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Motorsport Development UK – sustaining and growing Motorsport Valley

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									            Annual Report 2005
   Sustaining and growing a British success story



Contents:

Chairman’s statement
Introduction
Vision and aims
Funding and economic outputs
Work programme achievements to date

     Business Development
     Learning Grid
     Energy Efficient Motorsport
     Widening Participation
     Motorsport Academy

Appendix 1 – Executive summary of competitiveness panel report
Chair’s Foreword
I am delighted to welcome you to the first annual report of the work of Motorsport
Development UK. Although billed as an Annual Report, we hope in the following pages to
summarise the aims and achievements of the first two years in the life of this innovative and
ground-breaking private/public sector partnership.

Motorsport Development UK was established in 2003, as a direct result of recommendations
made by the Motorsport Competitiveness Panel, a body whose members were drawn from
Government, industry and academia. The Panel was jointly chaired by Patricia Hewitt,
Secretary of State for Trade and Industry, and Paul Barron, UK President of Alstom. Its work
was commissioned by a Government keen to sustain and further develop the motorsport
cluster and to ensure that other sectors would benefit from its skills and expertise.

The Competitiveness Panel believed that a series of coordinated actions was required, in
order to ensure that such position was maintained and subsequently grown, in the face of
increasing overseas competition and global economic pressures. The recommendations of
the Panel were built around four distinct areas – Finance, Investment and Economic Impact;
Skills, Education and Training; Sporting; and Technology and Innovation.

One of the key recommendations of the Panel report was the creation of Motorsport
Development UK “to lead, coordinate and prioritise development activities, and drive growth
and improvement of both the sport and the industry”. Motorsport Development UK was set up
as a partnership between the sport, the industry and the Funding Partners. Its key role is to
oversee the implementation of the Panel’s recommendations and in time develop other
initiatives.

At present funding for the programme comes directly from the Department of Trade and
Industry (DTI) and the four Regional Development Agencies namely the East Midlands
Development Agency, Advantage West Midlands, East of England Development Agency and
the South East of England Development Agency. These regions effectively embrace
‘Motorsport Valley’, the area where the majority of the UK motorsport cluster is concentrated.

The Board of Motorsport Development UK is drawn from the sport, its related industry and
the Funding Partners. It meets regularly to inform and review policy, and to agree investment
priorities. The team responsible for ensuring our work programmes are carried through are
based at the Silverstone Innovation Centre. They ensure delivery of the outcomes and
outputs all stakeholders seek and that the programmes are properly evaluated.

In the past year, I have overseen a review of our strategy and implemented changes to the
membership and operation of the Board, designed to streamline the process of targeting
investment in areas where it will produce maximum benefit for Motorsport Valley and wider. I
would like to record my thanks to all current and past members of the Board who give up
their time free of charge to direct this important initiative. Particular thanks are due to Chris
Aylett, Chief Executive of the Motorsport Industry Association, whose contributions to the
original Competitiveness Panel and later the work of the Board have been invaluable.

Changes in process have been necessary as we have moved from planning to delivery; from
‘how can we’ to ‘what can we’. This has meant a comprehensive review of our governance
procedures that now include policies relating to conflicts of interest and Board rotation.

From the start, our mission has been to ensure all parts of UK motorsport develop their full
potential, win business globally and make a valued contribution to other sectors of the UK
economy and to society as a whole. We are doing this by funding programmes that sustain



                                                                                               2
and strengthen the existing UK motorsport industry and sport, develop and grow the
capability of individuals and the sector as a whole, and that re-connect motorsport to other
industry sectors, especially the automotive industry.

We can already point to a number of notable successes including:

       Creation of a much sought-after web-based Careers Portal that matches the skills of
       individuals with the needs of employers. The site is already attracting over 2,000
       visitors per month and currently has over 650 registered people seeking work in the
       motorsport industry
       Support for running bio-ethanol cars at Le Mans in 2005 and in the British Touring Car
       Championships in 2005 and 2006 through our Energy Efficient Motorsport
       Programme (EEMS). This has generated widespread positive public relations and
       growing awareness of the initiative in the USA automotive industry
       The work of the Local Authority Support Unit and CruiseSport in seeking to
       address the increasing problems associated with illicit motorsport activity. The latter
       has attracted more than 8,000 participants since starting in 2004
       Support for a wide-ranging volunteers training programme, encouraging
       involvement in marshal activities. This will see over 1,000 volunteers undertake
       training and some 60 instructors attending refresher courses
       The ‘Motorsport to Aerospace’ mission, successfully engaging aerospace
       companies at the Farnborough and Paris airshows, which has already generated
       more than £1.3m of export sales for the motorsport sector from aerospace industry
       Delivery of a business networking facility at the Autosport International
       exhibition, in collaboration with the Motorsport Industry Association, which earlier this
       year hosted over 70 formal meetings throughout the two trade days
       Engagement with Government in seeking to alleviate the tax burden on motorsport
       The creation of a Learning Grid of activities, designed to enthuse young people
       about science, technology and engineering. Last year more than 10,000 students
       participated in activities organised under the Learning Grid banner, including activities
       such as Greenpower, Formula Schools, F1 in Schools and Primary Engineer

To date Motorsport Development UK has committed over £3.2m of support, aimed at
maintaining Motorsport Valley at the forefront of the global motorsport industry. In the pages
that follow we outline more about our exciting investment plans and give an insight into the
many successful programmes we have supported since coming into being.

