Chamber News

Iain Wright, the Shadow Minister for Competitiveness and Enterprise at the Department for Business, Innovation and Skills visited the Norfolk Chamber yesterday to listen to the views of Chamber members on topics including: access to finance; the proposed British Investment Bank; and what is holding back economic growth for Norfolk businesses.

Members highlighted that many profitable local businesses were struggling to access finance, as the current banking regulations could prove to be very onerous and credit decisions often took too long. Members felt that the changes in staffing levels/structures inthe banks, meant that local bank managers no longer had regular interaction with the business community and therefore lacked aspects of key local knowledge.

In addition, the central lending decision makers did not have an understanding of the local market conditions, or a long term relationship with that business on which to base their decision, all these factors could lead to lending requests being rejected. Overall the group thought that the idea of the British Investment Bank was a good, but they stressed the importance of local infrastructure to ensure local market intelligence was taken into account and

The new bank should be complementary to the existing banking system. The general consensus was that the British Chambers of Commerce proposed model, which recommends that the current banks be offered first refusal on the requested finance and, should they not be willing/able to facilitate the loan, then the British Investment Bank would consider the request. Everyone was adamant that the new bank should not be run by politicians.

Caroline Williams, CEO of Norfolk Chamber highlighted the determination of Norfolk businesses to continue to forge ahead in challenging economic times – through innovation, hard work and diversification to ensure economic growth in Norfolk continues to flourish.

Read updates issued by the Export Control Organisation including details about imposition of arms embargoes, Open General Export Licence amendments or announcements about Control List changes.

Notice to Exporters 2013/15 The Strategic Export Control Transparency Initiative – actions to meet government transparency requirements on usage of Open Licences – will not now begin operating during July, as indicated in Notice to Exporters 2013/14.

Notice to Exporters 2013/16 Croatia became the 28th Member State of the European Union on 1 July 2013. From this date, you will not need a licence to export dual-use items to Croatia (except those listed in Annex IV to the Regulation). However, the requirements of Articles 22(8) and (9) (record keeping in relation to items transferred within the EU), and of Article 22(10) (commercial documentation to state that a licence would be required if the items were to be exported from the EU), of the Regulation will apply to transfers within the EU.

Notice to Exporters 2013/17 A number of Open General Export Licences have been amended, as a result of Croatia becoming a Member State of the EU from 1st July 2013

China is the most significant economic success story of the past 30 years and, along with rapid and continuous industrialisation, a large and fast-growing consumer market has emerged.

China is now not only the biggest automotive & ICT market in the world, it is also the 2nd largest market for luxury goods after Japan.

As part of their ongoing engagement with business, the China-Britain Business Council (CBBC), in conjunction with HSBC, UK Trade & Investment (UKTI) and other regional partners, is running a series of China Business Clinics across the East of England.

Whether you are just starting to look for opportunities in China or planning to develop your existing activities, you may benefit from taking part in one of these clinics.

You will have the opportunity to discuss on a one-to-one basis matters ranging from the market potential for your products or services, to how to establish a presence in the market, as well as the support and services available to help you develop your business in China in a cost effective way. HSBC staff will also be on hand to answer your questions on trade finance and payment issues.

The Norwich Clinic takes place as follows:

Thursday 18 July 2013 at HSBC House, 21 Meridian Way, Meridian Park, Norwich, NR7 0TA

Each session will last 45-60 minutes and bookings will be taken on a first-come, first-served basis.

Please take a look at the event flyer for more details. To book your place, click here.

July 2013 (Based on June 2013 data releases)

The British Chambers of Commerce have released their monthly economic review for July 2013. Their report highlighted that the Spending Review still shows that repairing the UK’s public finances continued to be a major challenge, however the latest BCC Quarterly Economic Survey had shown that there had been more economic growth in Q2, but key risks to the UK economic outlook still remained. The full report is attached.

