Cumbria set well to survive recession says north west's regional development boss
Last updated 12:53, Friday, 05 December 2008

Cumbria is uniquely well-equipped to survive as Britain enters a long, dark winter of recession, according to the region’s top civil servant.

Steven Broomhead, chief executive of the Northwest Regional Development Agency (NWDA), believes the county’s twin breadwinners, defence and nuclear, will help to insulate it from the worst of the economic downturn.

Speaking exclusively to The Cumberland News, Mr Broomhead revealed the agency’s three-point plan for helping Cumbria through the lean times: persuading banks to start lending, injecting cash to restart stalled infrastructure projects like the Penrith New Squares scheme and beefing up business advice services.

He also dismissed criticism of the NWDA by Conservative MP Eric Pickles, claiming it was based on “political ideology”, not evidence.

“My phrase for 2009 is realistic optimism,” said Mr Broomhead.

“Rather than join the legion of doomsters, I prefer to think that’s how we should approach it.

“There are tough challenges ahead and there will be an impact on jobs, but if you look at the Cumbrian economy, it’s insulated from some of the biggest challenges.

“Defence and the nuclear industries are the two big insulators.”

Mr Broomhead revealed he was meeting north west banks regularly in an attempt to crank up the pressure on them to thaw the frozen lines of credit to businesses.

“[The NWDA] has got to provide a supervisory surveillance and scrutiny on banks.

“Given the fact we have bailed them out, we are stakeholders in them and we need to stress the importance of lending at the right rates and with the right funds to business.

“I have heard of overdrafts being withdrawn overnight and interest rates doubling overnight.

“I think the banks have to be more interested in recharging the economy rather than sorting out their balance sheets,” he said.

In five years in the job, Mr Broomhead admits Cumbria is his biggest challenge. But it’s one he desperate to meet.

As the man who signs the cheques for the Government in the north west, he is well positioned to achieve his aim.

The NWDA, effectively Whitehall in the north west, sits on top of the network of agencies delivering regeneration across the region.

He has been responsible for a budget of £1.5bn for the three years to the end of this financial year, is paid £171,603 a year and oversees a company with assets worth £200m and a staff of 400.

It is that muscle that will be used to resuscitate critical building projects in Cumbria that have stalled as a result of the credit crunch.

The Government is expected to inject money into the first phase of the Penrith New Squares shopping and housing scheme after the development ground to a halt in October when the National Bank of Australia withdrew its funding.

Stage one involves demolishing Penrith FC’s Southend Road stadium and moving the club to Frenchfield.

Loans or so-called ‘gap funding’ would be used to get workmen back on site.

Mr Broomhead said: “We are looking to step in on a number of schemes delayed by the credit crunch; Penrith New Squares is one.

“[Our role] will be to lend or gap finance to get things moving.”

Other stalled schemes to benefit include the Carlisle Northern Development Route (CNDR), the city’s proposed western bypass. Mr Broomhead added: “It is a project we have flagged up that could require some public funding, the Government is aware.

“There is a long list of PFI (Public Finance Initiative) schemes in the area we have flagged up [that need help].”

Mr Broomhead said he was aware of the importance of the projects to the development of the Cumbrian economy and pledged to do all he can to ensure they progress.

He added: “We can never guarantee in these unpredictable, unprecedented times. but we are going to give it our best shot to get these projects moving.”

A return to big spending by the Government to fund infrastructure and stimulate the economy could benefit a host of other Cumbrian schemes, including a plan for the headquarters of the University of Cumbria, on Carlisle’s Viaduct Estate, and a rebuild of Carlisle College.

“There are a number of major capital schemes that we are going to invest totally or partly in, including the university and college developments in Carlisle and Barrow,” said Mr Broomhead.

“There are other initiatives coming like the new nuclear laboratory [at Sellafield] and the skills academy [at Lillyhall, near Workington].

“We are hoping that the Government will accelerate public expenditure on hospitals and we hope to see movement on a new hospital for west Cumbria. We hope to get moving on that in 2009.”

Mr Broomhead reiterated his support for Stobart Air’s revised plan for a freight and passenger hub, plus HQ for the Eddie Stobart haulage empire, at Carlisle Airport.

The proposal is due before planners this month.

“I have total support for the development of the airport,” he said.

“It will be a key economic driver, not just for Carlisle, but for the Borders region.

“We have been in dialogue with [Stobart boss] Andrew Tinkler about it and we are very supportive. There is no conflict on carbon issues.”

Mr Broomhead dismissed criticisms of the NWDA by Mr Pickles, the shadow local government spokesman, reported in Business Gazette last month.

The senior Tory claimed the agency was as doomed as Anne Boleyn in the reign of Henry VIII and said it had made no difference to the development of Britain.