We are proud of our achievements so far, but recognise there is no room for complacency.
Competition around the world remains fierce and we must continue to deliver effective
support to an industry in which the UK is truly a global leader.

I look forward to what I am sure will be a most challenging yet rewarding year ahead.




Bob Gilbert
Chairman
Motorsport Development UK




                                                                                              3
Introduction
The UK motorsport industry continues to lead the world. Its global reputation remains second
to none and is itself a tribute to the expertise and commitment of those individuals,
businesses and supporting organisations that make up this unique and highly innovative
British success story.

It is an industry of many facets, lying at the intersection of entertainment, media and
engineering, and as such is influenced by trends in each. However as a result, the UK’s pole
position is becoming under increasing threat.

Whilst participation in the sport remains basically static, other developing countries are
showing increasing interest and are plainly ready to invest generous state funding to
compete on the world stage. For instance both China and Malaysia are looking to develop
their own motorsport industries on the back of brand-new Formula One facilities at Shanghai
and Sepang, each of which represents a major investment by their respective governments.
China’s long-term vision was highlighted by last year’s deal with Formula One Administration,
securing Shanghai’s status as a Grand Prix venue until 2014.

The skills and experience that used to be the preserve of British engineers are now being
developed elsewhere and, as a supply base, the UK is increasingly challenged by the USA,
Japan, France, Germany, Italy and other emerging nations. Competition for the advertiser’s
dollar that funds most of the top-end series is also fierce, as new media emerge and
fragment and the demand for live content grows. The successful launch in 2005 of the A1
Grand Prix was a clear signal that the public enthusiasm and appetite for motorsport remains
strong.

Global issues also create opportunities. Issues around fossil fuel price and availability
provide a platform for motorsport to explore engineering solutions that can reconnect the
sport with the R&D teams in the automotive industry.

So in recognising the opportunities and threats facing the motorsport industry, it is essential
to understand its real value to the UK economy as a whole.


The UK Motorsport Industry – the story so far

The majority of the motorsport industry resides in “Motorsport Valley” – an area covering
much of the Home Counties, the South and West Midlands, Surrey and parts of the East of
England. It is characterised by this unparalleled global reputation and tight links between
manufacturers, suppliers, sponsors and intermediaries.

The motorsport and high-performance engineering sector employs over 40,000 people in the
UK, with 25,000 of these being skilled engineers. Turnover across its 4,000 companies
exceeds £5bn, of which around 55% is accounted for by exports. Nearly £3bn of turnover is
generated by the engineering sub-sector, which exports high levels of goods and expertise
throughout the world, most notably to North America.

Between 1989 and 2000, the motorsport industry increased its turnover in engineering and
services by more than 500%. Numbers employed in the industry more than doubled in the
same period. However, most commentators believe the sector is reaching its peak and that
growth has now flattened. More recently there has been a decline in motorsport testing
taking place in the UK (an important activity for Silverstone, which undertakes 83% of testing




                                                                                             4
done in the UK) and more widely job losses, representing some 5% of industry employment
in 2002.

The majority of growth in the 1990s was fuelled by expansion within the engineering sub-
sector rather than the motorsport services sector. The graphs below show indexed growth in
the cluster’s employment and turnover figures over a five-year period, benchmarked against
the national economy.



                                               Employment Growth, 1998-2003

                               130

                               125

                               120
       Employment (1998=100)




                               115

                               110
                                                                                         UK
                               105
                                                                                         Motorsport
                               100

                               95

                               90

                               85

                               80
                                     1998   1999      2000          2001   2002   2003
                                                             Year



                                                   Turnover Growth, 1998-2003

                               160

                               150

                               140
       Turnover (1998=100)




                               130
                                                                                         UK
                               120
                                                                                         Motorsport
                               110

                               100

                               90

                               80
                                     1998   1999      2000          2001   2002   2003
                                                             Year



Source: emda Motorsport Cluster Report 2004



                                                                                                      5
The fact that on both measures the cluster has out-performed national growth rates indicates
its significant value to the UK economy. However, the fast pace of growth in employment and
turnover within the industry has not been fully matched by increases in productivity, as
measured by GVA per employee. Over the same period, motorsport GVA per employee has
increased by 16%, compared to 24% in the national economy and this is one of the reasons
why the global industry is looking elsewhere – costs of labour are significantly less in the Far
East.


Vision and Aims
Motorsport Development UK’s vision is to ensure all parts of UK motorsport develop to their
full potential, winning business globally and making a valued contribution to other sectors of
the UK economy and to society as a whole.

