Executive Director’s Report

                                    January 2008

The Government indicated that an RAF base could lead to new jobs and business opportunities. Network Rail was challenged to improve rail services between Hereford to Birmingham. Local authorities were urged to take action against crime. A senior London 2012 official discussed how business opportunities for Midlands firms could come from the Olympic Games. New action has been taken to attract inward investment to the West Midlands.

RAF Base and New Business Opportunities

It was announced on 31 January that the Ministry of Defence was to transfer two regiments to RAF Cosford in Shropshire – with a view for a new super garrison to be based at the base.

This announcement followed the campaign of the Shropshire Chamber of Commerce and the West Midlands Business Council throughout 2007 for a new training and technology centre to be based at RAF Cosford – which would benefit businesses in Shropshire and the Black Country. The Government decided that the centre should be located at a defence base in south Wales. This was greeted with disappointment and anger in the Midlands as it seemed from any objective view that RAF Cosford had put in the best bid to host the facilities.

However, in answer to a letter from the West Midlands Business Council complaining at the decision, the Ministry of Defence indicated that other purposes for the base could be found that could provide contracting opportunities for firms across the West Midlands region.

Now, with the Government indicating that a super garrison will be located at RAF Cosford it seems this campaign has, at last, been a success for our business community.

Transport

New signals would improve rail services between Hereford to Birmingham, the business community has declared.

West Midlands Business Council Executive Director, James Watkins, said:

“We welcome news from Network Rail – the body responsible for maintaining our rail network – that three new signals on the line between Hereford to Birmingham could be in place sometime this year”.

“This matters because rail services on this route are not as up to the mark as they should be because of the need to upgrade signals around Droitwich”.

“This potentially good news is not a replacement for the need to upgrade these signals – that must happen as soon as possible – but the intention to put in interim signals could make services on this line far more reliable”. 

“So – today – the Herefordshire and Worcestershire Chamber of Commerce and the West Midlands Business Council has sent a joint letter to Network Rail welcoming their consideration of placing interim signals – but to take that final step and really do this work during 2008”.

Herefordshire and Worcestershire Chamber of Commerce Policy Executive, Gary Woodman, added:

“The Chamber with the West Midlands Business Council has been campaigning on this issue for some considerable time and we welcome the tentative move that has been made to improve the connectivity of the service between Herefordshire and Worcestershire with Birmingham”.

“However, the need for real action to take place is still needed and the sooner this happens the better the rail network will be for the people of the two counties”.

In a separate development, Communities and Local Government Secretary, Hazel Blears MP, rejected the representations of the business community, environmental pressure groups and the West Midlands Regional Assembly to beef up the transport recommendations for the regeneration of the Black Country. This was a disappointing set back but we will continue to work with the Black Country Chamber to get the transport network improved in this vital area.

In the meantime, the West Midlands Business Council appeared on BBC TV’s The Politics Show calling for planning permission to be granted to enable the extension of the runway at Birmingham International Airport to take place – allowing direct routes to the Asia Pacific and the west coast of the United States.

Energy

Midlands’ planners were urged to guarantee energy supplies to all firms.

The West Midlands Business Council was responding to a consultation initiated by the West Midlands Regional Assembly as to what the regional planning rules should be when it comes to energy needs.

The Chair of the West Midlands Business Council’s Energy Forum, Birmingham Chamber’s Lucy Avery, said:

“Businesses are tired of the fact that during severe cold spells the energy supplies to firms are the first to be threatened with cuts in order that energy supplies to homes are secured”.

“Business does not believe that such a dilemma should exist anymore as constant energy supply to firms is vital if we want to ensure the Midlands can maintain it’s competitive edge in the employment arena”.

“That is why we have put forward proposals to the West Midlands Regional Assembly – responsible for setting the regional planning regime which is technically known as the Regional Spatial Strategy – to do just that”.

“Our proposals include:

• Investigating the potential for geological features in the Midlands that could store contingency energy supplies;
• Ensure planning rules do not hold back the development of energy crops also known as biomass;
• Planning rules should not hold up the re-opening of coal fields in Warwickshire and Staffordshire;
• Investigating the potential for carbon sequestration – tackling global warming by injecting carbon dioxide into deep unminable coal seams which can produce a new energy source of methane;
• Understanding fully the positive potential for input by the West Midlands regional business community to the future new growth of the nuclear industry.

