Get documents about "CLIENT NAME
Document Sample
PEEL LAND AND PROPERTY (PORTS) LTD
PEEL INTERNATIONAL TRADE CENTRE AT
WEST FLOAT, WIRRAL WATERS
ECONOMIC REGENERATION STATEMENT
1 JUNE 2011
CONTENTS
Executive Summary i
1. Introduction 1
2. Proposed Development 2
3. Policy Rationale and Strategic Fit 15
4. Employment Impacts 32
5. Other Economic Impacts 48
6. Maximising Economic Benefit 60
TA Ref: PEEM2046
LPA Ref: WIRRAL COUNCIL
Office Address: 1 New York Street
Manchester
M1 4HD
Telephone 0161 233 7676
Date of Issue: 1 June 2011
Executive Summary
1. The proposed Peel International Trade Centre (ITC) is a new and unique
development within the UK and Western Europe. It will be an integrated facility,
comprising up to four phased buildings, within which a range of activities will take
place, enabling a large number of companies from around the world, including
China, India and other emerging economies, to exhibit, sell, assemble and
distribute their goods to UK, Irish and European trade markets. Its principal
function is to serve as a „trading gateway‟ into the UK and European market,
enabling new trade links to be made.
2. The ITC will serve as a gateway to the UK and Europe, enabling new, innovative
products to be showcased and sold, thus opening up access to emerging
economies and suppliers, and providing UK and European business with greater
choice and competitive advantage. The opening up of new markets and trade
routes will provide sectors such as manufacturing, technology and construction
with increased opportunities to access new and existing products at lower cost,
providing efficiency and cost benefits to UK and European markets. This will in turn
facilitate increased business activity and output, providing wider employment and
economic growth.
3. The availability of new products and suppliers to established retailers will also
stimulate activity across the retail sector, increasing competitiveness and enabling
new niche and specialist retail opportunities to emerge. More generally,
establishing positive trade links with growing economies will provide a reciprocal
effect; increasing the opportunities for UK businesses to export a range of
domestic goods and services to rapidly developing countries.
4. The ITC has the potential to play an important role in improving the efficiency and
competiveness of UK and Western European markets. It can provide these
markets with access to high quality goods and brands not previously available,
enabling existing businesses to source affordable products and improve their ability
to remain economically viable within an increasingly challenging and evolving
marketplace.
5. The goods expected to be displayed and sold from the ITC may cover all sectors
and business lines, including but not restricted to:
Engineering materials including parts, machinery, tools etc for a range of
sectors;
Construction and building materials;
i
Electrical goods;
Clothing and furnishing; and
Household goods such as kitchenware, furniture, fixtures and fittings.
6. Peel has carried out research into the market concept, including holding
discussions with potential international investors and occupiers in China and South
Korea, and with the operators of similar market concepts in Asia and Eastern
Europe. Through these discussions, the potential has been identified for such a
market to be developed in the UK in a suitable location. Peel could deliver the ITC
on its own, but is inviting the international business community to enter a
partnership to invest in the ownership and management of the project. It is clear
from Peel‟s discussions with potential investment partners that demand and
interest are strong for such a facility in north/west Europe. Relationships are being
developed with a range of foreign investment partners to secure a joint
venture/partnership approach to delivery and management.
7. This follows Peel‟s successful attendance at the Shanghai Expo in 2010 and
participation in trips, exchanges and meetings between the respective
Governments and business leaders of the UK and China. The Chinese market is a
clear opportunity for the ITC but Peel is also exploring links with other markets
including India and South Korea. The aim is for the ITC to become truly global in its
profile and operation.
8. The ITC‟s customers will be trade buyers working for companies who require
access to trade goods/products. These buyers will order goods and either use
them as components for a further business activity (i.e. engineering/manufacturing,
automotive and construction) or sell goods through their own channels (i.e. national
high street retailers, supermarkets, independent retailers, online retailers etc).
Sales will be restricted to those buying on behalf of the trade. The general public
will not have access to the ITC, and hence will not be able to purchase or order
goods from the ITC. The planning permission will contain legally binding
restrictions on the use of the ITC reflecting the above.
9. The ITC is likely to create over 3,000 full time equivalent jobs directly and
indirectly, and contribute over £100 million annual GVA to the economy. It will
therefore provide a large number of private sector employment opportunities in a
deprived area of need, which is over-dependent on public sector employment that
is set to contract. The skills levels of the new employment opportunities are very
well aligned with the local community and a plan is being put in place to maximise
access for local people to the new jobs. The employment opportunities will be
ii
additional as the ITC represents economic activity that would not otherwise occur
in the area. The ITC will also bring a number of other benefits to the local area,
including increased demand for tourism/visitor facilities and housing.
10. The ITC will also act as a catalyst to the wider development of Wirral Waters and
other investments in the City Region and wider Ocean/Atlantic Gateway area, thus
underpinning sustainable economic growth in the wider area.
11. The outline scheme for which permission is sought will safeguard the potential for
port tenants to be decanted from East Float to West Float, subject to future
requirements and the land requirements of the ITC.
12. In overall terms, the ITC represents a hugely important economic development
opportunity for Wirral, the City Region, the wider Ocean/Atlantic Gateway corridor
and the UK as a whole, to secure inward investment and sustainable private sector
growth and employment, all located within an area of economic need. It is therefore
extremely well aligned with policy nationally and locally.
iii
1. Introduction
1.1 This Economic Regeneration Statement is provided in support of an outline
planning application for the proposed Peel International Trade Centre (ITC) at
West Float, Wirral Waters, on behalf of Peel Land and Property (Ports) Ltd.
1.2 It considers how the proposed development is aligned with national and local
policies for economic development and regeneration, what the likely economic
impacts of the project will be, and how the economic benefits of the project can be
maximised and in turn address some of the social challenges which exist in the
local area.
1.3 It draws upon existing evidence and policy guidance, together with a bespoke
approach to understanding the economic impacts which is necessary in view of the
unique nature of the project in the UK.
1.4 The remainder of this statement is structured as follows:
Section 2 describes the proposed development from an economic
perspective;
Section 3 sets out relevant economic policy and the strategic fit of the
project;
Section 4 assesses the employment impacts of the proposed development;
Section 5 presented the other economic impacts of the proposed
development; and
Section 6 considers how the economic benefits of the project can be
maximised.
1
2. Proposed Development
The ITC Concept
2.1 The International Trade Centre (ITC) will be an integrated facility, comprising up to
four phased buildings, which together will provide up to 228,300 square metres
(2,457,398 square feet) of floor space for a range of activities enabling up to
around 1,200 companies from around the world, including China, India and other
emerging economies, to exhibit, sell, assemble and distribute their goods to UK,
Irish and European trade markets. Its principal function is to serve as a „trading
gateway‟ into the UK and European market, enabling new trade links to be made. It
is intended to be unique in Western Europe and will deliver significant economic
benefits locally and in the wider economy.
2.2 The ITC will serve as a gateway to the UK and Europe, enabling new, innovative
products to be showcased and sold, thus opening up access to emerging
economies and suppliers, and providing UK and European business with greater
choice and competitive advantage. The opening up of new markets and trade
routes will provide sectors such as manufacturing, technology and construction
with increased opportunities to access new and existing products at lower cost,
providing efficiency and cost benefits to UK and European markets. This will in turn
facilitate increased business activity and output, providing wider employment and
economic growth.
2.3 The availability of new products and suppliers to established retailers will also
stimulate activity across the retail sector, increasing competitiveness and enabling
new niche and specialist retail opportunities to emerge.
2.4 More generally, establishing positive trade links with growing economies will
provide a reciprocal effect; increasing the opportunities for UK businesses to export
a range of domestic goods and services to rapidly developing countries.
2.5 The ITC has the potential to play an important role in improving the efficiency and
competiveness of UK and Western European markets. It can provide these
markets with access to high quality goods and brands not previously available,
enabling existing businesses to source affordable products and improve their ability
to remain economically viable within an increasingly challenging and evolving
marketplace.
2.6 The ITC will include showroom spaces, warehousing/storage and assembly
facilities, plus ancillary facilities such as offices, security and food and drink. The
2
goods expected to be displayed and sold from the ITC may cover all sectors and
business lines, including but not restricted to:
Engineering materials including parts, machinery, tools etc for a range of
sectors;
Construction and building materials;
Electrical goods;
Clothing and furnishing; and
Household goods such as kitchenware, furniture, fixtures and fittings.
2.7 The ITC concept is new and unique to the UK and Western Europe and there are
no clear precedent schemes currently in operation. Peel has carried out research
into the market concept, including holding discussions with potential international
investors and occupiers in China and South Korea, and with the operators of
similar market concepts in Asia and Eastern Europe. Through these discussions,
the potential has been identified for such a market to be developed in the UK in a
suitable location.
2.8 Peel could deliver the ITC on its own, but is inviting the international business
community to enter a partnership to invest in the ownership and management of
the project. It is clear from Peel‟s discussions with potential investment partners
that demand and interest are strong for such a facility in north/west Europe.
Relationships are being developed with a range of foreign investment partners to
secure a joint venture/partnership approach to delivery and management.
2.9 This follows Peel‟s successful attendance at the Shanghai Expo in 2010 and
participation in trips, exchanges and meetings between the respective
Governments and business leaders of the UK and China. The Chinese market is a
clear opportunity for the ITC but Peel is also exploring links with other markets
including India and South Korea. The aim is for the ITC to become truly global in its
profile and operation.
2.10 The ITC‟s customers will be trade buyers working for companies who require
access to trade goods/products. These buyers will order goods and either use
them as components for a further business activity (i.e. engineering/manufacturing,
automotive and construction) or sell goods through their own channels (i.e. national
high street retailers, supermarkets, independent retailers, online retailers etc).
3
2.11 Sales will be restricted to those buying on behalf of the trade. The general public
will not have access to the ITC, and hence will not be able to purchase or order
goods from the ITC. The planning permission will contain legally binding
restrictions on the use of the ITC reflecting the above.
Economic Opportunity
2.12 It is expected that the ITC will have an influence on wider market and economic
activities locally, across the UK and potentially into Western Europe. The opening
up of new markets and trade routes will provide sectors such as manufacturing,
technology and construction with increased opportunities to access new and
existing products at lower cost, providing significant efficiency and cost benefits.
2.13 This can in turn result in increased activity and output within these sectors,
stimulating wider employment and economic growth. The availability of new
products and suppliers to established retailers will stimulate activity within this
sector, increasing competitiveness and enabling new niche and specialist retailers
to emerge. More generally, establishing positive trade links with growing
economies, will provide a reciprocal effect; increasing the opportunities to export a
whole range of domestic goods and services to rapidly developing countries.
2.14 The establishment and growth of such links will promote the UK and in particular
the local area of the Wirral peninsula and the Liverpool City Region as a place for
overseas markets to visit and invest in. These build on the local area‟s existing and
growing business, cultural and educational linkages with China including Liverpool
being „twinned‟ with Shanghai and Wirral with Suzhou, plus the Liverpool City
Region being the only UK City to benefit from a „pavilion‟ at the 2010 Shanghai
Expo where Peel were the lead sponsor.
2.15 These are additional market opportunities which will only be realised as a result of
the unique nature of the development and its ability to open up access to these
new markets. This provides the UK, the Liverpool City Region and Wirral with a
major opportunity. The ITC concept is new to the UK and Western Europe, with no
clear precedent schemes currently in operation. Peel has carried out research into
the potential market, including holding discussions with potential international
investors and occupiers in China and operators of existing facilities in Eastern
Europe (GD Poland) through which significant potential has been identified for this
market to be developed in the UK.
2.16 The ITC would bring the UK economy into direct contact with previously closed or
difficult to access markets through opening up trade links with rapidly emerging
4
economies, providing the UK with a strategic advantage over other economies in
Europe.
2.17 The proposal is critical to enabling the UK to tap into these emerging markets now
and to secure long term beneficial relationships with key international economies
and grow the relationship with overseas countries, especially China.
2.18 The ITC has the potential to influence a wide variety of markets within the UK
including the retail, manufacturing and construction sectors. These markets are
well developed in the UK but in a state of transition due to a range of factors,
including the current state of the economy, the growth of the internet, the threats
posed by climate change and the expansion of economies within developing
countries.
2.19 For example, manufacturing within the UK has been in decline for a number of
decades, but continues to play an important part in our economy and is currently a
sector experiencing growth. The Liverpool City Region is moving away from mass
manufacturing of heavy goods towards specialist manufacturing of high technology
goods such as those required by the telecommunications sector. The efficiency
and continued productivity of these sectors is reliant on being able to tap into the
advances in technology offered by products and components manufactured in
emerging economies. Ready access to such markets is key to ensuring the UK
economy remains competitive. Without such access, these industries, to which the
UK economy is intrinsically linked, will not be able to compete in a global market.
