PROJECT CORUS (WORKINGTON) STEERING GROUP
REPORT
1 July 2005
ii
CONTENTS
Page No.
1
Introduction
1
2
Recommendations
2
3
Background and Context
5
3.1
Global growth in steel
5
3.2
Corus financial performance
6
3.3
Market for rail
6
3.4
4
5
The aftermath of the Hatfield crash
8
Future of Corus activities on the Workington site
8
4.1
9
Options for the Workington site
Emerging Issues
11
5.1
Lessons from other contexts 5.1.1 Workforce and Labour Market Impact 5.1.2 The Supply Chain 5.1.3 Governance: Integration and Delivery
11 11 12 13
5.2
Opportunities highlighted in discussions with stakeholders and agencies 5.2.1 Nuclear Industry 5.2.2 Tourism 5.2.3 Transition to ICT based business 5.2.4 Regeneration investment in Workington and West Cumbria 5.2.5 Support for training and development
iii
14 14 15 16 16 17
iv
List of Appendices
Page No.
Appendix 1
List of members of the Steering Group
19
Appendix 2
The review process and sources of information
20
Appendix 3
Interviews conducted in review and consultation process
27
Appendix 4
Corus presentation of Mill Optimisation Study
29
Appendix 5
Information from Chairman of the Joint Unions at the Corus Steel Works, Workington and Head of Research Department, Community
30
Appendix 6
Extract of a geo-environmental assessment tender document from Corus
33
Appendix 7
Maps of Workington
37
Appendix 8
UK Steel Enterprise
39
Appendix 9
Workington – A tourism perspective
40
Appendix 10
Broadband applications for Workington
44
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1.
INTRODUCTION
On 17 February 2005 Corus announced a £130 million investment at Scunthorpe as part of a strategy to ‘strengthen manufacturing capability and competitiveness in rail, structural sections and wire rod’ to be completed in 2007/8. A key aim is to be able to manufacture up to 120m rail in a single length. As a consequence, the company announced its intention to transfer rail production from Workington to Scunthorpe. As a result of this announcement and subsequent discussions between key stakeholders the Project Corus (Workington) Steering Group was established at the request of the then Secretary of State for Trade and Industry, Patricia Hewitt and at the instigation of local MP Tony Cunningham following discussions with the National Trade Unions’ Coordinating Committee. The purpose of the group was to review options for the facilities, infrastructure and site. Three objectives, to be considered concurrently, were agreed: 1.
Determine the future of any Corus activities on the Workington site
2.
Consider opportunities related to Corus business
3.
Consider options for the Workington site
Prior to the review it was agreed that whilst the decision to transfer rail production to Scunthorpe is final, all parties would seek to treat the review with an open mind and to look actively at all options. In its task of considering the set objectives the Steering Group also consulted with key stakeholders in the sub region. Having conducted this review the Steering Group have agreed a number of recommendations, which are contained in the next section of this report. I feel this report provides constructive recommendations for the future which have been agreed by the whole Steering group. Bryan Gray Chairman, Northwest Regional Development Agency
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2.
RECOMMENDATIONS OF THE STEERING GROUP
It is recommended that: 1. ‘Workington Vision’ is formed to develop a vision for the future of Workington. Its key tasks will be to draw up an action plan with appropriate funding to implement those actions working under the umbrella of Cumbria Vision. Specifically a master plan will be developed with Corus for the Workington site. Members of the partnership should be drawn from the public and private sector and Trade Unions to work closely with other local agencies, and partners (see Recommendation 5). 2. Any decisions regarding the future of the Workington Steel Works site should be viewed in conjunction with, and in the context of, the regeneration of the subregion more broadly. There are a number of strategic initiatives in West Cumbria aiming to improve the environment and provide employment. Potential options for any redevelopment of the site per se range from returning the site to nature, through mixed development to alternative industrial usage. These options must be viewed within the context of strategies for regeneration in Workington and West Cumbria. 3. In considering alternative uses of the Workington site an environmental evaluation of the site is recommended as a priority. In order to facilitate this process Corus will undertake a Phase I and Phase II environmental survey (See Appendix 6 for an extract of a geo-environmental assessment tender document) and will make available the results of the work so that the regeneration options can be evaluated. Corus should work with Workington Vision to ensure that the site would be in a position to support any future development and that the condition of the site in no way limits the options for its contribution to the regeneration of Workington, and West Cumbria more widely. 4. A firmly agreed timescale for transition of rail production to Scunthorpe should be clearly articulated and communicated by Corus.
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5. During the consultation between Corus, the Trade Unions and the employees there will be a full discussion about any opportunities for future Corus activities on the Workington site. 6. Corus should engage with local authorities, other local and regional agencies and support structures for regeneration and enterprise in order to mitigate the impact of any changes they propose at Workington. Members of the local community have experience from previous periods of change and understand what operates well, if resourced effectively. 7. Funding and opportunities for any necessary re-training and/or re-deployment of the workforce will be provided. It is recommended that the work of Job Centre Plus, West Cumbria Trades Hall, Knowledge Skill Partnership and other agencies and partners be fully supported in the Workington context. Given the decision to move rail track production to Scunthorpe, it is recommended that Corus should commit to providing access to, and release for, employees to receive transferable skills training. It should be ensured that any funding and support provided is flexible and appropriate to the needs of the individuals and the options identified by them. 8. Local/regional suppliers should be identified to determine the impact on them of any loss of Corus related business and NWDA/partner support services such as Business Links be offered as appropriate. The income effects of loss of business on the local economy should also be assessed. 9. Corus provide continued support for the Gen II programme providing adult and apprenticeship training in West Cumbria, including those currently in training.
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It is recommended that Workington Vision pursue the following opportunities: i.
A rail heritage site to be further investigated with a view to drawing on the European industrial museum model. The embedding of ICT into such an initiative would significantly enhance sustainability.
ii.
Future employment prospects within the nuclear industry should be identified working closely with the Nuclear Opportunities Group of Westlakes Renaissance (Urban Regeneration Company).
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3.
BACKGROUND AND CONTEXT
Volume iron and steelmaking in Cumbria date back to the 1860s, the major sites being in Barrow-in-Furness and Workington. The main steelworks in Barrow closed in 1963. The Workington Haematite Iron Company was formed in 1856 when two blast furnaces were erected using locally mined haematite and coal. The main steel works closed in 1974 with the majority of the former works subsequently being cleared to become industrial estates and retail parks in the 1980s. Steel rails have been manufactured in Workington since 1877. Currently with 249 employees, Corus Rail manufactures heavy rail, steel sleepers, light rail and track accessories. Steel is delivered from the Corus works at Teesside and Scunthorpe and subjected to various industrial processes before finishing in lengths of up to 40 metres of finished rail. Rails are generally produced in a standard length of 36 metres (hence rails can be factory welded to 72 or 108 metres and delivered to track side). 3.1
Global growth in steel
At the OECD Global Steel Conference in January the industry estimated global growth in steel demand in 2005 at 3.7% per annum. Philippe Varin, the Chief Executive of Corus, said in a speech on October 28, 2004: ‘The fundamentals of the industry appear to be changing, promising a period of sustained and significant growth in demand − the first time for 30 years. If this is correct we cannot afford to waste this greater opportunity by negative over-reactions to any short-term blips we may experience along the way’. The total British steel requirement rose from 23.2 million tonnes (mt) to 24.8 mt between 2003 and 2004 and in a study by Cardiff University the UK steel demand is forecast to grow from 13.1 mt in 2004, to 113.5 mt in 2005, and 13.6 mt in 2006 and to 14.1 mt per annum by 2011. In a more recent speech on 9 June, 2005 the Chief Executive of Corus pointed to the importance of prevailing market conditions and internal programmes of improvement for a turnaround in Corus financial performance. He also stressed the need to be the best supplier to customers. Currently, Workington is viewed as a high quality provider of rail track with consistently strong performance.
