Cornwall & Isles of Scilly Strategic Economic Plan

Statement of engagement and consultation

1. Introduction          2. Summary of consultation events  Date  Consultation Event  Priority Issues  Summary 2011       25.11.11  Eden  Communication and networking for joined‐up action. 

Anne

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6.12.11  Truro  Public sector coordination; Agriculture; Not just ‘high growth.’ 6.12.11  Camborne/Redruth    Jobs for local skill set; Link housing with jobs. 13.12.11  St. Ives                    Develop local business networks and value retired business leaders as mentors; Demand led training; Exports 

and Finance. 13.12.11  Penzance  Need business networks; Employers’ needs must drive training; Heritage and Environment. 13.12.11  Helston  Understand the needs of small businesses; Renewable energy and low carbon; Transport infrastructure crucial. 16.12.11  Bodmin  Strategic infrastructure; Basic Skills and work ethic; Links between education and business; Utilise retired 

business people as mentors. 16.12.11  Newquay  Need continuity and certainty about Newquay airport; Environment as a driver for growth; Don’t denigrate 

tourism, we need it, there are higher skills.  2012       6.1.12  Falmouth  Transport infrastructure is key; Business engagement and networking; Concentrate on the big issues and do as 

you say you are going to do. 

Anne

x 1 6.1.12  St. Austell  Maximise the benefit of Broadband; Export; Transparency in LEP is crucial; Newquay Airport; Training and 

apprenticeships – need to spread the risk for small firms; Define clear strategic plans and stick to them. 10.1.12  Saltash  Business support; Stop government restricting curriculum development; Use expertise of retired people. 10.1.12  Launceston  Road improvements; Reduce the number of ‘empty certificates’ and worthless training; Newquay Airport; Back 

the already successful companies. 11.1.12  Isles of Scilly  Transport & communication; Promote entrepreneurship; Value the environment. 

This document details the consultation and engagement events that have been undertaken by the C&IoS LEP that have informed the evolution of the 2012 LEP strategy, the EU Structural and Investment Fund (SIF) and ultimately the Strategic Economic Plan (SEP). The LEP have a strong track record of engagement, section 2 of this reports provides snapshot of the numerous events that have shaped the way in which the SEP has evolved, along with the priority issues that were identified.  Section 3 provides a more detailed summary of SEP specific consultations and demonstrates the ways in which we have actively responded to the feedback received. Section 4 sets out our strategy for continued involvement of stakeholders in the SEP. 

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12.1.12  Liskeard  Employment land; Low aspiration amongst parents; Employment led rather than housing led growth; Transport and communication; Fear of growth amongst small firms; Use environment and ‘clean Cornwall’ as a driver. 

13.1.12  Bude  Reach out to small business; Help existing firms to grow rather than attract new ones; Banks, Planning and the EA are blockages; Need help to develop ‘ideas’. 

29.5.12  Business Consultative Group  

1. More local control; Cornwall & Isles of Scilly need to set the agenda; 2. Business engagement and better communication are essential if the public and private sectors are to work better together; 3. Small businesses have potential to become high growth and need to be linked to HE/FE to propagate career development from a low skills base; 4.  Small is beautiful, don’t forget small projects, small communities; 5. Investing in the infrastructure of ‘place’ and joining‐up programmes is key; 6. Housing growth needs to be driven by job growth; 7. Speaking common sense in a very common sense way is where the LEP excels; 8. Glad to see the ‘Guiding Principle’; growth needs to be sustainable growth rather than just pure growth (social, economic and environmental well being). 

31.5.12  On‐line Consultation on Draft LEP Strategy (deadline) 

75 individual responses  

2013       20.5.13  Stakeholder 

Workshop ‘Land’  

Anne

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4.6.13  Stakeholder Workshop ‘Energy’ 

 

12.6.13  Stakeholder Workshop ‘Sea’ 

 

30.6.13 (start date 17.5.13) 

On‐line Consultation on Draft EUSIF strategy 

250 individual responses 

1.7.13 – 19.7.13 

Telephone Survey  (78 businesses) 

1.Develop physical infrastructure in digital, transport infrastructure, HE & FE, Renewable energy generation; 2. Pusue large scale, high risk, high impact projects that could dramatically shape the research & innovation landscape permanently; 3. Enable better communication between businesses, R&D, and investors; 4. Develop skill sets relevant to local industries and augment opportunities for young people; support individuals at level 3 into HE/FE and vocational practice; 

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5. Invest in precision farming including soil & water management, ecosystem value, distribution & infrastructure networks. 

16.7.13  Knowledge, Innovation & Research Workshop 

1. Help businesses engage in research and support innovation; 2. Build on assets already invested in; 3. Focus support on areas where we have a competitive advantage 4. Use social innovation as a driver to address some of the key challenges facing C&IoS 

30.7.13  Finance for Growth Workshop 

1.SME Strategy Management and management skills; 2.Financial Structure of SMEs; 3.Gaps in the family of Financial instruments; 4.Gaps in support for certain markets; 5.Signposting & advice. 

2014       17.1.14  Deadline for 

comments from Employment & Skills Board on the Draft EUSIF 

   

7.2.14  Digital Creative Consultation Workshop 

  Annex 2 

12.3.14  Business Consultative Group Draft SEP consultation 

See Section 3  Annex 3 

18.2.14  Workshop with Health and Wellbeing Board, Local Nature Partnership, 'public sector group' & Cornwall Council   

See Section 3   

16.3.14 (start date 20.2.14) 

On‐line consultation deadline on Draft SEP 

See Section 3  Annex 3 

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3. SEP specific consultation To build upon the robust evidence and extensive consultation that informed the 2012 LEP strategy and EUSIF, the LEP hosted 2 workshops and undertook a website consultation on the draft SEP. This section provides an overview of the feedback obtained and demonstrates how the SEP evolved in response to this. 3.1 Website consultation 20 February - 16 March A draft SEP was made available on the LEP website between 20 February and 16 March. In total, 23 replies were received in response to the website consultation, which as well as asking for general comments, specifically asked respondents to address the following questions:

• Does SEP include all investment priorities for C&IoS? • Are there any gaps? • Does document give clear sense of direction?

Responses were received from individuals and sector representatives covering the following areas; Manufacturing; Space sector; Tourism; Telecoms; Renewable energy; Ports and harbour; Sustainable transport, Social enterprise; Local Authority. A schedule of comments received is provided in Annex 3. A summary of the key points follows: Consultation feedback: • Many of the respondents highlighted the need for a modern and efficient road

infrastructure (duelling of A30) to support business growth • Multiple comments were made regarding the importance of road and rail

infrastructure (resolving Dawlish high priority) • More emphasis on sustainable travel would be welcomed, and would have

economic, social and health benefits • Several comments were received regarding the lack of focus in the document

on the role of manufacturing • There is a need for more innovation in delivery of apprenticeships to offer

apprentices the breadth of experience (collaborative apprenticeships) • Lack of reference and recognition of the value of the social enterprise sector • Limited reference to climate change and resilience • Breadth of marine sector not fully represented • Economic role of ports insufficiently articulated • Importance of environmental growth not made in document • ‘Sustainability’ and ‘community’ should be underpinning principles • Needs to be more hard hitting

How this influenced the SEP: • Infrastructure and connectivity remains a key driver behind the SEP and LGF bid • Our 2012 Strategy sought to promote a ‘sector blind’ approach to its activities,

it is recognised that the SEP has, by necessity, evolved to provide a more sector specific focus. This has been a necessary approach in order to focus investment and maximise synergies, but has resulted in some sectors feeling under represented. This was not intentional. Reference to role of the manufacturing sector is not explicit in the document, however the need to move freight and to transport goods and services has been fundamental in the evolution of the strategy, hence the central focus on connectivity.

• The role of the social and voluntary sectors reflected in CG5 • A wider range of marine related activities has been reflected under FE2

Renewable Energy - technology and generation. • The need to respect the environment is inherent in the strategic principle

which was first articulated in the 2012 strategy and remains core in our SEP: The culture, communities and environment of Cornwall and the Isles of Scilly will remain special and unique.

• Comments regarding the need for sustainability and community to be included as guiding principles have been emphasized in the final exec summary

• Style and language amended to be more succinct

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3.2 Workshop with Health and Wellbeing Board, Local Nature Partnership, 'public sector group' & Cornwall Council – 18 February A workshop was help on 18 February, and was attended by representatives from the Health & Wellbeing Board, Local Nature Partnership, Public Sector Group, and Cornwall Council. The session gave attendees an overview of the drivers behind the draft SEP and LGF before seeking views on the following areas:

• The draft SEP – attendees were asked to comment on the content of the draft plan • LGF bid – attendees were asked to consider bid strategy, and their views on our approach to negotiating freedoms and flexibilities • Getting buy-in and negotiating effectively – attendees were asked what approach would ensure maximum ‘buy in’ to the SEP

A note from the meeting is provided in Annex 3, a summary of feedback is provided below, along with notes on how the plan evolved to reflect contributions. Consultation feedback: General comments regarding the draft plan were as follows: • There was a sense that the SEP should be long-term and ambitious but with

pragmatic tactical approaches to the deployment of LGF and growth deal - emphasising C&IoS’s ambitions for reduction in dependency on UK (and presumably EU) funding

• The LEP was encourage to make the case for C&IoS's uniqueness (and giving a sense of specific localities within this), rather than seeking to compete with other areas on formulaic value-for-money ratios and thematic strategies

• The local authority was keen to build on the pioneer status for health and social care as a USP

LGF bid – attendees were asked to consider ‘bid strategy’ - Most agreed that a tactical bid with transport investments as 'foundations' was the right approach, with a small number of higher risk transformational propositions on top of this. Some asked that consideration given to community-based energy projects if they are investment-ready Local Growth Deal - attendees were asked for their views on our approach to negotiating freedoms and flexibilities: Many felt that we should position the proposal in terms of C&IoS's long term devolution ambitions. It was also felt that it is important that the LEP makes the case for a much greater and tangible UK recognition for the distinctive contribution 'Brand Cornwall' can make to UKs global profile and reputation Getting buy-in and negotiating effectively: It was felt that we need to develop shared accountabilities for the SEP between the LEP and key partners. And also to consider individual thematic and place specific 'vertical' deliberations alongside the more horizontal consultative processes

How this influenced the SEP: • LGF bid strategy based on deliverable ‘foundation’ projects in early years, with

transformation projects delayed until the foundations are in place • The desire to reduce C&IoS ‘dependency’ is clearly reflected in the document • Pioneer status referenced in SEP • A section on delivery through spatial investment included to provide a sense of

specific localities and the rural profile of the region. • Brand Cornwall work referenced in revised draft, as well as emphasis on the

unique assets and characteristics of the region • Future engagement strategy is evolving to reflect comments received

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3.3 Business Consultative Group workshop 12 March

On 12 March a workshop was held with the Business Consultative Group (BCG) a cross sector group of representatives. The half-day session covered a broad range of issues, and there was a general consensus that the draft was moving in the right direction. Following the event, a revised draft was issued to members of the group and further comments were invited. Minutes from the meeting are provided at Annex 3, a summary of the main comments received are outlined below:

Consultation feedback: • The exec summary is not focussed enough; it is too long and it does not ‘sell’

the plan well • Can we give a better explanation what the competitive advantage of superfast

broadband will be when everywhere else gets hooked up to the same level? How can we continue to deliver enhancements?