2.20 The construction industry is similarly in a state of change, with growing pressure
upon the sector to embrace technological advances to deliver greener and more
sustainable building solutions in response to the growing pressures posed by the
threat of climate change. The energy sector is also under similar pressure, with the
UK facing an impending energy crisis due to dwindling supplies of fossil fuels
which we remain reliant on. The energy sector is under pressure to evolve in order
to secure our energy future and to avoid the UK being susceptible to predicted
increases in fuel prices in the face of increased demand from developing countries.
2.21 In response, these and other industries must embrace change and look to utilise
technology and product advancements being developed across the globe. The
UKITC will play a key role in opening up these markets to the UK, enabling these
sectors to have direct access to the products they require at lower cost, be that in
terms of energy, retail, communications, construction or manufacturing.
2.22 The International Trade Centre effectively represents a new market opportunity
within the UK context, targeted at developing trade links with internationally
5
important growing economies. The proposed development will be the first of its
type in Western Europe and will shape the direction and growth of this market.
Through its discussions with its Chinese partners, Peel has identified a will and
desire to develop this market within the UK. The scale of demand contemplated
indicates that the sector will grow rapidly over the next ten years led by the ITC at
West Float. However, this will not happen naturally and there is a need to catalyse
this growth effect through the provision of a critical mass of trading space at the
ITC which can send out a very clear message to investors that the UK market for
their goods is strong.
2.23 The markets and sectors which the ITC will influence are in a state of transition and
under pressure to evolve and adapt in the face of economic, technological and
environmental pressures. The ITC will play a positive role in supporting these
markets in evolving, through enabling them to access products from emerging and
rapidly developing economies which can provide cost, efficiency and environment
benefits. This will ensure that these sectors remain competitive and the UK can
continue to prosper in a global economic context.
Strategic Location for Marrying Opportunity and Need
2.24 The West Float site is an ideal location in which to establish such a facility within
the UK in view of its port location, connections to UK, European and wider
international markets and its location within one the most priority regeneration
areas of the UK. Locating the proposal within West Float therefore embraces the
concept of marrying „opportunity‟ and „need‟.
2.25 In addition to the trade centre function of the development, the site‟s setting as part
of the Port of Liverpool will provide the opportunity for goods to be delivered by
boat to the Port of Liverpool from the supplying country for distribution to
customers across the UK and Europe. It will therefore provide a platform to
enhance the City Region‟s ability to compete in the distribution/logistics market.
2.26 The Port of Liverpool itself is the 7th largest port in the UK, handling in excess of
40m tonnes of cargo and 15,000 ship movements per year. It is also set to grow
with Peel‟s investment in the new Post-Panamax container terminal. The port is
therefore well positioned to accommodate the UKITC and absorb increased freight
traffic which will result from its operation.
2.27 The UK Department for Transport has identified that containerised port traffic is
expected to increase by 183% between 2005 and 2030. It is clear that if the growth
in goods entering the UK is to be distributed in a sustainable manner, the handling
6
capacity of the main North West entry point, namely the Port of Liverpool, needs to
be increased. The ITC, strategically located in the centre of the UK, will support
such an increase, serving a wide catchment area and acting as a gateway to
regional markets within the UK.
2.28 It is considered by Peel to be crucial that the ITC is able to locate within an
operational international port area where the freight handling market is already well
developed. This provides it with a unique selling point during a period when the
international trade centre market is in its relative infancy.
2.29 The Port of Liverpool setting provides the added benefit of being located within an
area of high demand for the products that will arrive into the Centre. At present
only 7% of UK imports arrive in Liverpool, despite the North West being the 2nd
largest economy in the Country. The ITC will provide a single arrival point for a
wide range of products from where they can be distributed easily, efficiently and
sustainably, to surrounding markets in the UK and Europe. The facility‟s port and
distribution network is therefore a perfect marriage with its trade function and its
ability to open up trade links and markets with rapidly expanding economies.
Development Objectives
2.30 The ITC will be unique from an investor and occupier perspective in its ability to
open up access to UK and Western European markets. The benefits of the ITC in
supporting the development of trade links and economic relationships with key
emerging economies can however only be realised if the ITC serves markets
across the UK and Western Europe.
2.31 To be successful, the ITC must not only be an attractive market concept that Peel
and its partners can invest in, but also deliver wider sustainability benefits and
secure the necessary consents and approvals, including planning permission.
2.32 A list of development objectives to realise the concept and economic opportunity is
set out below:
1. A trading centre of global scale and critical mass, occupied by businesses
from around the world, serving UK and Western European markets across a full
range of business sectors;
2. A catalyst to transformational regeneration opportunities, including Wirral
Waters and Liverpool Waters and the wider Liverpool SuperPort, Ocean Gateway
and Atlantic Gateway initiatives;
7
3. A locally supported project, through integration with local regeneration priorities
and community aspirations, representing a significant source of jobs for local
people, linked to the local and wider business and skills network;
4. A means of unlocking new markets and enhancing business
competitiveness, both locally and in wider UK and Western European markets;
5. An integrated facility providing a range of synergistic business advantages and
supporting infrastructure and facilities, operated and managed by Peel and its
investment partners;
6. A flexible development, that allows a full range of product types to be
showcased and sold in response to changing market dynamics, able to
accommodate over 1,000 co-located trade showrooms;
7. An underpinning economic and tenancy model which maximises the
attractiveness of the facility to tenants, on flexible short term leases, whilst
minimising risk to investors; and
8. A phased approach to delivery over the next ten years;
9. A high quality built development incorporating sustainable technologies and
bringing wider sustainability benefits;
10. An internationally and locally accessible development, served strategically by
water, air, rail and road, connected to the local community by public transport,
walking and cycling.
Outline Application
2.33 The Planning Statement and the Design and Access Statement explain the
physical characteristics and scale of the proposed development, along with the
outline approach to the planning application.
2.34 For the planning application, the following description is proposed:
Outline planning application with all matters reserved for the demolition of
existing buildings and the construction of:
Two buildings providing an overall maximum of 111,780sq m of floor
space to be used as an International Trade Centre (Sui Generis Use)
(comprising trade showrooms, storage, distribution and product
assembly space, exhibition space, ancillary food and drink facilities,
ancillary office and management accommodation, security facilities, and
8
associated car parking, access points, servicing areas and landscaping),
on land north of Beaufort Road and east of Graving Dock No. 3, West
Float, Wirral Waters, Wirral; and
Two buildings providing an overall maximum of 116,529 sq m of
floorspace to be used as one or a combination of, an International Trade
Centre (as defined), B2 General Industry and B8 Warehouse/Distribution
(with associated car parking, access points, servicing areas and
landscaping) on land east of Wallasey Bridge Road and west of Graving
Dock No. 3, West Float, Wirral Waters, Wirral.
equating to a total combined floorspace of 228,300 sq m of mixed employment
floorspace,
2.35 The „use and amount‟ are fixed. Maximum parameters have been established for
the amount of floorspace which can be constructed across the West Float ITC site
as a whole, and the maximum floorspace which can be provided within each of the
four buildings.
2.36 The ITC and wider Wirral Waters proposals will affect existing port tenants of both
West and East Floats who will be required to be relocated as development comes
forward over the next few years. The Revised Port Guiding Principles document
provided at Appendix A of the Planning Statement sets out a strategy for the
relocation of tenants displaced as a result of the East Float and ITC proposals,
confirming West Float, including part of the application site, as one location
potentially able to accommodate tenants.
2.37 In order to ensure this relocation strategy aligns with the ITC proposals and to
provide sufficient flexibility, it is necessary for the planning permission to provide
the potential for some of the displaced businesses to be relocated to the site
should this emerge as the most viable and appropriate option. As set out in the
description of development, the two buildings located to the east of the Graving
Dock will be used solely as an International Trade Centre. The two buildings to the
west of the Graving Dock will be capable of being used solely or as a combination
of the ITC and B2/B8 uses.
2.38 There is a need for flexibility in this manner arising from the as yet unknown extent
of demand for the ITC concept and the potential need for the relocation of
businesses displaced from East Float.
2.39 The ITC use is a sui generis planning use, which means that it does not fall within
any individual use class. This is because it contains a range of activities which will
9
operate flexibility and in an integrated and holistic manner. The range of activities
which will occur are as follows:
Showrooms for traders, comprising lockable units with flexible internal space for
sales, display and storage;
Warehousing and distribution;
Assembly of goods and products;
Trade exhibitions and fairs;
Management suite, offices, security, food and drink and other ancillary facilities;
Circulation areas and associated services, utilities and infrastructure; and
Parking, public realm, landscaping servicing and access.
2.40 The maximum amount of proposed development is set out in Table 1 below.
Table 1: Amount of Proposed Development
Building Square Metres (GIA) Square Feet (GIA)
1 62,100 668,438
2 49,680 534,750
3 58,260 627,105
4 58,260 627,105
Total 228,300 2,457,398
2.41 The maximum footprint for each building is derived from the above, within the scale
parameters shown in the application plans.
2.42 The proposed restrictions over the use will ensure that the ITC operates as a trade
facility. It will comprise an operational system that will manage the eligibility of
trade buyers, to ensure that members of the general public do not use the ITC as a
retail facility. The proposed terms are set out in the Planning Statement.
10
2.43 The number of trade showrooms is not proposed to be limited. Assessments are
based on what is considered to be the most likely scenario whereby the Ground
and First Floors are occupied by showrooms of circa 1,000 sq ft each (93 sq m)
average. This results in a likely total number of showrooms of circa 1,200.
2.44 It is possible that individual showrooms could be larger than the envisaged typical
size.
Peel ITC function and occupier benefits
2.45 The Peel ITC would serve as a trading Gateway to the UK and Europe enabling
new and innovative products to be showcased and sold to the trade, thus exposing
emerging countries to previously closed or difficult to access markets through
opening up of new trade links.
2.46 The Peel ITC will provide a unique opportunity for manufacturers of overseas
goods to directly target buyers in the UK, Ireland and Europe, thereby gaining
direct access to some of the most lucrative wholesale and retail markets in the
world as opposed to more traditional methods.
2.47 By trade customers being able to see and touch goods, they will have instant
recognition of product quality which will lead to brand awareness and sales growth.
Brands showcased within the Peel ITC will over time gain credibility and popularity
and become associated with quality, reliability and competitive prices throughout
European markets.
2.48 Through the Peel ITC, UK and European buyers will have the convenience and
opportunity to place orders directly with manufacturers and have goods delivered
either to the Peel ITC or their final destination.
2.49 To summarise, the Peel ITC will function by allowing occupiers to:
Sell their products directly to UK and European wholesale markets.
Market their products as quality brands to UK and European wholesale
markets;
Receive orders for goods from trade customers and place the orders with
their international suppliers;
Manage the arrival of goods at the Peel ITC and the subsequent
collection or distribution of ordered goods from the Peel ITC (or an
associated storage and distribution facility);
11
Re-package or re-brand products to target Western markets and tastes;
Hire a central exhibition space to promote their goods, and serviced office
space and conference facilities; and
Benefit from in-house security, cafes, restaurants and other facilities.
2.50 For lightweight products and goods, some additional storage space may be
available for occupiers to rent within the Peel ITC thus reducing lead times for
orders. As well as showrooms for display, sales and storage, the Peel ITC may
provide facilities for traders to repackage or re-label goods to accord with western
markets, language and or brand requirements.
2.51 There may also be facilities within the Peel ITC to re-assemble goods from
imported parts. This may be provided for within the Peel ITC, or at a remote
manufacturing and assembly complex. This can add economic value by reducing
the cost and/or increasing the quality of component parts and also allow products
to display a „Made in England‟ badge thus enhancing the perceived quality and
competitiveness of the product in the region and beyond.
2.52 The Peel ITC will also offer the hire of exhibition space throughout the year, for
occupiers or groups of occupiers to market their product sector throughout the UK
and Europe. The Peel ITC may also include a research and innovation element,
whereby global trading partners can exchange information and ideas with UK and
European markets.
2.53 The Peel Group owns a 23.2% share of Capital Shopping Centres plc. (CSC). This
is a strategic partnership with the leading UK shopping centre owner. The Trafford
Centre, which is Peel‟s headquarters and the most successful shopping and leisure
centre in the UK, is now part of CSC‟s 13 shopping centre assets, giving Peel
significantly greater interests and capability in the retail property market. These
include: the Arndale Centre, Manchester; Lakeside, Thurrock; Metrocentre,
Gateshead; Eldon Square, Newcastle; Braehead, Glasgow; and The Mall at Cribbs
Causeway, Bristol.
2.54 The Peel Group therefore has access to CSC‟s extended network of retailers and
wholesale buyers throughout the UK which we will introduce to occupiers of the
Peel ITC giving them immediate access to an existing source of wholesale
purchasers.
12
Project Delivery
2.55 The Outline Application is for four buildings which are likely to be built in four
phases, potentially reducing to three phases if one phase included two of the
buildings together. The total scheme is to be delivered over an anticipated 10 year
period.
