.

2 In addition there have been informal presentations by the Managing Director of IWEP to this committee on particular aspects of the company’s work and opportunities for discussion between IWEP and Members to enable a greater understanding of both the economic services delivered by IWEP and the relationship between IWEP and the Council.

CONSIDERATION FOR FUTURE REPORTING

Having gone through an extensive period of familiarisation and clarification, Members may now wish to consider moving to a biannual reporting cycle for this committee in the 2004 / 05 financial year. This would provide the opportunity to receive a general report on IWEP activities twice a year, with the option to request additional, more detailed progress reports on specific key projects such as Cowes Waterfront at other times.

QUARTERLY REPORT JULY – SEPTEMBER 2003MANAGING DIRECTOR’S REPORT SEPTEMBER 2004

3 Managing Director’s Report September 2004

Appendix 1 ~~provides an overview of~~ covers the activities ~~all~~of IWEP as reported to the IWEP Board of Directors by the Managing Director~~activities f~~ in September 2004. It provides an overview of performance on all IWEP activities~~or the period~~ ~~July – September 2003~~ and is not restricted to those which are funded by the Council. ~~Members had particularly asked for information on~~ ~~the Ambassadors Scheme and on~~ ~~progress against~~ ~~the~~ ~~PSA target~~s ~~which the IWEP~~ ~~are~~ ~~delivering on behalf of the Council.~~ ~~This~~ ~~information~~ is ~~provided~~ ~~in paras 22-25 (Ambassadors Scheme) and 26-28 (PSA targets).~~

4 This extra information allows the Executive to keep under review the totality of the IWEP’s contribution to economic development activity on the island and consider whether the Council's own contribution is appropriate in relation to the activities undertaken by other agencies.

5 Whilst the main activity of the IWEP during this period has concentrated on the reorganization of the Company, other activities worth noting and described further in Appendix 1 are:

AIF (Area Investment Framework) – the final copy of the Performance Plan for this has now been submitted to SEEDA, and despite some concerns on SEEDA’s behalf over the relationship between the AIF and the Local Strategic Partnership, they have confirmed that the contract will be signed. In addition a draft 3 year funding proposal for both SEEDA’s direct and devolved funding has also been submitted.

Cowes Waterfront – Stage 2 of the East Cowes master-plan is being completed, with a public consultation held in East Cowes Town Hall on 17-18 September, being a key element in this process.

PSA Target 11 – this has been the subject of previous reports, but in spite of various problems 75% of the annual target has been achieved in 50% of the time (ie six months). Council and IWEP staff are working together to try and resolve any potential problems with the delivery of this target (see QPMR report to this meeting).

Isle of Wight Branding – as part of the Branding strategy “team Isle of Wight” has been developed, promoting the Island as a “gold” standard. The support given to Shirley Robertson and her crew has given a large return on investment, with the coverage of their gold medal win in Athens providing hundreds of thousands of pounds worth of media coverage for the Island.

Members may wish to note, in particular, the changes on funding programmes on the Island, with SRB V and the Rural Development Programme (RDP) ending in March 2004. It is a credit to the IWEP in generating activity on the Island that the monies for both of these have been fully committed, with an extra £400k made available under the RDP. This will fund projects which have been held in reserve, details of which will not be available until they have been confirmed by SEEDA. It is worth noting that other areas have not been so successful in using their funding.

Cowes Waterfront continues to progress well and is seen as a flagship development for the Island. This is a wonderful opportunity to demonstrate that with the right support the Island has the ability to develop and deliver a complex, long term project in a planned and strategic way, with the active participation of a range of partners.

~~Other items worth noting are:~~

·~~The Isle of Wight branding and marketing initiative is gathering momentum and support from a range of key organisations on the Island.~~

·The Area Investment framework (AIF), into which the Council has had considerable input. Papers have gone to Director’s Group to ensure that priorities put forward will meet the objectives of Island Futures and the Council. These will require endorsement by the Executive.

