Agenda item

Progress Report on the Development of the Oceansgate Enterprise Zone and a General Employment Update

Minutes:

Councillor Evans OBE (Leader), David Draffan (Service Director for Economic Development), Patrick Hartop (Head of City Deal), Nina Sarlaka (Enterprise and Inward Investment Manager) and Robert Watson (Marine Business Technology Centre Director) presented the progress report  which highlighted the development of the Oceansgate Enterprise Zone, as a key employment site in the City for marine businesses and a major centre for innovation and collaboration, together with a general update on employment trends and other key employment initiatives.

 

(a)

in 2014 as the flagship project of Plymouth and Peninsula City Deal, the Government allowed the Council to negotiate the transfer of 7.5ha of South Yard from the MOD to local authority ownership which enabled the development of Oceansgate as a major marine hub; in 2015 Oceansgate was designated as an Enterprise Zone;

 

 

(b)

the marine sector was Plymouth’s largest and most productive sector directly employing around 7100 people which accounted for 21% of the UK’s marine manufacturing sectors;

 

 

(c)

progress to date included –

 

 

 

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the completion of Phase I in May 2018 which created 177 jobs (99 construction jobs) and accommodation comprising of Endurance Court and Endeavour House;

 

 

 

 

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funding for Phase 2 was currently being assembled (£13.4m which included £2.2m of ERDF); construction was due to commence in April 2019 with completion in Spring 2020; accommodation provided would include one office and three light industrial units which would create 150 jobs (99 construction jobs);

 

 

 

 

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the Devonport Naval Heritage Museum occupied a number of buildings on the site and the Council was in negotiations with the National Museum of the Royal Navy to relocate the museum to South Yard;

 

 

 

 

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Phase 3 incorporated the waterfront which was the largest but most challenging phase; the Council’s strategy was to attract a strong presence of innovative marine businesses that required access to in-sea test facilities;

 

 

 

(d)

employment headlines included -

 

 

 

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the City had marginally more people economically active (75.2% per106,000) than nationally (74.8%);

 

 

 

 

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claimant unemployment was at the lowest rate for 10 years (4,825);

 

 

 

 

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workers in the City earnt approximately £519.90 per week compared to £538.70 nationally;

 

 

 

 

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the growth in the private sector, between 2011 and 2016 had been mostly in construction, accommodation and food services, self-employment and manufacturing;

 

 

 

(e)

the Council’s employment interventions which aimed to create economic growth included –

 

 

 

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continuing to build additional factories such as Header Court;

 

 

 

 

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support for the City Centre and Waterfront Business Improvement Districts;

 

 

 

 

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drawing inward investment to crease high value and volume jobs such as Fugro, Thales, BD and Sitel;

 

 

 

 

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continued support for Plymouth Science Park;

 

 

 

 

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business support through Business Relationship Programme, Growth Hub, Start UP, Growth Support Programmes;

 

 

 

 

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sector support such as Marine Business Technology Centre, Connected Plymouth, Destination Plymouth, fisheries support, defence industry support;

 

 

 

 

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provision of Plymouth City Council managed workspace at City and East End business centres;

 

 

 

 

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ensuring that the Council’s work with the voluntary and community sector, social enterprises, cooperatives and mutuals created inclusive economic growth.

                           

The key areas of questioning from Members related to –

 

(f)

whether the link between the Marlborough Street shopping district and Oceansgate would be improved;

 

 

(g)

the risks associated with the delivery of Oceansgate Phase 3 due to the unavailability of EU funding;

 

 

(h)

the timescales associated with the delivery of the Devonport Naval Heritage Museum;

 

 

(i)

whether the Council would be putting in place measures to assist Barden Corporation UK relating to the recent decision to close the factory with the loss of 400 jobs;

 

 

(j)

whether work was being undertaken with the 1025 18 to 24 year old claimants regarding training and apprenticeship opportunities within the City;

 

 

(k)

with the predicted negative growth of the City’s population (in the 16 to 64 age group) from 2018 to 2023 was the planned provision of housing developments still required;

 

 

(l)

why the electricity industry had seen a decrease between 2011 – 2016 in full time equivalent jobs within the City, when during this period the incinerator had come on-line.

 

The Committee requested the following information –

 

(m)

the number of jobs per sector which indicated growth and the decline in number rather than shown in percentages;

 

 

(n)

analysis of data regarding the gender split for part time jobs in the City;

 

 

(o)

the provision of further detail relating to the north and south divide of the City, in terms of average weekly wages (as not performing as well as the national average).

 

The Committee noted the report.

Supporting documents: