AGENDA ITEM NO. 15
REPORT TO: Executive Board
REPORT NO: CEDO/03/09
DATE: 10 March 2009
LEAD MEMBER: Councillor Rodney Skelland
(Regeneration and Corporate Governance)
LEAD OFFICER: Chief Economic Development Officer
CONTACT OFFICER: Peter Scott (Tel: 292405)
SUBJECT: International Business Programme
WARD: N/A
1. PURPOSE OF THE REPORT
To update Members on the Council’s International Business programme and to seek Members’ support to continue the programme for a further three years up to March 2012.
2. EXECUTIVE SUMMARY
2.1 The International Business programme seeks to encourage business links between the Council’s twin town partners, to encourage wider co-operation, and promote interest in direct export of local goods and services, especially amongst ‘first time’ exporter businesses. The International Business Programme was originally approved by Members in 2004, (CEDO/29/04). Members were last updated in September 2006 (CEDO/17/06); proposals were also outlined recently in a report to the Executive Board by the Chief Libraries, Leisure and Culture Officer in September 2008, (COLLC/15/08).
2.2 During the past five years the Economic Development Department has worked primarily with Märkischer Kreis as it has not been possible to include Racibórz in all areas of activity as it has limited resources. However, this could change in the future if resources and opportunities allow.
2.3 A full review of the activities of the International Business Programme since September 2006 is attached to this report as Appendix 1. Key elements of the programme in recent years have included: two trade missions; an exhibition programme that has assisted companies wishing to exhibit in Germany; and participation in a European funded programme called Interreg IIIC that encouraged the transfer of innovation and technology between European states and led to the creation and delivery of Giebel Rund Cymru that brings together the business and health care sectors, with the aim of identifying and exploiting commercial opportunities.
2.4 In the current economic climate it would be unwise to be overly prescriptive about the nature of future activities for the next three year programme. Therefore, the proposed programme is intended to be flexible and may need to be amended within the constraints of budget and in consultation with the Lead Member, to suit the conditions that emerge over the period. Details of the draft programme are set out in Appendix 2.
2.5 The proposed programme would continue to build upon the strengths of previous activity, by providing one-to-one advice and guidance, linked with support through the Wrexham Export Forum. This will be supplemented by high profile events such as Wrexham Business Week, that in turn promote and encourage export opportunities. It is intended to continue making temporary office accommodation available for businesses from Märkischer Kreis who wish to establish a presence in the UK. This element is proposed on the basis that Märkischer Kreis will also continue to offer a reciprocal arrangement. A key element of the programme is to continue to collaborate on European funding programmes. In particular, the department will proceed with a bid for funding under the Interreg IV C programme that could attract funding to collaborate with both of our twin town partners and other locations within the EU in a project that focuses on attracting inward investment.
2.6 In addition, a proposal has been made by Märkischer Kreis to send a group of young employees to Wrexham County Borough for a short period of Work Experience. The visit by them would be at no cost to the Council. In return, it is proposed that a small group of six Modern Apprentices who are currently engaged in training at Wrexham ITeC should visit Märkischer Kreis as an extension of their learning programme. This is consistent with the agreed twinning objectives – “encouraging contact and understanding especially between young people”.
3. RECOMMENDATIONS
Members are recommended to:
(i) approve continued participation in the International Business Programme for a further three years until 31 March 2012 as set out in Appendix 1 of this report ; and
(ii) to authorise the Chief Economic Development Officer to agree any minor modifications to the programme in consultation with the Lead Member.
REASON FOR RECOMMENDATIONS
To continue the International Business Programme for a further three years in order to provide opportunities for Wrexham businesses and to promote Wrexham goods and services.
Stephen Bayley
Chief Economic Development Officer
4. BACKGROUND INFORMATION
(a) Proposed Activities 2009-2012
4.1 With key industries becoming increasingly globalised, with supply shifting to emerging economies that can provide products/services at lower cost, now more than ever the economic link between Wrexham and Märkischer Kreis must develop and prosper. Both regions must focus on high value, innovative sectors which focus on a knowledge based economy.
