Select Committee on Culture, Media and Sport Written Evidence


Memorandum submitted by Torbay Development Agency

  1.  For decades Torbay has been overshadowed by the more pressing demands for regeneration funding exhibited by Bristol, Plymouth and Cornwall. However, whilst these areas have been benefiting from hundreds of millions of pounds of public investment and the creation of substantial delivery infrastructures, Torbay has been declining fast. Most tellingly, within the South West Torbay now has:

    —  The lowest GVA per head, at two thirds the national average;

    —  The lowest level of average earnings, at around 2/3 the national average;

    —  Lower levels of economic activity than the regional and national averages;

    —  Relative to working age population, the highest proportion of Benefits Claimants of any local authority; and

    —  The highest percentage of people not qualified to at least NVQ Level 2 and the lowest percentage qualified to Level 4 or above.

EMPLOYMENT SPLIT (2005)


Torbay (%)
South West (%)
GB (%)

Full time employment
56.1
64.1
67.9
Part-time employment
43.9
35.9
32.1

Source: ONS Annual Population Survey


OCCUPATIONAL PROFILE (2007)


Torbay (%)
South West (%)
GB (%)

Managers/Senior officials
15.2
15.6
15.1
Professional
10.8
12.9
13.0
Associate Prof. & technical
11.5
13.6
14.3
Admin & secretarial
9.2
11.9
12.0
Skilled trades
13.6
12.2
10.9
Personal Services
10.0
8.2
8.1
Sales & Customer services
9.9
7.3
7.6
Process Plant & Machine Op's
5.8
6.5
7.2
Elementary Occupations
13.9
11.6
11.5


Source: ONS Annual Population Survey

BENEFIT CLAIMANTS


Number of claimants
% of working age population

England and Wales
4,744,205
14.9
South West
358,395
12.2
Torbay
13,995
19.2


TOP 10 SECTORS BY GVA (£M CONSTANT 2003 PRICES)


Sector
2000
2007
2012

Health & Social Care
157.4
192.3
222.9
Business Services
74.2
156.9
212.3
Retail
102.8
141.9
163.6
Construction
83.9
119.3
142.5
Tourism & Leisure
91.1
116.8
137.0
Wholesaling
72.0
91.2
114.5
Other Financial & Bus. Services
48.2
83.3
111.0
Public Admin. & Defence
82.8
78.0
77.5
Education
76.1
72.4
79.3
Electrical & Optical Equipment
125.6
60.1
88.3
Source: ABI, NOMI


TOP 10 SECTORS BY EMPLOYMENT


Sector
2000
2007
2012

Health & Social Care
9,810
10,880
11,460
Retail
7,960
8,160
8,290
Tourism & Leisure
5,610
6,480
7,090
Business Services
3,720
6,210
6,830
Construction
3,530
4,440
4,930
Education
3,480
4,260
4,080
Wholesaling
3,060
2,830
2,950
Other Financial & Bus. Services
1,390
2,120
2,470
Public Admin. & Defence
1,970
1,900
1,800
Electrical & Optical Equipment
3,470
1,360
1,690


Source: ABI, NOMIS

  2.  These issues not unique to Torbay other coastal resorts all report problems with

    —  seasonality,

    —  hidden unemployment,

    —  worklessness,

    —  transient populations,

    —  the migrant labour force,

    —  housing,

    —  coastal public costs in particular health and social care,

    —  coastal defences, in many cases coastal defences also amenities for visitors & residents.

  3.  A particular problem in a built up resort is managing the conflicting uses for space in waterfront area; which include retail, residential, public open space, marine leisure, other marine businesses requires careful management through the planning process

WHAT WE HAVE DONE SINCE 2004

  4.  Torquay Waterfront Regeneration (Phases 1-3 and investment in Living Coasts attraction) public grants as an enabler with a range of work to improve area including new slipway, bridge, harbour cill and lining. In total of £8 million of public grant has enabled over £20M of further investment. Important to note that this latter investment depends on good prevailing economic conditions and in a downturn a return for the public investment may take longer to realise.

  5.  Torbay Innovation Centres - partnership with South Devon College to promote enterprise, similar process to Higher Education business incubation. One site open and 90% full in 15 months, second site due to complete in summer. There have been 55 new jobs created in the centre and a further 87 new business start ups from the support provided.

