer campaigns, which will help drive its UK business.”

Spurred on . . . Fred Done, co-founder of Warrington-based Betfred.com parent, Done Brothers

QUALITY

LEGAL

Stella Kuit, Head of Private Immigration, QualitySolicitors Jackson and Canter New Graduate Entrepreneur Visa route for talented international students FURTHER reforms to the law governing immigration in the UK have now seen the addition of a new visa scheme for international students who have an outstanding business idea that they wish to put into practice in the UK following completion of their studies. At a time when home students are about to enter into the unknown murky waters of paying higher tuition fees of up to £9,000 per year, this might be considered as being very risky business indeed. The new route, “Tier 1 (Graduate Entrepreneur)”, is being presented by the Government as an opportunity for the UK to retain students from outside the EU who possess exceptional entrepreneurial skills and innovative ideas but do not have a job offer from a UK employer when they graduate. Applicants must be endorsed by an approved UK Higher Education Institution (HEI) and make their application from within the UK following graduation. Successful applicants will be issued with a visa for 12 months initially, which may then be extended for a further 12 months, providing the sponsoring HEI is satisfied with the progress that the graduate entrepreneur has made with their business. Following this, graduate entrepreneurs will be able to stay in the UK and switch into the main Tier 1 (Entrepreneur) route if they invest a further £50,000 into the economy. There is a limit of 1,000 visa places available for potential applicants for each of the periods between April 6, 2012, to April 5, 2013, and April 6, 2013, to April 5, 2014. These places will be divided equally among participating HEIs. of which many are

currently based in the north west region. The scheme is hailed by the Government as a step in the right direction to encourage entrepreneurship and enable the brightest and best international students who can help to boost the UK economy. However, over the coming academic year, there are expected to be 70,000 fewer student visas issued overall. Many HEIs are concerned that the new scheme represents but a fraction of the previous options that have now been taken away by the Government. International students currently bring in over £9bn a year to the UK economy. This figure will undoubtedly be reduced quite dramatically as overseas applicants are deterred by the lack of current incentives to remain in the UK following graduation and having spent a considerable amount in international tuition fees. In an increasingly difficult economy, there is also concern that, as the Government restricts the number of migrant graduates who possess the innovative ambition and drive to succeed with their 1,000 annual application limit, they are depriving the UK of the next generation of industrialists and business people who undoubtedly have so much to contribute. Taking this into consideration, alongside the many fresh-faced home students who are deterred by the prospect of being saddled with substantial debt upon graduation, means that the impact of any supposed boost to the UK economy may not be apparent for quite some time, unfortunately.

‘Over the coming year, there will be 70,000 less student visas issued’

■ FOR more information, email: stellakuit@ qualitysolicitors.com ■ IN ASSOCIATION with QualitySolicitors Jackson and Canter

In Business for your Business

Flintshire ● open for business

A focus of Flintshire Business Week 12 is a two day Exhibition to be held at ConvaTec Ltd., on Deeside Industrial Park. Uniquely the exhibition is held within a fully operational manufacturing operation on Zone 2 and is the only B2B exhibition in North Wales comprises of two Exhibition Halls and interlinked exhibition area, Seminar Hall and Refreshment area alongside outdoor exhibition space and car parking. This exhibition follows on from the success of 2011 when more than 1500 delegates took part, visiting 60 exhibitors. Due to demand more stand space has been made available underpinned by an extensive media, social media and e commerce campaign. As a manufacturing County the purpose of the exhibition is to platform local businesses and encourages exhibitors and delegates from the Region to take part in the OPEN FOR BUSINESS theme.

The ﬁrst day will begin with Manufacturing for Growth Seminar, featuring the Regional Director of CBI, Emma Watkins, Phil Millward, HR Director General Motors, Brian Fleet, CBE, MBE, and Chairman of Areotech and coordinated by Regional Director of EEF, Paul Byard. Deeside Enterprise Zone will also attribute updated information from Lord Barry Jones, PC and Askar Sheibani, Chair of the Enterprise Zone Board. The afternoon moves on to Successful Growth through International Trade. Chaired by Joseph Cave, Trade Director of Barclays the speakers will include the Director of Enterprise Europe Wales, Huw Watkins, Rene Power , Barratt Dickson Bell, Institute of Export, Guntis Rubins, Investment and Development Agency, Latvia. Three networking opportunities are Made in Flintshire, encouraging local and regional trading, Mersey Dee

Alliance Innovation Network Business Breakfast, targeting innovators, entrepreneurs and experts from Wales and North West England and Business in the Community Lunch on the second day. Procurement is the main subject of day 2 including facilitated workshops by Bangor University Business School and How to Tender tips from Flintshire, Wrexham, Wirral and Chester and Cheshire West Councils. A highlight of the day will be the ConvaTec best Exhibition stand award Contact the Team now to ensure your place or find out details: Tel: 01352 703219 E-Mail: businessweek@flintshire.gov.uk Web: www.flintshirebusinessweek.co.uk Follow us on Twitter, Face book, You Tube, LinkedIn

In association with

Flintshire Business Week 12 - 19 October

Maj Nor or B2B th W Eve a l es nt in 2 da 200 y B2B 0+ D Exh eleg ibitio Key n a Sec note Sp tes tor s e pec akers Flin & iﬁ Awatshire B c semin rds usin ars & e s Gala Flin s tshi D i nne re a FBW r t We stm cop 12 Ma inst ies gaz er f i nes or b FBW us 70 bus 12 Spo inesse 00 s ines s fo nsored r bu sine by ss

Book Now:

01352 703219 Email us: businessweek@flintshire.gov.uk www.flintshirebusinessawards.co.uk www.flintshirebusinessweek.co.uk

Flintshire ● open for business 5

OPINION

Halewood’s Jaguar Land Rover plant is doing its bit for export-led recovery, but EEF North West director David Ost, inset, above, says the coalition Government must do more

Economy needs a sharp jolt to kick-start our recovery Manufacturing organisation EEF’s North West head, DAVID OST, calls for decisive action THE first 18 months of recovery to mid-2011 had looked promising, particularly for manufacturers. The sector was delivering an increased share of output, providing a boost to our trade performance and investing more than the wider economy. Since then, the UK economy has seen almost no growth, let alone the investment and exportfocused growth that politicians and economists believe necessary for a better balanced economy, despite the recent export figures for Jaguar Land Rover that showed its Halewood factory, for the first time, shipped more cars to China than the US. Weaning ourselves off the consumption-driven growth of the previous decade was never going to be easy. And the continuing eurozone saga, which is feeding through to confidence globally, is further weighing on investment plans and trade. With sentiment in manu-

facturing, and other parts of the private sector, looking weaker than at the start of this year, we are drifting further and further from the ambition of better balanced growth. The coalition has staked its credibility on fiscal management. It has adopted a couple of clear rules for the public finances that all departments and agencies across government have to work towards meeting. But this is only a job half done – the pursuit of credibility needs to cross over into growth. The Government has been taking positive, but sporadic, action on some essential components of the policy landscape. Efforts to reduce regulation, a focus on apprenticeships, cuts to the headline rate of Corporation Tax and a more competitive tax environment for R&D activity. However, the focus on growth has been patchy elsewhere and

lacks the urgency the private sector wants. For example, the latest scheme to address the cost and availability for SMEs , one of the key investment challenges, has come with Funding for Lending, after a number of years when the banks, not Government, have led the way on trying to improve access to finance. But this isn’t getting enough vocal promotion from senior members of Government that an £80bn ambition warrants. The UK economy is crying out for every pound of investment we can get. If balanced growth is the priority, the coalition claims, we need the same urgency, credible goals and commitment from across government as we seek to balance the books. We need a jolt to break us out of this lesser recession. Private sector investment should be the target if rebalancing is the aim and the jolt must be sharp because external demand is so weak.

Three things Government could do now to boost growth include looking at how other countries have more success than the UK. Take the US, where investment has been a positive contributor to growth in the past five consecutive quarters. This is partly a consequence of the increased “bonus depreciation allowance” (the equivalent of capital allowances) to 100% for eligible capital investments purchased by January 1, 2012. A significant increase in the main capital allowance rate in the UK for a temporary two-year period would, as in the US, support higher investment now, particularly from liquidity constrained SMEs. We also need another push on growth capital, particularly focused on the supply chain. A number of large companies have issued their purchasing needs, highlighting their increasing appetite to see these satisfied by

domestic supply chains. Investment opportunities would slip through our fingers if SMEs were unable to access the patient capital they need to tool up and meet new contracts. Growth capital is currently left to the banks, but Government must get involved. More innovative thinking, such as Funding for Lending, is needed to get the finance mix right. Government should also cut business costs by way of a reduction in employers’ National Insurance Contributions. These measures would signal to the private sector that the coalition was looking to build its credibility beyond cost-cutting and get the economy moving in the short term. But building the foundations for rebalanced growth and sustainable wealth creation will require a much bolder vision that is delivered consistently across all parts of government.

THE BIG FEATURE

Age-old problem

BY BILL GLEESON

▲ ▲

This autumn sees the biggest shake-up to pensions in decades – but how much of the cost is going to be borne by the country’s already hard-pressed small firms?

THE BIG FEATURE CONTINUED FROM PAGE 7 HE idea that many millions of Britons have made inadequate provision for their retirement is a long established and widely held truism. Our cash-strapped Treasury is facing an ever growing cost of funding the £60bn annual state pension bill – a figure that can only rise as governments seek to improve the basic living standards of elderly people and the number of retirement-aged people continues to grow. Furthermore, government departments that employ lots of people, whether they be police, doctors, nurses, military personnel, teachers, local authority workers or civil servants are finding that an increasing proportion of their annual budgets is spent on funding pensions. The same is true in the private sector, where poor investment returns, a solvency crisis and rising longevity has forced many companies to bring an end to traditional final salary pension schemes, replacing them instead with defined contribution schemes, a change that has shifted risk from companies to employees. According to the Office for National Statistics, the number of people who have reached or exceeded the state pension age rose from 18.4% to 19.5% of the population between 1992 and 2010, and this will rise to 21.8% by 2033. The rising figures come despite the fact that the state pension age for women is set to rise to 65 by 2017 and will thereafter rise to 68 for both men and women. Worse still, a total of 11m working-age Britons have made no provision for retirement beyond relying on the state pension. One measure that is about to come into force to address this problem is automatic enrolment, which makes it easier for more people to join work place pension schemes and save for their retirements. The new rules require all employers to enrol their workers into a workplace pension scheme if they are not already in one. At present, many workers fail to take up membership of already available pension schemes, even though they are entitled to do so. Automatic enrolment is meant to overcome this inertia. If an employer already has a pension scheme, whether that be a defined benefit scheme or a defined contribution scheme, employees will be enrolled into it and the necessary deductions made through the payroll, unless the employee actively opts out. In other words, inertia will result in a pension rather than nothing, as it does at the moment. Employers have to automatically enrol workers who are not already in a pension scheme and who are at least 22 years old. Automatic enrolment applies only to those beneath the state pension age and who earn more than £8,105 a year. Those that don’t automatically qualify will still have the right to join a scheme if they tell their employers they want to do so. We are just a few weeks away from the start of the new scheme,

Facing changes . . . Unite union strikers sporting masks of Unilever chief executive Paul Polman, outside a plant on the Cheshire/ which is due to start in October. It will be phased in over five years. However, once enrolled, employees don’t have to stay in the scheme. It is possible to opt out at any time and for contributions to be refunded. The Government hopes the new scheme will help address the slump in retirement savings that has become apparent since the start of the credit crunch and throughout both recent recessions. Research by the Department for Work and Pensions shows a drop of 15% in employees’ pension saving since 2007. Only a quarter of private sector employees are active members of their employers’ pension scheme

in Britain today, down from a third in 2007. In addition, only 31% of private sector organisations currently offer any pension provision for their staff, down from 41% in 2007. According to the DWP, 45% of firms without a current workplace scheme intend to enrol all their employees into NEST, the National Employment Savings Trust. A further 11% say they will set up their own scheme, while 5% say they will use a combination of both. Pensions minister Steve Webb said: "Automatic enrolment into workplace pensions will start the monumental shift we need to get millions more people in Britain saving for their retirement.

