< Previous10Business Link www.blmforum.netSomething to say? Write to: Business Link Magazine, Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE or email: letters@blmgroup.co.ukReaders’LETTERSReaders’LETTERSA mad world?Dear Sir,In a sane world anyone creating an enterprise zone from scratch on ablank sheet of paper would put a regional airport in the middle of it, giventhe option to do so. In the east of Sheffield we have a situation where anew enterprise zone is taking shape with just that. Yet the authorities hereare going to great lengths to ensure its destruction, even to the extent ofmaking statements which are manifestly untrue.The Local Enterprise Partnership tells us that Robin Hood Airportrepresents the future of aviation in South Yorkshire. And yet its flightschedule has dwindled to a handful of holiday flights each week and itsowners have reportedly recorded losses of £11.4 million in the last year.This does not appear to be a suitable basket in which to place all one’seggs and I have to express serious concerns about the LEP taking up thisposition.The comments made by the officers of the Local Enterprise Partnershipdo not fill one with confidence that they entirely understand the gravenature of their present policies. A wrong move now may well present uswith a dreadful mistake which cannot be rectified later. All I suggest is thatbefore allowing the bulldozers to destroy what remains of Sheffield CityAirport, the region takes a step back and listens to some expert opinionon how we nail down a secure transport policy which will give us the bestoptions for economic recovery.G MillwardSheffieldCut it outDear Sir,Most businesses, I know, welcome the government’s efforts toderegulate. Unnecessary red tape costs firms time and money andcan act as a barrier to growth. The new regime of ‘One-in, Two-out’ should go some way to reducing needless bureaucracy facedby companies.However, this rule will only apply to the regulations that arecurrently deemed ‘in scope’ of the system. This means that asignificant amount of regulations affecting firms, including EUregulations, are exempt from this process. The system should bereviewed to ensure that relevant regulations are in scope, as thiswill help to reduce burdensome red tape that prevents businessesfrom growing, innovating and creating employment. Businessesare doing everything they can to grow in an uncertain economicclimate and bold action is needed to deliver growth - part of thatmust be reducing the regulatory burden on companies. Regulatory reduction isn’t just about Whitehall processes.Businesses on the ground must feel the load is lighteningsubstantially too.A MarshallLincolnChild’s playDear Sir,Whilst the principle behind theFlexible Parental Leave proposal is asound one, the reality for manyparents is that they cannot afford totake full use of their maternity leave,principally for financial reasons.Statutory payments are limited to90% of full pay for the first 6 weeks,followed by 33 weeks at a set rate of£135.45. It will therefore beinteresting to see whether manyparents chose to exercise this newright.A NaruLeedsBack on trackDear Sir,It is encouraging to see the UK bucking global trends around manufacturinginvestment and expectations around salary growth. While overall business optimismremains low, we did not see the dramatic decline in confidence we saw elsewhere in theworld in Q3 and these two factors give some signs of hope that the UK economy isimproving. With interest rates low, an abundance of talent on the market, and rivals inother countries showing few signs of an appetite for investment, UK business leadersprepared to invest now could stand to gain significant competitive advantage once theglobal economy gets back on course.M RedfernSheffield10:Layout 1 26/11/12 09:53 Page 1Business Link 11www.blmforum.netCOMMERCIAL PROPERTYWith the Prime Minister wanting to see the end of“time-wasting” judicial reviews, along with theintroduction of Enterprise Zones across huge swathesof the region and relaxed planning laws, it wouldappear that those involved in the commercial propertysector are likely to benefit from major changes in theway they work. But how likely is this to bring cheer to asector that has certainly endured its fair share ofsuffering during the downturn?The Prime Minister’s speech suggested that judicialreview applications would, in the future, cost more,with less time put aside to apply and fewer chances toappeal, with a maximum of two appeals instead of thefour at present. The Prime Minister’s words were “weneed to forget about crossing every ‘t’ and dottingevery ‘i’” – and the thinking seems to be that a moreflexible and efficient process will ensure planning andinfrastructure projects to come into fruition faster, withexcessive bureaucracy taking a back seat.This approach would at first glance appear to be awelcome one, as many consider planning rules arestifling innovation in sustainable building. Yet thequestion is whether this approach will make anymaterial difference to businesses in any case – as thelong-running debate over how and where extra airportcapacity will be found hardly seems to suggest anenvironment where big decisions are made quickly. Inaddition, when energy efficiency and environmentalfactors are taking on increased importance, a planningsystem with potential for scrutiny and discussion abouta project’s impact would seem to fit in with the currentgreen agenda. It will be fascinating to see what impact,if any, the Prime Minister’s words have on thoseplanning large scale projects over the next few years.Of course, regardless of the relaxing of the planninglaws, commercial property companies will still have todeal with the simple task of finding businesses willingto actually purchase and rent their buildings – which ata time when the recession, though officially over, iscontinuing to bite is not always that easy. The keyremains effective buildings offered to companies withattractive terms.Happily our region does look as if it is enjoyingsuccess in the sector. The industrial and distributionmarket in South Yorkshire, for example, has performedbetter in the last three months than the previous twoyears. The industrial big shed market has seen take-upof more than two million sq ft thanks to a number oflarge deals, principally in Barnsley and Doncaster, and13 Will the Prime Minister’s crusade againstconstricting red tape bring any benefit to thecommercial property sector?Will cities such as Bradfordbenefit from a more flexibleapproach to planning? SOLIDfoundations?PICTURE COURTESY DTZ / GILESROCHOLL PHOTOGRAPHY LTD11-13:Layout 1 26/11/12 08:43 Page 1GROUND FLOOR OFFICESTO LET - PRIME LOCATIONIN GRIMSBYTELEPHONE 01472 310302A range of affordable office sizes available on easy in/easy outtermsEasy access to motorway, ports and towncentreSecure off street parking for staff andvisitors Virtual office services from only £15 permonth WE AREHERE11-13:Layout 1 26/11/12 08:43 Page 2Business Link 13www.blmforum.netCOMMERCIAL PROPERTYthe region is consistently demonstrating higher stockavailability than elsewhere in the UK.Rebecca Schofield, partner at the Sheffield office ofKnight Frank, says, “The wider Yorkshire and Humberarea still has the largest amount of new build productavailable, with 33% per cent of the UK’s stock levels,compared with other regional offices. Over recentyears, and particularly following the economicdownturn, we have saw a flight to prime which resultedin take-up in traditional logistic locations around thegolden triangle and M62.“Rents in South Yorkshire are more competitive thanother locations and the region also boasts strongtransport links and good labour, so we are hopefultenants are taking note – and beginning to takeadvantage of these benefits.”In this sector, the biggest letting in our region thisyear has been Nimbus Park, the facility in Thorne,which has been let to retailer The Range. The newoccupants have taken 750,431 sq ft on a twenty-yearfull repairing and insuring lease and will use the facilityas one of its national distribution centres. Meanwhile,window manufacturer Elbee has relocated to a lettingof 205,000 sq ft at Nexus 36 – a high specification isjust off Junction 36 of the M1. Pharmaceutical companyGalpharm has taken a 150,000 sq ft letting at Elmhirst inBarnsley following expansion, while Next took a260,000 sq ft distribution centre at RedhouseInterchange in Doncaster. These blue-chip businesses illustrate that, in theworld of logistics, our region is perfectly placed tobenefit from companies looking for more efficientsupply chains. In addition to lettings, meanwhile, Aldihas also announced the development of an 856,000 sqft site at Goldthorpe Industrial Estate in the DearneValley. Construction is expected to start on site earlynext year and when it’s complete it will be used as aregional distribution centre that will supply stores fromScarborough to Boston.In other sectors, the news looks to be broadlypositive too. The third quarter of 2012 has seen thenumber of office deals in Leeds double, with 22 dealsamounting to 123,000 sq ft of space in the threemonths to September. On closer inspection this hugeincrease in space was mostly thanks to