Member Article

At last we almost have a plan

The region’s vision for economic growth and a single marketing strategy, essentials for attracting inward investment at a Top 200 level, look to be within reach at last, to Kevan Carrick’s relief.

What a difference a year makes. I wrote in the previous Top 200 supplement that “the north east is good and has a lot to offer but is not ready”.

I was referring then to the idea that as a region, ready and able to compete, we needed to have a vision for economic growth, a single marketing strategy to attract the inward investors and a database of strategic sites and premises to act as a ‘one stop’ shop for enquiring top 200 companies and others besides.

I’m thrilled to say that since then we have made huge strides in the right direction. Full marks to the seven local authorities, (LA7) and the North East Local Enterprise Partnership (NE LEP), along with everyone else who, over the past year, has made efforts to turn the regional economy around.

The LA7 has secured government support to form a combined authority (CA) that will target jobs, infrastructure and economic development. The CA is proceeding to secure governance which should be granted by spring 2014.

Meanwhile the NE LEP has commissioned the Economic Review chaired by Lord Adonis, and with a strong team, consulted widely. The review has been well received in the region as a pointer towards achieving economic growth and jobs.

Further, the collaboration of LA7 and the NE LEP has seen now the submission of a statement of case for European Union funding from 2015 to take over from the expiring JESSICA funding and JEREMIE funds. Readers will recall each of these funds brought significant EU money to the North East for SME support.

It would be disingenuous not to recognise that the JESSICA fund has performed poorly due to its dependency on a viable property market offering equity funding. The funding has had no impact because much of the job creation development was operating at a loss. However it is now hoped that the assisted area funding application will perform better. It is also widely recognised that a policy of achieving a viable property market in this region by creating demand is essential.

The LA7 and NE LEP are preparing a North East strategic economic plan, the first draft of which is expected for consultation later this month (October). As a member of the external advisory group, I am delighted by the enthusiasm and commitment shown.

I will be ensuring that the draft is critically assessed, but more importantly, is brought fully to the property, land, development and construction sectors. The final plan is to be submitted to government by the end of the calendar year. This will then form the basis of a bid for a Growth Fund for the CA to act on.

Plenty of other activity is going on in support of all this. During 2013, the Royal Institute of Chartered Surveyors, (RICS) North East Region and G9, the group of firms of chartered surveyors operating in the region, have led some excellent consultation with leaders of councils, their chief executives and the NE LEP.

There have been two themes. First, to market the region to attract new businesses and second, to prepare a database of strategic land and properties.

The database is now in progress with support from NE LEP and will go live soon. It will be maintained by G9 members with entries of properties available as they come to the market. This will be a significant help for those dealing with Foreign Direct Investment (also known as FDI or inward investors).

Marketing the region is taking longer to put into effect. But significant developments are being made with a group working toward a more collaborative approach to economic development. We should see a change as soon as the CA begins to operate.

A word of caution, however. While all this looks and sounds extremely positive, let’s not forget the competitive world outside our region continues. We need to increase demand because this will help make the property market more viable and attract more investment. While I am more optimistic than this time last year, delivery of these matters and the consequence of management of change that will arise, must be driven forward quickly and unnecessary delay avoided.

We have something special to offer from our region, with location advantage, culture and people. Let us capitalise on it and seek to grow the economy and create jobs as quickly as we can.

This was posted in Bdaily's Members' News section by JK Property Consultants .