Liverpool Echo - Frank Mckenna's Business Blog

A grubby day for democracy

2009-06-11T07:50:28Z

Due to over 100,000 North West electors, the scum that is the BNP now has representation in the European Parliament. They also won a seat on Lancashire County Council, the biggest local authority in the region, with electoral success in Burnley.
As one of my friends put it, it makes you feel 'grubby'. Or it should do.

]]> Some political commentators have suggested that it is the behaviour of our mainstream political parties, and the scandalous MPs' expenses revelations that has led voters into the arms of the BNP.
That provides the thousands of people who supported that despicable extremist grouping an excuse that, frankly, they don't deserve.
The BNP has no place in British politics, and for them to gain support on the very weekend we were paying tribute to the courageous war heroes that participated in the D-Day landings to safeguard our country from fascism, added to the outrage that I, and I know millions of others, felt.
Those who think that this is a flash in the pan protest vote that won't much matter when we get to the next General Election miss the point. France elected fascists to the European Parliament in the 80s and 90s and has been perceived as a racist country ever since. I fear the UK will suffer a similar tarnishing of its image.
When the Prime Minister does decide to go to the country, I fully expect BNP support to evaporate. But the damage to our nation's image will last beyond that election - and for four years we here in North West will have a constant, horrible reminder of the day we shamefully allowed those who would happily abolish democratic politics the opportunity of venting their sickening views on not just a local, but the international stage. Grubby indeed.

Tory concern?

The BNP's victory, alongside Labour's incredible week of turmoil as they suffered their lowest poll showing ever, and a Ministerial meltdown, somewhat overshadowed the poor performance of the Conservative Party. 28 per cent of a national poll at this stage of a Parliament was an underwhelming return for David Cameron's team. It will give the Tories some cause for concern - and Labour members renewed hope that all may not, after all, be lost. Hence, Brown's continued survival and the prospect of a hung parliament in 2010.

Liverpool Business Week will kick off with a winning event

2009-05-22T08:30:20Z

I am absolutely delighted that the launch event of this year's Liverpool Business Week will take place at Goodison Park with three very eminent speakers presenting their thoughts on the future of the beautiful game.
On the afternoon of June 22 Robert Elstone, the chief executive of Everton Football Club, Ian Ayre, Liverpool FC's commercial director, and Professor Tom Cannon from Liverpool University will explore and discuss the question 'Will the sky fall in on football?'

]]> Downtown has hosted a similar event in Preston this week as part of the Lancashire Business Week, and David Acland, insolvency practitioner from Begbies Traynor, had some stark warnings about the state of football's finances. Indeed, he predicted that within the next eighteen months there is a real possibility that a Premier League club will go bust.
Without naming names, his analysis led most in the audience to the conclusion that Newcastle United and West Ham are most at risk.
But in these times of economic uncertainty, there is no doubt that all professional football clubs face challenging times, with the corporate, commercial and sponsorship markets being squeezed.
It will be fascinating to hear the thoughts of the men at the sharp end of the business side of our local teams on how they intend to meet that challenge.
LIVERPOOL BUSINESS WEEK IS SPONSORED BY THE NORTHWEST DEVELOPMENT AGENCY AND BUSINESS LINK, AND SUPPORTED BY CITY TALK, DWF LLP, CBG GROUP, O2, NO NAME KITCHENS AND GRANT THORNTON.

Frank McKenna reflects on Downtown's five year's in Liverpool

2009-05-15T08:23:44Z

When I set up Downtown Liverpool in Business (DLIB) in 2004, I was told by a senior official at Liverpool City Council that it wouldn't last five minutes. Well, five years later, and not only is DLIB still around, but it has established itself as one of the leading private sector lobbying organisations in the region.
During the past five years, we have provided the city's private sector with what we consider to be among the best business networking events around. Our legendary 'sexy' networking evenings; the Property & Enterprise Forum; the Liverpool Business 'Oscars'; and the Livercool awards have all become 'must attend' occasions for many in the business community.