• The document needs to clearly set out C&IoS’s USP • Care should be taken regarding over use of the term ‘peripherality’ – this is not

necessarily a weakness and we should be promoting out positives, not our negatives

• Care needed in places over the use of the terms ‘growth’ or ‘high growth’. We have a great many businesses that would not be attracted by the concept of growth but nevertheless need to become more profitable and productive

• P.46 - some actual stats on the employment numbers in larger businesses would make the argument more compelling

• Transport into and out of the County is essential – i.e. A303 and rail travel through Devon (Dawlish)

• Some sectors, such as the social care sector, are not represented • Cultural sector not adequately represented • Not enough focus in the document, key actions/outcomes not clear • Housing is a big issue but the draft does not seem to fully recognise this • Some of the terminology is confusing, i.e. Smart Specialisation need defining • Case studies would help to support the narrative, as well as some ‘lessons

learned’ for previous EU programmes • Airport - is there potential to increase its technological status, for example, to

ensure that flights don’t automatically cancel when the fog comes down? • Although there are some significant improvements, I still feel the document

does not state well enough: o what the ‘end game’ is, i.e. what Cornwall will look like in 2020. o Why we need both the EU money and money from central govt. Can we

demonstrate a proportionally greater uplift in output as a result? What

How this influenced the SEP: • Revised Exec Summary included in the 31 March submission to reflect this. • Number of ‘interventions’ rationalised to 15 and document format revised in

order to provide more clarity around the themes and interventions • USP, including concept of a ‘neat parcel’, coterminous, strengths in partnering,

included in document • Language has been de-cluttered, including plain English edit, reference to

‘peripherality’ removed from the document, general semantics and positivity of messages updated

• list of partners and stakeholders has been removed from the draft since comments were received suggesting it felt ‘cluttered’ and provided no real sense of purpose with and some feeling excluded.

• SEP acknowledges further work to be done around housing (including key worker), which will be delivered via a sub group.

• ‘lesson learned’ case studies to be included in final draft • GB2 focusses on business with the ‘potential to grow’ rather than high growth • Section on housing expanded to guide the work for a LEP housing sub group • Case studies of successes and lessons learned to be included in final submission • Explanation of Smart specialisation added

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would be the impact if we didn’t make these investments? How much will the investments save the govt or generate for it in the long term?

4. Future engagement The comments and feedback received to the workshop and online consultation demonstrate strong local appetite to engage with the SEP. As a partnership between the public sector and private sector, the LEP has from the very beginning sought to offer strategic leadership that unites everyone in a shared journey. It is fully recognised that effective communication through business community engagement at a number of levels is essential. Various forums exist for engagement, and this is being reviewed as part of the SEP approach to ensure that maximum contribution and buy in is obtained.

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Annex 1 LEP Strategy Consultations Annex 2 EU Strategic and Investment Fund Strategy Consultations Annex 3 Strategic Economic Plan Consultations

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Eden Roadshow 25 November 2011 Stakeholders: 40 Main topics raised by stakeholders: 1. The relationship between the LEP, CC and CDC; 2. Skills funding; 3. Heritage, culture and the voluntary sector; 4. Engagement between the LEP and the voluntary sector; 5. Working with the LEP to forge the ‘Big Society’; 6. Communicating with the LEP; 7. Cornwall Conversation; 8. If the LEP ignores the small business sector it ignores Cornwall; 9. The LEP accessing voluntary sector skills; 10. Voluntary sector work experience in preparation for work or higher education; 11. Broadband connections in rural areas; Follow-up: • Talking Heads; • Web-site updates; • Film

Annex 1 LEP Strategy Consultations

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Truro Roadshow 6 December 2011 Stakeholders: 25 Main topics raised by stakeholders: 1. LEP strategic fit with CC strategy. 2. Old RDA funding and the need to change business mind-set; 3. Need for public sector coordination; 4. Need to acknowledge the agricultural sector and service sector; 5. Household income; 6. The ‘thinking sector’ and the role of innovation in growth; 7. The need to develop all sectors not just high growth; 8. Measuring success (the need for financial measures); 9. The likely lifespan of the LEP; 10. The Regional Growth Fund; 11. Low carbon agenda; 12. Coordination of activity with neighbouring LEPs. Follow-up: • Relayed statistical information to one stakeholder. • Sent an electronic version of the presentation to a company some of whose staff had wanted to be able to attend the roadshow but could not.

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Camborne & Redruth Roadshow 6 December 2011 Stakeholders: 17 Main topics raised by stakeholders: 1. Commitment of the LEP Board; 2. Jobs that suit the local skill set; 3. Raising awareness of opportunities in engineering in students from an early age; 4. Communicating with the LEP; 5. Employers working together to provide ‘joint apprenticeships’; 6. How the LEP will build on past economic development work in Cornwall; 7. The relationship between CC and the LEP; 8. The LEP as a champion of the private sector; 9. House building and the relationship with jobs; 10. The relationship with CDC; 11. The purpose of Cornwall Council; 12. What the LEP will do that will be different from what has been done in last 20 years; 13. Business start-ups. Follow-up: • One major employer present became involved in a subsequent ‘brain-storming day’ on strategic thinking.

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St Ives Roadshow 13 December 2011 Stakeholders: 7 Main topics raised by stakeholders: 1. Local business networking (need more and better); 2. Access to finance and access to markets (need venture capital); 3. Training; 4. First mover advantage; 5. Implementing the proposed strategy (how and by whom); 6. Demand led training, apprenticeships and knowledge transfer; 7. LEP’s networking role in pulling together the business support network; 8. The LEP Board’s understanding of SMEs (impression of only a big business background); 9. Business Rates – difficult to pay as a small firm; 10. Business strategy – the need to work on the business rather than in it (help needed); 11. Exporting beyond the Tamar – skills need to be acquired; Follow-up: • None necessary.

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Penzance Roadshow 13 December 2011 Stakeholders: 7 Main topics raised by stakeholders: 1. The need for business networking and the value of retired business leaders as mentors; 2. Enterprise Facilitators in south and west Cornwall (their effectiveness in helping small businesses and the desire to continue the existing project); 3. Choice of consultation methods, venues and timing – all crucial to local business response rates; 4. Does the LEP have sufficient money to run itself? 5. Concern that the LEP strategy will not be fully inclusive of sectors; 6. Meeting the training needs of local businesses (not just supplying ‘stock’ courses on e.g. bookkeeping); 7. Providing for the needs of lifestyle businesses with no growth ambitions; 8. Being clear about what the LEP will actually do that is new and credible; 9. Access to finance and the current risk averse attitude of banks; 10. The strategic relevance of EU policy and Heritage policy to economic growth; 11. Defining a distinct role for the LEP – surely the Chamber and FSB are there for removing ‘red tape’; 12. On-going communication with the LEP. Follow-up: • None necessary.

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Helston Roadshow 13 December 2011 Stakeholders: 12 Main topics raised by stakeholders: 1. Enterprise facilitators in south and west Cornwall do a great deal for small community based businesses and the project needs to be continued; 2. Business support that recognises that “you need to run the business as well as attend courses; 3. The need to support for businesses beyond the concept stage; 4. Relationship with CDC; 5. The LEP Board’s understanding of sole traders and small businesses; 6. The importance of small businesses to the Cornish economy; 7. Collaboration between small businesses; 8. Finding ways through the business support ‘maze’; 9. Low Carbon and the need to firmly represent it in the LEP Strategy; 10. Renewable energy as a main strand in the LEP Strategy; 11. Sector ‘blindness’ in Convergence and the need for Cornwall Marine Network; 12. The need to challenge government policy; 13. Marketing support for small business; 14. Don’t abandon ‘grants’ too soon, firms still need support especially for things like plant and machinery upgrades; 15. Telecommunications and the difficulties of getting an up to date connection; 16. Transport infrastructure – crucial to small businesses reliant on deliveries from distant depots. Follow-up: • E-mail exchanges regarding enterprise facilitators.

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Bodmin Roadshow 16 December 2011 Stakeholders: 12 Main topics raised by stakeholders: 1. Bodmin Masterplan and the hold-up with the Core Strategy; 2. Transport links and the importance of the A30 Temple improvement; 3. Bodmin Technology Park and the need for ‘activation’; 4. Rows about Housing numbers in other parts of Cornwall holding up the Core Strategy for the whole of the county; 5. The need for the Chief Executive of Cornwall Council to intervene in the Core Strategy process to ‘release’ the Bodmin Masterplan; 6. Communicating with the LEP, getting a dialogue going; 7. Rail transport – improved services needed e.g. Bd. Parkway to town. 8. Consultation with bigger businesses in Cornwall; 9. Basic skills training in the young – personal confidence can be an issue; 10. Work ethic and mind set in the young; 11. Truro College – apprenticeships for 14 – 16 year olds; 12. The need for vocational training in schools; 13. Links between education and industry; 14. Tolls on the Saltash Bridge; 15. Utilising retired business people as mentors; Follow-up: • Marine proposal on the Tamar – various phone calls and meetings. • Discussion between Chair of LEP and CEO of Cornwall Council regarding the Bodmin Masterplan and the Core Strategy process.

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Newquay Roadshow 16 December 2011 Stakeholders: 13 Main topics raised by stakeholders: 1. Interest in the Growing Places fund; 2. The Employment Zone rates rebate; does it go to the LEP? 3. Advanced Aviation Engineering apprentices – huge local demand; 4. Need for continuity and certainty in the development of Newquay Airport; 5. Airport Duty and the need to remove it; 6. VAT reduction on holiday accommodation; 7. Business Rates; 8. Maintaining AONB despite economic growth; 9. Maximising the opportunities of landscape; 10. Sensitive development of Cornwall; 11. Helping the local economy through small outlets; 12. Transport for young apprentices; 13. Improving the image of the hospitality industry in schools; 14. Don’t denigrate tourism, we need it – there are high skilled occupations; 15. Employment and Skills Strategy – when and how; 16. The need to influence ESF and decisions made by the SFA; 17. Neighbourhood planning and Local Development Orders as an opportunity; Follow-up: • Deloittes report on VAT obtained.

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Falmouth Roadshow 6 January 2012 Stakeholders: 70 Main topics raised by stakeholders: 1. The need to include sectors such as Construction and Farming in the LEP Strategy; 2. Planning and the wasted effort that can go into pre-application discussions; 3. Grants culture – they’re not all bad; need business support to find the right ones, possibly a database; 4. Reinforcing success; 5. Transport infrastructure is key to the LEP Strategy – concentrate on road, rail, air and sea, the private sector will do the rest; 6. Reduced transport times would produce growth immediately; 7. Translating the past into the future to change the mind set of Cornwall; 8. The island mentality has much to offer to economic growth; 9. Business Engagement and the need to develop the knowledge economy; 10. Business networking to aid small business development; 11. How can we speed up the implementation phase of the strategy? 12. What are the hard actions the LEP will deliver? 13. Business support – accessible information, communication, business ideas as a driver; 14. Business support – growth is often low on a company’s agenda if it is struggling to pay the wage bill, business support is needed; 15. LEP should put together a comprehensive directory of businesses in Cornwall; 16. Concentrate on the big issues. Communication for communication sake is nonsense. Just do as you say you are going to do. Follow-up: • None necessary

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St Austell Roadshow 6 January 2012 Stakeholders: 25 Main topics raised by stakeholders: 1. Selling Cornwall to the wider world; 2. Manufacturing and exporting without relying on roads; 3. Superfast Broadband – maximising the opportunity; 4. The need to support Eco-Town, Wave Hub, CUC in the Strategy; 5. The need to support the smaller Cornish ports – don’t lose them like we did our branch lines then wish we still had them; 6. Learning from good examples of Manpower Services unemployment schemes from the 1980s; 7. Training – apprenticeships and the need to spread the risk for small firms; 8. Business support – need better network in Cornwall; 9. Providing for the needs of ‘middle sized’ businesses (i.e. don’t just concentrate on micro and macro); 10. Transparency – crucial in the LEP; 11. Environment is crucial; 12. Train Franchise – overcrowded trains, rail freight (specific ref. to secondary aggregates by Imerys rep.), the need to work with Devon; 13. Newquay Airport and the need for more services; 14. Planning – the need for ‘good’ planning not more planning. Define clear strategic plans and stick to them – LEP needs to be involved. Follow-up: • Listened to a problem that a business had in trying to secure a solution to their inability to secure suitable premises. Provided the business with the contact details

of a company that had such premises.

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Saltash Roadshow 10 January 2012 Stakeholders: 16 Main topics raised by stakeholders: 1. Access to sales/marketing skills training; 2. Business support for small business growth; 3. Practical advice for business start-ups; 4. Skills & training – government restrictions on curriculum development; 5. Business placements for students; 6. Food industry should feature in LEP Strategy; 7. Getting people used to success (and used to sending students to top universities); 8. Using the expertise of retired business people in Cornwall; 9. Access to Finance; 10. Lack of employment land; 11. Risk taking by the LEP; 12. Public sector procurement – needs to be more accessible for small firms; 13. Tamar Bridge is viewed as a restriction by some road distributers. Follow-up: • Supplied the Cornwall Manufacturers Association with the relevant details concerning both the Regional Growth Fund and the Growing Places Fund. • Provided one business with details of a later grant fund that fitted the business idea that they had.

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Launceston Roadshow 10 January 2012 Stakeholders: 6 Main topics raised by stakeholders: 1. Networking rural LEPs; 2. Growing Places fund and its limitations; 3. Road improvements; 4. Superfast broadband to Pennygillam Industrial Estate; 5. Specialist skills training (carpet fitting); 6. Business support – how to get the right support at the right time; 7. Business support in applying for grant aid (‘speaking’ the right language); 8. Promoting the added value that small firms can often provide (it’s not just about product and price, ‘people’ and service matter); 9. Training and the need to reduce the number of ‘empty certificates’ and worthless training initiatives used to fill up a cv; 10. Computer programming as a training option; 11. Low aspirations amongst parents; 12. Benefit culture; 13. Business mentoring – ‘lower level’ mentors are also required for small firms; 14. Backing already successful companies in order to maximise grant aid outputs; 15. Newquay Airport; 16. Future consultations and communication with the LEP; Follow-up: • Provided follow up information to 2 companies regarding the Regional Growth Fund and later on the Growing Places Fund. • At the request of an attendee at the roadshow checked with the Council regarding an opportunity site that might be suitable for a Growing Places Fund

application.

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Isles of Scilly Roadshow 11 January 2012 Stakeholders: 12 Main topics raised by stakeholders: 1. Transport (availability and price) & Communications including superfast broadband (i.e. help to achieve it before 2014 and help to maximise the benefits); 2. The impact of transport priorities for Cornwall on the economy of the islands e.g. Newquay Airport, A30 improvements, Rail links (local feeder and high speed out

of County); 3. Promoting entrepreneurship from a grass roots level taking account of the shortage of affordable housing on the islands. Could the LEP help remove restrictive

planning policies? 4. Skills – attracting and retaining appropriate high quality staff in a low wage economy in a climate of contraction in the private sector (plus issues around NI and

pension contributions); 5. Understanding and valuing the environment of the IOS and the policies to protect it (e.g. an environmental levy); 6. How to spot the opportunities and diversify the local economy away from mainly tourism; 7. Agri-food: Cornwall Agri Food Council (Chairman based on Scilly) keen to come to the LEP with their vision in due course with specific themes relating to low cost

production, supply chain, transport infrastructure and green economy. 8. Low carbon transport ; Renewable energy; 9. Red tape - The government is looking to reduce red tape on the national framework of planning to support island/rural issues – can the LEP exert any influence in

this area? 10. More information easily available about sources of help and finance (especially given the move away from a grant culture and the need to find finance for

development). Follow-up: • Listened to a problem that a business had in trying to secure a solution to their inability to secure suitable premises. Provided the business with the contact details

of a company that had such premises. • Received comments from an IOS business concerning the need to:

• Build a strong voice for the businesses of the IOS independent of the IOS Council; • Improve inter-island transportation links by ensuring that conditions of service are attached to boat licenses; • Reconsider the proposed move of the helicopter service given the potentially deleterious effect that it will have on the postal service and the business

community.

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Liskeard Roadshow 12 January 2012 Stakeholders: 8 Main topics raised by stakeholders: 1. Employment land for future developments; 2. Problems of being a dormitory town to Plymouth; 3. Problems of being in the St. Austell Travel to Work Area; 4. Schools and Education – sixth form students going out of the area to get their education; 5. Low aspirations amongst parents; 6. Revitalising town centres in towns too small for a BID; 7. Keeping profits in the county; 8. Car parking; 9. The need for employment led growth rather than housing led growth; 10. Transport and Communications – The need to focus on this as the means to drive growth in the LEP Strategy; 11. Superfast Broadband - Grants for upgrading computers; 12. Fear of growth amongst small firms; 13. Environment and ‘Clean Cornwall’ is very important driver; Follow-up: • Provided a business that had not been able to attend the roadshow with feedback as to what issues were raised and discussed. • Phone calls and e-mail regarding grants for computer upgrades in advance of superfast broadband.

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Bude Roadshow 13 January 2012 Stakeholders: 7 Main topics raised by stakeholders: 1. Reach out to small businesses; 2. Survival of small businesses currently more important than growth; 3. Firms need to see the value in engaging with the LEP; 4. Include retail in the strategic thinking; 5. Roadshow style meetings are possibly not the way to engage; 6. Help existing firms to grow rather than attracting new ones 7. Include the north and east of Cornwall don’t just focus on the west; 8. Matching funds for EU support; 9. Stop using jargon; 10. Banks, Planning and EA are blockages; 11. We need help to develop our ideas; 12. Public sector need to be more joined-up, e.g. joint permissions on more of a ‘case’ approach; 13. Links between environment and health; with the LEP help research? 14. Need to focus on the ‘idea’ rather than the grant; 15. The potential ‘gap’ for those over 18 not at university; 16. Grants lead to too many public sector created ‘pseudo’ private sector jobs; 17. Use real scenarios like Sharp’s Brewery to make engagement real; 18. Attitude of young people to hard work is an issue – something for nothing culture; 19. Schools need to know that there are firms prepared to back the education of hard workers; 20. More than half of the time spent on a degree is unproductive, speed it up! Follow-up: • Potential project at Camelford – several follow-up phone calls and a visit by Convergence colleagues.

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Cornwall and Isles of Scilly Local Enterprise Partnership – Business Consultative Group (BCG) Inaugural Meeting – Tuesday 29 May 2012 Held in the Tin Room, Heartlands, Pool, Redruth Purpose of the Meeting: The single item agenda sought to record the views of the BCG members in response to the publication of the LEP’s consultation draft Economic Growth Strategy. BCG members were urged to encourage feedback on the document from other stakeholders. The following comments were made:

1. Vision and big picture is there. The cultural issue is what the LEP seems to be addressing, this could be the right vehicle to make a change. We want decisions then we can move on!

2. Getting all the bodies out of the woodwork and talking to each other is very good. For small businesses – if we can make it clear to them where they could find

stuff that will really help. General strategy of getting people to work together is very good.

3. Key part for the LEP is getting local decision making back to Cornwall. E.g. Convergence programme is distant from us compared to Objective One which was more able to work with people on the ground.

4. From the farming side Obj. I etc. we’ve spent it well but we are now having to jump through too many hoops. People have to have something very simple so that

they can get on with their job.

5. We must use the money to help wean ourselves off grant aid. We need flexibilities.

6. LEP is the driving strategy for the LMC because their current strategy is fit for purpose. It is interesting that we are straight into a discussion on grants, we want ideas.

7. Skills development agenda has been led by central government and not by local agendas. We need to get back to addressing Cornwall’s need.

8. National gov. are going to decide how much we get under the next programme and doubtless what it should be spent on. Better links between the LEP and

schools colleges and small businesses. We need to direct resources who don’t know they need it! Apathy is a problem. These were some of the views from mid-Cornwall / St. Austell area. The strategy could beef up the links with education.

9. Where do you get mentors of the right calibre?

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10. Unlocking of potential. Newquay unlocks potential but don’t forget what you’ve done with superfast; that needs to be utilised but also ensure that the rural element of the superfast roll-out is achieved. The LEP should drive this, pushing central gov. or whoever. Private sector must drive this. E.g. the stadium – how do we get the private sector to make it work? LEP could represent the private sector to lean on people and wave the stick if necessary.

11. We need to reach more businesses – engagement is important. Small businesses have the potential to create a huge number of jobs collectively. Make sure that

the tail doesn’t wag the tail in terms of grant aid, Cornwall needs to set the agenda.

12. Cornwall is made up of a lot of small communities they are key. The LEP is going national with its strategy, I would like to see it focus internally and onto small businesses and communities to increase resilience. Build businesses in communities rather than bringing them in. Young people being neglected are the ones who leave school at 16 and start looking for a job. Objective 1 tended to get all the cream, so many smaller projects got lost, we need to see these supported. 80% of the spend in Tesco goes out of county.

13. Skills. Low skill bases, entry level jobs to allow career development can be propagated as a ladder by local firms. How can we reach out to our communities to

ensure that they get the benefit of CUC and all that investment.

14. Individual workforce skills and making a link with small businesses, helping in business support terms these businesses to grow. We are bringing them the ability to up-skill themselves. They can find the information all in one place or at least easily.

15. A business can still be grounded in its community and still reach outside of Cornwall, it can create long term jobs in Cornwall. Reaching the business owners to

get them to find the time and inclination to upskill themselves.

16. 20,000 businesses are VAT registered but a hell of a lot more not VAT registered; these are the ones you need to reach because some of these will grow into the high flyers.

17. National and global potential in Priority 1, we could add to this. Local supply chain is the issue, some firms are missing procurement opportunities (e.g. bus

stops).

18. ‘Apprenticeships’ - don’t get hooked up on the jargon entry level jobs is the term we should use.

19. They are not apprenticeships. Firms can’t afford to pay them and can’t afford the time to support them. The Gov. need to re-think apprenticeships because we cannot see how they get a job at the end of the two years.

20. We have taken on many apprentices to replace some of our older workers they were keen to pass over the benefit of their experience – we think it has been

very good. The Strategy is clear in every respect and it is good to see a strategy with a target as to what you are looking to achieve by 2020. Priority 1 particularly like – connectivity hasn’t been mentioned – infrastructure air road rail whatever. Housing needs a comment, it is an issue in Cornwall, it could unlock growth. Ensure that for every house you build create two jobs. [LEP will stick to core principles, others have the responsibility for housing].

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21. We need to find jobs first, before we build the houses. [We have been on the case as far as the Council’s Core Strategy because it doesn’t make jobs. It will now be re-written to ensure that jobs feature first not just 48,000 houses without the jobs].

22. Mustn’t lose sight of infrastructure and getting in and out of Cornwall. Wider growth hinges on construction and housing.

23. Challenges facing recruitment encouraging people to stay and to grow their careers. 13 times average incomes therefore we need a range of housing. The LEP

has a role to shape and influence policy, the Strategy doesn’t give the impression that this is an important role of the LEP.

