COMMITTEE FOR SOCIAL DEVELOPMENT

OFFICIAL REPORT

(Hansard)

Inquiry into Town Centre Regeneration

17 January 2008

Members present for all or part of the proceedings:
Mr Gregory Campbell (Chairperson)
Mr David Hilditch (Deputy Chairperson)
Mr Mickey Brady
Mr Thomas Burns
Mr Fred Cobain
Mr Jonathan Craig
Ms Anna Lo
Mr Fra McCann
Mrs Claire McGill
Miss Michelle McIlveen
Mr Alban Maginness

Witnesses:
Ms Carolyn Brown ) Federation of Small Businesses
Mr Wilfred Mitchell

The Chairperson:
I welcome Ms Carolyn Brown and Mr Wilfred Mitchell, from the Federation of Small Businesses, to the Committee for Social Development. I do not know whether you were present when I gave the weekly warning about the need to switch off mobile phones. If they are switched on, in any form, they interfere with the recording equipment. The session will follow a similar format to that of the previous session with witnesses from CO3. Perhaps, you would like to give a short presentation and take questions after that.

Mr Wilfred Mitchell (Federation of Small Businesses):
My name is Wilfred Mitchell and I am the chair of the Northern Ireland area policy committee for the Federation of Small Business (FSB). Carolyn Brown is the FSB’s policy manager. Unfortunately Mr Stephen Lyttle is unable to attend the meeting, and gave his apologies yesterday. Mr Lyttle is the owner of a furniture retail company in Banbridge, and it would have been timely for him to have been here today. However, he has provided us with a few comments.

The Committee has received a copy of our written submission. We have also circulated our document ‘Reviving Retail in Northern Ireland’.

The Chairperson:
We have received your submission and we will circulate the leaflet today.

Mr Mitchell:
We welcome the opportunity to contribute to the committee’s inquiry into town centre regeneration. I thank you for inviting us to today’s Committee. Currently, the FSB has over 210,000 members across the UK. We are the largest business organisation in Northern Ireland, with over 7,000 members in every type of business sector.

The FSB works to promote and protect the interests of all who own or manage their own businesses, and lobbies decision-makers to create a better business environment.

The FSB carries out a comprehensive survey of its members — ‘Lifting the Barriers to Growth in UK Small Businesses’ — every two years. As 2008 is a survey year, questionnaires will be sent out to members this month. The last survey was conducted in 2006, and from that the FSB can deduce that 30% of its members — approximately 2,000 — are in retail, wholesale and motor-trade sectors. A further 18% are in business services and 8% are in the hotel and restaurant industry.

Members might be interested to know that almost one third of our membership operates from a retail or shop unit, and Northern Ireland has the highest proportion of such businesses in the UK. Approximately 24% of our members’ businesses are located in a city, town or village centre, and a further 24% are on high streets or the residential or commercial districts of inner-city areas. Therefore, town-centre regeneration is a key issue for the FSB, its members and the economy. Shopping is cited by 47% of visitors to Northern Ireland as a reason to visit. It is widely recognised that vibrant towns and cities are vital to the development of a wider local area.

In 2006, the FSB published the policy document ‘Reviving Retail in Northern Ireland’, outlining its recommendations, based on the views of its members through issues raised at branch meetings or brought to committee members. I take the opportunity to mention that, in addition, the FSB calls for a small business rates relief scheme in Northern Ireland. Non-domestic rates are one of the largest outgoings for small businesses — about the third-highest cost in Northern Ireland — and it is the only region of the UK not to have such a scheme. The scheme allows small businesses to reinvest any savings made in expansion of employment, marketing or research and development, thus increasing the chances of the success of businesses and their input to the local economy, which, in turn, contributes to regeneration. The FSB has made its views known to the Economic Research Institute of Northern Ireland (ERINI), which is looking into the feasibility of such a scheme for the Department of Finance and Personnel (DFP).

There is no doubt that the single, most effective measure that could be taken to regenerate our town centres is to put a halt to the development of out-of-town and edge-of-town shopping centres. I am aware that other delegations before the Committee have mentioned the situation in Banbridge. However, I had hoped the Stephen Lyttle would have been able to tell the Committee about his personal experience of the situation. He and his fellow traders in the town are extremely concerned about the proposed development of a massive Tesco Extra store at Bridgewater Park, which would not only sell food, groceries and other household products, but also clothing, hardware and electrical goods. That proposed development has the power to deprive Banbridge town centre of business. Tesco already has a store in Banbridge, and, apparently, has planning approval for an extension. Although it has taken trade away from existing shops, it at least retains a footfall in the town centre. When existing businesses close, trade and jobs are lost, not to mention the vitality and unique character of the town.