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3.2
Corus financial performance
Corus reported in March 2005 its first annual operating profit since its formation in 1999 of £582m. Group turnover in 2004 was up 17% at £9.33bn and earnings before interest, tax and depreciation amounted to £934m against £250m in 2003. Debt was reduced and gearing fell from 37 to 27%. The Restoring Success programme, designed to close the competitive gap with European peers, has contributed to this turnaround for Corus focusing on safety performance, service levels and savings.
Turnover Operating profit before restructuring/impairment EBITDA Gearing Market Capitalisation
3.3
2004 £ 9,332m £ 582m
2003 £ 7,953m £ (66)m
2002 £7,188m £ (393)m
£ 934m £ 250m 27% 37% Low £ 3.3bn £2.8bn
£ (53)m 46% £ 2.7bn
point: £ 0.2bn
Market for rail
For many years Workington was the only UK source of steel rails and the site exported to Europe and the USA via the port. The principal customers for Workington have been British Railways and its successors. Sales have declined from 150,000 tonnes in 1960's and 70's to under 50,000 tonnes during 1990’s; Railtrack purchased around 95,000 tonnes in 2001/2 of which approximately 60% was sourced from Corus. The remaining 40% of the procured rail was sourced from Voest Alpine in Austria and Lucchini of Italy. At present the main business of the Workington site is rolling railway rails. The UK market for these products can be evaluated drawing upon the Network Rail business plan.
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As can be seen from the diagram above, taken from the March 2003 Network Rail business plan, since 1950 the annual length of track laid has varied between 200 and 1000 km p.a. The very low levels are associated with the period when the network was starved of investment. The recent peak represents track replacement after the Hatfield rail crash. One view of infrastructure managers is that the steady-state demand for track replacement is around 800 km p.a. Making the assumption that this is mainly to the UIC60 specification, this translates into a UK mainline market of 90,000 tonnes p.a. With respect to alternative markets for rail from Workington, in comparison with the UK mainline network, London Underground is a small system which uses a unique type of rail (bullhead). This can be made in Workington but the market is less than a tenth of that for the mainline network. Some light rail schemes, such as London Docklands, use other rail types but volumes are low and Workington has no experience of making the grooved rail used on systems such as Manchester Metrolink or Sheffield Supertram. Other types of rail, such as check rails, conductor rails and special rails for points and crossings represent only a few percent of the market. Overall, the UK market for non-mainline products adds no more than 10 to 15% to the above figure.
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In the past, the UK has exported railway rails. However, with the adoption of international standards and the growth of high-quality steel making in other countries, rail is increasingly available close to the customer specifying the product. 3.4
The aftermath of the Hatfield crash
The Hatfield rail disaster in 2000 boosted the market for rail track as Network Rail placed orders for replacement track to improve the quality of the rail network. Concern about the low rates of replacement of track, at that time 0.5% per annum, had been expressed previously by the Iron and Steel Trades Confederation. The replacement rate is now 3% per annum. Most new long rail orders were specified as being for 216 metres of welded strings with as few welds as possible. Workington, however, as a high quality provider of rail track with consistently strong performance and an international reputation benefited from higher levels of orders. The crash at Hatfield was caused by rolling contact fatigue (RCF). This is a complicated metallurgical phenomenon caused by repeated combinations of vertical and lateral forces on the rail head. Research has demonstrated that it is exacerbated by vertical track irregularities, which cause localised stress increases. These, in turn, can be caused by “hard spots� in the rail material caused by welding in the production or installation process. Network Rail have introduced a number of changes to rail procurement, installation and maintenance aimed at minimising the occurrence of RCF; these include the procurement of rail in un-welded lengths of 108 metres, a length that is common in many European countries.
4.
FUTURE OF CORUS ACTIVITIES ON THE WORKINGTON SITE
At the first meeting it was noted that the decision to move rail track production to Scunthorpe would not be re-visited by the Steering Group. However, all parties agreed to treat the review with an open mind and to look actively at all options. Corus have communicated their business case for moving the rail production from Workington. The key challenge presented to them by members of the Steering group was a concern relating to the timescales for any transfer of production from Workington to Scunthorpe. The issue raised was the ability of the Scunthorpe facility to meet the quality standards expected by the customer, currently provided by the Workington site and its workforce, in the timescales set.
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In considering alternative products several options were raised: •
Transferring production within the existing Corus product portfolio to Workington.
•
Undertaking new business activity on the Workington site
•
Extending the process engineering business also sited in Workington
Corus have conducted a review of rail and special profiles mill optimisation, including a product and market assessment, a competitor overview, and an analysis of product transferability (See Appendix 4). Further suggestions have been put forward from the Chairman of the Joint Unions at Workington and the Head of Research Department, Community (See Appendix 5) for examination by Corus. In particular, attention is drawn to the production of rebar and other special profiles. New steel-related business opportunities in West Cumbria have been signalled, for example reprocessing radioactive steel as part of the nuclear decommissioning programme being undertaken on the Sellafield site based on has relevant technology developed by a Swedish company. Corus, however, would need to consider whether such diversification would fit with their strategic aims. (http://radwaste.studsvik.se/se/v2/) It has been suggested that Workington might be a suitable site for developing capacity in delivering integrated supply solutions to housing, multi-storey building and infrastructure buildings. Currently Corus Living Solutions capacity is based at Shotton in North Wales (http://www.coruslivingsolutions.com). Construction industry press (for example, Construction Product, June 2005) has highlighted the increasing market demand for factory based prefabricated systems.
Phillippe Varin, C.E. of Corus also emphasised construction and
integrated solutions as a key market in his speech on 9 June 2005. Finally, in terms of Corus business in Workington more broadly it has been noted that there may be opportunities to develop the process engineering business in relation to the nuclear decommissioning programme. This would not however impact directly on the Moss Bay site. 4.1
Options for the Workington site
In the review process it was the Workington site itself which emerged as the key challenge for the future. The condition of the site is viewed as a barrier for any further development given the condition of the buildings, the existing infrastructure and likely levels of contamination.
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Corus currently own the site and in the past have sold sites for sums which reflect the remediation costs. Corus report that they will commission an environmental study (See Appendix 6: An extract of a geo-environmental assessment tender document). However, to leave the site ‘safe’ in terms of health and safety for a derelict site falls a long way short of providing a site which could play a key role in the economic regeneration of the town and West Cumbria more widely. The issue of land remediation has a wider significance for the town of Workington and its economic future. It is argued that given, the location of the site, replacing existing industrial activity with further new industrial development may not be an optimum solution. The site location to the west of the town provides transport links to the West Coast Mainline Rail and the Port of Workington, but poor connections to the road network, motorway links in particular. It has been suggested that any new business/industrial development may be better sited to the east of Workington on the Lillyhall sites. (See Appendix 7: Maps of Workington) The Derwent Howe Industrial Estate to the north of the site was developed on the site of the former steelworks and suffers in part from an on–going legacy of low quality buildings and potential issues with meeting current environmental standards. West Cumbria Development Agency state that there is a modest market demand for more affordable managed work space to the west of the town and that parts of the site could offer opportunities to attract a different market of businesses to the area of Workington. There are, however, calls for a mixed development which would include housing, recreational facilities and some light industrial activity. This again highlights the importance of ensuring land remediation. Given the extent of the site and its location adjacent to the town the timescales of any demolition and remediation work would need to be factored into plans for economic regeneration of the site.
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5.
EMERGING ISSUES
The review process highlighted two factors in particular. Firstly, Workington is not alone in the challenges it faces currently, there are many examples across the UK, Europe and worldwide of communities responding to industrial restructuring and the pressures of rationalisation and globalisation. Secondly, discussions with stakeholders and regional agencies identified opportunities that could be followed up in planning the future of the Workington site, and Workington more broadly.