24. Previous rounds of investment have had place programme and people programmes are not joined up. Investing in the infrastructure of ‘place’ and joining up programmes is an influencing role that the LEP could do.

25. If we can make a business case and the holistic approach we have hundreds of millions we can’t get into Cornwall. Site assembly and cultural adjustment

requires a partnership approach. We need everyone on-side and we can’t do it. [We need to know what the blockage is in the construction industry. We’ve steered clear of named sectors because if you mention one then you have to mention them all. Businesses with potential irrespective of sector, that’s the target].

26. Speaking common sense in a very common sense way is where the LEP excels. E.g. Hayle – marine renewable energy park, three pinch-point roundabouts are

thwarting

27. Delighted to say that it is succinct and very understandable. Theme, low regulation and tax business environment to liberate small businesses. Wet fish man gave up because he couldn’t take the regulation. We can look at Cornwall through the Balance between the private sector and public sector, we need to work better together.

28. Really pleased to see the Guiding Principle. In terms of Growth I think it needs to be ‘sustainable growth’ rather than just pure growth. Triple bottom line

balance. Social enterprise – language needs to be right so as to not alienate them or the voluntary sector Eden and 15 (eg) can contribute to the growth that you’re looking for. We must be inclusive in the document (perhaps with specifying sectors as such). Low skills jobs can be linked to high skills jobs via the social enterprises and vol. sectors.

29. Why don’t we talk in terms of numbers of jobs as a target? [We would have a jobs in the Business Plan]

30. There a danger of mixed messages ie. Competing with target announced by Business Cornwall. The document might pitch itself against a big grant bid or

competing with convergence. [The strategy would be the backcloth for operational programmes. The two would work together].

31. A glossary may be needed. Using a language that didn’t need a glossary would get everyone behind it.

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32. When I went through the strategy it was very refreshing. Implementation needs to be equally refreshing new ways of doing things. It sounds like the old ways of doing things to me. We must look at a different approach. E.g food and drink, hospitality renounced in the colleges but employers are still struggling to get staff. We need to join it up and to inject some ‘freshness’ into the implementation side of things.

33. What’s in it for the care sector? We employ more than any other sector. We can’t recruit enough people. Camelford new homes only about 40 people wanted

to work with us. I employ about 120 people and I have many vacancies, even management jobs. Tesco take on people at huge rates of pay for three months. How is this going to improve my situation. We’ve got plenty of jobs we just can’t fill them. It slows our rate of expansion. Communication and training is our main issue. We spend £1,000 on someone before we let them look after someone. We can’t communicate the jobs. £1500 a week on advertising and we still can’t fill the posts. Most success is from the Devon papers, I don’t know why.

34. People don’t see it as a job for them. There is a cultural issue. Building on the investment we’ve already made in the CUC and with other training providers we

have to bring them closer to the community.

35. Fish processor analogy – how do we convince people that there are jobs worth taking?

36. Apprenticeship opportunities and helping small employers with getting help advice and grant aid where available. Lack of understanding as to what an apprenticeship is and how it could help their business growth. We produce a simple employer’s guide, of relevance to all sectors. (Noted)

37. Skills – Please ensure that the Employment and Skills Board has colleges on board.

38. Educational value. CAC had a meeting with all sectors representatives. Please look at the whole of the A30 not just the Temple bit.

39. Highways agency solution would divert problem to the A38. There was clearly no alternative to improving the A30 at Temple.

40. Housing. Natural env. Section (Priority 4) could embrace high quality construction and developing a reputation in Cornwall. New delivery, people are tired of 7

and 5 year funding, monitoring should include social media. Communications strategy communicating directly with people needs straight line communication. We intend to talk directly and get direct feedback. Rough and dirty. Roadshows and more of the direct stuff is incredibly informative. The Chairman thanked everyone and for their support and observations. Close 17.06.

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Consultation Process Five working groups were established by the Local Enterprise Partnership in the early stages of development of the EUSIF. The membership of these groups comprised key stakeholders from a wide range of sectors in Cornwall & Isles of Scilly. The following themes were explored: LEP Priority 1 – Business Competitiveness and Growth LEP Priority 2 – Employment and Skills, Labour mobility and Social inclusion LEP Priority 3 – Knowledge, Research and Innovation LEP Priority 4 – Natural Environment (land, sea and resource / energy efficiency) Working Group 5 - Governance An additional Cornwall Council led group looked at Infrastructure requirements for the forthcoming programme. These groups were tasked with developing proposals in response to the Government’s guidance. To ensure that there was broad based input into the development of the EUSIF, a series of workshops was arranged by each of the working groups; these in turn drew attendance from further representatives of the private sector, voluntary and community sector, and public sector. Using a variety of formats and techniques, the workshops addressed:

- Overview of the economy of Cornwall and the Isles of Scilly - Collation of evidence and theme specific Evidence Base - Identification of Strengths, Weaknesses, Opportunities and Threats (related to the theme) - Future / priority needs that will impact upon the economic situation of Cornwall and the Isles of Scilly - Identification of investment risk

An on-line consultation and a telephone survey completed the process (a separate summary of each of these exercises is also is included in Annex 2).

Annex 2 EU Strategic Investment Fund Strategy

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SWOT Analysis

Strengths Weaknesses Importance of the industry to Cornwall and the Isles of Scilly – scale, employment levels, % GVA and its role in managing 80% of the land mass Good reputation for quality products The strength of the ‘Cornwall’ and “Isles of Scilly” brands Supply chain developments to date Circa £300 million invested in developing the sector since 2000 has built strong foundations on which to build e.g. dairy sector High levels of interaction with other industrial/supply sectors Diversity of businesses – large number of small businesses Size of the visitor market and their spend on food, accommodation, etc Strong links between land use and the natural environment as a cultural assetClimatic conditions facilitate extended growing/production systems and the ability to produce a wide range of primary produce High levels of diversified income Quality of the environment

Large number of very small businesses Distance from markets (especially for the Isles of Scilly) Seasonality of trade Average productivity levels well below national averages Low population density Slowing down on innovation and diversity Lack of availability of lending to facilitate business expansion Recruitment opportunities – limited labour pool Skills shortage - especially for managerial and manual skilled positions. High reliance on fossil fuel derived inputs High reliance on the visitor market and various forms of farm diversification income to overall business profitability High reliance on the Single Farm Payment as a proportion of total farm income Too many agencies and initiatives looking to support the sector leads to potential confusion

Opportunities Threats To be first to market as a ‘green’ food economy Reviving importance of agriculture as food security becomes more important Increased exports to existing and developing markets New distribution mechanisms and more integrated transport infrastructure - locally, nationally and internationally More manufacturing/processing opportunities and supply chain integration Further investment from Inward Investors Increased use of Apprenticeships, especially in micro/small businesses Greater use of latest technologies to improve efficiencies (and margin) Larger population to feed may create a larger market Increased deployment of renewable energy as a tool to reduce CO2 emissions, generate energy/income at farm/business/community scale Maximising the benefits of the linkages between land use, food, landscape and tourism Develop the potential of trees, woods and forests to contribute to economic growth Expanding the market for locally produced food and fibre, especially on the Isles of Scilly Maximising and promoting the multiple benefits that can be derived from land assets e.g., food, fibre, health, tourism, community space and carbon sequestration

Continued squeeze on margins Longer term or deeper dip/recession Failure to recognise/mitigate the impact of increasing input costs Wider impact of contraction of the industry across the supply chain VAT at 20% is limiting growth in catering/hospitality/horticultural businesses Potential for negative impacts to Cornish and Isles of Scilly brands Risk of litigation has potential to increase costs Less food wasted by consumers will mean smaller market for food Low consumer spending combined with government cut backs may see a reduction in the size of the market or a trading down from premium products. Drive to low cost production reduces quality Contraction of the visitor market Resilience of transport infrastructure (Cornwall and Isles of Scilly) to adverse weather conditions/climate change Increased competition for agricultural land use Increased area of agricultural land being purchased by investors Failure to recognise/mitigate the impacts of climate change Continued degradation of environmental quality

LEP Land summary paper

SWOT Analysis

29

The culture, communities and environment of Cornwall and the Isles of Scilly will remain special and uniqueInspiring businesses to achieve their national and global potential

Creating great careers here Creating value out of knowledge Using the natural environment responsibly as a key economic asset

• Number of enterprises supported

• Number of new companies supported

• Increase in SME jobs created

• Number of grants

• £ Private investment matching grants

• Increase in domestic/international sales for SME’s

• Increase in SME GVA/Productivity

• Increase in manufacturing productivity of SME’s

• Number of innovative companies that export

• Increase in business survival rates (yrs)

• Number of micro or SME’s supported

• Number of people engaged in job searching on leaving

• Number gaining a qualification on leaving

• Number of employers engaging in positive activities toaddress barriers to work

• Number in employment 6 months after leaving

• Info, financial and trade flow between related sectors

• Number of enterprises bringing new to market products

• Increase in levels of business investment in R&D/intangibleassets

• Number of new researchers

• Number of enterprises working with research institutions

• Number of enterprises introducing new to firm products

• Increase in graduate/post graduate employment in SME’s

• Contribution of innovation initiatives into supply chains

• Transfer of technology between sectors

• Additional renewable energy production

• Estimated decrease in GHG

• Surface area of habitats gaining better conservation status

• Increase visits to supported cultural/heritage attractions

• Increase in energy efficiency of companies, buildings andtransport

• Increase in companies deploying LC practices

• Increase in the share of energy from renewable sources

• Reduction in final energy demand

• Raise awareness in companies about climate change risks/adaptation

• Reduction in carbon intensity of companies, buildings andtransport

• Increase in companies taking action to implement climatechange reslience measures

Agri-food sector development programmeOther relevant delivery mechanisms

Cornwall and IOS LEP Priorities

Delivery

Outcomes

TO3 Improving the productivity, competiveness and profitability of new and existing businesses by adopting an holistic or whole business approach to delivery that combines traditional interventions with a wider range of business support packages such as mentoring, business support grants and loans, etc.

TO3 Supporting increased and more effective market research, marketing, PR and e-marketing in order to grow existing, and encourage new, routes to market

TO3 Supporting enhanced trade development in order to maximise penetration into existing markets and to identify new market and trade opportunities

TO2 Maximising the availability, uptake and use of Superfast broadband in rural areas and isolated communities (the final 5%)

TO6 Maximising the linkages and value derived from the managed environment/landscape

TO3 Supporting the encouragement and facilitation of networks, collaboration and clustering in order to achieve critical mass, address common issues and achieve economies of scale. This may require working across LEP areas where appropriate.

TO7 Investigating and encouraging transport, distribution and logistics solutions in order to reduce cost, improve supply chain efficiencies and access new markets

TO3 Encouraging the adoption of lean production techniques and innovation across the supply chain which in turn will lead to the efficient use of natural resources and productivity improvements

TO3 Supporting quality improvements at product and business level

EU Thematic Objective

Sub-priorities

TO10 Encouraging collaboration and the sharing of skills and expertise across the supply chain and across sectors

TO10 Promoting agriculture, horticulture, forestry, food processing, food service and land management as a career path via improved engagement with schools, colleges and universities

TO3 Promoting the opportunity and role of starting new business as an alternative to direct employment

TO3 Supporting a tailored package of support designed to address and encourage the development of family businesses (incl basic skills provision, higher level management skills, leadership, risk management, succession planning, etc)

TO10 Creating a package of continued professional development designed to address identified areas of development at both business and individual level (including a specific package of support targeted at future business leaders and higher level skills)

TO10 Supporting skills development where a direct impact on productivity and/or growth is likely to be delivered

TO3 Improving the links between business development grants and skills provision support

TO8 Supporting the creation of employment opportunities and career development that have the potential to lift the average salary for Cornwall and the Isles of Scilly above £17,389 (2012 figure)

EU Thematic Objective

Sub-priorities

TO1 Increasing the uptake of research and development and innovation activity in the business base and encourage vertical and horizontal integration between businesses and other sectors of the economy

TO1 Encouraging a greater uptake of knowledge transfer and extension activity so that research is transferred into tangible business benefit

TO6 Improving the integration between activity designed to deliver growth and that designed to improve health and wellbeing and the enhancement of the environment

TO1 Increasing the development of new products and production processes in the supply chain.

