Joint Committee on the Draft Gambling Bill Memoranda


JOINT COMMITTEE ON THE DRAFT GAMBLING BILL:

CALL FOR EVIDENCE

Submitted by Northwest Development Agency


1) Introduction - Scope of Evidence

The submission explains the role of the Northwest Development Agency and its statutory purposes, the function of the North West Regional Economic Strategy and associated Action Plan, the priority accorded to the regeneration of Blackpool in relation to the Regional Economic Strategy, and the potential impact of the reform of gambling legislation to help to secure the regeneration of Blackpool.

2) Background

The Northwest Development Agency (NWDA) was established as one of 8 Development Agencies for the English regions under the Regional Development Agencies Act 1998. The NWDA became fully operational on the 1st April 1999.

The NWDA has wide-ranging powers in economic development, employment promotion, business efficiency, skills development and sustainable development. The NWDA's purposes, as set out in Section 4 of the RDA Act, are:

a)  to further the economic development and the regeneration of its area;

b)  to promote business efficiency, investment and competitiveness in its area;

c)  to promote employment in its area;

d)  to enhance the development and application of skills relevant to employment in its area;

e)  to contribute to the achievement of sustainable development in the United Kingdom where it is relevant to its area to do so.

The role of the RDAs is a challenging one and is crucially important. It involves them in implementing strategic initiatives designed to achieve major economic regeneration in accordance with a new Government agenda. This is illustrated in the statements by the Deputy Prime Minister (at that time also the Secretary of State for Environment, Transport in the Regions), and the Chancellor of the Exchequer, both of whom have stressed the importance of the Regional Development Agencies role.

Announcing the Spending Review in July 2000, the Chancellor said: "No longer can we rely on the old methods of regenerating our regions. We need to attack the cause of poverty - too few jobs and too little economic activity - and empower local people with the skills and confidence they need to build the enterprises businesses that work. The RDAs have a vital role to play in delivering this agenda".

The Deputy Prime Minister said: "The RDAs have come out of the review as strategic leaders of economic development and regeneration in the regions".

3) The Regional Economic Strategy for the North West

The NWDA is required under Section 7 (1) of the RDA Act 1998 to prepare and review a Regional Economic Strategy (RES). The first Regional Strategy was produced in 1999 and, under the triennial review arrangements, the revised Regional Economic Strategy was launched in March 2003 after a major consultation process during 2002.

The Minister for State and Employment Relations, Industry and the Regions, welcomed the revised RES and stated that it: "clearly sets out economic development priorities for the region. This should provide a good framework for the continued work of the RDA and all regional and local partners to drive forward economic development and increase prosperity and opportunity for all in the region".

The Minister also emphasised the need to focus on implementation of the revised RES, stating: "You rightly point… to the need to focus on implementation in order to deliver change and I welcome the Agency's intention to develop action plans to implement and monitor delivery of the strategy".

The revised RES consists of four components:

i)  The vision which is 'to transform England's North West through sustainable economic development'

ii)  5 priorities of Business Development, Regeneration, Skills and Employment, Infrastructure, and Image.

iii)  10 objectives and 50 key activities supported by an action plan.

4) Detailed Strategic Context for the Regeneration of Blackpool

Many of the key activities in the RES are of relevance to Blackpool including those relating to business development, regeneration, skills & employment and image, but there are 3 key activities of specific relevance to Blackpool, as follows:

Key Activity 4.2

'Support the regeneration of the most deprived areas and most deprived wards and strengthening their wider economic base'.

In relation to Key Activity 4.2, Blackpool is cited as one of the 25 priority Local Strategic Partnerships within the North West which the NWDA will assist by supporting economic initiatives, set in the context of integrated and comprehensive community regeneration plans.

In each of these areas the Agency will concentrate on schemes that develop the economic infrastructure, remove barriers to growth (including dereliction) and link areas of opportunity and need.

Key Activity 4.3

'Develop and implement proposals for regenerating coastal resorts to support diversification and stimulate business growth including tourism'.

In relation to Key Activity 4.3, the region's coastal resorts pose particular challenges and issues, usually associated with the decline or change in tourism as their major economic activity. These resorts will need to develop new strategies for the future in line with the 'New Vision for North West Coastal Resorts' study. The Agency will look to support these emerging strategies.

Under Key Activity 4.3, there is a specific major action to develop an action plan based on the strategic master plan for Blackpool. It should be noted that there are only 3 major actions identified under Key Activity 4.3 of which this is one, thus indicating the priority being accorded to the regeneration of Blackpool.

New Vision for North West Coastal Resorts

The vision advanced for Blackpool in A New Vision for Northwest Coastal Resorts (by Locum Destination Consulting) is for a modern resort offering world-class standards in conferences, entertainment, retail and nightlife. The vision is not for incremental change, it is for wholesale change.

Resort casinos are of critical importance to achieving this vision. They are important to Blackpool not just in their own right as attractors and generators of economic activity, but in giving credibility to the prospect of decline being reversed. Resort casinos are in effect the only viable means of generating the massive private sector investment required to turn around the economic decline of Blackpool.

Locum Destination Consulting recommended that the development of large-scale resort casinos within the UK should be restricted primarily to Blackpool and other resorts in need of tourism-led regeneration in order to maximise the regeneration benefits. Resort casinos offer the opportunity to encourage staying tourism within Blackpool and thereby maximise the capture of consumer spend through complementing the gambling element with an upgraded hotel, leisure, retail and catering offer.

Blackpool has the opportunity to develop as the primary gambling resort in the UK, building upon its existing strengths in terms of a large catchment area, good transport access, and availability of large and central development sites that would enable the creation of critical mass for the resort casinos. Resort casinos should be the cornerstone of Blackpool's regeneration.