It does this by funding and supporting programmes that:-

       Maintain and ultimately grow all aspects of UK motorsport and its related businesses
       Enable individuals and the sector as a whole to embrace change and make the most
       of new opportunities
       Facilitate the transfer of knowledge and capability from motorsport to other sectors of
       the economy

This vision emerged from the recommendations of the Motorsport Competitiveness Panel,
which were built around four distinct areas namely economic investment, learning and skills,
technology and innovation and the sport itself. In implementing the recommendations of the
Panel report, Motorsport Development UK has focused investment in 5 key areas. These are
as follows:

       Business development and cross-sector motorsport technology transfer across the
       UK and abroad
       Creation of a Motorsport Academy to improve skills development and co-ordinate
       learning provision
       Support for a motorsport Learning Grid of educational activities in schools, Further
       and Higher Education
       Development of Energy Efficient Motorsport (EEMS) in the UK
       Widening participation by encouraging more participants and volunteer officials to
       enter and stay involved in the sport


Funding and Economic Targets
The Motorsport Competitiveness Panel report estimated that around £20m of public sector
investment was required to deliver its recommendations. These costings were revised
following consultation with the Funding Partners and a £16m package of support was
announced by the then Secretary of State for Trade and Industry in July 2003.

In 2004, the Motorsport Valley Regional Development Agencies agreed a 5-year funding
programme totalling £8.5m, which was in addition to the £4m already pledged by the
Department of Trade and Industry. At the time of the original funding announcement, it was
anticipated that the balance of funding support would be forthcoming from the sport side of
Government. Unfortunately despite extensive efforts by the Motorsport Development UK
Board and staff, we have been unable to secure such support, which has resulted in a
curtailing of activities aimed at widening participation in the sport.


                                                                                              6
We will, however, continue to seek funding support from Government and other sources in
order to ensure delivery of key aims and objectives.

The summary budget shown in the table below illustrates the level of Motorsport
Development UK funding already spent and committed, across our 5 work programmes. It
also shows the proposed funding allocation to each programme until March 2009, when the
initial tranche of funding is currently expected to end.


                                        Spend and         Proposed
          Work Programme                Committed          Funding
                                                                          Total
            Allocations                 Funding to        Allocation
                                           date            2006-09
    Motorsport Academy                     £0.5m            £2.6m         £3.1m

    Learning Grid                          £0.6m            £2.9m         £3.5m

    Widening Participation                 £0.7m            £0.0m         £0.7m

    EEMS                                   £0.6m            £1.1m         £1.7m

    Business Development                   £0.5m            £1.5m         £2.0m

    Administration                         £0.3m            £0.5m         £0.8m

    Totals                                 £3.2m            £8.6m         £11.8m



What will the Motorsport Development UK Programme deliver?

The Motorsport Development UK programmes are designed to deliver the outcomes set out
in the Motorsport Competitiveness Panel report. In addition to this, we have identified a
range of economic outputs against which the delivery objectives of each programme will be
measured. These outputs are aligned with the data and qualitative information upon which
Government effectively assess the performance of the Regional Development Agencies.

The targets outlined below have been agreed by the stakeholders within the current
Motorsport Development UK Business Plan.


                             Output                                    Target
     Job Created or Safeguarded                                                   600
     Employment Support – People assisted                                       3,600
     New Businesses Created                                                        41
     Businesses Supported (including knowledge base                               860
     collaborations)
     Skills Development – People assisted/skills gained                         4,200




                                                                                        7
Key Achievements
The aims of Motorsport Development UK are being achieved through the 5 work
programmes summarised previously. In the following pages we explore the achievements to
date for each of these programmes.

All of these activities continue to be judged by their contribution to the aims of Motorsport
Development UK i.e. to sustain, develop and grow the UK’s world-leading motorsport sector
and build links with other industries for the benefit of all those who work in motorsport and of
the UK economy as a whole.


Business Development

As stated previously, the motorsport and high-performance engineering sector is a major
earner of export sales and inward investment for the UK economy. It employs 25,000 skilled
engineers, working with advanced materials and technologies, and the services of our
15,000 sporting and marketing businesses are in demand wherever motorsport takes place.
The UK continues to lead the world in many areas of motorsport including Formula 1.
Currently 7 Formula 1 teams and two engine constructors are based in the UK, which
represents only around 15% of the nation’s motorsport industry. The balance comprises
almost entirely of small, medium and micro enterprises.

Despite this enviable position, the entire industry faces increasing competition from
established and developing economies seeking to grow their motorsport and wider
automotive capabilities. It is therefore essential that an appropriately targeted business
support programme is in place, in order to fully exploit the technology transfer opportunities
that exist between motorsport and other sectors, and to encourage continued investment in
enterprise and innovation that will maintain the UK’s domination of the industry worldwide.

Aims and Objectives

The primary aim of the Business Development programme is to improve the competitiveness
and success of the industry, driving business and employment growth and increasing
competitive advantage. This will be achieved by focusing on innovation and technology
development, interaction and collaboration, international development and business support.

Activities to Date

Motorsport Development UK has worked with a range of stakeholders and partners to deliver
activities under this work programme. The key ones are summarised as follows:

The £150bn aerospace industry is a key target for motorsport, not only in terms of exploiting
diversification and technology transfer opportunities, but also to aid business and skill
development. Initial work to make this happen has been undertaken via the Motorsport
Industry Association’s (MIA) Motorsport to Aerospace project.

