Chamber News

Norse Commercial Services has signed the latest partnership in its growing portfolio of highly successful local authority Joint Venture Companies (JVCs), forming Medway Norse with Medway Council.

Medway Norse will start trading on the 1 June 2013, providing facilities management services that include cleaning, catering and maintenance for the council’s 140 buildings and for other local organisations The 10-year, £7 million a year agreement is the first of its kind in the South East.

Geoff Tucker, Norse’s Sales Director, said: “We are delighted to be working with a progressive council like Medway, using our experience and commercial expertise to deliver cost savings, and at the same time preserving local jobs and maintaining high quality services.”

“Norse currently has 19 joint ventures with local authorities in the UK,” he added. “The business model is now well proven in helping our partners respond to budget cuts, whilst maintaining and improving frontline services. Medway Norse will also create income for the council by bidding for additional work.” Medway Norse is committed to spending 40% of its budget with contractors who are small or medium sized local businesses, reflecting the firm’s commitment to supporting the local economy.

Medway Council Portfolio Holder for Finance Cllr Alan Jarrett said: “Medway Norse will allow us to continue to protect front line services for the people of Medway while providing value for money. This ground breaking joint venture, with a well-established company that understands the needs and operations of the public sector, offers an opportunity for Medway to share in the profits the joint venture company makes by attracting new contracts from across the South East.”

Norse Commercial Services is the UK’s leading service provider in this type of local authority JVC, and has a forward order book of nearly £1.8 billion.

• British banks and building societies drew down £2.6bn in Q1 2013 from the Funding for Lending Scheme.
• Net lending to businesses decreased by £300m in Q1 2013

Commenting on the latest figures on the Funding for Lending Scheme (FLS), Caroline Williams CEO Norfolk Chamber of Commerce said:

“Although the £300m fall in lending was a smaller drop than the previous quarter, it is a concern that lending continues to contract despite the Funding for Lending Scheme having been in place for nearly a year. It is also worrying that usage of scheme seems to have dropped significantly since the end of 2012.

“The real test for Funding for Lending is whether it is able to get credit flowing to Norfolk’s young and fast-growing small businesses. Unfortunately many of these small business with aspirations to grow are still being left out in the cold when it comes to accessing finance, which prevents them from expanding, creating jobs and helping to drive a business-led recovery. These figures give weight to the argument for the swift delivery of a British Business Bank, which must have both the scale and the infrastructure needed to help young firms grow.”

More details: https://www.bankofengland.co.uk/markets/Pages/FLS/data.aspx

Abellio train operator Greater Anglia has reported its best-ever period of punctuality with 95.7% of all trains on time for the four-week performance period from 28 April – 25 May 2013.

Greater Anglia has consistently delivered improvements in train punctuality since taking over the franchise in February last year, and for the 28 April – 25 May 2013 period, punctuality for the various route sectors of the Greater Anglia network was: Metro & Southend 98.1%, Mainline 96.3%, West Anglia 94.6%, Rural 93.9% and Stansted Express at 93.4%.

This further improved performance by Greater Anglia has also seen the moving annual average (MAA) punctuality figure – which measures performance over a 12 month period – again at a new high of 92.6%, the best MAA figure recorded so far for the Greater Anglia franchise area, which was established in 2004. The current 12 month MAA punctuality for both the Mainline (91.7%) and Stansted Express (90.1%) services are the highest recorded since 2004.

Individually, for the 28 April – 25 May 2013 period, five of Greater Anglia’s rail lines recorded their highest-ever four-week period of punctuality under the current franchise structure. The Norwich to London Intercity service achieved a punctuality of 95.4% and in Essex the services from London to Chelmsford, Witham and Colchester (plus the Clacton, Frinton-on-Sea and Walton-on-the-Naze branches) recorded 96.5%. The London to Shenfield Metro services performed exceptionally well with punctuality of 98% and the services to Southend Victoria at 97.7%. The Marks Tey to Sudbury line recorded 97.6% punctuality.

Ruud Haket, Managing Director Greater Anglia said: “I am very pleased that train punctuality at Greater Anglia continues to improve and we have recorded our best-ever four-week period of punctuality. This reflects our continued and relentless efforts, working in partnership with Network Rail, to provide better train service performance.

“We recognise there is more work to do in achieving greater consistency and will continue to focus on delivering further improvements in train punctuality for our customers across the region.” Richard Schofield, Network Rail route managing director, said: “We have worked very hard with Greater Anglia to improve the train service in the east of England and deliver a safe and efficient railway.