5.1
Lessons from other contexts
There are examples elsewhere in Europe and world wide of responses to post industrial restructuring. Whilst every instance has its own context − historical, geographical, cultural − it is perhaps possible to learn from other contexts, to learn from what worked well, what was inspirational, or to learn from others mistakes. 5.1.1
Workforce and Labour Market Impact
Targeted policy initiatives should be based on labour market assessment aimed at supporting steelworkers, employees in the supply chain and other workers affected by steel closures. A recent analysis of the re-absorption of the Longbridge car workers into the local economy highlighted the importance of adequate levels of re-training and overcoming barriers to mobility as key to successful re-deployment (Cowling and Isles, 2005). Corus are currently one of the major employers in West Cumbria involved in the GEN II programme which provides apprenticeship training for the next generation. Corus have confirmed their continued support for this programme which provides an important part of any legacy for the future.
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The economic activity rate (i.e. the proportion of working age population that is in work or looking for work) across West Cumbria in the 12 months ending Feb 04 was 78.6% compared to 80.2% across Cumbria as a whole and 76.5% in the Northwest The employment rate across West Cumbria in the 12 months ending Feb 04 was 74.3% compared to 76.5% across Cumbria as a whole and 72.8% in the Northwest (NWDA Briefing Document, 27.01.05). In terms of lessons from elsewhere employers should work closely with the local authorities to provide coordinated and appropriate work force development. In the UK context the Learning and Skills Council should also be engaged at an early stage in developing re-training ensuring effective linking with local Further Education Colleges. UK Steel Enterprise, based in Sheffield, works across the UK in areas which have suffered restructuring. They have worked in 21 areas over 30 years. They are the regeneration arm of Corus and concerned with the long-term regeneration of a designated area. They work with existing companies and start-ups; the maximum investment is £400k. In certain areas they have built Innovation Centres, but the existence of Westlakes Science Park would make that unlikely in the Workington area. Their current principal contact locally is West Cumbria Development Agency. 5.1.2
The Supply Chain
Sadler (2001) emphasises the importance of careful consideration of the impact of closures on the supply chain. Particular attention is drawn to the fact that often: •
Suppliers are differentiated from one another by sector, size, ownership and skills base, unless the differences are accounted by policy-makers, miscued or counter-productive policy interventions may be made
•
Policy has recently ignored the employment multiplier, the overwhelming focus being on direct employees
•
The neglect of the income effects of closure and the way this impacts on the local economy has resulted in overlooking the way particular communities are likely to experience closures
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5.1.3
Governance: integration and delivery
Employment in steel production in the UK has been subject to long-term decline, with periods of sharp contraction in the early 1980s and at the start of this century. Lessons learned from past episodes of contraction indicate that anything less than sustained and co-ordinated thinking and action will result in neglect of those who will bear the consequences of current and future steel restructuring (Fairbrother and Morgan, 2001).
Programmes driven top-down from the centre often seem to offer the opportunity for speedy delivery, hence fit with the imperatives to be seen to make a difference in relatively short time periods. But this approach can be at the expense of building up the local strategic capacity that will be required for durable results. Fairbrother and Morgan (2001) suggest that there is local ownership of programmes including shared ownership of performance measures that are used to evaluate them (p. 22). They also state that co-ordinated policy-making and delivery implies the explicit recognition and inclusion of the diverse interests and concerns between different government functions and public agencies (such as education, economic development and business services). Multi-level governance involves the establishment of procedures for local involvement in policy formulation and the development of integrated policy-making on the basis of mutually reciprocal relationships between policy makers, public bodies and community members. Without these features of governance there is the prospect of a disaffected community population and a frustrated policy-making community. (Fairbrother and Morgan, 2001: p. 38) UK Steel Enterprise with a 30−year history of tackling long-term regeneration issues also point to the importance of working closely with local authorities and other local and regional agencies. They cite Corby 1980/81 as a point in case of all bodies pulling together to achieve a common purpose. Specifically, Corus and UK Steel Enterprise should work with Allerdale Borough Council supported by the Local Strategic Partnership and the Westlakes Renaissance (Urban Regeneration Company) under the overarching umbrella of Cumbria Vision to support local regeneration.
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5.2
Opportunities highlighted by stakeholders and agencies
In discussions with regional agencies and stakeholders some future opportunities were consistently highlighted, including the nuclear industry, tourism and the potential for the transition to ICT based businesses. This section also identifies regeneration projects in Workington and West Cumbria which could provide support for the future prosperity of Workington. 5.2.1
The nuclear industry
There are major changes facing the nuclear industry as it moves from power generation to decommissioning. These changes also bring considerable opportunities to the sub-region; the Nuclear Decommissioning Authority has its headquarters in West Cumbria, and has a socioeconomic responsibility as part of its remit. The West Cumbria Strategic Forum is a high-level, cross-departmental group which includes all key regional and sub-regional partners, established November 2004. It will address major opportunities and challenges facing West Cumbria as a result of nuclear decommissioning at Sellafield. The Urban Regeneration Company, Westlakes Renaissance, has a Nuclear Opportunities Group which is undertaking a supply chain mapping exercise to be followed up by a work flow study. These studies will provide an understanding of the wider impact for businesses in the region. Other initiatives are linked to these emerging opportunities. The NWDA is leading progress towards establishing a national Nuclear Skills Academy. The Higher Education Funding Council for England (Hefce) has asked for proposals for a University of Cumbria. The recently formed Cumbria Vision has been established at the behest of NWDA to focus on identifying subregional priorities and issues impacting on the economic performance of the region. It aims to provide clear leadership for the future vision and mission for the region particularly in identifying and responding to the opportunities that will emerge in the nuclear industry over the next few years.
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5.2.2
Tourism
A number of developing themes can be identified as emerging in relation to the town of Workington. (See Appendix 9: Workington − A tourism perspective) These include: •
Industrial heritage
•
Arts and heritage
•
Shopping/retail/leisure
Some less developed themes but worthy of consideration include: •
Business tourism
•
Environmental infrastructure
A specific suggestion has been made in relation to a theme of rail heritage put forward by the Workington Transport Heritage Trust. Preliminary discussions have subsequently been initiated with the National Rail Museum in York about the possibility of developing a satellite rail museum in Workington, in the same way that the ‘Locomotion’ museum was developed at Shildon. Sustainability of heritage sites can rarely be achieved through ticket revenue alone and is achievable partly through enterprise initiatives linking heritage and ICT. Additionally whereas in the UK the heritage sector sees its prime role as interpreting the past, in Continental Europe, industrial and regional museums are seen as a resource for future innovators. In June 2003 the NWDA published the Strategy for Tourism in England’s Northwest. There are already a number of major initiatives which will support the further development of some of these themes in Workington and the sub-region more widely. The NWDA has provided major support to Allerdale Borough Council to secure the 21,800 sq.m. re-development of Workington Town Centre anchored by Debenhams, investing £4.2m in site acquisitions to facilitate the development. West Lakes Renaissance within the context of a c. £98m budget for West Cumbria over a 10 year period is leading on a number of major initiatives including Derwent Forest, Port of Workington, the development of West Lakes Science Park and the c.£18m West Allerdale Regeneration initiative.
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A completed Development Strategy for the Port of Workington has been produced paving the way for the establishment of a new Harbour Board and a phased programme of investment amounting to ÂŁ6.48m. Cumbria Tourist Board has prepared a Destination Management Plan 2005-06, an action plan for the whole partnership of organisations involved in delivering the visitor experience in Cumbria. The purpose is to provide the framework and rationale for investment and clarify the plans of agencies and partners. One of the key sub regional priorities in the plan is to use tourism as one of the drivers for the economic regeneration in West Cumbria and Furness. Given the strategic importance of these initiatives, decisions regarding the future of the Workington Steel Works site should be viewed in conjunction with, and in the context of, the regeneration of the sub-region more broadly. 5.2.3
The transition to ICT based business
Communities which experience industrial re-structuring benefit from the ability to develop new identities and operate in new sectors. Given the relative geographical isolation of Workington there may be a particular interest in understanding how ICT and improved communications might impact upon existing business, support start up and attract new business to the area (See Appendix 10). The NWDA have invested ÂŁ20m in providing broadband throughout the County via Project Access which aims to provide broadband connectivity to cover 95% of businesses and individuals throughout Cumbria. UK Steel Enterprise (See Appendix 8) could play a key role in supporting the development of new and existing businesses to exploit opportunities related to that connectivity.
