Agenda item

Presentation on recent Economic Development progress by the Chief Officer Economic Development (Briefing Note attached).

            Chairman

            Councillor Rowley chaired the meeting for consideration of both the Economic Development and other business.

MEMBER

Councillor Aitchison joined the meeting during the following update.

1.1       With reference to paragraph 2 of the Minute of 6 November 2018, there had been circulated copies of a briefing note providing an update on recent Economic Development activities. The Chief Officer Economic Development, Mr McGrath, summarised the main points.  With regard to business activity during the quarter, Business Gateway had assisted 35 business start-ups and 4 of these had met the new classification of “Early Stage” growth.  The Scottish Borders Business Fund had received 5 applications between 16 October 2018 and 31 December 2018, and approved 4 grants valued at £14,585. These projects were forecast to create 9 jobs with a forecast economic impact of £141,208 GVA.  In terms of regeneration activity, the Jedburgh CARS programme was ongoing and feedback was awaited regarding the Hawick Conservation Area Regeneration/CARS Proposal which had been submitted to Historic Environment Scotland.  The Hawick Business Growth Project was underway with a planning application submitted for the demolition of the former Armstrong’s Department store and two former churches to make way for redevelopment to create a new three-storey building providing a hub and office space for up to 17 small and start-up businesses.  In response to a Member’s question, Mr McGrath confirmed that the demand for this type of small ‘incubator’ office space in that area had been evidenced.  A further initiative in Hawick was the establishment of a Textiles Training Centre for Excellence at Hawick High School, where Alistair Young had recently been appointed as Centre Manager.  The aim of the new training centre was to tackle a critical skills shortage hampering textiles companies’ efforts to boost their production and productivity.  A funding commitment of £610,000 had been confirmed by the South of Scotland Economic Partnership to support the set up and delivery of the project for the first two years.

1.2       Members expressed disappointment with the result of the vote in Galashiels to reject a Business Improvement District (BID) in the town centre.  The ballot had been positive in terms of number of votes but not in terms of Rateable Value.  The Executive Director, Mr Dickson, confirmed that the Council would continue to work with Energise Galashiels and other organisations with the aim of taking forward the action plan which had been part of the BID process, thereby capitalising on the enthusiasm for ongoing regeneration within the town.  In terms of European Funding Programmes, Mr McGrath advised that clarification from the UK and Scottish Governments had confirmed that applicants whose LEADER grant funding was agreed and contracted by June 2019 would be able to complete their projects, even if the work was scheduled to take place after leaving the EU.  With regard to the Council’s portfolio of leased industrial units yards and shops, the occupancy level for the last quarter was 89%.  The 133 property enquiries included 19 enquiries to purchase plots.  The sale of the last 2 available service plots at Pinnaclehill, Kelso was progressed in December 2018.  In response to a question, Mr McGrath clarified that the plots referred to were Council-owned and that there were other plots still available at Pinnaclehill.

1.3       With regard to the South of Scotland Enterprise, the Council’s evidence submission, as part of the consultation on the South of Scotland Enterprise Bill, had been submitted.  Mr Dickson, Lead Officer for the South of Scotland Economic Partnership, gave a verbal update.  Formal evidence was given at the Scottish Parliament’s Rural Economy and Connectivity Committee which met in Dumfries on 14 January 2019 by Scottish Borders Council, Dumfries & Galloway Council and the South of Scotland Economic Partnership and evidence was also given at two subsequent workshops which also involved community groups and stakeholders.  The main themes focussed on economic challenges around rurality within the South of Scotland, the most sparsely populated area of Scotland outside the Highlands and Islands.  Mr Dickson drew attention in particular to the demographic projections in terms of population for the South of Scotland in comparison to other areas, which he believed were poorly understood and which had stark implications in terms of pressure on the working age population.  In discussions about boundaries there had been no proposals for boundary changes from the Local Authorities concerned.  In terms of economic growth it had been emphasised that support from the South of Scotland Agency for businesses and economic activity would be inclusive and span all areas.  Initial proposals in terms of operation of the Agency were for a hub and spoke model with locality offices working through a nominated hub.  The debate around Stage 1 of the Bill was due to close at the end of March 2019 with the aim of the new Agency being delivered by1 April 2020.

            DECISION

NOTED the update.