To enable town centres to develop and grow, out-of-town retail needs to be curbed — unless demand for unique products can be made. Even then, the impact on existing retailers must be taken into account. We recommend that existing retail parks should source their products from local, small producers.

The measures in place for urban regeneration are numerous, but not always accessible to the small, independent business owner.

In Northern Ireland, 95% of businesses employ between 0 and 9 employees, and an estimated 74% have fewer than five. Many of those businesses, if not most, have no dedicated administration centre, human resource department or finance office. Usually, the owner does all the paperwork, perhaps with the help of a bookkeeper. Those businesses play a vital part in our economy and they do not have the time or resources to identify any relevant or appropriate grants or schemes.

The ‘Living over the Shop’ town-centre living initiative in Enniskillen is a good example of a leaflet that explains a scheme simply and clearly, and it includes a step-by-step guide to the grants process. Some of those steps may be complicated, for example, obtaining planning permission.

We recommend that regeneration initiatives available to town-centre businesses are well publicised and promoted, that criteria are clear and that the application process is as simple as possible. Local advice and support services will help to increase take-up. We also welcome schemes for more modest improvements which have less complex eligibility criteria and application procedures.

It is also vital that regeneration strategies work in harmony with other strategies, such as those promoting entrepreneurship, innovation, double competitiveness and increased export. We welcome the initiative taken by ICBAN (Irish Central Border Area Network), which has recognised the importance of reinvigorating Northern Ireland’s towns and rural areas. Such a project will undoubtedly ensure that those areas are supported and sustained as vibrant social and commercial centres.

Other strategies include: good community relations, safe and shared space, and so on. For example, the redevelopment of a town square needs to encourage the development of surrounding businesses, cafés and restaurants; co-ordinate with road, lighting and improvement schemes; and work with the PSNI on safety and in addressing vandalism and graffiti. It must work with the relevant agencies to promote required education and skills for prospective employment. It often seems to independent businesses that workers arrive and dig up the roads without any consideration of the impact on traders, who need access to their customers and goods delivery vehicles. Such work can have a severe impact on trade.

The FSB welcomes proposals to introduce a single Government enquiry line and to reduce the number of Government websites.

It is most important that Departments talk to one another and identify impacts and shared goals. Working in partnership and consultation with local people and stakeholder engagement is integral to successful regeneration.

The FSB looks forward to the outcome of the review of public administration (RPA) and would welcome the introduction of greater economic power to local councils. Among other things, that would increase the ability of local businesses to get to know well-informed staff, to know who to talk to and would encourage those businesses to seek advice. Furthermore, the FSB will welcome involvement in community planning partnerships, which will give local businesses a direct voice on the development of their areas.

Car parking is a major issue for town centres. Retail centres outside, and on the edge, of towns and multinational supermarkets are able to provide huge, free car parks, whereas town-centres are increasingly pedestrianised, with only expensive, metered parking or private, multi-storey car parks available. We supported members in Bangor when on-street car parking charges were proposed. It was obvious, in that case, that people would choose not to pay or time their visits to the shops, but would choose to travel to Bloomfield instead.

That proposal has not yet been introduced. Of course, what I have outlined needs to be balanced with environmental and congestion considerations.

Public transport is another reason for the importance of communication between Departments and agencies and joined-up Government. The issue of parking leads into a consideration of alternatives, and the role of public transport in bringing people into towns. A recent transport survey found that only 9% of households in Northern Ireland would be able to get a bus from their nearest bus stop every 15 minutes. Furthermore, 27% of those surveyed did not know how often they could get a bus.

The new Metro bus network in Belfast appears to be a success — passenger use has increased. However, it remains relatively expensive compared to other European cities, such as Amsterdam, particularly for peak-time commuters.

Elements that make public transport successful include dedicated bus lanes; well designated bus stops with shelters, which also provide advertising opportunities; good travel information; efficient services that run on time; and routes that take people where they want to go, when they want to go, including in the evenings. In non-city areas, it is important to have continually improving flexi-bus services.

We have welcomed the E-ways proposed for east and south Belfast. Such a service will transport people quickly and efficiently into and across the city. Research carried out by KPMG noted a major investment in light rail and tramways in major European cities, particularly London and Paris. Therefore, it is good that Belfast is keeping up. However, good facilities, such as waiting areas, shops, cafes and tourist outlets are required at depots and at the stops.

Ms Carolyn Brown (Federation of Small Businesses):
I have been told that the Committee is interested in examples of good practice from outside Northern Ireland. One such example is the Boston Main Streets programme, which is a public-private partnership initiative. The programme was formed by the city of Boston in partnership with businesses, landowners, rentowners, residents, as well as the community and city officials. It is committed to:

“making Boston’s neighbourhood commercial districts thriving, vibrant centres of commerce and community”.

Furthermore, its aim is to:
“develop long-term strategies to increase the economic power and resources of neighbourhood commercial districts while pursuing initiatives that build knowledge and capacity for Main Streets programs and the businesses they serve.”

