News - Midlands
Speeding away
The Government has ambitious plans for the South Midlands region, intent on building thousands of new homes and attracting new business as it seeks to cool an overheating South East. Insider invited leading players in the regeneration of the Northamptonshire area to an Economic Forum at Rockingham Speedway to debate the issues. Neil Tague took notes.
Panel
Bob Lane OBE, chief executive, Catalyst Corby. Head of the urban regeneration company established three years ago to kick-start the development of the Corby area.
Tony Hewitt, Burbage Realty. Joined the niche industrial agent practice last year and since responsible for letting some of the largest distribution facilities in the region.
Joe Dickinson, chief executive, Rockingham Motor Speedway. Spent a lifetime in the motor industry, beginning his career in sales and marketing at Ford. Also an associate director of Ricardo Strategic Consulting.
Chris Daniel, Quadrant Estates. Daniel was a founding director of the property developer, which is currently involved with more than £3120m of commercial property schemes across the UK.
Phil Hope MP, Member of Parliament for Corby since 1997, Hope is also the under-secretary of state at the Office of the Deputy Prime Minister.
Are the targets for the South Midlands Study set out by the government achievable? Where is growth going to come from over the next five to ten years in this region?
Hope The whole Milton Keynes/South Midlands area covered in the report has enormous potential. This is one of only four areas identified in London and the South East for housing growth, but growth is not going to happen without infrastructure being put in place, and by that I mean political and decision-making infrastructure as much as physical infrastructure. We're making progress with local development vehicles being set up while the government has confirmed its commitment.
Dickinson The plans are great but we need things to happen. Here at Rockingham, we're the only physical manifestation of progress so far. Our partners BMW love the area, and they bring people in from all over Europe - it's a case of genuine inward investment. They constantly cite the central location but we need to improve access. We need dual carriageways, and a big, quality hotel. We want to see action soon.
Hewitt Developers building in this area have been pleasantly surprised. We're working on a speculative retail scheme that has received some good early lettings from national retailers. The big debate here is the opening of a passenger rail link to Corby. That is the thing that will open the floodgates.
Lane There's a good comparison to be made with the North West. There the government had to intervene, whereas here there is an underlying economic strength. Growth is already happening. We're working hard to get the government to invest in the East Midlands. Corby has been left behind in the past but it's catching up. We will get the railway station and the roads but it will take time and money - both government money and private sector money.
Can anyone on the panel shed light on the railway station issue. When, if at all, could Corby get its link?
Lane The SRA (Strategic Rail Authority) has agreed to a new study. Their previous study said Corby didn't warrant a train station on its current size but the new study would be based on the projected size by 2013. Now the SRA's been disbanded the matter is in the hands of the Department for Transport (DfT) and Network Rail.
Hope If Corby grows, the infrastructure will arrive. £312m was committed by the DfT last week. Growth plans are three years ahead of schedule, so the technical case is there and the business case is there. The renewal of the Midland Mainline franchise in 2006/2007 is going to be key.
Much of the economic growth in this area is being driven by the distribution and warehousing sector. Can regeneration rely solely on this area though?
Hewitt Corby's advantage is the availability of land. We've seen a great amount of sheds built even though the infrastructure's not ideal. For major growth in office-based sectors you'd need a massive improvement in infrastructure. The roads are the key, especially a dual carriageway to Northampton. While the quality of life is an advantage out here, roads have to be built and I think that's more important at this stage than the railway.
Roger Kimble (audience) Although there's lots of talk about road and rail, is there not scope to develop Deenethorpe Airfield?
Lane The concern is with planning restrictions. We're concentrating on residential growth and to attract a new population we need to be aware of environmental matters and not lose the quality of life advantage we have. Noise pollution would restrict housing growth.
Hope The fact is some people want growth and others don't, mostly because they're wary of the style and impact of that change. These are long-term projects - if you look at Rockingham Motor Speedway, the planning permission goes back to the mid-1980s when the steelworks closed - and this is a development that's really put Corby on the map. There are processes, and they're necessary so we don't end up with poor housing and badly designed projects.
Dickinson Any form of infrastructure would be terrific. Saying an airport would be too noisy is pandering to our culture where one person can close a business, and it's ridiculous. The balance between individual's rights and the needs of business is wrong.
Could the transport infrastructure cope with the proposed increased population in this region?