5.2.4
Regeneration investment in Workington and West Cumbria
The Northwest Development Agency is investing heavily in a range of Workington specific, West Lakes and sub-regional activity. The total NWDA investment in Workington over the period 2000
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– 2014 will be in excess of £68.5m. Approximately £10m has been invested through the period 2000 -2005 through NWDA into SRB and Workington Town Centre regeneration activity. Workington Regeneration is a Single Regeneration Budget (SRB) funded programme, managed by Allerdale Borough Council. £7.5m of SRB investment was approved by NWDA in 2001, over a 7 year period.
The scheme proposed to lever in an additional £40m of private/public
contributions. The programme, due to end in March 2006/7, focuses on regeneration in the inner urban wards of Workington. It supports a range of local regeneration activities including community initiatives and local business development. The scheme has also provided support to the town centre renewal programme. The regeneration of the town centre received additional support of £2.7m from NWDA in 2004, for a high quality public realm programme. It was agreed in March/April 2005, that the Workington Regeneration scheme will become part of the core West Lakes Renaissance programme at the end of the current funding allocation in March 2007. West Lakes Renaissance has a 10-year programme which identifies a budget in the region of £100m for West Cumbria. Allerdale has the potential for up to £50m of investment. Additionally a proportion of the county-wide land reclamation programme totals £21m will be available to the Sub region. Key projects include: •
Derwent Forest
•
Port of Workington
•
West Allerdale Regeneration
5.2.5
Local support for training and development
West Cumbria Development Agency (WCDA) is a local Enterprise Agency which provides business start up, business development and inward investment services for Allerdale/Copeland. WCDA claim to have helped create 5000 jobs in West Cumbria since being restructured in 1988.
The specific business support provided includes
corporate finance, property and planning advice.
Job Centre Plus is already in dialogue with Corus management and is compiling an Action Plan which would address such issues as employee counselling, re-training, identification of
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transferable skills, up-skilling, re-deployment etc. A Job Shop has operated previously on the site at the time of earlier redundancies and this would be revived if necessary. Lessons from the history of the Workington steel works suggest that some of the most effective support for the workforce in the past came from local bodies such as West Cumbria Trades Hall Centre, a charity, working with other agencies. There was a Rapid Response Fund for retraining, which was administered by the Learning and Skills Council (LSC) which provided flexible and appropriate support to individuals. Knowledge Skills Partnership has also been recognized for its useful work in South Wales, the Midlands and elsewhere. The Steering Group would prefer that local providers were used locally. The LSC are in discussion with the NWDA about establishing a fund to enable fast response to regional skills issues raised by industrial restructuring or inward investment.
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APPENDIX 1 PROJECT CORUS (WORKINGTON) TEAM Mr Bryan Gray, Chairman, NWDA Mr Tony Cunningham MP Mr Jon Bolton, Managing Director – Rail Sector, Corus Group Mr John Baker, Manager, Employment Development, Corus Long Products Division Mr Roy Rickhuss, Assistant General Secretary, Community Mr Simon Edmonds, Director Materials, Engineering and Manufacturing Policy Department, DTI Ms Zoe Dayan, Materials, Engineering and Manufacturing Policy Department, DTI Mr Denis Tytek, Chairman of the Joint Unions, Corus Steel Works Mr Tim Rose, Strategic Development Manager, NWDA Dr Eleanor Hamilton, Lancaster University Management School Mr Michael Walsh, Head of Research Department, Community Mr Alan Westnedge, Regional Officer, Amicus
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APPENDIX 2 1.
THE REVIEW PROCESS
Lancaster University was asked to support the review of the Steering Group in its task of considering the set objectives. These were to determine the future of any Corus activities on the Workington site, to consider opportunities related to Corus business and options for the Workington site. The University was to engage with members of the Steering Group and more widely with stakeholder groups and agencies within the region. There was agreement that the Steering Group Report should not be perceived as the end point, but that the implementation of the report’s recommendations may well have long timescales. This report is based on several phases of secondary data collection and consultative processes with key stakeholders. The timescales for the review were short; the Steering Group was to meet three times, and to report by the end of June 2005. The review process comprised a number of elements: •
Secondary data gathered relating to the steel and rail industries
•
Secondary data gathered relating to industry re-structuring and responses to re-structuring
•
Two phases of face-to-face and telephone interviews Phase 1: Interviews with members of the Steering Group Phase 2: Interviews with wider stakeholders in West Cumbria
•
Site visit to the Corus plant on 19 April 2005 by a team from Lancaster University This visit included a presentation of the Corus business case for the transfer of the rail production to Scunthorpe, presentation of the Corus study to determine the possibility of alternative products moving to Workington, a meeting with the Chairman of the Joint Unions at the Corus site, and a guided tour of the production facility.
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2.
SOURCES OF INFORMATION
Journal Articles Cooke, P. (2003) The Regional Innovation System in Wales: Evolution or eclipse? In: Cook, P., Heidenreich, M., and Braczyk, H. eds. Regional Innovation Systems (2nd edition). London; New York, Routledge. Fairbrother, P., and Morgan, K. (2001) Steel Communities Study: Implications for employment, learning and regeneration. Cardiff University. Goodwin, M., Jones, M., Jones, R., Pett, K., and Simpson, G. (2002) Devolution and Economic Governance in the UK: Uneven geographies, uneven capacities? Local Economy, 17 (3), 200215. Hudson, R. (2001) Consett After the Closure: Two decades of economic regeneration policies in Derwentside. Department of Geography and International Centre for Regional Regeneration and Development Studies, University of Durham, Durham. Hudson, R. (2002) Fuzzy Concepts and Sloppy Thinking: Reflections on recent developments in critical regional studies. Department of Geography and International Centre for Regional Regeneration and Development Studies, University of Durham, Durham. Markusen, A. (2003) Fuzzy Concepts, Scanty Evidence, Policy Distance: The case for rigour and policy relevance in critical regional studies. Regional Sudies, 37 (6/7) August/October, 701717. Martin, R. (2001) Geography and Public Policy: The case of the missing agenda. Progress in Human Geography, 25 (2), 189-210. Pike, A. (1999) The politics of factory closures and task forces in the North East region of England. Regional Studies, 33 (6) August, 567-575.