"It’s a major change for business, too, especially for firms that don’t currently offer pension schemes for staff, and it is good news that so many say they will use NEST. NEST is designed around the needs of people who are new to pension saving, with low charges. “We expect around half of all new savers to be NEST members, including many low-paid and part-time workers, women and young people, who will get a contribution from their employer for the first time." Not everybody is so enthusiastic about the automatic enrolment. The Federation for Small Businesses (FSB) has described it as an “extortionate

expense” for its members. FSB says pension legislation will cost small firms “at least” £2,550 a year, but the true cost could be much higher. The reforms set minimum employer contributions, starting at 1% but rising to 3% by 2017. As a result, the FSB calculates that the average small company – those with four employees earning an average salary of £25,000 – will pay at least an extra £2,550 per year in administration and pension costs. It has argued that firms of this size have not been exempted from the rules. It argues that the changes are too complicated for micro-businesses to put in place. The FSB has also criticised the

THE BIG FEATURE

Staff will opt out, claims freight boss

Chris Hackett talks to a pensions reform sceptic

North Wales border, in a demo over company pensions reform “excessive” £400 fines set to be levied on companies that fail to comply with automatic enrolment rules. FSB policy chairman Mike Cherry said: “We are concerned that employers will be penalised for minor errors, as opposed to deliberate non-compliance. We have always advocated that a light-touch approach would have been far more appropriate. “For example, if there must be a fixed-penalty notice for a first mistake, the level that is currently being introduced of £400 seems somewhat excessive. The figure should be much lower.” A spokesman for The Pensions Regulator says employers will receive several warnings before

any fine is issued. He said: “We are working hard to help all employers comply with their new duties and communicating directly with them 12 months before their staging arrives. Our focus will be on persistent or intentional non-compliance. “The regulator will issue fines to ensure employees receive the pension contributions they are due in law. Before applying a fine, we will notify the employer they are in breach of the law, providing them with the opportunity to rectify the breach.” Despite its objections, the FSB has struck a deal with Scottish Widows to provide an easy-toadminister pension fund service to small firms.

TIM RHODES, of Speke-based Skypark Freight, thinks small companies will be badly hit by the Government’s new automatic enrolment scheme. The scheme, which will begin in October, will start to automatically enter employees into a private pension for the first time. Mr Rhodes is still waiting to hear what date his company will be expected to participate, but said his eight employees were likely to opt out of the new system. “I’m a bit sceptical,” he explained. “We’re being forced to give money to a company we have no control over. I’ve asked the staff if they’re interested and most have said no.” Mr Rhodes accused the Government of “pretending to do something” and said small businesses had received little to no support from this government or previous governments. He said: “The whole system is appalling. It is very difficult to run a company because of the Government’s ideas.” Maternity leave was another area Mr Rhodes cited as being problematic for small businesses. He said: “Time off for maternity is unworkable for us. We can’t afford to have anybody go off for six months.” Mr Rhodes warned that if similar policies continued, small businesses will just “retire and give up”. A recent survey by insurer Aviva found that nearly 70% of workers are “unaware” of the new automatic enrolment system. The Government will launch a television campaign in September in order to try and tackle the ignorance surrounding automatic

Skypark owner Tim Rhodes – says small firms like his have been given little support to help with auto-enrolment enrolment. Up to 10m people will be placed into schemes under the system, but government estimates suggest between 2m and 4m will choose to opt out. Aviva echoed some of Mr Rhodes’s concerns, saying automatic enrolment will have cost implications for companies. Their report also found only 33% of employers thought a pension scheme was valuable, with just 16% of employees saying the same, citing more immediate monetary needs as a reason for not joining a scheme before now. The Pensions Regulator has provided advice for employers on how to prepare for the new system. The guide advises employ-

ers to make themselves aware of the date they must act, to assess the workforce’s current pension arrangements and to communicate the changes to all workers. Keeping records at all times, employers are required to enrol their staff onto the new scheme regardless of whether the employees wish to remain in the pension fund. It is then up to the employee to opt out, should they so wish. The Pensions Regulator’s website also provides details of dates of when companies are required to act, which is dependent on the number of employees. All companies are expected to be completed by 2018.

Prison officers reject working until 68 PRISON officers have rejected the Government’s final offer on controversial changes to their pensions. Members of the Prison Officers Association (POA) voted against the reforms by almost 9-1, in a turnout of 28%. The union described the Government’s proposals as

“unacceptable”, saying they would force prison officers to work until they were 68. Ministers were urged to hold further talks over pensions and to secure additional funding from the Treasury to help resolve the long-running dispute. Steve Gillan, general secretary

of the POA, said: “This is a massive rejection of pension changes by a loyal, hard-working workforce who protect the general public. “I do not believe the general public will want to see prison officers being forced to work until 68 years of age. The POA will continue to

campaign for fairness and will not rule out further action.” POA chairman Peter McParlin added: “The ballot result is clear and unambiguous. The POA will not allow politicians to compromise the health and safety of our members and the prisoners and patients in our care.

THE BIG FEATURE

The economic cost of longer Life in the slow lane: a passenger on the cruise ship Saga Sapphire taking it easy, but will more of us have to work for longer in the future?

Experts fear funding vacuum will undermine ambitious vision for reform contained in social WHAT does an ageing population mean for the economy? While living longer is a goal many would aspire to, others see it as a threat to the economic wellbeing of working age people who will have to foot the bill for the increasing cost of state pensions, social care and healthcare. Improved longevity has already resulted in the closure of many company pension schemes and the state pension age has been increased. One economist claimed that an ageing population was a bigger economic threat than the financial crisis. When David Lloyd George unveiled his people’s budget in 1909, which introduced the first state pension, average life expectancy was around 50. One-third of men and 40% of women didn’t even reach today’s

retirement age of 65. When it was originally conceived, it was never anticipated that the state pension would be anything more than a modest provision for the last few years of life. Today, men and women who reach 65 years of age are expected to survive into their mid to late 80s, resulting in 20 years of retirement, which, of course, needs funding. The trend of greater longevity is going to continue into the future, making reform to the pension system unavoidable. We are all going to have to accept the need to carry on working into later life. According to actuaries at accountancy firm PricewaterhouseCoopers (PwC), someone born today is unlikely to receive their state pension until they reach 77. Their children will be working into their mid-80s.

The last Queen’s Speech outlined plans that the state pension age will be linked to longevity, after increasing it to 67 by 2028. PwC projected it will have to rise again to 68 soon afterwards, by 2031. This will affect those aged 48 or younger now. People in their late 30s today can expect to wait until they’re 70 to receive their state pension. PwC’s projections are based on the rate the state pension age has been accelerating and analysis of future life expectancies, taking into account recent figures from the Office of National Statistics that one-third of babies born in 2012 are expected to survive to celebrate their 100th birthday. PwC’s research highlights that, while people born today will be working for longer, increased life expectancies mean they can expect to spend as long in retire-

ment – around 20 years on average. Raj Mody, head of pensions at PwC, commented: “Many people born today face working from 17 to 77. Most people will want to stop working sooner but may not be able to afford to bridge the gap to the start of their state pension. “The rising state pension age puts even more pressure on people to save. “Even those people in middle age today whose state pension age might shift by a couple of years may want to start revising their plans now.” The gradually rising state pension age could be problematic for employers. An ageing workforce could have an impact on job promotion opportunities for younger people, for example. Employers will need to revise the benefits they currently offer their

employees. The overall cost to Britain’s public finances of increasing longevity can be seen in figures supplied by the Department for Work and Pensions (DWP). In 2011/12, the DWP spent a total of £90bn on state pensions, pension credits and other pension benefits, representing 5.7% of the country’s total economic output. These figures are set to rise to £151bn by 2031/32, representing 6% of output, and will reach £291bn by 2051/52, representing 7.1% of output. As well as medical services, the Department of Health is also responsible for social care. In July, it published proposals for changes to social care provision in the UK aimed at coping with the rising cost of improved life expectancy. The Care and Social Support White Paper proposed switching

THE BIG FEATURE

Government plans simpler flat-rate pension scheme

New system needs to make it safe to save, says pensioner group

life

Picture: JASON ROBERTS

care White Paper funding from the NHS to social care as part of a preventative health strategy, but there are critics who say it’s not enough. Richard Humphries, at healthcare think tank The King’s Fund, said: “There is a financial vacuum at the heart of these proposals which undermines the bold and ambitious vision in the White Paper. “'It is now unlikely that action to reform care funding will be taken this side of the next general election. The transfer of £300m from the NHS will help in the short term, but robbing Peter to pay Paul is not a sustainable longterm solution at a time when the NHS is facing the severest financial challenge in its history. “The consequence of indecision will see a widening gap between the care people need and what is available.”

THE current state pensions system “would baffle Albert Einstein”, the pensions minister has said as figures showed that some pensioners are receiving at least £200 a week more than others. Huge differences in the “pensions roulette” system, which could add up to £10,000 a year, are occurring because the level of basic and additional state pension pay-outs can widely vary under the “complex” system of regulations, the Department for Work and Pensions (DWP) said. According to DWP figures, state pension income varies from about £7 a week to £230 a week. Around 130,000 people receive £7 or less a week and a similar number get £230 or more a week. The Government plans to replace the current state pension system with a simple flat-rate state pension for new pensioners set above the level of the means test, estimated at about £140 a week. Further details of how the Government plans to simplify the system will be set out in a White Paper later this year. A landmark scheme to automatically enrol up to 10m people into workplace pensions will begin this October, starting with larger companies, as part of plans to tackle the pension savings crisis amid concerns that people are not putting away enough for their later years. Pensions minister Steve Webb said: “The range of state pension pay-outs at the moment is simply staggering. The current system is so complex it would baffle even Einstein. “Worse, if people have no idea what they will get, they can’t make sure they have enough savings for their retirement. “We can’t go on playing roulette with pensions. “A flat-rate single-tier state pension will restore simplicity and give people certainty instead of chance.” Ros Altmann, director-general of over-50s group Saga, said the state pension system should stop “penalising” women. She said: “The reality is that it is predominantly men that get the highest amounts and women the lowest. “We welcome the prospect of an adequate state pension that would lift most people above means-testing.

Pensions minister Steve Webb talks to a concerned pensioner during a visit to FACT, in Liverpool Picture: GARETH JONES “The new pension system should be fairer and simpler, and no longer treat women as second-class citizens, but we still need to see the details of the new framework and how the Government plans to implement it in order to ensure fairness.” Dr Altmann described the UK’s state pension system as “by far the most complex in the world” and said radical reform was long overdue. She said: “Almost no-one understands it and it is not fit for purpose. “It fails to provide an adequate pension income for millions of Britain’s pensioners, particularly women and low earners.” She said that the current system relies too heavily on mass means-testing which often penalises those who try to save for their retirement. Dr Altmann said: “As we are about to

automatically enrol all workers into a private pension scheme, it is vital that the state pension system makes it safe to save.” The UK Government currently offers pensioners a bewildering array of various benefits in retirement. There are three separate parts. The basic state pension, based on National Insurance contributions, is a flat-rate state pension payment paid in full for anyone who has a 30-year National Insurance contribution record. In 2010, over half of women retirees had less than the full Basic State Pension. The additional state pension, also based on National Insurance contributions, is earnings-related and was introduced to help workers without an employer final salary pension. There are also pension credits and other benefits based on age and income.

