NWDA Conference and AGM – Liverpool 2008 STEVEN BROOMHEAD, CHIEF EXECUTIVE NWDA Well, good morning to you all. I'm very pleased that we can review our achievements here in Liverpool, the City's regeneration has played a significant role in the region's success, not least as this year's European Capital of Culture which has shown the world exactly what the North West can do and is capable of inspiring and delivering. So I'm very pleased that we're here today. Getting things done has been my watchword and that of my Chairman for the last six years Bryan Gray, who steps down at the end of this year. Bryan's contribution to this region cannot be overstated. As one example of many achievements, a Cabinet minister said to me this week that without Bryan's infectious energy, determination and tenacity, Media City simply would not have happened. Bryan's contribution has been enormous and I'm sure you'll join me in thanking him and wishing him continued success in the future. I believe the role of the Development Agency is to make evidence-based economic change happen and I hope today this demonstrates how we actually do this. Firstly, I would like to outline the Region's progress on how we are responding to the current challenging economic conditions to ensure this continues. Secondly, I will focus on some of the Agency's key achievements, with many of these now coming to fruition it seems timely for us to reflect on what we've achieved together and the Agency's unique role in this. Lastly, I want to explain how we are building strategic leadership to respond to the future challenges and to ensure that we make a real and positive continuing impact. Since 2006, the region has been working towards delivering the priorities outlined in the Regional Economic Strategy. Thank you for your continued support. The regional economy is now much stronger after years of growth and rising employment backed by sustained Government and private sector investment. Over the past five years, GBA has grown by 26% and job growth has outstripped the UK in percentage terms. However, the region needs to prepare for tougher business conditions and possibly the most challenging global market in the past 30 years. We have built a strong platform to withstand this cooling economy. For example, we are the leading region outside of London in attracting foreign and direct investments. During the year we attracted 150 of these, creating or safeguarding 14,500 jobs. We must not forget that the changed business base presents the region with long-term opportunities. The North West has strengths in sectors which are likely to be more resilient including energy, defence, advanced engineering science and innovation. However, it is important we listen carefully to the experiences of the regional businesses and communities and respond effectively. An important step forward was the recent launch of a document setting out the changes in our economy as well as the challenges and opportunities of the future. The Agency is supporting initiatives within this document which I will outline later. The ability to prioritise and take tough, evidence-based investment decisions are crucial in a period when public funding is limited and RDA resources will regrettably be reduced. The challenge for partners and ourselves is to do more for less and ensure even greater economic impact. I believe this is where the Agency's increasing strategic commissioning role will be all the more important. Our future direction has to be about ourselves and our partners working together to keep clear priorities in sight. It's about joint investment planning and joint decision making.
This is not a new approach for us. Many of the region's key successes have been initiatives which simply would not have happened without your targeted support and leadership. We will now take you through some of the most significant in the last year and knowledge-based businesses are the key to the region's economic success and we have continued to use our investment to capitalise on this. Led by the Agency we're the first region to create a Science Council and a Science Strategy as a response to losing the £600million Diamond Synchrotron Project from Daresbury in 2001. A succession of projects followed from this challenge including the National Bio-Manufacturing Centre here in Liverpool and the Centre for Tropical and Infectious Diseases at the Liverpool School of Tropical Medicine which opened last year. Both have made a positive contribution to the regional economy over the past year levering in private sector investment. Of particular note is the Gates Foundation who awarded an additional $100 million to the Liverpool School to fund an international malaria research programme. An example of our strategic intervention is at Daresbury Science and Innovation Campus in Halton and you will hear more about the progress of this exciting development later. The Agency has also recognised the importance of accelerating the growth of internationally competitive sectors. One of the most significant is the creation of Media City UK, the UK's largest media hub outside of London. The Agency has invested £30 million in the development which will employ 15,500 people, 3,500 of these being new jobs as well as adding £1billion to the £111billion economy here in the North West once it's complete. The BBC's Trust to move 1600 jobs to the site is a firm sign of Greater Manchester's world class reputation as a home for creative and digital industries. The strengths of this region's automotive sector was also confirmed last year when the Vauxhall plant at Ellesmere Port is set to build the new generation Astra. The plant's established history in producing automotive quality now means it has a future at the forefront of new sustainable car production. Simplifying business support is another priority for the Agency and I am committed to de-cluttering the landscape. The establishment of Business Link North West in 2007 has made really solid progress. Figures now show 86,000 businesses used the service in it's first year generating an extra £390million for the region. It has also provided a single gateway for employers who want to access the Train to Gain skills programme. Of course, providing timely support is also vital. Following the movement restrictions imposed after last year's Foot and Mouth outbreak in the south, the