Memorandum from the Hull and Humber Chamber of Commerce (YH 24)

 

 

1. Introduction

1.1. Hull & Humber Chamber of Commerce is the collective voice of business in the Humber sub-region, representing over 1,500 member businesses and affiliates of all sizes and across all sectors.

1.2. Our regional body, Yorkshire & Humber Chambers of Commerce (YHCC), will be making a fuller submission to your inquiry and we endorse their position, however we also thought it would be helpful to make some additional points specifically from the Humber perspective. This document should be read in addition to the YHCC submission rather than in isolation.

2. A Green low-carbon economy

2.

2.1. The Humber has massive potential for developing a cluster of green and low carbon technologies for energy generation and manufacturing in this area and, because of its geography and local expertise, is ideally situated to be a future world leader. Yorkshire Forward's support for renewable energy and work on carbon capture so far has been well received, but we would like to see this go much further and faster to ensure that we as a sub region, a region and a country do not miss out on the opportunities to assist in tackling the growing crisis of climate change.

2.2. The scale of the climate change challenge requires a strong regional and national commitment to developing new technologies and manufacturing capability, and as such we believe Yorkshire Forward is perhaps best suited to seizing this initiative than local authorities would be on their own. However, Yorkshire Forward will not be able to deliver a low-carbon agenda alone and partnership work with local business and local government will be key to driving this agenda forward.

3. Integrated regional strategy

3.

3.1. Whilst in the Humber we wish to be at the leading edge of tackling climate change and have direct experience of its damaging consequences due to flooding and coastal erosion. It remains the case that key elements of the transport infrastructure require completion. In 2006, total government spending on transport in Yorkshire & Humber was £215 per head - the lowest of any English region. Businesses in the Humber have been waiting for major transport infrastructure improvements for too long, and the economic performance of both the sub region and region has suffered as a result. Schemes such as the A63 Castle Street in Hull and A160 to Immingham are now urgently needed and accepted as regional priorities, but they are taking far too long to arrive.

3.2. The reasons for Yorkshire & Humber losing out in national transport spending rounds are unclear, but with its new responsibilities, businesses expect Yorkshire Forward to take a strong leadership role on behalf of the whole region on this issue. If necessary, and in the face of national public spending cuts, this may mean supplementing Government funding priorities with its own resources for critical infrastructure schemes such as the two schemes mentioned in the Humber sub-region. Fully involving business at every stage of these discussions on infrastructure is also crucial to ensure that key spending is prioritised intelligently.

3.3. To its credit, Yorkshire Forward did just that with its recent contribution to the upgrade of the Hull Docks Branch railway line, which has increased important capacity. However, many businesses in the Humber still feel that not enough prominence is given to the areas needs within Yorkshire Forward's thinking. We would like to see the importance of the region's ports and access to these facilities given greater recognition by Yorkshire Forward under its expanded remit. Given that these facilities are of regional and national economic importance as well, Yorkshire Forward must fulfil its leadership role in ensuring that their potential can be achieved.

4. Effects of the current economic and financial situation on business

4.

4.1. Hull & Humber Chamber of Commerce monitors local business conditions through its Quarterly Economic Survey and we would be happy to provide current and historical data if the Committee would find this useful.

4.2. Most businesses in the Humber have been affected by the downturn in much the same way as businesses elsewhere, particularly through the reduced availability of bank lending and trade credit. The underlying causes of these problems are mostly to be tackled at a national and international level rather than specifically by Yorkshire Forward. However, a number of their financial initiatives have proved positive in terms of PIF funding, CDFI support and supporting Business Link financial health checks. That said, one sector in the Humber which feels particularly let down by a lack of support given to it since the downturn began is the caravan industry which has faced severe difficulties following the withdrawal of bank lending - in spite of some companies enjoying strong order books. It is felt to be as important to the local Humber economy as car manufacturing is to the West Midlands, but whereas car manufacturers have received support from national Government similar support from BERR and Yorkshire Forward has yet to be forthcoming for caravan manufacturers - despite the lobbying efforts of local MPs, ourselves and others. Although Yorkshire Forward was part of a joint task force which provided support to employees made redundant by caravan manufacturers, it has not stepped in yet to provide more fundamental restructuring assistance to the sector.

5. Involvement of regional stakeholders

5.

5.1. Regional Development Agencies were originally set up to be 'business-led' organisations. We believe this position has been diluted over time at the non executive level in particular. Business engagement must therefore be stronger to compensate and be consistent across Yorkshire Forward's departments and the whole region. In that regard we applaud the recent efforts of the Chief Executive and his Business Director. This general point is not a criticism of its staff in the sub-region, with whom we enjoy good relationships, but rather a continuing questioning of the level of resource discretion that are put into the sub-regions and the decision making authority allowed. Timetabled engagement with the private sector as well as public sector partners must also become more consistent to ensure a stronger sense of fairness and balance in policy deliberations.

5.2. Many businesses, particularly on the South Bank of the Humber (outside the traditional county of Yorkshire) also feel strongly that the area does not receive enough attention from Yorkshire Forward. Spending on tourism has been cited as an example of this, as North and North East Lincolnshire are covered by a separate tourism agency to the rest of Yorkshire & Humber. The issue of tourism promotion may be one that the committee would like investigated for the future.

6. Concluding remarks

6.

6.1. We are positive about the role and performance of Yorkshire Forward and its senior management team and view ourselves as occasionally critical friends and a supportive partner rather than an opponent. We believe key issues will require strong regional leadership in the future such as responding to climate change and Yorkshire Forward is the best placed organisation available that can realistically tackle the industrial aspects of this agenda.

On other issues such as strategy, facilitation or delivery of business support we agree with the rest of Yorkshire and Humber Chambers observations. Similarly we share YHCC's general feeling that brokering and customising policy solutions to fit local circumstances with local stakeholders is more important than simply implementing national solutions in an absent minded way. This will in our view maximise impact, enhance creditability at a critical time and ensure careful use of increasingly scarce resources for the future.

6.2. We would welcome the opportunity to discuss any of these issues in more detail with the Committee and would be happy to supply more information if needed.