Insurers call for overhaul of complex pension charges PLANS to improve transparency over pension charges to help boost confidence in the system have been announced recently by the Association of British Insurers (ABI). The ABI wants to develop an industry protocol by the end of the year to ensure that all workers receive regular, clear and meaningful information about costs as their funds build up, which would also help them to compare

schemes more easily. It said that, for “too long”, people have not had enough information about what they are paying and greater transparency about costs would encourage them to remain in pensions. The ABI has written to the Pensions Regulator and the Financial Services Authority to help it work on a plan to make the system more consistent. The call comes just

weeks before the Government’s landmark initiative to automatically enrol up to 10m people into workplace pensions, starting in October with larger firms, amid concerns that people are not putting aside enough for their later years. The pensions system was criticised by the Institute of Directors in April, which said that it must be radically simplified, as it is being

bogged down by a “forest of regulation” which is putting people off. The ABI wants a “consistent and simple” disclosure of charges to employees across the range of pension schemes, which are often subject to differing rules. It said existing workplace schemes should ensure employees are provided with clear and full information on charges to help them make decisions.

THE BIG FEATURE

Automatic enrolment is not enough

Experts warn that workers still face uncomfortable retirements, reports Chris Hackett THE Government’s new automatic enrolment pension scheme will not provide a comfortable standard of living for retirement, according to Jon Dixon, corporate advice manager at financial advice firm AWD Chase de Vere (AWD). From October, millions of workers without pension provision will begin to be enrolled automatically into a private scheme for the first time. The Government’s aim is for all firms to implement the scheme within five years. The initiative plans to tackle the growing problem of workers without private pension schemes. Currently, 28% of Britons over 50 have no pension plan in place and are set to rely solely on the state pension at retirement. However, Mr Dixon warns the new automatic enrolment does not go far enough to provide workers with sufficient income for a comfortable retirement. Figures by AWD suggest a 20-year-old who started investing in October and retired at 66 could potentially receive less than £1,170.97, the equivalent of £500 per month today, after inflation. Additionally, a 40-year-old starting on the scheme could receive less than £274.22 per month once retired, £170 in today’s money. These figures compare with the current average monthly income from a private pension of £624. Mr Dixon stresses that, while automatic enrolment could provide a great foundation for people's retirement planning, employers should be encouraged to support their employees by making more meaningful contributions in order to give them the standard of living they would want in retirement. AWD’s research is backed by a recent report by the Workplace Retirement Income Commission, which found up to 9m people face a “bleak old age” and their pensions will not allow them to “adequately exist” upon retirement. Mr Dixon added: “Those with a longer time-span still face the prospect of muted investment returns, inflation eating into the spending power of their money and depressed annuity rates.” Savers should make additional pension contributions and invest regularly in cash, stocks, shares and/or ISAs, according to Mr Dixon. A report by the National Institute of Economic and Social Research found just 31% of private sector organisations offer any pension provision for their staff, down from 41% in 2007. The Government hopes automatic enrolment will help tackle the growing crisis over pensions. Allan Maxwell, director and chartered

financial planner at Corporate Benefits, said while it was a good thing to get people saving, automatic enrolment was not going to help anybody over the age of 25 make up the short-fall. He stressed the only options were to pay more contributions, work longer or not retire completely, with pensioners perhaps taking up part-time employment. Minimum contributions will begin at 2% by the employee and 1% by the employer, gradually increasing to full contributions of 8% and 3% respectively by October, 2018. These contributions are low compared to traditional company pension schemes, which typically involve total contributions of 20%. Mr Maxwell also called for more public awareness on pensions. He said: “Financial education in this country is appalling. People are too busy living for today and not preparing for retirement.” Employees are entitled to opt-out of the scheme, receiving a refund on any deductions if opting-out within one month of enrolment, but Mr Maxwell said people should prepare for retirement. The new system has received further criticism because of the £8,105 threshold before the automatic enrolment applies. The Trades Union Congress (TUC) has called for this to be dropped to £5,564 in order to include lower-paid workers. Robin Hames, of insurance advice firm Bluefin Group, said although low earners present a “difficult dilemma”, there is assistance available for people. He said: “Voluntary organisations such as the Pensions Advisory Service can provide independent information and guidance and it is vital that employees are made aware of such support as auto-enrolment commences.” Employers with more than 120,000 workers must complete the automatic enrolment by October 1, 2012. Smaller companies will gradually participate, with the latest deadline announced being July 1, 2014, for companies with 50-89 employees. North West accountancy firm Mitchell Charlesworth has warned small companies must start preparing for the added administrative and financial burden they will face when automatic enrolment comes into place. “The worry is that many businesses are not ready for the changes and may not be able to afford the new contributions,” said Mike Wall, a pensions specialist at the firm. “Firms must ensure they get a scheme in place that is affordable and suited to their business model. Acting now will save a lot of headaches in the future,” Mr Wall added.

Automatic enrolment could leave many counting the pennies in retirement

New government scheme could widen gender inequalities in retirement

Robin Hames, of Bluefin

THE pensions gap between men and women looks set to increase due to the new automatic enrolment scheme, a consultancy has warned, as the new rules exclude many lower paid and parttime workers. Three-quarters of all UK part- time workers are women, many of whom do not reach the

minimum income of £8,105 for automatic enrolment. Those with fluctuating earnings could find they are eligible for the pension pot one month but not the next if they do not work enough hours. Robin Hames, head of technical at Bluefin Consulting, said, “We believe [automatic enrolment] will succeed in bringing millions

more savers into the fold, but it will inadvertently be biased in favour of men. “This is because they are more likely to earn over the minimum threshold, and part-time workers, who are mainly female, are more likely to miss out.” Figures show women already have pension pots worth just

two-thirds of their male counterparts, partly due to lower contributions. The Trades Union Congress has called for the threshold to be dropped to £5,564. This would include an extra 865,000 women in the scheme. The Government’s flat-rate state pension next year will attempt to close the gender gap

in pensions but Mr Hames stressed this could take a long time to be effective. He said automatic enrolment will make the gap wider: “What’s clear is that financial inequality is being stored up for future generations of women. Automatic enrolment, as it currently stands, is unlikely to change this.”

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ASK THE

EXPERT

With Peter Mooney, head of employment law at ELAS

A MEMBER of staff returning from maternity leave has made a request for flexible working to reduce the number of days worked from five per week to two. We invited the employee into the office for a meeting and we have refused her request on the grounds that the proposed new hours will have a negative impact on the quality of service we provide, that the person fulfilling the job role needs to be contactable during normal office hours and that a job share would be too costly for our organisation in terms of salary and additional management hours. She has stated that she is going to appeal against our decision. Are we liable for a sex discrimination claim or to be taken to an employment tribunal?

‘Employees have the right to request flexible working’

REQUESTS for flexible working are very common among employees returning from maternity leave. Eligible employees have the right to request flexible working and, by law, employers must take all requests seriously. The Employment Act, April, 2003, sets out clear procedures that employers are required to follow, which includes the following: Employers who refuse the right to flexible working must state at least two of the eight specified legal business reasons that are permitted for rejecting a request. These include: burden of additional costs; detrimental effect on ability to meet customer demand; inability to reorganise work among existing staff; inability to recruit additional staff; detrimental impact on quality; detrimental impact on performance; insufficiency of work during the periods the employee proposes to work; and

planned structural changes. These must be provided to the employee, in writing, which also states their right to appeal against the decision. In this case, you have stated three of the above reasons, and have therefore met the grounds for a refusal. An appeal, however, could look at how genuine the reasons stated may be and whether or not these could be overcome by alternative arrangements. There would not be grounds for a claim if your decision can be objectively justified. However, it is important to consider any recommendations put forward by the employee who may wish to prove that they could perform the job role to the same standard within the proposed reduced hours – or they may be open to a lesser reduction of hours – four or three days, rather than two days per week. Employees have a legal right to appeal against your decision on two grounds: to bring some additional information to the table that may not have been apparent during the initial decision, or to challenge a fact that the employer gave in their business grounds for the rejection. Employees cannot appeal if they simply disagree with your decisions – they must be able to substantiate their challenge. As long as employers follow the procedures outlined in the Employment Act, they have genuine grounds for refusal and that the employee does not suffer any detriment based on their application, (such as be refused a promotion or pay rise or negative behaviour in the office) then there should be no grounds for a complaint to an employment tribunal. For further information or advice, call the ELAS Advice Team on 08450 50 40 60. ■ IN ASSOCIATION with ELAS

Mixed reception

Lawyers see drawbacks and opportunities as solicitors’ HE legal profession is undergoing changes affecting the ownership structures of firms. Traditionally, law firms have had to be owned and managed only by lawyers. But a new entity, alternative business structures (ABS), has been licensed by the Solicitors Regulation Authority (SRA) which opens the way for a business providing regulated reserved legal activities, but which has either, or both, nonlawyer owners and managers. The new structure also allows firms to float all, or part of, the business, and raise funds from investors. The non-lawyer ownership and management of legal services providers – under the Legal Services Act 2007 – was one of a significant raft of reforms designed to liberalise the regulation and provision of legal services in England and Wales. The reforms are aimed at increasing competition and providing consumers with greater choice and access to legal and related services. In March this year, the SRA announced it had licensed its first three alternative business structures: Co-operative Legal Services; John Welch and Stammers; and Lawbridge Solicitors Ltd. However, Donal Bannon, a partner at Liverpool law firm Morecrofts, is sceptical. He said despite the attention given to ABS’s, there has been a slow take-up since the SRA’s approval. Mr Bannon said: “It was said that the reforms would increase competition and provide consumers with greater choice and access to legal and related services. “The concern for the legal profession has been whether external investment from non-lawyers would eradicate the traditional professional ethics of putting one’s client’s interests ahead of any personal interest or pursuit of profit.” He added: “While a well-known North West England-based firm has gone down the ABS route and has attracted significant external investment, there does not appear to be much appetite at present from the majority of local firms, who are adopting a ‘wait and see’ approach. “In fairness, many firms would not attract external investment in any event, either because of the nature of the work they do, or because the underlying business cannot be made more profitable to make a sufficient return on the investment.” And he flagged up potential problems for new entrants into the legal world under the new arrangements. “The Co-op Bank decided to

enter the legal market recently, but the broadcasting of the Channel 4 investigative reporter programme, Dispatches, highlighted the poor standards of care and respect found in its funeral care division. “In my opinion, the coverage merely adds to the suspicion, commonly held among my peers

in the legal fraternity, that any commercial owner’s pursuit of profit will not compare favourably with that of a caring profession owned and managed by lawyers.” In contrast, Andrew Holroyd, managing partner with Liverpool solicitors Jackson & Canter, welcomes the shake-up. “It is hard to argue that this

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PROFESSIONAL SECTORS

for ‘alternative’ legal option

licensing authority allows change to firms’ management and ownership structures

Andrew Holroyd, with Amanda Holden, at the QualitySolicitors initiative launch, at Jackson & Canter’s Liverpool office; and, inset, left, Donal Bannon, of Morecrofts Main picture: GAVIN TRAFFORD

development is contrary to the public interest. “Legal services will be more competitive, but competition usually brings advantage to service users. “I see no reason why the safeguards the public enjoy when they consult a lawyer will be diminished.

“Indeed, it is the job of the SRA to ensure that they are not.” On the subject of how lawyers already in business should react, he added: “Do we hope, like King Canute, that the tide will not come in or, as any sensible business would do, adapt to compete with and, indeed, outperform these new upstarts?