Mr Broomhead said: “There will be a piece of research by [accountants] PriceWaterhouseCoopers published soon that looks at the added value of regional development agencies.

“I can’t reveal the figures, but I have seen it and it concludes that we have generated more wealth than we have cost to the taxpayer. Mr Pickles is entitled to his view, but I would rather go with evidence than political ideology.

“If you asked our Cumbrian partners what would have happened without our intervention in Barrow, the university, the nuclear skills academy or a whole host of projects like the food centre at Redhills [Penrith], and whether Cumbria would be a better place without the NWDA, you would get a resounding ‘no’.”

On supporting small and medium-sized enterprises (SMEs) through the recession, Mr Broomhead threw his weight behind the remodelled Business Link Northwest.

The service helped Cumbrian firms increase their Gross Value Added profit by £15m in the six months from April to September.

“It’s important to direct our support towards SMEs,” he said.

“The agency will be growing business support through Business Link, because businesses will require advice through challenging times.

“In February we will be launching a £150m venture capital fund to ease access to credit. We want to ensure Cumbrian businesses have maximum opportunities through things like getting bills paid early.

“I have led on a drive to make sure all public sector organisations, like the NHS or the Learning and Skills Council, pay their bills within 10 days.”

Mr Broomhead urged the public to be patient on Carlisle’s other great stalled building project: Carlisle Renaissance.

The plan to rebuild swathes of the city centre, including demolishing most of Rickergate, has stalled after public opposition.

The scheme is now shrouded in confusion with Renaissance chairman Bryan Gray pledging to drop the Rickergate scheme, but Carlisle City Council standing by it.

Mr Broomhead said he backed Mr Gray to deliver the project.

“The whole point of having Carlisle Renaissance is to bring together partners to work with the local authority to make things happen. I am sure Bryan will make that happen.

“I understand the sense of frustration, but its only through a focused group of people, dedicated to achievement, that we will ever see progress. The council can’t do it on it’s own.”

Despite the myriad complexities of Cumbria’s under performing economy and its seemingly doomed attempts at rebuilding its aging infrastructure, Mr Broomhead said he was genuinely hopeful that the county would emerge from the downturn as an economic force in the north.

“It’s going to be tough, but we can take on the challenges and come out of the other side stronger.”

Taken from The News & Star / [Link] / [Back to top]

Two words for 2009 – realistic optimism
Last updated 17:44, Wednesday, 03 December 2008

CUMBRIA is uniquely well-equipped to survive as Britain enters a recession, according to the region’s top civil servant NWDA chief exec Steven Broomhead.

Steven Broomhead, chief executive of the Northwest Regional Development Agency (NWDA), believes the county’s twin breadwinners, defence and nuclear, will help insulate it from the worst of the downturn.

Speaking exclusively to Business Gazette, Mr Broomhead revealed the agency’s three point plan for helping Cumbria through the lean times: persuading banks to start lending, injecting cash to restart stalled infrastructure projects like the Penrith New Squares scheme and beefing up business advice services.

He also dismissed criticism of the NWDA by Conservative MP Eric Pickles, claiming it was based on “political ideology”, not evidence.

“My phrase for 2009 is realistic optimism,” said Mr Broomhead.

“Rather than join the legion of doomsters, I prefer to think that should be our approach.

“There are tough challenges ahead and there will be an impact on jobs, but if you look at the Cumbrian economy, it’s insulated from some of the biggest challenges.

“Defence and nuclear are the two big insulators.”

Mr Broomhead revealed he was meeting north west banks regularly in an attempt to crank up the pressure on them to thaw the frozen lines of credit to businesses.

“(The NWDA) has got to provide a supervisory surveillance and scrutiny on banks.

“Given the fact we have bailed them out, we are stakeholders in them and we need to stress the importance of lending at the right rates and with the right funds to business.

“I have heard of overdrafts being withdrawn overnight and interest rates doubling overnight.

“I think the banks have to be more interested in re-charging the economy rather than sorting out their balance sheets. It’s a very big job for us. I am seeing banks in the region regularly.”

In five years in the job, Mr Broomhead admits Cumbria is his biggest challenge. But it’s one he desperate to meet.

As the man who signs the cheques for the Government in the north west, he is as well positioned as anyone to achieve his aim.

The NWDA, effectively Whitehall in the north west, sits on top of the network of agencies which deliver regeneration across the region.

He is responsible for a budget of £1.5bn for the three years to 2009, is paid £171,603 a year and oversees a company with assets worth £200m and a staff of 400.

It is that muscle that will be used to resuscitate critical building projects in Cumbria that have stalled as a result of the credit crunch.