the lettings atIVG’s Number 1 Leeds, where two companies havetaken up 65,000 sq ft between them – and indeed morethan three quarters of the other transactions are foroffices smaller than 5000 sq ft.This isn’t perhaps surprising given the general trendtowards smaller office space, but at least there aretransactions taking place, and Knight Frank evensupport that a supply shortage has prompted the startof some speculative development in Leeds. There arelive requirements for in excess of 350,000 sq ft, and tothis end the refurbishment of 21 Queen Street hasbegun with two new floors are being added, creating anew high-quality refurbished office space of 37,471 sqft, which is scheduled for completion in late spring.Time will tell whether the Prime Minister’s drive for amore reactive and efficient planning system will benefitYorkshire and Lincolnshire’s property sector – but theyare certainly punching above their weight thanks to aconcentration on quality and convenience.Sheffield digital print company Pinders hascompleted a £4 million city centreredevelopment project to accommodate its hi-specification machinery, doubling its commercialspace by converting an under-utilised areabehind Pinders’ existing base on Moore Street“The widerYorkshire andHumber area stillhas the largestamount of new buildproduct available,with 33% per cent ofthe UK’s stocklevels, comparedwith other regionaloffices”Rebecca Schofield, partner at the Sheffieldoffice of Knight Frank11-13:Layout 1 26/11/12 08:43 Page 3Building apositivefutureCONSTRUCTION14Business Link www.blmforum.netThe construction industry is certainly lookingbright on some levels. Indeed newdevelopments seem to be cropping upeverywhere across our region. Newly built touristofferings have arrived in Lincoln in the shape of anew wagamama restaurant, the recent addition ofthe Doubletree by Hilton hotel on the Brayford and anew hotel being built on Broadgate. Equally in Yorkshire, new business parks arebeing established in key industrial locations such asHessle, Doncaster and across the county, showing aflurry of action where previously there wasunnerving inactivity. Sheffield’s transformation of itstired city centre retail sector is starting to see moreaction too, with activity having stalled on The Moorshopping area for several years, leaving unsightlygaps between developments in the same wayBradford has been affected in recent years.Red tape though, is said to be holding backconstruction projects at the moment. The Instituteof Chartered Accountants in England and Wales hasstated while growth in turnover and gross profits atYorkshire companies in particular fell in 2012 tobelow the national average, they are expecting amarked bounce-back in the next twelve months -certainly compared to the rest of the UK.Chris Manners, ICEAW regional director, says:“This may be a reflection of the region’s aboveaverage numbers of construction businesses – thesector which is most strongly focused on thisobjective. Half of the region’s businesses believe theUK’s tax and regulatory system is business friendly,in line with the UK average. However, Yorkshire andHumber businesses have shifted their opinion since2011 to a much greater extent than the UK average.In 2011, barely a third agreed that the UK tax andThe construction industry went through apainful period at the start of the recession,but renewed interest and investment isbreathing new optimism into the sector.14-16:Layout 1 26/11/12 08:53 Page 1CONSTRUCTIONBusiness Link 15www.blmforum.netregulatory system was business friendly.“While employment legislation andemployment tax are hindrances to aboutsix in ten businesses UK-wide, withYorkshire and Humber being noexception, planning regulation isconsidered a drawback by higher thanaverage proportions here – 61%compared with a UK average of 48% – afurther reflection of the region’s above-average construction industry base.”A future for heritage skillsIt’s often said that, along with theengineering sector, the constructionindustry urgently needs to engage withyoung people who could potentially takeup positions in the future. As well asincreased pushes for apprenticeshipschemes and internships, companies arebeing encouraged to engage on apractical level too. Heritage building skillsand methods are proving to be indemand these days, with more towns andcities concerned with preserving theirgreatest tourist assets. With this in mind,heritage roofers from across the regionrecently showcased their lead workingexpertise as part of an event highlightingtraditional construction skills. The 1000 Years of Traditional Craftsexhibition