“I know where Jackson & Canter stands. “We joined the first UK legal brand QualitySolicitors and have seen ourselves promoted in adverts on prime time TV. “QualitySolicitors has already grabbed a substantial slice of the legal services market. “If, through this new brand, we

concentrate solely on what our clients want and deliver real quality legal services, we have nothing to fear. “We have concentrated on the client. We offer Saturday opening, fixed fees for almost all work, new collaborative IT-enabled legal processes online, and friendly, professional lawyers who have got

off their legal high horse. I have no doubt we will succeed and, indeed, continue to increase our market share. “As we move into this brave new world, we stand or fall by how good we are at what we do as we meet the needs of our clients in their personal lives and in business.”

A wealth of investment ideas At Investec Wealth & Investment we offer expertise and out of the ordinary levels of personal service. Our heritage extends as far back as 1827 but our eyes are firmly fixed on your future. Located in 11 offices across the UK, we are well placed to offer one-on-one insight and expert advice on your investments, pensions or other financial matters. The value of investments and the income derived from them can go down as well as up and you may not get back the amount that you have put in. Please visit our website, call David Owen on 0151 227 2030 or email david.owen@investecwin.co.uk investecwin.co.uk

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THE BIG INTERVIEW

Captain of the ‘supertanker’ BY TONY MCDONOUGH

▲ ▲

As chairman of Liverpool City Region Local Enterprise Partnership, Robert Hough offers 40 years’ experience of business and economic development

THE BIG INTERVIEW . . . ROBERT HOUGH CONTINUED FROM PAGE 17 S YOU might expect from the chairman of the organisation responsible for Merseyside’s economic wellbeing, Robert Hough likes to be upbeat. He is genuinely enthusiastic about what he calls the “game-changers” – the major infrastructure projects planned for the Liverpool city region. But every now and again he can’t help but acknowledge not only the current grim economic picture but also the fact, not yet fully grasped by the general population, that the pre-2008 consumer booms may not be coming back. “The next age will not be an age of consumption,” said Hough, who since March this year has chaired Liverpool city region’s Local Enterprise Partnership (LEP). “The recovery will be slow and I don’t think it will scale the heights of the previous peaks which is good because they were unsustainable.” LEPs were the brainchild of the coalition Government and were announced shortly after the 2010 General Election. They were to replace the regional development agencies (RDAs) which ministers felt were too expensive and not delivering value for money. LEPs suited the Government’s localism agenda – devolving power down to smaller geographical areas – and, unlike the RDAs, they would not have large budgets to spend on major projects. Instead, they would as a “conduit” for cash from central government pots such as the Regional Growth Fund. Scrapping the RDAs was seen as a controversial move and Hough is able to offer a perspective on both models as he was also chairman of this region’s RDA – the Northwest Development Agency. He said: “LEPs are a different approach to that of the RDAs. “The view was taken that some of the RDA regions were not natural economic areas, although I don’t think that applied to the North west. “Businesses do not recognise administrative functions – it doesn’t matter to them whether they are in this borough or that borough. “However, to have a smaller, more compact area where there can be closer collaboration is an eminently sensible approach.” In the spirit of localism, the Government gave each area of England a certain degree of freedom to define how their LEPs would be structured and how they would operate. The Liverpool city region LEP wasn’t formed from scratch. Instead, what was known as The Mersey Partnership (TMP) was converted and renamed into the new body. TMP, which itself grew out of the old Mersey Tourism Board, had been responsible for the economic development of Merseyside for two decades, so turning it into an LEP seemed to make perfect sense.

It covers an area with a £22bn economy, 48,000 businesses and 1.6m residents. One of its major strategic advantages was that, as well as having all six Merseyside local authorities on board, it also had hundreds of companies on its membership roll. This pre-existing link between the public and private sectors, says Hough, gives the new body a major strategic advantage over most of the other LEPs across the country. “It is unique because it is a members’ organisation – 450

members or thereabouts,” he added. “The LEP’s purpose is to drive forward economic development, to increase jobs and productivity and to help rebalance the national economy. “The shadow LEP board, which has been in place since late 2010, decided to adopt TMP as the LEP. “TMP had been around for 20 years at that point and had done some great work on tourism, inward investment and economic development in the city region. “So, to have that vehicle to

adopt and use to help carry the LEP was very fortunate. With its existing members, it created this unique structure. “The members understood business and we also had a partnership with the local authorities – they were members, too. So it meant we immediately had a partnership embracing the public and private sectors. “It is a symbiotic relationship of real substance. “The LEP is formulating and articulating an economic development strategy, those

businesses drive it forward and the LEP itself creates value for those business members. “It is a totally rounded interconnected relationship. “Many other LEPs around the country will not have that substance. They won’t have that membership dialogue.” Over the past couple of years, TMP has developed an economic strategy concentrating on four sectors it was felt had the best potential for future growth and the creation of jobs. They are: superport, knowledge

THE BIG INTERVIEW . . . ROBERT HOUGH

Hough sees Liverpool 2, main image, as a ‘game-changer’ for the city region. Inset, top, Hough with Lord Heseltine; and, inset, bottom, with business minister John Hayes and Liverpool Mayor, Joe Anderson

that will be massive – and it will produce jobs not just in the port but in the wider supply chain. “I think the money is there. Due diligence has to be done and the commercial case has to be proved, but these are damned good schemes. “I think banks want to lend to to schemes which provide a dominant position and a trading opportunity.” OUGH is a former chairman of Liverpool John Lennon Airport and has been a director of Peel since

1986. In his 40-year career, which started as a lawyer in Manchester, he has held numerous other directorships. In the 1990s, he chaired Manchester’s Commonwealth Games, and in 2004 served as High Sheriff of Greater Manchester. In 2009, he became chairman of the NWDA and in the same year stood down from the airport. He is quick to insist that there is no conflict of interest between his role with the LEP and his place on Peel’s board. He explained: “I have spent the last 20-odd years in Peel and other companies – I was also at the NWDA. “It helps in the sense that it builds my knowledge and experience, but it does not help in the sense that I would be able to give Peel an easier ride. “I am absolutely meticulous in not getting involved in any decision-making process that would in any way compromise me. I have learned about transport and infrastructure, about how government works and how business works, and that all must help. “It helps when people know each other because it means people will have more confidence in the project. “It helps to be able to have a conversation more easily, but it does not make the disciplines any less rigid. “Since I have been here the situation hasn’t arisen where I have had to step back. “It probably will eventually but when it does it will be dealt with professionally and meticulously.” ESPITE only being in existence since March, the Liverpool city region LEP has been busy in the last few months having already been involved in events to showcase the region’s expertise in manufacturing and in the offshore wind sector, as well as publishing its business plan. The offshore wind sector, in particular, is seen as key for Merseyside and covers three of the four main growth sectors – low carbon, superport and knowledge economy. In mid-June, the LEP along with shipbuilding and engineering firm, Cammell Laird, Peel Ports and Wirral and Knowsley councils, attended the Global Offshore Wind 2012 conference in London. And, in July, the sector received a major boost when the Government approved the Liverpool city region as a Centre for Offshore Renewable Engineering (CORE).

economy, visitor economy and low carbon and they now form the basis of the LEP’s strategy. Of the four, it could be argued that superport offers the biggest potential for growth and jobs. National media sometimes inaccurately state that Merseyside’s great maritime days are behind it – that myth even persists among parts of the local population. Yet, despite tough economic conditions, the maritime sector could be said to be thriving– it comprises some 1,700 companies

employing more than 28,000 people. It contributes around £2.6bn to Merseyside’s annual economic output – around 15% of the total. For the last few years, the Port of Liverpool has annually handled more than 30m tonnes of cargo – as much as at any time in its history. And when the Manchester Ship Canal is included in that, the figure rises to more than 40m tonnes. Many of the other LEPs will have visitor, low carbon and

knowledge in their mix – but few will have a fantastic natural resource similar to the River Mersey. Property and ports giant Peel, of which Hough is a non-executive director, has ambitious plans to create a deep water facility within the North Docks which would enable the Port of Liverpool to handle the world’s biggest container ships. Called Liverpool 2, the scheme will cost around £300m and Hough is confident the money can be raised.

He said: “Superport capitalises on a natural asset – the river and the deep-sea port. “This is the first port of call coming from the Americas into the west coast. It also has a the capability as a big employer. We are looking to build an economic fortress here. “The port has the attraction for trading nations wanting to get goods into the UK and into mainland Europe and then it can be a big employer – so the boxes are ticked. “If Liverpool 2 goes ahead, then

CONTINUED ON PAGE 20

THE BIG INTERVIEW . . . ROBERT HOUGH Offshore wind can be a huge growth sector for the city region, says Hough, inset

CONTINUED FROM PAGE 19 Merseyside is the sixth to be awarded CORE status and the first on the west coast. Approval followed a submission by the LEP, supported by Cammell Laird, Peel Ports and local authorities. Centres for Offshore Renewable Engineering are partnerships between central and local government and LEPs that ensure businesses looking to invest in manufacturing for the offshore renewables industry receive the most comprehensive support possible. At the time of the announcement, Hough said: “This is fantastic news and is testament to the work undertaken by partners over the last two years to place the city region at the forefront of the UK’s offshore wind industry. “The Liverpool city region has long been recognised as a centre of excellence for marine-related engineering through the worldrenowned Cammell Laird shipyard.” CORE status, he says, demonstrates the value of the work that was started by TMP and is now being continued by the LEP. He added: “Low carbon all started because people here a few years ago saw the prospects of low carbon as a developing sector. “They saw the expertise we had in places like Cammell Laird and they did an exercise on those prospects. “That encouraged companies in the sector to form a cluster and then the professionals followed behind. “Suddenly, you have a nucleus of knowledge that is helping to build a sector. “The same thing happened with superport.

“Core status is a badge. We are the only place to have it on the west coast of England. “This gives us preferred status for inward investment into this sector.” NE of the main criticisms of Merseyside over the past few years is that there have been too many bodies and agencies involved in economic development. In particular, there has been the question of who is responsible for inward investment both across the city region as a whole and into the individual six boroughs of Liverpool, Wirral, Knowsley, Sefton, St Helens and Halton. As well as the local authorities taking a hand, there are also TMP and Liverpool Vision. Add to that mix now the newlyelected Mayor for Liverpool, Joe Anderson, who is keen to be seen as a key player in the drive to bring investment into the city. Hough acknowledges there is still some overlap but insists the structure is getting better and that all parties are co-operating and communicating. He said: “A city Mayor with an effective LEP is a tremendous combination. “It means we have the right credentials to tap into more Government funding. “We tick all the right boxes here now and I think apart from Bristol, there is no other city in England with those credentials. “We collaborate and co-operate on a personal basis very strongly. “We recognise that Liverpool City Council’s affairs or those matters within the city boundary are just that. “But those areas that have an economic development impact on the wider city region fall within

the remit of the LEP. So we complement each other. But we also recognise that the issues surrounding World Heritage and Liverpool Waters are matters for the city council to take a view on.” Potential investors from overseas will often initially contact UK Trade & Investment (UKTI), the Government’s inward investment arm. And Hough says, when UKTI gets an inquiry about the Liverpool city region, then it is the LEP who will get the first call, but adds that some investors may go direct to the individual boroughs. He explained: “With inward investment inquires, these are very complex positions we are working towards and we aren’t there yet. In a perfect world, you would have one simple body working for the city region as a whole – a one-stop shop with a sign above the door where people could just walk in. “If the investor has a geographical preference, then it might go to that particular local authority, but if it has a more central presence in which we are strong on the four key growth sectors then they will come straight to us. “UKTI would regard us as the primary investment agency for the city region. “It is still an evolving partnership but we have made substantial progress and it is still capable of further refinement and evolution. “Recently, Wirral produced a brochure on their own inward investment credentials focusing on Wirral Waters. “That is not surprising – they are bound to do that. “The brand of Liverpool is agreed. It is a city with a huge global reputation. It is just a question of where the first point