Agency moved swiftly to provide support packages for farming businesses. The growing emphasis on climate change has also been a key priority over the last year and this will continue. The Agency is taking a lead to address the causes and respond to the £30billion business opportunities that exist in this region over the next ten years. The Agency itself is taking this issue seriously. During the year those of you who visited us in Warrington cannot fail to have noticed the new addition to our headquarters in the form of a wind turbine. Of course that will be cold air not hot air. This will make a significant impact on reducing our own carbon footprint. Government has recognised that RDA's can manage complex issues such as the Skills Agenda. However I have consistently argued that skills investment is still too nationally focused, the Skills Agenda is still too confusing for employers and individuals and there needs to be a much stronger regional input. That is an Agenda that we will continue to work hard on in the next year, to ensure our business remain competitive in a tougher economic requirement, equipping the region with a flexible skilled workforce is absolutely paramount. A number of key projects illustrate how we are doing this. The University of Cumbria opened it's doors last year and is playing a key role in helping to retain our skilled graduates, a clear focus is on the
skills needed within the nuclear sector where the Agency is working with the Nuclear Decommissioning Agency Authority on a new National Skills Academy. This will open very soon. Elsewhere, a number of projects have been taken forward to ensure that we are producing individuals with economically valuable skills, this includes the opening of the Macclesfield Learning Zone and start on site of a new college campus and university centre for Burnley College which you will hear more information about later. I am committed to ensuring that the Agency takes its own skills development seriously. As well as being reaccredited with Investment in People status during the last year, we were one of the first employers in the country to commit to the Government Skills Pledge. Participation in this is vital to ensuring our nation's workforce is the best in the world and I would encourage you all in this room to think about signing to the Government Skills Pledge. Creating places where people want to live, visit and work and invest features highly on the Agency's agenda. However large scale interventions cannot be achieved through quick fix measures nor one size fits all approach. Working with our Urban Regeneration companies we are identifying priorities and ensuring that these are delivered where otherwise they could not have been. The success of this approach has been significant. You'll have seen the changes to the Liverpool skyline upon your arrival this morning. The last year alone has seen the completion of the impressive Arena where we are today and the Cruise Liner Terminal, both of which are making an enormous impact already on the City's economy. The changes to East Manchester are as equally dramatic. Three major developments completed this year as part of the regeneration of Ancoats representing a ÂŁ30million private sector investment. Two further developments have recently begun on the site signifying a further ÂŁ28million private sector investment. We also look forward to the further development of Sport City and in particular I do look forward to meeting and working with the new owners of Manchester City Football Club. While the Agency recognises how city regions drive the economy, we know that there are areas facing challenges where new economic solutions are required. In Blackpool the Agency has worked to develop an action plan for its sustainable development and I am very confident that the appointment of Sir Howard Bernstein as the Chair of ReBlackpool will ensure we translate this plan into action. Recognising the opportunities arising through decommissioning, the Agency is also working with partners to transform West Cumbria into Britain's Energy Coast and again you will hear more about this later. The economy relies on effective infrastructure to encourage investment and sustainable growth. The Agency has already achieved notable successes in shaping national, regional and local priorities. Working with partners, the Agency has helped to agree regional transport, housing and regeneration priorities for the first time. A number of important transport announcements have been made including the second Mersey crossing and the major refurbishment of the Blackpool and Fleetwood tram system. We are also now looking forward to developing a proposed second round of regional funding allocations. This will set out additional investment of ÂŁ4.1billion and to ensure that investment is focused on the right developments at the right time and in the right place. In December we will see the Referendum regarding Greater Manchester's bid to the Government's Transport Innovation Fund. Whatever the outcome, we must ensure that transport improvements are prioritised within the new integrated regional strategy. We will work with all key partners to ensure that the Agency considers the
economic impacts of the proposals. Significant progress has also been made on employments sites across the region. Milestones have been reached at Kingsway Business Park in Rochdale with the first business occupiers exchanging contracts and the opening of the new spine road for the site. One of the most rewarding roles for the Agency is to showcase the regions strengths to people around the UK and the world. During the year we have worked hard to capitalise on the 08 Effect (?) across the region. Estimates show that Liverpool's year as European Capital of Culture will generate an additional £100million plus impact for the region's economy. The quality of the events held by the city during the year have been truly outstanding with visitor numbers exceeding all expectations and you will hear more about this later. I do recall having to have a hot towel when I was told that we were supporting the 37 ton spider, 50 foot wide and 50 foot tall but it was an enormous success here recently in the City and I'm pleased that the Agency gave it's support. The region also has an excellent track record for hosting successful sporting events from the Grand National