The round table discussions at the Bank of England Lunch highlighted that, whilst Norfolk businesses are operating in the current challenging economic climate, there are many positive stories. The agricultural sector advised that they are doing well at present and, with confidence improving, many businesses are planning for the future by investing in new plant, machinery and training.

Many determined businesses are diversifying to take advantage of new opportunities and are looking for new markets, including overseas. Norfolk exports continued to go from strength to strength, however there are still some challenges, such as the need for the banks to be less risk averse in their approach to lending to enable exporters to access new overseas markets more easily.

Tracey Howard, International Trade Director for Norfolk Chamber of Commerce said: “In the current challenging times, exporting is a key aspect to prosperity for many local businesses. Norfolk exporters continue to show resilience and will help drive economic growth. June was a record month for the Chamber processing export documentation, reaching the highest number we have ever recorded in one month”

Norse Catering has just finished running a series of roadshows, aimed at talking directly to it’s team of cook managers, dining assistants and mobile staffworking in Primary Schools across the county.

Eight events, entitled the’ Norse Primary Catering Roadshows’, addressed a wide range of opportunities and challenges affecting the company’s staff who are employed at Primary Schools across the county, as part the contract with Norfolk County Council.

A total of over 330 staff attended the two-hour long presentations and discussions, covering topics that included new menu plans, changes to account management structure, new uniform options, updates to the quality manual to reflect the revised standards set by Environmental Health and an open forum on ‘wish lists’ and ‘ideas exchanges’ from attendees.

“We have a great team of really hard-working staff out there in Primary School kitchens,” said Terrance Issac-Griffiths, Head of Catering Operations at Norse Commercial Services. “We wanted a chance to let them know first-hand about some of the exciting plans we’ve got for Primary School meals, and to hear their views and feedback on a wide range of issues that affect their working day and environment.”

“Because we’ve got over 300 schools spread all across the county, a series of roadshows at different locations looked to be the best was to give as many as possible the chance to attend, and the feedback we’ve had confirms this. “

Part of the feedback process involved building an ‘ideas wall’: participants wrote actions they would like taken, and ideas that have worked for them, onto sheets of paper that were attached to boxes which were then built into a wall for all to see and discuss.

“This worked really well,” commented Commercial Director Mark Emms, “there were some great ideas that staff have found to work well and they wanted to share with others, and some clearly thought out suggestions for improving and developing various aspects of our service.”

The catering team are also looking at ways of engaging more with the schools children and parents by introducing cooking related activities and displays. “We are planning recipe cards that they can take home, displays of fresh food and herbs at the serving areas to stimulate questions, and incentives that will reward the children for taking an interest in food,” said Senior Account Manager Linda Bufton.

Norse helps schools aiming for Food for Life Awards with skill development and food education; currently there are 55 Primary Schools in Norfolk with the Bronze Award and six who have achieved Silver status.

Joshua Davies from FXhome talks about why his company is well connected by being a Member of the Norfolk Chamber

The village of Croxton near Thetford, has today (Friday July 5) become the first community in the county to get connected to high-speed fibre broadband under a partnership between Norfolk County Council and BT.

Dozens of homes and businesses in the village can now access the new broadband technology, which provides download speeds of up to 80Mbps and upload speeds of up to 20Mbps , with the potential for even faster speeds in the future.

Ed Vaizey, Minister for Culture, Communications and Creative Industries, said: “Access to superfast broadband will play a key factor in driving growth and boosting local economies around the UK. Norfolk was one of the first local authorities to bid successfully for funding under the framework contract, and I’m delighted that they’re also one of the first counties to be enjoying much faster speeds as a result.”

George Nobbs, Leader of Norfolk County Council, said: “We announced only last month that around 3,500 homes and businesses at about 30 locations in Norfolk will be able to access better broadband earlier than anticipated. There will be more and more of these announcements in the coming months and by the end of 2013 we will be well on our way to transforming our broadband landscape forever.”

