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ANNEXE 1

MARITIME 2050

CALL FOR EVIDENCE QUESTIONS: RESPONSE

FORM

1.1 The Call for Evidence asked for your views on several questions. The closing date for responding to the call for evidence is Wednesday 16 May 2018. Please use this form to complete your reply and return it to:

Call for Evidence Response Maritime 2050, Department for Transport, Great Minster House, 33 Horseferry Road London SW1P 4DR

1.2 This response form is divided into four sections. The first is an opportunity for you to give us as much information as you wish about yourself and any company or organisation you represent. We are trying to canvas opinion from as wide a base as we can as this will enable us to identify where the main challenges and opportunities are likely to emerge for the maritime sector.

1.3 The second section then asks about the aim and objectives.

1.4 The third section specifically asks questions on the themes. While we would like you to answer as many as you can, we do appreciate that you may not feel you are in a position to provide meaningful responses to all of them. The sector is extremely broad and we realise that not all questions will apply to everyone.

1.5 The fourth section is more open and wider than the earlier questions we have asked of you. This is for you to let us know if there are areas you believe would add value to the general discussion or where we are in danger of missing some critical area.

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Section 1 – About you

Q1. Please tell us in what context you are responding:

a As an individual

b As a representative of a business or firm

c As a representative of a trade body

d As a representative of an academic or research organisation

e Other (please specify)

This response is submitted by Cornwall Council and Cornwall and Isles of Scilly Local Enterprise Partnership. Cornwall and the Isles of Scilly is truly a maritime region. Our culture and heritage have been heavily influenced by our proximity to the sea.The combination of a strong maritime heritage, a talented skills base and unique environment has led to the establishment of many world leading marine businesses in the Cornwall and the Isles of Scilly region. This puts us in a unique position to contribute to a future strong and prosperous UK Maritime economy.

Through the evidence submitted in this response, we will outline the importance of the maritime sector and the marine environment to our economy as well as making the case for how this constitutes a nationally important resource.

The Cornwall and Isles of Scilly maritime economy is diverse and consists of everything from surfing to fish markets; the industries of ship repair and boatbuilding to sailing; the import and export value of our many ports and harbours; or gig racing to marine renewable energy. Our marine sector depends on a healthy and diverse marine environment.

Our evidence will demonstrate that UK maritime in best supported and prepared for the future by viewing the sector in the broadest sense. The skills, knowledge and infrastructure that today support fishing or yacht building are the foundations for emerging ‘blue’ technologies and future economic activity. While it can be tempting to focus a future strategy on the biggest ports and busiest shipping routes, our evidence will demonstrate that retaining and building skills and economic activity throughout the UK will not only ensure that the Maritime UK fosters inclusive growth that benefits all maritime regions of the UK, but that this approach will also better equip the UK to take advantage of future opportunities and retain

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our position as a global leader among maritime nations.

Q2. Please tell us about your area(s) of particular expertise:

Mark all that apply in order of priority, with 1 being the highest/most important

b Ports and their hinterland

Cornwall has a coastline of over 400 miles with no inland area more than 20 miles from the sea. There are 33 harbours in Cornwall that support a diverse range of functions including fishing, ship building/repair and trade and leisure. Ownership is a mix of private and public sector. There are a number of major ports considered to be of particular strategic economic importance for their cargo, fishing, recreational and transportation businesses. 92% of the Cornwall & Isles of Scilly businesses are located in clusters around the following 6 key ports: - Falmouth / Penryn (42%) - Penzance / Newlyn (12.4%) - Fowey / Par (12.1%) - Isles of Scilly (11.3%) - Padstow / Wadebridge (11.2%) Falmouth Port provides bulk cargo transportation services as well as a wider range of core activities including ship repair, refitting, refuelling/bunkering services, world-class super yacht design and build as well as a full range of wharfage and technical services for commercial and leisure vessels. In addition, the port supplies services for defence transport assets. As the third deepest natural harbour in the world, Falmouth is also popular for cruise ship operators and an ideal test site for emerging marine technologies such as autonomous vessels and floating wind energy. Falmouth and Penryn account for 42% of Cornwall’s marine business base and host 181 marine businesses and almost 3,000 marine jobs. A 2013 URS report1, commissioned by Cornwall Development Company, on the Port of Falmouth highlighted significant potential for growth in marine renewables out of Falmouth providing that the right facilities are in place. The development of the marine renewable energy sector would have considerable supply chain benefits for Falmouth including cargo handling of the port and quayside storage of devices and device components.

