APPENDIX 6
Memorandum submitted by Cumbria Inward
Investment Agency (E6)
CONTEXT
The Carlisle operation is one of a number of
Regional Service Centres throughout England which serve the farming
and rural community. Cumbria, with its reliance and its pre-eminence
in these sectors, has a strong vested interest in the retention
and expansion of MAFF services in Carlisle. As such, Cumbria Inward
Investment Agency, on behalf of its partners, Cumbria County Council
and Carlisle City Council, wishes to endorse the business case
put forward by the executive staff at MAFF Carlisle.
Regional Service Centres carry out a number
of statutory or core services for the farming community. We believe
that there is a compelling case for Carlisle to be retained as
an operational centre within the MAFF CAP Administration Review
for a number of reasons. The overall MAFF objective in respect
of current CAP schemes is "to administer payments under the
Common Agricultural Policy fairly and in full accordance with
EU requirements".
In a House of Commons written answer dated 10
November 1999, from Mark Todd MP, the member for South Derbyshire,
Ms Joyce Quin, the Minister of State, outlined the direct cost
per claim (in £) in respect of administration costs for 1998-99
at each of the Regional Service Centres. This printed table is
reproduced below:
Regional Service
Centre
| (26)
AAPS | (27)
BSPS
| (28)
SCPS | (29)
SAPS
| (30)
HLCA | (31)
CSS
| (32)
ESA |
| Bristol | 83 | 29
| 92 | 60 | 31 |
599 | 154 |
| Cambridge | 109 | 36
| 101 | 91 | —
| 718 | 121 |
| Carlisle | 27 |
33 | 76 | 47
| 26 | 512 | 110
|
| Crewe | 31 | 41
| 112 | 82 | 51
| 296 | 134 |
| Exeter | 31 | 34
| 82 | 66 | 40 |
568 | 109 |
| Northallerton | 80 | 37
| 86 | 64 | 30 |
408 | 127 |
| Nottingham | 98 | 41
| 73 | 65 | 34 |
501 | 361 |
| Reading | 60 | 39
| 89 | 59 | —
| 805 | 143 |
| Worcester | 59 | 32
| 92 | 61 | 28 |
610 | 148 |
| | |
| | | |
|
[Source: Hansard 10 November 1999]
| Key | | |
| (26) | AAPS | Arable Area Payments Scheme
|
| (27) | BSPS | Beef Special Premium Scheme
|
| (28) | SCPS | Suckler Cow Premium Scheme
|
| (29) | SAPS | Sheep Annual Premium Scheme
|
| (30) | HLCA | Hill Livestock Compensatory Allowances
|
| (31) | CSS | Countryside Stewardship Scheme
|
| (32) | ESA | Environmentally Sensitive Areas
|
| | |
This in itself demonstrates how well Carlisle, in the crucial
area of cost benefit, has performed against the other Centres.
Whilst acknowledging the value and complexity of the business
carried out by the Centres, the comparison attests to the efficiency
of MAFF Carlisle's operations.
MODERNISING GOVERNMENT
AGENDA
One of the key objectives in the setting up of a combined
CAP administration organisation will be the ability to deliver
many aspects of the Modernising Government Agenda. These will
include an enhanced service to claimants, the ability to deliver
the majority of information electronically and the joining up
of significant elements that serve the agricultural community.
By addressing these issues, three of the key areas of the
Modernising Government Agenda will be satisfied:
— Making services responsive to the public.
— Quality public services.
— Information Age Government.
The MAFF office in Carlisle has amply demonstrated how it
can perform against the first two criteria and is ready for the
challenges being brought about by the e-revolution. We have looked,
therefore, at the case for the retention and expansion of Carlisle
as a Regional Services Centre with the capability of becoming
a major Customer Services Centre within the MAFF network. The
new arrangements will invariably bring about new working practices.
In addition, because of enlargement of the offices delivering
these services post consolidation, capacity will have to be re-determined.
Key to the new criteria demanded will be the provision of suitable
accommodation as well as human resource requirements.
In March 1999, Cumbria Inward Investment Agency, using its
own retained Consultants, carried out a space planning exercise
at Edenbridge House, the MAFF Regional Centre at Carlisle. Edenbridge
House is located at the heart of the city next to all amenities
and easily accessible by rail and bus services. There are adequate
car parking arrangements both on site and at the many public car
parks situated within a five minute walk. The fabric of the building
is in good order with continuous investment over recent years.
