The boroughs of Merseyside have been slow to feel engaged and involved in Liverpool's preparations for European Capital of Culture 2008. And, as Lisa Miles reports, the economic benefits have not yet begun to ripple out
A quick straw poll of expectations about Capital of Culture in Wirral, Halton, Sefton, Knowsley or St Helens elicits much shrugging and repetition of phrases such as "well, it can't do any harm". At best, most think that the Liverpool Culture Company's promise that the 08 effect will stretch throughout the whole subregion is "wishful thinking". At worst you are subjected to angry tirades on local radio phone-ins. All this paints a picture of a disengaged community and doesn't bode well.
"Capital of Culture has created an impetus. Whether it affects the suburbs and boroughs will be largely dependent on whether the Culture Company get their act together," says Peter Brack, partner at commercial property specialist Dears Brack in Liverpool.
"To date, people have been less than impressed with the way that has been going. We are yet to see the kind of dynamic leadership which will dictate whether Capital of Culture is the icing on the cake of what was happening anyway - and a major event for the region as a whole."
But there has been a subtle shift in sentiment in recent months that suggests businesses and communities in the boroughs are slowly beginning to feel more engaged. The announcement of events for 2007, the city's 800th birthday year, include initiatives and celebrations across Merseyside.
"There's been a real change in the last few months in how we're working with key partners," says Culture Company chief executive Jason Harborow. "At the announcement of the 2007 activities, there were representatives from every authority, who are supporting us now they see the tangible benefits of being involved. There are working groups in place with each borough led by our relationship director, Jen Curry, and I'm really encouraged by the support."
Naturally, those in the public sector or in organisations that are already working with the Culture Company are often more receptive and positive than their private sector counterparts.
Tim Dugdill, who chairs both Knowsley Chamber of Commerce and Knowsley Economic Forum (KEF), says: "Through KEF and The Knowsley Partnership we are working closely with the Culture Company to ensure that we contribute to - and participate in - Capital of Culture activities.
"Now is the time for the whole of Merseyside and the North West to get solidly and wholeheartedly behind the company and the venture. The Capital of Culture year is going to be exciting and rewarding, but it must be much, much more than an exciting year - it must leave a permanent positive legacy for all the people of Merseyside."
While cultural events are essential in attracting tourists and - to an extent - potential employees, there is much promise of billions of pounds' worth of investment, thousands of new jobs and massive regeneration. But figures from Ernst & Young's European Investment Monitor show that foreign direct investment projects have actually fallen in the boroughs compared with Liverpool itself. This partly reflects a national trend.
"Inward investment at the moment is being driven by the service sector - and increasingly this sector has been focusing its investment on city centres," says Nigel Wilcock, regional development director at Ernst & Young. "Five or ten years ago out-of-town business parks were extremely popular, but these days companies need to focus on places where there is better access to a wider number of people through a concentration of transport infrastructure.
"With industrial sectors in areas such as Knowsley, Runcorn and the Wirral we are seeing reinvestments, but not new investments. And in the service sector, centres such as St Helens, Southport and Kirkby do not really have the scale to attract the big occupiers. With planning restrictions on car parking there is now less emphasis on out of town."
Knowsley has been particularly successful in attracting companies and the first half of 2006 has already seen repeat investments by TV shopping giant QVC, with the construction of a new high-bay warehouse and additional office and call centre space at Knowsley Industrial Park North; and Vertex, provider of business outsourcing and technology services and a subsidiary of United Utilies, which has moved its head office from south Manchester to its existing premises in Knowsley.
The usual caveat is that while Capital of Culture can only have a positive effect on the region's image, it is hard to put a finger on a business investment directly attributable to it.
"I'm sure most of us regard the idea of Capital of Culture directly benefiting the boroughs as wishful thinking," says Nigel Lax from Industrial Securities, the development manager acting for Royal London Asset Management, owner of the Atlantic Park business and industrial park in Sefton, which is home to Rolls-Royce Energy. "That's not to minimise the value of it - it is simply fantastic for Liverpool - but the drivers behind regeneration outside the city centre are different."
Chris Wright at Forward Partnership, which is developing two mixed-use sites in the Halton area, is equally unconvinced. "Liverpool's win has not helped to raise our profile and is by no means the driving force behind the regeneration of Halton," he says. "The Forward Partnership's current development is part of the wider regeneration scheme, Widnes Waterfront, which has been more influential in bringing money into Halton."
For many businesses already based in Merseyside, the expected benefits of Capital of Culture may not yet have rippled through. Through 08businessconnect, the Culture Company and Business Liverpool provide a service for businesses wanting to capitalise on the opportunities directly presented by 08.
To date over 1,550 organisations have joined and a business advisory group has been formed, made up of 14 individuals from across Merseyside, including: St Helens business consultant Stephen Ashcroft; Elaine Owen, managing director of Wirral-based Designated Associates; Tiffany Key of Life Matters in Sefton; and business consultant Val Davies from Southport.
Harborow has always pedalled the maxim "it's not what Capital of Culture can do for you, it's what you can do for Capital of Culture", but he is battling against an innate scepticism and the legacy of a grants culture. Howard Hackney, special projects partner at Grant Thornton in Liverpool, is adamant that the private sector needs to get more involved, but lays the blame at the door of the public sector.
"Whilst Capital of Culture is a huge opportunity for Liverpool and the wider boroughs, I am fearful of the apparent lack of involvement of the private sector," he says. "It seems to me that the majority of initiatives are public sector-led and that the private sector has either not been encouraged to get involved, or has found it difficult to do so. There will only be a true long-term legacy if the private sector is both allowed and able to fully embrace the opportunities available. I would encourage the public sector to work hard at bringing in the dynamism and enthusiasm that the private sector can provide and is sorely needed. Without such involvement the full potential legacy will not be achieved."
Brian McCann, partner at Hurst accountants in Liverpool, whose colleague Claire Jackson is part of the 08businessconnect advisory group, underlines the importance to businesses of seeing a direct benefit to their businesses. "08businessconnect is having an impact throughout the patch because it's the route by which any business can look for involvement in contracts, tenders and opportunities. And that's the most direct route," he says.
"When we talk to businesses about anything like 08 or Objective One, their first question is: "How do I use it to have a direct, positive impact on my business?' There has been a change in the last few months. People have heard more about Capital of Culture and our clients are beginning to engage with it."
But there are more indirect benefits, such as increased confidence and a feel-good factor, as well as rising property prices, that also have an impact on businesses.
"Winning Capital of Culture has had a significant impact on land value. It's not just because of 08 but that's accelerated the process," says McCann. "The rising values make projects feasible that were not so in the past without public money and we are seeing cranes in Wirral and Knowsley - developers are getting involved because it now makes sense. Secondly, businesses who have property on their balance sheets feel a bit more wealthy and have stronger assets to use in raising finance, which is accelerating the rate at which some of them are able to grow."
Only the most negative of naysayers would suggest that Liverpool's Capital of Culture win will have anything other than a positive effect on the surrounding boroughs, but it will take time to see the benefits and any impact will undoubtedly be less impressive than that experienced by the city centre. The fate of the boroughs lies firmly in the hands of those tasked with ensuring no one misses out .
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