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

6 The work undertaken by IWEP contributes to the following:

· Economic Development Best Value Improvement Plan

· Economic Development PSA Targets.

CONSULTATION PROCESS

7 N/A

FINANCIAL IMPLICATIONS

8 For the financial year 20043 / 20045 the Council have contributed £1094,000 in cash, in addition to which they have seconded staff as per the Service Level Agreement. ~~The Council continue to honour their agreement to pay the rent on Enterprise House should IWEP be unable to do so. This amounts to £135,000 per year paid in quarterly instalments of £33,750.~~

LEGAL IMPLICATION

Legal implications are as laid down in the Service Level Agreement between the Council and IWEP, and the legal agreements between the same parties relating to the Council guarantees for rent on Enterprise House and the Innovation Centre.

9 Taking steps to promote the economic wellbeing of the Island is a discretionary executive function of the cCouncil under Part 1 Local Government Act 2000. Discharge of that function by the Executive is susceptible to overview and scrutiny under s13 of the same Act.

APPENDICES ATTACHED

10 Appendix 1 - ~~Summary of IWEP activities for the period J~~Managing Director’s report September 2004 ~~uly – September 2003.~~

BACKGROUND PAPERS

Service Level Agreement between the Council and IWEP

2. Legal Agreements between the Council and IWEP undertaking to guarantee payment of

the rent on the properties known as Enterprise House and the Innovation Centre, St

Cross Business Park, Newport, should the IWEP be unable to do so.

3. Agreements for IWEP to deliver PSA Targets 3 and 11 on behalf of the Council

Contact Point:~~t : ,~~ F ~~John Bentley~~

Lesley Williams,

~~Head of Corporate~~ Principal ~~Policy~~Economic Development ~~and Communications~~Officer,

~~Ext~~ 82 3797

Email: l[email protected]~~346~~

JOHN BENTLEY

Head of Corporate Policy and Communications

~~APPENDIX 1~~

~~IWEP ACTIVITIES – QUARTERLY REPORT JULY-SEPTEMBER 2003~~

~~Summary~~

1 The regeneration programmes are currently delivering to projected profiles for the year 2003-04. Several Grant programmes will end in March 2004 and work is well underway to access monies from the single pot (SEEDA) and from other funders, for future regeneration activity through the Area Investment Framework.

~~2 A very positive development in terms of Inward Investment and the Ambassadors scheme is Island Call, setting up a call centre in Ryde, creating up to 20 jobs in the first instance.~~

~~3 Ryde Development Trust has secured a stage 1 approval for £750,000 of Townscape Heritage Initiative funding from Heritage Lottery Fund.~~

Regeneration Programmes

~~4 Quarterly returns containing key indicators, outputs and outcomes for the Quarter 2 period (July – September) have been completed and sent to SEEDA at the end of October.~~

SRB Programmes V and VI

~~5 The SRB V programme is due for completion at 31 March 2004 and all monies in this round are fully committed.~~

6 The underspend of £638, 936 in SRB VI at the end of 2002-03 was carried forward into 2004-05 and 2005-06 and not into the current year (2003-04) as was first envisaged. Spend in the current year is ahead of profile due to accelerated delivery of projects.

7 Mike Wheeler has been appointed a project manager for all public realm work in Ryde for the next 18-24months. Ryde Development Trust has secured a stage 1 approval for £750,000 of Townscape Heritage Initiative funding from Heritage Lottery Fund. This funding will enable work to be carried out on shop front and building improvements in Ryde.

~~8 Ian Stephens is now the IW Council representative on The Ryde Development Trust Board. The Ryde Development Trust is due to expand membership which will create a further position for the IWC.~~

~~Rural Development Programme~~

9 This programme will cease in March 2004 and all monies are already committed. We have just been advised that a further amount of £400,000 is to be made available to the Island for spend this year. This is as a result of underspend elsewhere in the Region. These funds are committed to meeting the spend of some existing projects and further projects which have been brought forward from a reserve list. These have yet to be confirmed with SEEDA.

