Business Voice WM – Executive Director’s Report

July – September 2010

Business Voice WM submitted its views on economic development in the Midlands to Ministers. The Government was advised to do more to help with bank finance to SMEs. Civil servants were urged to back a direct rail route between Manchester Airport and Stoke on Trent. The Foreign Office has been asked to see if direct flights between Birmingham and Punjab can happen. A fountain in Birmingham city centre is being repaired.

Local Enterprise Partnerships

Business Voice WM told Ministers that co-ordinated action across the West Midlands is needed to tackle the economic downturn.

The announcement emerged as Business Voice WM presented to Business Secretary, Vince Cable and Local Government Secretary, Eric Pickles, its submission in response to the Government’s consultation on its plans to set up Local Enterprise Partnerships (LEPs).

The 29 page dossier calls on the Government to:

• Set up an overarching mechanism that would support LEPs in Birmingham and Solihull, Black Country, Coventry and Warwickshire, Staffordshire, Shropshire and Herefordshire;
• The overarching mechanism would deliver strategic business support in the Midlands, such as the Manufacturing Advisory Service. The Government had indicated such services would be run from London;
• Existing money – instead of new money from taxpayers - that was to run strategic business support services from London would be used instead to run services for the Midlands in the Midlands.

Business Voice WM Chairman, Barrie Williams, said:

“Our plans reflect the ambitions of the new Government. Ministers rightly state that the legacy of wasting of public money must end and that, as the Chancellor of the Exchequer has correctly said, we are all in this together to sort out our economy”.

“That is why our proposals would support the local actions of Local Enterprise Partnerships by having an overarching mechanism that supports LEPs through services via economies of scale – so councils can save money”.

“This mechanism also means that when it comes to supply chains in sectors such as automotive, aerospace and food and drink - which cross the whole of the Midlands and not just a handful of council areas – we can supply strategic business support services that are sensitive to the needs of the Midlands and move away from the London knows best approach of the past”.

“We hope Ministers will endorse our plans as they are in line with the Prime Minister’s concept of the Big Society – empowering businesses and communities to deliver for themselves”.

The submission followed a joint statement that was issued in August between Business Voice WM and West Midlands Councils.

In a statement of support Business Voice West Midlands and the West Midlands Councils added their backing to the concept of Local Enterprise Partnerships.

Both organisations agree that the arrangements need to be built into LEPs for collective working, drawing in adjacent LEPs, building strategic alliances with authorities and relevant special interest groups. The challenge will be to keep the Boards for each LEP at around 12 with the facility to allow the LEPs to be able to draw upon a coalition of interests to allow them to deliver.

Councillor Philip Atkins, Leader of Staffordshire County Council and Chairman of West Midlands Councils said “We must create local jobs for local people; the role of local authorities working with business through LEPs is to create the right environment for business to flourish and grow. In these tough times local authorities must get maximum value from every pound spent.

The LEP proposals across the West Midlands are positive responses to the economic challenges faced locally and nationally. Business and local authorities are putting together the right arrangements for their localities and have shown real maturity and flexibility in the way they have approached the task. All are committed to working with adjacent LEPS and authorities in England and Wales and developing strategic alliances with neighbouring LEPs with the express purpose of securing private sector growth and jobs.”

Barrie Williams, Chairman Business Voice West Midlands said “As support organisations for business and local government respectively, Business Voice West Midlands and West Midlands Councils recognise there will be matters when the LEPs will need to work together on opportunities which transcend LEP boundaries, and we are here to help. The two organisations are therefore actively exploring how we can best support the LEPs where they need to come together to discuss matters of shared importance. At this stage we anticipate issues such as a collective approach to securing European Funding or provision of specialist training and strategic support for our businesses might well necessitate a collaborative approach. Business Voice West Midlands working jointly with West Midlands Councils will facilitate and co-ordinate such discussions. We expect to use this mechanism only where there is efficiency through economies of scale or a clear need to share experiences and resources.”

Businesses recognise the need to sit round the table with their local authority colleagues to set out their ambitions for business growth, and are more than up for the challenge and welcome the sense of urgency that local authorities are giving this agenda.”