2.56 For the first phase building, it is expected that delivery will commence in 2012. An
allowance of 12 months in the project delivery timeframe has been made to take
account of pre-construction activity (this provides time to address procurement,
legal and funding issues). The total construction period for the first phase is 30
months including an 18 month land remediation phase. The length of the
construction timeframe reflects the need to undertake land remediation (for which a
separate ERDF funding application is well advanced) and ensure a full fit out of the
building to tenants.
2.57 Phase one is also the subject of an application for Regional Growth Fund monies
which it is hoped will be confirmed as successful during the course of the Outline
Application. Phase 1 will act as an important catalyst to the development of later
phases of the ITC, the delivery of which are reliant on the timely delivery of Phase
1.
2.58 The flexibility provided to allow for all, some or none of the western part of the site
(Buildings 3 and 4) is a response to:
The ITC being a new and untried, untested market concept in the UK and
hence a degree of uncertainty the it would require the full site as opposed
to the eastern part of the site (Buildings 1 and 2);
The need for land for port decanting from East Float, which could be
potentially suitable on the western part of the site, as well as elsewhere
within West Float and the wider port estate.
2.59 At this stage of the process, the manner in which the Proposed Development will
occur cannot be determined with any precision. Delivery will be shaped by market
factors, development viability, commercial occupier requirements,
relocation/decant costs and logistics/practicalities. For the purposes of the outline
planning application, it has been assumed that the phased delivery of West Float
will be spread out over the five broad phases.
2.60 Table 2 below sets out the indicative approach to phasing.
13
Table 2: Indicative Phasing
Timescale Action
Sept 2011 to Sept 2012 Site Enabling and Remediation
Sept 2012 to May 2013 Construction of Building 1
2015 Construction of Building 2
2016/17 Further Site Enabling & Remediation
2017 Construction of Building 3
2019 Construction of Building 4
2.61 It has been assumed that some elements of the scheme will be completed by 2015
and this has been assumed to be the „opening year‟ of the Proposed Development
for the Environmental Impact Assessment and Transport Assessment. It has also
been assumed that the development will be complete and fully operational by
2020.
14
3. Policy Rationale and Strategic Fit
3.1 The full range of planning policies, including the development plan, national policy
and established/emerging local policy, are addressed within the Planning
Statement. This section of the Economic Regeneration Statement sets out the key
socio-economic policy messages as reflected in documentation across different
spatial levels.
3.2 Specifically, it draws on analysis and evidence gathered locally by the Council and
Peel in respect of the challenges facing inner Wirral. The ITC is then considered,
alongside the wider Wirral Waters proposals, in terms of how it can help address
some of those challenges.
National and international trade and investment
3.3 The Government recently published a strategy paper entitled “Trade and
Investment for Growth” (BIS, February 2011). The key messages of this document
were then translated into the “Plan for Growth” of March 2011.
3.4 The BIS paper sets out the Government‟s clear commitment to promoting
international trade and investment and the importance of this to both the UK and
the wider global economy.
3.5 The following priorities of the paper are particularly relevant to the Peel ITC:
Affirming the case for and benefits of open markets. The Peel ITC will be
both a product of the open market and an import cog within its operation;
Harnessing opportunities for trade and investment, including within
the EU, with the US and crucially with emerging economies such as
China, India, South Korea and Brazil; and
Creating a domestic environment that supports trade and
investment, the ITC being very much capable of contributing positively to
this environment.
The inward investment issues associated with the Peel ITC are explored
further in section 5 below, but it is clear that the basic concept of the
project are extremely well aligned with the priority that the Government is
giving to trade and investment.
15
Local challenges
Introduction
3.6 Efforts to strengthen the Liverpool City Region‟s economy (LCR) have significantly
improved the area‟s economic performance over recent years; a high rate of GVA
growth has enabled LCR to start to close the gap with national performance. The
21% growth in GVA between 2003 and 2008 far outstripped the national rate (3%)
but some major challenges remain. GVA per resident still lags behind the national
average (by almost £5,000 per resident) and the LCR growth strategy highlights
some specific locations where socio-economic challenges are particularly
concentrated. Wirral is frequently identified as one of the worst performing
authorities in LCR and the need to improve the area‟s economy performance is
frequently cited in the city region‟s strategic plans.
3.7 The Inner Wirral area (the main inner urban area within the district, which includes
Birkenhead town and the Wirral Waters / ITC site) is a particularly unsustainable
place; it has been losing population and economic activity for decades. The poor
performance of Wirral‟s economy (evidenced by large GVA, enterprise and
entrepreneurial gaps) coupled with high levels of multiple deprivation and
dependency on benefits makes inner Wirral one of the most extreme areas of
social and economic failure in the UK. The scale of the challenge facing inner
Wirral is immense, particularly in the context of reduced public funding and
challenging economic times. The need for major private sector investment could
not be more striking.
3.8 The need for economic investment is captured within the Wirral Investment
Strategy. The analysis set out below draws on that strategy and other local and
national policy objectives.
Local economic context and priorities
3.9 The impact of change within the maritime sector and associated decline in port
employment across Merseyside and elsewhere is well documented. Inner Wirral
has been particularly badly hit by a vast contraction in the area‟s once thriving ship
building industry and large scale loss of port and maritime employment. This shift
away from maritime employment continues to leave a mark on the economic
prospects of Wirral (and Merseyside more widely); shaping labour market
conditions and providing a distinctive legacy of industrial and commercial sites and
premises. While there has been some success in diversifying Wirral‟s employment
base, a number of long standing and complex barriers to improving the physical,
16
economic and social fabric of inner Wirral remain. The key socio economic
priorities for the area are set out below.
The need to increase GVA
3.10 Wirral is an economy that is not currently punching at its weight in terms of wealth
creation; GVA per head of £11,5001 is the lowest of the Merseyside authorities and
almost half the national average. This huge gap looks set to widen as Wirral‟s GVA
per head continues to grow more slowly than local and national comparators.
3.11 This low GVA per capita is a reflection of the borough‟s relatively low value
economic base but also the role it plays in the wider sub-regional labour market,
with Wirral acting as a net exporter of labour and not having a strong employment
base of its own.
The need to accelerate change in the nature of the business and employment
base
3.12 There is a marked over-representation of sectors which are undergoing long term
decline in Wirral; manufacturing remains a key source of employment accounting
for 10%2 of the Wirral total. Manufacturing employment is even more concentrated
in inner Wirral, where the sector accounts for 12% of jobs.
3.13 The sector‟s high Location Quotient (1.3) underlines Inner Wirral‟s relative over-
reliance on manufacturing compared to England as a whole. The area‟s
vulnerability to future manufacturing employment loss is exacerbated by the focus
of employment on a small number of mature sectors such as food, chemicals and
petrochemicals manufacture.
Boosting levels of enterprise and entrepreneurship
3.14 The strength and dynamism of Wirral‟s economy is further constrained by the
area‟s relatively weak enterprise culture. The rate of VAT registrations remains
markedly lower than national and regional comparators (an additional 314
registrations per year- a 40% increase - are required to catch up with the national
1
ONS Headline GVA per head at current basic prices (2008)
2
Business Register and Employment Survey (2009), ONS, Nomis (www.nomisweb.co.uk)
17
rate). This poor enterprise performance is a key factor in Wirral‟s low business
density.
3.15 The 20 active enterprises per 1,000 residents puts Wirral in the worst performing
10% of English districts and there has been little progress in closing this gap. In
1997 an additional 13 businesses per 1,000 residents were required to match the
national business density, this gap has endured over the past ten years and
currently stands at 14 businesses per 1,000 WAP.
3.16 The recent identification of Wirral Waters as part of the new Mersey Waters
Enterprise Zone provides a platform for the project to address some of area‟s
enterprise and entrepreneurial challenges. Financial incentives will shortly be in
place to encourage businesses to set up and locate in the area, which can not only
bring direct economic benefits but which can act to stimulate the wider delivery of
Wirral Waters.
Tackling concentrations of worklessness and deprivation
3.17 Although LCR has recently seen a remarkable resurgence, Inner Wirral remains a
long standing setting for some of the most deprived and isolated communities in
England. Wirral ranks within the 20% most deprived areas in England and
concentrations of extreme multiple deprivation persist within Inner Wirral. Almost a
third of Inner Wirral‟s SOAs are ranked within the most deprived 10% nationally
and 8% within the most deprived 1%.
3.18 The borough also has a much greater concentration of residents claiming out-of-
work benefits than nationally (19% of working age residents compared to 13%
across England3). Inner Wirral is the key focal point for this problem with more
than 75% of the borough‟s total claimants being resident in the area.
Attracting and retaining skilled residents
3.19 Although skill levels across Wirral as a whole compare favourably with regional and
national averages, there are discreet pockets where poor levels of skills and
qualifications impede routes to employment. These are primarily focused on Inner
Wirral, which suffers from an inability to attract and retain skilled residents due to a
combination of degraded physical fabric of the area and lack of access to
appropriate employment opportunities.
3
DWP Benefits May 2010.
18
3.20 Here, almost one in three (31%) residents have no qualifications compared to 29%
nationally. There is a striking lack of residents with higher level qualifications in
Inner Wirral - just 15% have a Level 4 or 5 qualification, five percentage points less
than nationally.
Over reliance on public sector employment
3.21 Wirral is within the most public sector reliant 6% of English Local Authorities with
more than one in four of Wirral‟s jobs (28%) being in the public sector. The high
reliance on public sector employment is evident (and potentially linked to) very low
business density and poor private sector job growth in the past five years (the 7%
contraction in private sector employment between 2003 and 2008 places Wirral in
worst performing 3% of local authorities in the county).
3.22 Performance against each of the indicators to other local authority districts across
the country is displayed in the table below. The Wirral economy is characterised by
very high levels of public sector dependency and out-of work benefit claimants and
by very low levels of private sector employment growth and business density.
3.23 The district should therefore be seen as one of the nation‟s local economies most
in need of investment in sustainable employment opportunities and least able to
gain a foothold in the transition to private sector-led growth.
Table 3: Wirral Performance against Location Metrics Vs All English Local
Authority Districts
Data % Rank Vs All
English Districts
Proportion of resident population aged 16-64 17.7% Top 8%
claiming out of work benefits, April-June 2010
Public sector employee job share, 2008 28.3% Top 6%
Private sector employee job growth, 2003-2008 -6.9% Bottom 3%
Number of active enterprises per 1,000 resident 27.2% Bottom 8%
population, 2009
Composite Rank N/A Bottom 1%
19
3.24 Calculations by Regeneris Consulting show that the projected decline in public
sector employment in Wirral will be almost 4,000 FTE over the period to 2020/21.
Public sector job losses have been projected on the basis of broad assumptions on
the likely level and timing of losses in public administration employment (25%),
health (20%) and education (15%) up to 2015. These have been checked against
and are roughly in-line with Wirral‟s share of the Office for Budgetary
Responsibility‟s national projection of 410,000 job losses up to 2016; OBR
(November 2010) „Economic and Fiscal Outlook‟. Thereafter the decline in public
sector employment experiences a levelling off.
Barriers to Investment
3.25 The Inner Wirral area is one of market failure and low demand, where private
investment is historically difficult to achieve. Allied to that, there is a very poor
quality of environment and infrastructure which restricts uses to the lowest value,
low density economic uses. Sites which are available for major economic use,
including the West Float site, are isolated from the main business locations within
the Wirral and the wider city region and lack a quality sense of place. The poor
image of parts of Inner Wirral embeds negative perceptions of the area.
3.26 Inner Wirral also lacks (or is perceived to lack) the necessary supply side offer
(quality sites and premises, attractive living and working environments and large
reserves of skilled labour) required to attract the levels of investment needed to
turn the area‟s economic fortunes around. Wirral has been unable to attract the
large, high profile, high value commercial developments that are critical to a
successful urban economy and has become trapped within a low-value equilibrium
in which lower earnings, reduced economic and employment opportunities and low
private investment further restrict prospects for economic growth and regeneration.
3.27 The costs of investment (construction) in this area are no less than they are
elsewhere; indeed a history legacy of contamination creates additional costs. Inner
Wirral‟s industrial history has left a legacy of sites and premises that are no longer
suitable to the economic needs of the borough. At present, the sites and premises
offer in this part of the Wirral reflects the area‟s industrial heritage. There is very
little commercial office space and that which is available is low grade.
3.28 Investment by the private sector in this area requires a significant element of risk to
be taken, particularly where it involves a new and unique concept to the UK.
Achieving a return on the ITC investment is a challenge, as attractive terms and
rents need to be provided to occupiers, particularly in the early years whilst the
project establishes itself. The ability of the private sector to secure funding and
20
finance to invest in projects has been reduced as a result of particularly challenging
economic times. It is clear that despite strong economic growth over the last
decade, the market has not been able to deliver substantial economic growth in
Inner Wirral.