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1 https://www.falmouthharbour.co.uk/wp/wp-content/uploads/50-R019-01-Port-of-Fal-Penryn-River-Economic-

Analysis-Supply-Chain-and-Demand-Assessment.pdf

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Falmouth port also contributes to the tourism sector. The worldwide cruise ship day call market is growing. Falmouth currently has approximately 25,000 cruise passengers per annum but from looking at other similar transit ports it is feasible that this could increase to over 100,000 passengers per year if the appropriate wharf facilities and access can be developed. This would bring a significant economic benefit to the region (see section g below). Falmouth Docks is supporting these development objectives with the establishment of five Enterprise Zone Areas within the docks. The objective of the port is to upgrade wharf and land space to accommodate cargo, renewables and cruise opportunities.

Newlyn is England’s premier fishing port and one of the largest fishing ports in the UK. Marine Management Organisation figures for 2016 indicate that Newlyn had the highest quantity of landings in England: 14,100 tonnes with a value of £28 million2. Cornwall IFCA 2017 port survey recorded 161 vessels operating out of Newlyn ranging in size from 19ft to 120ft.This diversity of vessels is characteristic of the Cornish fleet overall which consists of many small scale independent operators who target a range of species by various methods. Newlyn also supports a number of adjacent industries with scope for expansion including marine engineering, regulatory and advisory services and R&D. Penzance is home to a ship repair business/dry dock and is the Cornwall side of the sea link to the Isles of Scilly. The ferry and freight links to the Isles of Scilly from the port of Penzance (the Scillonian III and the Gry Maretha) play a pivotal role in the provision of goods and services alongside the transport of seasonal tourism trade. Strategic transport links to the mainland are fundamental to the future sustainability and viability of the Isles of Scilly. Given the location of the Isles of Scilly, an efficient, reliable, year-round sea based transport service connecting to the mainland is paramount. Fowey’s deep water port provides facilities for shipping, including shipment of approximately 1.35 million tonnes of china clay per annum from the St Austell clay mines. It also has the potential to expand its complementary trade exporting secondary aggregates. Fowey also contributes significantly to the local tourism sector. It is estimated that Fowey has 405,000 visitor days per annum and that the harbour contributed a total of £14.9 million a year to the local economy in 2014. Truro provides transport of bulk commodities (e.g. coal, stone, sand, ore concentrates, scrap metal, feeds and fertilisers). In

2 Closely followed by Brixham with 13,300 tonnes but with the higher value of £31 million

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addition the following economic activities characterise the harbours of Truro and Penryn:

- Leisure: 1,383 moorings, (1,140 in Truro; 243 in Penryn) across two private marinas - Fishing: up to 35 licensed fishing boats based at Mylor during winter; buoyed mussel farms and engine-free oyster dredging fishery - Commercial traffic: 10 ships of craft metal per annum; 6 ships laid up per annum

Cornish ports are also significant providers of water based travel services which provide key connections and vital services for the day-to-day lives of the Cornish population and visitors alike. Cornwall has eight estuarial ferry crossings that operate on a regular basis, for example, the Torpoint chain ferries provide regular crossings of the River Tamar for cars to Plymouth , and the Padstow to Rock ferry carries pedestrian traffic across the harbour. Water taxis also provide an important transport service in more populated areas, for example in and around Falmouth. The ferry links to the Isles of Scilly from the port of Penzance (the Scillonian) play a key role in the provision of goods and services alongside the transport of seasonal tourism trade. Water based travel services enables accessibility for the many rural peninsulas that are part of Cornwall’s landscape character.

Ports also play an important role in relation to Cornwall and the Isles of Scilly’s tourism economy. Overall maritime tourism continues to be a key economic input to our maritime industry base. Cornwall Maritime Strategy 2012-2030 suggests that in Cornwall over 8,000 moorings and berths around the coastline are occupied and up to 45,000 visiting yacht nights are spent per year. Figures reported in Nautisme Espace Atlantique 2 Final Report indicated that there, in Cornwall in 2009, were over 400 businesses and service providers directly related to the marine leisure industry, employing over 3,800 full-time staff, and generating an estimated income of £295.4m for the economy. A wide range of activities that use the sea including sports such as surfing, sailing, diving, kayaking, coasteering, paddleboarding, angling, wind & kite surfing and water skiing also contribute to the overall revenue derived from maritime tourism in the area. Of these, surfing and sailing contribute half of the turnover to the Cornwall marine leisure industry.

