PAPER B2

PAPER B2

Committee : ECONOMIC DEVELOPMENT, PLANNING, TOURISM AND LEISURE SERVICES SELECT COMMITTEE

Date : 25 FEBRUARY 2002

Title : ISLE OF WIGHT ECONOMIC PARTNERSHIP (IWP) B CHAIRMAN=S UPDATE

REPORT OF THE HEAD OF PAID SERVICE

SUMMARY/PURPOSE

This paper updates members on the recent activities of The Isle of Wight Economic Partnership. The paper will be supplemented by a formal presentation from Danny Fisher, Chairman of the IWP.

BACKGROUND

. As reported elsewhere on the agenda, the Isle of Wight Economic Partnership (IWP) has gone through a re-structuring exercise to remedy emerging financial difficulties. This will ensure that the Partnership has a sustainable future as the principle delivery arm for economic development activities on the Island.

The IWP consists of 3 executive staff teams :

C Policy & Strategy B responsible for bid development, policy development, research & information and European matters.

C Area Regeneration B responsible for delivery of SRB and RDP activities.

C Inward Investment & Marketing B responsible for attracting new investment & management of the Enterprise Hub building.

This report summarises the activities of each team over the past year.

ISLAND REGENERATION STRATEGY

In March 2001 the IWP Board approved a revised Island Regeneration Strategy (IRS) for 2001-2005. The IRS had been developed over a 6 month period in close liaison with both local and regional partners.

The vision set out in the Strategy is as follows :

ATo establish the Island as one of the fastest growing economies in the South East, creating sustainable new jobs and investment opportunities and ensuring that all our residents share in the benefits of improved prosperity.@

The Strategy acknowledges that to achieve this vision, the Island must address a number of challenges :

C A narrow and fragile economic base as evidenced by a GDP of 68% of the UK average

C High unemployment consistently above regional and national averages

C Low wages and benefit dependency

C Emerging skills shortages and recruitment difficulties

To address these issues the IRS sets out 6 strategic objectives for the Island :

Aim 1 : Building competitive businesses

Aim 2 : Creating a culture of innovation

Aim 3 : Developing the Island as one of the top UK tourist and leisure

destinations

Aim 4 : Improving skills and employability

Aim 5 : Regenerating our most disadvantaged neighbourhoods

Aim 6 : Regenerating our rural communities

Whilst the IWP has undergone significant organisational change over the past year, the Strategy remains valid B it provides a strategic framework for a number of agencies to work within.

As part of the re-focussing of the role of the IWP, a number of specific priorities have been identified :

Cowes the aim is to develop and sustain the role of the town as the Anumber 1@ yachting centre in the world and as a regional base for the marine & leisure industry.

Ryde the aim is to build upon the opportunity offered by the successful SRB bid and establish the town as a key gateway to the Island and as our indoor leisure capital.

Enterprise Hub the aim is to establish our Hub as a centre of excellence for the composites industry and as a base for innovation & technology transfer activities.

Skills & Training the aim is to develop a world class workforce with the skills qualifications to sustain business competitiveness.

Rural Regeneration the aim is to create a living & working countryside and to develop sustainable tourism activities.

These priorities will be discussed in more detail in the accompanying presentation to the Committee from the Chairman of the IWP.

REVIEW OF PARTNERSHIP ACTIVITIES

INWARD INVESTMENT TEAM

Key areas of activity are as follows :

1) Business Development

The team is working with some 40 companies to assist with accessing larger premises, planning applications, recruitment, funding, etc. Particular points to highlight are as follows :

C Time 24 : expanded to 50 employees and relocated to Somerton

C Sydenhams : set up an IOW base employing 30 people

C Seaward Marine : relocating from Guernsey, employing 15 rising to 50 within 2 years

C SP Systems & NEG Micon are both expanding creating a total of 80 new jobs. Between them both companies now employ 600 people.

2) Site Development

The Enterprise Hub located at St Cross Business Park opened in February 2001 and now houses 7 new companies B RF Engines, Generator Graphics, Matrix e-business, Edwards Ridett Partnership, Action Mercury, Vectis Innovations and Offshore Composites. The Hub is to be officially opened by Lord Sainsbury in June.

An additional 70,000 sq.ft. of industrial space has been developed at Somerton in Cowes.

A Task Group has been established to promote the development of Cowes in close liaison with the GBR Americas Cup team and the Harrison Trust.

3) Other Activities

Working with DTI Rapid Response Unit to assist redundant GKN staff to access new jobs.

