Insider Media Limited

Lancashire has put its chequered history of partnership working behind it as the public and private sectors continue to forge new relationships, according to a panel of business leaders at Insider's Lancashire Economic Forum.

The event, held at the University of Central Lancashire's (UCLan) Westleigh Conference Centre in Preston, was told that the county's Local Enterprise Partnership (LEP) is helping to heal old wounds by providing a focus for the new opportunities available.

Speaking about the failed £700m Tithebarn retail project for Preston – and the regional infighting that took place – UCLan's vice-chancellor Malcolm McVicar said the scheme served to highlight that previous divides in Lancashire would only serve to hurt the county more.

"Economic development that takes place in Preston doesn’t just benefit the city; it benefits the whole of the county," he said. "But Tithebarn showed that the county was fragmented and people would rather developments not take place than take place ten months down the line.

"That is crazy and has to stop. Clearly there needs to be a strategic director where everyone works together. Greater Manchester has had that approach for years and that is why it has been so successful. Lancashire has to follow the same approach and it has now started through the LEP."

Steve Broomhead, the former chief executive of the Northwest Regional Development Agency, sits on the LEP's board with McVicar. He said: "It's early days for the LEP and it had a difficult start because of parochialism. But there is a good sense of common purpose developing."

Lancashire County Council chief executive Phil Halsall added that the enterprise zone, earmarked for land at BAE Systems' sites at Warton and Samlesbury, would be a major plus point for the county despite the planned job cuts by the defence giant.

"From being the last enterprise zone in the UK to receive approval, we are now the one that is making the most progress," he said.

"We have reached an agreement with one major company and can now hopefully enter into a confidentiality agreement to discuss terms. We estimate over the next three years the zone could create 2,000 jobs and over its lifetime more than 8,000."

Halsall said that Lancashire County Council's purchase of a 160-acre site at Cuerden in South Ribble was also cause for excitement. The move should pave the way for the construction of a major new business hub close to the end of the M65.

Also on the panel was Dale Stokes, the managing director of Blackburn-based promotional merchandise company MDA, and entrepreneur Martin Ainscough, who grew Ainscough Crane Hire into the UK's largest crane business prior to its £255m sale in 2007.

Ainscough said that despite the tough economic climate, business owners should remain committed to investing in and growing their companies. "You might not make as much profit as you'd like, but adversity creates opportunity," he said.

"We couldn’t have built Ainscough Crane Hire into the business it became if we hadn’t battled through two recessions. That's where we beat our competitors. My message is be patient with profit, but impatient to do things right."