This joint statement followed a Business Voice WM conference on LEPs held in July.
The conference was organised to reinforce to all partners, including business and politicians, the scale of the challenge and the need for everyone to work together quickly to meet the 6th September deadline for proposals.

The other key messages were the need to set aside rivalries, truly work together as never before, lobby government hard for the West Midlands to be treated as a special case, recognise and seize the opportunity presented by this change and to develop a genuine collective ‘West Midlands’ voice when talking to Whitehall.

John Rider, Regional Chair of the Institute of Directors, and speaking for BVWM said:

“The issues are too important to let go this opportunity. There is nothing like a crisis to make people work together. We’re not going to get anywhere if we don’t. Business and political rivalries need to be put to one side. We’ve got to stick together like never before. Once we get a decision we’ve got to stick with it and go hell for leather.

“We’ve got a lot of talented people, lots of solid and experienced business people; we can make a difference. We owe it to the next generation to do something about these problems.

“At the same time, you can’t say local then centralise everything. We need to look again at these Government decisions.”

James Watkins, Executive Director of Business Voice West Midlands, said:

“We are committed to helping to reduce the bottom line, together, and to making things work for profitability, for our employees and for our communities.”

Councillor Philip Atkins, Chair of the West Midlands Councils, said:

“Change means opportunity but there will be no free lunch, we’ll have to earn what we get so we need to focus. We’ll work across any geography and boundary and work with any body to make this happen.

“This is about all of us not ‘them’. We need strong partnerships with business in our local areas. And we need to keep AWM’s investments and assets local for local developments and local opportunities. I’m sure we won’t throw the baby out with the bathwater.

“The prize is medium and long term sustainable economic growth for the West Midlands.

“We need to be bold and innovative and show leadership. Business needs to step forward and say what it wants rather than ‘us’ second guessing.

“We have to show that lead, business and local authorities, at whatever level – that powerful guiding coalition. We need to avoid fragmentation – to come to agreements – and quickly.”

Sir Roy McNulty, Chair of Advantage West Midlands, said:

“We need to figure out how to make LEPs the centre of a powerful guiding coalition with all the players pointing in the same direction at the same priorities and moving forward with a good level of co-operation. And we need to do this quickly.

“We need to heed concerns expressed by businesses that what is crucial to them is clarity on where support is available and who is doing what.

“We need to make the best use of AWM’s assets, and make sure that AWM’s experience and expertise are not cast to the four winds.

“My personal view is that some form of two-tier structure will work best but it will be up to Business Voice West Midlands and the West Midlands Councils to decide on how the different views of LEP structures should be harmonised.

“For AWM’s part, we want to ensure the replacement structures are at least as good as what came before. We are happy to help all of our partners to develop effective proposals. We will do whatever we can to get the right outcome and best structures for the West Midlands.

“It is the positive determination to change things for the better that is crucial if we are to succeed.”

Banks

Directors of small firms are still being told to put the family home on the line if they want bank finance, Business Voice WM has claimed.

And, in a submission to a joint Treasury and Department for Business, Innovation and Skills consultation on Financing A Private Sector Recovery, it says the banks’ near boycott of the sector may continue indefinitely.

It urges the Government to fill the gap by expanding community development finance institutions (CDFIs) like Aston Reinvestment Trust, which covers Birmingham and Solihull, and the Black Country Reinvestment Society, both of which typically offer small scale loans of up to £50,000.

The plea comes in the wake of Business Secretary Vince Cable reading the riot act to banks over lack of lending to small firms – the latest Bank of England figures show business lending is down for the fifth month in a row.

Mr Cable warned banks of “potential sanctions” such as an increase in the levy and said they would be looking at a “train crash” if they awarded themselves big bonuses.

The BVWM submission states: “We suggest that the banks will not regain an appetite for risk for some time, if ever.

“If they do restart affordable sub £50k lending then micro-businesses will again be able to start, grow and prosper. If they don’t, or until they do, then we believe that CDFIs are the only proven, capable alternative for providing finance to the smallest, under-capitalised businesses.”