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Pike, A. (2000) Reflections on the task force model in economic development. Local Economy, 16 (2), 87-102. Pike, A. (2004) Heterodoxy and the governance of economic development. Environment and Planning, 36, 2141–2161. Sadler, D. (2001) The Steel Industry in Tees Valley and its Supply Chain in North East England. A report for the Teesside Task Force. Department of Geography and International Centre for Regional Regeneration and Development Studies, University of Durham, Durham. Shutt, J., Henderson, R., and Kumi-Ampofo, F. (2003) Responding to a Regional Economic Crisis: An impact and regeneration assessment of the Selby coalfield closure on the Yorkshire & Humber region. In: Regional studies association international conference, April 12-15, 2003, Pisa, Italy. Leeds Business School, European Economic and Regional Business Development Unit (ERBEDU). Task Force Reports Coalfields Task Force (1998) Making the Difference: A new start for England’s coalfield communities. CTF, London, Office of the Deputy Prime Minister. East Durham Task Force (2000) The road to success 1997-2001. EDTF, Durham County Council, Durham. Office of the Deputy Prime Minister (1998) Making the Difference: Government response. London, Office of the Deputy Prime Minister. Regional and Government Reports ARUP, Regional Forecasts, and Oxford Economic Forecasting (2005) Regional Futures: England’s regions in 2030. London, Office of the Deputy Prime Minister. Ashworth, K., Hartfree, Y., Kazimirski, A., Legge, K., Pires, C., Reyes de Beaman, S., Shaw, A., and Stafford, B. (2003) New Deal for Disabled People National Extension: First wave of the first
22
cohort of the survey of registrants. Department for Work and Pensions, Research Report 180. Centre for Research in Social Policy, National Centre for Social Research. Cumbria Tourist Board (Draft 2005) Destination Management Plan 2005-06 Cowling, M., and Isles, N. (2005) Sent to Coventry? The re-employment of the Longbridge 5,000. April, London, The Work Foundation. Department for Work and Pensions (2004) New Deal for Disabled People (NDDP): First synthesis report. DWP, Research Report 199. Department for Work and Pensions (2005) Department for Work and Pensions Five Year Strategy: Opportunity and security throughout life. London, HMSO. Goldstone, C. and Douglas, L. (2003) Pathways to Work from Incapacity Benefits: A pre-pilot exploration of staff and customer attitudes. Department for Work and Pensions, Research Report 162. London, Carol Goldstone Associates. Northwest Development Agency (Draft for Consultation 2005) Northwest Nuclear: A discussion paper. Northwest Development Agency. Regional Economic Forecasting Panel (2005) State of the Northwest Economy: Long term forecasts. Regional Intelligence Unit, North West Development Agency Research Unit. Report to the Northwest Regional Development Agency (2005) North West Economic Baseline: Issues report. Research Report A/00163. Altrincham, Regeneris Consulting. Wilkinson, M. and Craig, G. (2002) Local authority members and partnership working [Internet], Hull University, Joseph Rowntree Foundation. Available from: <http://www.jrf.org.uk/bookshop/eBooks/1842631101.pdf> [Accessed 18 April 2005].
News Articles and Bulletins (N.B. These sources were gathered electronically. The link is given if thought to be important to finding the article)
23
Gateway to future for Ravenscraig [Internet]. Scottish Executive. Available from: <http://www.scotland.gov.uk/pages/news/2002/04/p_SEfm004.aspx> [Accessed 06 April 2005]. Hall, W. (2005) One in two mining jobs replaced. Financial Times, 05 March. Leake, J., and Box, D. (2005) Revealed: list of sites to take nuclear waste. The Sunday Times, 15 May, 10. Legg. J. (2003) Deindustrialisation can be prevented. Financial Times, 07 October. Lyne, J. (2001) Newcastle beats out Pilbara, $2.8 billion, 2,500-worker mill could revive Australia’s ailing “steel city” [Internet]. Available from: <http://www.conway.com/ssinsider/bbdeal/bd010219.htm> [Accessed 20 April 2005]. Mc Kinnon, R. (2004) America’s savings shortfall is hurting its workers. Financial Times, 21 October. Rail making in Workington ‘not dead’. (2005) Times and Star, 28 February. Rothman’s Task Force (2000) Draft Final Report. July, Unpublished Document, Sedgefield Borough Council, Spennymoor, County Durham. Sent to Coventry? Government aid adequate; Longbridge 5,000 let down by local infrastructure [Internet]. The Work Foundation. Available from: <http://the workfoundation.com/newsroom/pressreleases.jsp?ref=167> [Accessed 10 May 2005]. South Side Works rebirth begins; LTV Hazelwood is still up in the air [Internet]. Pittsburgh Business Times. Available from: <http://www.bizjournals.com/pittsburgh/stories/1998/05/04focus4.html?> [Accessed 20 April 2005]. Steel Towns – from boom to bust [Internet]. BBC. Available from: <http://www.bbc.co.uk/nationonfilm/topics/steel/background.shtml> [Accessed 06 April 2005].
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Steeled for survival: Corus faces a tough fight to recover. (2003) The Guardian, 30 April. Thompson, P (2005) Prepare for Lift-off, Construction Products, June.
Triple boost on jobs front. (2005) Times and Star, 17 March. Web sites Allerdale Borough Council. (2005) Allerdale Borough Council [Internet]. Available from <http://www.allerdale.gov.uk> [Accessed 09 May 2005]. Corus Rail. (2005) Corus in the Rail Industry [Internet]. Available from: <http://www.corusrail.com> [Accessed 10 May]. Cumbria County Council. (2005) Cumbria County Council Facts and Figures [Internet]. Available from: <http://www.cumbria.gov.uk/factsandfigures> [Accessed 12 April 2005]. Cumbria Inward Investment. (2005) Invest in Cumbria [Internet]. Available from: <http://www.cumbria-investment.co.uk> [Accessed 06 April]. Eden Project. (2005) Eden Project [Internet]. Available from: <http://www.edenproject.com> [Accessed 07 April 2005]. Gijon Tourism Partnership. (2005) Gijon [Internet]. Available from: <http://www.ayto-gijon.es/? valor=1> [Accessed 03 May 2005]. Magna. (2005) Magna [Internet]. Available from <http://www.visitmagna.co.uk> [Accessed 09 May 2005]. North West Development Agency. (2005) NWDA [Internet]. Available from: <http://www.nwda.co.uk> [Accessed 16 May 2005]. Nuclear Decommissioning Authority. (2005) NDA [Internet]. Available from: <http://www.nda.gov.uk> [Accessed 16 May].
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Stoddart. (2005) The C2C Guide [Internet]. Available from: <http://www.c2c-guide.co.uk> [Accessed 06 April 2005]. UK Steel Enterprise. (2005) UK Steel Enterprise [Internet]. Available from: <http://www.uksteelenterprise.co.uk> [Accessed 27 April]. West Cumbria Development Agency. (2005) WCDA [Internet]. Available from: <http://www.wcda.co.uk> [Accessed 20 May 2005]. West Lakes Renaissance. (2005) West Lakes Renaissance [Internet]. Available from: <http://www.westlakesrenaissance.co.uk> [Accessed 12 May].
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APPENDIX 3 INTERVIEWS CONDUCTED IN REVIEW AND CONSULTATION PROCESS
Title MP, Workington Relationship Director, Metals. Materials, Engineering and Manufacturing Policy Department
DTI
04/04/2005
Simon Edmonds
DTI
06/04/2005
Corus
07/04/2005
Roy Rickhuss Denis Tytek
Director Materials, Engineering and Manufacturing Policy Department Manager, Employment development, Long Products Division Assistant General Secretary Chairman
08/04/2005 08/04/2005
Tim Rose
Strategic Development Manager
Community Union Corus Rail Joint Unions NWDA
Bryan Gray Rob Jarvis
Alan Haile
Acting Regeneration Unit Manager
Dave Harrison
Deputy Director Investment
John Knox
Supply Chain Consultant
Alan Heywood
Learning Tourism Project
NWDA British Nuclear Group West Cumbrian Development Agency Cumbria Country Council Government Office North West West Lakes Renaissance (WLR) Geography Department at Lancaster University
12/04/2005 21/04/2005
Dog Holden
Chairman Head of Community and Regional Affairs Chief Executive
Tara Sewell
Learning Tourism Project
Geography Department at Lancaster University
13/05/2005
John Baker
Company
Date Spoken to 06/05/2005
Name Tony Cunningham Zoe Dayan
27
11/04/2005
21/04/2005
06/05/2005 12/05/2005 12/05/2005 13/05/2005
Tim Knowles
Cumbria County Councillor
Chair of Local Strategic Partnership
16/05/2005
David Martin
Head of Regeneration
16/05/2005
Stewart Swift Harry Knowles Tim Stoddard
Area Manager Chief Executive Leader of Cumbria County Council, Councillor for Eden, Conservative Managing Director Chief Executive Nuclear Opportunities Manager
Allerdale Borough Council NWDA Furness Enterprise Cumbria County Council UK Steel Enterprise WLR WLR
18/05/2005 19/05/2005 20/05/2005
Cumbria Vision Corus NWDA
20/05/2005 23/05/2005 23/05/2005
Learning and Skills Council Cumbria Tourist Board NWDA
26/05/2005
Cumbria Learning and Skills Council West Cumbria Trades Hall Centre
16/06/2005
Stuart Green Bob Pointing Rosie Mathisen Chris Collier Jon Bolton David Brockbank John Korzeniewski Richard Greenwood James Beresford Mick Farley Mary Bainbridge
Chief Executive MD - Rail Sector Board of NWDA and Chair of Cumbria Vision Executive Director Director of Development Director of Tourism Executive Director Centre Co-ordinator
28
17/05/2005 18/05/2005 18/05/2005
27/05/2005 27/05/2005
16/06/2005
APPENDIX 4: CORUS PRESENTATION OF MILL OPTIMISATION STUDY
THE STEERING GROUP HAD SIGHT OF THE CORUS PRESENTATION ON LONG PRODUCTS MILL OPTIMISATION
29
APPENDIX 5 1.