Key Activity 10.3
'Develop and implement a Regional Tourism Strategy and Action Plan aimed at improving the region's tourism offer and its take-up'.

Under Key Activity 10.3, a major action is to develop a comprehensive, costed Regional Tourism Strategy and Action.

North West Regional Tourism Strategy

The North West Tourism Strategy has identified key 'signature projects' that it believes could have an enormous impact on the success of the region's tourism industry of which Blackpool's revival is one. Such initiatives will bring about major change and must be supported accordingly.

Blackpool, like other coastal resorts, is in decline and its revival through a regenerated tourism industry must be sought. The planned liberalisation of gaming legislation and attendant resort casino development, offers the opportunity to address this situation and to stimulate massive investment from both public and private sectors.

Blackpool is uniquely placed in being able to maximise upon the benefits that would accrue from regeneration that has resort casinos at its cornerstone. The flavour and character of the town means that it is well placed to take up the mantle of Europe's No. 1 resort - an accolade it enjoyed for many years.

The importance of Blackpool as a tourist destination is recognised further by the Agency in so far as it is one of the principal partners in the new support structure for tourism in the sub-region. As one of 5 Destination Management Organisations the Lancashire/Blackpool Tourist Board will be a key player in helping the regional tourism industry reach its full potential.

5) NWDA Support for Blackpool

Given this strategic significance of Blackpool, the NWDA has already supported a broad range of activity to begin to deliver the strategy as follows:

·  NWDA in principle support given for establishment of an Urban Regeneration Company in Blackpool in support of the Regional Economic Strategy, NW Coastal Resort Strategy and Casino Resort initiative;

·  NWDA is supporting Blackpool regeneration through the Single Regeneration Budget (£18M over next 3 years) and new activity within Single Financial Framework;

·  Masterplanning/visioning and other capacity/development work supported by NWDA up to £685K;

·  Project specific NWDA support agreed so far:

-  £4.95M for major acquisitions/land assembly;

-  £2M for South Promenade public realm work;

-  £7.8M for Central Corridor Gateway public realm/community park/improved transport/commercial development project

·  Proposals coming forward through Lancashire Alliance for Skills and Productivity sub-regional action plan to match skills provision and business support to economic opportunity presented by Blackpool regeneration

·  Blackpool will be a key "brand" of new Destination Management Organisation for Lancashire

6)  The Impact of the Proposed Reforms to the Gambling Legislation on the Regeneration of Blackpool

With the strategic context for the regeneration of Blackpool firmly established, and the NWDA's commitment to delivering the strategy demonstrated, the Agency is anxious to ensure that the proposed reforms to gambling legislation fully support the delivery of the regenerative benefits for Blackpool.

On the 5th September 2003 the NWDA's Board confirmed that their position is to seek to secure the economic benefits of deregulation, particularly in support of the regeneration of Blackpool and possibly other areas in the North West, whilst ensuring that the potential adverse consequences are dealt with. To assist this, the Agency joined the Cross-Industry Group for Gaming Deregulation and is supportive of the work undertaken by that Group (commissioned by Pion Economics) to undertake an economic impact study, the results of which have now been published and submitted to the Committee. At the regional level, this work is complemented by the Pion Study prepared by Lancashire West Partnership with funding from the Development Agency which indicated that some 15,000 jobs and £500m of additional tourist spend could be achieved with benefits extending to significant parts of the North West region.

Whilst there are many aspects to the proposed legislation which are of no direct relevance to the Agency's remit, we have a number of specific points which we would like to make to the Committee, in support of those made by others.

We strongly agree with the Government's proposal, "that Regional Planning Bodies will set out planning policies for leisure development of regional significance, including casinos, which identify suitable locations within the region that would optimise their contribution to tourism and regeneration" (Para 5.16, Draft Gambling Bill Policy, November 2003).

To achieve this, however, it is crucial that a direct link is made between this activity and the strategic framework for tourism and regeneration set out in the statutory Regional Economic Strategy. The Government, through the Office of the Deputy Prime Minister, is currently consulting on the draft Planning Policy statement (PPS 11) on Regional Planning which in our view, seriously underplays the importance of the relationship between the Regional Planning Guidance (to become Regional Spatial Strategies) and the Regional Economic Strategy.

In order to ensure that the Government's objectives for securing the regenerative and tourism benefits of gaming deregulation are fully achieved, there needs to be explicit reference to the need for the allocation of locations for leisure developments, including casino's, specifically to support the priorities set out in the Regional Economic Strategy.

With regard to the North West, this will mean that Blackpool must clearly be allocated as one such area and that consideration of the allocations of other areas in the region must be undertaken in a way that does not prejudice Blackpool's position. The rationale for this is provided by the over-riding significance of these reforms to securing Blackpool's regeneration, an opportunity not afforded to anywhere near the same extent in other parts of the region, and the clear identification of the priority accorded to Blackpool for resort casino based regeneration. This position was re-affirmed by the Agency's Board by way of resolution on 10th December 2003.

It is also important to ensure that the link between the Gaming and the Planning Acts is simple and direct so that the intent of the legislation to reform gambling and secure regeneration of benefits is not undermined e.g. ensuring that casino uses cannot, in planning terms, be seen to be incidental to other leisure uses within large scale developments.

Equally, the legislation should ensure that the thresholds are not lowered such as to encourage the proliferation of small scale casinos which would do little to secure regenerative benefits but, on the basis on much evidence, would exacerbate the social problems which, of course, the regeneration is designed to alleviate.


 
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