At a recent meeting of local businessmen being consulted by the Bank of England on the state of the local economy, there were more positive than negative comments expressed.  This is not to say that we are about to embark upon a period of strong economic recovery (fragile and finely poised was one view) but there are definite signs that we may soon emerge from the depths of the prolonged recession.    The key to ensuring that the recovery gains momentum and is sustainable is to put in place now initiatives which will bear fruit in the medium to long term.

I see the Plymouth City Development Company (PCDC) being a critical factor in underpinning Plymouth’s economic growth.  I have been fortunate to spend a lot of time working with the new team at PCDC over the past six months on a number of projects.  Some, such as the Brand Identity work being carried out by Lloyd Northover, are now in the public domain.  Others have not quite reached this stage owing to commercial confidentiality and the need to put in place the appropriate structures to assemble the resource and budgets needed for effective delivery.   Much very good work is being done behind the scenes.

The word on the street though is that PCDC’s  financial support from the public sector will cease in April 2011, the end of the three year period for which PCDC was originally funded by Plymouth City Council, SWRDA and the Homes & Community Agency.  There is no doubt in my mind that the strategic decision to create PCDC was bold, innovative and correct.  The three public sector agencies concerned are to be applauded for their resolution.

The first two years of PCDC’s operations showed a lack of visible progress for a number of reasons. This lack of progress has so far failed to give the private sector the confidence that it needs to support PCDC financially.  It is clear that the PCDC model cannot succeed without private sector backing in the long term.   Therefore, I contend, it is up to the public sector to continue funding PCDC at least until April 2013. This will give Gavin Carrier and his team a realistic chance of delivering the achievements needed to give the private sector the justification for supporting the concept financially. 

My worry is that April 2011 is not very far away.  The one thing that the business community hates is uncertainty.  While uncertainty persists businesses hold off from investing.  It is therefore most important that the decision to continue public sector funding for PCDC is taken and that it is announced very soon.   This will give the private sector the confidence it needs to support PCDC.

We have seen one bold decision from the public sector in creating PCDC.  Can it deliver a second one to keep PCDC going and demonstrate that the first decision was correct?

Chamber Matters

The 'Chamber Matters' Column features every Tuesday in the Business Section of The Herald.