The project has built upon a strategic alliance between the Society of British Aerospace
Companies (SBAC) and the MIA and has promoted and supported business development
and technology transfer between these complimentary high performance-engineering
sectors. The project was launched with the Motorsport Pavilion and dynamic displays at
Farnborough International Airshow in July 2004, which included 8 exhibiting companies and
promoted the UK motorsport industry as a whole. The Pavilion attracted 3,000 visitors and




                                                                                              8
generated £350K of potential business. This was the first time a sector other than aerospace
has participated in the show.

Exhibiting at the Farnborough Show was followed by 2 successful technology            transfer
conferences in 2004 and early 2005 and trade mission, led by the MIA, to the Paris    Airshow
in the summer of 2005. To date the project has engaged 75 businesses in               transfer
technology activity and has reported 4 expanding companies, the creation of one       spin-out
and 22 new jobs.

For the past 2 years, Motorsport Development UK has created an International Business
Lounge at Autosport International, Europe’s premier motorsport show. The Lounge
provided business networking facilities for hundreds of businesses visiting the show. It
included private meeting rooms and drop-down areas, enabling meetings to be turned into
leads and leads into sales. The Lounge also provided a showcase for Motorsport
Development UK programmes, enabling businesses and other stakeholders to understand
and engage with projects, including the Learning Grid and Volunteers in Motorsport.

This year also saw the first UK Trade and Investment/Motorsport Development UK ‘meet the
buyer’ event in and around the Autosport Show. Motorsport Procurement enabled a large
number of businesses to pitch to 29 senior buyers, 22 of whom were from overseas, which
was of considerable benefit to individual businesses, providing them with a cost effective way
of promoting to the industry.

This year also saw the launch of an innovative programme to raise the awareness and
commercialisation potential of intellectual capital. The Unlocking Intellectual Capital project
kicked off with three seminars, in which senior figures from the motorsport industry joined
forces with experts in the field of intellectual capital, to highlight its enormous commercial
potential. Nearly 80 companies attended the initial workshops and 27 businesses are now
engaged in a training programme to identify existing intellectual capital, to develop skills to
protect it and to realise its true value moving forward.

The UK remains one of the few countries in the world that does not afford capital
allowances to motor racing circuits. Motorsport Development UK continues to work with
partners to lobby for this and other changes to be made to the taxation regime placed on
motorsport. We successfully negotiated inclusion of the recommendation regarding capital
allowances to be incorporated in the annual submission by the Department for Culture,
Media and Sport to Treasury and are continuing to work with the sport Governing Bodies and
Government Departments to bring about change.

Understanding more about all aspects of the sport and its related industry are essential in
order to properly plan Motorsport Development UK’s strategic support of the sector. To this
end we have established a representative panel of experts – the Research Group – to
manage and coordinate the commissioning of appropriate research activity.

The first piece of work undertaken by the Group has been to create the Motorsport 100. The
Motorsport 100 will bring together a group of 100 companies whose prosperity depends on
some aspect of motorsport, from manufacturing to competing, and education to marketing.
The index will provide a quarterly barometer of confidence within the industry and will include
a broad cross section of representation, including Formula 1, chassis builders, engine and
component makers, education providers and the motorcycle and historic racing sectors.

In addition to this, a campaign will focus on gaining coverage in non-traditional media such
as the business and financial press, in order to develop understanding of motorsport as an
important industry sector and contributor to the UK economy.



                                                                                             9
Future Plans

The Motorsport Development UK Business Development work programme is a focal point for
our current Funding Partners activities. Its key objectives around technology transfer,
innovation and international trade are fundamental drivers of growth throughout the
economy. It is therefore essential that we develop a proactive approach to Business
Development, which delivers the outcomes and outputs required by our stakeholders.

To this end, we are developing a commissioning model that will identify areas of project
activity that will best meet our business objectives moving forward. This will ensure we
actively seek strategically significant initiatives, capable of helping us achieve our outcome
and output targets. and will therefore minimise the number of unsolicited approaches we
receive.

Specific areas we will be taking forward in 2006 include:

       Greater collaboration with the aerospace industry, in order to facilitate more effective
       technology transfer
       Focus upon international trade and inward investment support opportunities
       Further development of the Intellectual Capital programme
       Increased lobbying for changes in taxation, incorporating other areas of relevance to
       motorsport
       Seek to build a more detailed historical and ongoing picture of the industry and
       consider wider surveys that will provide further evidence to support Motorsport
       Development UK’s investment and be of value to the industry as a whole


Learning Grid

Motorsport has the power to enthuse young people about careers in science, technology and
engineering. Industry surveys and Government policy have identified this as a priority for the
future of the UK’s manufacturing and science base, and the Motorsport Competitiveness
Panel report identified the potential of motorsport to complement traditional engineering
education provision. This will be achieved by developing a coordinated programme of
nationally available activities and competitions embracing all ages, from primary school to
higher education.

The Learning Grid, supported by Motorsport Development UK, is a set of inspirational and
innovative programmes that contribute to the delivery of curriculum objectives and encourage
pupils and students to consider an engineering career. The Grid has sought to build upon
those activities that best meet our aims and objectives and to support the development of
new programmes mostly closely aligned to national learning outcomes.