held at Lincoln Castle in Lincolnmeant that Dale Wright and Paul Wassellof Martin-Brooks were able to showvisitors at the two-day event how lead isshaped and fitted to a roof and gave theman opportunity to try their hands at theprocess, which has remained the samefor centuries. Martin-Brooks was asked to take part inthe exhibition following its work on theroof of the recently completed HeritageSkills Centre at Lincoln Castle for maincontractor Robert Woodhead, which isthe first building to be erected in thecastle grounds for 150 years and will beused to train young people in traditionalcrafts and provide public viewing spaces. Dale Wright says, “We were veryhonoured to take part in such a highprofile celebration of traditional skills.Sharing our expertise with members ofthe public was great fun and visitorsyoung and old proved to be interestedand engaged in the lead working process.As heritage roofing specialists, we arecommitted to preserving the integrity ofBritain’s architectural legacy and ensuringnew generations have the ability tomaintain these historic buildings.” A lack of support for green practices?Respondents to a recent survey of thegreen building sector have called for a16 Protecting older buildings is proving to bebig business too. Contracts formaintenance on buildings with history suchas Lincoln Cathedral are fiercely fought for.Teaching heritage skills is becomingmore of an issue and the need to giveskills to new apprentices is now beingaddressed.14-16:Layout 1 26/11/12 08:53 Page 2do with funding were also addressed,with risk averseness by banks unwillingto invest in green businesses and ashortage of skilled labour capable ofusing sustainable building materials.While output in Britain’s mainstreamconstruction sector continues to fall,green builders are bucking the trend ashomeowners take action to reduce thecosts of heating homes, creatingopportunities for entrepreneurs andfaster growth.Green construction is howeverrapidly gaining acceptance in themainstream. The survey found today’sgreen entrepreneurs, inspired byGerman green building pioneers, areattempting to combine environmentaland business objectives and to educateCONSTRUCTION16Business Link www.blmforum.netclear strategic view from governmentto enable the transition to greenerbuilding practices. Inconsistent centraland local government policies, lowinvestment and lack of support wereidentified as issues currently holdingback business development.Researchers from the University ofHull’s Department of Geography,Environment and Earth Sciences foundgreen construction businesses arefacing major obstacles, including atendency for government policy tofavour large businesses in theconstruction sector over small tomedium-sized enterprises and widevariation in the application of planningrules across different local authorityareas that stifle innovation. Issues tocustomers, suppliers and the widerbuilding sector about green practices.Researchers Professor David Gibbsand Dr Kirstie O’Neill, said they hopedtheir work would encouragepolicymakers to consider problemsfaced by green entrepreneurs in thesustainable construction sector. Dr O’Neill says, “Much is made bythe current government of its greencredentials, but our research suggeststhere is something of a gap betweenthe rhetoric and the situation on theground.” Professor Gibbs adds, “Our researchindicates that the UK could miss out ona big opportunity if comprehensivemeasures are not put in place tosupport this innovative sector.”New commercial builds have started tomake a return in Lincoln, and wagamama’snew ‘floating’ restaurant on the Brayford isa great example.Professor David Gibbs,Nick Voase, Dr KirstieO’Neill and Margot Voase atInn Carr Farm, nearBrandesburton, EastYorkshire in front of theVoase’s farmhouse builtfrom of hemp. Their surveyhas suggested a lack ofsupport for sustainability inthe construction sector.14-16:Layout 1 26/11/12 08:53 Page 3Business Link 17www.blmforum.netMERCURY EXPOMercury Expo, a free two-day programme ofnetworking and seminar sessions frombusiness experts and academics, took placethis November at Gainsborough’s businesscentre, Mercury House. The event coincidedwith Global Entrepreneurship Week. The event was run in partnership byLincolnshire County Council, LincolnshireMedia, and was coordinated by SpeechmarkEvent Management and Meep Meep Creative.The programme of expert speakers wassupported by over thirty regional and nationalexhibitors including Lindum, Soper of Lincoln,Sills & Betteridge and the Federation of SmallBusinesses. Free networking sessions alsoaimed to address the issues faced