Caroline Williams, chief executive of Norfolk Chamber of Commerce, added: “It really is great to see this important milestone towards the Norfolk business community getting the faster broadband they need to the drive Norfolk’s economy forward.”

Bill Murphy, BT’s managing director for next generation access, said: “It is a fantastic achievement that people in Norfolk are already seeing the benefits of this programme. This investment in fibre broadband will boost the local economy and help to create or protect local jobs both in communities like Croxton village and across the whole of Norfolk. It will be of enormous benefit to local businesses which can use the faster speeds to improve their competitiveness both within the UK and abroad.”

George Freeman, MP for Mid Norfolk who has led for Norfolk MPs on broadband issues, commented: “It is excellent news that the first area to receive fibre broadband services in the UK under the BDUK framework is in Norfolk. This, alongside further investment in our communications and transport infrastructure, will enable Norfolk’s economy to thrive.”

The Better Broadband for Norfolk programme was launched to help large parts of Norfolk that currently suffer from slow or no broadband access. In 2011 the council pledged £15 million to the scheme, and this was matched by central Government as it became one of the first local authorities in the UK to be successful in bidding for BDUK funding under the framework contract.

In addition to covering the ongoing costs of supporting and maintaining the network, BT is making an £11 million contribution towards the cost of installing the fibre infrastructure, bringing the total capital investment in the project to £41 million. The deal between BT and the County Council means that more than 80 per cent of Norfolk’s homes and businesses are expected to be able to access high-speed fibre broadband services by the end of 2015. The programme also aims to provide all homes and businesses with a minimum broadband speed of 2Mbps within the same timescale.

For more information about the Better Broadband for Norfolk programme and to view the full list of the first 30 communities to benefit from the intial tranche of the Better Broadband programme, visit www.betterbroadbandnorfolk.co.uk.

A Public Inquiry begins tomorrow (Wednesday 3 July) into the Slip Road and Side Road Orders for a planned improvement of the Postwick interchange at the eastern end of the A47 Norwich Southern Bypass.

The junction proposals are being put forward at the Inquiry by Norfolk County Council and the Highways Agency*. The proposals received planning consent from Broadland District Council in October 2011 but also require the approval of the Slip Road and Side Road Orders before the project can proceed.

The Inspector, Mr David Wildsmith, will open the Inquiry at 10am tomorrow (Wed) at the Kings Centre, King Street, Norwich. He will hear the case for the promoters, the supporters, the objections and otherrepresentations.

The Inquiry is currently scheduled to sit for 12 days, closing on Thursday 25 July**. (It will not be sitting on Mondays, or Tuesday 16 or Wednesday 17 July.)

After closing the Inquiry the Inspector will submit a report to the Secretaries of State for Transport and for Communities & Local Government, together with his conclusions and recommendations. The Secretaries of State will then decide whether the Orders should be made.

Norfolk exporters will have the opportunity to discuss the economic climate in Norfolk and the export opportunities that are available to local businesses with Tim Pike, the Bank of England’s Agent for the East of England at the Norfolk Chamber’s Bank of England Lunch on Friday 5 July 2013.

This is on the back of the recent BCC Quarterly Economic Survey (QES) Quarter 2, which highlighted that both the Norfolk manufacturing and service sector export levels continued to be robust. Norfolk’s manufacturing export levels exceeded both the national and East of England results. Whilst the Norfolk service sector export results matched those of the East of England region and surpassed the national totals.

Tracey Howard, International Trade Director at Norfolk Chamber of Commerce said: “Despite the tough economic climate, Norfolk exporters continue to gain strength and are demonstrating the necessary resilience and confidence to invest and increase their export potential.”

Norfolk exporters will have the opportunity to discuss the economic climate in Norfolk and the export opportunities that are available to local businesses with Tim Pike, the Bank of England’s Agent for the East of England at the Norfolk Chamber’s Bank of England Lunch on Friday 5 July 2013.