3.29 In light of the above, the recent confirmation of Enterprise Zone status for the
Wirral Waters area is therefore most welcome and will assist in addressing some of
these barriers.
Local contextual overview
3.30 Table 4 below, prepared by Regeneris Consulting in support of the Regional
Growth Fund application for the ITC, summarises the key economic indicators for
the area.
Table 4: Overview of Socio-Economic Indicators (Regeneris Consulting)
3.31 The graph below shows Wirral‟s position nationally based on public sector
dependency (x axis) and on recent growth in the private sector employee growth (y
axis). The position on each axis is based on the district‟s relative position
compared to all other English districts. It clearly illustrates that Wirral scores
amongst the very worst of all English districts on both of these particular indicators
of economic need and opportunity.
21
Figure 1: Wirral Public Sector Dependency and Private Sector Growth –
Performance Vs All English Local Authority Districts
100% Tower Hamlets Bolsover Blaby
Stratford-on-Avon Southwark Aylesbury Vale Hammersmith and Fulham
West Lancashire Barrow-in-Furness
90% Torridge
Harborough Rutland Isles of Scilly
Rother Broxtowe
Ashfield
Wealden Peterborough Salford South Tyneside
Dartford
80% Greenwich
South Bucks Mendip Fareham
Wychavon Newark and Sherwood
Cotswold Plymouth
Private Sector Employment Growth (% Rank)
Oxford
70% Richmond upon Thames Lincoln
Amber Valley Bedford
Waverley Merton
Kingston upon Thames Derby
Elmbridge North Tyneside
60% Selby Leeds
Cheshire East Castle Point Ipswich Liverpool
Harrogate Cornwall
Erewash Sandwell Sunderland
North East Lincolnshire
Chesterfield
50% Test Valley
Braintree Gateshead
South Ribble Chorley Northumberland
Newcastle-under-Lyme Rossendale Darlington
Coventry Gravesham
Mid Sussex Preston
40%
Windsor and Maidenhead Allerdale Bassetlaw Manchester
Tunbridge Wells Adur
Carlisle Blackpool
Hart South Derbyshire Calderdale Worcester
30% Rochdale Hastings
City of London Trafford Arun Surrey Heath
Wyre Forest
Fenland Bromley Huntingdonshire
Broxbourne Wigan
Norwich Bristol, City of Enfield Newham
20% Kensington and Chelsea
East Cambridgeshire Dover
Dacorum Luton Birmingham
Stevenage
Bolton Sheffield
Spelthorne Rochford Nottingham
10% Hertsmere Bradford
Croydon
Crawley Watford Walsall
Stoke-on-Trent
North Hertfordshire Cheltenham Pendle
Redcar and Cleveland Barnsley
Wirral
0% Tamworth
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Public Sector Dependency (% Rank)
3.32 The ITC provides a major opportunity to create sustainable private sector jobs for
Wirral, helping to move it away from its dependency on a public sector vulnerable
to cuts in government expenditure to private sector growth.
3.33 There is also a strong equity rationale. Inner Wirral is currently an „unsustainable‟
place. It has been losing both population and economic activity for many decades.
In social terms there are high levels of multiple deprivation and a major
dependency on welfare and benefits, with some of the North West‟s most deprived
communities being adjacent to the proposed development site.
3.34 In economic terms there is a major GVA gap, an enterprise and entrepreneurial
gap, a low business base and density and a poor investment profile. Although
other parts of the North West and Merseyside have been regenerated and seen
major public and private investment in recent years, such activity has largely not
occurred in inner Wirral. This combination of factors makes inner Wirral one of the
most extreme areas of social and economic failure in the UK.
22
Wirral Waters
Catalyst to transformational private sector investment
3.35 The economic context of Inner Wirral outlined above represents an immense
challenge. The complexity and long standing nature of the problems underline the
need for transformational private sector led change, particularly in the context of
reduced public funding and challenging economic times.
3.36 The ITC is part of a much wider masterplan for the redevelopment of Inner Wirral,
focused around the Wirral Waters site. Wirral Waters is one half of Peel Waters;
two complimentary and balanced waterside development projects on either side of
the River Mersey. It is a key anchor as part of the wider project, led by Peel and
public sector partners in the North West, for the development of the „Atlantic
Gateway‟ concept. The Atlantic Gateway focuses on the Liverpool-Manchester
corridor as a key location for international investment and job creation among other
aims.
3.37 The site of the ITC within West Float, immediately adjoins the East Float mixed-use
regeneration proposals, centred upon an area called SkyCity, with a series of
surrounding quarters and neighbourhoods. Taken together they make up a diverse
city waterfront for Wirral as the key focus for attracting economic activity, housing
and leisure uses.
Figure 2: Wirral Waters Neighbourhoods (Source: Peel)
23
3.38 The starting point for Wirral Waters was the launch of the „Initial Vision‟ by Peel in
October 2006. The launch set out the scale of Peel‟s ambition through concept
designs and images focusing upon the East Float and Bidston Dock estates. The
overwhelming, positive support for the proposed scale of investment and
transformation, ranging from local communities to regional stakeholders,
encouraged Peel to progress the Wirral Waters proposals further.
3.39 Consequently Peel has committed significant levels of its resources to progress
Wirral Waters. With significant engagement with Wirral Council and other
stakeholders, Peel has taken forward the Wirral Waters proposals in a partnership
approach. Peel has progressed the scheme through a Strategic Regeneration
Framework (SRF) process, (endorsed by CABE), with identifiable workstages. The
partnership approach has also ensured that emerging ideas and proposals have
responded to local regeneration needs, the sustainable communities agenda, and
projects and programmes being brought forward by Wirral Council and their
partners. The Executive and Working Groups continue to lead the strategic
direction and delivery of Wirral Waters.
Figure 3: Wirral Waters SRF Process & Partnership Working (Source: Peel)
24
3.40 Ongoing consultation with local stakeholders alongside comprehensive analysis of
the socio economic challenges facing Inner Wirral has led to the development of a
shared vision for the long term future of the area which directly addresses the
challenges it faces.
3.41 The vision for Wirral Waters seeks to create a new city waterfront focusing on
transformational change of the Birkenhead and Wallasey docks. It builds on many
aspects of the sustainable communities agenda and key goals and aspirations
include;
Creating an internationally recognised waterfront location;
Creating a dynamic, prosperous Inner Wirral at the heart of LCR;
Growing markets and attracting inward investment to the area;
Enabling local communities to share in improved performance;
Securing the area‟s long term success.
3.42 The Wirral Waters strategy is consistent with and a key part of the Liverpool City
Region economic development strategy. It will play a major role in delivering this
overall city region strategy. The long term plans for Wirral Waters are unique in
their scale of opportunity to bring about the critical mass of regeneration activity
required to catalyse a transformational shift in perceptions of Inner Wirral and
enable the area to attract new residents, employment sectors and visitors. As such
it is endorsed by key stakeholders in the public and private sectors.
3.43 Wirral Waters development will strengthen the economic performance of Inner
Wirral by:
Improving the physical fabric of the area: Redeveloping large and
currently vacant sites will be an important step in halting the decline in the
physical environment and introduce new uses capable of supporting
existing and emerging regeneration drivers.
Realigning Inner Wirral’s sites and premises offer: The Wirral Waters
proposals will deliver the a balanced portfolio of high quality residential,
commercial and leisure floorspace to strengthen the area‟s capability to
support higher value employment activities and attract and retain skilled
workers.
25
Contributing to changed perceptions: Wirral Waters has a key
contribution to make in terms of changing widely held perceptions about
inner Wirral and will act as a beacon for regeneration in the area.
Providing a catalyst for private sector investment: The use of
strategic development of key sites within the Wirral Waters area to
catalyse private sector investment and development of other parts of the
site and in neighbouring communities is central to the Wirral Waters SRF.
Increasing Investor confidence: The long term strategic vision for the
Wirral Waters site will give potential inward investors confidence and
reassurance that (i) a long term vision for the area is in place (ii)
appropriate planning permissions and delivery vehicles are present and
that (iii) there is flexibility to respond and adapt to individual investors
needs while remaining part of a bigger picture for an area.
3.44 The delivery of the Wirral Waters proposals will require sustained actions and
investments beginning immediately and continuing over a 30 year period. Whilst
delivery will be a challenge, the project has a number of strategic advantages:
Full commitment of Wirral MBC to the project. Wirral MBC has been
committed to the Wirral Waters development plans as a whole since the
launch of the Vision for the area in 2006 and has been fully involved with
the process of developing the master plan for the area.
A private sector led development. The private sector is taking a lead in
bringing forward plans for the Hydraulic Tower, Peel holdings is the most
significant private sector investment in Inner Wirral and has a strong track
record of delivering successful, high quality large scale regeneration
schemes.
Commitment from a broad range of other partners. The proposals
have strong support from key public sector agencies in Wirral and across
Merseyside. Partners include: The Mersey Partnership, Merseytravel,
Groundwork Trust, Forestry Commission and National Museums
Liverpool.
Strong buy-in from the local community. Extensive consultation with
the community and voluntary sector and residents of East Wirral
undertaken throughout the development of the Wirral Waters Masterplan
has ensured real local buy in and support.
26
3.45 The wider development proposed will, over time, establish a city waterfront location
of national and international significance and profile. It will also make excellent use
of the dockland setting and waterfront location, ensuring that Wirral develops the
quality of place (confident and distinctive) that successful urban centres need in
order to prosper in the global economy, attracting mobile investment, businesses
and residents.
3.46 While the development of Wirral Waters provides an opportunity to attract major
inward investment projects from the outset, its ability to compete more strongly for
these projects will grow over time as it becomes established as a higher profile
office location (supported by retail, leisure and residential development).
East Float
3.47 The East Float scheme at Wirral Waters was formally given planning approval,
following Wirral Council‟s Planning Committee unanimously approving the
proposals and the non-intervention of the Secretary of State. Peel continues to be
in dialogue with both local and central Government regarding the delivery of Wirral
Waters. While Peel are committed to Wirral Waters, the development requires the
on-going commitment from public sector partners to ensure that the scheme can
make a transformational changes to Wirral and the Liverpool City Region. The
recent confirmation of Enterprise Zone status demonstrates that Wirral Waters is
recognised by public sector decision makers locally and nationally as a key
opportunity for economic investment and job creation.
3.48 At the local scale, Peel have worked closely with Wirral Council in developing
employability and training interventions which will enable the workless residents in
these neighbouring communities to access the jobs which are created.
3.49 The socio-economic challenges and opportunities facing the Wirral as a whole and
Inner Wirral area are also set out in the Strategic Regeneration Framework and the
Economic Impact Assessment for the East Float scheme.
3.50 Over the next 30-40 years the Wirral Waters East Float proposals will provide:
422,757 m² of new office floor space;
13,521 new residential units of mixed typologies;
100,000 m² of new education, community, cultural and leisure facilities;
38,000 m² of conference and hotel development;
27
60,000 m² of retail development.
3.51 The East Float development will provide over 20,000 jobs and new homes for over
20,000 people. These jobs will be vital in securing a transition from public to private
sector employment.
Figure 4: Wirral Waters : East Float working masterplan CGI (Source: Peel)
Early wins and the ITC
3.52 The most immediate projects provide opportunities to demonstrate Peel‟s long term
commitment to the area and are being brought forwards as “early wins”. The ITC
can be regarded as a major early win for Wirral Waters if it can be delivered. It will
assist the wider vision by contributing to all of the aforementioned objectives, and
by delivering the direct, indirect and catalytic benefits outlined elsewhere in this
application. The ITC can add a further private sector employment, thereby
replacing an even greater proportion of the public sector job losses with short term
private sector job creation.
3.53 It is anticipated that through its implementation, the ITC will act as a major catalyst
to establishing business, funding and occupier confidence in the area, stimulating
further development within East Float and in surrounding neighbourhoods. The
development of this site will raise its profile and attractiveness to UK and
international investors, occupiers and future residents and employees, by
demonstrating the potential of what can be achieved through on-going investment
28
and commitment, by both the private and public sectors, to the proposals for Wirral
Waters.
3.54 It has always been recognised that the West Float area, the site of the ITC,
represents an opportunity to enhance port related and employment generating
activity by attracting higher value economic activity which will contribute to the
wider vision. The ITC is consistent with this approach but can deliver significant
additional economic advantages.
3.55 The wider approach to skills and employability for Wirral Waters, ensuring that
local people can benefit from economic opportunities, can be put into action
through the ITC. This is explored further in Section 6 below.
Counterfactual Scenario
3.56 The proposed development represents the scale and critical mass anticipated as
necessary to attract international markets. The minimum anticipated scale would
be Buildings 1 and 2 with the concept considered likely to be at an optimum using
Buildings 1-4. It may indeed ultimately be that the ITC becomes larger than the
development that this planning application seeks permission for, however such
further phases are not considered as part of this Statement in terms of their
potential larger economic impacts.