]]> Our annual events calendar now also includes a Liverpool Business Week, and through the varied and dynamic programme of events we have hosted since our launch, DLIB members have had the opportunity to listen to, and influence, some of the UK's leading entrepreneurs and decision-makers. James Barton, the late Anthony Wilson, Sir Howard Bernstein, Gordon Brown, Ed Balls, George Osborne, Phil Redmond, Steve Broomhead, Ian Simpson, David Taylor, Jim Gill, Colin Hilton, Chris Grayling and Tony Caldeira are just some of the people that we have contributed to Downtown events.
DLIB has earned a reputation as a champion of business-friendly causes. We have been successful in persuading Liverpool City Council to scrap its proposal to introduce a 'tall buildings' policy; we have been advocates of an elected mayor for the city; we campaigned for a streamlining of the number of regeneration agencies that operated in Liverpool; we were the first business organisation to promote the idea of a gay quarter for Liverpool; we spoke out against plans to extend evening car parking charges in the city centre and we will continue to argue against the introduction of either a Supplementary Business Rate or a workplace car parking tax in our city. And only this week we teamed up with leading city public affairs agency October Communications to launch the new 'Think Big Liverpool!' initiative.
The past five year's have been one hell of a ride. Here's to the next five!

Budget Blues

2009-05-01T09:23:20Z

The April 2009 budget announcement was never going to set the world to rights.

In the midst of a depression, the Chancellor has his work cut out for him. Record levels of borrowing, the pound the weakest many of us can remember, unemployment rising, the Conservatives ready to step into Government - there is frankly not much for him to be positive about.

The budget was a tangle of staggering figures - it really is difficult to get to grips with the level of debt we are in, and I feel this in some ways detracted from the good that is being done - as long as you're not an entrepreneur!

The 50 per cent tax levy on people earning over £150,000 a year could potentially stifle innovation and goes against the promises that New Labour made when it first came to power.

]]> Any good accountant is simply going to be advising clients on how to avoid paying this amount, and the whole scheme just seems likely to put a stop to traditional 'big' dreams of business.

However, the doubling of the Capital Allowance to 40 per cent will enable businesses to make investments which can only be a good thing. Although how many businesses are at a point where they can actually look to do this is another matter!

One of my personal favourites was the investment into a communications revolution. Believe it or not there are still parts of the North West which do not have access to high speed broadband or wireless connections, fast becoming a mainstay of modern business. This is a recognition that the Government sees the 'wired world' as the future of business.

As the chairman of an organisation which regularly uses its website, blogs and email newsletters to do business, I am delighted that businesses could soon be on an equal footing in this respect.

Of course, the announcements on education and training were good news - support to protect half a million jobs, training for under-25s who have been out of work for a year, £250 million to help people get work experience in growth industries.

Finally, the £500 million to kick-start building projects and new homes, although welcome, is not as effective for the property industry as abolishing the empty property tax would have been.

It is very easy to get lost in the figures of the billions the Government is borrowing to keep the country afloat, rather than focus on what is being done. Whether it is enough, time will tell.

Car parking proposal cannot be defended

2009-04-24T10:19:21Z

]]> We have also confirmed that no other 'core' city (Manchester, Leeds, Newcastle, Sheffield etc) charge for parking after 6pm.
One of the city's own regeneration experts, Liverpool Vision's Mike Taylor, described the proposal to extend evening charges as an 'own goal'.
Members of the scrutiny panel, including the impressive Eddie Clein and Alan Dean, appeared to be as bemused as I am at the nonsense of the proposition, and I hope it is their view that finally prevails in this sorry saga.
A final decision on this issue is expected in June.

Car parking proposal cannot be defended

2009-04-24T10:16:58Z

The folly of Liverpool City Council's proposal to extend car parking charges from 6pm to 8pm was exposed earlier this week at a meeting of the authority's car parking scrutiny panel, to which I, among others, gave evidence.
I had obtained details through the Freedom of Information Act that shows that the City Council has raised almost £40 million from car parking revenues since 2003. That equates to a profit of around £2 million per annum.
We have also confirmed that no other 'core' city (Manchester, Leeds, Newcastle, Sheffield etc) charge for parking after 6pm.
One of the city's own regeneration experts, Liverpool Vision's Mike Taylor, described the proposal to extend evening charges as an 'own goal'.
Members of the scrutiny panel, including the impressive Eddie Clein and Alan Dean, appeared to be as bemused as I am at the nonsense of the proposition, and I hope it is their view that finally prevails in this sorry saga.
A final decision on this issue is expected in June.

