July 22 2014 Latest news:
By Shaun Lowthorpe, Business Editor
Wednesday, August 3, 2011
If you build it they will come...
That is the hope of the businesses and councils supporting a bid to create one of the government’s flagship enterprise zones in Great Yarmouth and Lowestoft.
This week saw supporters of the bid get together at one of the proposed sites in Lowestoft to make a public statement of intent about why it would be so good for businesses, not just in the two towns, but across the region.
The coalition government wants to create 21 enterprise zones as part of its bid to tilt UK plc away from the public sector and the City of London and towards the private sector and manufacturing.
The idea first emerged in George Osborne’s Going for Growth budget in March, and the government approved the first wave of 10 zones – mostly in larger cities in the north.
Douglas Nunn, managing director of Fraser Offshore:
I grew up in Lowestoft and now run a business in Great Yarmouth.
Both towns were built on fishing, shipbuilding and agricultural industries. In the last 30-40 years these industries have disappeared, with resulting high unemployment and associated social problems.
A respite was afforded by the growth of offshore gas drilling and production, which sustained many good jobs in the area. However, there has been a shift of focus by tier one oil companies away from this area to Aberdeen, or in Shell’s case the Netherlands.
The one potential bright spot for local jobs is the energy industry. The East of England has a unique mix of energy opportunities ranging from wind power to nuclear to biomass, to carbon sequestration.
Combined with twin ports, a useful geographic location and a heritage of experience in offshore, the region is poised to re-invent itself as an energy hub.
If successful in attracting a critical mass of businesses engaged in these new energy sectors, the region would gain a new lease of life and would rapidly become self-sustaining in the economic sense.
Timing is crucial –- we must act quickly to secure these businesses as the “old” regional energy source of offshore gas gives way to “new” opportunities.
Our own business employs 32 people locally, mainly in high-value engineering based work. Over the last five years, we have contributed more than £105m to the exchequer in corporation tax, VAT, National Insurance, and PAYE.
We understand the fine balance of considerations in which even relatively low-order incentives such as enterprise zones can result in a decision to locate a business in one place rather than another.
Having opted to locate our business in this region, we have been impressed by the strong local work ethic.
The people of Lowestoft and Great Yarmouth have a heritage of hard work at sea and on land – they are desperately keen to work and I, for one, would far rather see them in fulfilling, well-paid and exportable energy sector jobs than stacking supermarket shelves
Roger M Everitt, ASCO UK Southern North Sea managing director:
ASCO has identified threats to their business which will be replicated in other sectors of the local energy industry if action is not taken quickly to improve the facilities and opportunities within Great Yarmouth and Lowestoft.
The new enterprise zone will assist in the retention of existing good quality personnel and invigorate the area to an extent that will encourage other businesses and personnel to move into this location.
Without this investment our business, along with others in our supply chain are exposed to falling standards which will have a detrimental effect in the near future.
The return of tax receipts from the East Anglian energy industry is, we believe, an important contribution and with very little infrastructure investment required for the development of the proposed enterprise zone, in our opinion, this represents great value for money.
Paul Briddon, president of the Lowestoft and Waveney chamber of commerce:
The offer from Great Yarmouth and Lowestoft is truly unique. The value of the energy opportunity across oil and gas, including de-commissioning and carbon capture storage, wind and nuclear, within a 50-mile radius of the proposed enterprise zone is reckoned to be in excess of £50bn. Proximity to market is key to the industry.
Local businesses serving this sector operate in worldwide markets.
The opportunities emerging in offshore wind operation and maintenance are estimated to be at least £3bn to 2020 and will be locally based and sustained for 60 years.
As the underlying cost of gas production and development costs of offshore wind are increasing, there has never been a more important time to focus on the true value of retaining and developing the indigenous supply chain.
This proposal is another example of how the communities of Great Yarmouth and Lowestoft are working together to improve the economic and social wellbeing of the two towns.