3.57 Below the aforementioned scale, the investment would not attract sufficient market
interest and occupiers to be financially viable. Market occupiers require the
certainty that they are part of a facility of national/international scale and profile,
which, in Peel‟s view, requires several hundred traders coalescing as a minimum.
Research undertaken into the only comparable market facility in Europe, the GD
Poland Trade Centre, shows that its first phase was circa 400,000 sq ft, housing
circa 400 traders.
3.58 If the development is not delivered in a timely manner, it is likely that the
opportunity would be lost to another area, potentially outside of the UK, at an
alternative strategically accessible port location in Western Europe (e.g.
Rotterdam, Le Havre etc).
3.59 The occupation of the ITC is envisaged to be initially led by Chinese businesses
who currently have no allegiance to the UK. Timing is therefore critical, given the
links Peel has made with China, for the project to happen in the UK and for it to
happen in the relative short term.
29
3.60 The fallback scenario is that a considerably less intensive economic use would be
brought forward on the site. This would also most likely be over a much longer time
period. As a result, the site will generate less private sector employment in the
local area.
3.61 Employment which does occur through a fallback scenario would have a
significantly lower additional economic impact. This is because the ITC is a unique
concept, for the UK, bringing employment that would not otherwise arise locally (or
indeed potentially nationally) For example, the relocation of port warehousing
tenants from East Float or the creation of an industrial use could feasibly be
located at a number of sites within Wirral and the wider city region just as easily as
at West Float.
3.62 Peel‟s commitment to other aspects of the Wirral Waters project, including the
major proposals for mixed-use development at East Float, is not directly affected
by the ITC. The ability to relocate tenants to part of the West Float site is being
safeguarded by the application.
3.63 Peel will continue to seek to bring forward the Wirral Waters proposals regardless
of the ITC. However, if the ITC is not delivered, the potentially indirect/induced and
catalytic benefits that would arise for Wirral Waters as a result of the ITC going
ahead would not be realised. As such, the wider development of the area would
still proceed but potentially at a slower pace and scale, without the benefits that the
proposed investment (phase one) and its follow-on phases would bring.
Summary
3.64 The economic policy context reflects the prevailing challenges in the area. Policy at
all levels – from the national „Plan for Growth‟ to the Wirral Investment Strategy –
identifies a set of common themes to be addressed.
3.65 Arising from an historic legacy of deindustrialisation, exacerbated by more recent
economic challenges, the inner Wirral area is faced with an extraordinary economic
challenge. It must address a major GVA gap nationally and locally by increasing
private sector business activity. The nature of the business and employment base
locally needs to be strengthened and diversified. Levels of enterprise and
entrepreneurial activity need to be increased. Correspondingly, the high levels of
worklessness and deprivation that accompany the area‟s economic weakness
need to be tackled.
3.66 There is a pressing need for the area to provide the range and type of employment
opportunities that will attract and retain skilled residents. There is also a need for
30
the local economy to move away from over-reliance of public sector employment,
in the context of major reductions to public spending budgets.
3.67 In response to these challenges, the ITC project can make a significant
contribution. It can bring significant levels of private sector employment that would
not otherwise arise, at the same time that employment in the public sector is
forecast to decrease. In doing so, it can help attract/retain skilled residents and
provide employment opportunities for communities with high levels of worklessness
and deprivation.
3.68 The project can also bring wider benefits in terms of enhancing business
competitiveness through access to goods, and can help stimulate investment in
regeneration projects locally. It will also increase demand for business and visitor
services in the area.
3.69 Overall the ITC can bring significant social and economic solutions to an area with
major challenges. Alongside the wider Wirral Waters proposals, which are
envisaged over a 30+ year period, the ITC can bring short-medium term socio-
economic benefits that will help create a more sustainable future for the local area,
whilst at the same time bringing significant wider economic benefits to the City
Region and the UK as a whole.
31
4. Employment Impacts
4.1 The proposed ITC development will create a range of economic impacts. The
employment impacts of the proposal are addressed in this section, with wider
economic impacts dealt with in section 5.
4.2 The approach to assessing employment impacts reflects the outline nature of the
proposals. It distinguishes between the construction phase and the end
user/occupier phase, and sets out the potential impacts for each of the four
proposed buildings, both on their own and cumulatively. This includes quantifiable
employment outputs.
4.3 Section 6 below sets out a set of principles for ensuring that the economic and
employment impacts arising from the proposed development bring local benefits.
This includes skills/training opportunities to maximise access to employment for
local people and the associated responsibilities for the developer and
contractors/operators.
Construction employment
4.4 Indicative cost appraisals by Walker Sime estimate the construction cost to be
£680 per square metre of Gross Internal Area. This includes allowances for:
Building superstructure and infrastructure
Internal fit out
Mechanical and Engineering works
External works including access, parking and landscaping
4.5 The above figure can be considered conservative as they exclude the costs of
remediation which are likely to be significant on this site. An application for financial
assistance has been made in respect of Parcels 1 and 2.
4.6 Using the maximum floorspace figures, estimated building costs for the purposes
of calculating construction employment are set out below. Turnover per Full Time
Equivalent (FTE) construction job is estimated to be £108,517. Dividing the build
cost by the construction turnover generates direct employment years, as set out in
Table 5 below.
32
Table 5: Construction Employment calculation
Building Square Metres Construction Cost Direct Employment
(GIA) Years
1 62,100 £42,228,000 389
2 49,680 £33,782,400 311
3 58,260 £39,616,800 366
4 58,260 £39,616,800 365
Total 228,300 £155,244,000 1,431
4.7 As each phase involves the development of a single building with a construction
period of around 1 year, it is the number of construction workers can be considered
around this level for four 1 year periods.
4.8 It is possible that within the parameters, buildings of lower floorspace are
constructed and buildings with a lower build cost are constructed (for B2/B8 uses).
It is therefore appropriate to undertake a sensitivity test. Allowing a 50% deviation
of floorspace from the maximum (i.e. half of the maximum) results in the overall
direct construction employment set out in Table 6 below.
Table 6: Construction Employment sensitivity test
Building Direct Employment Years Direct Employment Years (50%
(maximum floorspace) floorspace reduction)
1 389 195
2 311 156
3 366 183
33
4 365 182
Total 1,431 716
4.9 Construction employment is classed as a skilled trade at NVQ level 3 or below.
The average 2010 salary in this trade was £23,800. The total income generated is
set out below in Table 7 for the four individual construction years.
Table 7: Construction Income
Description NVQ 2010 Total Total Total Total
level Salary income income income income
2013 (£m) 2015 (£m) 2018 (£m) 2020 (£m)
Construction 3 and 23,800 9.26 7.4 8.7 8.7
(Skilled below
Trade)
4.10 The total cumulative construction income is £34 million.
4.11 Construction workers at the ITC will themselves generate employment in two ways:
Supply Chain Impacts: the goods and services purchased by construction
workers will support additional employment. The strength of these supply
chain effects is dependent on the ability to source construction labour
locally, a key aim of Peel and the Council as set out in Section 6;
Induced Impacts: the multiplier effects that arise as spending by those
directly and indirectly employed at the scheme circulates through the
economy.
4.12 Indirect employment generation has been calculated by applying the constriction
employment to the following multiplier effects across three geographical areas:
Wirral: 10%
Merseyside: 33%
North West 50%.
34
4.13 Table 8 below sets out the indirect and induced employment arising from
construction activity.
Table 8: Indirect and Induced Employment from Construction
Building / Direct Indirect/ Indirect/ Indirect/
Construction Employment Induced – Induced – Induced –
Year Years Wirral Merseyside North West
(maximum
floorspace)
1 (2013) 389 39 128 195
2 (2015) 311 31 103 156
3 (2018) 366 37 121 183
4 (2020) 365 37 120 183
Cumulative - 4 1,431 143 472 716
construction
years
4.14 The total cumulative direct and indirect employment arising from the proposals is
up to around 2,147. These jobs will be short term and will arise in four waves of
around one year each.
4.15 If Buildings 3 and 4 were (all or in part) constructed for B2/B8 use, the building cost
per square metre would most likely be lower and hence the number of employees
and associated income.
Operational Employment
Assumptions and Methodology
4.16 The standard means of calculating employment figures for the operational phase of
development is to use national densities set out in guidance by the Homes and
Communities Agency (2010 „Employment Densities Guide‟ 2nd Edition). The
35
UKITC is a unique sui generis use that does not lend itself to the HCA Employment
Densities guidance which are based on standard Use Classes.
4.17 As part of its research into the market concept, Peel has visited the GD Poland
Trade Centre, to understand employment density, skills level and where
employees were recruited from. The findings of this research are that:
Workers from both the host nation and tenant nation (predominantly
Chinese) work in the trade showrooms;
Most occupiers hire workers from the host nation, averaging roughly 2
FTEs per c.1,000 sq ft showroom. These workers are critical to the
successful sale and dispatch of goods/products;
Most showrooms employ one or two full or part time staff from the tenant
nation, averaging 1 FTE per c.1,000 sq ft showroom, who are responsible
for liaising with overseas suppliers;
There is a mix of different skill requirements, including sales,
tradespeople, operatives and administration;
In addition to trade showroom staff, the centre employs site managers,
security, delivery staff etc;
4.18 The above would suggest that the GD Poland employment density is 1 worker
(assumed to be FTE) per 32 square metres of Net Internal Area (showroom
space). An employment density based on 3 workers per showroom, assuming
1,200 showrooms, has been used as a basis for the environmental and transport
assessment, thus ensuring a robust worst case approach.
4.19 From an employment generation perspective, whilst GD Poland is a trade facility, it
exhibits some characteristics more akin to a retail use than the ITC. GD Poland is
less regulated than the ITC would be and therefore attracts an element of non
trade retail activity, which would not be possible at the ITC.
4.20 It is considered that the ITC could therefore have a lower employment density than
GD Poland, reflecting a purer trade use, with the equivalent employment for a
1,000 sq ft showroom being 1 sales staff, 0.5 skilled trade and 0.5 operative. This
would create a total of 2 staff per 1,000 sq ft showroom.
4.21 In considering the appropriateness of the above, Peel has also tested the identified
numbers of employees against the HCA Guide. The comparison is:
ITC : 1:48 sq m
36
GD Poland : 1:32 sq m
B2 industrial : 1:36 sq m (source HCA)
B1c light industry : 1:47 sq m (source HCA)
Warehousing (including retail warehousing) :1:70-90 sq m (source HCA)
Retail uses : typically less than 1:20 sq m (source HCA)
4.22 The ITC‟s employment density would therefore appear to be approximately halfway
between the HCA densities for retail uses and warehousing uses. It is akin to a
light industrial use. As a trade facility this would seem appropriate.
4.23 The ITC will have a relatively low net to gross ratio as a result of corridor space
and associated storage, exhibition, assembly, service and other space. The
various forms of employment which may occur within these spaces are not counted
as additional but are reflected in the ITC‟s allowance for 2 FTEs per 1,000 sq ft Net
(equivalent to 1:48 sq m).
4.24 An allowance should also be made for staff directly employed by the management
of the UKITC (managers, admin, security, port, cleaners etc.). It is anticipated that
around 75 such staff would be required for Building 1, with a further 25 for each of
the three additional Buildings, creating a total of 150 FTE.
4.25 It is assumed for the purposes of calculating direct operational employment that
there are:
1,200 showrooms in total, comprised of:
316 for Building 1
284 for Building 2
300 each for Buildings 3 and 4
4.26 As explained within the PPS4 assessment, it is possible that the number of
showrooms may be significantly lower than this. In considering employment
density, the actual number of showrooms is not the most important factor. It is the
type of trade activity and the high level of service that tenants provide their trade
customers with that determines the number of employees.
4.27 Nonetheless, in view of the higher density used for the transport and environmental
assessment, together with the potential for reduced floorspace and lower density
trade activity to actually reduce the density, it is appropriate to undertake a
37
sensitivity test assuming lower (50% reduction) and higher (50%) increase
densities. Given the uniqueness of the concept to the UK, it is appropriate to allow
for a significant range.
4.28 The range would also allow for potential B2/B8 uses within Buildings 3 and 4,
hence providing the sensitivity test for this potential use. Where port decant is
involved, a significant proportion of the employment is of course displaced from
elsewhere rather than additional in itself, although it does indirectly facilitate the
creation of more employment at East Float, as set out in Section 3 above. The
ability to move to new, modern premises also often has efficiency benefits for
businesses who may then expand and create more employment.
4.29 The calculations also make an allowance for building occupancy, assuming 90%
occupancy of showrooms after completion (a 6 month take-up period is allowed for
from completion) thus providing a small allowance for tenant turnover and vacancy.
4.30 This provides lower, middle and upper projections. For simplicity the total figures
(after factoring in 90% occupancy and management staff) are decreased or
increased by 50%.