In a scathing assessment of the banks’ failure, post the 2007/8 meltdown, it goes on: “We are concerned that despite the statements from the banks and Government that normal bank lending will be on track, normal bank lending from all high street banks has not resumed and this is a drag on regaining confidence in the Midlands economy.

“Despite the introduction of the Enterprise Finance Guarantee, small firms are still being asked to use their homes as security.”

Urging an extension of EFG cover, it continues: “Presently, the EFG scheme is underwriting around 9.5 per cent of all potential losses so it is understandable that banks may believe they have little option but to obtain personal guarantees from company directors.

“The last Government claimed the EFG would avoid any potential loss of the family home. In reality, though, family homes have been put up as security.

“While directors will have much to gain from their businesses prospering from access to finance, by putting the majority of the risk upon individual directors rather than the traditional approach of sharing risk between the lender and borrower, the likelihood is that many good going concerns will rather end the business to protect the family home and this will be to the detriment of employees, the supply chain and the wider economy.”

The 9.5 per cent figure was too low and had to rise, BVWM insisted.

And, for those who could get finance, arrangement fees were out of control.

Skills

a)         Graduates

Internships do create jobs for graduates, Business Voice WM has insisted.

The comments follow claims and counterclaims over how successful and how costly to the public purse the Graduate Advantage scheme has been.

Unemployment among graduates has risen significantly in recent years resulting in more and more turning to internships when venturing into the real world.

Statistics show that job applications have soared, with an average of 69 people chasing each graduate post. Experience is becoming the deciding factor in who gets their foot in the door – and that’s where an internship can make all the difference.

It was pointed out that of interns surveyed by Graduate Advantage 83 per cent are now in work and 96 per cent of those are either in permanent employment or are on a long term contract.

Internships provide the perfect platform for graduates to gain the all important experience required to stand out from the crowd and can provide excellent career opportunities. The survey found a staggering 41 per cent of interns are still working with their internship organisation. Employers and interns are very definitely benefiting. Graduate Advantage has placed more than 1,500 students/graduates into companies across the West Midlands. It is a not-for-profit organisation aimed at supporting businesses in tough times and at the same time encouraging talent to stay within the region.

Established in 2002, the scheme is backed by a consortium of 12 universities, led by Aston. Its target is to deliver more than 2,000 placements by March 2011.

There are subsidies of up to £800 to help the employer pay their intern with a range of different sectors covered including low carbon, professional services, advanced manufacturing and the digital sector.

The recently completed West Midlands Graduate Internship, part of the Graduate Advantage umbrella of projects, offered unpaid internships. Backed by Job Centre Plus and Job Seekers Allowance, 22 per cent of the completed internships led to a permanent position.

Graduate Advantage has been financially supported by regional development agency Advantage West Midlands along with the Higher Education Funding Council for England.

b)         Business Start Ups

Young entrepreneurs in the West Midlands will be the first in the UK to benefit from a new web platform aimed at making enterprise simple.

www.thinkenterprise.org -has been launched to provide a specialist, single gateway for under-25s looking to develop an idea, start a new business or who are seeking help to grow an existing company.

It is expected to provide crucial advice, guidance and support to more than 10,000 individuals every year and will play a key role in the region’s recently announced 3% campaign, which will look to create 5,000 new entrepreneurs by 2012.

Jackie Brierton, Director of Advantage West Midlands' Young Peoples' Enterprise Centre of Excellence (YPECOE), is excited at the impact the new website will have:

“We are delighted that the West Midlands is again leading the way when it comes to delivering tailored enterprise support to our young people and this will have a major impact on the vitality of the economy.

“Research has proven time and time again that young people are confused about where to go for support, feel isolated when developing new ideas and get turned off by the language used. There is also a genuine gap between start-ups and provision of continued mentoring for established businesses.

“Our new web platform has been designed to address all of these issues, giving young people a single place they can visit to learn about business issues, to find out which organisations can help, and, importantly, to network and inter-trade as part of an interactive community.”
www.thinkenterprise.org is completely different to anything that has been done before, ranging from the clear simple language and comprehensive business support database to video case studies of young people talking about their experiences, opportunities and challenges.

