REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 2 JUNE 2015

Transcription

1 PAGE: 1 REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 2 JUNE 2015 SUBJECT: BY: ECONOMIC DEVELOPMENT BUDGET ACTING CORPORATE DIRECTOR (ECONOMIC DEVELOPMENT, PLANNING & INFRASTRUCTURE) 1. REASON FOR REPORT 1.1 To seek approval from the Committee for expenditure from the Economic Development Budget This report is submitted to Committee in terms of Section III (F) (1) of the Council's Administrative Scheme relating to matters relevant to the setting of capital and revenue budgets and long term financial plans. 2. RECOMMENDATION 2.1 It is recommended that the Committee: (i) (ii) (iii) (iv) (v) (vi) (vii) note ongoing work on proposals for a rural communities challenge fund of 60,000 per year (Appendix 2) and that the fund be used as a means to pilot participatory budgeting; notes the likely future demands on the economic development budget as detailed in paragraphs of the report; considers a funding request from Elgin Museum for 44,500 split over 3 years ( 18,500 in 2015/16, 15,000 in 2016/17 and 11,000 for 2017/18); if minded to recommend funding for Elgin Museum as detailed in paragraph (iii), refers the request to the Policy and Resources Committee as this would require commitment from future years of the budget; agrees that the Council continues to be a corporate member of the Chamber of Commerce and allocates 1,200 from the Economic Development Budget in for this purpose; continues to support the food and drink sector with a contribution of 3,000 to the Grampian Food Forum in ; allocates 8,000 for exhibitions and promotion of inward investment to Moray; and (viii) considers approval of 14,000 towards an options appraisal and feasibility study to identify alternate uses for St Giles Church, Elgin.

2 PAGE: 2 3. BACKGROUND 3.1 At the Economic Development and Infrastructure Services Committee on 7 April 2015, the Committee agreed guidance to third parties seeking support from the Council for financial contributions to economic development project programmes and activities. This included establishing that 20,000 of the economic development budget be earmarked annually to support the establishment of visitor events in Moray. (paragraph 5 of the draft minute refers). 3.2 Appendix 1 sets out the committed budget for future years until 2019/20, projected pipeline demands on the budget highlighted pale grey. Please note a separate report on the future LEADER programme will be brought to the Council. In , 5,000 is earmarked in Appendix 1 if the Council is minded to commit to that programme. Current indications are that the administrative cost contribution may be less than 16,900 previously projected. 3.3 Pipeline Demands Rural Communities Challenge Fund: On 19th August 2014, the Economic Development and Infrastructure Services Committee agreed that the economic development budget be used to support the Elgin Business Improvement District 55,000 per annum until 2019/20 (paragraph 7 of minute refers). At the Economic Development and Infrastructure Services Committee on 10 February 2015, the Committee agreed that the economic development budget continue to be used to support the Moray Towns Partnership through funding of 60,000 per annum until 2017/18 (paragraph 4 of the minute refers). The Committee also expressed a desire to consider establishing that part of the Economic Development Budget be used to support projects and activities in rural Moray beyond the towns of Buckie, Elgin, Forres, Keith and Lossiemouth. 3.4 Appendix 2 sets out an initial draft set of criteria for use for a challenge fund which includes a preference to support rural areas that do not have access to community benefits from windfarms. Communities would normally be required to provide match funds from other sources such as the Big Lottery and business community. It would apply to the rural areas and settlements outwith the main towns of Elgin, Lossiemouth, Forres, Buckie and Keith. The objectives of applications would inevitably vary but would be intended to help to address the Council s priorities for economic development. 3.5 It is currently suggested that if such a fund was established the amount would be 60,000 per annum and that the administration of the budget be carried out by the Councils Community Support Unit. It should be noted that 60,000 per year would reduce the funds available to support other priority projects and programmes from the Economic Development Budget (see Appendix 1). Further, engagement with representatives from rural communities would need to be well advanced before any fund could be established and further work is required to develop a suitable participatory process associated with