The architects were able to factor in new space within the
building currently being occupied by the Benefits Agency and the
Employment Service, both of whom are due to vacate in the near
future. This report, conveyed to MAFF Carlisle for the internal
submission, demonstrated that the number of work stations, using
current desk dimensions, could be increased to accommodate a substantial
increase in the workforce without notable building renovation
work. That being achieved, we have shown below other compelling
reasons for the retention of Carlisle as a hub for MAFF activity.
THE BUSINESS CASE FOR LOCATING IN CARLISLE, CUMBRIA
Research and market testing has been undertaken to establish
that Carlisle offers a compelling business case as a Customer
Service Centre location, one which will be able to embrace the
new working practices outlined within the review of current operations.
The opportunities for sustainable Call Centre investment
in Cumbria are significant but not unlimited and Cumbria is seeking
to support a balanced portfolio of call centres that will avoid
the over development that is occurring in many other areas. There
is an excellent example of this strategy being carried out in
the west of Cumbria following the siting and operation of the
British Cattle Movement Service at Workington. The success of
this venture and the adoption of modern working practices is well
documented.
We believe that the strength of the case for the retention
of Carlisle is underpinned by the success of this venture at Workington.
The quality of staff engaged at BCMS, and the ability to recruit
at various skill levels since its creation in 1997, is testament
to the ability of the Cumbrian workforce.
DEMOGRAPHICS
Carlisle City—Capital of Cumbria
Carlisle is Cumbria's administrative centre and the retail
and business centre for Northern England and the Scottish Borders.
As well as the MAFF Regional Service Centre located in the heart
of the city, Carlisle is home to many household name companies
including Border TV, Carnaud Metal Box, United Biscuits, Nestle«,
Pirelli and Eddie Stobart.
A smart and growing city, it hosts the University of Northumbria,
Carlisle College and Cumbria College of Art and Design. In total
it has over 10,000 registered students.
Significant pools of available labour
Carlisle has been identified as suitable for Customer Service
centres, with its urban cenre having a catchment population (within
30 minutes) of just under 150,000.
Overall Population Level 1996 mid year estimates
| District | Total Population
|
| Carlisle | 103,000 |
| Carlisle plus surrounding districts (within 45 mins drive)
| 237,400 |
| CUMBRIA | 490,300 |
| |
Source: Cumbria County Council—Information &
Intelligence/ONS Information & Intelligence 1997
Minimal Call Centre Penetration
Although it has a population close to half a million people,
fewer than 1,000 are employed currently in Call Centre activity
in the County. There is comfortably scope for this to rise to
5,000 in the short term (just 2 per cent of the working population)
with medium term potential for a further 5,000 plus. There are
only 10 call centres in Cumbria that employ more than 20 staff.
Carlisle has only one Call Centre employing over 20 staff—the
BT Directory Enquiries Centre with 135.
Stable Population
Carlisle exhibits high levels of home ownership, and low
levels of car ownership and, as a result, the population tends
to seek work within its community and stay with their employer.
This goes some way to explaining the very low staff turnover rates
enjoyed by employers in all sectors of the economy.
| Home Ownership (%) | Carlisle/N Cumbria
|
| Owners | 67 |
| LA rented | 22 |
| HA rented | 2 |
| Private rented | 6 |
| Others | 3 |
| |
Source: Cumbria County Council—Information &
Intelligence
| Car Ownership by Household (%) |
Carlisle/N Cumbria |
| 2 or more cars | 20 |
| 1 car | 47 |
| No car | 33 |
| |
Source: Cumbria County Council—Information &
Intelligence
"The population of Cumbria is geographically stable—people
who live here tend to stay here—which means that we have
tremendous loyalty from them"—Fiona Jakayalata, Inland
Revenue
Cumbria has areas of high unemployment
Despite its reputation as a place of beauty and high quality
of life, Cumbria has a significant unemployed population.
| Carlisle | 4.0% |
| Cumbria | 4.2% |
| UK | 4.1% |
| |
Source: Office for National Statistics (March 2000)
Compounding the unemployment rate in Carlisle is the amount
of hidden unemployment—those effectively unemployed but
not claiming unemployment benefit. The rates for this were extensively
studied by Sheffield Hallam University in 1997 and are set out
below.
"Real" Unemployment Figures for Cumbria (Jan 1997)
| Male | Female
| Total |
| Carlisle | 16.2% | 11.8%
| 14.3% |
| | |
|
Source: County Intelligence Unit/Sheffield Hallam University
Cumbria has a large under-employed population
The Lake District National Park attracts 15 million visitors
per year. This generates a great deal of seasonal employment,
peaking in the summer.