“Our focus has been to drive up reliability levels through continued investment and to improve our contingency plans to help ensure that the service can recover more quickly following any issues on the railway.

“We will continue to work with our colleagues at Greater Anglia to continue delivering consistent levels of service for passengers.”

A survey whose results could lead to a major investment for skills for the Suffolk and Norfolk economy has now been launched.

Taking part in this survey is your opportunity to help inform and be part of the solution to the skills gaps/issues affecting businesses in Norfolk.

The online survey takes just 10-15 minutes to complete and the more information gathered, the easier it will be to understand and resolve the skills gaps and issues facing Norfolk employers.

For more information on the survey and how to take part, click here.

Businesses had identified that new infrastructure was needed to support the development of the Great Yarmouth area and in particularly linking the GY Enterprise Zone with the A143 and A12. It is therefore good news that the Government have recognised the potential of this area and awarded £4.7m ‘pinch point’ funding to road schemes put forward by Norfolk and Suffolk County Councils. The Government has also awarded £4.6m for the Lowestoft northern spine Road which will reduce traffic flows on the A12 Yarmouth Road and A1117 Bentley Drive.

Caroline Williams CEO Norfolk Chamber of Commerce said: “Norfolk and Suffolk Chamber members have been lobbying hard with their public sector partners and the NALEP to ensure that the potential of this area is fully recognised. Improved infrastructure is key to enabling local businesses to reach their full growth potential and to provide new and protect existing jobs. These are positive steps towards what is needed.

“We are however disappointed that the schemes in Brandon and Kings Lynn were not successful and will be reviewing what the options are of getting these schemes funded.”

At a recent meeting of the Great Yarmouth Chamber Council, Great Yarmouth Borough Council Cabinet and local schools, the Chamber challenged schools to work in greater collaboration with the business community.

The meeting highlighted that whilst all the schools have their own careers advice programmes and individual work experience arrangements with businesses, it was apparent that there is a lack of co-ordination between the schools and the business community as a whole. Similarly, the business community are willing to offer their support, but are unsure as to the best access to the schools and need a co-ordinated approach.

The meeting concluded with the schools agreeing to collate all their career advice key dates and provide a timeline to the Norfolk Chamber, to enable co-ordinated support from the local business community to ensure these key dates are supported by the different sectors of industry.

Norfolk Chamber board member Bobby Burrage and his wife Fiona, from The Click Design Consultants proudly showed off eight week old Stanley Thomas at their visit to the Norfolk Chamber of Commerce last week.

• 39% of SMEs reported using any form of external finance, the lowest recorded by the report.
• SME confidence that their bank will agree to a future lending request dropped to 40% in Q1 2013, from 43% in Q4 2012.
• Amongst ‘would-be loan seekers’, 40% said they had felt that ‘discouragement’ had stopped them applying for a loan.
• For those with any appetite for future borrowing, 27% cited access to finance as a major barrier to running businesses in the next 12 months. The current economic climate (43%) was still seen as the biggest barrier to running a business

Commenting on the independent SME Finance Monitor for Q1 2013, published today, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The latest figures from SME finance monitor are concerning because they show a continued deterioration in companies’ confidence when dealing with financial institutions. It is disheartening to see that the availability of external finance remains a barrier to growth for many businesses. Although it is understandable that first-time applicants remain among the least successful when applying for loans, many of these will be young and fast-growing firms who aren’t getting the funding they need to expand. This is why we need to see a swift delivery of the British Business Bank with both the scale and the infrastructure needed to help dynamic businesses to grow.

Locally there are a number of new financial initiatives to help small and medium businesses supported by the New Anglia LEP with new opportunities being added all the time which will put our businesses in a strong position to go for growth”.

Norfolk County Council Leader George Nobbs (Lab) today (Tuesday 28 May) announced a new eight-member Cabinet, comprising five Labour members and three Liberal Democrats.

Cllr Nobbs was elected Leader of Norfolk County Council on Friday (24 May) and immediately announced the creation of two Cabinet posts for Children’s Services, and the appointment of Cllr Mick Castle, Labour member for Yarmouth North and Central, as Cabinet Member for Schools, and Cllr James Joyce, Liberal Democrat member for Reepham, as Cabinet Member for Safeguarding Children.