3 PAGE: 3 community action plans and ensure a fair mechanism for distribution of funds in rural areas. 3.6 Rural Broadband: Moray is at the front end of the rollout of superfast broadband (HiDigital), which aims to provide access to 85% of property by the end of 2016; as of May Moray has reached 66% coverage. Securing access to broadband networks is a Tier 1 priority for the Council. At the Economic Development and Infrastructure Services Committee on 10 February 2015, (paragraph 4 of the minute refers) the Committee expressed a desire to support filling gaps in coverage. There are various technologies including satellite services that can provide service to more remote rural locations that may not be reached by the broadband infrastructure. Aberdeenshire Council has a small pilot programme which is facilitating satellite provision to clusters of rural property. The HiDigital programme also includes a handful of pilots across the Highlands region to reach such locations; a pilot has been installed in the Tomintoul area as part of the Tomintoul and Glenlivet Regeneration programme outlined below. It is recommended that the Council waits until the completion of the rollout at the end of 2016 to see what gaps remain in the coverage and then investigate with Highlands and Islands Enterprise how gaps may be filled. The spending of time and resources developing rural broadband prior to completion of the HiDigital programme would waste valuable resources in areas that the HiDigital programme will cover when finished. 3.7 Tomintoul and Glenlivet Regeneration Plan: On 13 March 2012, the Economic Development and Infrastructure Services Committee agreed to partner with the Cairngorms National Park Authority and Highlands and Islands Enterprise to provide funding support for the implementation of the Tomintoul and Glenlivet Regeneration Plan (paragraph 6 of the minute refers). The regeneration plan is making improvements to community infrastructure and supporting community capacity building for a sustainable future with aspects of the programme touching a number of the Councils priorities including Tier 1 access to broadband and Tier 3 developing visitor destinations. The Council has provided 15,750 per annum for 3 years which has been used to provide support for projects including improvements to the youth hostel and a broadband pilot scheme and for the employment of a Community Development Officer to support the Community Development Trust that was established as part of the regeneration programme. The programme has been successful in engaging the community in the regeneration of the area, with music events, cycling event and partnering with the Spirit of Speyside Whisky Festival. Most notably as part of major regeneration project phase 1 approval has been achieved from the Heritage Lottery Fund for the Landscape Partnership Programme schedule for implementation to On 6 May 2014, the Committee has agreed to be a full partner contributing 50,000 per annum (paragraph 13 of the minute refers). 3.8 The Community Development Trust will be requesting an extension of funding support from CNPA. HIE and the Council for the regeneration programme and has been advised to make an application for support from the Council as established by this Committee on 7 April The proposal will be to seek

4 PAGE: 4 agreement to extend support to the trust until March Splitting the support equally between the 3 original partners would bring the Council s contribution to 8,200 in , 21,400 in and 21,800 in 2017/18. The budget would primarily be used to provide continued employment of the local development officer and an assistant to work with the community to deliver the regeneration plan. The budget is shown as projected expenditure and approval is not being sought at this time. 3.9 Expenditure For Decision Elgin Museum: The Moray Society is seeking funding support to develop its unique 4 star visitor attraction and accredited museum to increase the number of visitors with a greater focus on its role as a Tourist destination and information point. The development of visitor destinations is a Tier 3 priority for the Council. The plan includes maximising marketing to a wider audience with an increased offer of activities and the ability to diversify for lets such as weddings and corporate events to become more self-sustaining. As a result it is anticipated that the visitor numbers will increase from 10,537 to over 14,000 per year with a predicted economic impact of 1.8 million for the area. Moray Speyside Tourism, has been consulted on the application and considers that Elgin Museum s plans fit well with the Moray Tourism Strategy and the Moray Speyside Marketing Framework, and at a national level it will support the objectives for the Focus Years, particularly the forthcoming 2016 Year of Architecture, Innovation and Design and 2017 Year of History, Heritage and Archaeology The funding request is for 44,500 split over 3 years ( 18,500 in 2015/16, 15,000 in 2016/17 and 11,000 for 2017/18). The full details are contained in the application form, the business plan and audited accounts attached as Appendix 3. The details provided outline that the Moray Society is successful in seeking funding on an ongoing basis for specific museum related activities ranging from outreach to infrastructure from all possible sources such as Heritage Lottery Fund to Trust funding and this core development would not be met by any of these funders. The proposal contributes directly to the priorities of the Moray Economic Strategy and Moray Chamber of Commerce Annual Membership: The Chamber of Commerce is a membership organisation; it provides a main conduit for Council engagement with the Business Community. The Chamber provides a means to promote Moray, promotion of Moray is a Tier 1 priority for the Council. The Chamber provides business support; business support is a Tier 3 priority for the Council. The Chamber is a founding partner of the Moray Economic Partnership and facilitates engagement with the business community, helping to promote Moray as a location for business and supporting business to grow. This entirely fits with the primary objective to grow and diversify the economy of Moray as set out in the Moray Economic Strategy and Moray Jointly funded by HIE and the Council (the Council is contributing 20,000 per annum to ) the Chamber to help develop Moray as a visitor destination and an annual report on progress in this area will be submitted to the next committee. During 2014 and 15 the Chamber has facilitated engagement between business and Moray Schools including the establishment of career academies. Annual corporate membership is 1,200.