There are also a number of practical tools which guide entrepreneurs and companies through developing a business plan, marketing and raising finance.

Tom Latchford of Raising IT, the developer behind the site, picked up the story:
“Making the portal as interactive as possible is a key feature and we have worked hard to encourage users to post on the message boards and produce their own videos – it’s their site and we need them to drive the agenda.

“We’ve also got a ‘live chat’ option during working hours where young entrepreneurs can speak directly to an experienced adviser by using instant messaging. A great way to ensure direct support is quick and cost-effective.”

Run in partnership with the Enterprise Network and Business Voice WM, www.thinkenterprise.org also has a dual purpose in providing information on young people’s enterprise for professionals involved with engaging and supporting the sector, including teachers, youth workers and business advisers.

There will be a two-way facility whereby support organisations can post relevant forthcoming events and new opportunities for under 25s.

James Watkins of Business Voice WM says: “Think Enterprise features cutting-edge technology with an innovative, creative and dynamic approach. It is high energy, colourful and edgy – clearly designed to appeal to teens and young adults.

“It will enable young entrepreneurs to network with experienced mentors - and help them to connect with each other, using blogging and social networking connections to create a lively enterprise conversation across the West Midlands and beyond.”

For further information, email: info@thinkenterprise.org or telephone 02476 654131.

Transport

a)         Rail

A direct rail link should be re-instated between Stoke-on-Trent and Manchester Airport, it was claimed.

There is now sufficient demand from both business and the public, according to Jane Gratton, of North Staffordshire Chamber of Commerce, a member of the Business Voice WM policy team.

Letters have gone to both Network Rail and the Department of Transport asking for action.
Backed also by Jon Heal, of North Staffordshire Rail Promotion Group, Councillor Mohammed Pervez, Leader of Stoke-on-Trent Council and Councillor Philip Atkins, Leader of Staffordshire County Council, they call for an eventual extension of the service to Stafford and the West Midlands conurbation.

A recent Civil Aviation Authority passenger survey found that last year there were 266,000 people from Stoke-on-Trent flying to and from Manchester Airport and a further 223,000 from Staffordshire. Of these, only three per cent of passengers from Stoke-on-Trent travelled by rail. More than 90 per cent travelled by car, with 68 per cent being dropped off or using a taxi.

However, Preston, a similar distance and journey time by road, but which has a direct rail link notched 278,000 airport passengers in 2009, of which 16 per cent travelled to the airport by train.

Ms Gratton said: “If Stoke-on-Trent could increase its rail modal share to the level achieved in Preston, around 50,000 car journeys could be prevented every year.”

A survey of Chamber members in June revealed that Manchester remained the first choice airport for North Staffordshire, with 46 per cent of respondents using it regularly, the majority doing so once a month on average.

Ms Gratton went on: “A direct rail link would be of strategic benefit to both the economy of North Staffordshire and to Manchester Airport.
“In line with the new Government’s objectives for transport, it would be sustainable, help to meet climate change targets, address road traffic congestion and provide a valuable service for business, the public and airport staff.”

Calling for a daily half hourly service going via Crewe, she noted that the current franchises of Virgin Rail, Northern Rail and Transpennine Express were all due to finish in 2012/13. Hence it would seem “an opportune time to identify a train operating company to service the route”.

The campaigners want a service specified in the next round of re-franchising, and have asked for discussions.

b)         Aviation

Business Voice WM has called for a breakthrough in the impasse over direct flights from Birmingham to India.

It has written to Nalin Surie, India’s High Commissioner in London, asking him to use his influence to plot a way forward.

The link was severed in 2008 when Air India switched its Delhi-Amritsar-Birmingham-Toronto service to go via London Heathrow in a move to secure slots there.

Since then, a major campaign to restore a connection has become mired in red tape and regulation.

BVWM executive director James Watkins has requested Mr Surie’s support “in resolving matters”, with the Punjab again being the proposed destination.

