NWDA CUTS HIT MANCHESTER REGENERATION PLANS

July 30th, 2010 by Frank McKenna

The impact of the £52 million cuts the Northwest Development Agency have been ordered to come up with by the Coalition Government has been revealed with Manchester, inevitably, losing a significant chunk of cash for important regeneration schemes.

New East Manchester will have to deal with an £11.4 million black hole in its budget and Central Salford URC will lose £8 Million.

Though this can only be seen as a blow in the short term, the fact is that Manchester is better placed than most to identify alternative sources of funding to replace the NWDA shortfall, and ensure that these projects do go ahead sooner rather than later.

Manchester has proved adept at marketing and promotion, and attracting inward investment from the private sector. It will have to step up to the plate once again to deliver redevelopment schemes that will transform parts of Manchester that have not thus far been reached.

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NWDA CUTS START TO BITE

July 30th, 2010 by Frank McKenna

The impact of the £52 million cuts the Northwest Development Agency have been instructed to implement by the Coalition Government have been revealed – and Lancashire is a big loser.

Preston, in particular, has been hit hard, losing funding for the revamp of Winckley Square, the refurbishment of the Flag Market and financial support for the 2012 Guild.

It is a bitter blow to the city and, in the case of Winckley Square and the Flag Market, another example of local dithering and disputes costing us, quite literally, millions of pounds.

The challenge now is for the city to adopt a more pro active approach to attracting alternative sources of funding and winning private sector investment – which is why the council must do all it can to find the resources to support another victim of the Development Agency’s cuts programme, Preston Vision. Eliot Ward and his team are making good progress in communicating a business-friendly message to potential investors. It would be short term gain for long term pain if we were to abandon Vision at this critical stage of Preston’s development.

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FRANK MCKENNA’S LIVERPOOL BUSINESS AWARDS SPEECH 2010

July 30th, 2010 by Frank McKenna

Good evening ladies & gentlemen and welcome to the spectacular setting of the Sefton Park Palm House for the 6th annual Liverpool business Oscars, brought to you by DLIB in association with the NWDA and Business Lnk.

It is great that we have a full house once again for tonight’s event, which is also supported by CBG insurance group, Grant Thornton, Paver Smith, NSG, Ollie & Darsh, NONAME kitchens, Ph.Creative and Panorama kitchens.
The strong line up of nominees that we have for this evening’s awards demonstrates that despite the turbulence experienced in the economy during the past eighteen months, we still have some great businesses across our city who are doing great things.

When this awards dinner comes around, it’s always a good time for me to reflect on the progress downtown Liverpool as an organisation has made in the preceding twelve months.

In the past year we have continued to organise some of the biggest and best events around, including the first Liverpool leaders debate between Warren Bradley and Joe Anderson, our third annual business week, which included contributions from leading decision makers, entrepreneurs and academics, and of course, our now legendary sexy networking evenings.

But what has also happened during the past year, very markedly, is that the business club with attitude has become the business club with influence.

We won our campaign to stop the council introducing evening car parking charges in the city centre.

With the help of two of our members, Iliad and aurora communications, we alerted the council and partner agencies to the opportunities for the city around the re-location of civil service jobs from London.

And, since the new labour administration took control of the town hall in may, a range of policies that Downtown Liverpool have consistently been promoting for several years have been implemented.

The city has a full time political leader; a business representative will be appointed to sit on the cabinet in the autumn; and a review of the various agencies that govern the city has been started. I‘m also confident that we will see a more efficient procurement process introduced, and much smarter planning arrangements in place before too long.

Of course the political colour of our government in Westminster has changed too. And I think is vitally important that, whatever difficult decisions are made in the next five years around public expenditure, and like all other places Liverpool will feel the consequences, we cannot go back to a situation that sees our city isolated from central government.

Early indications are encouraging, and it was good to see the prime minister in town on Monday to launch his big society initiative.

We have to build on this, and Joe Anderson and his team should aim to be David Cameron’s favourite labour council!

The new govt agenda around economic development and local economic partnership’s is also a major challenge for greater Liverpool.

We in the private sector need to work together to get our local authority partners in the public sector to work together if we are not to fall behind competitor city regions.

Collaboration and co-operation across the business and political spectrum is the way forward, and downtown Liverpool is determined to play a constructive role in making that happen.

We will be arguing not for a reconfiguration and accommodation of existing agencies and structures, but a new way of working.

We should free ourselves from the constraints of artificial geographical boundaries. We are twinned with New York and Shanghai for god’s sake, so why not forge stronger links with the Isle of Man, Cheshire and North Wales to help drive forward our regional economy?

There are many good people and personalities involved in the many agencies that currently govern our city, but the structures are too bureaucratic, too messy, too public sector driven and totally irrelevant to the new govts agenda.