of contact is. And an investor may already know where they want to be – they’ll know that life sciences is strong in Speke, financial services in the city centre and if it’s something to do with manufacturing then it could well sit in Knowsley or St Helens. “There are natural ports of call before you even start the conversation.” HEN pressed for which two projects he believes will be the biggest “gamechangers” for the city region over the next few years, he picks Liverpool 2 and the redevelopment of the Royal Hospital in Liverpool. The latter will include a large biocampus that is seen as a huge boost for the city region’s life sciences sector. It is all, he says, about “jobs, jobs, jobs”. “If you asked me in one sentence what the LEP does, I would say it identifies strategies and then applies resource and investment appropriately,” said Hough. “Then we can build alongside that skills, transport and housing initiatives, then you have those supporting enabling qualities to make those prime movers operate most effectively. “We will provide a forum, we will provide knowledge and we will lobby. “I am very keen on delivery and economic growth but this is supertanker stuff. “It is not like you wake up one morning and suddenly discover penicillin. “It is about looking at longterm opportunities and driving forward those schemes and sectors that will deliver growth, and particularly jobs. “Those four growth sectors that

have been identified are what we should be concentrating on. “Within knowledge economy sits advanced manufacturing. “We have Jaguar Land Rover, Pilkington, Unilever and Novartis. We need to shine a stronger spotlight on the advanced manufacturing capability in the city region. “We would also like to drive forward the life sciences sector through the private sector, but ensure it has the intellectual oversight of the universities. “I sense in the city region that we have great vision, ambition and passion. “When I looked at the Olympics, I saw spectacle, atmosphere, passion – and that reminded me of Liverpool. “Very few places in the UK would aspire to the kind of events we have here. “Internationalisation of our economy is one of the challenges. We have a global galaxy of stars here among the big companies “The challenge is to improve the start-up of small firms and their longevity because there is no Business Link any more and so you have to find some mechanism that provides support. “There is no doubt there should be more small firms relative to the size of the city region. “We also want to reduce unemployment among young people – it is as high as 50% in some parts of the city region. “If you have something magical already here, then there is no point in trying to find something else to substitute it – we have to dig deeper into what we have got. “We must shine a spotlight on the sectors within knowledge economy, build on internationalisation, help SMEs and create employment for young people – they are the targets.”

ECONOMIC DEVELOPMENT

Population matters

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Liverpool is growing, according to Census figures. Alistair Houghton finds out why that growth is so important.

ECONOMIC DEVELOPMENT CENSUS 2011 CONTINUED FROM PAGE 21 HE news that Liverpool’s population is on the up is more than just a statistical curiosity – it is, analysts say, definitive proof that the city is on the up. As Liverpool’s reputation slumped, so did its population. As the striking chart to the right shows, the city has been shrinking for decades as it endured a painful economic decline. By 2001, the Census revealed that Liverpool’s population had hit a record low of 441,900. In the decade since, the city has undergone a transformation. The city centre has been reshaped, with Liverpool One putting it back on the shopping map and with dozens of apartment blocks bringing residents back into the city centre. The success of Capital of Culture year in 2008, meanwhile, reinforced Liverpool’s national and international reputation as a cultural hub. All that may have given those who live and work in Liverpool a warm, fuzzy feeling. But it can be hard to assess what difference that has actually made to the city – particularly given the fact that the post-2007 economic downturn has blunted the feelgood factor. Regeneration officials need, therefore, to examine long-term trends. And one key assessment of a city’s health is its population. So, when Census officials announced last month that Liverpool’s population in 2011 had risen 5.5% to 466,400, the news was warmly welcomed by Mayor Joe Anderson as a signal that the city was again being seen as a great place in which to live, work and invest. And Census success also has some positive financial consequences in the short term, as Liverpool’s deputy mayor, Cllr Paul Brant, told Post Business. “This growth is good news for two reasons,” he said. “First of all, it’s a sign of the economic regeneration of the city centre that more people are coming here to live and work – which is good, because it brings in more council tax to the area. It’s a sign of a thriving, regenerated city. “Secondly, because the Government grant to the city council – and about 80% of our money comes from Government – is calculated primarily by the population of the city. As a consequence, the increased figures will be reflected in that grant. “In previous Censuses, we’ve seen an actual decline in the number of people living in the city, which probably was a consequence of the difficult economic times the city has faced. It’s good news that we’re seeing this upswing.” Prof Michael Parkinson, director of the European Institute for Economic Affairs at Liverpool John Moores University, is a world-renowned expert on the regeneration of cities and has advised bodies from the European Commission to House of Commons select committees. He has studied Liverpool’s

POPULATION OF LIVERPOOL SINCE RECORDS BEGAN Population of Qatar Population of Cyprus

Population of Las Vegas

Population of Glasgow Population of Manchester

Population of Cardiﬀ Population of Iceland

Granted city status Great Irish Famine Unemployment at 30%

Toxteth Riots

Sefton

Wirral

How the population of the city region has changed from 2001 to 2011, according to Census figures. Top, the striking changes in Liverpool’s population economy for decades, and agrees a rise in population is good news. “People vote with their feet,” he said. “They go for jobs and economic opportunities. When there aren’t any, they leave. “When there are some, they stay or come back. “Quite simply – and this is not a Liverpool story, it’s a UK story and a European story – population measures how people see and feel about their economic prospects. It’s about signals. People are not moving away or

are coming back. It’s a sign that there is economic activity. “It’s a signal to the external investor that you could have confidence in this place. “If you have 40 years of population decline, it creates an impression that it’s a no-hoper.” Mike Palin, executive director for strategic economic development at Liverpool Local Enterprise Partnership (LEP), says that news of Liverpool’s population rise might help to change people’s views of the city.

He said: “The perception that Liverpool has a long-term decline in population resonates with the infamous Government reports released under the 30-year rule this year that talked about the ‘managed decline’ of Liverpool. “These figures show that wasn’t the right approach to take. “Cities recently have turned the corner in terms of their industrial change. “They’re now seen as centres for enterprise, where universities share wider economic benefits.

They’re places to be. Manchester has had a population increase. Sheffield has seen a resurgence. Cities have seen a resurgence in their economic prospects. “That’s what has led to people wanting to live there and to the increase in population. “There’s been investment in infrastructure, housing, and transport over the last 15 years or so, which has made a difference. “They’re now places where people want to move to.” Liverpool’s transformed city

ECONOMIC DEVELOPMENT CENSUS 2011

ENTERPRISING

THOUGHT

With Fiona Castela, project manager at Enterprise Europe Network North West

St.Helens

Knowsley

Liverpool Halton

centre has, says Prof Parkinson, been key to the city region’s recent growth. “Liverpool city centre is one of the drivers of the Liverpool city region economy,” he said. “It creates a huge amount of wealth and employment opportunities for a large number of people. You need that to succeed. “For that to succeed, it has to be not only a place where people work but also one where they live and play.

“You want to have a buoyant central population. That’s what Liverpool has done. A decade and a half ago, there were less than a couple of thousand people living in the city centre. Now it’s about 20,000.” HE city-region as a whole – encompassing Liverpool, Wirral, Sefton, Knowsley, St Helens and Halton – saw its population rise 1.8% to just over 1.5m over the decade to 2011.

SINCE the first ships left for America in the 1660s, trade across continents has made Liverpool and Merseyside the places they are today. And now, while the Port of Liverpool continues to be one of the busiest and most important trade routes in the country, it’s our culture, knowledge and expertise that are as coveted overseas as the tonnes of raw materials that pass through our waters. Whatever the product, it’s the drive, creativity and entrepreneurial spirit that has set the city apart throughout the centuries. What also makes Liverpool unique is the fact that the engine room of this success and growth is so often small and mediumsized enterprises of all kinds. Recent news shows the city is set to become home to the first ‘Enterprise Village’ outside of the US. It will identify start-up firms or entrepreneurs with the potential to reach a turnover of more than £1m and employ in excess of 10 staff during the three-year lifetime of the project. The vision and ambition of this venture really struck me because it ties in so well with what we at Enterprise European Network North West (EENW) are also so keen to nurture among the businesses we work with. Our service is all about helping businesses think bigger. We are funded by the European Commission to offer free and impartial support for small companies that deliver an excellent product or service locally, and working with them to take their offer to new markets in Europe. A great example is Wirral’s John Moreton, whose business Classic

Landmarks makes scale models of Merseyside landmarks. His lines include a beautifully detailed likeness of St Peter’s Church, Woolton, where The Beatles first met. John recently got in touch with us for advice on how to obtain a licensing agreement to begin trading with Europe, Japan and America. Our expert advisers worked with John to understand his products, aspirations and capacity, and then identified the European countries that would be his best bets. Immediately, we used our extensive database of contacts to promote Classic Landmarks, talk through John’s business plans with them, and begin to look for buyers and distributors overseas. While we don’t operate in the US and Japan, we also put John in touch with UK Trade & Investment (UKTI), which offers advice on trading with countries outside of Europe. As a result, it looks like consumers as far away as the Czech Republic will soon be able to get their hands on reproductions of some of our best-loved landmarks. Classic Landmarks is a great example of how, with the drive and have-a-go spirit of local entrepreneurs and our knowledge, skills and experience of the logistics and legalities of trading overseas, we can continue to show the world what Merseyside is made of. If you would like expert help and support from our advisers, go online to www.eenw.org or call us on 0844 259 8571, quoting code “LP”.

‘The city will have the first Enterprise Village outside of the US’

■ IN ASSOCIATION with EENW

Wirral and Halton both reported population increases, but Sefton saw its population fall 3.2% to 273,800 while Knowsley saw its population fall 3.5% to 145,900. Knowsley Council said it was waiting for more detailed information from the Census to be released later this year before it commented in detail on the numbers. Responding to the initial announcement last month, it said

CONTINUED ON PAGE 24

ECONOMIC DEVELOPMENT CENSUS 2011

Prof Michael Parkinson believes Liverpool’s population rise is a sign the city is on the up, while deputy mayor Paul Brant, inset, above, says the growth will also bring the city more cash Main picture: GAVIN TRAFFORD