4.2 The work started by Märkischer Kreis and the Council should continue to support businesses in both regions with developing international trade in this ever increasing globalised world. The range of support is designed to benefit businesses in both regions by aiding access to international markets, fostering new business opportunities and partnerships and accessing European funding.
4.3 The continuation of the International Business Programme will allow businesses time to develop real business relationships which will hopefully lead to measurable economic benefits in terms of new contracts won and jobs safeguarded and created in both Wrexham, Märkischer Kreis and in Raciborz.
4.4 The proposed programme from April 2009 to 31 March 2012 will be funded from within the department’s cash limited budget and from external funds such as EU grants. Up to two exchange visits a year are likely to be required to support the programme, particularly if the Interreg IVC project is approved by the European Commission. This project has been identified as being potentially useful as it would bring together up to ten locations across Europe and encourage co-operation on inward investment and skills development issues. A summary of the proposed programme is attached at Appendix 1.
4.5 In recent months the Council, has worked in co-operation with International Business Wales (the Welsh Assembly Government export promotion service) to augment the Council’s International Business Programme, with the result that significant one-to-one support on export related issues can now be funded and delivered by the Welsh Assembly Government.
4.6 This is further supplemented by the Council’s Wrexham Export Forum. This seeks to attract export professionals or any business involved or seeking to become involved in export activity. The aim of the forum is to encourage businesses to share and develop best practice and potentially collaborate on projects of mutual benefit.
4.7 It is proposed to continue to co-operate on the delivery of business related events (such as Wrexham Business Week) and to organise seminars in each country to promote the benefits of the twin-town relationship and to provide support to businesses.
4.8 It is intended to continue to offer office accommodation and postal addresses for businesses in Märkischer Kreis who wish to establish a presence in the UK. This will allow a company from our twin town areas to use office accommodation for up to 20 days per year (subject to individual agreement). This will be offered on the basis that a reciprocal arrangement is offered to Wrexham companies in Märkischer Kreis.
4.9 It is also intended to continue to offer the facility of business information and market research information to businesses in both Wrexham and Märkischer Kreis free of charge. The information service provided by Businessline at Wrexham Library.
4.10 A new component that could be offered to companies from Märkischer Kreis and Wrexham is to allow them to register details and profiles with the Council’s Economic Development Department that will enable a search to be undertaken for tender opportunities within the public sector throughout Wales. Potentially guidance on the mechanics of tender preparation could also be provided. It is hoped that a similar arrangement could be devised for Wrexham companies seeking opportunities in Germany.
4.11 A new exciting opportunity that has arisen recently is a proposal by Märkischer Kreis to send a group of its young employees to Wrexham County Borough for a short period of work experience. It is likely that our German visitors will have a good facility in the English Language and will be self reliant. The programme has yet to be agreed in detail, but the German visit will be at no cost to this Council. It is proposed that a small group of up to six Council Modern Apprentices who are currently engaged in training at Wrexham ITeC should visit Märkischer Kreis for a week as an extension of their learning programme. They will be escorted by two nominated officers. All students will be over 18 years old at the time of travel. The aim will be for each Modern Apprentice to undertake a project on behalf of their employing department in order to identify good practice and to explain and share what they have learnt with their colleagues when they return. The visit would be funded from within the department’s cash limited budget. Exchange visits of this kind are consistent with the agreed twinning objectives – “encouraging contact and understanding especially between young people”.
5. CONSULTATION
5.1 Full consultation with twin town partners.
6. SCRUTINY COMMITTEE COMMENTS
6.1 This issue has not been considered by a Scrutiny Committee.
7 IMPLICATIONS
7.1 Policy Framework
This is integral to the Council’s approved Economic Development Department Service Strategy 2008-20011. It also accords with the Council’s Core Corporate Business Area to secure prosperous businesses, a skilled workforce and regenerated communities.