Sources: Cornwall Maritime Strategy 2012-2030; Knowledge Transfer Partnerships, The Economic Impact of Fowey Harbour; research from Fowey Harbour Commissioners and Cornwall Council; 2013 URS report, commissioned by CDC, on Falmouth Port; Source: Ports of Truro and Penryn, SuPorts Cluster Project, Action Plan, Cornwall Marine Network, 2015; Nautisme Espace

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Atlantique 2 Final Report

e Technological development and innovation

The Cornwall and Isles of Scilly Local Enterprise Partnership (C&IoSLEP) has identified the marine sector as one of 10 opportunities3 in Cornwall and the Isles of Scilly to drive business growth and help transform the UK economy. As part of the South Coast Marine Cluster and Blue Growth UK, our industry has access to a huge network of marine companies and institutions. By developing new technology, identifying investment opportunities and focusing on global exports, we can bolster Cornwall and the Isles of Scilly’s position at the forefront of the UK’s marine-tech and offshore energy industry. Already present in Cornwall and the Isles of Scilly are; –– A network of world-class research institutions, both in the region and within the South Coast Marine Cluster, including FaBTest, the University of Exeter, the University of Plymouth, and Marine-i, a partnership dedicated to growing the marine sector through research, development and innovation. –– Hundreds of small, medium and international companies, many with strong track records in disruptive innovation leading to sustainable business growth, , such as;

the Wave Hub, the world’s most advanced site for testing offshore energy technology;

Fugro, a globally leading provider of geo-intelligence,

James Fisher Marine Services a industry leading marine projects and engineering provider,

Severn Subsea Technologies – providers of high value sensor technology to the Oil & Gas and Offshore Renewables industries,

LDD Ltd – market leaders in large diameter subsea drilling

- A strong business base supported by Cornwall Marine Network (CMN), a not-for-profit organisation established by marine businesses to improve the prosperity and sustainability of the sector through bespoke business support, productivity improvements and innovative skills solutions which has supported more than 3,000 people into employment. CMN also hosts a subsidiary company, the MOR Group which is comprised of specialists in the marine and offshore renewables supply chain. –– Hundreds of miles of coastline with deep natural harbours,

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3 https://www.cioslep.com/vision/10-opportunities

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access to the Atlantic, a 15-hectare Marine Enterprise Zone, and close proximity to Plymouth and the city’s marine resources. Cornwall is part of the Plymouth and South West Peninsular City Deal4. A Memorandum of Understanding has also been agreed between Marine Energy Wales and Marine Hub Cornwall. Areas of collaboration that have already been identified include encouraging business networking and collaboration, supply chain and skills development, research programme development and sharing of best practice in the areas of planning, environmental and stakeholder engagement.

Cornwall and the Isles of Scilly are already at the forefront of marine technology, but we need to keep ahead of the curve. By facilitating investment, innovation and collaboration, we can carry on the UK’s tradition as a marine superpower. To do this, we want: –– ongoing support for investors and businesses that want to capitalise on Cornwall and the Isles of Scilly’s competitive advantage in the marinetech sector; ––to continue the legacy of Marine-i, including a new investment fund for marine businesses in the region looking to grow by developing innovative new technology. - to work with partners to understand the potential of renewable energy production, including the extensive use of floating wind, off the UK West Coast. This has the potential to deliver significant green energy in support of the regions/ UK’s green growth aspirations.

The role of incremental innovation is important in improving competitiveness and generating productivity gains within SMEs. This is particularly true for micro and small businesses which represent 96% of the marine business base in Cornwall and the Isles of Scilly. There is demonstrable evidence that the majority of SMEs need to focus on incremental innovation improvements to their products, services and processes in response to customer needs and that dedicated support and investment in this area leads to an increase in turnover growth.

A 2013 URS report on Falmouth Port highlighted that the deep water berth located at the Port of Falmouth, is critical for the retention and expansion of the renewable energy sector. The offshore renewable energy production is expected to grow significantly over the coming years and this expansion is reliant on the availability of suitable port infrastructure. The Port of Falmouth could be the ideal base for both wave device developers and the

4 http://web.plymouth.gov.uk/citydeal

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emergent market for floating wind developers as there is no other private sea port with dockside facilities and sheltered waters of its type within the South West region.