CONTINUED FROM PAGE 23 simply: “We will use the Census information to help us plan services that can meet the needs of our communities. “We are pleased that Knowsley’s response rate increased from 90% in 2001 to 93% in 2011.” At the same time, Sefton council leader Peter Dowd said his authority would also be carrying out a detailed analysis of Census data. Responding to the population decline, he said: “It is clearly concerning, and it has implications from everything to the council tax base, to the number of school places that are needed. “There will be a range of issues. Has the increase in Liverpool taken people away from Sefton? If so, it would not affect the regional economy as much as if they have left the area. “If the percentage of people of pensionable age has gone up, that will affect services. “We are starting to analyse the numbers, and at the moment there are more questions than answers.” The population of the region’s individual boroughs is comparatively small. Liverpool’s population, for example, is

smaller than Birmingham’s figure of 1,073,000 or Sheffield’s of 552,700 – though those cities benefit from having suburban areas within their boundaries, rather than having them carved off as separate local authorities. Pulling the six boroughs together into Liverpool city region means, Prof Parkinson says, that the area has more clout. “Local government boundaries don’t fit the modern economy,” he said. “We’ve got to talk about the city region and the six boroughs. “People live in different parts and work in different parts. It’s not just people outside moving into the city centre – a lot of people from Liverpool now work in Halton, for instance. “We should never be talking about Liverpool on its own. We should be talking about Liverpool city region. “That’s what governments focus on. Increasingly, the successful cities in Europe are trying to work better at a city-region level. “Critical mass is crucial to punch your weight in a highly competitive global economy. You need to maximise all the activity and scale. If you’re too little you’re going to struggle. “If you look at Liverpool, it’s 466,400. If you look at the city

region, it’s 1.5m. It’s a big place. It punches its weight. It means more. “Scale is important. The bigger the place, the richer the mix of services, people and skills. “Agglomerated economies have more success and diversity. You don’t just want the port, or shops – you also want logistics in Halton, for example.” EWS that the overall population is on the up may be good news, but not everything in the garden is rosy. The city region’s population may have risen by 1.8%, but that is outstripped by other areas. Greater Manchester, for example, saw its population rise by 8.1%, while both West Yorkshire and the West Midlands saw theirs rise by 7.1%. As Mr Palin acknowledged, Liverpool has grown “from a low base” following years of decline. But the region now needs to push ahead, driven by projects such as the superport and the planned Biocampus at the Royal Liverpool Hospital, to grow its economy and population still further. In its analysis of the information, the LEP noted that the number of 25-44-year-olds in the city region, measured as a

proportion of the population, had fallen. Nationally, that figure had remained stable. Prof Parkinson said: “It’s not just about people. It’s what sort of people and where they are. “Some places, take Liverpool, have higher numbers of people both too young to be in the labour market and too old. It’s about having the right mix. “You absolutely want people in their 20s, 30s and 40s who are economically active.” Mr Palin added: “Twenty-five to 44-year-olds are seen as the most productive age group economically. They’ll be running businesses, creating businesses, or in full-time employment. They’re an important group of people. We have a deficit there. “But we’ve seen quite a large increase in the 15-24 age group. It’s an opportunity. People start businesses at a younger age now. They leave universities and start businesses. It’s positive for the region that we have students.” Now, Mr Palin said, officials needed to continue working to ensure there were opportunities for those young people. He said: “The latest employment data shows youth unemployment is a real problem that we need to tackle. “Yes, this younger group might

be more likely to create businesses than before. But we’ve got to find jobs for all young people going forward. “The LEP and the city region are both putting a focus on areas such as the superport and the low carbon-sector as employment opportunities going forward. “We need to make sure that young people, in particular, can access those opportunities.” Overall, however, Mr Palin and Prof Parkinson agree that the message is upbeat. The region now needs to take advantage of that message. Mr Palin said: “It shows that Liverpool and the city region are places where people want to be. “It’s important that we attract new investment and international business. “This demonstrates that people want to live here. They can enjoy the cultural offer, live in quality housing, and have good skills in the workforce.” Prof Parkinson said: “Numbers are an important indication of how the economy is doing. But it’s the consequence, not the cause. “We are very glad that the numbers are going up. Why? Because our economic performance and prospects are better than they were 10 years ago, which is very good news.”

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The solar PV panels being installed on the roof of Halewood International, in Huyton

Power of the sun boosts Halewood Merseyside drinks giant looks to slash energy bills with 1,000 solar PV panels

MERSEYSIDE drinks producer, Halewood International, now has one of the largest solar panel installations in the North West on its roof. Renewable energy specialist, Reef Solutions, has installed the solar PV (photo-voltaic) panels at Halewood’s Huyton headquarters. The job took less than three weeks to install and now there are 1,000 PV panels on the roof of the production plant, where it produces big-name brands including Lambrini, Crabbies and new soft drink, Faith.

The 250 kWp (Kilowatt peak) installation will generate in excess of 200,000 kWh hours of electricity per year, enough to power more than 60 homes, helping to reduce the carbon footprint of Halewood’s 24/7 manufacturing operation. The move is part of a wider carbon reduction programme which has seen Halewood make a major investment in enhancing its environmental credentials. The company, which has an annual turnover of more than £300m, is developing a wide-

ranging carbon reduction strategy and Reef Solutions is advising it on the most suitable renewable technologies. Terry Crawford, from Reef, said: “Companies with large manufacturing facilities like Halewood can really benefit from solar energy. “Not only do they have the roof space to accommodate the installation but, with the rising cost of energy, converting part of their energy requirements to renewables also reduces overheads and mitigates the risk

of future energy price rises. This installation has an estimated payback period of just six years, after which energy savings and feed-in tariff revenues will become an income stream for the company, so there will be clear financial and environmental benefits.” Reef Solutions estimates that the financial return on investment will be more than £40,000 in the first year, as a result of energy savings and feed-in tariff income, and this will rise incrementally over time as feed-in tariffs are

linked to inflation and energy prices will rise. The benefits for Halewood, however, are much more wideranging. The firm’s Lucy Dixon said: “The business case for the capital expenditure involved in this project is clear, but our strategy is driven by long-term sustainability goals for the company. “Enhancing environmental performance is part of responsible manufacturing and that sits at the heart of our brand and our reputation.”

Inteb launches ‘complete’ green energy package A GREEN energy firm in Wirral has launched what it calls a complete procurement and energy management package for clients. Inteb, which operates out of Bromborough and Preston, said that the package will help companies right through from planning, purchase and installation to ongoing management.

The firm says that, with an effective energy management strategy, organisations can often achieve their aims through behavioural changes, rather than through expensive capital outlays. This “holistic” approach to sustainability is one that has already been brought into used by a number of Inteb clients. Inteb’s energy services

manager, Tom Kelly, says many more organisations should be considering energy generated from wholly sustainable sources, if they wish to truly demonstrate green credentials. He added: “Surveys demonstrate that the consumer is increasingly wishing to do business with organisations that can demonstrate environmental

commitment and a sustainable approach. Despite this, many businesses are failing to respond to the availability of green energy generated by renewable sources, or buying it, but then not managing its usage, effectively undermining its environmental benefits. “Business should be leading the way, by switching to 100%green energy supplies.”

Energy management package – Inteb’s offices in Bromborough

HOW GREEN IS YOUR BUSINESS?

Olympics spark bikes rush

Merseyside firm reports surge in interest for Government’s Cycle To Work scheme TEAM GB’s all-conquering Olympic cyclists have prompted a surge in demand for pedal bikes from company employees. That’s according to a director of Merseyside-based Bike 2 Work, former Liverpool politician-turned-businessman, Derek Hatton. The Crosby firm supplies bikes to workers at companies that have signed up to the Government’s Cycle to Work scheme. The scheme, which is designed to cut carbon emissions and promote healthier lifestyles, offers employees the opportunity to save up to 42% on the cost of bicycles and/or safety equipment. They can they pay back the cost over time through a payroll deduction. Bike 2 Work is one of the firms that helps operate the scheme, making it as simple as possible for people to go to participating cycle shops and choose the bike they want. Since 2009, the firm has registered 7,000 employers nationally, 200,000 employees and ensured nearly 10,000 new people are cycling to work every day. It partners with more than 1,500 bike shops throughout the country. Mr Hatton, who is a keen cyclist himself, said: “We are a scheme provider of the Government’s Green Transport Plan which aims to reduce environmental pollution, promote healthier lifestyles and make cycling to work cost-effective. “We only use local independent retailers, who offer a wide range of goods and provide a knowledgeable and quality service. “During and after the Olympics, the phones just went crazy – the number of calls we got must have gone up by around 50%. “One of the main reasons people get a bike is to improve their health and fitness but I think there is also a growing awareness of the environmental benefits, too. “The idea for the business came when a friend and I did the London to Paris bike ride and we got into the whole cycling thing. “Then we thought the business would be a great way to persuade more and more people to start using bikes.”

Bike 2 Work director, Derek Hatton – during and after the Olympics, the phones went crazy

EEF calls on Government to clarify its green agenda MANUFACTURERS in the North west have warned that the Government's environment and climate policies are too “complex, costly and incoherent”. Manufacturers' organisation, the EEF, said the policies were doing little but adding costs and burdens to businesses. “Britain faces major

challenge to de-carbonise our economy and strengthen economic growth,” said David Ost, of EEF. “Despite some progress, the simple truth is the Government’s own policies are failing to match industry’s own ambitions with a confused and cluttered landscape adding

to the cost burdens rather than driving investment.” EEF has called for an urgent full-scale review ahead of the next Spending Review, in order to reduce the cost and simplify the current administrative burden. It has proposed a “stress test” which would scrutinise new green

legislation, evaluating whether it would provide a positive contribution. The Government estimates climate change policies will add 20% to electricity prices for businesses by 2020, rising to 50% in 2030. The EEF said re-evaluation of policies was therefore more important than ever.

David Ost, of the EEF

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INTERNATIONAL TRADE Dantec sales director John Loach, left, and managing director John Laidlaw, pictured on the shop floor of their Moreton business

Middle East orders double for Wirral hose specialist

Dantec targeting further growth as appetite for safe, durable, quality products increases

A MERSEYSIDE hose specialist has doubled sales in the Middle East region over the past 12 months. Dantec, which makes composite hoses for use to transfer petrol, oil products, chemicals and liquefied gases, saw sales surge by 100% to £270,000. The firm, which is headquartered in Moreton, Wirral, works with Dubai-based distributor Flexiflo Corp to target the Middle East and has clients throughout the region, including Jebel Ali-based Petrochem Middle

East. Dantec managing director John Laidlaw said sales to the Gulf States were being driven by a move towards safe, quality, longlasting products. He said: “The Middle East market is currently dominated by weak product. “However, the market is rapidly maturing and demanding quality. “Dantec supplies an advanced, safe and durable product which is seizing interest for its longevity and fitness for use.” He added: “Our job now is to build on the robust Middle East

performance of the past 12 months and catapult the business forward into new areas of the market.” Mr Laidlaw said that the firm is predominantly active in the shipto-shore sector of fuel and chemical transfer, but sees huge potential for its fire-safe petrol tanker loading hoses, particularly in Saudi Arabia. He said: “Tanker loading hoses are an essential part of the fuel supply chain. “Saudi Arabia is a new market for this type of hose and having worked with BP in the UK for 14

years on its entire tanker fleet without failure we can provide the safest, strongest and bestvalue solution to this burgeoning market.” Mr Laidlaw said Dantec, which supplied refuelling hoses to Formula One for 15 years, sees the Middle East as a key target market, citing Saudi Arabia, Kuwait, Qatar, Oman and the UAE as key players for growth in the region. “As a hotbed of oil, gas and petrochemical activity, the Middle East is a priority focus for Dantec.

“We have a valued and key relationship with our regional distributor, Flexiflo Corp, which enables us to aim the product at specific projects, firms and market sectors. “We see huge potential for growth in the coming years, driven by increased activity and demand for quality.” Established in 1969, Dantec has developed to become one of the most innovative manufacturers of composite hose in the world, exporting products to more than 50 countries.