Lane Corby's regeneration is part of but separate from the growth process. The Milton Keynes/South Midlands strategy does bring infrastructure requirements. But the Corby housing must push on now. With regard to the roads, the dualling of the A43 between Kettering and Northampton is scheduled for the next ten years, but it's down the list. We need to find new ways of getting funding into schemes. Some gain from housing will go into the infrastructure, and the private sector has to understand that, whether it comes in the form of a Development Land Tax or something else.
Daniel My reaction to development land tax is a resounding no. But looking at it holistically, there is a need for some pump-priming. Looking at the Milton Keynes/South Midlands plan, the Milton Keynes end is already choc-a-bloc. That's only a few years away. Thousands of new homes with the current infrastructure would be a nightmare.
Chris Mallender, chief executive Corby Borough Council (audience) There's too much discussion on infrastructure, and not enough emphasis on social investment. We've invested £33m in buses, and increased bus use 70 per cent, double the UK rate. We've invested £370m in a new community hospital. There are plans for an academy school, £312.5m is planned for a Corby business park and £311m plans for a further education college. My opinion is the government should be looking at a reward-based system - Corby is contributing more than other areas and getting no funding back.
Hope You're right to talk of existing urban development. Tops Estates, which owns the town centre, wants to be sure that the population will be increased before they invest. What we need to learn is not repeating the mistakes of the past - there is not a lack of imagination, but we need to assess what is achievable. We need a more collective approach. Where we suffer is that Northamptonshire is relatively wealthy while the government prioritises areas of great deprivation for regeneration.
Lane Quality of design is at the forefront of current thinking. There is some impatience because we've taken a planning-led approach - it's a 25-year plan. The planning system, for all its faults, protects people.
Is there a labour and skills issue amid this debate? Unemployment is around 3.5 per cent in this region, which is quite low.
Hope We're doing extremely well. When the steelworks shut it was appalling but now we're at virtually full employment. We can now focus on looking forward as a skilled, engineering-led area. The challenge is the skills agenda. Investment in education is critical.
Dickinson We're very fortunate to be where we are. We're one of the few areas that can grow and wants to grow. The can-do attitude here is a breath of fresh air compared to other parts of the country. We're about to become one of Europe's biggest building sites, and we have a huge responsibility in shaping this area for the next 1,000 years.
Tony Smith, RS Components (audience) We're the largest employer in Corby. I live on the other side of Milton Keynes, and while it's marvellous to see growth, I believe there are a number of issues - the A14 link road is essential, and needs to arrive as quickly as possible.
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Panel
Bob Lane OBE, chief executive, Catalyst Corby. Head of the urban regeneration company established three years ago to kick-start the development of the Corby area.
Tony Hewitt, Burbage Realty. Joined the niche industrial agent practice last year and since responsible for letting some of the largest distribution facilities in the region.
Joe Dickinson, chief executive, Rockingham Motor Speedway. Spent a lifetime in the motor industry, beginning his career in sales and marketing at Ford. Also an associate director of Ricardo Strategic Consulting.
Chris Daniel, Quadrant Estates. Daniel was a founding director of the property developer, which is currently involved with more than £3120m of commercial property schemes across the UK.
Phil Hope MP, Member of Parliament for Corby since 1997, Hope is also the under-secretary of state at the Office of the Deputy Prime Minister.
Are the targets for the South Midlands Study set out by the government achievable? Where is growth going to come from over the next five to ten years in this region?
Hope The whole Milton Keynes/South Midlands area covered in the report has enormous potential. This is one of only four areas identified in London and the South East for housing growth, but growth is not going to happen without infrastructure being put in place, and by that I mean political and decision-making infrastructure as much as physical infrastructure. We're making progress with local development vehicles being set up while the government has confirmed its commitment.
Dickinson The plans are great but we need things to happen. Here at Rockingham, we're the only physical manifestation of progress so far. Our partners BMW love the area, and they bring people in from all over Europe - it's a case of genuine inward investment. They constantly cite the central location but we need to improve access. We need dual carriageways, and a big, quality hotel. We want to see action soon.
Hewitt Developers building in this area have been pleasantly surprised. We're working on a speculative retail scheme that has received some good early lettings from national retailers. The big debate here is the opening of a passenger rail link to Corby. That is the thing that will open the floodgates.
Lane There's a good comparison to be made with the North West. There the government had to intervene, whereas here there is an underlying economic strength. Growth is already happening. We're working hard to get the government to invest in the East Midlands. Corby has been left behind in the past but it's catching up. We will get the railway station and the roads but it will take time and money - both government money and private sector money.
Can anyone on the panel shed light on the railway station issue. When, if at all, could Corby get its link?