INFORMATION FROM CHAIRMAN OF THE JOINT UNIONS AT THE CORUS STEEL WORKS, WORKINGTON
PROJECT CORUS RAIL WORKINGTON OBJECTIVES DETERMINE THE FUTURE OF ANY CORUS ACTIVITY ON THE WORKINGTON SITE. The first priority should be to look at extending the life of No. 1 Mill during the lifetime of the present Network Rail Contract (which is two years) by continuing the production of 36 metre welded strings and other short lengths and Network Rail Sleepers. After all, the new Network Rail contract was secured on the back of the outstanding performance, commitment and the reputation of the Workington workforce not Scunthorpe. EXPORTS We should supplement the above activities by, maintaining our orders for Southern Ireland and extending our export order book which is also important for the future of the Port of Workington. CROWN AGENTS Orders in the past for Crown Agents were very profitable. We used to export to countries such as, Nigeria, Kenya, Uganda, Hong Kong and other countries in Africa and Asia. Whilst many countries are financed by The World Bank etc, and are not profitable and are not even viable enough to be contribution work to keep our mill full, the Crown Agents avenue should be worth investigating. SECTIONS U69 Check Rails and other similar sections that are difficult to roll, but are very profitable. Other plants around Europe find the above section/s difficult to produce and time consuming therefore, not as lucrative for them as the heavier and longer products that can be rolled continuously without disruption. ◊
Crane Rails both UK and European specs
◊
Bridge Rails (various sections)
◊
Bull Heads
◊
Conductor Rails
◊
Normal Sleepers
◊
202 Sleepers
◊
U69
◊
Medium Sections
CONSIDER OPPORTUNITIES RELATED TO CORUS BUSINESSES CORUS LIVING SOLUTIONS
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Successful business at Shotton works in North Wales assembling prefabricated buildings. Investigate the possibility of expanding the business to Workington Refer to Corus Website. CONSIDER OPTIONS FOR THE WORKINGTON SITE Alternative uses for the site could include: ◊
Investigating the possibilities of decommissioning for BNFL
◊
Attract new businesses industrial and commercial
◊
Heavy and light engineering
◊
A business and science park
◊
Sporting and Leisure facilities
◊
Storage facilities for various companies
◊
Training facilities for apprentices and others.
◊
A centre of excellence for learning and training for the unemployed
2. INFORMATION FROM THE HEAD OF RESEARCH DEPARTMENT, COMMUNITY Crude steel production last year exceeded output in 2001 and in Corus, Alpha, Celsa and Thames Steel and on present plans steel making capacity is increasing whist in other substantial producing companies it is mostly stable. The plans for expansion of foreign companies with interest in the UK are all going ahead.
Thames Steel (formerly ASW Sheerness) currently
produces 0.64mt of billet plans in the short term to increase capacity to 0.74mt for sale mainly to a Saudi re-rolling mill to produce 32mm bar. A 0.5mt mill to roll rebar, flats & rounds is to be commissioned this year 2005 . In the longer the company intends to install a one million tonne electric arc furnace facility. Celsa - formerly ASW Cardiff – presently has an EAF billet caster with a capacity of 850,000 tonnes a year and plans to install EAF / casting facilities to take capacity to 1.2mt subject to planning permission, to come on-stream in 2006.
This extra
capacity would allow Celsa to run its sections mill at 0.3mt and its wire/rebar mill at 0.85mt per year. Alpha Steel owned by Satico, the Swiss arm of the SAFA Group has four electric arc furnaces to feed a wide slab mill, with capacity of 300,000 tonnes. Alpha has ambitious plans to increase capacity to 2.4mt by scrapping two old furnaces; installing three new EAFs, each with a capacity of 0.8mt; installing two slab casters each with a capacity of 0.8mt/annum; and refurbish one of the two billet casters to take its capacity to 0.8mt per annum.
31
This indicates that steel in the UK is expanding in terms of production and that some see scope for further increasing profitable production. A further risk for Corus is the possibility that producers in other European countries may build on the substantial inroads they made last year in the British market for sections, some of which might be produced at Workington. Skinningrove is presently highly profitable and is restricted by capacity from increasing output.
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APPENDIX 6 EXRACT FROM GEO-ENVIRONMENTAL ASSESSMENT TENDER DOCUMENT FROM CORUS
24th May 2005 Our Ref: F7252.09-240505-v1.1-Workington_tender
SPECIFICATION FOR FORMAL TENDER Geoenvironmental Assessment at Corus Rail, Workington Works, Cumbria 1.
Introduction
1.1
Name of Contract
Geo-environmental Assessment at Corus Rail, Workington Works, Cumbria, CA14 5AE. 1.2
Description of the Site
Workington Works is located west of Workington and is accessed from the A597 Solway Road. The National Grid Reference for the centre of the site is NX 9870 2720. The works covers an area of 8 to 9 hectares stretching a length of 2.8km, being confined between the Irish Sea to the west and a railway line to the east. The surrounding land use is varied incorporating an industrial/commercial estate to the north, which was sold by British Steel to Cumbria County Council, in ? when it was later remediated by Moss Bay Enterprise Trust; allotments and the residential areas of Workington, Moss Bay, Westfield and Salterbeck. Workington Works is a PPC permitted installation comprising of a mixture of large industrial/manufacturing buildings, areas of hardstanding used for storage, workshops and storage buildings, settlement ponds, scrap yard, oil storage areas, railway lines, offices, laboratories, and car parking. The site has been developed along the Irish Sea coastline, with railway infrastructure placed to transport products to the docks along the River Derwent Estuary to the north. The site is relatively flat lying at 10m AOD, approximately 5m above sea level. The
33
site does not appear to be within the coastal or river floodplain as identified on the Environment Agency Flood Risk website. Workington Works began in 1895 as Derwent Iron and Steelworks in the north and Moss Bay Iron and Steelworks in the south of the site. Blast furnaces, Bessemer converters, electric arc furnaces, coke ovens and rolling mills associated with the steelworks were progressively demolished until the production of steel ceased at the site in 1981. The land that was occupied by Derwent Iron and Steelworks was sold to Cumbria County Council, with the exception of the area that formerly housed the blast furnaces which is retained within the Workington Works at the Trailer Park. With the phasing out of primary iron and steelmaking at the site, secondary steelmaking processes began under British Steel Track Products. BS Track Products, now Corus Rail, manufactured heavy and light rails and sleepers.