today byboth established businesses and entrepreneursof every generation.Jill McCarthy, Business Investment Managerat Lincolnshire County Council, says, “Theevent had an impressive line-up of speakers,including international sales and motivationguru Nicky Pattinson and Terry King OBE, whowas speaking about The Prince’s Initiative forMature Enterprise. “Businesses were able to get an update onall the opportunities and innovations that aregoing on in Lincolnshire at the moment. And itwas also a chance for them to promote theircompanies, products and services whilenetworking with regional and nationalorganisations and businesses.”Sadie Weller, manager of Mercury House,adds: “We were delighted to host the firstMercury Expo, which provided an idealopportunity to showcase this fantastic businesscentre to firms in the Gainsborough area andbeyond. The county council-run centre offershigh-quality offices and facilities, making it theideal home for new and growing businesses.”To find out more about the Expo or toinvestigate Mercury House, log on towww.mercuryexpo.co.ukNew event bringsbusiness boost toGainsboroughA new event waslaunched recently togive firms inGainsborough and thesurrounding area achance to promotetheir products at thesame time as pickingup tips from businessexperts. 17:Layout 1 26/11/12 08:55 Page 1HOT TOPIC18Business Link www.blmforum.netJohn Cridland, CBI Director-General“It’s really encouraging news thatgrowth has snapped back so strongly inthe third quarter. Although the Olympicsand Jubilee have made up the majority ofthat growth, these numbers do also seemto point to some acceleration in underlyingmomentum.“We expect conditions to remainpositive going into the fourth quarter,reflecting some easing of the pressure onhousehold budgets from lower inflation.But the global economic environmentremains challenging.”James Pinchbeck, Marketing Partnerof Streets Chartered Accountants“Any signs of economic improvementare good news. Whilst Lincolnshire andthe East Midlands has and continues to besomewhat insulated from the real brunt ofthe economic downturn, we do seem tobe the affected by what we now might callthe flatline economy. In particularexperience shows that overall businessesare seeing little if any growth and thatthere is a fundamental lack of confidenceto make the important investmentdecisions. “This said, there are some exceptionslocally, with especially those able to takeadvantage of export markets, or thoseinvolved in emerging markets for examplethe renewables sector. Overall, though,there does seem to be a real need to re-ignite the entrepreneurial spirit if we are tosee further improvements in the country’seconomic performance.”John Longworth, Director General ofthe British Chambers of Commerce“The news that the economy returned topositive growth in the third quarter of thisyear will be welcome news to manybusinesses. Firms up and down thecountry have been looking for ways togrow, to export to new markets, and takeon more staff in the face of headlinesdeclaring a double-dip recession.“This news will give many businessesthe confidence to invest. But thegovernment still has work to do to ensurethan an economic recovery is sustainable.There are still challenges ahead, with weakglobal growth and the ongoing eurozonecrisis creating difficulties for many firms. “Ministers must listen to calls frombusinesses to help them get the financethey need, and support to find newinternational markets for their productsand services. With the right measures overthe medium to long term, for exampleinvestment in infrastructure, the creation ofa British Business Bank, and meaningfulderegulation, the government can put theUK economy firmly back on the road torecovery.”Ruth Carver, Greater LincolnshireLocal Enterprise Partnership“The LEP’s main role is to help improvethe conditions for doing business acrossthe Greater Lincolnshire area, so news thatwe might be on the way out a double-diprecession can only be beneficial. “This means we now have theopportunity to boost our local economy.We’re hopeful that businesses will beJames Pinchbeck, Marketing Partnerof Streets Chartered AccountantsJohn Longworth, Director General ofthe British Chambers of CommerceThe recent encouraging GDP figures suggest the UK has movedout of recession and back into growth. But can it stay there? Weasked a panel of local and national movers and shakers if theyfeel the economy is finally on the mend.John Cridland, CBI Director-GeneralRoad toRECOVERY?18-19:Layout 1 26/11/12 08:56 Page 1Business Link 19www.blmforum.netHOT TOPICbolstered by the news and start to investin their future in a more robust way.Lincolnshire, North Lincolnshire and NorthEast Lincolnshire are home to a widerange of industries, covering renewables,manufacturing, ports and logistics, tourismand agri-food to name just a few.