Agenda item

Context:

 

Following the decision for the Cabinet Member for Enterprise to commission the ‘Economies of the Future’ analysis’ in December 2017, the Cabinet Member has invited the Select Committee to discuss the findings with a view to determining the next steps with regard to consideration of an ambition and growth plan for the County.  This in turn will inform the development of the revised Economic Growth and Inward Investment Strategy for the Council.  The ‘Economies of the Future’ analysis is a fundamental piece of work that will also provide evidence to support the developing Monmouthshire Replacement Local Development Plan (LDP). 

 

Key Issues:

 

·         The Cardiff Capital Region City Deal presents a generational opportunity for Monmouthshire to prosper and play a central role in regional economic growth.

 

·         In order to fully take advantage of the opportunities of the City Deal, Monmouthshire would need to have a growing, vibrant, high-skilled population.

 

·         The retail market is an extremely competitive market, with town centre high streets across the UK struggling to respond to the growth of online retailing. Stronger growth in the population could add to the surrounding catchments of Monmouthshire’s town centres, increasing the potential customer base.

 

·         The demographic and economic characteristics, including trends in coming years, suggest risks to the Monmouthshire economy without significant intervention.

 

·         Continuing with on-trend growth would mean that Monmouthshire would continue to lose ground compared to other economies.

 

·         The ageing population of Monmouthshire suggests that the County is vulnerable to losing further ground as the working age population shrinks.

 

·         As the City Deal is enacted, it is an appropriate time for Monmouthshire to consider the City Deal’s opportunities for the County and how it can be leveraged to address the structural issues that are holding back Monmouthshire’s economy.

 

Member Scrutiny:

 

·         The report recognises all of the correct issues. However, concern was expressed whether the Authority has enough ambition with regard to establishing solutions for the issues identified.

 

·         Only 3% of the County is built on.  However, 80% of that 3% is located within the south of the County. Therefore, for the people living in Monmouthshire, the idea of further building in areas where the majority of the housing already exists is a concern.

 

·         The key to further development is the housing mix. More community land trusts need to be investigated. A different priority needs to be given to how the Authority sells its assets so that priority is given to the wellbeing of future generations over capital receipts.

 

·         Town centre sites could be investigated as possible areas to provide affordable housing.

 

·         Concern was expressed regarding the City Deal in respect of IQE and the liability of the Authority should the share price fall.

 

·         The future of Monmouthshire’s increasing elderly population needs to be addressed.  It was considered that the existing provision is not sufficient, going forward.

 

·         In response to the questions raised, the Leader of the Council stated that he had attended the Cardiff Capital Region Select Committee last week in which IQE and the Compound Semi-Conductor were discussed.  Also, the share pricing was discussed. It was noted that this was a long term investment.  The Compound Semi Industry is going to be fundamental.  Many businesses around the region are already growing and expanding as a result of the operation of the foundry in Newport. 

 

·         The Chancellor of the Exchequer has announced £50M to site a Compound Semi-Conductor catapult in the area and is being located in the foundry in Newport. This will be one of 13 catapults built across the United Kingdom.  Research, development and expertise will be drawn to the area with this area becoming the world leading region for this growing industry.  Surrounding industries will be driven forward by having this foundational market of Compound Semi-Conductors in the locality.

 

·         £39M has been invested into the creation of the foundry.  The capital Region has no shares in IQE. It owns the foundry.  The £39M will be repaid over a period of several years but it is levering in revenue at a ratio of £9.00 for every £1.00 invested equating to £375M of inward investment from IQE.

 

·         The growth expected is anticipated to be significant in all of the other areas.  Jobs have also been safeguarded by this inward investment.

 

·         It was acknowledged that there is a need for more affordable housing provision in Monmouthshire. The issues regarding this matter are known and it will be necessary to tackle these issues going forward into the new LDP.

 

·         Concerns were raised with regard to the infrastructure aspects in towns that might have more development, particularly in the south of the County.

 

·         One of the drivers arising from the City Region is to help to create opportunities not just along the M4 corridor but into the surrounding region, including Monmouthshire, both in the north and south of the County.

 

·         A lot of industrial land has been lost to housing development within the County.  There is a need to balance future commercial development alongside the need for housing provision, in particular, affordable housing.

 

·         Concern was expressed with regard to the potential for urban sprawl spreading from towns and impinging on villages.  Infrastructure and the existing service capacity is struggling to cope.  It was considered that the aim should be towards achieving internal employment opportunities along housing provision.

 

·         In terms of the age and demographics of Monmouthshire’s population, the County has an average age of 48, with Cardiff’s average age being 34.  Out commuting rates are 40%.

 

·         Officers clarified that in terms of the report, it is actually an additional 10,000 – 15,000 houses and a 20,000 increase in terms of population rather than 20,000 houses and it is a median age of 48 in Monmouthshire.

 

·         The removal of the tolls on the Severn bridges is an opportunity for Monmouthshire and counties over the border. 

 

·         Infrastructure within the towns needs to be addressed which will be relevant not just for now but for many years into the future.

 

·         With regard to house building, the Authority cannot rely totally on the commercial enterprises to deliver on the vision.  However, as an Authority, we are ambitious but much work is required to develop a strategy to attract industries into the County.

 

·         With the removal of the Severn Bridge tolls, there is joint dialogue between UK Government, Wales Government, Gloucestershire County Council, Forest of Dean District Council and Monmouthshire County Council to unlock the potential for South East Wales by investing in the region and to facilitate the infrastructure growth to create the expansion in all directions including housing and industry.

 

·         Representation from the Select Committee needs to be included in developing the plan for the Economies of the Future, going forward.

 

·         In response to a question raised regarding IQE kills gap, it was noted that there is a significant piece of work which is happening within the region regarding this matter.  IQE is keen to talk to young people and to schools.  Schools have visited the facilities to identify the opportunities that are potentially there for young people.  IQE is keen to take young people directly from school and provide them with in house training for them to become technicians and engineers and provide opportunities for young people to obtain a degree. The young people would receive a high salary for a school leaver.

 

·         IQE has a range of job opportunities for young people within our community.  Some of these are highly technical but there are also more vocational roles available.

 

·         Shared work spaces already exist within the region in Caerphilly and Cardiff.  There is initial thinking being undertaken regarding the provision of shared work spaces in Monmouthshire and funding has been approved for a co-working / enterprise space within the Community Hub in Caldicot.

 

·         The Economic Growth Partnership met recently which investigates how the investment stream can be delivered from and innovation, infrastructure and via a challenge perspective. The framework for this is being developed and will be presented to Cabinet shortly.

 

·         In response to a question raised regarding creating a specialised school within Monmouthshire with emphasis on technology development, it was noted that within Wales, the development of specialised schools is not an option for consideration.

 

·         In response to a question raised regarding social care, it was noted that one of the key areas from an innovation perspective is public service test beds and how innovation could be used to unlock opportunities in this field, with the public service sector having huge opportunities as well as the private sector.

 

Committee’s Conclusion:   There is huge potential within Monmouthshire with many opportunities available.   ·         The Economy and Development Select Committee is keen to be involved and to provide support.