and this year's Open Golf Championship at Royal Birkdale. Thanks to our Major Events Strategy, the region has not only showcased the best of the North West but this has generated so far £41million this year alone. Those of you who witnessed the success of the Beijing Games this summer can be left in no doubt of the opportunities that this presents for the North West, not least in a sporting sense but also in helping businesses compete for contracts, hosting pre-Games training camps and highlighting our superb cultural and tourism offered. The Agency is leading the work on this to capitalise on the opportunity. Over 25 of our regional businesses have already won Games related contracts. This momentum is continuing with over 1600 businesses registering on the CompeteFor website. I hope I've given you a good overview of some of the work that the Agency has led or developed. To put some numbers to this, for the last financial year we have created or safeguarded 18,000 jobs in the region, created and attracted 2000 new businesses to the region, helped 21,000 businesses to improve their performance, attracted £489million of investment to regenerate deprived areas and we've regenerated 300 hectares of land and helped 26,000 people in their skills development. Whilst meeting targets is important, it is vital that we measure our contribution in other ways. We must continue to evaluate in order to learn important lessons, inform future investments and make decisions based on clear priorities and a knowledge of what works. As economic conditions tighten, this takes on even greater priority. Each of the nine RDAs are currently working with Burr and Price Waterhouse Coopers on an in-depth national evaluation report of our activity. The Agency has evaluated around £900million of it's own activity and I look forward to sharing the independently evaluator results with you later this year. Accountability of the work of the Agency to Governments and to the private and the public sector is clearly and obviously vital and this is moving to a new level. We recognise the need to enhance this and welcome the establishment of the Regional Select Committees whilst continuing to engage with the vital and very professionally focused scrutiny work of 4Northwest and whilst accountability is important, so is the ability to get things done. Scrutiny is important but also must be proportionate and also tied to continuous improvement. We have begun to work closely with regional partners and with Government to ensure the North West is well placed to respond to the very challenging economic future ahead. I spoke earlier about the launch of the new documents setting out how the regional economy has changed in the recent years. As part of this, the Agency outlined new initiatives totalling £200million to assist businesses focusing on key
areas including improving access to finance, the measure also include a new £140million Venture Capital Loan Fund which will be launched in early 2009. This could not be more timely. The Initiative is one of the first to be announced from the £521million European Regional Development Programme now managed and delivered by the Agency. This is an extremely important role for us and is likely to be the last significant ERDF Programme and it's vital we maximise a return on this investment. This year has also been a critical year in policy terms and the Agency is working with partners on a number of key strategic issues. Jobs and opportunities must be accessible to people from all backgrounds to ensure that economic growth benefits all parts of the community. Through the region's Equality and Diversity Strategy we are ensuring that this is central through all of the Agency's programme. Initiatives to support this aim include capitalising on the work of the faith communities and promoting enterprise as a career option for key target groups including women, people with disabilities and minority communities. The Government National Review presents us with new challenges and opportunities as we work towards the integrated Regional Strategy from 2010. This means an enhanced but changing role for the Agency and new ways of partnership working via joint planning and investment business models. The North West has set the pace for this new way of working. We haven't waited for Government to tell us what to do. In many ways the SNR (?) reflects the strength of our existing joint investment planning and our strong relationships with business, Government office, 4Northwest and of course Local Authorities. I hope that the Government will recognise this and allow us to get on with fusing the spatial and economic priorities in a clear evidenced plan. We have already begun work on this to ensure that investment plans in the future are fit for purpose. As a major element of this I am determined to develop our own capacity as an organisation and that of partners and as such I will be looking at the Agency's organisational structure to ensure that we are fit for purpose, we are efficient and of course accountable. In conclusion, I believe that the biggest success to date has been our ability to bring people together, identify the clear priorities that the make the optimum impact on our economy and then deliver these. Our interventions have achieved impressive transformations for the region which I hope I have evidenced some of them today. We have made far more money for UK Plc than we have cost the taxpayer. For every £1 invested by the Agency a further £5 has been levered in. We've delivered master plans for places where the market has failed and turned these into economic programmes, we've fostered closely private and public partnerships particularly between business and universities, we've not got a much more efficient and effective delivery of Government programmes in the region such as Business Link North West. We have been able to do this because we are consistently engaged at local, regional and national level. I think it is clear that no other Agency can and will bat for the region in the same way. However, our work is far from complete. I believe in the old adage that if everything seems to be going right you've got no idea of reality. In challenging economic times we cannot afford to be complacent. With your continued support we have the potential to achieve even more in the future. Thank you for the opportunity.