The Government is expected to inject money into the first phase of the Penrith New Squares shopping and housing scheme.

The development ground to a halt in October after the National Bank of Australia withdrew its funding.

Stage one involves demolishing Penrith FC’s Southend Road stadium and moving the club to Frenchfield.

Loans or so-called ‘gap funding’ would be used to get workmen back on site.

Mr Broomhead said: “We are looking to step in on a number of schemes delayed by the credit crunch; Penrith New Squares is one. (Our role) will be to lend or gap finance to get things moving.”

Other stalled schemes to benefit include the Carlisle Northern Development Route (CNDR), the city’s proposed western bypass.

Mr Broomhead added: “It is a project we have flagged up that could require some public funding, the Government is aware of it.”

Mr Broomhead said he was aware of the importance of the projects to development of the Cumbrian economy and pledged to do all he can to ensure they progress.

He added: “We can never guarantee in these unpredictable, unprecedented times. but we are going to give it our best shot to get these projects moving.”

A return to big spending by the Government to fund infrastructure and stimulate the economy could benefit a host of other Cumbrian schemes, including a plan for the headquarters of the University of Cumbria, on Carlisle’s Viaduct Estate, and a rebuild of Carlisle College.

“There are a number of major capital schemes that we are going to invest totally or partly in, including the university and college developments in Carlisle and Barrow,” said Mr Broomhead.

“There are other initiatives coming like the new nuclear laboratory (at Sellafield) and the skills academy (at Lillyhall, near Workington).

“We are hoping that the Government will accelerate public expenditure on hospitals and we hope to see movement on a new hospital for west Cumbria. We hope to get moving on that in 2009.”

Mr Broomhead reiterated his support for Stobart Air’s revised plan for a freight and passenger hub, plus HQ for the Eddie Stobart haulage empire, at Carlisle Airport.

The proposal is due before planners this month.

“I have total support for the development of the airport,” he said.

“It will be a key economic driver, not just for Carlisle, but for the Borders regions as well.”

Mr Broomhead dismissed criticisms of the NWDA by Mr Pickles, the shadow local government spokesman, reported in Business Gazette last month.

The senior Tory claimed the agency was as doomed as Anne Boleyn in the reign of Henry VIII and said it had made no difference to the development of Britain.

Mr Broomhead said: “There will be a piece of research by (accountants) PriceWaterhouseCoopers (CORR) published soon that looks at the added value of regional development agencies.

“I can’t reveal the figures, but I have seen it and it concludes that we have generated more wealth than we have cost to the taxpayer.

“Mr Pickles is entitled to his view, but I would rather go with evidence than political ideology.

“If you asked our Cumbrian partners what would have happened without our intervention in Barrow, the university, the nuclear skills academy or a whole host of projects like the food centre at Redhills (Penrith), and whether Cumbria would be a better place without the NWDA, you would get a resounding ‘no’.”

On supporting small and medium-sized enterprises through the recession, Mr Broomhead threw his weight behind the remodelled Business Link Northwest.

The service helped Cumbrian firms increase their Gross Value Added profit by £15m in the six months from April to September.

“It’s important in the short and longer terms to direct our support towards SMEs,” he said.

“The agency will be growing business support through Business Link, because businesses will require advice through challenging times.

“In February we will be launching a £150m venture capital fund to ease access to credit.

“We want to ensure Cumbrian businesses have maximum opportunities through things like getting bills paid early.

“I have led on a drive to make sure all public sector organisations, like the NHS or the Learning and Skills Council, pay their bills within 10 days.”

Mr Broomhead urged the public to be patient on Carlisle’s other great stalled building project: Carlisle Renaissance.

The plan to rebuild swathes of the city centre, including demolishing most of Rickergate, has stalled after public opposition.

The scheme is now shrouded in confusion with Renaissance chairman Bryan Gray pledging to drop the Rickergate scheme, but Carlisle City Council standing by it.

Mr Broomhead said he backed Mr Gray to deliver the project.

“The whole point of having Carlisle Renaissance is to bring together partners to work with the local authority to make things happen. I am sure Bryan will make that happen.

“I understand the sense of frustration, but its only through a focused group of people, dedicated to achievement, that we will ever see progress. The council can’t do it on it’s own.”

Despite the myriad complexities of Cumbria’s under performing economy and its seemingly doomed attempts at rebuilding its aging infrastructure, Mr Broomhead said he was genuinely hopeful that the county would emerge from the downturn as an economic force in the north.

“It’s going to be tough, especially for the construction sector, but I return to that two word phrase: realistic optimism. We can take on the challenges and win and come out of the other side stronger.”

Taken from The News & Star / [Link] / [Back to top]