The programme provides businesses and community residents with the tools and information that they need to enable their historic commercial centre to compete in today’s market. Since it began in 1977, over 1,000 communities in 40 states have taken part in the Main Streets programme, which has generated more than $3·6 billion in new investments, over 83,000 new jobs, more than 33,000 new businesses and more than 36,000 building rehabilitation projects.

Some of the programme’s elements include providing assistance in organisational development; strategic planning and market development; co-funding to support the cost of hiring an executive director — the equivalent of a town-centre manager in the UK; annually matching locally raised funding to support promotional events in the district; and co-funding towards improvements to private or public property. A sort of city loyalty card — the Boston Community Change card — has been introduced. Anyone can apply for the card, which offers local shopping discounts. Some of the money is returned to the shopper and some goes to community charities that can be nominated.

The city also has a Corporate Buddy Program, which links each district with a large business which provides financial and technical services. The programme provides two key elements to the Main Streets districts, including an annual $10,000 funding commitment over four years, and technical support ranging from financial planning to company volunteer projects and graphic design support.

In turn, each Main Streets area is expected to provide matching funds to the organisation’s director for promotional events, office space in the district, and materials and service for the operation of the organisation and for promotional events.

One of the most interesting outcomes has been the discovery that Government cannot do everything, and that each community must take a lead in shaping the character of its neighbourhood. The Federation of Small Businesses (FSB) acknowledges that the responsibility for town centre regeneration does not lie solely with Government. Businesses are part of the community, and we want to be involved and to contribute. The main elements of the programme’s success were its shared vision, community involvement and a shared willingness and input of resources.

The Chairperson:
Thank you both very much. I have two questions, and then I will open up the session. All of us are aware of the problems faced by small local retailers, which appear to be worsening. We have seen those difficulties for ourselves. Has the Federation, or any other body, carried out a statistical analysis that shows the extent of the demise of those retailers? Are there any figures available that indicate the impact of huge out-of-town developers on places such as Antrim or Banbridge? I do not expect that information today. I just wonder if it is available.

Ms C Brown:
Some information is available on the demise of independent retailers in certain areas.

The Chairperson:
It would be very helpful to have that information.

Mr Mitchell:
There is a separate section on Northern Ireland in our Barriers to Growth survey, which will contain elements of that information.

The Chairperson:
Thank you; it would be helpful to have that — perhaps sometime next week.

You mentioned Boston in relation to the Main Streets programme. Have you carried out any research on that? Has the Federation visited Boston? How did you become aware of it?

Ms C Brown:
A member of staff has been on a study visit to Boston and has identified it as an area of good practice. Since that visit we have done some more research ourselves.

The Chairperson:
You made some useful comments about Boston. Is a resumé of that visit available, and would it be of any help to the Committee’s inquiry?

Ms C Brown:
Unfortunately, that member of staff has left the organisation, but we can provide the Committee with that information.

The Chairperson:
That will be very helpful.

Mr Hilditch:
Thank you very much for your presentation. Banbridge was mentioned earlier in the discussion about out-of-town shopping. I attended a presentation last year at which Banbridge’s town centre manager said that the out-of-town shopping centres had been successful in bringing visitors into the town. It is clear that there are differing views on the matter.

I agree with you when you say that you do not want to have 30 or 40 town centres in Northern Ireland that look exactly the same. I do not want to stand in the middle of Banbridge, Coleraine or Bangor, looking at the same shops, feeling that I could be anywhere. Has the Federation carried out any research into niche retailing in town centres — particularly the cultural town centres — that would provide a unique visitor experience?

Mr Mitchell:
I do not think that any research has been undertaken on that subject. That is something that is becoming live. The people at the grassroots tell us about the pressures that are coming up and spilling over. We have not conducted any research of that kind. However, by the looks of the pressures that are coming, it is something that we will have to do.

Ms C Brown:
The Bridgewater retail park and the Outlet centre outside Banbridge, which concentrates on cheaper designer products, encourage people to stop in the centre of Banbridge as well. The proposed development is a massive Tesco Extra store, a one-stop shop measuring 130,000 square feet — the biggest retail floor space in Northern Ireland. I am sure that you will agree that Banbridge is not the largest town in Northern Ireland.

That will probably take people out of the town centre. Although they may go to the outlet store to buy a designer tie or a pair of shoes, they certainly could not get their lettuce and tomatoes there. However, they will be able to buy those items at the big Tesco Extra. Traders are concerned that it will take away any need to go into Banbridge.

Mr Hilditch:
I ask that the Federation of Small Businesses examines the issue of niche retailing.

The Chairperson:
No other member has indicated that he or she wishes to ask a question. Thank you very much for your informative presentation and for taking questions.