TO1 Improving the engagement and linkages between businesses and relevant UK , EU and global research institutions

TO3 Increasing the use of existing (and where appropriate encourage the development of new) research and development facilities and activities designed to meet identified business needs

TO3 Targeting research at development funding at activities that deliver improved input/output ratios

TO9 Improving the understanding of rural/urban interdependencies in order to improve resilience and identify new market opportunities

TO6 Exploring the opportunity to create added value through soil/terrestrial carbon sequestration and other ecosystem goods and services

EU Thematic Objective

Sub-priorities

TO6 Developing “environmentally sustainable” supply chains. This will include encouraging the uptake and use of low carbon technologies/production systems and enhancing biodiversity

TO6 Exploring the opportunity to create added value through soil/terrestrial carbon sequestration and other ecosystem goods and services

TO6 Enhancing the support available in Areas of Natural Constraint, Severely Disadvantaged Areas and Disadvantaged Areas

TO4 Improving the resource efficiency of the production, processing, distribution and consumption processes

TO4 Increasing the generation of locally owned renewable energy by encouraging dispersed generation technologies at farm/business/community scale in order to reduce carbon emissions, save costs, generate additional income and build resilience

TO3 Developing a network to share best practice between individuals, companies and across sectors

TO6 Increasing the area of woods and forests brought into sustainable management and increase the area of new plantings

TO3 Facilitate business succession and new entrants into farming and the wider land based the supply chain

TO3 Encouraging the development of rural tourism where there is a direct benefit to the land based sector and delivers growth

TO5 Facilitating improvements in animal and crop healthTO3 Encouraging new business development/farm

diversification where it helps to improve overall business profitability

EU Thematic Objective

Sub-priorities

LEP Land summary paper

30

Strengths Weaknesses Importance of the industry to Cornwall Tourism spend on food The ‘Cornwall’ brand & strong regional identity Size, employment and value Proximity to fishing grounds and diversity of fish species & catching methods Seafood Cornwall Partnership and Cornwall Marine Network as two

examples of sector driven support organisations Reputation for quality fish and fish products Supply chain developments to date Capacity to process within Cornwall Fishing industry and the way it has tackled change/development Established export markets Entrepreneurial spirit / innovation Strong marine leisure sector and wider value of sea related tourism, surfing,

engineering, etc Diversity of businesses – large number of small businesses, family fishing

vessels, etc Fish is a healthy food and a valuable local source of protein Strong working relationships and partnership working

Lack of supply of fish due to quota availability and fish stock levels Large number of very small businesses  that find it difficult to achieve economies

of scale Over reliance on markets suffering from recession e.g. Spain. Cost to & distance from markets Harbours, wharves and fleet require investment due to mixed quality of port /

harbour infrastructure Lack of vessel repair facilities in Cornwall Seasonality (fluctuation) of trade Slowing down on innovation and diversity High cost of entering the industry prohibitive to new entrants e.g. cost of quota Recruitment opportunities – limited labour pool – lack of new entrants into the

catching profession Unsociable working hours Reliance on fossil fuel derived inputs Management decisions made outside Cornwall and perceived over regulation Lack of baseline information on the economic value of the industry Negative publicity & confused consumers Cost of coastal property/land to develop fishing areas and related infrastructure Business start up – low income, hard to start up Lack of relevant and specialist business advice Issues accessing match funding for grant applications as high risk industry for

seeking bank loans Little  economic benefit from fish waste Established approaches limit innovative solutions (do what we have always

done) A lack of promotion about the sustainability credentials of fishing resulting in

negative consumer image Difficulty in accessing EFF to support industry projects A lack of understanding of the relevance and potential for aquaculture growth in

the region, particularly amongst decision makers and advisors. Difficulty in accessing appropriate water quality for aquaculture.

LEP Sea summary paper

SWOT Analysis

31

Opportunities Threats

Secure Quota for Cornwall (to guarantee supply & assist new entrants) Fish stock recovery Invest in infrastructure (including IT) Development of marketing & PR in order to increase the home market for

sea related goods To be first to market as a ‘green’ fish economy – taking advantage of

sustainable catching methods, local supply chain and the value of the CornishBrand

The next ‘big thing’ (or preferably several) needed – another FifteenCornwall or Rick Stein, or products / brands that retain value in the localeconomy

Increase awareness of Cornish fishing / seafood industry Create own brand quality assurance scheme Develop high value markets & build established markets. Exports to developing markets More manufacturing/processing in county to maintain margins New distribution mechanisms Re‐skill to meet new sector and market needs Support for apprenticeships schemes, which would include higher level

training locally Chance for diversification and build transferable skills into other marine

industries (energy, MPA’s, data collection) Greater use of latest technologies to improve efficiencies (and margin)

including Superfast Broadband for all fishing areas & accessible to processors Reviving importance of fishing as food security becomes more important Larger population to feed Continue to maximise added value & economic development through

tourism Scope for greater use of coastal communities – Build upon existing public engagement to  emphasise the fishing industries

sustainability credentials and management practices Create an infrastructure to facilitate investment and demonstrate feasibility

for both onshore (land based recirculation technology) and offshoreaquaculture

Lack of fish supply due to lack of Quota, effects of climate change and structuralchanges in marine ecosystem

Increase in regulation Squeezed margins  as costs increase with limited ability to pass these on up the

supply chain Recession ‐ reduced consumer spending UK / massive impact on Spanish

markets Longer term dip, deeper dip Failure to recognise/mitigate the impact of increasing input costs Wider impact of contraction of fishing industry on Cornwall’s economy Globalisation & fish farming Increases in pollution and other environmental factors that have a negative

impact on fish stocks Changing demands of traditional continental markets VAT at 20% is damaging to catering/hospitality Potential for negative impacts to Cornish brand Risk of litigation – health and safety Negative publicity from some environmental groups / celebrity chiefs Low consumer spending combined with government cut backs may see a

reduction in the size of the market or a trading down from premium products. Skills mis‐match Loss of services Small scale funding deters larger projects that are needed to make a real impact Competition for space Lack of capacity in community groups Willingness of working cooperatively Reduced consistency of seasons and increased variability in weather patterns

may make it more difficult to plan fishing schedule, fulfil contracts, maintaincash flow, etc

SWOT Analysis

LEP Sea summary paper

32

The culture, communities and environment of Cornwall and the Isles of Scilly will remain special and unique

Inspiring businesses to achieve their national and global potential

Creating great careers here Creating value out of knowledge Using the natural environment responsibly as a key economic asset

TO10 Encouraging skills development in traditional, specialist and new technologies in order to improve the competitiveness of the sector. This will include activity ranging from accredited and non accredited vocational skills to PhD’s

TO10 Encouraging the retention and development of existing business base by creating improved linkages between industry and skills providers via the increased use of apprenticeships in SME’s

TO3 Encouraging new entrants by promoting the sector as a career path via improved engagement with schools, colleges and universities and supporting new business development

TO3 Supporting diversification and cross sector employment opportunities by working with wider food processing and marine sectors in order to share skills and expertise and develop careers across the supply chain

TO10 Developing more accessible marine sector apprenticeships and other skills pathways that are responsive to industry need and available to both small and large businesses alike

TO6 Promoting information capture and dissemination in order to improve the provenance of the catch

TO3 Supporting the up skilling of all those involved in the Sea sector so that they act as ambassadors for the sector itself, the products and services produced by the businesses involved and the value of the sea based economy

TO3 Facilitating knowledge exchange with other regions and countries

TO1 Improving fish stock data provision and measure the impact of stock and habitat enhancement

TO1 Investigating the ecosystem service value of the Cornwall and Isles of Scilly Fisheries industry

TO1 Encouraging an improved balance between support for traditional skills and support for innovation e.g. traditional vs selective gear

TO1 Encouraging Cornwall and the Isles of Scilly to become a Centre of Excellence in demonstrating a greater uptake of knowledge transfer and extension activity so that research is transferred into tangible business benefit.

TO1 Increasing the development of new products and processes in the supply chain in order to facilitate a “land all/sell all” policy

TO6 Improving the integration between activity designed to deliver growth and that designed to improve health and wellbeing and the enhancement of the marine environment.

TO3 Improving the engagement and linkage with the relevant UK and EU research institutions and sector development organisations in order to build the capacity of the sector to create and respond to new market opportunities.

TO8 Promoting knowledge transfer to the food service and hospitality sector in order to improve product knowledge and increase local sales

T01 Supporting R&D into novel aquaculture species

TO6 Supporting the uptake of more sustainable management practices in order to enhance and realise the full value of the marine ecosystem by encouraging the development of industry supported Marine Conservation Zones. This would necessitate a closer collaboration between the fishing, fish processing, sea food, tourism and environmental sectors/organisations

TO6 Increasing the promotion of local and sustainable fish and fish related products by improving the awareness of, and value attached to, sustainable management practices.

TO6 Developing “environmentally sustainable” supply chains. This will include encouraging the uptake and use of low carbon technologies/production systems/selective technologies and enhancing biodiversity

TO4 Improving the resource efficiency of the production, processing, distribution and consumption processes.

TO8 Supporting the promotion and development of surfing, leisure sailing and wider marine “brand” in order to increase the volume and value of related economic activity

TO9 Supporting improvements in the public realm within fishing and marine communities in order to increase visitor “dwell time” and spend

TO6 Ensuring that a sound evidence base, including socio-economic impacts and valuation of ecosystem goods and services, is used to inform all strategic decision making in the maritime area

TO* Supporting and promoting sustainable levels of water-based and coastal recreational activities

TO6 Actively working with regulators, landowners and businesses to maintain and improve Cornwall’s water quality (inland and coastal)

• Number of micro or SME’s supported• Number of people engaged in job searching on leaving• Number gaining a qualification on leaving• Number of employers engaging in positive activities to address

barriers to work• Number in employment 6 months after leaving• Info, financial and trade flow between related sectors

• Number of enterprises bringing new to market products• Increase in levels of business investment in R&D/intangible

assets• Number of new researchers• Number of enterprises working with research institutions• Number of enterprises introducing new to firm products• Increase in graduate/post graduate employment in SME’s• Contribution of innovation initiatives into supply chains• Transfer of technology between sectors

• Additional renewable energy production• Estimated decrease in GHG• Surface area of habitats gaining better conservation status• Increase visits to supported cultural/heritage attractions• Increase in energy efficiency of companies, buildings and transport• Increase in companies deploying LC practices• Increase in the share of energy from renewable sources• Reduction in final energy demand• Raise awareness in companies about climate change risks/

adaptation• Reduction in carbon intensity of companies, buildings and

transport• Increase in companies taking action to implement climate change

reslience measures

Cornwall and IOS LEP Priorities

Delivery

Outcomes

TO3 Supporting the provision of infrastructure (harbours, vessels, markets, processing facilities and engineering/repair space) in order improve the productivity and competiveness of the entire sea/marine sector

TO3 Securing additional quota for the Cornish and Isles of Scilly fishing fleet, especially for new entrants

TO7 Investigating and encouraging, transport, distribution and logistics solutions in order to reduce cost, improve supply chain efficiencies and develop new markets.

