Agenda Item No 5

The Vale of Glamorgan Council

Environment and Regeneration Scrutiny Committee: 14th June 2018

Report of the Managing Director

Enterprise Zones Report to National Infrastructure and Skills Committee

Purpose of the Report

1. As requested, to inform the Committee of the recent report to Welsh Government Infrastructure and Skills Committee on the future of Enterprise Zones and the job creation figures to date.

Recommendation

That the Committee considers the content of this report.

Reason for the Recommendation

To inform Members of the current position regarding job creation at the Cardiff Airport and St Athan Enterprise Zone.

Background

2. The report, "Enterprise Zones, Boldly Going" was prepared on behalf of the Economy, Infrastructure and Sills Committee of the Welsh Assembly as a review of the Enterprise Zone policy of the Welsh Government after five years of operation (Appendix A).  The report makes a number of recommendations to Welsh Government at page 7 and the report's findings can be found at page 9.

Relevant Issues and Options

3. In regard of the Cardiff Airport and St Athan Enterprise Zone (EZ) the report's findings are detailed at page 31.  The report details that it has found that 137.6 jobs have been created to date (January 2018) and 85 jobs assisted and that £13.8 million has been spent, leading to a cost per job of £62009.  The report concludes that the winding down of the EZ Board was sensible.
4. The full details of the jobs created and safeguarded along with the Welsh Government investment and also private investment included are found below.

Key Performance Indicators

Investment

Jobs

5. Further to the above and the content of the report at Appendix A it is also important to note the following key achievements of the Cardiff Airport and St Athan Enterprise Zone.

• Aston Martin has chosen the St Athan Aerospace Business Park to be the site of its second manufacturing location.  The investment aligns with the Zone's focus on leading edge engineering, manufacturing and materials and will support and complement the renewed focus on both Airport assets and their surrounds.  Around 750 jobs will be created when the facility is in full operation by late 2019.
• Cardiff Airport has developed substantially under Welsh Government ownership with an increase in passenger number of 48% over the last three years and new routes being established to Germany, Ireland, Italy, France and Spain in that period.  Flights to Doha with Qatar began, with flights commencing May 2018.
• Close cooperation between the Welsh Government, the new airfield management contractor Serco Ltd and the Ministry of Defence has enabled the St Athan airfield to open seven days a week, making a major improvement to marketability of the Aerospace Business Park.
• Bristow Helicopters contractors Balfour Beatty completed construction of a £5m facility for Search and Rescue covering South Wales and the South West of England.
• In addition to its MRO facility already operated at St Athan, Cardiff Aviation Ltd has set up a training facility in the Norman Hangar at Cardiff Airport.
• The development of the Picketston site at the north of St Athan has seen several companies locating with projected job creation of 48 FTE's once the businesses, many of whom are SME's, have established themselves on site, it is anticipated that job numbers will grow to in excess of 150.
• EZ staff are working closely with Cardiff and the Vale College to explore the potential of providing specialist provision for both Inward Investors and EZ employers from the International Centre for Aerospace Training located at Cardiff Airport.
• A local initiative to promote an apprenticeship scheme within the aerospace sector of the EZ is reaching its conclusion with a validation report being made available in June 2018.  It seeks to identify potential apprenticeships with companies within the EZ, focusing on SME's.

6. Members should also note that nearly 100 staff are now directly employed at Aston Martins Plant in St Athan.  Of these approximately half are currently training at the company's main plant in Gaydon, Warwick.  The remainder are employed on site.  Furthermore, the external and internal construction at the site has now been completed and an internal fit out is well underway, with offices complete and paint spray operation equipment currently being installed.  Initial test car construction is due to commence in early 2019 with full production by late 2019.

Resource Implications (Financial and Employment)

7. None for the Vale of Glamorgan Council.

Sustainability and Climate Change Implications

8. There are no sustainability and climate change implications as a direct result of this report.

Legal Implications (to Include Human Rights Implications)

9. There are no legal implications.

Crime and Disorder Implications

10. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

11. There are no equal opportunities implications.

Corporate/Service Objectives

12. The relevant well-being outcome is an Environmentally and Prosperous Vale with the relevant well-being objection being to promote growth and employment.

Policy Framework and Budget

13. This report is for information only.

Consultation (including Ward Member Consultation)

14. No consultation has been undertaken due to the Vale wide implications of the report.

Relevant Scrutiny Committee

15. Environment and Regeneration.

Background Papers

"Enterprise Zones Boldly Going?" - a report of the National Assembly for Wales, Economy and Infrastructure and Skills Centre.

Contact Officer

Marcus Goldsworthy, Head of Regeneration and Planning

Officers Consulted

Legal (Committee Reports)

Finance

Responsible Officer:

Rob Thomas, Managing Director