1.3
Current Operations at the Site
There are three processes operating at Workington Works producing heavy rails, light rails and sleepers. All three processes use bloom as feedstock sourced by rail from Lackenby (Corus Teesside Cast Products), which are stored in the bloom stocking area from where they are loaded onto feeding benches. Blooms are taken into the reheating furnace, and are then transferred to the primary mill where the blooms section is reduced. The products are fed to the No. 1 Mill roughing stand for processing to heavy rails, baseplates and sleepers, whereas materials for processing light rails are off-loaded for re-heating and rolling in No. 2 Mill. The products are cut by hot sawing or shearing to length required for further processing. The rails progress to the cooling bank area, and are then straightened. More cut to length and inspections operations occur until heavy rails meet the required specification. Heavy rails produced can be 60 or 120 foot-long. If longer rails are required, they will be sent to the welding area to achieve a length multiple of 120 ft. Light rails are also produced directly from billets delivered by road from Scunthorpe, as well as from billets produced by the Primary Mill. These billets are re-heated and rolled in No. 2 Mill. After being cooled, light rails go through similar finishing operations to heavy rails, namely straightening, inspection, cut-to-length, etc in the No. 2 Mill Finishing Department. Sleeper production starts the same way as heavy rails. The sleeper plates are processed through the Sleeper Mill. The plates are straightened at Booth Bay and the ends are then cropped using cold shears. The process of sleeper production ends at the cooling and cropping stage at which point the plates are transported to contractors who carry out the remaining work if so required. Any rail products requiring head hardening are now hardened near the cooling banks via water cooling, thus reheating is no longer necessary. Nowadays, the hardening building is only used as a storage area. Rail products leave the site by rail (44%), by ship (48%) from Derwent Estuary of from Liverpool, or by road (8%). The works can effectively be divided into thirteen main process areas as identified below.
34
• • • • • • • • • • • • • 1.4
Area 1: railway lines and welding activities, Area 2: hardening building, Area 3: trailer park, Area 4: settlement ponds, Area 5: bloom stocking bay Area 6: reheating furnaces and rolling mills, Area 7: cooling bank and inspection bay, Area 8: offices, laboratories, workshops and oil storage area, Area 9: finishing mill, Area 10: stocking and loading area, Area 11: slag pit, Area 12: sleeper mill, scrap yard and waste oil storage area, and Area 13: railway lines. Purpose of the Contract
‘Restoring Success’ is Corus’s plan to close the performance gap and restore competitiveness to the company. One aspect of this plan is the UK restructuring and investment programme, which was revealed on the 23rd April 2003. In response to this, Corus Rail announced on 17 th February 2005 that it would cease the manufacturing of rail products at Workington Works and would transfer these operations to Scunthorpe Works, Lincolnshire. A number of options for Workington are being considered by the business in conjunction with a High Level government appointed task Force. The purpose of this contract is to assess land condition at Workington Works at the point in which production is transferred to Scunthorpe. The assessment is required to identify Corus's potential liability under Part IIa of the Environmental Protection Act and to inform any remediation scheme that may be necessary to surrender the site fit-for-purpose in its current industrial land-use. The required geo-environmental assessment at Workington Works is required to: • • • • • • 1.5
review existing documents and update the Phase I assessment previously undertaken at the Works. design a Phase II intrusive investigation to confirm the findings of the Phase I assessment. define the nature of the ground and groundwater conditions and assess any potential contamination at the site, undertake a qualitative risk assessment against the current industrial land-use. identify any necessary remediation requirements to remove liability for Corus under Part IIa of EPA. provide an independent viewpoint on which future decisions can be made.
Scope of the Investigation
35
The contractor shall carry out a Phase I and Phase II investigation as requested by Corus. The specifics are outlined below, together with the required timescale for completion:
Requirement
Deadline
1. Phase I Desk Top Study
2. Phase II intrusive investigation proposal based on findings of the Phase I report 3. Commence Phase II intrusive investigation 4. Submission of Phase II Factual and Interpretative investigation reports
36
37
APPENDIX 7 MAP OF WORKINGTON IN CUMBRIA CONTEXT
MAP OF CORUS STEEL WORKS AND WORKINGTON
37
38
APPENDIX 8 UK STEEL ENTERPRISE
UK Steel Enterprise Ltd, formerly British Steel (Industry) Ltd, was originally established in 1975 by the then British Steel Corporation and is a subsidiary of Corus Group plc.
Its objective is to help in the economic regeneration and
development of those areas of the UK, which have been affected by changes in the steel industry. This is achieved directly by helping small businesses - new and existing - to grow and create job opportunities. They also support other organisations with similar aims. Businesses engaged in most manufacturing and industrial activities are eligible for support, as are those engaged in providing a service to industry. They do not have to have any connection with Corus or the steel industry other than being based in a steel area. They have provided £50 million to over 2,400 businesses, of which: £40 million has been provided as loan or share capital, invested in more than 1,700 businesses. £10 million has been provided in other ways including risk capital. UK Steel Enterprise have also developed 570 self-contained workspace units, totalling 480,000 sq ft, at a cost of £18m. Whilst a few are conversions of larger, existing buildings, most are part of purpose-built business centres. They have recently completed construction of two Innovation Centres, in Teesside and Sheffield and have redeveloped and expanded their largest site, Cardiff Bay Business Centre. More than 3,700 businesses have been directly assisted with finance or workspace (some with both).
39
APPENDIX 9 WORKINGTON â&#x20AC;&#x201C; A TOURISM PERSPECTIVE The district council area of Allerdale is hugely diverse, with areas of the Lake District National Park and the market town of Keswick to the east, the plains of the Solway to the north, and the towns of Maryport and Workington to the south which are strongly founded in their industrial heritage and have been heavily dependent upon manufacturing employment. The impact of the long-established industries of coal and steel and the subsequent emergence of manufacturing industry is reflected in the landscape, whilst the deprivation brought about by their decline is a challenge for regeneration agencies. Allerdale Borough Council has an ambitious regeneration agenda, whereby in order to stimulate pride, well being and ownership, and to encourage inward investment, the area must be clean, attractive and healthy. This is seen to be an essential ingredient if tourism is to flourish in an area. The Borough Council has prioritised its service provision to tackle the most pressing issues; housing, leisure and cultural facilities, and high quality infrastructure, seen most recently by the development of the shopping centre in Workington town centre. In order for tourism facilities to grow and flourish the local resident population must first have employment opportunities, services and facilities in place to be able to retain the local population and encourage the tourist to visit. The attraction for the tourist should grow naturally from the wealth of provision for the local population and economy. Following on from Best Value performance reviews, Allerdale Borough Council identified weak areas of delivery and in light of high levels of tourism provision provided by other tourism specific agencies encouraged the council to â&#x20AC;&#x153;move resources from this underachieving areaâ&#x20AC;?. Whilst tourism per se is not considered a key activity, leisure and cultural activity is seen to be fundamental in encouraging community participation, local pride and innovation, which in turn should encourage a sense of place, and a lifestyle and culture which will encourage inward investment, retention of young people, a vibrant collection of attractions and events which will not only appeal to the local
40
population but also to those from further afield, who may come as day visitors which in turn encourages overnight stays. The changing infrastructure and substantial capital investment from NWDA and SRB monies and the development of the Harbour, shopping centre and The Cloffocks
via
Workington
Regeneration
http://www.timesandstar.co.uk/regeneration/, presents Workington with a new landscape on which to grow this
emergent tourism economy, and there is
already a collection of themes in place attracting interest and action from local community groups which could be harnessed and potentially nurtured to become the basis for tourism for Workington. THEMES â&#x20AC;˘
INDUSTRIAL HERITAGE
Building on the invention of the Bessemer Converter, which revolutionised steel production in the late 1800s, Workington has a wealth of industrial heritage sites upon which to develop a diverse visitor attraction which initially would be of interest to the local population, but with careful advertising and awareness raising could be of attract families visiting the Lake District, empty nesters with an interest or previous engagement with coal/ steel/iron, or the development of the railway. An important element of this industrial heritage is based on Workington being recognised as the home of the Bessemer Convertor, case studies of good practice
include
http://www.lwl.org/LWL/Kultur/wim/S/hattingen/English_version/index2_html http://www.lwl.org/LWL/Kultur/wim/profil/English_version/index2_html This could be linked to the potential adoption of steam railway activity linking in with the Ravenglass to Eskdale railway connecting Workington, Maryport and Whitehaven as an alternative transport opportunity along the West Coast community rail line, calling at smaller destinations with ambition to redevelop such as Harrington, a small picturesque harbour to the south.