Much of this work is part time, in restaurants, shops, hotels,
B&Bs etc and often at comparatively low rates of pay. The
seasonality and part time nature of this work, whilst providing
some income—often secondary income—makes it less desirable
than permanent full time work.
As a result, when vacancies are posted in employment that
is considered to be "a proper job", the response to
them is often overwhelming. Many of those responding to vacancies
are currently employed and the displacement caused gives opportunities
for the unemployed further down the job chain.
For example: In Workington, when recruiting 150 staff
for administration grade and call centre jobs at £7,000-£9,500
pa the BCMS received 2,800 applications purely from local advertising
methods.
"We recruited 235 people within the region, of all
ages and . . . from a variety of professional and manual work
but all have quickly learned the skills needed by the BCMS."
—Tony McGuiness—BCMS Workington
Excellent Workforce Quality and Adaptability
Staff turnover rates and absenteeism levels are amongst the
lowest in the country:
Staff turnover rates and absenteeism levels
|
| Average Turnover Across Cumbria | 5%
|
| Average Absenteeism Across Cumbria | 2%
|
| |
With a history of large, capital intensive business, operating
on a 24 hours/7 days/365 days per year basis to maximise the return
on investment, the communities of Cumbria adapt readily to shift
working requirements of business, which is becoming more prevalent
as e-commerce working practices become the norm.
The BT Call Centre in Barrow regularly appears at the top
of the UK performance tables—largely due to the commitment
and flexibility of its mature and stable workforce.
"Barrow is one of the top call centres in the country
and we have managed to maintain that position over a long period
of time. The Centre has an excellent reputation within BT"—Frank
Dunn, BT Team Leader, Barrow
The Cumbria Work Ethic:
"Cumbria has many benefits for business but top of
the list must be the attitude and commitment of its workforce"—John
Nixon—Pirelli, Carlisle
The people of Cumbria are, by nature, steady, loyal, hardworking
and dependable. Communities are very strong in Cumbria and people
tend to known and rely upon each other. These are positive indicators
within a predominantly rural population, which has also learnt
to adapt to the requirements of urban demands.
Low Staff Turnover and Absenteeism
Cumbria has staff turnover rates below 5 per cent and low
absenteeism which further enhance the competitiveness of the unit
labour costs through:
— Minimising re-recruitment and training costs.
— Minimising business disruption.
— Maximising staff continuity leading to improved
performance.
COST EFFECTIVENESS—A KEY BUSINESS INDICATOR UNDER
THE MODERNISING GOVERNMENT AGENDA
Cumbria has amongst the lowest Average Starting Salaries
for Customer Service Advisors in the UK
Average Starting Salaries for Customer Service Advisors
by Region (Source: Income Date Services/CIIA 1999)
Low Cost of Living
Despite its attractiveness as a City and its proximity to
the National Park, living costs, as demonstrated by the house
price index below, are well below the national average, making
Carlisle a highly cost effective location.
| Average House Prices £
|
| Location | Detached
| Semi-Detached | Terraced
|
| Carlisle | 95,525 | 51,783
| 43,157 |
| National | 144,572 | 85,994
| 73,400 |
| | |
|
Source: Upmystreet.com 2000
This relatively low cost of living indicates that the lifestyle
benefits derived from living in North Cumbria help substantially
when trying to recruit and retain staff.
Quality of Life
The Lake District National Park provides an unrivalled living
and recreational environment. This is within 30 minutes drive
of all Cumbria locations identified as suitable for Call Centre
investment.
Attracting specialist, operations critical, senior staff
to Cumbria is not a problem as there is a strong demand amongst
technical and senior staff for the type of family lifestyle that
Cumbria's National Park has to offer.
CONCLUSION
The Carlisle Regional Services Centre has already put forward
a strong case internally for its retention and expansion. It has
demonstrated its cost effectiveness with regard to the administration
of payments within the current CAP scheme, in accordance with
EU requirements.
The expertise in delivering all of MAFF's programmes to the
farming and rural communities of the North of England is held
in high regard by those customers within the rural areas, as well
as other bodies and institutions in Cumbria. Within the Regional
Economic Strategy for North West England, strong emphasis is put
on integrating the rural dimension into the region's mainstream
activities. In so doing it acknowledges the benefits to the region
of the rural resource.
In commending this memorandum to you, it cannot be overstated
that a continued presence of MAFF in Carlisle is vital to Cumbria
and the region as a key Government organisation spearheading the
sustaining of agriculture in this predominantly rural community.
[Cumbria Inward Investment Agency is a public/private sector
partnership set up in 1997. Amongst its funding partners are Cumbria
County Council and Carlisle City Council.]
4 May 2000
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