KNOWLEDGE ECONOMY

Byotrol staff at their Daresbury laboratory

Byotrol passes a milestone Bill Gleeson reports on a commercial breakthrough for a Runcorn anti-microbial firm DARESBURY-BASED antimicrobial technology firm Byotrol last month signed a milestone agreement with multi-national hygiene firm Kimberly Clark for the consumer market rights to its biocidal technology. Germ-killing Byotrol is used in a wide range of applications such as hand soaps and hospitals as a protection against the spread of bacterial and viral infections. The Kimberly Clark deal covers most of the world except for the European Union where deals are already in place with Boots and Tesco. Outside of the consumer marketplace, Byotrol is used by Rentokil to disinfect corporate

toilet facilities. It also used by hospitals. The Daresbury company, which won the University of Liverpool Knowledge Business of the Year award at this year’s Liverpool Post Regional Business Awards, has granted a seven-year licence to Kimberly Clark. It marks a major step forward for the Alternative Investment Market-listed business. Last month’s stock market announcement sparked a flurry of investor interest in the business which helped edge up its share price. As well as institutions, buyers also included the company’s executive chairman, Ralph Kugler. Last year, Byotrol reported

revenue just short of £2m, up from £670,000 five years earlier. The pre-tax loss last year was £2.7m. In total, Byotrol has lost more than £13m over the past five years. Having listed in June, 2005, Byotrol currently has a market capitalisation of circa £11m. The company has benefited from a reduction in annual overhead costs on an ongoing basis of about £750,000 for 2012/13. It also successfully raised £2.46m in 2011. Cash at the last year-end was ahead of expectation at £1.62m, which roughly equates to one year’s cash burn. However, the company is confident it won’t struggle to fund

its future activities. Speaking to The Liverpool Post recently, company founder Stephen Falder said: “We are a partnership business. “Some of our big deals have been with companies that are quite hard to convince. “We are mountaineers who have started in the Himalayas, not the Yorkshire Dales. “Once you’ve climbed K2, you can probably climb Snowdon. “There’s some especially big brands that use Byotrol – Tesco, Boots, Tommee Tippee, Rentokil. “They’re all national and international players who have strong due diligence processes. “We had to have the strength

and wherewithal to convince them. What we deliver is something that controls an invisible enemy with invisible consequences without worry.” As well as appearing in products that stack the shelves of supermarkets and chemists around the world, the company hopes Byotrol will be taken up by more hospitals, including the NHS. It is estimated that the current bleach-based biocides used in British hospitals cost £250m a year in damage to mattresses and other equipment because they are corrosive. Byotrol, on the other hand, is not corrosive. Its effects also last longer than bleaches.

KNOWLEDGE ECONOMY

Spark Revolutions now has its own dedicated office space at Liverpool Science Park and employs six full-time staff

An aerial view of Sci-Tech Daresbury, above; and, below, pictured left to right, Peter Sissons with Jane Thornber, marketing manager at Byotrol, and Stephen Falder, inventor at Byotrol and John Flamson, University of Liverpool director, at The Liverpool Post’s Business Awards

Technology firm sparks into life

A COMPANY comprised of graduates from Liverpool’s three universities has nearly trebled in size since its formation in November, 2011. Starting with just two employees, Spark Revolutions now has six full-time and two part-time staff, and has recently moved into its own dedicated office space at Liverpool Science Park (LSP)’s Enterprise Centre. The design-led technology company has worked on projects with Everton Free School and Infrared Training, and has also designed a gym application for Coliseum Training. “The team at LSP have been brilliant from start to finish,” said Spark Revolutions’ Philip Hauser, who graduated from the University of Liverpool last summer. “It has been little things like acknowledging and

helping us when we became too big for the Enterprise Centre to supporting and introducing us to other tenants, resulting in collaborations on several projects. The facilities here are great.” The company is currently looking to expand further, seeking investment for future projects. Spark Revolutions was formed as part of an initiative of LSP, in partnership with its owners, the University of Liverpool and Liverpool John Moores University, to offer recent graduates the chance to set up their own businesses in the science and technology sector. Around 25 businesses have been formed since the scheme was launched 18 months ago, with three, including Spark Revolutions, proving successful enough to move into dedicated office space.

COMMERCIAL PROPERTY

Landlords adapt as tenants

Liverpool’s two biggest office providers, Bruntwood and Downing, step up their efforts to TOUGH economic times means businesses are having to change to survive – something that is particularly true in the commercial property market. It is certainly a tough time for landlords. Those in the retail sector are finding themselves having to renegotiate previouslyagreed leases as high street names struggle to stay afloat. Office space providers are also having to adapt to meet the changing needs of occupiers.

One consequence of this is the rise in the number of serviced offices and other variations. In Liverpool, there are currently 23 serviced office centres – a 15% increase on this time last year. The number of serviced offices in the city has more than doubled since 2006 when there were just nine serviced office centres. Writing in the Liverpool Post recently, Chris Meredith, UK head of officebroker.com, said:

“According to our most recent research, businesses remain focused on the mid-term, avoiding longer commitments in order to maximise their liquidity. “Looking at those firms securing office space in Liverpool, this presents itself through the licence lengths firms are prepared to sign – which averaged nine months in the first half of 2012. “As such businesses continue to come to terms with these challenges, securing the kinds of

facilities that allow this level of flexibility, rather than demanding capital-heavy, longer-term commitments, undoubtedly becomes more important.” And Patrick Elliot, chief executive of another office brokerage, Instant, also told the Post recently that there had been an increase in the number of landlords offering what he called “flexible office solutions”. He said: “The managed office concept bridges the gap between

serviced offices and conventional leased office space, bringing fully equipped, bespoke offices to the market on flexible terms. “A managed office solution involves a company outsourcing every aspect of setting up and running an office – from finding the right building to emptying bins.” Liverpool’s two biggest commercial office landlords, Bruntwood and Downing, are both increasing the amount of

COMMERCIAL PROPERTY Downing’s Port of Liverpool Building, where it has created a hub of nine Flexi-Office suites; and, inset, left, Robin Ellis

Bruntwood’s Oriel Chambers in Water Street; and, inset, above, the firm’s Zoe Costello

look for greater flexibility

provide more varied options in the city as small firms confront the challenge of tough times serviced or flexible office space they offer across the city centre. Bruntwood was already wellestablished in the serviced market and has now increased its offering in Liverpool by 20%. In its latest move, the company has transformed part of the Grade I-listed Oriel Chambers, in Water Street, in response to the growing demand for serviced workstations. Bruntwood now has more than 230 serviced workstations located in Liverpool.

Zoe Costello, head of serviced space sales for Bruntwood, said: “We have seen a surge in the popularity of serviced offices over the past few years and we are keen to expand our quality offering in this market. “Following a recent deal to let 28 workstations to Laing O’Rourke at The Plaza, in Liverpool, our serviced office occupancy in the city was at 95%, so converting space in another of our buildings was a smart move.”

The 19th-century Oriel Chambers was acquired by Bruntwood in 2006. The building was the world’s first steel-framed glass curtain-walled building, which paved the way for the skyscrapers of New York. Rival group Downing has itself spent £158,000 on a refurbishment programme to deliver its FlexiOffice suites across its Liverpool portfolio, including No 1 Old Hall Street and Victoria House, James Street.

The suites range from 150 sq ft to 1,000 sq ft and are available for one month upwards. And it has created a hub of nine suites for one to 10 people, within the Grade II-listed Port of Liverpool Building, on the city’s waterfront. Downing developed FlexiOffices for the serviced office market to fill the gap between full service and the traditional leasing of a suite Robin Ellis, senior agency

surveyor, said: “Since launching Flexi-Offices in the last few weeks, we’ve received a significant amount of enquiries and it’s clear that there is an appetite for a more flexible, low-cost serviced office offering across Liverpool. “Over the last few years, landlords have had to adapt to a challenging market with more flexibility in deals, in particular on lease length and suite specification.”

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THE NETWORKER

BUSINESS LUNCH Alistair Houghton meets Phil Gaskell and Leo Cubbin, of video games publisher Ripstone IVERPOOL’S Baltic Triangle is home to many new firms, such as Ripstone, that are breathing new life into the video gaming world. And Camp & Furnace is, in its own way, bringing new life to the Baltic Triangle by giving the emerging “creative quarter” its own social hub. Last week saw the sad news that Sony was closing its Liverpool Studio, putting up to 60 jobs at risk. But, in the Baltic Triangle, a number of firms led by former staff from both Sony and collapsed studio Bizarre Creations are keeping Liverpool’s reputation as a video games centre alive and well. Among the firms to have taken root there is Ripstone, the publisher founded last year by former Sony colleagues Leo Cubbin and Phil Gaskell. So I met the duo in Camp & Furnace last Friday to talk about the past and future of the gaming sector. Camp & Furnace opened this year in a warehouse off Parliament Street that was originally home to arts centre the A Foundation. It boasts a cavernous main hall with canteen-style seating – and the eponymous furnace – as well as a more intimate bar area. Along with Elevator Cafe in the nearby Elevator Studios complex – where Ripstone is based – it is effectively a canteen for the creative factory that is the Baltic Triangle. On our visit, the warehouse was closed as Camp & Furnace prepared for free “Scandi-Summer festival”, PÅRK. And so, after ordering at the bar, we sat down at a communal table nearby to share the Ripstone story. Leo and Phil first met at Sony, in Wavertree, as colleagues on the team that works with external developers producing games for Sony’s platforms. Leo was working on the massively successful Little Big Planet series of games, while Phil was working on other projects

on the PlayStation Network platform through which console owners could download games digitally. “We had a keen interest in online games,” said Leo. Little Big Planet was made by Media Molecule, a small indie developer. That, said Leo, opened their eyes to what small developers could do via digital gaming platforms. Traditionally, console games were produced by massive studios, with huge budgets, and then sold as expensive boxed products on the high street. But distribution channels such as Playstation Network and Apple’s App Store meant small developers could now get their own games to market more easily. The ability to distribute is one thing. Getting noticed is another. Successful games need publishers – and Phil and Leo realised there was a gap in the market for an indie publisher. Leo said: “We had this crazy chat about ‘Why don’t we start a company and leave Sony?’” Phil smiled: “We had perfectly good jobs.” Leo added: “At the time we were thinking about that, we were fortunate enough to meet the two founders of (film distribution giant) Optimum Releasing, Will Clarke and Paul Higgins. “They liked our ideas. They said ‘We’ll back you’. That allowed us to give our jobs up and get this office set up.” Phil added: “We were digital dreamers. That was our first name.” The company then changed its name to Gaming Inc, but soon rebranded as RebelPlay while Phil and Leo began talking to developers. “We felt we were rebels,” smiled Leo. “There’s elements of the rebel in what we’re doing, trying a completely different business model to most publishers.” The duo also took inspiration from the changes in the record industry sparked by the rise of punk rock. “It was very similar,” mused Leo, reflecting on the growing numbers of small gaming firms and publishers in Liverpool. “You had all those labels that came out of punk, such

Phil Gaskell, left, and Leo Cubbin, of Ripstone

Camp & Furnace has become a social hub for the Baltic Triangle as Stiff and Rough Trade, that were all quite rebellious. But we always knew we weren’t going to be able to trademark the name RebelPlay.” By the turn of this year, Phil and Leo were raring to go. So they rebranded RebelPlay as Ripstone – a portmanteau word made from parts of Leo and Phil’s addresses. In February, they took on their first employee and in April they launched their first game, Pure Chess, for Sony’s Playstation Vita mobile gaming device. A chess game may not sound cutting edge, but Phil and Leo were confident there was a gap in the market for it. They were right. Phil said: “It’s made its money back and then it’s made it again. We’ve had a 100% return and it’s still going strong. We’ll continue to support it with patches and extra chess sets.” Leo added: “We do that because that’s what the developer wants. It’s not a cynical business decision. We’ll work with them for as long as they want to do it.” Phil said many game developers were wary of big publishers who interfered with their work. So Ripstone, he says, tries to do things differently. “Our ethos and our attitude are based on honesty, integrity and trust,” he said. “When people have had a bad experience with a publisher, it’s because the publisher expected to control the creative process. It becomes not their vision but a shared vision. That can spoil it. “Particularly in indie gaming, the stories are from the developers’ hearts. They’re putting their lives onscreen.

