Partner Article

Securing inward investors is crucial

EARLIER this month I said the North East needs to “size up the competition and offer more”. Now matters have shown we are beginning to move forward.

First, the North East Local Enterprise Partnership has developed the North East Investment Fund – see www.nelep.co.uk/ne-investment-fund for more information.

This combines two elements of Government funding, the Growing Places Fund and the Regional Growth Fund, into a £55 million revolving investment fund for capital projects that will drive local economic growth.

Next, the Association of North East Councils (ANEC), representing the 12 local authorities that make up the two local enterprise partnerships in the region, published the report of its Economic Development Task and Finish Group.

There are four key themes – access to finance; digital and broadband communications; transport and energy infrastructure; and inward investment and promotion.

Leading with an encouraging statement that both LEPs have an important role to play in driving forward our economy, the report goes on to say that these themes are important as the Government takes forward Lord Heseltine’s proposals, mainly the creation of a competitive single pot to which LEPs must bid for funding.

My personal theme would be to identify the barriers that prevent us from driving up demand and slow economic growth. For me, the ANEC recommendations for inward investment and promotion are most interesting, since securing inward investors as well as supporting our indigenous businesses is crucial.

They say we need to encourage close working with UK Trade and Industry; provide the UKTI team with the evidence base to promote investment opportunities; critically assess why companies decide not to invest in the North East; harness civic leadership and operate through the relationships with foreign ambassadors, UK consulates and embassy offices; and that councils need to work with businesses and young people to promote local jobs.

Personally, I think it falls short of the joint marketing, cohesion and collaboration that the region needs. I hope we can go further and develop the collective strength required to beat our competitors and attract the inward investors.

Perhaps the best example of this shortfall is the report that the cessation of the Passionate People, Passionate Places marketing campaign has had a damaging effect on the tourist industry in the region which had a £4bn impact on the economy.

Relying on UKTI is not the answer. We need a much stronger focus and action plan if we are to achieve the growth and jobs that are needed. My final matter is the good news that the North East LEP has commissioned a brief to tender for a website that will hold details of the region’s strategic sites and premises. This will help significantly in the availability of information to make the task of the inward investor easier and quicker and instill greater confidence that this region can deliver its needs.

This was posted in Bdaily's Members' News section by Kevan Carrick .