The full Cabinet announced by the Leader today (Tues) is:

• Cllr George Nobbs (Lab) – Leader of the Council with special responsibility for Economic Development.
• Cllr Mick Castle (Lab) – Schools.
• Cllr David Harrison (Lib Dem) – Environment, Transport, Development & Waste.
• Cllr James Joyce (Lib Dem) – Safeguarding Children.
• Cllr Steve Morphew (Lab) – Finance, Corporate and Personnel.
• Cllr Daniel Roper (Lib Dem) – Public Protection (Public Health, Trading Standards, Fire & Rescue).
• Cllr Sue Whitaker (Lab) – Adult Social Services.
• Cllr Margaret Wilkinson (Lab) – Communities (Adult Education, Libraries, Museums, Customer Service).

In addition to the Cabinet appointments, Cllr Nobbs announced that Cllr Colleen Walker, Labour Group Deputy Leader, will be taking on the vital role of Scrutiny lead.

“A Cabinet of eight Members represents a reduction that reflects the funding cuts the Norfolk County Council is facing from the Government. Although it is a smaller team, it draws upon some considerable experience, and focuses on the most critical areas – in particular Children’s Services when the people of Norfolk expect to see improvements in the performance of our schools, and assurance that our safeguarding services are keeping children safe. These services are so critical to the future of our county that I have separated them at Cabinet level, allowing Cllr Castle to focus upon schools and Cllr Joyce on safeguarding.”

Background of Cabinet Members:

Cllr George Nobbs

Labour member for Crome. First elected to Norfolk County Council in May 2005. Became Leader of the Labour Group after re-election in 2009. Elected Leader of the Council in May 2013. A local historian, writer and publisher, he lives in Eaton Rise, Norwich.

Cllr Mick Castle

Labour member for Yarmouth North & Central. Elected in May 2013, having previously served on the Council as a Cabinet member. Also a member of Great Yarmouth Borough Council where he chairs the Development Control Committee. Chairs the Yarmouth Area Committee and the North Yarmouth Resilience Group. A former chairman of Norwich Airport and the Gt Yarmouth Port Authority, he takes a special interest in economic development. A Norwich City FC season ticket holder.

Lives in Town Wall Road, Great Yarmouth.

Cllr David Harrison

Liberal Democrat member for Aylsham. First elected to Norfolk County Council in a by-election in November 2007 and was the former Lib Dem spokesperson on planning. Also serves on Broadland District Council and Aylsham Town Council. A scientist who has worked in medical and biological research, he has for the last 15 years been teaching science in local schools. Lives in Aylsham.

Cllr James Joyce

Liberal Democrat member for Reepham. First elected to Norfolk County Council in 2005 and was Liberal Democrat spokesman for Adult Social Services. He lives in Wood Dalling and runs a Post Office serving local villages. Previously worked in advertising industry, including Saatchi & Saatchi and J Walter Thompson. Serves on Broadland District Council and Reepham Town Council and several school governing bodies. Chairman of Norfolk Crimestoppers.

Cllr Steve Morphew

Labour Member for Catton Grove. Former Leader of Norwich City Council, elected to Norfolk County Council in May 2013. A full-time officer for NALGO/UNISON for 20 years, he is a consultant in human resources for not for profit organisations and for eight years has been non-executive director on Norfolk & Norwich University NHS Trust. He was a candidate in the Police and Crime Commissioner election. Lives in Catton Grove Road, Norwich.

Cllr Daniel Roper

Liberal Democrat member for Hevingham & Spixworth. Also serves on Broadland District Council where he is Deputy Leader of the Liberal Democrat Group. A qualified Probation Officer, he has worked for Probation for 15 years, most recently as a manager in community roles and in prisons. Previously served on Norwich City Council and Old Catton Parish Council.

Cllr Sue Whitaker

Labour member for Lakenham. First elected to Norfolk County Council in 2001 Re-elected in 2005 before losing her seat in 2009, later winning it back in a by-election in November 2011. Former Leader of the Labour Group and spokesperson on Adult Social Services,former Trust Board Member of the N&NU Hospital. Lives in City Road, Norwich. Governor of the Hewett School, Norwich. Sue is also a trustee of Future Projects in Norwich.

Cllr Margaret Wilkinson

Labour member for Gaywood South. Elected in May. A long-serving member of the Borough Council of King’s Lynn & West Norfolk, she is also former Magistrate. Moved to the Fairstead Estate, King’s Lynn, from London in 1967. Now retired, she worked at the Gayton Road surgical centre for many years. She is married with two children and three grandsons.

