Market Failure?: Can the traditional market survive? - Communities and Local Government Committee Contents


Examination of Witnesses (Questions 200 - 219)

TUESDAY 31 MARCH 2009

CLLR MELVYN TEARE AND CLLR ROBIN BOWEN-WILLIAMS

  Q200  Sir Paul Beresford: What is it costing your council?

  Cllr Bowen-Williams: It has not yet fallen into a negative quantity but I think it will by the end of this year. We pay the national non-domestic business rate on the site, which is why I personally have been very interested to read the Knaresborough Market decision by the Lands Tribunal, which has determined that the rent on markets should be determined at 20 per cent of the rent passing and not on square footage which might be perceived in law as being available for the market.

  Q201  Chair: Councillor Bowen-Williams, we do not want to get into that level of detail. We accept that there is £35,000 of income, as it says in the information that you have provided. How much money does the town council put in on a yearly basis?

  Cllr Bowen-Williams: I am quite surprised that the figures which were sent for 2008-09 come down to £13,000 up to the end of January.

  Q202  Chair: How much money does the town council put in?

  Cllr Bowen-Williams: In 2006-07 we took about £45,000.

  Q203  Chair: How much do you put in? What is the expenditure? We know what the income is.

  Cllr Bowen-Williams: That is what I am trying to move towards. I would say in very general terms it is £35,000 in the year in profit.

  Q204  Chair: We have not actually got the answer. Do you mean £35,000 profit?

  Cllr Bowen-Williams: No.

  Q205  Chair: What is the expenditure?

  Cllr Bowen-Williams: Call that £10,000. It is £6,000 in the following year and in 2008-09 it will, I am quite sure, end up not making a profit.

  Q206  David Wright: Are there any other non-council streams of funding that you have looked at to support the market? Do you solely support it? What other organisations potentially are putting cash into the market? Have you looked at those options?

  Cllr Bowen-Williams: No. I would agree that that is something we have not explored.

  Q207  David Wright: I think many people see the markets as a focal point for partnership working. Do you use them in that way? Do you try and build on partnership working locally through the work with the market?

  Cllr Bowen-Williams: I suppose I have just touched on that in the sense of starting this relationship with the actual marketers. Forget farmers' markets for Bletchley for all the sorts of reasons we have touched on. I think Bletchley is referred to in a modern argot as a "UB40" area. The footfall is falling anyway and the town is now poor. Equally, there are an ever increasing number of cheaper stores in the area which are attracting trade.

  Cllr Teare: Certainly the partnership working as I see it is with the 161 traders. They are small businesses in their own right. We are providing a space and an opportunity for them to be able to trade. With the full-time officers that we have working purely on markets, they are working with these people in order to ensure that the offer that we have within the city is attractive and increases footfall.

  Q208  David Wright: What are you doing to develop your markets?

  Cllr Teare: We are looking at how we can invest better in our infrastructure in terms of the stalls themselves.

  Q209  David Wright: How much are you spending on that?

  Cllr Teare: We have allocated £50,000 in terms of capital expenditure to look at how we can improve that. We maintain the infrastructure as we put it out on a weekly basis anyway. There is time allocated to a group of people who repair and mend covers and boards and various things like that. Not only do we operate with the Saturday and Wednesday street market, we operate farmers' markets as well and we attract in continental markets. The whole notion is about increasing footfall within the city centre to the benefit of the retailers who have fixed positions in the shops.

  Q210  Sir Paul Beresford: What is the balance between your capital and revenue input and what you get back out of it?

  Cllr Teare: The amount of money that we generate—and we are always looking to try and make a surplus because we run it as a business—is £650,000 a year. We are looking to make a surplus in the region of about £100,000 on the operation of markets within the city centre and within the district.

  Q211  Sir Paul Beresford: Is that surplus over your capital and revenue investment?

  Cllr Teare: That is surplus on the capital and revenue expenditure.

  Q212  Sir Paul Beresford: What do you do with the profits?

  Cllr Teare: That profit goes back into a general fund.

  Q213  David Wright: Councillor Teare, you were implying that your markets are growing, they are successful. Are they in moderate decline due to the recession? How do you cope with that if they are?

  Cllr Teare: I am not saying they are growing but they are not declining. We work very hard in order to maintain the numbers on the particular markets.

  Q214  David Wright: What work do you do to do that?

  Cllr Teare: We have a permanent group of people who come in week in, week out, but we also have a facility to offer stalls to people who come on a casual basis. If you look at our Saturday market with 161 stalls, there are people who are working during the week in full-time jobs that choose to use a Saturday market to create some additional money by coming in, opening up a market stall and marketing a particular product. Be it chilli sauces or whatever, they are marketing that product. What we have seen over the years is that people who have developed their Saturday stall have then gone part-time working and come on to a Wednesday stall. They also go and work at other markets in other market towns within the vicinity.

  Q215  David Wright: And you have had to lower your price on those one-off stalls over the last 12 months or have you kept them steady?

  Cllr Teare: For the first time, from 1 April we are not increasing the amount of money, but we are probably one of the most expensive markets certainly in the south of England. We charge £47.50 for a 10-foot stall.

  Q216  Chair: Is that your Saturday price?

  Cllr Teare: That is our Saturday price.

  Q217  Chair: What about the Wednesday market, which I believe is less successful than the Saturday one?

  Cllr Teare: The Saturday price is £47 and the Wednesday price is £37.50. Our farmers' market price for the same stall is £30. I was city centre manager for St Albans prior to being elected five years ago and created the farmers' market within St Albans. One of the things I wanted them to do was to look after their own refuse and waste, which they did and so that means we can charge less for a farmers' market because they have learned how to take their waste away with them.

  Q218  Sir Paul Beresford: Do you subsidise the farmers' market?

  Cllr Teare: No. It makes a profit.

  Q219  Sir Paul Beresford: What do you both do to promote your markets?

  Cllr Teare: We do advertising in the local press, but a lot of it is very much by word of mouth. With the farmers' market on a Sunday, it operates between nine and two, we get a footfall of around about 16,000 people and it is very much through word of mouth. People come because they enjoy the experience. We have transferred our farmers' market from St Albans to one of our villages, Wheathampstead, and it has also gone into one of our towns, Harpenden. There is a circuit that the farmers' market market traders go on in terms of the month and so when a person at Wheathampstead says, "I would like to buy these products. Where can I buy them next?" they are told in St Albans, Bedford, Leighton Buzzard or somewhere else. The customers follow the trader.


 
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