Some folk just don't like change...

2009-04-16T12:42:28Z

The city came together this week to commemorate the tragedy that was Hillsborough 1989.
Many words were spoken, articles written and television programmes aired, and at the end of it all I am sure that the families and friends of the 96 victims are feeling as frustrated now as ever.

]]> For, despite widespread recognition of the total incompetence of the police; the madness of decisions taken by the Football Association in relation to ticket allocation on the day; and even an apology from that newspaper that does not deserve to be named - and rightly is still not bought in Liverpool - there has never been any official condemnation of those who were responsible for the catastrophe that occurred twenty years ago.
That frustration was aimed at Government minister Andy Burnham at the commemorative service at Anfield on Wednesday when his genuine message of sympathy was interrupted by chants of 'Justice for the 96'.
As a Scouser, and a big football fan from the Blue half of the city, Burnham was most definitely the wrong target, but he, more than anyone, would have understood.
Not only have the FA nor the police ever offered any apology worth having for Hillsborough, but events from the recent G20 summit and the farcical decision of the football authorities to hold the Everton: Manchester United Wembley Semi-Final on a Sunday with a 4pm kick off demonstrate that some things, sadly, never change.

Agency is value for money

2009-04-01T11:46:11Z

It came as no surprise to me that an independent study has given a big thumbs up to the work of the Northwest Regional Development Agency.
Led by Steven Broomhead, the NWDA has added at least £4.50 to the regional economy for every £1.00 spent, according to the investigation that was undertaken by PricewaterhouseCoopers.

]]> The organization that was established to attract investment and jobs, has created or saved 97,000 jobs, created 3,500 businesses, supported 14,000 businesses and helped 97,000 people improve their skills, according to the study.
It is somewhat baffling, therefore, that the agency is under threat of abolition from an incoming Conservative Government.
I discussed this issue with Shadow Chancellor George Osborne at a Downtown event last week.
The Tories view is that economic development and regeneration should be managed by local Government.
The problem here is twofold. Over the past twenty years, local councils have been stripped of powers and responsibilities, and therefore the capacity of local authorities to deliver major strategies is, at best, questionable.
Second, parochialism is something that, as we have seen time and again, gets in the way of progress, making the delivery of strategic projects extremely difficult.
Example? The failure of a modern tram as the city region's councils squabbled over the preferred route, costing us millions of pounds of much needed investment into our transport infrastructure.
The notion of devolving power to elected local representatives may be a worthy principle. But in practice, such a move would put the North West region back years, and undo a lot of the good work delivered by the NWDA.

Will football give itself a sporting chance?

2009-03-26T09:34:41Z

A series of results over the past fortnight means that the race for the Premiership has become a three-horse race, rather than the one-horse stroll it had threatened to become at the end of February. This means only sixteen of the 20 clubs in the league now have nothing to play for - other than a place in a discredited UEFA Cup (to be re-branded the Europa League next season) or survival. There is, of course, a fourth Champions League spot available. That will go to Arsenal.

]]> Can the Premiership maintain its mass interest in the long-term with such an outcome almost inevitable season after season?
Football's governing body doesn't seem to think so. The Union of European Football Associations (UEFA) is considering a proposal that would see the richest clubs pay a luxury tax on their star players that would then be re-distributed to smaller clubs.
The tax idea is driven by concerns that leagues right across Europe are being dominated by an elite group of clubs, and that this monopoly will soon lead to monotony among supporters.
It is not only in England where pundits can all too easily predict who the ultimate Champions will be.
Olympique Lyonnais has won the French Ligue 1 for the past seven seasons and Porto has won Portugal's Liga for six of the past seven years.
UEFA officials went on a fact- finding trip to the US recently to discuss the luxury tax idea with officials from Major League Baseball. They also examined rules widely used in US football, basketball and baseball that limit squad sizes.
I for one wish UEFA luck in their efforts to introduce a more even playing field, and those interested in the long term future of the beautiful game should join me.
Indeed I have a suggestion of my own. The team that secures the most points per pound spent in the transfer market should win the league. In England, for four of the past six seasons, that would be Everton!

