Agenda item

·            North Wales Economic Ambition Board – Annual Report : 2021/2022

 To submit a report by the Chief Executive.

·           North Wales Economic Ambition Board – Progress Report Q1 : 2022/2023

To submit a report by the Chief Executive.

Submitted – the following reports by the North Wales Economic Ambition Board:-

·           North Wales Economic Ambition Board – Annual Report : 2021/2022

·           North Wales Economic Ambition Board – Progress Report Q1 : 2022/2023

The Leader of the Council said that the Annual Report highlights the progress made over the last year by the North Wales Ambition Board.  The report also provides an overview of the Growth Deal and the progress made in delivering the projects together with other key milestones achieved during the year. She said that the Quarter 1 Progress Report provides an overview of progress on the Growth Deal programmes and projects.

The Head of Operations from the North Wales Economic Ambition Board gave a summary of the progress of the work of the Ambition Board to deliver the identified project within the Growth Deal.  He reported on the objectives of the Ambition Board to create up to 4,200 job opportunities and to generate up to £2.4 billion additional GVA.  The Land & Property Programme Manager and Digital Programme Manager from the North Wales Economic Ambition Board reported on the highlights from April 2021 to March 2022 as follows:-

April 2021 – A funding of £500k was secured from Welsh Government’s Whole System Business Research Innovation for Decarbonisation scheme to help farmers decarbonise;

May 2021 – A grant of £200k was secured through the OFGEM Green Recovery scheme to develop low carbon technologies for homes such as EV charging points and heating systems;

June 2021 – A focus group was conducted with the public and private sector to help identify the priorities for mobile connectivity across the region’s transport networks;

July 2021 – A visit was hosted from UK Government and Welsh Government Ministers;

August 2021– The Outline Business Case of the Glynllifon Rural Economy Hub project was approved;

September 2021– An Energy Strategy for North Wales was launched with Welsh Government, to transform how energy is used across the region;

October 2021 - £2,300 was raised for Mind, with donations being split across the North Wales braches;

November 2021 – A grant of £387,600 was secured from the Community Renewal Fund to conduct feasibility studies for Smart Local Energy Systems;

December 2021 – The first Full Business Case was approved for the Digital Signal Processing Centre at Bangor University;

January 2022 – An upgrade to the broadband services at 300 sites through the Local Full Fibre Network Scheme;

February 2022 – Support was given to three organisations to launch new agricultural systems that will help farmers decarbonise;

March 2022 – Morlais, the tidal energy stream project ran by Menter Môn, became ready to start construction.

The Head of Operations reported on the progress since April 2022 with the approval of the Outline Business Case for the Enterprise Engineering and Optics Centre with Glyndwr University and an Optics Centre and Last Few % Project.  In July 2022 the Digital Signal Processing Centre (DSP) project was launched with representation from both UK and Welsh Governments.  He referred to recent decisions to withdraw the Bodelwyddan Key Strategic Site project and the Llysfasi Net Zero Farm project from the Growth Bid.  He further said that the North Wales Ambition Board has agreed to a joint venture with Welsh Government for the proposed delivery of advanced build employment provision at Bryn Gegin, Bangor which is a growth bid project. 

The Committee considered the report and raised the following main points:-

·           Reference was made to the key priorities of the North Wales Ambition Board and to develop the strategy for attracting investment by the private sector towards the Growth Bid.  Questions were raised as to whether the third bridge across the Menai Straits is within the remits of the Ambition Board as it is essential to attract businesses to the Island and to create employment opportunities. The Head of Operations responded that the third bridge across the Menai Straits is not part of the Growth Bid as the Bid initially included 20 projects which have been agreed between both UK and Welsh Governments.  The Deputy Leader and Portfolio Member for Economic Development, Leisure and Tourism said that the third bridge across the Menai Straits has been continuously raised with Welsh Government over the years and especially recently due to the closure of the Menai Suspension Bridge which also create additional pressure on the Port of Holyhead due to the traffic delays.  The costs of building a third bridge amounts to over £400m at present and could affect the Ambition Boards projects if the third bridge will not materialise.   The Chief Executive said that there is a statutory responsibility as a region through the Corporate Joint Committee (CJC’s) to create a strategic transport plan.  He noted the importance of recognising the need for a new third bridge as a priority in the new strategic transport plan and to work with the CJC to highlight this as a priority for the region;