“We want to create a publishing label that’s sensitive to that. We sit alongside the developer and help them get their game and their vision to market.” Ripstone has since announced three further games – Big Sky: Infinity, Knytt Underground and “top-down action puzzler” Panic! It is working on another five games, two of which could come out this year. But both Phil and Leo say Ripstone’s growth will be managed carefully. Leo said: “We’ve got room for expansion. We just need to make sure that the DNA of the company is maintained. “We’ll still have the small company mentality. We don’t want to be a big flabby company.” “The big companies are like George at Asda,” Phil finished with a smile. “We’re haute couture. Every game needs to be treated individually and with passion.” As we chatted, we wolfed down our simple yet tasty lunches. Phil went for a paté, served with thick slices of bread, and a side order of tastily chunky chips. Leo had opted for beans on toast. It’s an old favourite, but when it’s done with thick slices of home-made bread and lashings of home-made beans with a spicy kick, it’s a great one. I had some of those beans myself in my main, the pulled pork. The sweet, juicy, and almost Orientally-spiced shredded pork sat on a bed of beans in a metal billy can, itself served atop a wooden board with a portion of apple coleslaw. It was flavoursome and delicious, with the coleslaw cutting through those rich flavours

wonderfully. We shared water and soft drinks – it was, unfortunately, too early in the day to enjoy some of Camp &Furnace’s own Brown Bear honey beer, brewed for the venue by Liverpool Craft Brewery. Camp & Furnace has a full regular menu, including tasty breakfast choices, but also boasts an ever-changing specials board. “We come here for business meetings and lunches,” said Leo. “And you can often see people from other firms having their lunches here as well.” As we finished our food, talk turned to the sad news about Sony. “It’s sad that people – some of them are friends of mine – will be losing their jobs,” said Phil. But he added that, in the long run, good could come from this at first disappointing news. “It’s an opportunity for them to find out what other exciting things are out there,” he said. “They could start a small development company or join a micro-studio. They’re masters of their own destiny. They can succeed on their own talent. They can help the Liverpool development community to thrive. “As I heard someone say this week, if a large tree falls in a forest, it allows other trees to grow.”

DETAILS Camp & Furnace 67, Greenland Street, Liverpool Tel:(0151) 708 2890 www.campandfurnace.com

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THE NETWORKER

THE BUSINESS LIST Sunday, Sept 2

LIVERPOOL-BASED Appreciating People is staging a three-day “Appreciative Living Workshop” at Liverpool Hope University, run by Jackie Kelm in her first event of its kind outside the US. She says her Appreciative Inquiry course “creates amazing changes within organisations” and helps people transform their lives and relationships with partners, children, family and friends. The course costs £410 per person for individuals, or £490 for company sponsored places. To register, email suzanne@ appreciatingpeople.co.uk or call 0151-427 1146 or 07940 726 067.

SATURDAY, SEPTEMBER 8/ WARRINGTON WOLVES’ NEW BUSINESS MARKET

Thursday, Sept 13 ST HELENS Chamber of Commerce is staging a business networking event aimed at helping firms extend their contacts list. The Chamber said: “Networking is one of the best ways of gaining new contacts and building working relationships. “The events provide an opportunity for you to meet for an informal breakfast with likeminded business people, to promote your business, be inspired by guest speakers and share advice and ideas. “All types of businesses attend, from start-ups to longstanding companies, and each month two businesses are invited to give a brief threeminute overview of their business and services they offer.” The events are free to Chamber members and £20 for non-members. They run from 7.45-9am and include refreshments. Visit https://www.sthelens chamber.com/booking to book a place.

Tuesday, Sept 18 AN OPEN day is also being staged by St Helens Chamber to explain how membership of the organisation can help

Warrington Wolves in action against Widnes Vikings at their Halliwell Jones Stadium, which will host their business event RUGBY League team Warrington Wolves has joined forces with Warrington council to host a new event aimed at giving startup businesses in the town a helping hand. The Wolves New

Business Market, at The Halliwell Jones Stadium, aims to be the first of many such events allowing new local businesses to showcase themselves to the borough-wide community and beyond.

businesses. Sponsored by Lloyds Business Communications, the day will start at 11am with refreshments and

St Helens Chamber of Commerce

The event is free to attend for new local start-up businesses. Each participating business will receive a free market stall space, with all stalls situated in the South Stand Concourse area of The

networking. The guest speaker is Susan Williams, from The Peel Group, who will be talking about the business opportunities surrounding the Atlantic Gateway, Peel’s £50bn investment project stretching from its Port of Salford development down the Manchester Ship Canal to the River Mersey and its Liverpool and Wirral Waters schemes, including its International Trade Centre, of which 35% has already been pre-sold to enthusiastic Chinese trade investors. The project presents major construction and business development opportunities for St Helens firms. Register at https://www.st helenschamber.com/ booking

Halliwell Jones Stadium. Participants will also receive free business support and advice on the day from organisations including Warrington Collegiate, Business Venture and Blue Orchid.

Paul Eadie, of UKTI

Thursday, Sept 20 LIVERPOOL Chamber of Commerce, in partnership with UK Trade and Investment (UKTI), is hosting a series of inter-

Residents will also be able to attend the event free of charge. ■ FOR more information about the event, please contact Angela Hankey on 01925 442371 or a.hankey@ warrington.gov.uk

national-themed lunches, with the latest event looking at trading opportunities for companies throughout the region in the Americas. It takes place at the city’s Hard Day’s Night Hotel, from 11am, and will feature two presentations, the first by David McRobbie, of AS Technologies, followed by Paul Eadie, of UKTI, after lunch. In 2011, the USA was the largest single export market for goods and services from the UK, accounting for £31.7bn of trade. The event is free for small firms, but they are limited to one delegate per company. ■ TO BOOK, please visit http:// www.my chamber.co.uk/ liverpool/event/ view/id/2966#book

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THE NETWORKER

ALISTAIR HOUGHTON . . . in which we clink our glasses to celebrate the secret successes of our unassuming industrial estates N THIS job, you get to spend a lot of time wandering around industrial parks. And I love it. No, really. Because it’s amazing how many companies you find hidden in plain sight in the industrial parks and office complexes that dot this region like spatters of blue WKD on a Mathew Street Festival reveller’s Beatles wig. So many companies go about their business quietly, not shouting about what they do, the silence broken only by news so good they don’t want to hide it or so bad that they can’t. And I’m not talking one-man-bands in offices, either. Wandering our industrial estates and business parks, en route to one appointment or other, it’s common to spot a giant shed, with dozens of cars outside, badged with the name of a company I’ve never heard of. It’s not that these companies are necessarily secretive – it’s just that publicity isn’t their business. Quite often, they’re successful companies who are flattered to be approached – and their success stories can make interesting reading. Sometimes, even well-known firms keep quiet. It’s not a secret that Barclays has a site in Wavertree, for instance, but whenever I walk past I’m surprised at just how big its campus is. In fact, I walked past it just the other

week on my way to Liverpool Innovation Park (LIP)’s summer barbecue. This summer has been a bit of a wash-out, so I didn’t have high hopes when I signed up. But it was a fine day, so I took the train to Wavertree Technology Park and ambled about. I spotted more interesting companies whose names I noted for future reference. And, yet again, I almost found myself climbing a 10ft-high fence to complete a short-cut that never existed. What looked like a welcoming pathway straight to LIP HQ in fact led to a locked gate. I stopped myself just in time – because my industrial park wanderings have taught me that what from a distance looks like a locked gate is almost certainly a locked gate. If there’s one thing you should know about industrial parks, it’s that there generally aren’t any short cuts. They aren’t designed for pedestrians – if the road goes in a huge loop, so do you. You may see what looks like a short cut, but that open land is probably blocked by a hidden fence, or protected by a barracuda-filled moat, or is just muddier and more unwelcoming than a festival campsite after a rainstorm. Or, as at LIP, you could be put off by a distant shirtless man throwing tennis balls around with merry abandon. But I made it in the end. And, over

freshly-barbecued lamb burgers and occasional cans of Cains bitter retrieved from an ice bucket, I met some of the people who make LIP what it is. OMETIMES, of course, businesses are easy to find – particularly when they’re sited on one of the most famous streets in the world. So I had no trouble finding Penny Lane Gallery later that night for the opening of an exhibition of images by veteran photographer Bill Zygmant. The pictures, including the first official shot of John and Yoko and some jolly shots of the original five-piece Bee Gees, were, of course, magnificent. And the candystripe- jacketed Zygmant himself was also on great form. We chatted for a while about his years with the Fab Four, and about the recent sad passing of Bee Gee Robin Gibb. And, with pride, he taught me how he greets people when he has a glass of wine in their hand. “I’m not above you,” he said, clinking the bottom of his glass against the top of my bottle. “And I’m not below you,” he said, this time clinking the top of his wine glass against the bottom of my bottle. Then, he simply clinked his glass against my bottle, with a jolly grin. “I’m the same as you.” No-one’s ever going to put my photographs on a gallery wall. But I appreciated his gesture.

NEVER got to use that gesture at my next engagement, as I had hoped. Partly, that’s because plastic bottles of orange juice don’t clink. And also partly because the mood at LIP’s breakfast briefing on video games was a little subdued. On the day before the meeting, Sony – one of those quiet large companies in Wavertree – said it was closing its Studio Liverpool, putting 60 jobs at risk. That, unsurprisingly, was the talk of the meeting. But the mood, more surprisingly, remained optimistic. Despite the bad news around Sony, and last year’s closure of Bizarre Creations, this region is now home to dozens of young video games firms. In fact, the keynote speaker was Martin Kitney, of Thumbstar, a company which recently won new investment and is now expanding into China. The new wave games firms are smaller than their giant predecessors. But some of them will keep growing. And one day – perhaps after I’ve run off to make a video game based on my wanderings around industrial parks – someone following in my footsteps will spot one of those company’s names on an office wall. They’ll ring up that company, and find out that they’re a secret success story. And they can clink their glasses to that.

Who knows what wonders may await the traveller to this world of wonder? Pimbo Industrial Estate, Skelmersdale, 1992 . . .

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SOCIAL DIARY THE NETWORKER

Lucy Brady, of High Performance Consultancy, with Jaquie Ellis, of Liverpool City Council, at the Day and Night house warming party

Andi Mossam, Natalie Foster, Jenny McGreal, Paul Adams and Elizabeth Keenan, at the Vincent Hotel, Southport

CAROLYN HUGHES THE Olympics returned to Southport last night with local Team GB Olympians donning their medals for a handover after party for Brazilian Olympic performer Simone Reeves. The event began at the stylish Vincent Hotel, in Southport, with guests being treated to canapés and cocktails provided by head chef Andrew Carter. After the meal, there was an auction for unique signed London 2012 Olympic memorabilia in aid of The Steven Gerrard Foundation. ■ DAY & Night Liverpool, in St James Street, in the heart of The Baltic Creative Quarter, hosted a

house warming for its friends and neighbours. Guests were treated to Champagne cocktails, followed by a sumptuous array of canapés showcasing the Bistro's menu. ■ INDIVIDUAL Restaurants, owners of Restaurant Bar and Grill, ran a competition across their 32 restaurants for their Club Individual members. Paul Sherlock, a regular at the Restaurant Bar and Grill, Brunswick Street, Liverpool, was the lucky winner of a fantastic prize trip by private jet to Italy last week, where he enjoyed a stay in a luxury hotel and an evening of opera at Arena di Verona .

Jude Cisse and Southport Olympic bronze medal winner, gymnast Daniel Purvis, at the Vincent Hotel

Miss Liverpool, Faye Ayers, with Denise Chilton, of Denise Chilton Ltd, at the Day and Night party in Liverpool Lady Mayoress of Sefton Cllr Linda Cluskey, with Mayor of Sefton Cllr Kevin Cluskey, joining in the Olympics celebrations at the Vincent

The head chef at Day and Night Liverpool, with guests at the house warming

Andrea Stewart, head of content and communications, Individual Restaurant Company plc, with Pete Warden, general manager, Restaurant Bar and Grill, Liverpool

Trip of a lifetime contest winner Paul Sherlock, right, with Lillian Sherlock and Pete Warden, general manager, Restaurant Bar and Grill

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