Poor co-ordination could cost city dear

2009-03-20T09:04:14Z

I am sure, like me, you were delighted with the news that Liverpool was in the running to attract a proposed Ministry of Justice (MoJ) regional headquarters to the city.
The new facility will require between 250,000 sq ft-500,000 sq ft of office space, and will create 2,500 jobs.

]]> This is a great opportunity for Liverpool, and when DLIB found out about the scheme, we approached the city council to find out what they were doing about it.
To my disappointment the answer to that question was 'not very much.'
Worse, there appeared to be little or no co-ordination between the council, the Mersey Partnership and Liverpool Vision; and none of the Merseyside MPs had been contacted and asked to lobby on our behalf.
Against this background, it is of little surprise, perhaps, that press reports suggested that Manchester, Birmingham, Bristol and Leeds had been earmarked as possible locations for the MoJ project - no mention of Liverpool.
DLIB has now alerted all of the region's MPs. The Mersey Partnership has taken on the task of co-ordinating and building Liverpool's case. Hopefully, it is not too late.
But, given the number of strategies that our governing agencies have produced over the years; the resources that we have within those various bodies; and the investment that is made in them, surely we should expect better.

Actions speak louder than logos...

2009-03-13T09:26:44Z

News that Liverpool is to launch a new logo to build on its success as Capital of Culture has been met with scepticism in some quarters. The bill for the new artwork is expected to be in the region of £150K - 'that's what the extra parking fees are paying for then' commented one DLIB member at our latest dinner last night.
However, if the new logo is supported with a serious and well resourced marketing and promotional campaign, backed by the entire city region, then it will be money well spent.

]]> I have said before that Liverpool punches well below its weight when it comes to marketing spend.
The Mersey Partnership is woefully under resourced by the six Merseyside local authorities, and can only function at all because of the additional funding provided by the Northwest Development Agency.
The establishment of the new Liverpool Vision has also blurred the lines as to who is responsible for what, when it comes to city promotion and attracting inward investment, and, above all, the lack of co-ordination across the city region continues to cost us dear.
From the fall out over what the most effective route was for a new tram, through to the yet to be resolved issue of Everton Football Club's proposed re-location to Kirkby, the Mersey region has missed out on literally millions of pounds worth of investment because of internal political wrangling that all too often plays itself out in the arena of public opinion.
This week the property jamboree of Mipim has confirmed to many that, good though 2008 was, we are still lagging far behind Manchester. The Daily Post's own Dale Street Blues blog has a good take on this.
News has reached DLIB that the Ministry of Justice (MoJ) is seeking to establish a regional headquarters outside of London. Manchester is already lobbying hard to win this new business that will create around 3,000 jobs, and take up to 500,000 sq feet of commercial space.
I have written to all the Merseyside MP's urging them to put forward the case for Liverpool. Let's hope they, and the local councils from across the region, can work in a united and co-ordinated fashion and at least give our city a fighting chance of winning this particular bid.
For, as attractive and well meaning as a shiny new logo might be, only when our politicians start to work together consistently and deliver significant investment, new business and new jobs, will such initiatives be seen as a positive by the wider community. Actions speak louder than logos!

Power without responsibility

2009-03-04T14:12:13Z

The latest legislation around the thorny issue of local Government finance is bad news for business.
Desperate to promote the perception that they are keeping council spending under control, the Government have all but capped council tax increases. But, in order not to upset their town hall comrades, they are busy providing local authorities with new ways in which they can hike taxes - with the business community likely to bear the brunt of the additional charges.