  6.  Brixham—major regeneration programme aimed at both ensuring more value comes from the fishing industry and that the town has a broader economic base. Diverse cocktail of funding from European and Government sources.

  7.  Developed a new Economic Regeneration Strategy which underpins the above and is at the heart of the Council and Strategic Partnerships plans. It sets out our key sectors which areTourism and leisure; Retail; Advanced engineering; Fishing; Marine; Environmental/Marine Science; Health and Social Care; Other Value Added Manufacturing.

    (a)  The issues of raising value of employment, skill levels and reaching our most deprived areas run through this strategy.

    (b)  The strength weakness analysis in this has Tourism down in all boxes because it's a key sector but currently we need to move our offer and adapt to a different market.

WHAT WE ARE TRYING TO DO

  8.  Fighting our case. Trying to raise the area's profile and recognition of the needs and opportunities. Our regional partners are fully supportive and the big challenge is to have our case understood within Whitehall.

  9.  New European Competitiveness programme—Torbay is one of three priority areas in the region and over 2007-13 will be to access around £10 million of EU funding. Through the programme we are looking to support our businesses better than they have been before including tourism and other service sector businesses. Other priorities include issues of skills and employability. One constraint is the lack of other public funding to be used as match because as alluded to in paragraph 1 Torbay has been passed over by different Government programmes most recently Working Neighbourhood Fund despite being the 71st most deprived area in the country on the most recent Index of Multiple Deprivation.

  10.  Business Improvement District—the private sector is leading the development of a BID programme for Torbay with Torbay Council and Torbay Development Agency support. The intention is to hold a ballot before Easter 2009. This is important because retail is an vital sector to both residents and tourists as its one of the top activities. A five year BID in Torquay is estimated at being worth around £1 million.

  11.  New Growth Points—recognising that Torbay is a principal urban area and looking at how through this process we can bring forward housing, employment and supporting infrastructure against the spatial strategy.

  12. Mayoral Vision—using NGP sought to rationalise over 300 different project ideas that were around within the community the Vision sets out how the physical environment of Torbay can support the wider aims of developing Torbay as the place it should be.

  13. At a lower level we are to be partners in a project on coastal inequalities looking at what we can do within UK and Northern France to see if there are common issues.

  14. Welcome the introduction of the Seaside Resort Fund, we are working closely with our RDA on this but are concerned at the low level of funding allocated to this scheme across England. Other Departments such as DWP, CLG should be encouraged to see if they could contribute to a fund with broader aims based on evidenced need in coastal tourism areas.

  15. Welcome the sub national review of and note support for recommendations, in particular the explicit recognition of local areas role and devolution of funding from RDA to local areas.

  16. We are also looking to promote and develop Social Enterprise opportunities where much of the region has seen good success and the nature of Torbay's problems means that this type of scheme could have real and sustainable impacts on economic deprivation locally.

CONSTRAINTS

  17.  Profile & perception—Within Whitehall, certainly outside the region, people think palm trees and beaches but Torbay is 71st most deprived area in country with some acute and typically inner city type of problems right next to seven figure properties.

  18.  We continue, in Torbay, to just miss out on key award criteria, it harms our ability to lead regeneration work latest example if the Working Neighbourhood Fund. Only one round of Single Regeneration Budget and our access to European funding is limited because of difficulty around match because the case for coastal areas not typically well understood.

WHERE THE COMMITTEE CAN HELP

  19.  In endorsing the findings of the CLG Select Committee on Coastal Towns and in particular the call for better research to understand the problems of coastal towns and resorts in particular and the need for a more consistent approach across Whitehall.

  20.  In encouraging DEFRA to review it's investment in sea and flood defences through the Flood and Coastal Erosion Management Grants to enable it to support projects that serve a wider public function.

  21. Recommending an early review of the Seaside Resort programme run by DCMS with a view to seeking an extension over a longer period of time and/or an increase in the funding allocated to it if demand proves exceptional. Given that small and medium size businesses make up the bulk of tourism businesses it is unfair to expect the private sector to support public realm investment. Government and it's agencies should be encouraged to develop



 
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