Agenda item

To update members on the major transitions and on the regional and local responses being established.

(a)     Members noted the potential economic outlook projections and review the recovery structures established to steer future actions.

(b)     Members noted the current and proposed work programmes established to support economic recovery in Flintshire.

(c)     That a letter be sent on behalf of the Committee to Welsh Government to ask for the reinstatement of the Aggregates Levy Fund

The report was presented by the Chief Officer (Planning Environment & Economy) and Enterprise and Regeneration Manager.   The Chief Officer confirmed this was part of a series of papers being brought to committee regarding Economic Recovery and that this report outlined the proposals at the regional level and within the Council Plan.

            The Enterprise and Regeneration Manager confirmed the report clarified where the Council was at present with regard to the economy in Flintshire, highlighted potential risks, the governance structures in place and the current work programme to respond to those risks.  He provided information on the following:-

·         The uncertain position with regard to Brexit

·         The work undertaken by Grant Thornton on behalf of the WLGA looking specifically at trade and highlighted a number of risks specific to Flintshire as our economy was based on trade.

·         Most company headquarters were not based in Flintshire which placed Flintshire at risk with decisions being made elsewhere

·         Flintshire had a high level of low skill workers which were vulnerable to job losses

·         The Covid 19 situation we still uncertain with the Furlough scheme still in place which could mask potential future job losses especially for young people.

            The Enterprise and Regeneration Manager referred members to the diagram on page 36 prepared by Grant Thornton which highlighted the risks on how manufacturing and wholesale were reliant on Brexit and Covid outcomes.    He reported on the number of groups established with WG and the North Wales Economic Ambition Board and the work undertaken to plan the recovery process both for immediate needs and to reshape the future.  The priorities were included within the Council Plan.

            Councillor Patrick Heesom felt that this was a very important report and was concerned with the lack of member involvement in the procedures.  He referred to the structure on page 37 which had very little space for contributions from elected members especially with the implications of Brexit.  He then referred to the contributions of the Hatch Report and Grant Thornton Report and felt that members needed a precis of those reports to enable a better understanding.  In response the Enterprise and Regeneration Manager hoped the information provided a summary of those report and confirmed when they were available they would be circulated to Members. He would reflect on the comments regarding member involvement and hoped the meeting would provide some member involvement to enable discussion and hold officers to account. He hoped that would provide some level of reassurance but was happy to receive any comments.

            Councillor Shotton referred to the issues at Holyhead port because of the amount of paperwork companies had to complete which had resulted in deliveries being diverted to European ports and coming in the UK via Eire and then to Northern Ireland.  He asked how this was impacting on firms and haulers in Flintshire.  He also asked with the European Funding coming to an end and priority funding taking place where were the decisions being made at WG or the North East Wales Growth Board.    In response the Enterprise and Regeneration Manager referred to the changing position with regard to freight and haulage and that it was important to separate the short term disruptions with the longer term shifts in our economy.  The situation was uncertain at the present time with Holyhead in a vulnerable position with the alternative route being a long expensive sea route.   As regards the EU funding this would be tapering off in the next two or three years but Flintshire was a small recipient of EU fundswhich had made a huge difference and that work was required to understand the impacts of the loss of that funding.  He referred to the UK budget which announced some funding for regions but the replacement was not fully operational yet and provided information on the shorter term funding made available with the bids for funding processed at Westminster not Cardiff.  The Enterprise and Regeneration Manager provided information on the strong successful collaborative working in place across North Wales.

Councillor Owen Thomas stated that Flintshire had a highly skilled workforce and very skilled companies with the whole world available to do business with but felt that apprenticeships should be encouraged across all trades.   The Enterprise and Regeneration Manager agreed with Councillor Thomas’ comments on skills saying there was a proportion of firms with a very high skilled workforce which was the reason there were so many manufacturing and high tech industries in the county.

            Councillor Chris Bithell referred to the recent Town Centre Consultation in Mold and praised the support provided by the Enterprise and Regeneration Manager and his team to the county and town councillors and members of the public.

            The Cabinet Member reported on previous funding from Cadwyn Clwyd and the Rural Development Plan (RDP) and asked how much longer that funding would be made available for Town Centre Regeneration.  She also asked what the situation was concerning the Aggregates Levy Fund for Wales and confirmed she was speaking to WG for an update on what was replacing this funding as now that quarries and building was commencing again she would like to see communities receive some of this funding.

            The Enterprise and Regeneration Manager confirmed the Rural Development Plan for Wales funding was 50% European and 50% WG money and these programmes would phase out over the next 2 or 3 years together with the other European programmes.  The situation was very unclear about the future for these rural programmes and also no detail was available at present on what the replacement for the Common Agriculture Policy or the work covered by Cadwyn Clwyd.

            The Chief Officer referred to the Aggregates Levy Fund and explained that this was introduced as a tax on primary aggregate extraction about 15 years ago with a proportion used to enable local communities to apply for funding for local projects such as community buildings or play areas.  He confirmed it ceased in England about 7 or 8 years ago but continued in Wales until 2 years ago when WG removed their support for this.  He commented that the bigger infrastructure projects such as Parc Adfer provided community development funds and felt as a council Flintshire was good at accessing opportunities whether via Parc Adfer or other streams with Tom Woodall and his team directing communities to funding streams.    The Cabinet Member asked if the committee could write to WG to lobby support for the reintroduction of the Aggregates Levy Fund as a recommendation from the committee.

            The Cabinet Member for Economic Development agreed with previous comments made saying the economy was in a state of flux.  He was pleased that Airbus were not making compulsory redundancies and that information was still awaited regarding Vauxhall.    He referred to job losses which had been lower than envisaged so far but the furlough scheme was potentially masking the full impact.  He referred to the vulnerability of the food manufacturing industry, in particular.  The Cabinet Member then referred to the benefits which could be achieved from the North Wales Growth Deal and the Mersey Dee Alliance cross-border initiative and that the hospitality and tourism sectors could be boosted by the staycation economy.  As regards Cadwyn Clwyd, there were concerns amongst the WLGA about rural packages which had been generous from the EU in the past and it was unclear what funding would be coming forward from Westminster to replace these.   

The recommendations were moved and seconded by Councillors Patrick Heesom seconded Joe Johnson

RESOLVED:

(a)     Members noted the potential economic outlook projections and review the recovery structures established to steer future actions.

(b)     Members noted the current and proposed work programmes established to support economic recovery in Flintshire.

(c)     That a letter be sent on behalf of the Committee to Welsh Government to ask for the reinstatement of the Aggregates Levy Fund.