4.31 In terms of phasing, delivery will be shaped by market factors, development
viability, commercial occupier requirements, relocation/decant costs and
logistics/practicalities. For the purposes of assessment, it has been assumed that
the phased delivery of West Float will phased as follows:
September 2012 to May 2013 – Construction of Building 1 (90% occupied
by end of 2013);
2014/15 – Construction of Building 2 (90% occupied by end of 2015);
2017 – Construction of Building 3 (90% occupied by end of 2018); and
2019 – Construction of Building 4 (90% occupied by end of 2020).
Assessment
4.32 Table 9 below sets out the operational employment using the assumptions outlined
above, and is calculated cumulatively across phases using the lower, middle and
upper ranges.
38
Table 10: Cumulative Operational Employment – Lower, Middle and Upper
Lower (50% reduction) Middle Upper (50% increase)
FTE Cumulative FTE Cumulative FTE Cumulative
created FTE created FTE created FTE
per annum per per
Year annum annum
2013 322 322 644 644 966 966
2014 0 322 0 644 0 966
2015 268 590 536 1,180 804 1,770
2016 0 590 0 1,180 0 1,770
2017 0 590 0 1,180 0 1,770
2018 283 873 565 1,745 848 2,618
2019 0 873 0 1,745 0 2,618
2020 282 1,155 565 2,310 847 3,465
4.33 The table shows that the ITC is likely to create 2,310 direct operational FTE jobs,
with a lower estimate at 1,155 and an upper estimate at 3,465. The upper estimate
has informed the Transport and Environmental Assessment process to ensure a
robust approach.
4.34 In addition to the number of direct operational FTE jobs created, it is also important
to consider the type of employment created and how this can be aligned with skills
in the local community.
4.35 The number of FTEs at different NVQ levels have been calculated using the middle
range, as set out in Table 11 below. The figures are non-cumulative.
39
Table 11: Middle Range Operational Employment by Skill Level (non-
cumulative)
Description NVQ % FTEs FTEs FTEs FTEs
level Operational
2013 2015 2018 2020
FTE
Professional 4/5 7.5 48 40 42 42
Skilled Trade 3 and 15 97 80 85 85
below
Process, 3 and 15 97 80 85 85
Plant and below
Machine
Operatives
Adminis- 3 and 30 193 161 170 170
trative and below
Secretarial
Elementary 3 and 7.5 48 40 42 42
below
Sales / 3 and 25 161 134 141 141
Customer below
Services
Total 100 644 536 565 565
4.36 The analysis can be also be considered on a cumulative basis, as shown below in
Table 12.
40
Table 12: Middle Range Operational Employment by Skill Level (cumulative)
Description NVQ % FTEs FTEs FTEs FTEs
level Operational
2013-14 2015-17 2018-19 2020+
FTE
Professional 4/5 7.5 48 88 130 172
Skilled Trade 3 and 15 97 177 262 347
below
Process, 3 and 15 97 177 262 347
Plant and below
Machine
Operatives
Adminis- 3 and 30 193 354 524 694
trative and below
Secretarial
Elementary 3 and 7.5 48 88 130 172
below
Sales / 3 and 25 161 295 436 577
Customer below
Services
Total 100 644 1,180 1,745 2,310
4.37 The assessment shows that the ITC will create a large number of direct operational
permanent employment at skill level 3 and below, which is well matched with the
local area, alongside a lower number of higher skilled positions. Specifically, the
scheme could provide opportunity to the 16,300 Wirral residents that are currently
unemployed. There will be clear opportunities for existing unemployed people to
access these opportunities and where necessary to be trained and „upskilled‟.
4.38 The above calculations allow an assessment of total incomes arising from
operational employment, using 2010 salaries, as presented in Table 13 below.
41
Table 13: Total Income by Skills (Middle Range)
Description NVQ level 2010 Salary Total FTEs Total Income
(£m)
Professionals 4/5 37,800 172 6.5
Skilled Trade 3 and below 23,800 347 8.26
Process, Plant 3 and below 21,700 347 7.53
and Machine
Operatives
Administrative 3 and below 17,500 694 12.15
and Secretarial
Elementary 3 and below 12,600 172 2.17
Sales / 3 and below 11,200 577 6.46
Customer
Services
Total 2,310 43.07
4.39 Furthermore, using an average Gross Value Added (GVA) figures of £30,000 per
FTE, which is considered appropriate for the ITC, the total operational direct
employment of 2,310 FTE creates annual GVA of £69 million.
4.40 In terms of indirect and induced employment, businesses and employees at the
ITC will generate indirect employment creation in two ways:
Supply Chain Impacts: the goods and services purchased by businesses
located at the scheme will support additional employment. The strength
of these supply chain effects is dependent on the nature of uses and their
strength of economic linkages in the local or regional economy.
42
Induced Impacts: the multiplier effects that arise as spending by those
directly and indirectly employed at the scheme circulates through the
economy.
4.41 Indirect employment generation has been calculated by applying to the direct
employment figures to the following multiplier effects across three geographical
areas:
Wirral: 10%
Merseyside: 33%
North West 50%.
4.42 These multipliers are based on judgement in light of the following:
Experience of typical supply chains and personal expenditure effects;
Recognition that „finished‟ goods ordered at the UKITC, imported from
overseas, handled at and distributed from the UKITC, may have low
indirect impacts;
Recognition that „semi-finished‟ goods can bring potentially large indirect
impacts as they may provide local/regional businesses with goods that
were otherwise not available or affordable, which in turn allows a
manufacturing, assembly or other proceed to take place (which would not
otherwise have taken place).
The split between finished and semi-finished goods is not yet known and
will fluctuate over time in any event.
4.43 The indirect and direct FTE job creation is set out cumulative and using the middle
range in Table 14 below.
43
Table 14: Indirect and Direct FTE Creation (Cumulative Middle Range)
Direct Total
North West
FTEs (Direct
Merseyside (including
Year Wirral + NW)
(including Merseyside/
10% Wirral) Wirral)
33% 50%
2013 644 64 213 322 966
2014 644 64 213 322 966
2015 1,180 118 389 590 1,770
2016 1,180 118 389 590 1,770
2017 1,180 118 389 590 1,770
2018 1,745 175 576 873 2,618
2019 1,745 175 576 873 2,618
2020 2,310 231 762 1,155 3,465
4.44 The above total indirect employment will lead to additional income and GVA. As
the overall multiplier is 1.5 this would equate to £104 million total direct and indirect
GVA annually, once fully operational.
4.45 Induced employment and economic impacts for the purposes of the ITC is
considered on a non-quantitative basis in Section 5 below.
Displacement and Leakage
4.46 The ITC is a unique development that creates additional employment beyond that
which would otherwise be created in the local, sub-regional or regional area. It is
considered that there would be no displacement associated with it.
44
4.47 In respect of leakage from employment impacts, the ITC is a host facility for foreign
traders to sell to UK and Western European markets and will employ a number of
foreign workers alongside local workers. There is as such a likelihood that a
reasonably significant part of the income and GVA generated by employment will
leak out of the local area and the UK to overseas nations.
4.48 Based on the assumptions above, an allowance of 30% would seem reasonable,
as it has not been assumed that each showroom would attract two overseas
workers (as per the GD Poland example). Allowing for such leakage, the annual
GVA figure could reduce from £104m to £80m. The same number of employees
could however remain employed on site and would pay tax and create expenditure
on goods and services. It could be that a larger number of overseas workers
become employed than has been forecast, which would result in further additional
employment but a greater proportion of leakage (and an associated increase in
revenue/expenditure for the local/national economy).
Counterfactual Scenario
4.49 The fallback position for the site is continued part occupancy of the Mobil site
(Buildings 3 and 4) and nearly complete vacancy and dereliction of the Beaufort
Road site (Buildings 1 and 2). Whilst precise actual figures are not available,
existing employment on the site is considered to be minimal based on the extent of
occupied space and the type of operations ongoing. Most of the existing
employment is located on the Mobil site. The „do-nothing‟ scenario is therefore
considered to be a continuation of minimal employment.
4.50 It is however more likely that as a major brownfield site in a priority regeneration
area, the Beaufort Road site would at some point be brought forward for economic
development purposes. Prior to the ITC proposals, the site had been envisaged as
a receptor site for relocated tenants of East Float. As part of the ERDF application
on the Beaufort Road site, an analysis was undertaken of the potential employment
impacts arising from the creation in B1/B2/B8 uses. The employment impacts of
the „fallback‟ scheme for the Beaufort Road site, as presented in the ERDF
application, are presented in Table 15 below.
45
Table 15: Employment Impacts of Fallback Beaufort Road development
Gross jobs created/safeguarded 2,100
Less leakage 525
Gross local jobs 1,570
Less displacement 590
Net local jobs 980
Add multiplier 100
Total net jobs 1,080
4.51 The total 1,080 net jobs were anticipated to occur over the same assessment
period as the ITC, reflecting that it would take longer to bring the site forward
without the ITC. If the Beaufort Road site were redeveloped in this manner, the
Mobil site might be more likely to be redeveloped, but it is likely that this would be
predominantly for existing employment relocated from elsewhere.
4.52 Unlike the ITC, the fallback Beaufort Road scheme includes significant leakage
and displacement. This is because around half of the economic activity that would
take place would have occurred elsewhere locally or in the region. Indeed, this
could be a conservative allowance given that the site was previously identified as
being a receptor site for relocations from East Float. If the ITC were not being
proposed, many of these jobs would indeed be relocated from East Float but will
now need to be relocated elsewhere, with the ITC employment additional.
4.53 The total direct and indirect employment for the counterfactual scenario would
therefore be significantly below the levels of direct and indirect employment
possible with the ITC project, all of which is additional employment. In relation to
the possibility that parts of the ITC site (namely Buildings 3 and/or 4) may become
decant space for East Float, alongside an ITC operating from Buildings 1 and 2 or
Buildings 1, 2 and 3, the extent of additional net employment would therefore be
less than with the ITC occupying all four buildings.
4.54 It can therefore be concluded that the ITC proposal will bring significant additional
employment to the local area, significantly above what might otherwise be
achieved on the site.
4.55 The consideration of an alternative scenario should also take account of the other
and wider economic impacts of the ITC, in particular their ability to act as a catalyst
46
to the regeneration and growth of the local area and the wider economy. These
issues are explored more fully in Section 5 below.
Summary – creating private sector jobs growth
4.56 The ITC scheme is focussed on delivering private sector employment and wealth
creation as part of the proposed Wirral Waters regeneration initiative. The
investment will:
Directly support 2,310 FTE jobs in the private sector from 2020 onwards,
generating £69m annual GVA, with four incremental phases bringing a
staged increase over the next 10 years;
Stimulate indirect and induced employment within supply chains and
other indirect effect, and as a result of increased economic activity create
a total of 3,465 FTE jobs and £104m GVA annually;
Be additional economic activity beyond that which would otherwise occur
in the event the ITC is built across Buildings 1-4, with a reduction in the
proportion of additional economic activity if part of the site (Buildings 3
and/or 4) comprises B2/B8 uses relocated from elsewhere;
Provide 2,147 temporary jobs across four construction years;
Provide, through the presence of additional private sector employers,
enhanced training and upskilling opportunities to the local workforce, and
job opportunities for a declining public sector workforce;
Provide a range of employment opportunities spanning a breadth of
qualifications requirements, with the majority at or below NVQ Level 3
and so accessible to the majority of Wirral residents.
47
5. Other Economic Impacts
Introduction
5.1 Section 4 considers the direct, indirect and induced employment arising from the
construction and operational phases of the Peel ITC development. The ITC is likely
to have numerous other economic impacts that respond to policy challenges
identified in section 3. These impacts are considered qualitatively within this
section of the Economic Regeneration Statement.
International investment
A priority for political and business leaders
5.2 As a UK and Western European hub for international trading of goods, products
and materials, the Peel ITC can play a significant and nationally important role in
stimulating economic growth. The strengthening of existing, and opening up of new
trade links with emerging economies in Asia and elsewhere, represents a major
opportunity for the UK and in particular the Wirral and Liverpool City Region area.
5.3 International investment is a key economic priority recognised across Government.
Prime Minister David Cameron has stated that “International trade and investment
is absolutely crucial to Britain's economic growth” (source: BIS, 11 January 2011).
5.4 Major efforts by political and business leaders, including Peel, together with
Government departments and agencies (principally BIS and UKTI) are being made
to increase international investment in the UK, in particular with strong growth
economies that are set to play a greater role in global trade over coming decades.
Such efforts, as relevant to the ITC, include:
The UK Government‟s delegation to China in November 2010, which
Peel participated in;
Peel‟s lead sponsorship and involvement in the Shanghai Expo 2010
alongside partners in the Liverpool City Region, which built on existing
and created new relationships with Chinese businesses and government;
Follow up visits and meetings with potential investment partners in China;
Exchange visits to the UK with potential investment partners from China
and South Korea.