41
•
ARTS AND HERITAGE
There is an active arts and heritage interest in Workington which comprises some internationally renowned sculptors, designers, audio artists, and contemporary artists, who each draw on intrinsic elements of industrial activity as an inspiration to their creations, for example: Shaw Williamson – Sculptor http://www.sculptureint.com/ Alter-Native (Mark Newport Arts) Ethos Design (Karen Thompson) Workington Heritage Trust has ambitions for a £8 million theatre, visitor centre, conference centre, gallery, dance-studio and community centre development in Workington Hall. Whilst not currently established as a creative area – there is the potential for this to change with the emergence of Creative Cumbria. http://www.businessgazette.co.uk/viewarticle.asp?id=204826 http://www.businessgazette.co.uk/viewarticle.asp?id=204826 •
SHOPPING/RETAIL LEISURE
Building upon the £35m investment to Workington Town Centre, some further development of the shopping provision could be a viable development for the town, attracting customers from across Cumbria.
OTHER LESS DEVELOPED THEMES •
TRANSPORT AND TRAVEL – (BUSINESS TOURISM)
The established port has the potential to develop as a larger maritime port encouraging freight traffic from Larne, and also serving as a potential cruise port for the north west. Barrow has a nuclear terminus which requires heightened security and armed personnel. The attraction of encouraging freight could spin out into the service economy surrounding freight such as hospitality facilities for long haul drivers coming across from Europe at the East Coast ports. This might include infrastructure such as recreational facilities, internet connectivity, laundry services, and health care services such as doctors and dentists etc.
42
•
ENVIRONMENTAL INFRASTRUCTURE
The river Derwent flows through the heart of the Lake District and has played a pivotal role in the economy and industrial development of the Lake District. A trail from “Source to Sea” could encourage transit of visitors from the already well visited central Lake District along the course of the river tracing its role in the production of slate (Honister) pencils (Keswick and along the west coast of Bassenthwaite) famous for its ospreys, the Roman history in Cockermouth, along side the poetic heritage of Wordsworth, Coleridge etc. and on to the industrial foundations of steel production and coal on the west coast. Elements of geology, meteorology, social and industrial history can be mapped along this route, as well as the new era of cleaner energy production in the form of wind turbines, juxtaposed with the coal fired steel works. In addition to this the new flora and fauna habitats created on the slag heaps could be interpreted for visitor and tourist alike. Sources Allerdale Borough Council www.allerdale.gov.uk Allerdale Borough Council Self Assessment 2003 http://www.allerdale.gov.uk/downloads/page282/SA%20final%20sm.pdf A Cultural Strategy for Allerdale (Appendices) http://www.allerdale.gov.uk/downloads/page430/culturalstrategy_appendices_me _13_05_04.pdf The Cumbria Business Gazette http://www.businessgazette.co.uk Cultural Tourism Works Action Learning Set notes from 12 December 2002 (The Tourism Centre – Lancaster University) Workington Transport Heritage Trust literature Tara Sewell, The Tourism Centre, 2005
43
APPENDIX 10 BROADBAND APPLICATIONS FOR WORKINGTON This is a short conceptual paper that summarises the potential benefits broadband connectivity could provide to Workington. As a secondary issue the paper considers the possible role to be played by local players and the degree to which they may consider engaging external ICT services. Connectivity Broadband services are not generally available to Workington at speeds which would allow the services below to be provided. But they could rapidly be supplied via the CLEO network, which has unbundled the local telephone exchange in order to serve schools and colleges. There are also commercial providers of connectivity who may be prepared to unbundle the exchanges themselves to provide these additional services. Availability is therefore not an issue and this paper simply assumes that all broadband connections already exist in order to describe the benefits that could be derived from them. Services If we assume an ADSL1 service capable of providing 2Mbs service now but which is capable of upgrade to 8Mbs connections then the following products would all be available: •
Video streaming, including commercial cable TV and (if available) local TV;
•
Voice over Internet Protocol or VOIP (very low cost telephony);
•
High speed data transmission and
•
The usual web page based applications and email systems that would benefit from higher speeds.
Applications In general terms such services can support the following activities: 1
ADSL: asymmetric digital subscriber line; a basis for broadband connectivity over telephone lines
44
â&#x20AC;˘
An interactive civic site providing local community news, services and information. This could include news on community events as well as general information on business or tourist opportunities.
In turn that
could be tied into local advertising including a jobs board. â&#x20AC;˘
Business services. With VOIP telemarketing and call centre businesses could obtain cost advantage (but no more so than any other area within which the bandwidth makes VOP a possibility). Conceivably this might tie into the derelict parts of the Corus site to run an e-managed warehouse business. There might also be opportunities for businesses dependent on high volume data transmission such as video content and large-scale data processing including on-line consumer applications. The latter category would also include processing of government data.
â&#x20AC;˘
Promotional services other than those provided by the municipality though probably run in close conjunction with it.
For example the
Brewery Arts Centre in Kendal recently ran an interactive video diary of wartime recollections and memorabilia.
Such activities serve among
other things to foster community spirit. Civic advantage? The service and applications described would not be unique to Workington, though when compared to other parts of the county would for a time be significantly superior. On a national basis therefore there would not be any longterm competitive advantage. However as service is upgraded in the rest of the country the town will suffer relative decline unless broadband is delivered. If for example local businesses are constrained by transmission speeds from entering into e-supply chains then there will be incentive either to move or alternatively disincentive to invest in anything other than business that is purely local. Customer base No market survey is available for connectivity in the town and this paper assumes a relatively low connection rate to the Internet, especially for businesses.
That assumption may be erroneous.
If it is correct then it is
probable that the civic authorities might need to take the lead in promoting
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broadband use. Not only would it need to act as prime customer to the service provider but it would (probably) need to ensure public access to information provided from the civic website.
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Case Study – ICT Matrix in Wray Wray village has been working with Lancaster University to roll out wireless based broadband to the community. The university is providing the service as a test bed for research. The village has formed Wray community Communications Group to roll out service to farms and hamlets beyond the village. It has also provided free wireless Internet access points in the village pub and café/craft shop. Communal access points not only ensure connectivity to those without access to their own PC but also promote local businesses. In larger communities it may be possible to charge a licence fee to the access provider. This project is now being used as a case study by the BBC.
Content Involving municipal government also provides an opportunity for communal planning. A local intranet, once created will help engender communal spirit but the very fact of planning for it will further knit the community together. The key issues here are what content the community would want to see on “its” network, who provides it and how it is to be written. Further issues, for the community to decide, include such matters as the linking of web sites within the town and beyond, the frequency with which content on main pages is to be changed and the availability of free web pages to deal with one-off issues. Content is an entirely separate issue form the provision of basic connectivity and depending on the complexity and interaction of different themes/services could in itself justify engagement of design consultants. Intranet? There is a related question, which is the degree to which Workington wants to create a local intranet.
The choice here is wide, ranging from a series of
independent web sites connected by basis hyperlinks to a fully interactive system that updates content from one site to another and includes interaction through public data access points.
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Conclusions In a conceptual paper such as this it is only possible to suggest overall findings. These include the following:
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Workington needs to think seriously about broadband provision to avoid economic disadvantage and fragmentation of the community.
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There is probable need for the civic authorities to lead by example. In doing so the town will need to think how public and private sector connections are going to interact. That in itself will require further thought about the way in which broadband connection charges are going to be shared.
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To achieve maximum impact from service there needs to be a shared vision about content and how this is to be created.
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There may be merit in creating a specific intranet though this would entail ICT design services.
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Possibly BBC among others might be interested in providing advice on content though probably as part of a total package.
Roderick O’Brien, Director of Enterprise and Commercialisation Division, 27.05.05
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