5 PAGE: 5 It is recommended that the Council continues to be a corporate member and allocates 1,200 from the Economic Development Budget in for this purpose Business Support - Food and Drink Sector: The Food and Drink sector in Moray employs over 3,500 people, 11% of the workforce compared to 2% across Scotland. Business support is a Tier 3 priority for the Council. Moray has a strong track record of attracting and growing food and drink companies. Moray Council support for the sector is provided by facilitating the Grampian Food Forum. Economic impact research in 2012 identified 12 instances where businesses were able to put a value on the increased sales, reduced costs or raised productivity as a result of Forum activity. Cumulatively, these have: added 6,310,833 to the turnover of the beneficiary companies added million to Scottish GVA During 2015 Aberdeen City and Shire Economic Futures has co-produced a food and drink strategy for the NE with participation from the Food Forum, the strategy and action plan will be used to guide future activities of the forum. A key activity of the forum is the annual food and drink innovation awards. The awards are a means to promote Moray Food and Drink Business and Moray. Promotion of Moray is a Tier 1 priority for the Council. In March 2015, Baxter s Food Group, Associated Seafoods, Speyside Craft Brewery and Windswept Brewery won 4 of the 12 awards with the first three progressing to the national awards. The national awards provide opportunity to engage with other business and to promote the business and Moray. It is considered that support for the Food Forum is excellent value for money and it is recommended that the Council continues to support the forum with a contribution of 3,000 in Exhibitions and Promotions: During the Council with HIE jointly promoted Buckie Harbour as a potential location for offshore wind operations and maintenance and for inward investment. Stands with attendants were provided at the Aberdeen All Energy Event ( 4,000) and the Offshore Wind Event ( 2,000). Promotion of Moray is a Tier 1 priority for the Council. It is recommended that the committee continues to allocate 8,000 for exhibitions and promotions Elgin Town Centre Regeneration: Further to the Town Centre Charrette in March of this year, it is clear that the St Giles Church building has the potential to play a pivotal role, further there is a time pressure to identify a sustainable future for the building. Investigations indicate that use as a music venue will not be sufficient alone to generate the 20,000 per year needed to maintain the Grade A listed building at the heart of Elgin High Street. It is anticipated that the consultant s report from the charrette due this Summer will identify securing an alternate use for the building as a priority and therefore it is recommended that an options appraisal and feasibility study is commissioned now working with the Church to identify alternate community or commercial uses that are sustianable. It is recommended that the Committee

6 PAGE: 6 consider an allocation of 14,000 from the budget towards the options appraisal and feasibility study Unallocated budget: If the Committee is minded to approve the recommended expenditures, 118,500 of the budget will remain unallocated at this time. Please see the caveat set out in the financial implications section of this report. During additional expenditures are projected as outlined above and set out in Appendix 1. In particular it should be noted that the final report of the Elgin City Centre Charrette will be received this summer and it is anticipated that recommendations will generate expenditures on research and feasibility studies required to take forward proposals. Further, a report will be brought to the committee regarding the replacement of the electronic information kiosks presently located in Elgin, Forres, Buckie and Lossiemouth which will consider the effectiveness and benefits of the system and value for money. 4. SUMMARY OF IMPLICATIONS (a) (b) (c) Moray 2023: A Plan for the Future/Service Plan. The Ten Year Plan identifies Sustainable Economic Development as its top priority. The Plan includes it but is not limited to outcomes to increase the population, regional average wage, employment by the private sector, employability, the number of business start-ups, and the number of start-up businesses that survive beyond five years and the percentage of premises that have access to Next Generation Broadband. The report outlines activity intended to support the growth and diversification of the local economy. Policy and Legal The Council considers support for economic development issues on their merits, against the objective to facilitate sustainable economic growth and the desired outcomes of the Ten Year Plan. Financial implications If the Committee accepts the requests for funding, the items will be committed from the Economic Development Budget: 1,200 for corporate membership of the Chamber of Commerce 3,000 contribution to the Grampian Food Forum 8,000 for exhibitions and promotion of Moray for inward investment 14,000 for options appraisal and feasibility study St Giles Church 44,500 split over 3 years ( 18,500 in 2015/16, 15,000 in 2016/17 and 11,000 for 2017/18) for tourism development at Elgin Museum. Total budget allocated 678,500 budget remaining 118,500. NB this total includes 113,000 carry forward for Elgin Heritage Experience project. This has been agreed in principle by the Policy and Resources Committee on 17 March 2015 (paragraph 8 of minute refers) but will not be confirmed until the Council meeting on 24 June which will

7 PAGE: 7 consider a report on the 2014/15 Revenue Outturn and Analysis of Variances. (d) (e) (f) (g) (h) Risk Implications The recommended expenditures have no risk implications. Staffing Implications If the Committee is minded to establish a rural communities challenge fund, engagement would be required with rural communities and the fund would be administered by the Community Support Unit. Property There are no property implications arising from this report. Equalities If a rural communities challenge fund was to be used as a pilot for participatory budgeting this would provide an opportunity to address inequalities in rural communities. Consultations Consultation has been undertaken with Don Toonen (Equal Opportunities Officer) regarding any Equalities implications; Aileen Scott (Legal Services Manager), Moira Patrick (Democratic Services Manager), Lorraine Paisey (Principal Accountant Financial Services), in regard to the budgetary information and John Ferguson (Community Planning and Development Manager). Any comments have been incorporated in this report and they are in agreement with sections relating to their area of responsibility. 5. CONCLUSION 5.1 The report seeks approval from the Committee for expenditure from the Economic Development Budget and asks the Committee to note work ongoing on establishment of a rural communities challenge fund. Author of Report: Background Papers: Gordon Sutherland; Planning and Economic Development Manager