Sources: Cornwall Maritime Strategy 2012-2030; Marine-I website, Cornwall and Isles of Scilly LEP 10 Opportunities; 2013 URS report, commissioned by CDC, on Falmouth Port; CMN “Propel”, 2018.

d Marine engineering and manufacturing

It is estimated that there are 855 marine-related SMEs based within Cornwall and the Isles of Scilly. Larger businesses include Pendennis Shipyard, A&P Falmouth, James Fisher Group, Fugro Geoservices and LDD, all with a strong local supply chain.

A&P Falmouth currently provides the in-service engineering support to the UK Ministry of Defence ships, tide class tankers and various other naval craft such as the Mersey class vessels. The Falmouth Docks proximity to RNAS Culdrose is key. The port is essentially used as the fourth naval port in the UK and as such it is important to maintain its capacity and capability to serve naval vessels in the South West.

Business activity around the major Cornish ports (see section re. ports above) include ship repair, refitting and a full range of wharfage and technical services for commercial and leisure vessels.

As part of the SW Marine cluster Cornwall is also test site for emerging marine technologies such as autonomous vessels.

Sources: Propel Cornwall; Cornwall Maritime Strategy 2012-2030; Input from AP Falmouth re. Falmouth Port.

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a Shipping (including shipbroking)

The ports of Fowey, Falmouth, and Truro in particular are considered to be of strategic economic importance for their cargo and transportation businesses. For 2014 the following freight movements in Cornish ports were as follows; Fowey 656,000 tonnes, Falmouth 360,000 tonnes, Padstow 164,000 tonnes, Porthoustock 78,000 tonnes, Penzance 14,000 tonnes and Truro 10,000 tonnes. Fowey’s deep water port provides facilities for the shipment of china clay from the St Austell clay mines. It also has the potential to expand its complementary trade exporting secondary aggregates.

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Truro also deals with the transport of bulk commodities (e.g. coal, stone, sand, ore concentrates, scrap metal, feeds and fertilisers) although its annual tonnage is substantially smaller. Cargo into the Port of Falmouth is an important element of the local maritime supply chain. Much of the rural economy relies on the supply of waterborne cargo through the Port of Falmouth to keep costs low. The Port of Falmouth handles a variety of import export cargoes, all dry bulks. Volumes are relatively modest but are important for the Cornish economy, especially farming and aggregates (animal feed, fertiliser, glass cullet, and other materials) and for the export of waste that would have previously been landfilled. Falmouth also has a rail head within the docks which provides the county with an important connection for cargo movements.

Sources: Cornwall Marine Strategy 2012-2030; Data on freight movements by port is available from the Department for Transport; Input from AP Falmouth re. Falmouth Port.

g Passenger and other customer services

Water based travel services provide key connections and vital services for the day-to-day lives of the Cornish population. Cornwall has eight estuarial ferry crossings that operate on a regular basis, for example, the Torpoint chain ferries provide regular crossings of the River Tamar for cars to Plymouth, and the Padstow to Rock ferry carries pedestrian traffic across the harbour. Water taxis also provide an important transport service in more populated areas, for example in and around Falmouth. The ferry links to the Isles of Scilly from the port of Penzance (the Scillonian) play a key role in the provision of goods and services alongside the transport of seasonal tourism trade. Water based travel services enables accessibility for the many rural peninsulas that are part of Cornwall’s landscape character.

Tourism is also central to Cornwall’s economy. Cornwall and the Isles of Scilly attract around 4.5 million visitors annually, and the sector is valued at £990m (GVA), accounts for 9.9% of the total economy and supports 37,300 jobs. Our marine and coastal environment, landscape and activities are a key factor in people choosing Cornwall as holiday destination. Cornwall’s marine and coastal environment draws people from all over the world. The sheer diversity of maritime wildlife makes Cornish waters an ecological hotspot demonstrated by the designation of a number of nature and landscape conservation areas; covering the sheltered muddy creeks of our estuaries, rugged granite cliffs, rocky reefs, islands and beaches: to more