Aims and Objectives

The Learning Grid aims to bring consistent standards to an area that has a bewildering array
of initiatives, while supporting those activities that have the potential to grow. There are over
200 engineering and technology programmes for schools, some sponsored by a particular
company or only available in a specific region. Teachers, students and employers find it hard
to compare the relative value of all these options.

The Learning Grid’s role is to identify and support those activities with the greatest potential
and introduce a quality standard that can give schools and companies the confidence to
invest in an activity knowing it is safe, effective, relevant and well-run.



                                                                                              10
What is the Learning Grid all about?

Individual Learning Grid activities are available for students from primary school to university
and range from events lasting a few hours, to national competitions that engage a team of
students over the entire academic year. Primary Engineer offers in-service practical training
for teachers covering all aspects of design and technology. Focusing on key elements of the
curriculum such as structures, mechanisms and basic electrics, Motorsport Development
UK’s support will enable the programme to develop beyond its current regional scope.

Creating and racing their own radio-controlled car with an internal combustion engine is the
challenge faced by secondary school children taking part in the Formula Schools
programme. By developing practical skills, last year the programme gave nearly 5000 young
people a real insight into the world of engineering through competitive opportunity and an
excellent range of resource materials, comprising of learning aides, technical data and
research information. The design and build approach is further developed through Formula
Student, where acquiring wider commercial acumen is as important as academic and
engineering skills attainment. Once again competition, run by the Institution of Mechanical
Engineers in the UK, working with the Society of Automotive Engineers in the United States
and the Institution of Electrical Engineers, is an essential element of the programme, with its
international appeal illustrated by entrants from four continents.

Last year saw 78 cars take part in the national Greenpower finals at Goodwood motor-
racing circuit. This was the culmination of many regional events, where pupils from all over
the UK raced electric cars, which they had creatively designed and built. The sight of cars of
all shapes, sizes, colours and designs was truly inspirational for the thousands of parents,
teachers and guests who braved the elements at Goodwood. Innovation is also high on the
agenda in the Shell Eco-Marathon, the annual fuel economy competition, in which success
depends upon aerodynamic design, low rolling resistance, engine efficiency and driver skill.
With support from Honda and the Royal Academy of Engineering, the programme targets
schools that do not have a traditional engineering background, which is demonstrated by the
fact that half the 29 schools selected to take part in 2006 fall into this category.

F1 in Schools is one of the Learning Grid’s more established initiatives. Once again it
combines development, testing and competition, with the latter incorporating the students
presenting their work and racing their model CO2 powered designs against each other, down
a 20 metre purpose built track, in just over a second. This is faster than a F1 car over the
same distance. With approaching 50,000 students participating worldwide, the International
Finals of F1 Schools took place at Autosport International in January 2006.

Details of these activities and others, including the Land Rover 4x4 in Schools Technology
Challenge, the Society of Motor Manufacturers and Traders inspired Youth Engineering
Summit, Imagineering Fairs and Clubs, and Young Engineers network, can be found on the
website www.learninggrid.co.uk and in the Learning Grid brochure, which is available on
request from the site.

Work in 2005

This year the Learning Grid team set about developing a national quality standard that
would enable schools and colleges to choose the activity best suited to their needs and know
that it would be safe, enjoyable and offer real educational benefits. We are grateful to the
Motorsport Industry Association and the Engineering Employers Federation in the West
Midlands, who shared the work they had done on working up the assessment criteria.
Announcement of the first four activities awarded ‘approved’ status under the quality
standard was again made at the Autosport International show in January 2006. The



                                                                                             11
existence of such a standard, administered by an impartial body has been warmly welcomed
by others working in this field.

Given the interest in engineering education from industry, professional institutions, trade
associations and government bodies, representatives were invited to create a Stakeholder
Group to help realise the full potential of the Learning Grid. The group meets regularly and is
an invaluable source of guidance and support. In particular, it allows companies in sectors
other than motorsport to influence the shape of the programme.

The Learning Grid has also sought to increase its public profile through its support of the
programmes initiatives, notably at the finals of Formula Schools, the Shell Eco Marathon,
Formula Student and the aforementioned Greenpower national final at Goodwood in
October, where we were delighted to be joined by Lord March, patron of Greenpower, and
Bob Gilbert, Chairman of Motorsport Development UK.

Future Plans

Support for the Learning Grid will continue to be an important cornerstone of Motorsport
Development UK’s plans in 2006 and beyond. We will work closely with the Learning Grid
team to build capacity, share best practice and to assist in ensuring that alignment to the
curriculum is made at every stage. We will encourage links to be made with other Motorsport
Development UK work programmes, notably the Motorsport Academy and support work to
develop appropriate means to measure the outcomes and outputs afforded by the
programme.

Work to establish an agreed single model for sustaining the Learning Grid will continue in the
first half of 2006. Consultation with the Board of Motorsport Development UK and the
Stakeholder Group will ensure the approach is fit for purpose and will deliver the objectives
of our Funding Partners. Ensuring the core activities are properly resourced, developing and
implementing a robust delivery plan and streamlining processes via a single funding contract
until March 2009, will also be important deliverables over the next few months. All of which
will work to connect with, engage and inspire students of all ages with an interest in and
insight into the world of engineering through the appeal of motorsport.