]]> The most outrageous initiative provides councils with the ability to introduce a workplace parking tax.
Given the fact that town halls up and down the country have unashamedly abused their existing powers to raise revenues via on street parking charges (regular readers will be aware of DLIB's recent campaign against Liverpool City Council's proposal to extend evening car parking charges) as sure as night follows day, local Government finance chiefs will see this as easy pickings.
Likewise the Supplementary Business Rate, which councils will have the power to introduce next year, will be another revenue raising tool that presents them with an opportunity to penalise a constituency that has no direct influence over what they do.
If a council increases council tax by, say 10 per cent, the likelihood is that they will face the wrath of the voters. The private sector has no such chance of revenge, so the Supplementary Business Rate hands local Government power without responsibility or accountability.
The latest financial handout to town halls came in the form of the Local Authority Business Growth Initiative (LAGBI). The Local Government Minister John Healey announced that £13.6 million would be made available to council's across the UK to enable them to utilise this fund for economic and business support.
It will surprise few to learn that this cash is being spent on everything from equal pay reviews to the recruitment of Police Community Support Officers. The Government appears relaxed as to weather the money is being used for the purposes for which it has allegedly been granted.
There may be no votes for councils to lose from the private sector, but the Government should be warned that business owners are getting sick and tired of the stealth tax regime that they have introduced - and will no doubt express their frustration at the ballot box come the next general election.

'Business-friendly' Liverpool?

2009-02-27T10:29:40Z

The Shadow Home Secretary, Chris Grayling, was back in Liverpool yesterday, talking about a host of issues beyond his brief, including the Conservatives' proposals to offer the major cities in the UK the opportunity of having an elected mayor.
Inevitably, part of the discussion focussed on how business-friendly Liverpool is - and potentially could be - and the general feeling of those who participated throughout the day about the city council's performance in this particular regard was as negative as I have known it to be for some considerable time.

]]> 'Business Friendly' has been a mantra that Liverpool's Liberal Democrat leadership has banged on about during their decade in power, and with some justification. Certainly, during the halcyon days of Henshaw and Storey, the perception of Liverpool as a basket case was turned around, and the local authority deserves credit for enabling projects such as Liverpool One, the Echo Arena and the winning of the Capital of Culture mantle.
But, beyond 08, and the current leadership appears to be happy to shout about these achievements rather than plan further initiatives that can build on this legacy.
The proposal to extend evening car parking charges in the city centre is a good example of our civic leaders missing a great opportunity to build on the success of attracting record numbers of visitors into the city in the last 12 months. A more innovative administration, committed to building Liverpool's reputation as a premier visitor destination, would have backed DLIB's long term calls and introduced free weekend car parking. Or, what about this idea, from one of our long time members Dougal Paver:
"If Liverpool wants to show it is genuinely business-friendly then it has to do something dramatic to drive home the point. Scrapping all car parking charges would do just that. Handled properly, it would secure global press coverage. It's the absence of cars in Liverpool that's a problem - fewer cars means fewer people spending money in the city."
A senior Liberal Democrat councillor, Eddie Clein, has suggested that there will be a re-think of the parking proposal - but the damage has already been done. The perception among many in the private sector is that the City Council was happy to damage business interests for the sake of less than one per cent of its overall budget, and confidence in the current administration has been seriously dented.
Bragging rights about low council tax are about to go out of the window too. As Liverpool gets set to vote through a 4.5 per cent increase the average rise in the UK will be three per cent. In Manchester, council tax will go up by just 2.5 per cent.
Chickens are coming home to roost here. Gesture politics motivated the Liberal Democrats to freeze council tax for a number of years. Inevitably, we now have to pay the price.
Of course, Liverpool's leaders complain that it's all the fault of the Government - but isn't that what Derek Hatton used to say?

Don't throw the baby out with the bath water

2009-02-19T09:29:43Z

I was largely encouraged by proposals announced this week by the Conservative Party for the reform of local Government.
Entitled 'Control Shift', the green paper outlines a series of measures aimed at transferring powers from central Government to local people and local institutions.