Highlighting the close business links between the West Midlands and India, Mr Watkins stated: “Since 2006, more than 1,500 jobs have been created by 16 Indian companies. There are now over 30 Indian owned businesses in the West Midlands region, such as Tata Motors, State Bank of India, ICICI Bank, Tata Steel, Mahindra & Mahindra and Aditya Birla.

“In addition, the Punjabi community here provides greater economic prosperity for both the Midlands and the Indian economy. Despite these clear economic advantages between our two countries, there is no direct service between Birmingham International Airport and the Punjab. Direct services to the Punjab from a congested Terminal Three at Heathrow Airport lead to additional cost and delays for Midlands business people who wish to travel directly.

“Birmingham International Airport would warmly welcome discussions with carriers to enable such direct services to take place and so complement the decision of Akal Air to ensure there are flights to the Punjab via a transit stop at Vienna.

“It would help tie India and the West Midlands business community closer together. We appreciate that the ability for direct line services to take place is a matter for commercial interests and also for Indian regulatory considerations. In respect of both matter we would be grateful if the High Commission could kindly consider what steps all of us in the Midlands and elsewhere could take which would be to the economic benefit of both of our countries.”

Birmingham International Airport hosts several airlines which run indirect services to India. Among them are Air France KLM, Emirates and Lufthansa.

It has been suggested that three Indian carriers Air India, Kingfisher and Jet Airways might be interested in re-launching a route, but commercial rivalry and regulatory hurdles have prevented any progress despite a 20,000-signature petition being presented to the Indian government.

There are said to be around 350,000 people of Indian origin living in a one hour catchment of BIA.

c)         New Transport Representative

The West Midlands needs to “play it smarter” on transport solutions, a leading businessman has warned.

Former Birmingham Airport chief executive Brian Summers said that, given the current economic austerity, the region needed to get more out of the existing system rather than expect major new investment projects.

His comments came as he was named Business Voice WM business representative on the Transport Panel that advises think tank, the Joint Strategy and Investment Board.

Mr Summers said it was “disappointing” that the new Government had immediately suspended the likes of the New Street to Snow Hill Metro extension in Birmingham and the expansion of hard shoulder use on motorways.
It remained to be seen to what extent the new Regional Growth Fund announced in the Budget would be open to transport investment, but the case for schemes felt to be a priority should continue to be made.

“The Metro extension was relatively small in the overall scale of the needs of the region and in many people’s eyes was not in the highest priority category,” said Mr Summers. “But it is an important link and would provide a new focus on the city centre.

“There is a lot of uncertainty at this point in time about the way forward, and this may be an opportunity to re-think certain things. We need to identify our real priorities while playing it smarter in terms of our approach.

“We need to address the issues in a way that does not require major capital investment – concentrating on smaller things like managing traffic flows, encouraging alternative forms of transport, and how we can achieve a better integrated system. Improved interchanges don’t always have to be expensive.

“We need to get yet more out of the system even though it is clearly strained.”

Mr Summers said he was pleased that the New Street station redevelopment had been safeguarded. And, despite the aviation sector finding the going particularly tough, he remained hopeful that the Birmingham Airport board and shareholders could find a way to pursue the proposed runway extension.

But he cautioned that the West Midlands had at times not helped itself.

“When we have had opportunities in the last few years we have not always made our case well enough and sometimes we have been too slow to capitalise, not handling things in the way we should have done.”

Noting that the Joint Strategy and Investment Board comprised members from the West Midlands Councils body and regional development agency Advantage West Midlands, the former facing cutbacks and the latter abolition, Mr Summers also had a warning for the Government.

He said: “I am concerned that we might revert back to an individual local authority structure with each council looking after its own. We need to keep a wider regional view.”

James Watkins, BVWM executive director, warmly welcomed Mr Summers into his new role.

“Brian is widely known for his wise counsel and will make the business case well at a time when money is scarce.

“He is absolutely the right man at the right time.”

BVWM chairman, Barrie Williams, is already on the JSIB representing business.

Broadband

Business Voice WM has stepped up its campaign to get broadband access to rural areas.

It has written to Culture, Communications and Creative Industries Minister, Ed Vaizey MP, asking him to intervene.