Energy Efficient Motorsport

Environmental issues are now at the top of the political agenda. With fossil fuel costs rising at
record levels, the apparent effects of global warming causing increasing concern and the use
of natural resources under the microscope like never before, motorsport can play a vital part
in developing solutions.

The concept of Energy Efficient Motorsport (EEMS) stretches back as far as the ‘index of
thermal efficiency’ awarded at Le Mans since 1959. With the recent focus on the vulnerability
of fossil fuel supplies, the concept has gained in interest. The Motorsport Development UK
supported programme has its roots in work carried out under the auspices of the Motorsport
Industry Association, whose study back in 2002 highlighted several strands to the EEMS
programme including:

       The use of fossil fuels other than petrol in existing race series
       The use of renewable fuels
       New sporting regulations that would directly reward energy efficiency
       Technology transfer and the use of motorsport competition and engineering capability
       for technology development
       Changing public perception of motorsport as ‘addicted to petrol and tobacco’


                                                                                              12
Aims and Objectives

The EEMS project aims to encourage skills and technology that will be relevant and
attractive to the global automotive industry. By stimulating the development of new forms of
motorsport competition based on the efficient use of multiple fuel sources, the EEMS
programme aims to highlight motorsport as an effective development environment for road
car applications.

Activities to Date

The EEMS programme has been focused on introducing and facilitating the use of alternative
energy sources, while developing the means to regulate fuel flow under race conditions and
hence create true energy-efficient racing. Put simply those cars that make the best use of the
fuel consumed will have a competitive advantage.

In 2004, the EEMS programme supported Team Nasamax at Le Mans, where the team ran
its own chassis to new aero regulations with fuel equivalence. Results included two top ten
finishes in three Le Mans Endurance Series races, and a first ever race finish for renewable
fuel at the Le Mans 24 hours itself.

A Caterham 2R sports car developed by a team at Cranfield with EEMS backing was the
only road legal car entered in this year’s Shell mileage marathon at Rockingham Speedway.
It achieved the remarkable figure of 100mpg. The car will be further developed in 2006.

EEMS has focused on engine technical regulations working in collaboration with Ricardo. A
device capable of measuring fuel flow across a range of fuels and engines has been tested
in the British Touring Car Championship. Adoption of such a device by the teams would allow
cars powered by any fuel to compete on an equivalent basis, with allowance made for the
energy content of each fuel type.

The British Touring Car Championship (BTCC) attracts the largest motorsport crowds
outside F1 and enjoys extensive TV coverage. For the 2005 season, Triple Eight Racing
secured EEMS backing to convert a 2004 championship-winning Astra to run on a mixed bio-
ethanol/petrol blend in the championship. The car, driven by Fiona Leggate, the only female
driver in BTCC, ran strongly and finished the season using a blend of 90% bio-ethanol.
EEMS will continue to support Fiona Leggate in 2006 and the programme is negotiating with
BTCC to run an extensive trial of the fuel flow device with other competitors in future years.

Further information regarding the above work areas and other news can be found on the
EEMS website at www.eemsonline.co.uk.

Forward Plans

In 2006 and beyond, the EEMS programme will continue to apply the skills and expertise of
motorsport to developing environmentally friendly technologies, whilst concurrently seeking
to reduce the environmental impact of motorsport itself.

Further work to propose changes to technical regulations that will make it easier for teams
and manufacturers to race with alternative fuels and engine technologies on an equal footing
will be undertaken, and support will be given to certain existing teams that race with
alternative fuels and engine technologies or those that promote energy efficiency. This is
aimed to increase the demand for and expertise in relevant technologies and to work towards
the establishment of at least one motor racing series run on EEMS principles by 2008.




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Discussions with automotive industry leaders to re-establish relevant and fruitful connections
between UK motorsport, the high-performance engineering cluster and research and
development sectors of the automotive industry, will also take place. Widely engaging UK
motorsport and inspiring working relationships with Government, the automotive industry,
fuel companies and other groups involved in the development of EEMS, will also be high on
the agenda. Work to market and promote EEMS and widen interests in the concepts will also
take place.

Finally Motorsport Development UK will seek a single provider for the EEMS programme
moving forward, via a competitive tendering process. This will ensure the most appropriate
means of delivering our objectives is identified, best value for the public investment is
achieved and a means to sustain the programme beyond the initial tranche of funding is
secured.


Widening Participation

As a rule competitive motorsport tends to attract people from a certain demographic grouping
i.e. principally males over 35 years old with above average disposable income. In order to
ensure its future health and development, it essential that the sport broadens its appeal
across the spectrum of participation, from competition to spectating, from volunteering to
officiating. Such an approach will have clear impact on the economic success of the industry,
both in terms of productivity and also in the quantity and quality of jobs created.

This broadening of interest and involvement must transcend traditional boundaries. People
must be free to take part in all aspects of the sport regardless of their age, sex or socio-
economic background. Indeed the sport and its related activities can actively support work to
address some of the wider issues facing society as a whole, including the anti-social
behaviour issues that often surround vehicle ownership and illegal use.

In addition to this, the sport must also strive to identify and nurture talent. Only by widening
the opportunities to participate at the entry level, as well as supporting development
opportunities up to and including the top levels of the sport, will the continued growth and
success of the sport be assured.