This is on the back of the recent BCC Quarterly Economic Survey (QES) Quarter 2, which highlighted that both the Norfolk manufacturing and service sector export levels continued to be robust. Norfolk’s manufacturing export levels exceeded both the national and East of England results. Whilst the Norfolk service sector export results matched those of the East of England region and surpassed the national totals.

Tracey Howard, International Trade Director at Norfolk Chamber of Commerce said: “Despite the tough economic climate, Norfolk exporters continue to gain strength and are demonstrating the necessary resilience and confidence to invest and increase their export potential.”

• BCC’s Quarterly Economic Survey for Q2 2013 shows further progress, with many of the key balances in Norfolk stronger than in Q1 2013.
• Manufacturing export orders figure in Norfolk exceeded the balances of both the East of England and the overall national figure.
• Service export orders, despite a small drop is still showing a strong balance, which continues to be higher than the national level.
• Norfolk business remains resilient, and confidence is rising, despite most balances remaining below their pre-recession levels in 2007
• Caroline Williams: “The sheer strength of our export balances shows that companies have untapped potential to expand. It must be recognised that recovery will only be turbo-charged if we can create a truly enterprise-friendly economy in Norfolk.”

The British Chambers of Commerce’s Quarterly Economic Survey (QES) released today (Tuesday) shows that the economy has made further progress, but that there are still some risks at home and abroad that could derail the recovery. The new survey, made up of responses from over 7,400 businesses, shows that many key balances strengthened in Q2 2013 compared with the previous quarter.

The export levels remain strong, with manufacturing export orders figures showing a strong increase which exceeds not only the East of England levels, but the national figures as well. The service export orders, despite a small drop, still showed a strong balance, which was matched by the East of England figures and exceeded the national total. It is encouraging that, despite the dip in employment levels from the last quarter, both sectors are expecting to recruit more staff over the next 3 months. Despite these welcome improvements, it is disappointing that cashflow remains weak and the service investment balances fell in the quarter.

The findings suggest that the economy will continue to strengthen gradually over the next year, with growth slowly improving. The results also demonstrate resilience among Norfolk businesses, who continue to feel confident and are looking to invest and increase exports this year.

Key Norfolk findings in the Q2 2013 BCC survey:

• Norfolk manufacturing export figures remain strong, with both sales and orders increasing this quarter.
• Service sector export balances in Norfolk dipped but are still showing robust figures, which are considerably higher than the national levels.
• Both sectors have tried to recruit over the last 3 months and both are forecasting more recruitment over the next 3 months.
• The manufacturing sector’s business confidence in both their turnover and profitability has increased and they are investing in plant and machinery and training.
• The service sector’s business confidence has dipped, which is also reflected in their lack of investment in plant, machinery and training.
• Cashflow remained weak for both sectors, with the negative figure for manufacturing falling still further from a negative position of -7% to -17%. The service sector fell from 0% to -11%.
• Overall, the Q2 results support our view that the economy will gradually strengthen over the next year, but many challenges remain.

Commenting on the results, Caroline Williams, CEO Norfolk Chamber of Commerce, said:

“Despite gloomy media headlines in recent months, our economic survey once again shows increased, but cautious business confidence. Norfolk firms are determined to make progress.

“It is incredibly encouraging to see export deliveries reach high levels, and the expected upturn in employment balances is reassuring in spite of the risks at home and abroad. However the falls in the service investment balances and the weak cashflow balances in both sectors are a warning that economic growth could be slow, and a reminder that a sustained upturn cannot be taken for granted. For these reasons, business access to finance, and working capital in particular, must be assured.

“Norfolk firms are doing their utmost to drive recovery. The sheer strength of our export balances shows that companies have untapped potential to expand. It must be recognised that recovery will only be turbo-charged if we can create a truly enterprise-friendly economy here in the Norfolk. That, in turn, requires more support for exporters seeking to enter new markets, far more action on finance for growing companies, and support and commitment from the government to enabling the private sector to generate wealth and prosperity.