TO3 Supporting the encouragement and facilitation of a Cornwall Maritime Forum in order to achieve critical mass, address common issues and achieve economies of scale

TO3 Improving links to the wider agri-food sector, tourism and food service sector in order to develop uses for all species, reduce waste, address seasonality and encourage new product development.

TO3 Increasing and more effective market research, marketing, brand development, and PR in order to recognise and realise both the direct sustainable economic and indirect (ecological) value of all species

TO3 Increasing penetration into existing markets, identify new markets and generally increase the consumers awareness of fish and fish products

TO3 Encouraging integrated specialist business support, advice, mentoring and business development grants and loans

TO3/O9 The adoption of Community Led Local Development as a delivery model to support improving the competitiveness and development of businesses in fishing communities.

TO8 Encouraging the development of the wider sea based tourist/leisure market through closer integration with traditional sea based sectors

TO1 Creating the infrastructure to facilitate easy access to water supplies to enable aquaculture start up and demonstration.

TO6 Creating a national centre to deliver sustainability credentials of industry and promote management practices

TO3 Continuing to encourage and support cross-border integration and cooperation with the Isles of Scilly, Plymouth, Devon, Europe and other relevant areas over the management of the maritime area.

• Number of enterprises supported• Number of new companies supported• Increase in SME jobs created• Number of grants• £ Private investment matching grants• Increase in domestic/international sales for SME’s• Increase in SME GVA/Productivity• Increase in manufacturing productivity of SME’s• Number of innovative companies that export• Increase in business survival rates (yrs)

Sea-sector development programmeOther relevant delivery mechanisms

EU Thematic Objective

Sub-prioritiesEU Thematic Objective

Sub-prioritiesEU Thematic Objective

Sub-prioritiesEU Thematic Objective

Sub-priorities

LEP Sea summary paper

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SWOT Analysis

LEP Renewable energy and energy ef f iciency summary paper

Strengths Weaknesses• Unique natural resources: highest solar irradiation levels in mainland UK: wind, wave, tidal and

geothermal resources

• Potential to build on existing Objective One, Convergence and Rural Development Programmefor England (RDPE) investments

• Potential for biomass (energy crops) and a significant livestock sector providing an opportunityfor an increased uptake of anaerobic digestion

• Regional commitment to building a world leading renewable energy sector through theSouthwest Renewable Energy Manifesto

• Recent growth locally and nationally in the renewables sector

• Training and skills development opportunities at both HE (Higher Education) and FE (FurtherEducation) levels

• Potential to develop replicable pilot projects across the UK (i.e. smart energy infrastructure)

• Strong sense of place and community identity (localising energy spend)

• Well established, well networked businesses and community energy groups

• Local planning guidance and support frameworks in place

• Requirement to protect important landscape and heritage asset

• Local communities and businesses not receiving sufficient proportion of the financial benefitfrom large-scale renewable energy developments: significant share of available grid capacity already allocated

• Distance from markets

• Peripherality – leading to high energy costs (particularly for the Isles of Scilly)

• Poor energy performance of much of the existing building stock (solid walls, Cornish Units etc)

• Constrained gas grid infrastructure resulting in high demand for heating oil and propane gas(associated increases in cost and carbon emissions)

• Lack of regulatory framework for renewable energy project development i.e. geothermal

Opportunities Threats• Natural resources: solar and geothermal potential as well as wind, wave, tidal, biomass for energy

crops and anaerobic digestion

• National, European and global emphasis on increasing renewable energy production andreducing energy demand

• Job creation, GVA growth through energy efficiency and carbon reduction measures associatedwith retro-fitting Cornwall and the Isles of Scilly’s poorly performing building stock

• Energy Company Obligation (ECO) funded fuel switching (in off-gas areas) and heating systemupgrades

• Cornwall taking a leadership roll in developing smart energy solutions designed to support theregion’s transition to a more sustainable energy system

• Opportunities for Energy storage (including pump storage)

• Development of heat networks

• Investors looking to capitalise on local opportunities

• Exporting skills globally

• Cornwall and Isles of Scilly LEP independence could reduce short term political reactivitywitnessed under previous EU programmes, ensuring a long-term strategic approach to developing a low carbon economy

• National, European and global emphasis on sustainable consumption and citizen wellbeingthrough the promotion of natural and healthy lifestyles

• Organisations and investors from outside the local area benefiting disproportionally from large-scale renewable energy generation developments. This results in missed opportunities where best sites are being developed using business models that don’t secure sufficient benefit for the region’s economy

• Lack of clear long-term policy in regard to setting and meeting carbon reduction and renewableenergy generation targets (i.e. lack of progress in respect of meeting 2030 decarbonisation target) creating uncertainty for investors

• Reduction in FiT (Feed in Tariffs) for anaerobic digestion (below 500kw) making small plantsuneconomic

• Practicality of retro-fitting old buildings

• Capacity of the grid

• Low levels of R&D investment

• Difficulty in obtaining risk finance for renewable energy projects

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The culture, communities and environment of Cornwall and the Isles of Scilly will remain special and uniqueInspiring businesses to achieve their national and global potential

Creating great careers here Creating value out of knowledge Using the natural environment responsibly as a key economic asset

• Number of supported enterprise exporting products or servicesinto global markets

• Additional renewable energy generated• Number of energy users connected to smart grid• Estimated decrease of GHG emissions• Number of communities engaged in local energy generation

projects • Increase in jobs created• Increase in manufacturing productivity of SMEs• Number of businesses connected to superfast broadband

• Number of skills and training programmes completed in responseto employer demand

• Number of graduates and apprentices hosted by SMEs• Number of households with improved energy consumption• Reduced energy consumption of public buildings• No of people engaged in skills development or training

programmes• Number people in employment in renewables and energy

efficiency sector 6 months after leaving FE or HE • Number of employers engaging in positive activities to address

barriers to work • Number of people and businesses engaged in carbon literacy

programmes • Number of business start ups in the renewables and energy

efficiency sectors

• Number of enterprises cooperating with research institutions;private investment; new to market or new to firm products

• Private investment matching public support in innovation or R&Dprojects

• Number of new research posts implemented• Contribution of innovation initiatives into supply chains• No of graduates or post graduates employed in SMEs• No of businesses invested in R&D• Number of pilot projects developed into commercial models• New products and services entering the supply chain

• Additional renewable energy generated• Decrease in GHG emissions• No of community energy projects implemented• Increase in energy efficiency of companies, households, buildings

and transport infrastructure • Increase in companies deploying LC practices• Increase in companies taking action to implement climate change

resilience measures• Reduction in energy demand

Delivery

Cornwall and IOS LEP Priorities

Outcomes

TO1 Supporting the development of a smart energy infrastructure (maximising local business opportunities)

TO3 Ensuring a balanced approach to driving value in existing business base and encouraging growth of new high value businesses

TO3 Building on Objective 1, Convergence and Rural Development Programme for England (RDPE) investments

TO3 Implementing support packages to enable businesses to: • Export products and services into global markets• Access peer support, learning networks or clusters• Diversify from core activity into technology and services

that can be sold into the renewable energy and energyefficiency marketplace

• Access incentives to start-up or expand (i.e. throughEnterprise Zones)

• Access services to help deliver resource, energy andcarbon efficiency gains

TO4 Optimising community benefits accrued from energy developments (maximising through re-investment in infrastructure, generation and efficiency outcomes)

TO4 Driving growth opportunities in energy efficiency (clear employment benefits in terms of installation which is labour intensive and manufacturing)

TO4 Maximising supply chain development: encouraging local manufacture of components required in renewable energy generation and smart distribution

TO3 Supporting Co-investment with large organisationsTO2 Completing superfast programme i.e. fibre to premises

(especially to businesses in ‘cluster areas’)TO5 Implementing a marketing campaign: let the world know

that Cornwall and the Isles of Scilly are a leading ‘green and marine’ region

TO6 Ensuring that all new development reaches high environmental standards (promote as exemplar)

TO7 Supporting redevelopment and improvements to existing ports and harbours (co-investment)

EU Thematic Objective

Sub-priorities

TO1 Taking a flexible approach to the delivery of workforce skills: responding to employer demand. This will require investment to design new delivery models i.e. e-learning platforms and the development of bespoke qualification routes i.e. higher level apprenticeships

TO10 Creating pathways to employment through:• Investing in initiatives that support graduate

employment and apprenticeships hosted by SMEs in the sustainable energy sector

• Providing support mechanisms that enable collegeleavers and graduates to gain work experience in roles related to the low carbon and resource efficient economy

TO10 Development of the skills aspect of key initiatives. This may include a focus on training requirements linked to a number of related projects (i.e. deep-geothermal, marine, smart solutions etc)

TO10 Investment in retro-fit skills programmes and employment opportunities

TO10 Encouraging the sharing of skills and expertise across the supply chain and sectors.

TO10 Promotion of the sector as a career path via improved engagement with schools, colleges and universities. This activity should market the range of opportunities across the supply chain

TO5 Encouraging increased sustainability, environmental and carbon literacy at all levels of education and skills development (schools, HE, FE, adult education etc)

TO3 Supporting business start up culture: Funding support to consolidate good quality investable propositions: Particular need for proof of concept support and early stage funding for new innovation

TO3 Availability of funding at all stages in the business lifecycleTO10 Implementing continued professional development

schemes designed to address identified areas of development in businesses and individuals

TO10 Supporting skills development where a direct impact on productivity and/or growth can be demonstrated

EU Thematic Objective

Sub-priorities

TO1 Building research capacity with a focus on developing or strengthening world class excellence: Creating centres of excellence as focal points for businesses to develop intellectual property (i.e. National Solar Centre, Wadebridge Smart Hub etc)

TO1 Supporting eco-innovation as a key feature of projects under this priority

TO1 Growing levels of business innovation across Cornwall and the Isles of Scilly i.e. providing ‘investor readiness’ support through access to finance for innovative businesses

TO1 R&D investment in off-shore renewables, building on previous Convergence investments (i.e. Wave Hub, Fab-test, PRIMARE and linking this to the Marine Energy Park activity, Falmouth Marine School and other initiatives)

TO1 R&D investment to support the development of the commercial productions of renewable technologies (i.e. geothermal and anaerobic digestion)

TO1 Capacity building linked to improving access to research funding (i.e. support to develop competitive Horizon 2020 bids)

TO3 Facilitating knowledge transfer with respect to creating value from sustainable / smart energy solutions

TO 10 The provision of education programmes to inform businesses about innovation and providing direct support to stimulate activity i.e. R&D grants, voucher schemes and collaborative research programmes

TO4 A public awareness and education campaign in relation to sustainability (retro-fit etc)

TO3 Supporting the development of new products and processes in the supply chain.