Aims and Objectives

Since its inception, Motorsport Development UK has sought to work with Department for
Culture, Media and Sport, Sport England and the sport’s Governing Bodies for both four and
two wheels, to achieve its objectives in relation to widening participation. To date progress in
engaging with such partners has been less than we all would have hoped for. However
renewed effort to develop a joint approach in seeking support from Sport England is currently
underway – see the Forward Plans section below.

As stated previously, this programme is aimed at changing the demographic profile of the
sport. The Motorsport Competitiveness Panel report identified some of the ways that this
could be achieved. These are summarised as follows:

       Improve infrastructure, facilities and transportation links to make the sport safer,
       enjoyable and more appealing to participants and spectators alike
       Increase interest in the sport through strong marketing and promotion
       Develop both urban and rural leisure-related motorsport facilities, in order to provide
       safe and socially acceptable environments outside of traditional motorsport venues
       and their regulatory restrictions



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       Work to reduce the cost of participating in motorsport, strive to alleviate some of the
       more bureaucratic regulatory barriers and thus aim to reduce the amount of illegal
       events being undertaken, primarily in urban areas
       Train and encourage participants in safe driving, marshalling, vehicle maintenance
       and other aspects of the sport
       Encourage participation by women, ethnic minorities and people with disabilities. This
       should include actual participation at grass-roots level (karting or similar) and a
       program to bring participants through the infrastructure of the sport itself, to the top
       level if possible

Progress to Date

Despite the limited progress made in engaging our wider partners, we have successfully
made progress in relation to a number of the Competitiveness Panel recommendations. A
summary of the achievements to date is as follows:

The contribution of volunteer marshals and officials is essential to motorsport. However their
numbers are in significant decline. To actively address such decline, the Volunteers in
Motorsport plan has been developed in conjunction with the Motor Sports Association and
the Auto-Cycle Union, who will oversee its delivery and implementation. The plan will provide
structured and accredited training to enable progression, increased satisfaction and the
recognition of the volunteer’s skills in the workplace. The plan will research and identify
barriers to participation, particularly for women and ethnic minorities, who are currently under
represented. When implemented, we will aim to recruit new volunteers from all parts of the
community.

In its first full year (2006), the programme will deliver a documented training instructor
accredited qualification and a marshal’s training and grading scheme, which will include a
Team Leader Award accredited as NVQ level 2. Twelve new instructors will be trained, 60
instructors will take part in refresher training and a further 2,000 volunteer marshals,
including 145 new recruits will attend 22 scheduled training events. Further information
regarding the programme can be found at www.volunteersinmotorsport.co.uk.

Karting plays an important part in identifying and developing young talent. Motorsport
Development UK will aim to facilitate the creation of three international standard karting
circuits in the UK. To date we have supported a feasibility study into extending the circuit at
Buckmore Park in Kent. The aim of this work is to combine the development of an
international standard facility, with the creation of a Technology Centre that will provide
training facilities to be used by local colleges, particularly in relation to students currently
underperforming in their studies. The outcomes of the feasibility study are expected shortly.

The Local Authority Support Unit seeks to address the growing problem of illicit and illegal
off-road motorcycling and to a lesser extent the use of mini-bikes and 4 wheel drive vehicles.
The Unit, which is led by the Auto-Cycle Union, provides professional advice to Local
Authorities and other landowners regarding the benefits of providing facilities for off-road
motorcycling and 4x4 use. It also advises on best practice in establishing such facilities and
on overcoming common problems experienced by providers. To date 14 Local Authorities
have received advice and guidance, which has resulted in 2 facilities being opened already –
no mean feat given that the unit only came into existence in January 2005.

Over the next 3 years, the Unit will advise and support over 130 Local Authorities, which is
expected to lead to the creation of 33 new off-road motorsport facilities and the preservation
of 47 more. This in turn is forecast to create 66 new jobs and lead to 680 new competition
licence holders.



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Motorsport Development UK has worked with the British Racing and Sports Car Club
(BRSCC) to create the CruiseSport programme. Its objective is to engage a growing
number of young people (17-30) who already come together in small, unstructured groups to
take part in cruising activity. This fashion conscious form of motorsport includes participants
from many diverse ethnic backgrounds and also involves a growing element of female
participants.

In the last year, CruiseSport has held 14 events across the UK and is targeted to deliver a
further 41 by 2008. 8,000 new participants have also been recruited against a target of
18,000. In addition to this, they have developed guidelines for legal cruises that can be
applied to their own or others events. CruiseSport is seeking to work more closely with the
governing body (MSA) in order to arrange permits for competitive activities, as it does
currently with Local Authorities in order to arrange permits for convoys and events.

CruiseSport have also held their first bespoke training day at Castle Combe in October 2005.
28 participants took part on the day, which focused on road driving and safety. The
programme will be expanded in the future in order to train a further 150 people.

For further information, please visit the CruiseSport website at www.cruisesport.com.