48
5.5 It is out of these activities that the Peel ITC has been formed as a development
concept for the UK, specifically through discussions between Peel and potential
investment partners from China.
5.6 The international scale and profile of the Peel ITC is its most crucial aspect. It must
be sufficiently large and high profile, with the associated economies of scale and
critical mass benefits, to be attractive to international investors and trade tenants.
The scale of the project is considered against prevailing national planning policy
(PPS4) in the Planning Statement.
Stimulating economic growth through the trade market
5.7 The direct economic implications of the Peel ITC itself for international investment
principally stem from the occupier benefits outlined in section 2 and the
employment impacts arising in section 4. These include both strengthening existing
and developing new trade routes and relationships with emerging economies.
5.8 Different trade businesses will use the Peel ITC in different ways, but
fundamentally the model will work by improving access to trade markets for the
manufacturers and producers of goods/materials, by providing a single, high
quality, accessible „shop window‟ to the UK / Western Europe market with a range
of attractive supporting facilities.
5.9 For UK and Western European businesses, use of the Peel ITC will reduce
business risks and costs, whilst increasing efficiencies and hence business returns
and rewards. The reduced cost of goods can be used to enhance business
competitiveness, with benefits to the business base and ultimately, through
competition and market forces, consumers in the wider economy. The ability for UK
manufacturing, processing and assembly to benefit from the Peel ITC is evident,
and is explored further below.
5.10 The extent to which the Peel ITC may directly influence national economic growth
and competitiveness cannot be quantified at this stage. It is however considered
that the Peel ITC can play an important role, nationally and internationally (as well
as locally) in the areas identified above, which will give it national importance within
the UK.
The importance of linked investments
5.11 The ITC can also provide the platform for much more significant international
investments. Major investment proposals in the area can be stimulated by the Peel
49
ITC investment. These include the Wirral Waters East Float proposals which are
located in close proximity to the proposed Peel ITC development. The twin
Liverpool Waters scheme are also likely to benefit, as are a number of other
projects in the wider City Region and beyond, including those captured within
Peel‟s Ocean Gateway concept and the Atlantic Gateway initiative. There is no
limit on the potential scale or sectoral focus of the investment opportunities arising
through the ITC. There are opportunities within commercial and residential
development, community infrastructure, transport projects and environmental
projects including major energy schemes.
5.12 Indeed, through Peel‟s discussions with potential investment partners, it is clear
that the prospect of being able to follow up the Peel ITC investment with further
linked investments over the long term in a broader portfolio of projects is central to
the attractiveness of the Wirral Waters West Float site (and indeed Peel as an
investment partner) to overseas investors.
5.13 Cumulatively, the scale of the Waters projects and the wider Ocean/Atlantic
Gateway provides the opportunity to create an international node for overseas
investment for decades to come. The ITC could therefore be a part catalyst to the
full and self-sustaining regeneration of not only the local area around the
Birkenhead Docks but also the wider City Region and beyond. In doing so, it will as
a result also play an important national role.
Catalyst to Wirral Waters
5.14 The development of the Peel ITC will be an important catalyst to the future
development of Wirral Waters. The wider and more significant economic growth of
the area can therefore be assisted by this investment.
5.15 The following presents a brief overview of the potential economic and wider
impacts which the development of Wirral Waters will deliver over its development
lifetime. The information presented is drawn from Regeneris Consulting‟s Wirral
Waters Economic Impact Assessment prepared in May 2010 in support of the
planning application for Wirral Waters.
5.16 Gross Direct Economic Impacts are:
By 2015: 1,300 FTE jobs would be generating employment income of
£37m per annum and GVA of £59m per annum.
By 2020: 3,600 FTE jobs would be generating employment income of
£110m per annum and GVA of £179m per annum.
50
By 2030: 9,200 FTE jobs would be generating employment income of
£284m per annum and GVA of £469m per annum.
5.17 Regeneris estimated that the net additional impact of Wirral Waters taking into
account indirect (supply chain), induced (uplift), deadweight and displacement
effects would be as follows:
Wirral: 1,200 FTE jobs generating GVA of £57m per annum by 2015,
rising to 8,800 FTE jobs generating GVA of £457m per annum in 2030.
Greater Merseyside: 700 - 800 FTE jobs generating GVA of £34m - £38m
per annum by 2015, rising to 6,000 - 6,600 FTE jobs generating GVA of
£312m - £343m per annum in 2030.
North West: 200 -300 FTE jobs generating GVA of £12m - £17m per
annum by 2015, rising to 2,600 - 3,300 FTE jobs generating GVA of
£142m - £177m per annum in 2030.
5.18 Regeneris also estimated that at the peak of development at Wirral Waters the
construction programme would directly support around 900 FTE jobs with an
annual average between 2013 and 2030 of around 700 FTE jobs. The assessment
also highlighted the opportunity for employment in the construction sector that the
Wirral Waters scheme brings to Wirral and the City Region.
5.19 The ITC can help stimulate the delivery of Wirral Waters and, subject to market
conditions, could allow these figures to be exceeded or, if economic conditions
remain weak, act as a catalyst to achieving those figures. The extent to which the
ITC can assist the delivery of Wirral Waters cannot be predicted in any detail, but is
likely to be significant in terms of facilitating inward investment from overseas,
aiding the construction process and establishing inner Wirral as an important
investment location.
Imports and exports
5.20 The import of goods is anticipated to be the principal direct activity of the Peel ITC.
If the Peel ITC operates in this way, the facility can also indirectly assist in the
export of goods by:
Strengthening reciprocal business relationships between the UK /
Western Europe and emerging economies globally; and
Stimulating sectors in the UK that export goods, such as advanced
manufacturing, as outlined above.
51
5.21 The net import-export balance is a crucial economic factor for the UK, so the ITC
can become an important cog in the economic machinery of the nation.
5.22 Additionally, whilst it is assumed at this stage that the ITC will be used
predominantly for the import of goods and products from around the world, the
facility could in time develop in other areas, such as product trade within the UK
Western Europe and as a window for UK / Western European businesses to
showcase and sell products to buyers from overseas. As emerging economies
become more mature, it is anticipated that the net difference between exports and
imports will reduce. It is partly in recognition of this that the Chinese government is
keen to work partners in the UK to develop long term two-way trading relationships.
5.23 The Peel ITC could ultimately become a combination of these different models,
fluctuating over time in response to market dynamics and economic conditions.
The operational dynamic of the ITC may therefore change over time, thus
reinforcing the need for a flexible and adaptable development.
Sector growth and innovation
5.24 The Government‟s strategy for economic growth priorities inward investment
alongside the growth of a number of key sectors of the economy. Those most
relevant to the Peel ITC are set out below and along with a synopsis of how the
project may assist in their growth.
Advanced manufacturing
5.25 The growth of advanced manufacturing within the UK will require strong supply
chain links for a range of goods, products and materials that will be needed. Many
advanced goods, products and materials will be developed and refined in the UK,
using expertise, knowledge and technological innovation from the UK, but using
components, parts and materials from other nations. In the global market place, it
will be essential for UK manufacturing businesses to compete internationally by
accessing the best goods, at the lowest possible cost.
5.26 As an example, there would be the opportunity for the assembly of complex
machinery developed within the UK to occur using specialist parts or materials
sourced via the ITC from overseas. The ability to access such supply chains can
be the difference between UK businesses flourishing and failing. It is therefore
anticipated that the ITC will be able to support advanced manufacturing locally,
regionally and nationally in this way.
52
Digital and creative industries
5.27 The UK is plays a significant role in the creative and media sectors globally. The
development of MediaCityUK by Peel will help position the region as an
international hub, initially through the relocation of BBC departments and
subsequently through further investments and business growth in the sector. The
Peel ITC can play a significant „back of house‟ role to the media and creative
sectors by opening up new markets and providing access to a greater range of
goods and products used in the sector.
5.28 Innovation in the fields of digital and technology will in the same way as advanced
manufacturing require the UK to develop its position globally by being competitive
within the international market place. Access to digital technology from overseas
will be vital to UK businesses in that sector.
Automotive
5.29 The automotive sector within the UK is a key growth priority, linked to the push for
more sustainable forms of transport, both in relation to mass transit of goods and
people and for private vehicular transport. The Government is promoting the use of
transport systems powered by electricity from sustainable sources.
5.30 The ability to trade with other nations will be central to UK plc‟s ability to compete
internationally in this sector, specifically through access to parts and components
produced around the world.
Low carbon
5.31 The growth of the low carbon sector presents opportunities for the sustainable
sourcing and transport of goods/products, through access via a port. The financial
and carbon cost of importing could both be positively affected by the Peel ITC.
5.32 Additionally, the low carbon sector provides the opportunity for overseas
companies to invest in environmental projects such as energy infrastructure. This
could be as an investment partner alongside UK businesses or within the supply
chain. Energy technology is in particular developing apace around the world and
the more effective sourcing of materials, goods and components can support the
growth of the sector within the UK.
53
Retail and food & dink
5.33 The retail and food & drink sectors represent a key target market area for the ITC,
namely by providing a single shop window for UK and Western European
businesses to view, sample and test retail products, negotiate with sellers and
make purchases for onward sale in the convenience and comparison sectors. The
use of the ITC in this respect could apply to any retail business from the largest
retail companies such as Carrefour and Walmart to independent shops in the local
area.
5.34 As explained in section 2 above, Peel‟s interest in the retail sector stems from its
partial ownership of Capital Shopping Centres and its well developed network of
major retail tenants.
Construction
5.35 The Peel ITC will have a direct beneficial impact on the construction sector through
its physical development.
5.36 In addition, the ITC can become a focal point for construction businesses seeking
to source materials and technical building solutions. The extent of development
anticipated as a result of the Waters schemes and the wider Ocean/Atlantic
Gateway provide a clear market opportunity for the ITC in the construction sector
over 3 to 4 decades and beyond.
GVA growth
5.37 Economic output and growth can be measured in terms by Gross Value Added
(GVA). It is a key Government objective nationally and locally to increase GVA,
particularly in areas where performance is well below average.
5.38 The challenge locally is stark. Wirral is an economy that is not currently punching
at its weight in terms of wealth creation (GVA per head of £11,500 is the lowest of
the Merseyside authorities and almost half the national average). The annual direct
and indirect GVA value to the local and regional economy of the projected
employment at the ITC, from the full implementation of the ITC scheme, is over
£100 million.
5.39 The project will also help stimulate GVA growth in a number of other ways and so
the £100m figure could be considered as conservative in terms of the actual value
of the ITC to the economy. Such figures are very significant locally, where most of
the direct employment impacts will arise, but are also important regionally and
54
nationally. The project can therefore play a significant role in lifting GVA
performance.
Strengthening the local economy
5.40 The sectoral priorities of the Liverpool City Region are identified as the existing and
future drivers of the local economy. The City Region sector priorities are:
Science and innovation
Environmental technology
Automotive
Chemical
Maritime
Construction
Retail and catering
5.41 Many of the City Region priorities reflect national economic growth sectors outlined
above, albeit the relative strengths, weaknesses, opportunities and threats
affecting different business activities are generally quite different in the Wirral and
Liverpool City Region area to the national picture. Specifically, many of these
sectors are weaker and more fragile in the local area than they are in many other
locations and when compared with national averages.
5.42 The maritime economy will be assisted by the ITC in terms of raising the profile
and use of Liverpool SuperPort infrastructure including the Port of Liverpool, whilst
the potential use of part of the site for B2/B8 uses relocated from East Float may
also assist the maritime economy.
5.43 The local economy has been fairly dependent on public sector expenditure for
many years and it is a key Government aim to reduce both expenditure and
dependency. As Government spending continues to reduce and market conditions
continue to recover slowly from the global recession, many sectors are at risk.
5.44 The only option for the local economy is to growth of its private sector business
base. Plans are in place and the commitment of public and private sector partners
in the City Region to a private sector led recovery is clear, yet market conditions
remain weak and finance for investment, development and business growth
remains very difficult to source. The growth of the aforementioned sectors locally
55
therefore requires all possible competitive advantage, to help transform the
economic base of the area and allow different types of business activities to
become sustainable over the long term.
5.45 Proximity to the ITC can provide local businesses in these sectors with a
competitive edge through ready access to range of goods and products. The ability
to negotiate and form relationships with suppliers, whilst ensuring costs are
minimised, will help local businesses to compete with rivals elsewhere within the
UK and further afield. In turn, if local businesses are more competitive, they and
their employees contribute more to the local business and tax base, helping
stimulate and sustain the local economy.
5.46 The development of the ITC is the start of an approach by Peel, and partners, to
create and shape new markets for in Wirral and the City Region. This will be a
critical step in helping Wirral to diversify its business base and to provide the
necessary floorspace and infrastructure.