Leader+

10 A considerable number of projects are coming through this programme and a further 17 projects have been approved over the last quarter, with funding totalling £1,371,834 and match funding of £993,978. These include the Rural Training Bus, Photographic Courses at Dimbola Lodge, Rural Support for the Blind Society and Chale Nursery.

Market Towns Initiative

11 A review of the MTI delivery has taken place during the last quarter and it has become clear that existing staffing arrangements were not meeting the needs of the towns. As a consequence, key IWEP staff have taken a lead in working with the towns to manage the local strategic framework.

12 The Ventnor delivery plan has been approved by SEEDA and projects are ready for appraisal/approval under this plan. The Sandown & Shanklin delivery plans have been reviewed by IWEP staff, in conjunction with the Community Partnerships and revised versions are now being put to SEEDA for approval.

Healthy Living Programme

13 The 19 projects have been reviewed by members of the management and advisory group, together with the HLP staff. Discussions are continuing as to how to make the programme sustainable and recommendations will be shortly be made to NOF (current funders) that they should release further funding to the programme in 2004.

~~Enterprise & Investment~~

~~Cowes Waterfront~~

~~14 In just 1 year the partnership between the Council SEEDA and the Isle of Wight Partnership has achieved the following:~~

- ~~Commission of development framework Sept 2002~~

- ~~public consultation with an 85% approval rating~~

- ~~strong commitment from both the public & private sectors~~

- ~~supplementary planning guidance adopted by the IWC in July 2003~~

- ~~substantial cash investment~~

- ~~significant investor interest~~

- ~~and the purchase of 2 key sites, GKN North Works & Three Gates Rd~~

15 In addition, we have re-branded the Project to Cowes Waterfront. This was launched during Cowes Week and has already gained acceptance. The reasoning behind the name change is simple; as we put more effort in to the marketing of the Project we wanted to market a destination and not a project. We will be formalising the marketing plan during November.

16 We have also re-branded Ellen MacArthur’s boat Kingfisher; she is now called “Team Cowes”, and is entered in a race from Le Havre in France to Salvador in Brazil. This will be the first time the names of Cowes and the Isle of Wight will be marketed on an international basis.

~~17 Cowes Waterfront shows what can be done in just 12 months when a strong commitment is made by all of the parties involved.~~

~~Inward Investment~~

~~18 As previously stated, our inward investment projects do not move significantly from quarter to quarter. The number of enquiries is increasing probably due to our work under Cowes Waterfront.~~

19 We anticipate that 1 of our projects will come to fruition during November. This will create up to 20 jobs in Ryde, (see Ambassadors section). The company recently ran a recruitment piece in the County Press.

~~Innovation Centre/Enterprise Hub~~

20 The Innovation Centre continues to thrive with one new addition and one new prospect. Criterion, a company who specialise in the testing of mobile phone networks moved into the Centre during September. We have just started a real marketing push on the Centre working with key influencers such as banks, accountants and solicitors.

21 Our Hub activities include working with the composites industry on R&D requirements and waste management requirements. We are also hosting a composites brainstorm to discuss the future of the industry on the Isle of Wight.

~~Ambassadors Scheme~~

22 We have now developed our initial list of IoW Ambassadors. We have many notable names willing to help us with our efforts to promote the Island. I anticipate publishing the names as and when our web-site is launched.

23 We will be releasing the marketing material during December and are currently beta testing our web-site. The Site allows us to e-mail ambassadors on a regular basis with good news stories about the IoW. It will also provide case studies on different facets of the island.

24 An example of how the scheme should work is highlighted by our most recent inward investment, Island Call. Island Call is setting up a call centre in Ryde initially with 20 jobs. This was a direct referral from contacts we have been working with for 18 months, Andrew Austin and Andrew Morris. Their recommendation and promotion of the Island and the workings of the IoW Economic Partnership has had the direct benefit of much needed jobs in Ryde. This is exactly how I explained the new scheme would work, i.e. we would concentrate on creating jobs and attracting new investment rather than expensive promotion and high profile dinners.