Women are hugely under-represented in all forms of motorsport. To date our activities in
relation to their engagement have been limited to working with the Motorsport Industry
Association and the British Women Racing Drivers Club to promote opportunities for Women
in Motorsport at Autosport International in 2005. Together they signed up nearly 400
women who wanted to participate in motorsport and we are now seeking ways to build upon
this interest. We are also delighted to be supporting Fiona Leggate, who competes in the
British Touring Car Championship in a bio-ethanol fuelled Astra car with backing from the
EEMS programme.

Future Plans

As stated earlier, there is now a renewed impetus to our work in respect of the Widening
Participation agenda. We have recently met with representatives from Sport England,
Department for Culture, Media and Sport, the Motor Sports Association and the Auto-Cycle
Union. We have agreed to form a project group to jointly lead the development of a whole
sport plan, which it is hoped will be developed and implemented before the end of the
current calendar year. The plan will seek to address the full range of issues facing the sport
including youth development, community engagement, talent identification, social inclusion
and much, much more.

In addition to the whole sport plan, we will continue to work with our partners to deliver and
build upon the excellent work undertaken to date.


Motorsport Academy

It has been recognised in the Motorsport Workforce Development Plan and the Motorsport
Competitiveness Panel Report that the retention and development of motorsport in the UK,
as the global leader and worldwide centre of excellence, requires a coordinated and
continuous process of education, training and accumulation of knowledge. Put simply the
motorsport industry needs the very best engineers, technicians, and mechanics, with the
knowledge, skills and attitude to succeed in today’s competitive marketplace.




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To meet the requirements of industry, the Motorsport Competitiveness Panel identified the
need to establish a Motorsport Academy to coordinate and quality check the plethora of
education provision related to motorsport.

Aims and Objectives

The Motorsport Academy programme will manage the creation, development and start-up
funding of a single national organisation to coordinate provision of the highest quality
education and training to meet the needs of the motorsport industry. The programme will aim
to help sustain and develop the motorsport industry by:

       Improving the quality of skills and expertise of the workforce
       Increasing the pool of better skilled resources
       Improving career development
       Increasing interest in motorsport education
       Improving the quality of education and its alignment with industry needs
       Improving collaboration and communication between industry, education providers
       and individuals

Progress of the Motorsport Academy Programme to date

The Academy programme commenced in early 2004. Over the past 2 years a number of
focused projects – see below – were initiated, to ensure the Motorsport Academy programme
could realise some of its aims, whilst the issue of management and delivery was being
resolved. In July 2005, Motorsport Development UK took legal advice to ascertain the best
way forward in resolving the issue of how best to manage and deliver the Motorsport
Academy. The result was the issuing of an open competitive tender, via the Open Journal of
the European Union (OJEU). This provided a platform that all parties who were interested in
bidding for the management of the Motorsport Academy would have an equal opportunity to
do so, whilst at the same time ensuring that value for money was achieved.

Activities to Date

Work to develop National Occupational Standards at Levels 2 and 3 commenced in 2004.
It continues to be led by the Sector Skills Council for Science, Engineering and
Manufacturing Technologies (SEMTA). The Level 2 standards were completed in August
2005 and Level 3 will be ready by April 2006. Once completed, it is anticipated that a second
phase for Levels 4 and 5 will be established.

Motorsport Development UK has defined a Quality Assurance process needed for
education providers to be assessed within a common framework, as to the suitability of their
organisation, their course material and delivery capability. The implementation of this quality
process will be led by the new national provider.

In September 2004, we set out to create an easily accessible, single database of all
national education providers. This internet based media is now complete with over 170
providers listing over 300 motorsport related courses. The next step is to consolidate this
database into the proposed national provider’s infrastructure. This will be done in late 2006.
The database is available at http://courses.motorsportacademy.org.

Launched in September 2005, the web-based Careers Portal is aimed at addressing the
imbalance of larger industry companies receiving the most applications for vacancies against
the smaller companies receiving very few. The portal will allow a broker service between
companies and applicants within a level playing field. The portal is available at
http://www.motorsportcareers.com/portal/default.asp.


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Forward Plans

In February 2006 the Board of Motorsport Development UK endorsed the selection of a
preferred partner to manage and deliver the Motorsport Academy. Work to agree Heads of
Terms, to formally appraise the proposal in order to ensure compliance with the criteria
applied to Regional Development Agency funding, and the development of formal contracts
is ongoing. It is expected that formal announcement will be made in late spring, early
summer.

Beyond this, Motorsport Development UK will work closely with the selected provider to
ensure that the targets and aspirations of the Motorsport Academy are delivered such that
the UK motorsport and high performance engineering cluster is supported by well-trained
and motivated staff.


Conclusion
Motorsport Development UK was established with the express purpose of sustaining and
developing a vibrant and internationally renowned motorsport cluster and, in the process,
making a major contribution to UK plc. Our work to date has been instrumental in bringing
about a new focus and coherence to investment that had previously been ad-hoc and lacking
a strategic basis.

If the UK is to retain its position at the forefront of the global motorsport industry, it is vital that
government support is retained and channelled to maximum effect. Emerging economies in
China, India and the Middle East have recognised the power of motorsport to attract
sponsorship and skills, to build supply chains for high performance engineering companies
and to generate jobs. The UK cannot afford to be complacent about the role and position that
we hold and we must continue the process of effective investment in this economic asset.

We look forward to the continuing support of all our stakeholders.




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