“In all those sectors there are greatopportunities to develop, especially as thecounty becomes a more accessible placeto do business with improved transportlinks and an upgraded broadband service.This growth will be helped by £9 million offunding secured by the GreaterLincolnshire LEP and its partners toimprove vital infrastructure projects, suchas transport improvements or flooddefences. It’s been noted many times thatthe lack of good transport and a poorbroadband service has often put potentialbusiness off operating here, so theseprojects will hopefully alleviate some ofthose concerns.“Other projects such as the Port ofGrimsby Enterprise Zone, which is beingdeveloped by the Humber LEP with the fullsupport of the Greater Lincolnshire LEP,will help this part of the country become aninternational centre for renewable energy. “While the news of economic growth isgood news I think we need to be cautiousabout moving too fast, too quickly – withthe shoots of growth now starting to pushthrough, it’s important that we ensure anyprogress is sustainable for the long term.”Graeme Leach, Chief Economist at theInstitute of Directors“The bounce back in GDP growth isgood news but not enough to pop thechampagne corks. More than half of thequarterly increase is attributable to theOlympics and the reversal of the Jubileeeffect in the second quarter.“The key message is that we’re out ofrecession but uncertain where we’regoing. Not for the first time we need toheed the warning that you can’t see theroad ahead through the rear view mirror.“Our view is that growth will continue inthe fourth quarter but we have torecognise there could be a fallback.”Sarah Steel, Managing Director of TheOld Station Nursery, Lincoln“News that we are starting to seeeconomic recovery is certainly welcomeand something which I hope will offer areprieve for families struggling to cope.“I’m optimistic that the UK will continuein this trend, but I do think that theposition of working families is really toughat the moment. They are having to dealwith cuts to child benefit and tax credits,which don’t always reward those whowork, at a time when job security is aconcern.“While I think that this may be a turningpoint, I am keen to see how the childbenefit changes being introduced, whichwill see income dramatically reduced forsome families, will affect the childcaresector.“I think the Government still has work todo to ensure than an economic recovery issustainable across the board – and thismay mean revisiting some of its policieswhen it comes to the finances of families.“News that the economy has grown is astep in the right direction but it will beinteresting to see whether or not thingscontinue to get better over the comingmonths.”Adrian Reynolds, Managing Partner,Duncan & Toplis“The Lincolnshire economy remains amixed bag. Whilst a number of clientsremain reasonably optimistic that businesswill improve and conditions are gettingeasier, others are still tightly controllingcosts and profits remain under pressure.“The impact of a poor harvest and loweryields will hit the agriculture sector, as toothe establishment of the 2013 crop due tothe weather. This with the expected impacton food prices is likely to hit consumerspending going forward. In addition thecontinued volatility in the oil and fuelprices has had a negative impact on ourrural county.“We are, however, seeing someoptimism amongst our exporters wherenew markets are being opened. It was alsopleasing to see the latest unemploymentfigures for Lincolnshire in Septembershowing a very slight fall but theunemployment rate still remains at 3.2%.“Thus, consumers are likely to continueto be wary of these effects on theirspendable income, alongside thecontinuing impact of increasing utility bills- especially with the recent gas andelectricity uplifts announced. Low returnson investments for the older age groupsaligned to the increased costs above alsomean they are feeling the pinch and theretail market remains tough.“Any recovery will, we believe, begradual and it is too early to say we arefully out of the woods as we continue onthe bumpy road to recovery.”Ruth Carver, Greater LincolnshireLocal Enterprise PartnershipGraeme Leach, Chief Economist atthe Institute of DirectorsSarah Steel, Managing Director ofThe Old Station NurseryAdrian Reynolds, Managing Partner,Duncan & Toplis18-19:Layout 1 26/11/12 08:56 Page 2Next >