Steve Scott, managing direct of TMS Media:
The energy industry in the sub-region boasts a 45-year history. The area is home to more than 500 companies in the direct energy supply chain that has a dedicated workforce of 10,000 experienced in all aspects of energy, and hundreds more businesses contribute by providing services to the core supply chain.
But a coastal enterprise zone would be more than just a field of dreams –supporters hope it will be the spark to kickstart a boom in the region’s energy industry which could deliver 2,000 jobs and attract 80 businesses by 2015 and a further 13,500 jobs over the five-year lifetime of the zone.
The bid itself has been put together by the Norfolk and Suffolk Energy Alliance, a coalition of four councils covering the area, the chambers of commerce and the East of England Energy Group (Eeegr) who believe it is the ideal way to tap into the predicted £50bn energy boom.
And that is not all. The government has said that local enterprise partnerships such as New Anglia will be able to retain any increased business rate to support other economic development projects across the wider area which could generate an extra £200m in the next two decades.
Both Great Yarmouth and Lowestoft have had their slice of regeneration money in the past from government and the European Union.
The idea is not new – enterprise zones were at the forefront of Michael Heseltine’s plans to breathe new life into the British economy back in the 1980s.
But the criticism back then was that rather than generating new growth, many firms just seized the tax breaks and moved from existing areas into the proposed zones.
Yet this enterprise zone approach is said to be different from both that of the Thatcher government and New Labour.
For starters, there is no up-front cash, just a series of incentives aimed at attracting new firms in.
With its mix of tax breaks, relaxed planning rules and promises of better broadband links the idea is that private firms will be tempted to set up, or even expand their existing operations.
And rather than being centred on one single site, the proposal is for the zone to include seven existing business park sites, two in Great Yarmouth and the rest in Lowestoft.
Andy Wood, chairman of New Anglia, admitted the approach differed from bids in other parts of the country, but the advantage was that the existing sites, which came ready made with road links and other infrastructure, could be quickly brought into use.
“That’s a strength but we are mindful that this could be perceived as a weakness in Westminster,” Mr Wood said. “But the bid supports the aims of the Local Enterprise Partnership (Lep) based around tourism and developing the energy industry, and offshore, and is in line with government policy.
“We mustn’t get carried away because this is a bid process and with 29 other bids we have a one in three chance, but we think we have got a strong bid.
“There is enormous support for this. For years both Great Yarmouth and Lowestoft have been relying on grants. But an enterprise culture is developing and there is a real culture of enterprise that can only be built on.”
Great Yarmouth MP Brandon Lewis said, if successful, the proposal would be as significant as dualling the final stretch of the A11 in terms of generating new growth.
“This is another part of the jigsaw,” he said. “We can use the impetus to secure growth. We have got a huge opportunity through hi-tech industries. I think we will see growth right through Norfolk and East Anglia.”
Peter Aldous, MP for Waveney, said: “This is a well thought through proposal. Evidence from the private sector shows that granting the area Enterprise Zone status will make a clear difference. It will be the tipping point for inward investment.”
A succession of coalition ministers, and before that shadow ministers, have already made the trip to the area and heard the strength of the energy industry case.
But decentralisation minister Greg Clark will be the person who will make the final decision later this month. Yet even on a political level, with the Conservatives likely to be keen to keep their two MPs in the town, it is difficult to see what is not to like about the bid.
However, ultimately, the real test for the enterprise zone is whether it can deliver the jobs and growth both areas so desperately need.
Colin Law, leader of Waveney District Council, said he believed it was right for both areas.
“Lowestoft and Great Yarmouth working together create a credible international offer in offshore wind farm development and longer term operations and maintenance,” he said. “This bid will benefit not just the defined enterprise zone areas in both towns through direct rate relief to new and expanding businesses but the whole of Norfolk and Suffolk through the related supply chains.
“The Lep partnership has put forward a strong sector specific bid to maximise opportunities for local job creation and new business development from major investment in offshore wind which our area needs to lead it through and out of recession.”
Tesco ditched beleaguered chief executive Philip Clarke today as it recruited an outsider from consumer goods giant Unilever to try to restore its fortunes.