It is also sending a delegation to London to lobby regulator Ofcom on the matter.
BVWM wants the Minister to bust through EU red tape.

Telecoms providers have stated that the rate of return in providing broadband access to outlying rural areas is too low for consideration.

But, with the help of Euro MP Malcolm Harbour a push to amend Directive 2002/22/EC on universal service and users’ rights was successful.

However, the new rules have to be transposed into national laws and that need not happen until May 2011.

It is now up to Mr Vaizey to decide how flexible the interpretation of the new Directive should be.

In his letter David Collier, a BVWM board member and National Farmers Union regional director, asked him to intervene “to ensure Ofcom can use its powers to ensure broadband coverage is available in all rural areas”.

He went on: “We need to ensure that rural businesses, such as those on the border with Wales, can survive and thrive and help create local employment opportunities. Businesses in many sectors cannot be truly secure without access to broadband due to the development of e-commerce and related IT management tools.

“The economic viability of many rural communities is becoming more precarious from day to day due to the lack of broadband coverage. We are conscious also that the two megabits standard is too low for some purposes, and that many businesses require much higher speeds, for both downloading and uploading.

“We would ask you to urgently consider taking the necessary legislative action to enable Ofcom to ensure telecom firms provide broadband coverage to outlying rural areas.”

Power Cuts

Business Voice WM has stepped up its campaign against on-going power cuts in parts of the West Midlands.

Having secured a pledge from energy company, E.on, that they will investigate the concerns, the lobby group has now turned its fire on Scottish Power, main electricity distributor in north Shropshire.

It has complained to Frank Mitchell, Scottish Power’s director of energy networks, and asked North Shropshire Conservative MP Owen Paterson to further take up the cudgels.

David Caro, Business Voice WM board member and chairman of the Federation of Small Businesses’ Environment and Energy Policy Unit, has requested a meeting with Mr Mitchell “to address the very serious power cuts afflicting areas of Shropshire”.

He said: “We undertook a survey of the business community and found that regular power cuts are a constant reason for loss of income by many firms in key areas of the Midlands. We have raised our concerns with E.on who are kindly investigating this matter. However, some of these power cuts relate to north Shropshire where Scottish Power is the main electricity distributor.”

Noting that it was not the first time the issue had been raised with the energy giant, and that Shropshire Council and Mr Paterson had met with representatives of the company to attempt to resolve the matters, he went on: “Regrettably, however, these problems are still continuing and are so significant that the matter has now repeatedly come to our attention.

“As you can appreciate, these cuts are deterring investment readiness and enthusiasm and negatively impacting upon the competitiveness of the Shropshire economy.”
Business and Scottish Power needed to “work together” for a resolution.

Mr Caro urged Mr Paterson – who is also the Northern Ireland Secretary - to keep up the pressure.

David Caro said: “We appreciate that Owen Paterson have been in contact with Scottish Power. We would support all MPs to ensure the energy regulator, Ofgem, take on board their responsibilities and ensure these power cuts are addressed by Scottish Power and others that may be responsible.”

Crime

Business Voice WM backed a major anti-crime workshop.

The lobby group supported an event run by the National Federation of Retail Newsagents, a BVWM member, aimed at business crime prevention.

It took place on Sunday, July 18 at the Holiday Inn Express in Walsall.

Small firms campaigner Fay Goodman represented BVWM – she is the author of a business crime prevention booklet that is still free for all businesses to access at www.businessvoicewm.org.uk/crime.html.
West Midlands Police and Victim Support will also be attending the Putting Crime Out of Business workshop.

Specialist security companies were on hand to offer advice.

Ms Goodman said: “Crime against business is an on-going scourge which costs companies millions of pounds a year.

“Business Voice WM has been campaigning hard to push the issue up the agenda of the authorities.

“I applaud the initiative of the NFRN in running this valuable event.

“I would urge representatives of businesses of all sizes to attend because they can learn a great deal from the experts. And obtaining a free copy of the BVWM crime prevention booklet will add to their knowledge.

“Taking sensible precautions does not necessarily have to be hugely expensive. It is better to be safe than sorry.”

Planning

Milton Keynes housing growth area remains a potential economic threat to parts of the West Midlands, it was claimed.