Development of the IW Composites Group.

A Ameet the buyer@ event is being organised for the marine industry in March.

POLICY & STRATEGY TEAM

Key areas of activity are as follows :

1) Bid Development

A successful bid to the EU Leader+ programme has secured ,2.5 million for rural regeneration initiatives.

The Team has been supporting bids to SEEDA=s Market Towns programme.

Work is also in hand to develop a number of ESF bids for the next bidding round in March; these will have a value in excess of ,500,000.

2) Research Activities

The team has generated income of over ,100,000 from a number of research projects:

C Childrens Fund B working with Social Services to develop a ,800,000 bid to DfES

C Learning Partnership B working with the 3 sub-regional partnerships to gather information on the learning experience

C Area Investment Framework B a contract for SEEDA to develop a framework to determine the levels of Government support required to achieve our regeneration aims

C SEECOM B a regional project investigating skills needs amongst IOW composites companies

Development of Island statistics for EU Commission

Development of Performance Indicators

3) Policy Development

Working with SEEDA and local partners to develop new Regional Economic Strategy and establish sub-regional status for IOW

Working with CSERA (Central South England Regional Alliance) to promote sub-regional issues B recently completed transport study.

Drafting of IW Social Inclusion Strategy.

Developing proposals for new Afunder-finder@ service.

4) European Activities

Running of a series of seminars to support ESF bids from a range of Island agencies.

Support for development of an ESF bid for the care homes sector.

Regular dissemination of information on EU activities and bidding opportunities.

Brussels Office Business Plan being developed.

Petition to the European Parliament being developed as part of the on-going lobbying to secure objective status.

AREA REGENERATION

Key areas of activity are as follows :

C In Ryde (SRB6 - Year1)

24 projects have been started under this programme ranging from feasibility studies (Cross Solent Travel Study, Ryde Health Village) to business support initiatives, community projects, infrastructure projects and training initiatives.

C Key outputs for the year include B 16 jobs created, 43 business starts, 6,242 young people benefiting from projects, 33,882 sq.m. improved business floor space.

C Island Inclusive (SRB5)

This programme has been running for three years and will be completed March 2004. There have been 40 projects supported under this scheme covering capacity building, community development, support for disaffected young people, community safety, training and education and extra support for young children and older persons.

C Key outputs for the year include - 18 jobs created, 289 people accessing qualifications, almost 2,000 young people involved in crime prevention initiatives.

C Cowes & East Cowes (SRB4)

This programme has been running for 4 years and will complete in March 2003. Enormous progress has been made in the development of the local regeneration partnership and it now has a sustainable structure and delivery arm. 33 different projects have been delivered in the area. Particularly successful have been the Conservation Area Scheme, The Youth Internet project, Play area enhancements and a number of joint initiatives with Primary, Middle and the High School.

C Key outputs for the year include B 16 jobs created or safeguarded, 919 people gaining qualifications, 2318 young people benefiting from social & personal development, 13,400 people using new health facilities.

C SRB2

This programme is in its 6^th year and completes in March 2003. The key achievement in this year was the completion of the Innovation Centre on St. Cross Business Park which is now 50% filled creating 56 new jobs

C Healthy Living

2 project staff have now been recruited and the initiative should take off shortly.

C Rural Development Programme

The RDP supported 40 projects across the Island. These ranged from community to economic projects and embraced the America=s Cup Jubilee Education Project, Angel Community Radio, as well as a tremendous range of village facilities and services - i.e. community hall refurbishments and outreach services, playgroups, environmental projects, a business study for the abattoir, branding and marketing research, as well as supporting the successful arch of the Green Island Awards at the Sustainable Tourism Conference in November.

Key outputs for the year include - 41 jobs created, 4308 young people benefiting from projects, 1907 local people given access to new community cultural opportunities/facilities, 94 new childcare places provided.

C SRB / RDP Expenditure, 2001 B 02 (all programmes)

Total grant expenditure : 1,782,602

Private sector leverage : 4,770,918

Public sector leverage : 3,729,122

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Total project expenditure : 10,282,642

CONCLUSION

Since its establishment in April 1999 the IWP has achieved much in addressing the economic and social challenges facing the Island. The recent difficulties are being addressed and the Partnership will be founded upon a sound financial footing. The new arrangements for the IWP, reported on elsewhere on the agenda, will provide a sharper operational focus for the agency.

RECOMMENDATIONS

THAT the Select Committee note and comment upon this report