·           With reference to the Corporate Joint Committee (CJC’s) it was expressed that the authority had to take part in the process of establishing a Corporate Joint Committee which is a costly process with local authorities across Wales facing challenging financial situation at present.  Questions were raised as to difficulties in establishing such a provision without duplication of work that is currently happening already.  The Chief Executive responded that the CJC’s are a new body that has statutory responsibilities and the current Portfolio Director of the Ambition Boards has been seconded to the CJC’s Chief Executive role (part-time) and is considering how to  combine structures, decrease duplication, and keep the additional costs associated with the CJC’s to a minimal.  He noted that there are currently 3 programmes that needs to be addressed, namely, the Strategic Transport Plan, Strategic Planning Strategy for the Region and the Economic Development Programme;

·           Questions were raised as to the status of the Low Carbon Centre of Excellence at Bangor University and whether there is any slippages in developing the project.  The Head of Operations responded that the Egni Project - Low Carbon Centre of Excellence is reporting red and is currently in the early stages of the process and is facing high cost inflation issues as is similar with other projects. The Egni Project is part of a wider estates strategy at Bangor University.   The Ambition Boards is working with the project sponsors;

·           Reference was made that the report does not highlight the number of employment opportunities that are likely to be created from the projects especially on Anglesey.  It was expressed that young people need to have the security and vision that there will be employment opportunities available for them to enable them to be able to stay on the Island.  It was emphasised that training opportunities and apprenticeship scheme also needs to be created and supported.  Questions were raised as to whether the Ambition Board is actively promoting that job opportunities will be available for young people and especially within the 5 secondary schools on the Island. The Head of Operations responded that the Ambition Board sought financial revenue resources towards a skills programme from both the UK and Welsh Governments but the request was not supported as it was only capital funding towards the Growth Bids that was available.  However, he noted that two Officers have been appointed by the Skills Partnership to work with Careers Wales, STEM North Wales and other employers to ensure that young people within the local schools are aware of the employment opportunities. He further said that there is an intention to bid for resources from the Shared Prosperity Fund to develop the STEM North Wales programme together with skills and learning programme within secondary schools.  Representatives from the Skills Partnership are willing to attend this meeting to discuss the work undertaken;

·           Questions were raised as to the current situation as regards to the 3 Holyhead projects, namely, Morlais, Breakwater restoration and the Port expansion.   The Head of Operations said that the only project that is active at present is the Morlais project and work is currently been undertaken to create the infrastructure needed to progress with the work.   The Land & Property Programme Manager reported on the Port expansion project and said that there is a draft business case prepared by Stena’s consultants in respect of the Port land reclamation.  The role of the Ambition Board has been to support and assist as regards to the Growth Bid funding, however the Ambition Board is constrained due to restrictions as regards to subsidy support rules.  He further noted that resources as part of the Growth Deal can be utilised towards the Holyhead Gateway project and to help to support the Breakwater refurbishment project.   He said that it is anticipated that the Breakwater and the Port expansion works will commence in 2023 with a two year time-frame for construction activity;

·           Reference was made to the current cost of living crisis and questions were raised as to the effect on the projects within the Growth Deal.  The Head of Operations responded that the cost of living crisis is the challenge faced by the Ambition Board as to inflation costs and building projects costing over 30% to 40% higher than anticipated which puts significant challenges especially for the most mature projects that are ready to proceed.  It is anticipated that some of the projects with the Growth Deal may now not proceed.

It was RESOLVED to note the Annual Report for 2021/2022 and to note the progress made during Quarter 1 – 2022/2023.

ACTION : As noted above.