7.2 Budget
The estimated cost of the International Business Programme over the three years 2009/2012 is £12,300. The EU Interreg IVC project will require a contribution of about £50,000 in match funding in kind (staff time) which will generate up to £150,000 in EU grant funding towards the project. These costs can be funded from within the Economic Development Department’s cash limited budget.
7.3 Legal - there are no legal issues.
7.4 Staffing - there are no staffing issues.
7.5 Diversity (Equalities) - the International Business Programme provides support to all businesses.
BACKGROUND PAPERS / LOCATION / WEBSITE INFO.NONE / NONE
Appendix 1: Background Information - Past Activities
In summary, the International Business Programme since 2006 has consisted of six elements:
(i) Exhibition Programme
Provided exhibition space and a full support package to our client companies to assist them to exhibit in the UK or Germany. The exhibitions attended have either been in Germany (Liepzig Messe) or the UK (Manufacturing Week at the National Exhibition Centre Birmingham). The cost of exhibitions (especially in the UK at major venues such as the NEC) makes this option less attractive and cost effective and it does not feature in our proposals for 2009-2012.
(ii) Trade Missions
Trade missions have been used to provide face-to-face contact for interested parties from Märkischer Kreis and Wrexham. They have usually been of two or three days in duration. Six Wrexham firms were involved in our outbound mission in 2006. Other attempts to attract local firms have failed.
(iii) Business Information
A wide range of business information has been made available free-of-charge to companies located in the twinning areas. This extensive range of materials includes reports, monographs and periodicals, and is of genuine assistance to companies from our twin-town areas considering product launch in the UK or Germany.
(iv) Office Facilities
To allow twin town businesses to have a presence in Wrexham or Märkischer Kreis and to furnish them with a local address, which provides a postage and mail forwarding service for companies registered on our scheme, telephone message taking and the use of a room on a limited basis for individual and approved companies for up to 20 days in a calendar year. To date, no companies have taken advantage of this element but it is proposed to continue to offer the facility during the life of the programme, as it is easy to administer and low cost. More aggressive promotions in the future may encourage greater uptake.
(v) Business Events
During the recent Wrexham Business Week events, several presentations were organised which focused on export and the German market in particular representatives from GWS were in attendance and provided invaluable advice and support to business in Wrexham who were considering Germany as a potential market.
(vi) European Programme
Interreg IIIC INNOFIRE Programme - Wrexham joined Märkischer Kreis and Racibórz in a transnational partnership under the Interreg IIIC INNOFIRE Programme which sought to develop the transfer of technology and innovation in the field of medical device technology. This programme was concluded in July 2007. The programme was operated on a ‘match funded basis’ which allowed us to contribute officer time against a finance contribution from the Innofire Programme.
Project Objectives
The objectives of the Innofire project were to:
· continually improve and support existing local and regional clusters and networking initiatives;
· the development of a sustainable cluster;
· optimise cluster policy structure and networking activities in all participating regions;
· encourage exchange of experiences amongst the partners;
· provide a link for European regions which fosters innovation and connects them projects and research projects in the area of medical device technology.
Outputs
The main outputs and results achieved were as follows:
· international transfer conferences took place in selected partner regions, to ensure they exchange experience in cluster development and network support activities;
· local seminars and workshops between key players in the sector to achieve sustainable cluster support activities;
· the production of a Medi-Map web tool; and
· the development of a website, production brochures, leaflets and regular newsletters.
Giebel Rund Cymru
In line with the implementation of a cluster policy, Wrexham hosted ‘Technology and Innovation Transfer Conference’ as part of Wrexham Business Week in November 2006. One of the aims of this conference was to promote the development of a medical devices cluster centred in Wrexham that involved physicians, research and development organisations, colleges and the local firms.