A new approach has to be adopted that has a place for those talented individuals that are currently running and managing those agencies, but the strategy and delivery mechanisms must be more flexible, more focussed and private sector led.

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LEADERSHIP

July 16th, 2010 by Frank McKenna

Is leadership important to a city? Apparently very much so, if recent consultations carried out by both Preston Vision and Downtown Preston in Business are anything to go by.

There were strong indications from people across the Lancashire city’s community that the key to winning investment, creating opportunity and regenerating a city came from strong leadership.

Evidence elsewhere in the North West would back this assumption. Liverpool enjoyed its springboard to transformation during the heady days of the Mike Storey/David Henshaw axis, when the then council leader and Chief Executive were getting on. The Liverpool One project was born, the European capital of culture bid successfully negotiated, and the city council suitably modernised. Unfortunately, the ‘dynamic duo’ fell out; and things haven’t been quite the same since. New Labour leader Joe Anderson seems determined to re-introduce ambition and purpose to the city, and his appointment of a new Chief Executive, expected in the Autumn, will be key.

Manchester, of course, can boast not only the best civic leadership in the region, but arguably the country. Consistency in personalities and policies have made Manchester the UK’s second city, with strong political leadership from Sir Richard Leese supported by the impressive management and strategic skills of his Chief Executive Sir Howard Bernstein. Less celebrated, but equally effective, is the partnership of council leader John Merry and head honcho Barbara Spicer at Salford City Council, home to ‘Media City’.

Poor old Preston, meanwhile, demonstrated once again this week the damage weak leadership can do to a city. Just as the business sector were warming to the ‘new’ Preston Vision and genuinely getting behind a partnership arrangement with Eliot Ward (Vision Chief Executive) and his team, the city council have decided to ‘postpone’ the appointment of a Chairman to the Vision board. The Coalition government’s scrapping of the Northwest Development Agency has been blamed for this decision, but given the small amount of cash that the city and county council would have to find to secure the future of Vision, it is an excuse few are buying.

This short sighted and knee jerk reaction sends exactly the wrong signal to Preston’s private sector at exactly the wrong time. Leadership, indeed, is very important for a city. Preston is demonstrating very little of it at the moment.

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WHY DLIB SUPPORTS THE BID

July 16th, 2010 by Frank McKenna

The first seven weeks of the new coalition government has confirmed what many of us already suspected – if public sector cash is king, the king has most certainly left the building.

As countless head teachers, members of the armed forces and even City bankers will tell you, the present administration is trying to pick up every penny that isn’t nailed down and Mr Osborne is apparently revelling in a fine impression of Ebenezer Scrooge.

Whether the government’s response to a crippling level of debt inherited by its predecessors is a measured necessity or reactionary folly is an argument for another day, but what we do know for certain is that austerity is now an unwelcome reality and one that we as a business community must deal with robustly.

Liverpool has enjoyed impressive levels of physical, economic and social change over the past decade and, while the private sector must be praised for its collaboration and vision, we also cannot hide from the fact that a fair portion of that success has been courtesy of significant funding from central and European government and continued growth in public sector investment.

If we are to realise further growth and capitalise on the city’s burgeoning international reputation, we must ensure that any vacuum left by government downsizing is filled by substantial, enduring investment from private enterprise.

The commercial district has been a key foundation of the city’s growth curve and is certainly not alone in the need to protect its long term future. The clearest solution to lasting prosperity in the commercial district is an application for Business Improvement District (BID) status, something of which we at Downtown are fully in support.

BID status brings with it not only substantial funding for maintenance and improvements – somewhere in excess of £600,000 per year – but also a collective spirit, building upon the foundations of much of Liverpool CDP’s work and invariably proving a vital component for future expansion.

More than 800 landlords and tenants will be balloted on the proposal, which will ask them to accept a levy equivalent to one per cent of business rates. Their time to stand up and be counted will come at a final ballot in spring 2011, before which time my fellow BID ambassadors and I will spend as much time as necessary persuading members of the benefits of BID status. 

One per cent may sound a substantial ask in difficult economic times, but it must be considered in the context of the wider picture. If businesses wish to operate in a vibrant, attractive commercial location, then the funding to make that environment a reality must be sourced from somewhere. We have already seen the government freeze council tax levies, so immediately we see a dangerous trend developing toward under-investment and possible stagnation.

For many members who have actively participated in the work of the partnership up to this point, the levy would actually represent a reduction on their voluntary spend, while for the remainder of businesses in the district, the application for BID status represents a real opportunity to become involved and effect positive change to the benefit of themselves and their neighbouring businesses.

As austerity measures take their grip across Europe, we must pull together tighter than ever before to ensure that Liverpool and the commercial district remain ahead of the game.

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