~~25 Areas where I believe the Ambassadors scheme could develop are covered in our Branding Strategy for the Isle of Wight. This paper will be submitted to the Executive for consideration.~~

~~PSA Targets~~

~~26 PSA targets are reported to the Isle of Wight Council under separate cover. The following are the highlights from the reports.~~

27 ~~Target 3, Job Creation~~.

The jobs target has been profiled as a linear 33.3 jobs per quarter. (this may change in time to better reflect reality). Against Q1 we achieved 27 jobs and Q2 43 jobs; therefore we are slightly above profile. These figures do not include the new tenant in the Innovation Centre or our new inward investment.

28 ~~Target 11, over 50’s employment.~~

There have been no jobs created against this theme as yet, however there are 2 reasons for this, 1) a re-profiling of the targets and 2) a significant bid for ESF funding via SEEDA for in the region of £1 million to build a much larger scheme. Obviously the work on the bid has precluded us from the initial delivery of the target.

~~IoW Branding & Marketing~~

29 For some months now the Economic Partnership has been working with our partners to re-evaluate the marketing of the Island. As the body responsible for marketing the Island as an investment destination the Economic Partnership was chosen to put forward a draft strategy as to how this could best be achieved. The paper will explain the following:

- ~~why we need an IoW Brand~~

- ~~the benefits of a Brand~~

- ~~the process we need to go through~~

- ~~suggested Brand values~~

- ~~how to promote the Brand~~

- ~~the roles of the various organisations~~

- ~~how to harness private sector spend~~

- ~~potential funding sources~~

30 ~~The following organisations have given their full support~~

~~IoW Council IoW Health Authority~~

~~IoW Tourism~~ ~~Wightlink~~

~~Wight Leisure~~ ~~Red Funnel~~

~~IoW Chamber of Commerce~~ ~~Skandia~~

~~Cowes Yachting~~ ~~SEEDA~~

31 The establishment of an IoW Brand will attract the much needed investment in to all of our business sectors, in particular tourism and leisure. It will also give a true picture of how we wish the Island to be viewed. All other similar destinations have either established their brand or are doing so, it is therefore important for the Island not to be left behind.

~~Financial Report~~

~~32 The financial forecasts made by the IWEP for the first half of the financial year remain on target and the figures have been communicated to the corporate finance department of the IW Council.~~

~~OTHER ACTIVITIES~~

~~IWEP~~

33 An IWEP director has a place on the South East Regional Assembly and has attended the Board meetings. We have facilitated responses from the Island to a number of consultative strategy documents.

34 We have also attended scrutiny committees to look at how SEEDA deals with Rural Affairs and have had input into the Framework for Regional Employment and Skills Action (FRESA). We have responded to other surveys being carried out by SEERA in their scrutiny role over the activities of SEEDA.

35 As one of the 10 Economic Partnerships in the South East we are active members of the South East Economic Partners (SEEP) network meetings where information and best practice are shared between the partnerships, GOSE, SEEDA and SEERA.

36 We have worked closely with Charlotte Dixon, SEEDA Director for Economic Inclusion and Sustainability to support policy development for the delivery of AIF action plans across the region and to address the Social Inclusion Agenda. We have attended a couple of network meetings with all 10 AIF partnerships including the meeting on 7^th October to discuss the Draft Proposal for the development of an area network for AIF development which includes Southampton, Portsmouth, Isle of Wight and SEEDA to share information and find models of best practice. Although each of the areas is quite different there are common themes and models that can be shared and there should also be opportunities to develop joint projects across the Solent area.

37 We are represented on the South East Rural Towns Partnership (SERTP) by Joanna Richards our Rural Development Officer and she has been involved in the development of the bid to SEEDA for the development of the Market Towns delivery through the SERTP group.

38 We have representation on the Regional Management Group for the Leader+ programme, which is a European Programme managed through GOSE, RAISE through Sue Dovey, Chief Executive of the Rural Community Council (RCC), and the SE England Rural Forum through Councillor Harry Rees.