Business Voice WM has written to Grant Shapps, Minister for Housing and Local Government, asking for a meeting.

“We constantly made representations to the last Government with our concerns,” said Richard Ward, chairman of BVWM’s MKSM working group and an Institute of Directors’ representative council member for Business Voice WM.

“Its intentions to move ahead with MKSM gave no recognition to the potential impact of the development upon the transport network in Coventry and Warwickshire. We pointed out how potential transport bottlenecks between London and Birmingham could be aggravated by a development between the two cities which would be twice the population size of the latter.

“We also expressed concerns that businesses, local authorities and other relevant public agencies in the West Midlands were not properly consulted on the implications.”

Any migration of skilled workers “could upset the existing regeneration plans of Coventry and other parts of the southern West Midlands area and could have a knock on effect upon the economic development of the whole of the region”.

Though a limited dialogue had ultimately been struck plans for MKSM still did not take sufficient cognisance of the West Midlands. Instead there needed to be synergy between the neighbours.

Mr Ward told Mr Shapps: “We appreciate that the Department is currently reviewing the future of MKSM and we would welcome an opportunity to meet with you and your officials to brief you on our concerns in order for future governance arrangements for the growth area to be far more robust than was the case under the last Government. We believe if this was achieved then the people and businesses in Bedfordshire, Northamptonshire, Buckinghamshire, Warwickshire and Coventry can all benefit from sensible and rational planning decisions.”

Mr Ward went on: “The Milton Keynes development can be a success for the West Midlands region – if the West Midlands are treated as an equal partner in this development.

“For example, plans could be put in place for Birmingham International Airport to be the aviation hub for Milton Keynes. Business parks could be developed to develop supply chain businesses with manufacturers in the West Midlands. The potential of a larger number of people living in Milton Keynes could be utilised for a potential new market for the tourism sector in the West Midlands region.

“None of this, though, can be achieved if Milton Keynes is geared solely to developing housing for South East commuters. If this happens, Milton Keynes could scupper regeneration plans for the West Midlands region – leading to potentially higher levels of unemployment.”

European Parliament

Business Voice WM has stepped up its campaign to win an extra European Parliament seat for the West Midlands.

Following a “very helpful response” from the Minister for Political and Constitutional Reform, Mark Harper, it has again written to Electoral Commission chief executive Peter Wardle urging him to see the merits of the case.

In the wake of the European Council of Ministers summit in November and ratification of the Lisbon Treaty across the EU as of December 1, the UK was allocated an additional Euro MP.

The question is – which region will get it.

And BVWM says it should go to the West Midlands “in the interests of fairness and transparency”.

Pointing out to Mr Wardle that the West Midlands has a population of 5.3 million people, BVWM states: “Despite the West Midlands having approximately 10 per cent of the UK population, it currently only has six MEPs representing it. This does not seem to be in the interests of equity when, for instance, Scotland, has six MEPs despite an electorate of around 3.8 million people while London has eight MEPs with an electorate of 5.2 million people.

“There is no doubt in our judgment that the West Midlands – in terms of the ratio between the number of MEPs and population size – is under-represented. This is an aggravating factor for the businesses and people of the West Midlands at a time when the region needs to be adequately represented by elected representatives at the European Parliament while this difficult economic downturn continues.”

And the letter calls on him to award the MEP place accordingly.

The move is part of a concerted campaign on the issue by BVWM.

It first challenged the Electoral Commission in December and then in May took the matter up with Justice Secretary Ken Clarke asking that he rectify the discrepancy.

Birmingham City Council

a)         Fountain

Business Voice WM has hailed Birmingham City Council’s decision to “Save the Floozie.”

Work is set to start in August, with a completion date of the end of October, to get the famous fountain flowing again.

The issue was highlighted by BVWM earlier this summer.

It claimed the "Floozie in the Jacuzzi" – more formally The River Goddess Fountain by Dhruva Mistry – was letting down Birmingham because it was all too often out of order – the water feature has had leakage problems going as far back as 2002.