Lane The SRA (Strategic Rail Authority) has agreed to a new study. Their previous study said Corby didn't warrant a train station on its current size but the new study would be based on the projected size by 2013. Now the SRA's been disbanded the matter is in the hands of the Department for Transport (DfT) and Network Rail.
Hope If Corby grows, the infrastructure will arrive. £312m was committed by the DfT last week. Growth plans are three years ahead of schedule, so the technical case is there and the business case is there. The renewal of the Midland Mainline franchise in 2006/2007 is going to be key.
Much of the economic growth in this area is being driven by the distribution and warehousing sector. Can regeneration rely solely on this area though?
Hewitt Corby's advantage is the availability of land. We've seen a great amount of sheds built even though the infrastructure's not ideal. For major growth in office-based sectors you'd need a massive improvement in infrastructure. The roads are the key, especially a dual carriageway to Northampton. While the quality of life is an advantage out here, roads have to be built and I think that's more important at this stage than the railway.
Roger Kimble (audience) Although there's lots of talk about road and rail, is there not scope to develop Deenethorpe Airfield?
Lane The concern is with planning restrictions. We're concentrating on residential growth and to attract a new population we need to be aware of environmental matters and not lose the quality of life advantage we have. Noise pollution would restrict housing growth.
Hope The fact is some people want growth and others don't, mostly because they're wary of the style and impact of that change. These are long-term projects - if you look at Rockingham Motor Speedway, the planning permission goes back to the mid-1980s when the steelworks closed - and this is a development that's really put Corby on the map. There are processes, and they're necessary so we don't end up with poor housing and badly designed projects.
Dickinson Any form of infrastructure would be terrific. Saying an airport would be too noisy is pandering to our culture where one person can close a business, and it's ridiculous. The balance between individual's rights and the needs of business is wrong.
Could the transport infrastructure cope with the proposed increased population in this region?
Lane Corby's regeneration is part of but separate from the growth process. The Milton Keynes/South Midlands strategy does bring infrastructure requirements. But the Corby housing must push on now. With regard to the roads, the dualling of the A43 between Kettering and Northampton is scheduled for the next ten years, but it's down the list. We need to find new ways of getting funding into schemes. Some gain from housing will go into the infrastructure, and the private sector has to understand that, whether it comes in the form of a Development Land Tax or something else.
Daniel My reaction to development land tax is a resounding no. But looking at it holistically, there is a need for some pump-priming. Looking at the Milton Keynes/South Midlands plan, the Milton Keynes end is already choc-a-bloc. That's only a few years away. Thousands of new homes with the current infrastructure would be a nightmare.
Chris Mallender, chief executive Corby Borough Council (audience) There's too much discussion on infrastructure, and not enough emphasis on social investment. We've invested £33m in buses, and increased bus use 70 per cent, double the UK rate. We've invested £370m in a new community hospital. There are plans for an academy school, £312.5m is planned for a Corby business park and £311m plans for a further education college. My opinion is the government should be looking at a reward-based system - Corby is contributing more than other areas and getting no funding back.
Hope You're right to talk of existing urban development. Tops Estates, which owns the town centre, wants to be sure that the population will be increased before they invest. What we need to learn is not repeating the mistakes of the past - there is not a lack of imagination, but we need to assess what is achievable. We need a more collective approach. Where we suffer is that Northamptonshire is relatively wealthy while the government prioritises areas of great deprivation for regeneration.
Lane Quality of design is at the forefront of current thinking. There is some impatience because we've taken a planning-led approach - it's a 25-year plan. The planning system, for all its faults, protects people.
Is there a labour and skills issue amid this debate? Unemployment is around 3.5 per cent in this region, which is quite low.
Hope We're doing extremely well. When the steelworks shut it was appalling but now we're at virtually full employment. We can now focus on looking forward as a skilled, engineering-led area. The challenge is the skills agenda. Investment in education is critical.
Dickinson We're very fortunate to be where we are. We're one of the few areas that can grow and wants to grow. The can-do attitude here is a breath of fresh air compared to other parts of the country. We're about to become one of Europe's biggest building sites, and we have a huge responsibility in shaping this area for the next 1,000 years.
Tony Smith, RS Components (audience) We're the largest employer in Corby. I live on the other side of Milton Keynes, and while it's marvellous to see growth, I believe there are a number of issues - the A14 link road is essential, and needs to arrive as quickly as possible.
For the full story read on...
For the fuller picture,
subscribe to Insider
every month.