39 We attend Board meetings of the Hampshire Economic Partnership as non voting members. We have been able to look to create joint working across the marine sector and are investigating the potential for the Solent being used as the base for some watersports activity for the Olympic Games bid. We are very keen to create the ‘Solent Triangle’ between Portsmouth, Southampton and the Isle of Wight as an area for water-based activities. We have also had joint working on the rural agenda through work with Sparsholt College. We have attended Board meetings of VTS Careers and have been able to highlight issues around the need for more Adult Guidance on the Island and provide opportunities to link regeneration activities to the careers service.

40 We have worked with Southampton SRB team to find opportunities for joint working and as a result have made links with Southampton Institute. The outcome has been that the Institute are supporting the delivery teams to look at evaluation of grant programmes as a mechanism to support the continuous improvement process and identify issues that are ‘blocks’ to regeneration activity. We are also looking to work with the Institute to develop better interfaces with the community and carry out research to find effective media for delivering learning opportunities within communities.

~~AIF~~

~~41 The AIF Board is being established as a sub-group of the IWEP. It will include representation from the following organisations yet to be nominated:~~

~~IWC Health~~

~~Private Sector Voluntary Sector~~

~~Business Link Wessex GOSE~~

~~LSC SEEDA~~

42 Draft action plan has been submitted to that group for discussion and further work will be carried out for a submission to SEEDA in early December 2003. The IWEP have supported the IWC in running the themed workshops for the Local Strategic Partnership. The priorities from the Island Futures plan are being fed into the document.

COUNCILLOR~~LLR~~ HARRY REES

Portfolio Holder for Economic Development, ~~European and~~ UK and EU, Regional ~~Affairs~~Issues

APPENDIX 1

ISLE OF WIGHT ECONOMIC PARTNERSHIP

MANAGING DIRECTOR’S REPORT

September 2004

Introduction

Activity during this period has mainly concentrated on the re-structure of the Company. Other highlights have included delivery of the AIF Performance Plan, Cowes Week and of course the success of "team Isle of Wight" at the recent Athens Olympics.

Re-structure update

At the previous Board meeting on the 15^th July, the Board approved the 3 phase Company Re-structure Proposal. Phase 1 was due for completion by the end of September; to date we have completed the following:

- 3 posts confirmed as being redundant (2 voluntary)

- 2 posts transferred (TUPE'd) to Ryde Development Trust

- 3 posts reduced by 'natural wastage', 3 resignations to take up alternative employment.

- Temporary relocation into a single unit. Full re-location by the end of September

- Closure of our Cowes office by the end of September

We are therefore broadly on plan.

Area Investment Framework:

We have submitted the final copy of the AIF Performance Plan for SEEDA's devolved funding. SEEDA still has some concerns, mainly over the relationship between the Area Investment Framework and the Local Strategic Partnership; however, we have received confirmation from them that they are willing to sign our contract by the end of September.

We have also submitted a draft 3 year funding proposal for both SEEDA's direct and devolved funding. Due to time pressures from SEEDA, we have only been able to consult with Derek Rowell and the Vice Chair of the LSP, William Shaw. We have reflected the Investment Priorities as established by the AIF, whilst building in some flexibility to allow for change over the 3 year period.

Cowes Waterfront

Cowes Waterfront is the overall initiative for the development and investment in the Medina Valley and as such includes Cowes, East Cowes & Newport. The Initiative will be delivered by a number of projects, eg East Cowes Project, Newport Harbour Project, PAN Project etc etc. We will attempt to include all mainstream projects within the area, regardless of which organisation is leading. This ensures consistency throughout and better communication to the public.

Stage 2 of the East Cowes master-plan is being completed with a public consultation in East Cowes Town Hall from 17th -18th September. A further newsletter has been sent out to 10,500 local residents informing them of progress.

The team hosted several events during Cowes Week aimed at promoting Cowes Waterfront to, developers, statutory bodies and local stakeholders.