5.47 The ITC will help transform the market profile and positioning of Wirral (particularly
inner Wirral) and the City Region, allowing it to retain and attract a much wider
range of occupiers, residents and investors. The delivery of the ITC will in
particular help put the City Region on the „international map‟ for investors and
occupiers. It will also help transform deeply held perceptions and attitudes in
relation to investing in the area, building on the success of major investment in
recent years such as Liverpool One, but responding to a challenging economic
future.
Making best use of the land resource
5.48 Despite a legacy of industrial decline and land dereliction, there is a shortage of
large, accessible employment sites within Wirral, as recognised within the Wirral
Employment Land Study. The same challenge existing within the wider City
Region. There is as such a shortage of sites that are capable of accommodating
large scale transformational investment opportunities.
5.49 Birkenhead Docks is one of the few areas where such opportunity exists in a
central and accessible location within the City Region. The East Float area is to be
redeveloped as a transformational mixed use investment, creating different
quarters for living, working and visiting. As part of the redevelopment of East Float,
a relocation strategy has been formed for existing tenants and businesses. This will
involve decanting to West Float, potentially including in part the ITC site, or other
parts of the wider port estate. The ITC scheme at West Float may also affect
56
existing tenants and so a similar strategy is being put in place. The overall aims are
to ensure that the existing business base in the area is not adversely affected and
to relocate affected businesses can be relocated to appropriate premises. These
issues are considered further in the Planning Statement.
5.50 In terms of the economic implication of this approach, it has the dual advantage of
protecting the existing maritime, industrial and related economy within the
docklands whilst creating a new economic opportunity which can itself aid those
same business sectors. It also facilitates future port access thereby providing the
opportunity to secure direct use of the port, whilst being designed in a manner that
allows the site and buildings to be adapted to other uses if necessary.
5.51 As a more intensive economic use than predominantly exists today within the
docklands, the Peel ITC represents a highly effective use of a relatively scarce land
resource. It is considered to be entirely appropriate in its setting, being ideally
located both to succeed as a business concept and to maximise economic
investment and benefit in an area of need.
5.52 In addition, the Peel ITC brings significant economic and environmental benefits in
terms of land remediation and the enhancement of the built environment, as set out
further below and considered in detail within the Design and Access Statement and
Environmental Statement.
5.53 Nonetheless, the potential need to use some of the application site for relocated
businesses is safeguarded by this permission.
Underpinning retail, tourism and community facilities
5.54 The proposal will also stimulate the local economy in other ways. This will include
through increasing demand for visitor facilities from visiting businesses and
increasing local level spending power in order to sustain local services. The scale
and significance of the Peel ITC will mean that it is able to attract other businesses
to the area that can benefit from its operation. This may include logistics firms or
hotel and retail operators.
5.55 Considered in the context of Inner Wirral, this represents a significant additional
benefit to the local area, and one which has added importance at West Float
compared with other locations where the need for the investment and the spin-off
benefits is less marked.
5.56 The ITC will specifically create additional demand for hotels and related tourist
facilities, who may choose to visit local attractions as part of their business trip.
57
Business visitors may also visit local retail facilities such as Liverpool One. The
proximity of the ITC to local shopping centres will also give them a competitive
edge which may therefore enhance the vitality and viability of local centres, as set
out within the Planning Statement.
5.57 An increase in disposable income amongst the local community as a result of the
significant direct local employment identified in section 4 will also help sustain local
community facilities and services.
Strengthening the housing market
5.58 The Housing Market Renewal Initiative (HMRI) has operated around the docklands
for a number of years, preceded by earlier regenerative initiatives. A key objective
of the HMRI has for some time been the creating of more sustainable local
employment.
5.59 The ITC can help strengthen the local housing market through attracting additional
working population as well as providing employment to local people. It can help
reduce the housing affordability gap which exists. The ITC‟s ability to strengthen
the housing market is therefore a particular benefit locally in view of the area‟s
weak and unaffordable housing market conditions.
5.60 Additionally, the ITC can help underpin and stimulate new housing as part of Wirral
Waters. This may be through the direct housing of those employed at the ITC or
indirectly through raising the profile of Wirral Waters internationally, changing
perceptions of the area and stimulating investment.
Tax revenue
5.61 The Peel ITC will provide a significant contribution to the local tax revenue. This
will be through both Business Rates and increased Council Tax revenue (arising
from new residents). The increased tax revenue will enhance the local authority‟s
ability to invest locally in community facilities and initiatives.
5.62 Additionally, the ability to provide employment opportunities to local people current
out of work will reduce dependency on the state and hence allow taxation revenues
to be spent in other areas.
Tackling population loss, worklessness and deprivation
5.63 The neighbourhoods surrounding the scheme have high levels of worklessness
and are some of the most deprived nationally (approximately a third of inner
58
Wirral‟s SOAs are currently ranked within the most deprived 10% nationally). Peel
and partners are committed to ensuring that employment opportunities associated
with the scheme, and further Wirral Waters projects, are maximised for local
people from these neighbourhoods.
5.64 While training and employment opportunities do bring economic benefits, the wider
social and health benefits to the individual of being in work are also important
additional benefits, as well as the monetary benefits for the government from
reducing benefit dependency. The health aspects are considered further in the
accompanying Health Impact Assessment.
5.65 With over 15,000 housing units developed simultaneously with the office, retail and
leisure components of the scheme over the next 30-40 years, it is anticipated that
the ITC will assist in creating a major new mixed use community in Wirral. This will
reverse decades which have seen tens of thousands of population loss in inner
Wirral.
5.66 In terms of the wider development reducing worklessness, subject to the precise
development rate and range of occupiers attracted to East Float, Regeneris
estimated that around half of the gross direct permanent employment opportunities
within Wirral Waters by 2030 would be at or below NVQ level 2. This compares to
around 1,300 Jobseekers Allowance and 4,000 other claimants of out of work
benefits in the inner Wirral area (10,000 and 32,000 respectively for Wirral as a
whole).
5.67 The ITC can further assist in all these areas by stimulating economic activity and
therefore accelerating and enhancing the aforementioned benefits. In terms of the
strategy and action plan for maximising local economic benefits, this relates
principally to actions around employment and skills, as set out in section 6 below.
59
6. Maximising Economic Benefit
Partnership approach through Wirral Waters
6.1 In partnership with Peel Holdings, and their advisors, public sector partners
(including Wirral Council) have, for a number of years now, placed skills and
employability outcomes at the top of the agenda for Wirral Waters. The
development of Wirral Waters presents a once in a lifetime opportunity to create a
legacy of regeneration and access to employment and training for people living in
areas of high worklessness and deprivation in inner Wirral (in close proximity to the
development), as well as within the wider Wirral area and Liverpool City Region.
6.2 The Wirral Waters Skills and Employability Strategy sets out the key themes and
actions that partners will need to pursue if they are to ensure that residents are
equipped and able to access employment opportunities at Wirral Waters. It seeks
to:
Set out the actions required to ensure that the development of Wirral
Waters is an important catalyst for the creation, attraction, development
and retention of a highly and multi-skilled workforce in Wirral.
Set out the actions required to ensure that local residents, especially
those in Wirral‟s more deprived communities, can access the jobs which
will be created in and around Wirral Waters.
6.3 The implementation of the actions flowing from this strategy – delivered wherever
possible through existing mechanism and projects – will be the responsibility of the
Wirral Waters Economy Steering Group (consisting of Peel, Wirral Council, and
The Mersey Partnership). The Section 106 Agreement for East Float requires the
further development and subsequent implementation of an Employment and Skills
Action Plan.
6.4 It will be important to ensure that actions to capitalise on the employment
opportunities presented by Wirral Waters are designed and delivered within the
existing and emerging structures for action on skills, employability and
worklessness. However, in time it may become necessary to develop more
bespoke arrangements to identify the demand for skills, training and IAG
(information, advice and guidance) services and ensure that the supply is able to
meet that demand as it arises.
6.5 Peel‟s track record in bringing local employment and community benefits to areas
where it invests is highlighted in its delivery of skills and employability schemes at
60
a number of its other large scale regeneration and development projects, including
the Trafford Centre, Liverpool John Lennon Airport, and Robin Hood Airport in
Doncaster. Peel recognises that there is a fundamental need for the Wirral Waters
project to deliver and hence is committed to working with partners to create a
legacy of regeneration and access to employment for local deprived communities.
The Peel ITC dimension
6.6 The Peel ITC can benefit from progress made to date on the wider skills and
employment strategy, and can dovetail with the wider opportunities for employment
creation and tackling local skills and worklessness issues arising through Wirral
Waters.
6.7 It is sensible for the ITC to be considered as a strand of the wider strategy, to
include training, support and other measures (as identified in the strategy) to
ensure that the local community can access the ITC opportunities.
6.8 The nature of the ITC means that the type of employment opportunities may be
fairly different in nature to many of those likely to be available at East Float. The
focus at East Float is on transformational knowledge based economic activity
across different potential sectors, in a high density living and working environment.
It is anticipated that East Float will incorporate a balance mix of higher and lower
skilled positions, as reflected in the East Float Economic Impact Assessment
(Regeneris Consulting, 2010). There is an emphasis on facilitating early investment
and ensuring that the local community has access to new employment
opportunities rising at East Float, although the full extent of the vision will take 30+
years to realise.
6.9 At West Float, the ITC project introduces the potential in the much shorter term to
provide a large number of private sector employment opportunities at NVQ Level 3
and below, which represents a good alignment with the skill levels of the local
community. There is as such every opportunity to maximise the potential for local
people to access new positions. Not only is this a public sector policy priority but it
also makes sound business sense for ITC investors and tenants as they will have
an immediate and ready pool of suitably skilled local workers.
6.10 The predicted phasing of the ITC shows that in 2013/14 the first ITC Building can
provide 644 FTE jobs, the majority at NVQ Level 3 and below. It will therefore be
important for Peel, its partner investors and future tenants to work together prior to
and during the detailed design and construction phases such that investors/tenants
61
have the requisite workforce supply in place when needed. There will also be a
need to ensure that the construction process itself maximises local employment.
6.11 The overall aim will be for the approach to skills and employment at the ITC to
dovetail with the associated priorities within Wirral's Employment and Enterprise
Investment Strategy, as established by the Council and reflected in the Wirral
Waters Employment and Skills Strategy.
Incorporating the ITC within the Wirral Waters employment and
skills strategy
6.12 As noted above, as part of the East Float Section 106 Agreement, there is a
requirement to establish an Employment and Skills Action Plan during the course
of 2011. As the ITC is inter-linked to this, and as the timing of the ITC first phase is
likely to take shape over the same period as investor/tenant discussions and
negotiations progress (alongside the resolution of a construction plan), it is
considered appropriate for the ITC to be progressed alongside the wider Action
Plan, but with its own particular and relevant strand of actions in response to the
ITC.
6.13 This will ensure integrated communication and action, with an avoidance of
duplication. This joined up approach will be managed through the Wirral Waters
Economic Steering Group, the established aims of which are to:
Raise aspirations of Wirral residents through training and employment
opportunities;
Tackle worklessness;
Address basic and vocational skills;
Address barriers to work;
Increase opportunities for work experience, apprenticeships and
mentoring;
Encourage the use of construction and employment agreements;
Provide job search, information advice and guidance to those seeking
employment or training places within the Development;
Identify key funding opportunities and to ensure that the Development
benefits directly from appropriate national policies and initiatives; and
62
Set up and run employability workshops (CV writing, interview skills etc)
for local people
6.14 The ITC will therefore align with these aims. The specific actions for the ITC will be
informed by the Wirral Waters Employment and Skills Action Plan and will be
captured within a subsidiary ITC Employment and Skills Action Plan. To
provide some certainty at outline planning stage as to what this will entail, the
following points set out the employment and skills issues to be considered for the
ITC Action Plan:
Commitments and actions to link the development to local business
networks/procurement/supply chains, during both the construction and
operational phases of development, including promoting the use of
businesses in the local area in contracts awarded in respect of the
development;
Resources to ensure that local people have maximum opportunity to
benefit from the Development;
Support for the provision of appropriate and accredited employment-led
pre-employment training;
Ensuring that economically inactive people have the opportunity to gain
employment and learn new skills as a result of the development;
Incorporating initiatives which include customised training, work
experience, ongoing skills and workforce development/progression
opportunities, and job interview guarantees, for different age/skill groups,
including apprenticeships, ;
A protocol for joint working with the Council which will identify the
provision of relevant targeted recruitment and construction training; and
The promotion of opportunities for local people for work placement
experience, diplomas, apprenticeships and vocational training and local
employment within the project.
6.15 The Economic Steering Group is also tasked with overseeing the relocation of
tenants from East Float, and so will advise on the extent to which this may be
appropriate within part of future phases of the application site.
63
BELFAST
BIRMINGHAM
BRISTOL
CARDIFF
EDINBURGH
GLASGOW
LEEDS
LONDON
MANCHESTER
SOUTHAMPTON
www.turleyassociates.co.uk
