Building Local Business on Firm Foundations - Richard Brucciani, Executive Chairman, PAL International
 

When it comes to infrastructure issues that affect the local economy, its easy to think that we could scream from the rooftops and still nobody would take a blind bit of notice. I came to realise through many years of working with the CBI, that it helps to perch yourself on the right rooftops. You’ll be amazed at just how much influence business people can have in helping politicians to frame their policies and to implement change. Remember, Politicians, by the very nature of the task that we give them, spend a lot of time grappling with issues beyond their experience. We can help fill the gaps in their knowledge and reinforce these with the snapshots of the wider reality that is often missing from their viewfinder. 

There are many infrastructure components that make a difference to our local economic performance. We have heard from Chris about ….. And Mick McLoughlin will cover the essential need to boost our competitiveness with a county wide ICT strategy. I’d like to look at transport, business premises and the big powerhouses, our local authorities. 

Transport is an old chestnut. Leicestershire is well placed within the UK’s road and rail network, centrally situated, with 75% of the population within 2 hours drive, it’s a marketing dream. No coincidence then, that Magna Park is one of Europe’s major distribution points. But have we really maximised our potential in this area, could we make it better? Have we been smart in putting Leicester on the map? 

At a local level, politicians will say transport is a national issue and out of their hands. We all know that there is no viable transport policy coming out of Westminster so what can we do locally? Basically, make a fuss. And the louder it is the more likely it will be to get funded. We’ve got a prime site on the national road and rail network. But the way we get people in, out and around Leicester is pretty poor. 

From the M1 you leave junction 21 to drive through the main gateway into the city, a queue down Narborough Road, not an impressive entrance. Arrive by train, at Leicester station to catch a bus to your destination – but why is there no bus station? Arrive by plane at the local East Midlands Airport; is there a shuttle train, or any train to Leicester? Forget all this travelling; let’s live in nice rural Leicestershire. Up bright and early to drive to the city. Remember we are regenerating Leicester which is great; we are building an office quarter at the bottom of London Road which is marvellous. But – we have a single lane road, most of the way from Oadby to the centre. Yesterday at 8:30am there was a 2 mile queue, in 3 years time there will be 4,000 additional people working in the new office quarter, how long will the queue be then?
 
The only way to tackle these challenges is with boldness… ambitious proposals that look forward to the long-term… these issues are bigger than the interests of today’s politicians, they involve the future of Leicester, both city and county well after the next election. 
Issues such as the ring road… a main feeder road into the city… sensible public transport that incentivises people to leave their cars at home/ and charges them for unnecessary use of their cars… pedestrianisation… getting more freight back onto the railways… joined up transport, park and ride….all need very long term planning. Big issues need big ideas and a vision for the future that gives Leicester not just the best geographical location in country but also the best transport system in the country. And if we struggle to believe we can do it then look at other cities in other countries to see what can be achieved. And to do this let’s be bold and make a fuss. No one else outside Leicestershire is going to help us unless we start helping ourselves. 

This of course requires a new kind of relationship between the city and the county and no repeat of squabbles the have blighted such things as Park & Ride. Let’s work for a transport infrastructure that reduces the cost of doing business, improves the quality of life and makes Leicester central, not just in the atlas but also in people’s investment plans. And when we get investors wanting to set up business here in Leicestershire, where are they going to work? 

When it comes to finding premises I know all too well how difficult this can be. It has taken my company two years to find premises. Of course Pal International is a manufacturing business and there are, alas, an increasing number of people who believe we are in the post manufacturing era. The fact that we can manufacture profitably in Leicestershire, that we can export most of what we make, that we can employ more people next year than last year, that we can innovate and be a world player, all seem to pass people by. 

The strongest economies are mixed economies and this means that we must cater for all types of businesses in planning our use of land. Service industries need manufacturing customers just as much as manufacturers need training providers, bankers, insurers and IT specialists. 

If we don’t have the right premises for people to work, we won’t have a mixed economy and we will be vulnerable in the longer term. 

Why have we got the problem? Simple- we have a theoretical plan allocating land for employment use. It involves many structural, social and economic aspects. What it doesn’t do however is recognise basic market forces. There is a clear pecking order of value in the market place. Big bucks can be made by selling your land for retail use, failing that go for residential, if you only get employment use permission then build offices. Alas, selling land for manufacturing is pretty well a last resort, sitting just above landfill. 
So Leicestershire landowners know that if they hold off releasing land for manufacturing then they might just get lucky and double their money with a residential permission or more again for retail use. 

We then have the perversity of the local planners saying that there is enough employment use land in their plans and no more should be permitted, even though landowners refuse to release their land onto the market. So the theory of the plan happily ignores the reality of the market. This is further exacerbated by local authorities themselves holding on to land designated for employment use hoping to earn more in the future for housing. All done in the name of maximising value, but unfortunately adding to the cost of doing business in Leicestershire and discouraging a balanced, sustainable local economy. Surely local authorities should be working against the failure of the local market to provide employment land, not encouraging it. 

Maybe this is another example of how the relationship between the business community and local authorities has become a dysfunctional one. We do not seem to have developed the right mechanisms for developing a common view and working together to create an improved environment which benefits both business and the community for the common good. There may be a few initiatives and pockets of activity but these are few and far between. 

For most businesses this probably doesn’t matter. At best they live alongside local authorities, at worst they see them as an enemy to be avoided. But we avoid developing an effective relationship at our peril. Much of the infrastructure that leads to success or failure of our businesses is in the hands of local authorities. Much of the knowledge about how to improve that infrastructure is in the minds of local business people. How do we bring this together? 

I believe that we could gather an effective group of business leaders to work proactively and help drive through new initiatives. In fact we already have the Chamber of Commerce, Leicestershire Business Voice, the Institute of Directors, LABA, the CBI, and Engineering Employers. A pragmatic approach from these organisations would soon create an effective Leicestershire consensus on the business view. It already works at Regional level. 

The question is - can this be matched in the public sector? Following this month’s elections will the City Council get its act together and provide clear leadership? If not, then an elected Mayor must be top of our agenda. 

At the same time can City and County start working more closely together? They both depend on each other and to create borders and barriers is not only a waste of taxpayers’ money, it also handicaps our city and our county in developing effective strategies for economic and social success. 

Meetings between City and County must not be allowed to descend into an atmosphere of distrust, with point scoring becoming more important than making key policy decisions. Nonsenses like using the name Leicester (space) Shire rather than the name Leicester or Leicestershire should not be part of the agenda. If they are then frankly, people outside the public sector will walk away. We have more important things to do than play silly games. No one owes Leicestershire people a living, we have to get out their and earn it, which means having the leadership, infrastructure and industry necessary to compete in this unforgiving world. 

I make a plea for the business community to be prepared to work more closely with the public sector with the condition that the public sector gets its act together to provide clear leadership, apply common sense for the success of both rural and urban Leicestershire. 

We may not be on a rooftop to shout all this but I hope the message gets out loud and clear.