For political comment

• Cllr George Nobbs, Leader of the Labour Group and Leader of the Council, on 01603 611406;
• Cllr Bill Borrett, Leader of the Conservative Group, on 01362 860200;
• Cllr Toby Coke, Leader of the UKIP Group, on 01328 838288;
• Cllr Marie Strong, Leader of the Liberal Democrat Group, on 07920 286597;
• Cllr Richard Bearman, Leader of the Green Party Group, on 01603 504124.

For further information please contact: John Birchall Senior media and public affairs officer, Norfolk County Council Tel: 01603 224222 Email : [email protected]

A survey whose results could lead to a major investment for skills for the Suffolk and Norfolk economy has been launched today.

The Suffolk and Norfolk Employers’ Skills Survey 2013 is an online questionnaire, developed by the Chambers of Commerce and County Councils, is aimed at local employers and businesses. It asks for information on current and projected training needs, experience of employing young people and links with local schools and education providers. It will produce results that will be used to show what the specific needs of employers are and where future investment needs to be directed.

Caroline Williams CEO Norfolk Chamber of Commerce said: “Developing our current and future workforce is key to our region’s economic success. We encourage all businesses across Norfolk and Suffolk to take a few minutes to fill in the survey so we can ensure that action is taken to support their needs”

“There is no doubt that employers from across Norfolk and Suffolk continue to face real challenges regarding work force skills,” said John Dugmore, the Chief Executive of Suffolk Chamber of Commerce

“That is why our organisations are coming together to ensure that not only is the matter addressed, but that real changes are made to give employers support tailored to their needs.”

The survey will provide the County Councils, Chambers of Commerce and other partner organisations with valuable information about the state of skills in Norfolk and Suffolk. The responses will help to understand current skill gaps and will provide the evidence needed to change things for the better. The survey will also give employers more say in what training is delivered in future in Suffolk and Norfolk. It should take no more than 10-15 minutes to complete.

The survey can be found at: www.surveymonkey.com/s/skillssurvey13 and closes on 21 June 2013.

The costs to Norfolk County Council of terminating its residual waste contract with Cory Wheelabrator are set out in a report to the Council’s Cabinet Scrutiny Committee, which meets on Tuesday 4 June.

The report on the contractual penalties that would arise in the event of the Council withdrawing from the contract was requested at the first meeting of the new Council on 13 May following the elections on 2 May.

The contract itself is a standard form of government contract. It has been reviewed by Defra and the Treasury before the Government confirmed Waste Infrastructure Grant worth £169m over the lifetime of the project, which includes the proposed construction of an energy from waste plant at the Willows, Saddlebow, near King’s Lynn. The contract is available on Norfolk County Council’s website, except for redactions where the Council has nondisclosure obligations.

A public inquiry into the proposals for an energy from waste plant at Saddlebow was ordered by the Government. This ended on 17 May, with a decision by the Secretary of State on whether or not to grant planning permission expected next autumn or winter (2013/14).

The report to Cabinet Scrutiny deals with two main scenarios:

~ Termination of the contract because planning permission has been refused,

~ County Council withdrawal from the contract after planning permission has been granted.

Termination of the contract because of planning failure would trigger compensation to the contractor. It was necessary for the Council to agree to this compensation clause in the contract or the project would have been very unlikely to be funded by the banks. However, the level of compensation was capped at £20.3m.

There would also be a risk of having to meet costs associated with exchange rates and interest rates. At current market rates this would add £11m to the council’s costs. Termination of the contract in these circumstances would also trigger the early repayment of public inquiry costs, expected to be between £1.5m and £2m.

Withdrawal from the contract by the County Council in other circumstances would be significantly higher, with the costs including debt repayments, redundancy costs and lost profits. The £20.3m cap would not apply. The report does not attempt to provide a figure since it would depend upon the timing of the decision to withdraw, and would require the gathering of a range of commercial information. However, it says that the £80m-£90m cost produced for Cornwall Council when considering abandoning its contract provides ‘a useful indication.’

The full amount would be payable within 40 days of contract termination, and the Council would not be allowed to borrow to cover the costs.

In addition, withdrawal from the contract would lead to the loss of Waste Infrastructure Grant worth £169m over the lifetime of the contract. The report points out that it is unlikely that these would be available for an alternative waste solution – there are ten cases where provisional Waste Infrastructure Grant has been withdrawn by Defra, and no equivalent support has been offered to help affected authorities meet future waste costs.

Economic recovery in the UK remains weak and uneven. Whilst domestic demand increased moderately in 2012, this was largely offset by a pronounced fall in exports. Employment continued to grow strongly, however the weakness of productivity suggests the financial crisis may still be impacting on the supply capacity of the economy. Full Bank of England Overview of Inflation Report