Brian MacDonaldBrian MacDonald

Assistant Chief Assistant Chief ExecutiveExecutive

North Ayrshire CouncilNorth Ayrshire Council

The Local Authority led The Local Authority led Model: Model:

Dealing with Decline in Dealing with Decline in AyrshireAyrshire

Or why we kiss frogsOr why we kiss frogs

North Ayrshire IssuesNorth Ayrshire Issues

• ContextContext

• Current ExamplesCurrent Examples– FailuresFailures– Work in ProgressWork in Progress– SuccessSuccess

• Economic ForumEconomic Forum

A Different CountryA Different Country

““The highest rate of unemployment 9.4% is The highest rate of unemployment 9.4% is

North Ayrshire … North Ayrshire …

It makes the City of Aberdeen a different It makes the City of Aberdeen a different country. country.

Unemployment there is down to just 1.7%, Unemployment there is down to just 1.7%,

the City of Edinburgh is just 2.3%.”the City of Edinburgh is just 2.3%.”

August 16 2001, The Scotsman

A Different CountryA Different CountryClaimant Unemployment (September 2001)Claimant Unemployment (September 2001)

North Ayrshire has highest overall unemployment North Ayrshire has highest overall unemployment rate of 54 Travel to Work Areas in Scotlandrate of 54 Travel to Work Areas in Scotland

Current difference is 3.9 percentage points (7.9% Current difference is 3.9 percentage points (7.9% compared to 4.0%).compared to 4.0%).

In 1997 North Ayrshire was 1.5 times the Scottish In 1997 North Ayrshire was 1.5 times the Scottish rate.rate.

North Ayrshire rate is now double the Scottish rate.North Ayrshire rate is now double the Scottish rate.

2,5002,500

Population Catchment

Drivetime 30 Mins 45 Mins

Ayrshire 308,700 351,500

NonAyrshire

50,000 1,549,300

Population%

83% 95%

Location Population

Dundee 3,478,502

Glenrothes 3,798,247

Edinburgh 3,961,745

Heart of Ayrshire 4,014,817

Stirling 4,019,975

Travel Times 2 Hours

Current examplesCurrent examples

FailureFailure

Current examplesCurrent examples

SuccessSuccess

FAI

FAIFAI

SVP EXTEXT

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flueSVP

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MJ

MJ

MJMJ

FAI FAI FAI

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P O S T O F F I C ET H E C R O S S P H A R M A C Y

N o r t h E a s t S t r e e t F r o n t a g e 0 1 2 3 4 5meters

North Ayrshire North Ayrshire VenturesVentures

Background & Background & RationaleRationale• Above average Above average

unemploymentunemployment• Market failureMarket failure• Social exclusionSocial exclusion• Access to Access to

employmentemployment• Town Centre Town Centre

issuesissues• Do something!Do something!

• Use the assets of Use the assets of the area the area – transport transport

infrastructure infrastructure particularly, particularly, publicpublic

– available labour available labour forceforce

– town centre sitestown centre sites– little competitionlittle competition– access to Glasgowaccess to Glasgow

North North Ayrshire Ayrshire CouncilCouncil

North Ayrshire North Ayrshire Ventures Ventures TrustTrust

The EDI The EDI GroupGroup

North Ayrshire North Ayrshire Ventures TrustVentures Trust

Project CProject CKyleshillKyleshill Project BProject B

North Ayrshire North Ayrshire VenturesVentures

Key PrinciplesKey Principles

• 50 / 50 Partnership• Public Sector Assets - Private

Sector Capital• Expertise in different areas• Shared fundamental beliefs• Completely open book

North Ayrshire North Ayrshire VenturesVentures

Funding PackageFunding PackageKyleshill Call CentreKyleshill Call Centre

• Council Assets £240,000• EDI Capital £240,000• ERDF Funding £508,000• Bank Borrowings £900,000

North Ayrshire North Ayrshire VenturesVentures

Key IssuesKey Issues

• Long Term PartnershipLong Term Partnership• Credibility for both partiesCredibility for both parties• Pay back for both partiesPay back for both parties

– Tackling real problemsTackling real problems– Providing JobsProviding Jobs– Proving the modelProving the model– Appropriate Profit- shared with NAV TrustAppropriate Profit- shared with NAV Trust