Minutes:
(1) The Chairman welcomed Mr Wookey to the meeting and invited him to outline the role of Locate in Kent (LiK) and to answer questions from Members.
(2) LiK had existed since 1996 to attract investment from overseas into Kent. Kent is promoted on the basis of its proximity to both London and the continent, and its cost effectiveness. There are major brands in the County and a diverse sector base. LiK was currently involved in the 2 Seas Trade programme which was an EU funded project which aimed to help business trade in a nearby European region. There were major advantages to Kent from overseas companies and major brands investing in Kent were then useful for attracting other companies in. Kent County was in a good position with good language skills.
(3) LiK focussed on the global market place, not only Europe, and currently had agents, funded by KCC’s regeneration fund, in France, Germany and the US.
(4) E–alerts were frequently sent out to UKTI offices containing any news relevant to Kent, managing relationships with overseas companies was a vitally important factor. Companies from overseas make higher levels of capital investment, and higher employers. They also tend to re-invest on a regular basis, creating good high value jobs.
(5) The main investment drivers for business locating in Kent were access to clients and access to markets; cost was not such a significant factor.
(6) Influence and culture were important factors; the high speed rail gave Kent leverage when London was generally attractive to overseas companies.
(7) Between 1997 and 2004 an Interreg programme ran with Northern France attracting £250,000, however the Japanese economy suffered a downturn at around that time which caused difficulties with the programme. Kent was often competing with Northern France.
(8) LiK had just been part of a collaborative piece of work with Holland and Belgium where willingness was shown to access European markets; this was a joint venture with cross benefits.
(9) For LiK to work without the support of KCC would be extremely difficult.
(10) Mr Wookey confirmed that inward investment into Kent has the benefit of being linked with the European market. The prospect of a referendum was an issue for overseas investors. English was an international language which gave Kent an advantage and there was a feeling of trust and loyalty in the UK as a trade location. The costs of locating in Northern Europe were higher. The UK had reduced Corporation Tax, made Tax Credits available and the UK was attractive to invest in. This position was unlikely to change whether the UK was in the European Union or not. Assuming access to European funding continued that should be used to build on prospects. European funding was not a driver for companies to come to Kent.
(11) It was considered that access and culture were intangible elements which were unrelated to funding.
(12) One Member asked what would attract companies, such as manufacturing, into Kent rather than further north in the UK where costs were lower. Mr Wookey explained that companies were asked that their commercial drivers were for relocating/investing. However London was always an attractive location, and Kent was attractive as an alternative because of the transport links and the lower salary and premises costs. Kent was very well placed to attract science based companies which were led to Kent by skills and facilities; cost was not always the main driver.
(13) A Member queried whether French companies bring their own labour and rules with them to the UK. There were cultural issues but Mr Wookey confirmed that for example there was a successful French company based in Ashford which had predominantly British staff. Initially there may be some key personnel from the parent company/country but usually these were recruited locally.
(14) In response to a question about the Regional Growth Fund (RGF) and Marsh’s millions Mr Wookey confirmed that the RGF was administered from within KCC and these financial initiatives are making a difference helping to get companies to the table and onto a level playing field with city regions such as Manchester. There was evidence that Kent was winning investment as a result of the RGF.
(15) One Member stated that the money received from the EU was vitally important and as much as possible should be obtained.
(16) It was felt that the use of Manston might increase with increasing importance given to links with Europe.
(17) Mr Wookey explained that once a company had invested in Kent close links were kept with the companies, monitoring jobs, skills, investment, forward strategy and forward investment. It often took 2-3 years for companies to decide to locate in Kent and in that time a good relationship had been built up.
(18) Inward investment into high value employment was vitally important, LiK did target high sectors and those that in future will hold a strong position for Kent. There was a meeting with UKTI later in January to sharpen and refine Kent’s IT position.
(19) The Chairman thanked Mr Wookey for attending the meeting and helping the Committee with its work
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