BVWM’s Gary Saunders, who represents the West Midlands Chambers of Commerce and is Business Development Manager of Erdington-based Churchill Office Solutions Ltd., spearheaded the campaign due to “the poor impression that is being given of Birmingham City”.

He went on: “Victoria Square is a key feature of Birmingham to tourists and inward investors but the City does not show itself to its full advantage when the fountain is often not operating. This gives an odd impression that the City is not fully functioning as well as it should, when a key architectural feature that has been developed, in part, to impress visitors and highlight civic pride, is out of order.

“It is small touches such as this that can have a disproportionate impact on people visiting Birmingham for the first time.”

The lobby organisation wrote to Sharon Lea, Strategic Director of environment and culture, urging that something be done.

And, in a letter back, the council pledged action – the Council Cabinet has now agreed a refurbishment project to repair and restore the “Floozie”

Welcoming the move, Mr Saunders said: “We are very pleased that at last it appears real progress is being made.

“The Floozie" is a highlight for visitors and locals alike, yet more recently has been an embarrassment.”

“We understand that in this difficult economic environment all spending decisions have to be closely scrutinised, but this will be money well spent.”

“I am glad that BVWM’s campaign has had an effect, and applaud the Council for its decision.

b)         Budget

Over 50 businesses attended a Business Voice WM/Birmingham Chamber of Commerce and Industry event to hear the views of Birmingham City Council as to how their budget will be spent in 2011/12.

City Region

Manufacturers must develop renewed courage in the face of Far East competition, according to a leading industrialist.

Mike Dell, managing director of Bilston-based Rubber Astic and President of Black Country Chamber, said they had caved in too easily in the past.

Now that Chinese imports were becoming more expensive, amidst strikes and pressure for higher wages, there was an opportunity to fight back.

Mr Dell’s comments came as he and KPMG partner Bill Cooper took on new responsibility for making business views heard across the West Midlands.

Mr Cooper, a partner in the Birmingham office of accountants and business advisers KPMG, put forward by Birmingham Chamber of Commerce, has succeeded Glyn Pitchford, who has retired after the end of his three year term as the Business Voice WM representative on the Birmingham and Black Country City Region Board.

Peter Wall, who has also retired after the end of his term as the alternate BVWM representative, has handed over to Mr Dell, a Black Country Chamber nominee.

He will serve as a full member of the Board alongside Mr Cooper.

Mr Dell said it was up to business to spell out what it thinks on major issues, particularly if regional development agencies were scrapped.
“We have a real opportunity to be listened to at Westminster and locally. There is no point in waiting to see what happens and moaning about it afterwards – it is important to shape it now.”

Manufacturers had in the past “given up too easily”, deciding they could not compete with the Far East. The politicians had not seen the damage this would cause, believing the country could exist on financial services and other invisibles.

The credit crunch and banking crisis had exposed the strategy’s failures. It was “not working”.

And there were other issues in manufacturing abroad.

It tied up cash and often produced problems with quality.

Now, with sterling low and an unpredictable market, it was often easier to deal with someone 100 miles away than 10,000 miles away.

The big consumers of products – such as Jaguar Land Rover, JCB and the supermarkets – had to be persuaded to buy British, he said.

And British manufacturers had to start competing again.

But Government had to help UK firms by ensuring on both taxes and regulation the country was competitive too.

Paying tribute to his predecessors’ contribution, Mr Cooper said, given the economic austerity, the City Region needed to play a bigger, not lesser, role.

Mr Cooper went on: “The Midlands is one of the regions where the economy is most exposed to public sector spending cuts, and the new Government has recognised this.

“There is already a big jobs gap. With local government having to get by with 25 per cent less funding, the question is how you go through that and achieve these cuts yet minimise any adverse effect on the local economy.

“The City Region has a role to play in promoting economic growth and inward investment. It needs to show clear leadership and vision.”

It was also important to bid successfully for money from the planned new £1 billion regional growth fund targeting the sort of things the City Region’s constituent authorities could not achieve alone.

He added: “It is very likely we will see some activities currently performed by government or local government divested into the private or charitable sectors.”

Mr Cooper, who is national leader of KPMG’s