Branding 'Inspire'

With the AIF Performance Plan now submitted we will shortly be submitting our Branding proposal. With multi-agency support, including the Full Council, the LSP and SEEDA, we anticipate being able to access the monies during October 2004. This is a vital piece of work for the Island and will lead to a much improved image as well as significantly improving our investment prospects.

GOLD medal

As part of our Branding strategy we have developed "team Isle of Wight", promoting the Island as 'gold' standard. Our support for Shirley Robertson and her crew has reaped a massive return on our investment. As the winner of Team GB's first gold medal at the Athens Olympics; the coverage across all aspects of the media for the Isle of Wight, has run into several hundreds of thousands of pounds. We will be writing a detailed report highlighting the benefits and coverage achieved to date.

Innovation Centre/Enterprise Hub

Our marketing strategy aimed at bringing new tenants into the Innovation Centre is beginning to show fruit. We are currently in negotiation with 5 new companies seeking accommodation and are close to completing negotiations with an existing tenant seeking larger office space.

Two of our graduate companies, Criterion and Solent Composites, have now found accommodation in Venture Quays as part of the “interim letting strategy” for Cowes Waterfront.

We have also completed on a new inward investment for the Island, with the re-location of Sealift Ltd in to Venture Quays. Sealift, a boat hoist manufacturer, currently employ 6 people, but are due to add a further 4 employees over the next few months.

Enterprise House

The Council are due to sign a new lease on the building and move their Highways dept in during November.

PSA Targets

We continue to make good progress with PSA 3 and are well ahead of profile. PSA 11, job creation for the over 50's, continues to be of concern. We are writing a proposal as to how to take the target forward.

We have raised these issues with various contacts within the Council including their PSA Audit Officer.

Healthy Living Programme (HLP)

There is no funding available to sustain the HLP as a stand-alone programme beyond March 2005. Only one of the projects currently receiving HLP funding has definitely secured further funding to continue beyond March 2005. Discussions have taken place with the Primary Care Trust and IW Council (Social Services) about sustaining the HLP ethos and individual projects, and the issue will also be raised at the LSP ‘Health’ Theme Group. However the PCT has no funding available and it is not clear that any funding will be available via IW Council.

Leader +

The extra £135,000 secured, as reported to the Board in June, has been utilised and will be spent by April 2005.

The Action Plan for the remainder of the programme (2005-2008) has been submitted by the LAG to GOSE for consideration.

Market Towns Initiative (MTI)

Existing towns – Sandown, Shanklin and Ventnor are continuing to progress their existing programmes towards completion early in 2005/06.

The new MTI programme is to be known as the Small Rural Towns Programme and the Island is eligible to access £330,000 over the next 7 years. East Cowes, Wootton and Brading are currently working up their proposed bid towards a single project for each town. (SEEDA are seeking one project per town in this round rather than a clutch of small projects.)

Single Regeneration Budget (SRB)

The Delivery Plan for 2004/05 has been agreed and signed by SEEDA and also approval to the Ryde Town Improvements project, which will encompass the Public Realm Strategy work, has been received from the SEEDA Board. Work will continue to ensure we have a strategic, co-ordinated approach to the activity in the town and we already have a design brief in place through the Public Realm Strategy.

The carnival this year was bigger than previous event:

1. There were over 2000 participants

2. Crowd estimates at the illuminated procession are over 48,000 - 4% growth from last year (yet to be confirmed by the police).

3. Nearly all Ryde schools were involved (Greenmount Primary and Ryde High School each had over 300 participants)

4. If growth mirrors the economic impact, the value this year will be an additional £30,000 over the £750,000 from last year

Given that this year the mainland school term had started, these early figures are good.

REASON FOR SELECT COMMITTEE CONSIDERATION

ACTION REQUIRED BY SELECT COMMITEECommitteeOMMITTEE

As part of the Service Level Agreement between the Council and IWEP it is required that quarterly reports are provided by IWEP on their activities.

a) eEnable scrutiny of management of the contract by the Executive, and;

b) aAs the basis for future scrutiny of the approach to economic development, in the round, by the Executive.

.