“We must explore these issues if we are to ensure that we tackle global warming and ensure secure energy supplies exist for a healthy economy”.

“Avoiding tough choices will make it impossible to achieve the aim of securing the energy needs that Midlands’ jobs depend on”.

Crime

Local authorities across the West Midlands region were reminded to step up their work to tackle business crime.

With the Government Office for the West Midlands estimating that business crime costs the region £14,000 per hour, the West Midlands Business Council reminded local councils of its new responsibilities to respond to local needs by addressing all forms of crime prevention – including with business crime.

The Home Office has issued tougher guidance to councils to take strong action against  crime – guidance that is fully supported by the West Midlands Business Council.

In particular, councils were urged to ensure that funding bids to the Government – known as Local Area Agreements – contain proposals to invest in crime prevention such as the use of CCTV.

London 2012 Olympic and Paralympic Games

Midlands businesses will get support and help to gain work from the 2014 Glasgow Commonwealth Games.

Coventry and Warwickshire Chamber of Commerce Chief Executive and West Midlands Business Council’s 2012 Games Business Task Force Chair, Louise Bennett, said:

“Businesses across the West Midlands region are getting help to gain work from the London 2012 Olympic and Paralympic Games”.

“With events being held in nearly every town and city across the West Midlands region, in partnership with Advantage West Midlands, and with a free to use website – www.ready-for-business.co.uk – to find out about the opportunities from the London Games, we are determined that more and more Midlands businesses gain work from this country’s biggest procurement opportunity since the end of the Second World War”.

“But now Midlands businesses also have a chance to gain work from the recent decision to grant Glasgow the right to host the 2014 Commonwealth Games. While not on the same scale as the 2012 Games, the needs of athletes, support staff, media and visitors from 71 nations going to Glasgow will need to be catered for”.

“No wonder businesses such as BT, Highland Spring Water and DLA Piper backed the Glasgow bid to host the 2014 Games”.

“With Midlands firms in easy travelling time of both London and Glasgow, this is a great chance to gain new work – and we will be there to help ensure the information businesses need will be on hand”.

Grant Melrose of the University of Warwick’s West Midlands Collaborative Commerce Marketplace added:

“Not only will we have direct and indirect tenders from the London 2012 Games and the Glasgow 2014 Games, small and medium sized firms can also team up with firms to form what can be successful bids for work – all free and at the touch of a button on www.ready-for-business.co.uk”.

“With two major sporting tournaments not too far from the Midlands, local firms have a great chance to win the race for business success”.

In addition, the West Midlands Business Council with the Regional Development Agency, Advantage West Midlands, launched the new website from the Olympic organisers to help firms bid for work. This launch took place at Aston Villa FC and gave business colleagues the chance to urge senior London 2012 official, Paul Deighton, to ensure small and medium sized firms have a real chance of getting work from the Games.

In a related development, the West Midlands Business Council received a response from Olympics Minister, Tessa Jowell MP, addressing our concerns that not all answers to questions will be considered in advance of shortlisting of tenders. We are now considering this response before deciding next steps.

The West Midlands Business Council with Business Links held a workshop on the business opportunities from the Games in Stafford.

For more information on business opportunities from the 2012 Games, please go to www.ready-for-business.co.uk and www.london2012.com/business

Inward Investment

Business sector representative on the Birmingham, Coventry and Black Country City Region Board, Glyn Pitchford, was successful in getting action on attracting inward investment to the area.

The City Region covers the council areas of Birmingham, Black Country, Coventry, Solihull and Telford as well as bringing on board business, the Regional Development Agency, Advantage West Midlands (AWM), Learning and Skills Councils and West Midlands Regional Assembly.

Its aim is to ensure economic growth occurs in this area.

Glyn Pitchford called for co-ordinated action amongst all concerned so that inward investment efforts were tied together. As a result of this call. AWM responded to this challenge and has gained agreement with all councils in the City Region for this to happen.

Business will watch to see how this work is practically implemented.