]]> Downtown Liverpool in Business has long argued for an elected mayor for Liverpool. The Tories have promised to provide the electorate in all large cities with the opportunity to choose whether to have an elected mayor, through mayoral referendums.
I also welcome the idea of creating bottom-up incentives for house building, by allowing councils to benefit more from the increase in council tax revenues from new homes; and the suggestion of giving local authorities a new discretionary power to levy business rate discounts, allowing them to help local shops and services.
I'm less convinced, though, about the anti-regional tone of the paper. I cannot think of anything worse than local councils having more power over planning issues. Applications that are heard and decided upon at a local level already suffer from 'nimbyism' and scrutiny by local councillor's often starts with the question 'is this good for my electoral prospects?' rather than 'is this good for my city?'
That being said, few would notice the abolition of the North West Regional Assembly, an organisation that I once led, and had ambitions back then of being as powerful as the Welsh Assembly. Instead it has become an invisible talking shop with few real powers.
The Northwest Development Agency, on the other hand, is well regarded by the business community, and has often come to the rescue on strategic matters across the region, with particular effect in Liverpool. Its intervention in the Culture Company; its work to help fund the transformation of the docks, including the development of the new arena, and its proactive help in supporting businesses in the last few months, deserves recognition. Hands up, DLIB works closely with the agency, but independent auditing of its work has found that it not only provides value for money, but also out performs all other RDAs.
When any new Government is elected, they want to sweep away anything that was created by their predecessors. But change for the sake of it is not to be recommended. And, I will put money on this, something at least as expensive, and probably less effective would have to be established to replace the functions of the NWDA should the threat to abolish it be carried out.
Overall, though, 'Control Shift' is an excellent contribution to the debate on the future of local Government and how public services are delivered at a local level - and how businesses can be more effectively engaged and supported.
I await with interest Labour's response.

Local Government desperate for reform

2009-02-09T14:48:49Z

In the brave new world that was promised following the election of the first Labour Government for eighteen years back in 1997, one of the Blairites' major agendas was the reform of the public sector.
One area in particular, they believed, was ripe for renewal and modernisation - local Government.

]]> The establishment of a Greater London Authority, with an elected Mayor, a Scottish Parliament and a Welsh Assembly were all delivered pledges in double quick time.
But, with the passing of weeks, months and then years, the importance of sorting out the mess that is our current local governance structures was pushed further and further down the pecking order. Events, dear boy, Events, consumed New Labour, and it became like so many before - an administration that reacts to events, rather than shape them.
But the reform of local Government, and indeed the wider public sector, is still as relevant today as it was 12 years ago. If not more so.
In Liverpool, Downtown Liverpool In Business has campaigned for a streamlining of the vast array of organisations involved in business support, economic development, regeneration, education, training and planning.
The city council went some way towards meeting our demands, with the merger of three agencies into one - Liverpool Vision, Liverpool Land Development Company, and Business Liverpool. But that still leaves over 70 organisations involved in some way or other with issues of governance and administration.
In Lancashire, things are even more confused. Downtown established a branch in England's newest city, Preston, eighteen months ago. It must be the only city council in the country whose main responsibility is to empty its residents' bins!
All the major strategic decisions are taken by Lancashire County Council, and it is one of fifteen local authorities in Lancashire. Yes, 15. Add to that, town councils and parish councils and you will understand why I believe there must be a better way.
Labour was right to believe back in 1997 that the public sector had been under-resourced. But, Gordon Brown and his Treasury colleagues pushed ahead with a public sector spending spree without insisting on the modernisation and reform that was so desperately needed and should have gone hand in hand.
And with the announcement that the Government plans to 'spend, spend, spend' its way through the current economic downturn, many in the public sector could be forgiven for feeling insulated from the ravages those in the private sector are struggling with.
However, they should be fearful for their medium, if not immediate, futures. There is a growing resentment around what people increasingly perceive as a bloated, inefficient and smug sector.
Whilst private sector jobs are being cut, numbers employed in the public sector are increasing. Public sector pay is better, on average 13 per cent higher than in the private sector. Pensions are more attractive and fully protected, hours worked are shorter, and redundancies fewer.
New graduates that may once have seen their future as part of an entrepreneurial drive and enterprise culture are reportedly flocking to the safety that is public service.
It can't go on, and the next Government, of whatever colour, will be forced to take action to reverse this unfortunate trend.
Capping executive pay is an easy option, and one that the current administration should take immediately.
There needs to be a longer term strategy to downsize local Government too. More elected Mayors, single-tier governance across the country and a massive reduction in councillors would be a decent start.