TO1 Increasing the use of existing (and where appropriate encourage the development of new) research and development facilities designed to meet business needs

TO1 Supporting the commercialisation of pilot projects TO1 Develop the innovation centre offer and support

implementation of Grow on Space TO4 Develop carbon management and reduction research and

intelligence capabilities in order to create value through the commercialisation of low carbon technologies and/or carbon service offers

EU Thematic Objective

Sub-priorities

TO4 Supporting Cornwall and the Isles of Scilly to maximise its Unique Selling Points (USP) in relation to becoming a ‘green exemplar’ region

TO4 Supporting communities and businesses to develop ‘local energy models’

TO4 Supporting all businesses to measure, manage, minimise and report their carbon footprint and to unlock revenue generating opportunities associated with the low carbon economy

TO4 Supporting the development of environmentally sustainable supply chains through: • Mechanisms that promote carbon management (i.e.

follow on from Clear About Carbon project) • Encouraging sustainable consumption and production

practices and the use of low carbon technologies • Minimising negative impact on the environment and

encouraging biodiversity TO4 Encouraging resource, energy and carbon efficiency as a

driver for business productivityTO5 De-risking project investment (planning, co-investment

and development) TO5 Supporting land based businesses to improve their

resource, energy and carbon efficiency and manage their land in a more sustainable way

TO4 Piloting energy storage, demand management and response solutions across a range of scales and applications

TO4 Establishing a benchmarking framework and means of measuring the value of associated goods and services to the region’s economy (i.e. ecological economics approach)

TO4 Increasing the generation of renewable energy by encouraging dispersed technologies in order to reduce carbon emissions, save costs, generate additional income and build resilience

TO4 Supporting locally owned energy technologies and models

TO4 Improving the integration between activities designed to deliver growth, improve health and wellbeing and the enhancement of the environment.

TO7 Encouraging the adoption of e-mobility and other low carbon transport solutions, including through the delivery of an electric vehicle charging infrastructure and the decarbonisation of public and private fleets

EU Thematic Objective Sub-priorities

LEP Renewable energy and energy ef f iciency summary paper

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Knowledge, Research & Innovation Workshop Findings Part 1: What does ‘good’ look like? What will C&IoS look like in 2020 if we have been successful? Each table was asked to consider the questions and present their top answer to the rest of the delegates.

1. Higher average wages driven by higher quality jobs 2. Increase in the number of successful business start ups 3. Cornwall and the Isles of Scilly is accepted as a location for world class companies and careers 4. Increase in the number of businesses exporting products or services 5. Increase in the number of businesses engaged in innovation and/or collaborative research 6. Intellectual Property is ‘realised’ as a driver for business profitability

Part 2: Where can C&IoS demonstrate a competitive advantage? The group were shown 4 areas where evidence had identified the potential for C&IoS to have a competitive advantage. These were:

• E-health and e-wellbeing • Renewables and energy • Information Economy • Agri-tech

Discussion soon identified that workshop delegates believed that Creative Industries and Marine should also be included. The group were then asked to identify the assets and market opportunities / needs for each of these sectors to support our assumptions that we do have a competitive advantage

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Renewables and Smart Energy Assets Physical Assets • Largest wave demonstrator site in the world – Wave hub • Supporting wave infrastructure e.g. Fablab. Plymouth Marine Innovation etc • Environment and Sustainability Institute • Innovation Centres • National Solar Centre • Goonhilly – solar power research • Goonhilly – satellite access to control and monitor remote installations • Potential for geothermal energy Knowledge Assets • PRIMaRE (research capacity for offshore renewables) • Earth Science Knowledge • Skills across all our HE and FE organisations Business Assets • Range of low carbon companies keen to collaborate to support this agenda • Creative and IT companies able to support this agenda • Number 1 ground source heat pump company Other • Community energy initiatives (e.g. Wadebridge) • Load levelling

Market Opportunities • Become sustainable in our market needs • Household user interfaces for Smart Grid • Smart energy is an emerging global market • Smart Grid can support the local energy market, which can lead to energy

savings for residents • Smart control of renewable and energy assets e.g. using Goonhilly satellites • Market development, supply chain development and commercialisation

(including I.P.) • Development of technical education for the DIY end of the market • Consultancy offer in offshore renewables • Deep geothermal

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Digital Economy Assets Physical Assets • Superfast Broadband infrastructure • Innovation Centres • Capability in ESI in data modelling / data science (big data) • Goonhilly space science assets Knowledge Assets • Computing expertise in Plymouth University and University of Exeter • Linking creative and digital expertise at Falmouth University • Access to a network of universities through Goonhilly astronomy Business Assets • Profitable and growing ICT sector • Proportionally large, and data rich, public sector

Market opportunities / needs • Growth of Apps in the creative sector • Information based services in emerging sectors such as e-health and smart

grids • Embedded software development • Distributed workforce platform • Data collection, via Goonhilly, for use here and for sale abroad • Network of ultrafast business parks throughout Cornwall • Encouraging the development of more digital products and services • Improve the use of ICT by business • Improve the digital literacy of Cornwall and IoS • Improve information based services in bedrock sectors • Improve access to superfast speeds (30mb+) • Ensure sufficient appropriate higher level ICT skills • Market Cornwall as ‘little Cambridge Science Park’

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Marine Assets Physical Assets • Falmouth Marine School / Engineering • Falmouth Harbour • Plymouth University Marine facilities • Tidal resources, floating wind and wave Knowledge Assets • Strengths in Plymouth University, Exeter University and Cornwall College • Cornwall Marine Network • Marine Innovation Service • MERIFIC project Business Assets • A&P • Pendennis Shipyard • Well established network of marine businesses

Market Opportunities / needs • Aquaculture • Exploiting technology e.g. low carbon, materials etc • Export opportunities • Tourism – e.g. marine leisure • Marine drone technology • Advanced engineering

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e-health and e-wellbeing Assets Physical Assets • Health and Wellbeing Innovation Centre • Medical School • European Centre for Environment and Human Health • Dental School • Superfast Broadband • National Centre of excellence and assistive technologies • Cornwall mobility centre • AIR Knowledge Assets • Good knowledge base in assistive technologies • ICT and engineering skills to develop bespoke technologies • NHS Innovations SW and SW Health Innovation (AHSN) Business Assets • Private assistive technology providers • Strong ICT and design sectors Other • Coherent partnerships in place • Health and Wellbeing Board • Joint Strategic needs and assessments • Strong community and voluntary sector supporting health and wellbeing • E-health demonstrator experience

Market opportunities / needs • Internationally growing market – set to be $170 billion by 2015 • Export opportunities for knowledge and training • Holidays with a healthcare dimension • App based interface • Potential for export opportunities for delivering services and equipment to

meet the needs of aging populations in the far east • ‘big’ health data • Potential for consumers to input into provision solutions – social innovation • Develop a new assistive technology sector to develop products and services

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Creative Industries

Assets Physical Assets • Academy for Innovation and Research • TIC • Superfast Broadband • Creative heritage e.g. Hepworth, Leach etc • Eden Knowledge Assets • Falmouth University • Expertise in other FE and HE institutions • Human capital in creativity Business Assets • One of the largest creative clusters in the Country • Emerging digital games sector • Vibrant and growing ICT sector

Market Opportunities • Opportunities around tourism, culture and heritage • Needs for specialist incubation space • Need more specific creative and ICT skills • Need investment models suitable for the sector

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Enabling Measures to Support Research and Innovation

• Joined up approach to research – consider a Cornwall Research Council • Better market intelligence and collaboration could lead to an increase in product development • Support in applying for funding • Fast decision making for local funding • Flexible research and development grants • Open and engaging networks • Effective horizon scanning to identify emerging market opportunities • Clear and effective signposting • Actions to attract, support and develop outstanding people in Cornwall and IoS • Mechanism to share good ideas and encourage communication across all stakeholders (private sector, public sector, VCS etc) • Ensuring Cornwall Council (and other organisations) employ people with the right skills to take forward this work

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Summary

The workshop bought together businesses from a range of sectors who provided valuable input into the developing research and innovation stand of the 2014-2020 European Programmes. Key outputs from the workshop are:

• Evidence suggests Cornwall and the Isles of Scilly need to invest in research and innovation to increase the rates that businesses engage in this area to help drive job creation and growth

• Marine and Creative Industries were added to the Smart Specialisation areas • Helpful evidence in terms of assets, needs and market opportunities were provided against the 6 potential Smart Specialisation

areas – this information has been used to inform an independent piece of research to review our Smart Specialisation Framework • Detailed list of barriers to, and enablers of, innovation were identified. This work has been shared with the SME Competitiveness

Group to ensure issues are understood across LEP priorities

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EU Structural and Investment Fund Strategy 2014-2020 ‘Finance for Growth’ Workshop Tuesday 30 July 2013 10.00 – 13.00 The ‘Sandpit’, Academy of Innovation and Research, Tremough Campus, Penryn, Cornwall Introduction Chairman, Cornwall & Isles of Scilly Local Enterprise Partnership set out the overarching mission and context to the workshop. LEP Board member – focused on the purpose of the day; clarified the EU definition of ‘Small and Medium size Enterprise’; touched on the LEP’s vision and focus; lessons to be learnt from previous programmes; the need for lasting solutions and impacts; the need for evidence of demand or gaps in the market. Exercise 1 – Issues Why are (some) businesses unable to access finance? Delegates identified the following five main reasons (individual contributions are listed below each heading): 1. SME Strategy, Planning and Management Skills - Issues: Lack of business plan, ambition, strategy or confidence Lifestyle business Poor financial/business/management skills, Risk averse, fear of failure Lack of sound business principles; Inaccurate perception of banks or grant making bodies No track record Poor presentational skills Poor idea/business plan/ lack of research/limited market 2. Financial Structure of SMEs - Issues: Lack of credit history; Lack of own capital / security or willingness to contribute; Poor existing structure;

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Need for partnership at an early stage; Not ‘investment ready’ Inappropriate funding at the outset limits options later. Social Enterprises find access to suitable security for finance difficult due to the nature of the business, however, they tend to be good employers – support is needed. 3. Gaps in the family of Financial Instruments - Issues Assumption that ‘the bank’ is the source of finance; Lack of awareness of the range of finance opportunities; Grants are seen as ‘a gift’ therefore preferred (i.e. a ‘grants culture’); Long lead-times to deliver a revenue stream to service the loan are not favoured; Student loans and property crisis mean that people have less capital available; Terms and conditions of finance unacceptable to business. 4. Gaps in support for certain markets - Issues: Market limited in Cornwall (population, skilled labour, geography, seasonality, small businesses); Project has long lead times to deliver revenues; Social enterprise sector limited in Cornwall Lack of SME equity providers; Lack of Security; Balance of debt and equity (management unwilling to put their own money up rather than borrow); Lack of access to grants for Tourism; Reluctance of the bank to lend to certain sectors e.g. Property, Hospitality. 5. Signposting and Advice – Issues: Lack of information about and signposting to sources of finance; Concerned about application process; Regard ‘the bank’ as their funding or financial advisor; Poor quality advisors appraising the firm of opportunities; One or two year old SMEs often faced with the most inexperienced bankers at a time when they have the greatest need; Business support needs to be ‘business centric’. Exercise 2 – Solutions What additional activities, products or services are required to ensure that more of these businesses access appropriate finance? Listed under each of the five priorities determined in the first exercise, the following solutions were suggested:

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1. SME Strategy, Planning and Management Skills – Solutions Specialist mentoring so MDs and CEOs can interact with fellow business people; A Non-Executive Director (the training of these needs support) funded on back of ‘Growth Voucher’; ‘Money’ with the condition of advice; Provide pre-finance support for management skills training; Create a network of young managers (including social media approach); High quality facilitators at management clubs (+ top speakers); Network for family businesses; Bring together people on management programmes – networking, ideas exchange; Break MBAs into bite-size chunks to allow firms to run their business and study; Middle management need to grow with the life-cycle of the business; deliver ‘luncheon club’ for managers through existing vehicles e.g. Chamber, FSB etc. 2. Financial Structure of SMEs – Solutions Early stage advice on the best options for legal structure and financial structure; Help businesses understand the value of their business; Some sole traders start up as limited companies giving them unnecessary costs; Explain options to start ups e.g. they can finance by having a part time job too; Vouchers to help pay professional advice; Most firms don’t want to give up equity, ‘incentivise’ this option where appropriate; Equity provision – less than 50% + low cost (long term investment); Link to educational institutions – business set / structures / support. 3. Gaps in the Family of Financial Instruments – Solutions Major on soft loans not grants (respond to need not demand) – low cost or unsecured to provide leverage for the banks; Softer equity fund to influence the culture of not wanting to give up equity; Support for early stage of business lifecycle to meet and develop potential; Innovation Centres – R&D funding (3i approach with jobs and equity gains); proof of concept funding; management skill training; Small scale equity – softer exits, IBGF rather than VC; Profit motivated social enterprises without security – A debt or revolving equity structure that didn’t require security (franchisable model to other UK areas); Flexible grant converting to a loan product if the business becomes successful; Speculative workspace builds for businesses to grow into; Fund businesses through crowd-funding (use as match funding); Mezzanine fund where lawyers’ legal fees are capped i.e. model documentation agreed up-front for all applicants (Santander example - £50m RGF, £200m bank); A family of products to allow an iterative process throughout business lifecycle;

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4. Gaps in Support for Certain Markets – Solutions Support added value in agriculture / fishing, linked to tourism and hospitality; ‘In Pursuit of Excellence’ style showcase to raise expectations and emphasise Cornwall & Isles of Scilly’s strengths; Nurture growth in the number of manufacturing business units; Manufacturing Innovation Centre; Data centres (They’re hungry for power and we have more sustainable power than the grid can take); Ultra Broadband – Fibre Park. Supply chain cooperatives (e.g. Liskeard shops model where butcher, fish monger and others work together) e.g. airport, taxi, hotel, food producer etc; Be clear about whether Cornwall & Scilly want even more seasonal businesses; Revolving soft loan fund to bolster smaller-end seasonal businesses; Support existing sectors – hospitality, food, drink, tourism (quality end) to uplift quality (e.g. finance to improve B&Bs); Across a number of sectors we have some of the best in the world but often the average is not great, therefore we must raise the average. 5. Signposting & Advice – Solutions Supplement internal training in banks/accountancy practices to help improve knowledge of external ‘products’ including options such as crowd funding; Easy access to self-help diagnostic tools, possible link to high quality advisors for first-stage appraisal and signposting; Better advertise the existence of existing on-line advice; Business Pulse website needs business support advisors to back it up; A ‘business centric’ website providing business focussed answers; Simplify the process e.g. one application form for grant, another for loans; Professional advice voucher scheme to fund ‘appropriate advisor’ (banker, accountant, solicitor, IP expert etc.); Business support-line manned by volunteers from banks. RR 13.8.13

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Summary of on-line consultation responses to the Draft SEP (23 respondents): Direction

• Key requirements are drowned out by the fluff. Needs to be more direct and hard hitting • Unclear about the number of key areas • Sense of direction is clear, but not convinced it is accurate or follows the direction recommended by LEP Growth Strategy evidence base. • Over-weighting of the importance of tourism and farming, both of which suffer from seasonality, risk creating year around imbalance. Manufacturing provides

year round employment • I know the SE wants a simple clunky "Growth is Good" model. We can do better than that, can't we? How much do you want Cornwall to grow? Perhaps we can

deal with some of our issues - training, skills, participation - in other ways, to do with prosperity, rather than growth? Investment Priorities

• More priority/the importance of the road and rail infrastructure and the rapidly deteriorating nature of the road infrastructure due to minimal maintenance is a major concern for those who rely on the road network needs to be emphasised

• Very little about importance of manufacturing in Cornwall County Council • The construction sector already supporting CC in the use of Client Based Approach – a model to increase employment and skills outcomes through construction

projects • Includes most but lacks direction • Despite previous recent consultations proposing a ‘sector blind’ approach, the document does refer to a detailed section on business support for bedrock

tourism, agriculture, digital and creative industries but no mention of leisure boating, boat building, engineering and marine related activities • Stronger references to environmental growth, as ‘it is nowhere to be found and no indication of activities’ • Construction is a sector that underpins all other sectors and should be seen as an enabler to growth and increased productivity. • Reference for an immediate commitment to developing locally led economic plans for specific areas • We need to increase mention of, and value in, the social enterprise sector as a key tool for delivering prosperity and social and environmental growth in

Cornwall.

Annex 3 Strategic Economic Plan

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Gaps

• Clearer emphasis on decentralisation/localism • Very little focus on manufacturing represents around 10% of Cornwall GVA. • There is not enough mention of the need to co-ordinate economic infrastructure development with neighbouring regions in Devon • No mention of B2B collaboration initiatives – companies pooling local resources and knowledge • Important not to overlook contribution repair and maintenance of construction ind. Can provide re: jobs/training ops. • Digital connectivity should be expanded to include homes as well as businesses. Unless we focus on innovative approaches to connecting all homes then we will

have issues about ‘equality of access’ when we try mainstream digital public services (such as e-health) • Specific reference to Truro/Falmouth/Penryn projects/developments • Stronger commitment to resilience and flood defence • No sight of environmental growth as a concept, or investment in natural capital. The term eco-system appears only once, and in reference not to eco-goods and

services, but as a description of business support mechanisms. It's notable that the document has no real engagement with this idea. – see CoaST’s detailed comments

• Alarmed to see no mention at all of planning for resilience in terms of energy price rises – is there a plan for this • Need more emphasis on flood resilience and climate change in terms of the impact on tourism/agriculture/leisure services/insurance/health and well being

Other comments

• Can ‘Cornwall Manufacturing Group’ and Cornwall Manufacturing Forum be added to list of partners • Newquay airport needs a strong commitment that it will always remain open • Can reference be made to more collaborative apprenticeship and graduate programmes being recognised in the document? • There is little mention of the specific requirements of the resident communities of North and West of the County with too high a focus on West Cornwall. • No reference to investment/loan fund that business can access • Consideration of currently international extensive, active and exciting thinking on circular economic model

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Business Consultative Group Notes of a meeting held on 12 March 2014 to discuss and receive feedback on the Draft Cornwall & Isles of Scilly Strategic Economic Plan (SEP). Introduction and Context: Following her welcoming remarks, the Head of Economic Development provided an introduction to the morning’s consultation meeting and set the context for the SEP which she indicated was an outcome of the Heseltine Review. The SEP was one of a number of linked and nested strategies serving closely related purposes functioning at local, national and European levels. Particular reference was made to recent work on the EU Structural and Investment Fund Strategy (SIF), the evidence base, and threads of logic and continuity drawn from the fabric of the LEP’s original Economic Growth Strategy on which the BCG had been consulted in 2012. Presentation: The rationale for the SEP was presented; those present were invited to provide comments and feedback. Discussion: During a very positive discussion the following observations and comments were received; these would be taken into account in shaping the final draft of the SEP:

1. The nature of the funds available and the strings attached to them by government required further clarification. Points at issue included: value for money criteria; potential clawback; the nature of the ‘offer’ i.e. was it gap funding, loan or grant;

2. In terms of Growth Deal, the level of complementarity with Plymouth City Deal needed clarifying (Creative sector, Marine sector, and low wages in south-east Cornwall, were cited as cases in point);

3. It was noted that some projects may wish to partner with LEPs beyond our near neighbours; 4. The SEP needed to mesh with the Local Plan; 5. Housing development now featured in discussions with employers more than ever before; tactics were needed in finding ways to add value to housing

developments; 6. The Executive Summary was too long and needed more memorable ‘hooks’; the ‘must do’ schemes needed clearly stating to make it easy for ministers to

advocate; 7. The document needed to be punchier emphasising issues such income levels and social problems, raising aspirations etc. “Pull quotes” were needed in the

Executive Summary; 8. The SEP’s Housing section lacked clearly identifiable schemes (it was noted that there were no ‘oven-ready’ projects available in year one - 2015/16 and that

there was a need to be realistic in order to build credibility in terms of delivery); 9. There was a request to include reference to ‘key worker housing’; 10. Local accountability for the management of funds and local decision making remained issues worthy of further lobbying; 11. The Draft SEP did not ‘sell Cornwall & Scilly’ in three minutes in terms of what it was going to deliver; 12. Previous strategies had favoured a ‘Top 10’ approach to priorities; 13. Projects helped to ‘tell the story’, there should be more of this in the SEP;

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14. There was a need to learn from those who had been through large funding programmes and knew what worked and what didn’t; 15. A tactical approach would be to conform to the government’s national agenda whilst ensuring that embedded within SEP were sufficient ‘hooks’ to enable

Cornwall & Scilly to address its particular ambitions; 16. The USP needed to be clear so that ministers could see that by not supporting the SEP certain things would consequently not happen; 17. The ‘vision’ needed to be clear right through the document; 18. As most of the LEPs would be saying very similar things, it was important that Cornwall & Scilly stood out from the crowd as a ‘neat LEP’ most likely to deliver; 19. The message to government should be that ‘you get a lot for a little’; 20. What was in it for government needed to be clearer in the SEP; we didn’t want to appear awkward; 21. There needed to be a sense of realism i.e. we’ve done this kind of thing before, we’re going to do it again; 22. It was noted that the final document would include case studies; 23. The language in the document needed to be assured and certain (fewer phrases like ‘we believe’); 24. The Care Sector was invisible; the contribution of the Care Sector to the local economy through supply chains, training and direct spend needed more emphasis

particularly given an aging population (dementia friendly communities would become increasingly important) ; 25. The aspirations of the local workforce needed to be addressed (as well as basic educational attainment) and the demand for training that employers need rather

than purely funding for the training that is provided; 26. The ‘rural’ feel of the LEP needed to be more evident in the SEP; this naturally linked to the transport theme (rural communities, young people, issues of

transport to work and training); 27. Reference to apprenticeships was needed in the document; 28. Recent storm damage also emphasised the need for investment in transport infrastructure; 29. Rather than referring to ‘Flood resilience’, ‘managing changing landscape and climate’ might be a better phrase; 30. In terms of agriculture, the document needed to be clearer about where we are now and where we want to be; 31. The Construction Industry Training Board was supportive of the SEP; 32. Business needed to speak clearly with a united voice, therefore a list of partners needed to be included in the document (all agreed); 33. It was felt surprising that tourism was not mentioned; 34. The document should stress need for high standards, improved visitor experience and using tourism as an important driver (i.e. as an important component

rather than the main reason); 35. The importance of ‘high quality’ in all we do needed to be stressed in the SEP along with the culture and uniqueness of Cornwall & Scilly (i.e. emphasise the LEP’s

Guiding Principle); 36. Being a nice place to live should not be used as an excuse for low wages; 37. Be positive about Newquay Airport, use it as an economic development tool; 38. Five million tourists represented an important element of the local economy, good transport links were essential, this should be stressed; 39. Rather than ‘New ways of living’ the phrase “Homes for work and living” might be better; 40. Rather than referring to ‘famous artists’, reference to the “Tate” might be more readily understood by ministers; 41. There was a need to break away from being sector specific; there was a need for synergy between businesses; 42. All R&D activity across Cornwall & Scilly needed to made more visible; 43. There was a plea for more regular use the members of the BCG as a conduit to national bodies and national debates;

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Next Steps: A revised draft would be circulated to members of the BCG with a very prompt turnaround request for last minute comments. The final version would then be sent to government. Separate comments were received from the Cornwall Marine Network, the Cornwall Manufacturer’s Forum, and the Voluntary Sector Forum, all of whom had given their apologies to the meeting; these comments would also be taken into account in the final drafting. End.

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