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specialist habitats such as the ancient maerl beds – the Cornish equivalent of a coral reef. These areas all support an amazing array of species including commercially important fish and shellfish. Cruise ships in Falmouth generate tremendous economic benefits for the whole county with an estimated impact of £17 million per year (berthing, refit, visitor spend and excursions). In 2018, 33 cruise ships carrying a total of 22,000 passengers are scheduled to come to Falmouth, with many returning ships attracted by the strong visitor experience and 50% of passengers booked onto 1-day excursions to Cornish tourism attractions (Eden Project, Land’s End, etc.). Opportunities for the future include improvements to the infrastructure and growth as a turn-around port. Sources: Cornwall Maritime Strategy 2012-2030; Input from Cornwall Marine Network

h Maritime supply chain and connectivity

It is estimated that maritime related economic activity contributes between £300 million to £500 million to the Cornish economy in yearly Gross Value Added (GVA). It is estimated that employment in the marine sector for 2016 give a total of 8,500 -9,000 full-time equivalent jobs. This figure includes both direct and indirect employment. Included within this definition of the sector are: fishing and aquiculture; ship building and repair; passenger transport; freight transport; and other services related to the sector. This definition does not include tourism. Propel Cornwall suggest a total of 12,500 jobs are linked to the maritime sector in Cornwall. Cornwall Council, Exeter University and Cornwall Marine Network are conducting a piece of research - Marine Innovation and Growth Project - to better understand our local maritime supply chain. Draft results from this research would suggest that there are 855 companies in the Cornish marine sector (99% of which are SMEs and 86% of these micros) which have a combined yearly turnover of £1.12billion per annum. The marine and maritime sector in Cornwall has more than doubled in size during the last 13 years (adjusted for inflation). Significantly, the number of marine businesses has grown from 650 to 855 (+31.5%). SMEs have increased from 647 to 820 (+26.7%) and large companies have grown from only 3 to 7 (+57%) mainly as a result of mergers and acquisitions from national and international businesses investing in Cornwall. There has been a steady growth towards commercial marine activity from a previous predominance of leisure marine. This period of rapid growth coincides with CMN’s existence and the dedicated support they offer to strengthen economic growth within the sector.

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The research preliminarily indicates that the six sectors within the maritime supply chain in Cornwall the greatest turnover are:

Building of pleasure and sporting boats = £13 million

Repair and maintenance of ships and boats = £73 million

Retail sale of sports goods, fishing gear, camping goods, boats and bicycles = £5 million

Service activities incidental to transportation = £3 million

Other business support service activities = £120 million

Other personal service activities n.e.c.5 = £3 million A total economic value of £217 million from these top six sectors: at least 3% of the Cornish economy. Connectivity is important for all economic activity in Cornwall. Cornwall Council estimates that in 2015 total good exports from Cornwall equalled £583 million. Of this 66% went to other EU countries. Total imports for 2016 are estimated at £760 million with approximately 40% originating from other EU countries; 30% originating from Asia and Oceania and 20% from North America. Cornish businesses are dependent on good connectivity to European and international markets via Cornish ports and access to other UK ports and the channel tunnel. Enabling and facilitating good land based transport links is important to optimise transportation cost for more peripheral maritime regions and encouraging economic activity and opportunity. In addition, Cornwall’s local transport plan (Connecting Cornwall 20306) aspires to:

Encourage greater use of water transport for the movement of freight to maximise the use of the excellent maritime infrastructure that Cornwall possesses.

Policy 12 states that, “We will work with partners to increase the amount of freight moved by water.”

Improving the connectivity of Cornwall (to other parts of the UK and the world)

Sources: Exeter University, Marine Growth and Innovation project, “Marine Innovation and Growth Project”, 2017, draft; Cornwall Maritime Strategy 2012-2030; Propel Cornwall; Connecting Cornwall 2030

f Maritime education, training and employment

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5 n.e.c. = not elsewhere classified

6 https://www.cornwall.gov.uk/transport-and-streets/transport-policy/local-transport-plan-connecting-cornwall-

2030/

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It is estimated that employment in the marine sector for 2016 was in the region of 8,500 to 9,000 full-time equivalent jobs. This figure includes both direct and indirect employment. Included within this definition of the sector are: fishing and aquaculture; ship building and repair; passenger transport; freight transport; and other services related to the sector. This definition does not include tourism. Propel Cornwall suggest a total of 12,500 jobs are linked to the maritime sector in Cornwall.

In addition to paid jobs there are around 1,100 volunteers (some

paid and some not) who provide support as Beach Life Guards,

Children’s Sailing Trusts, the RNLI etc. Besides the obvious support

that they provide to communities and visitors; they help build

capacity and skills in areas such as leadership and team

development which are important for the wider economy. As an

approximate measure, older research from the Cornwall Marine

Network suggested that boat building and ship repair added

approximately £50,000 GVA per person to Cornwall’s economy.

One ongoing issue is the availability of workspace close to the

supply chain and waterside sites.

Cornwall already has strong foundations in training and education for maritime industries for example, in relation to navigation, skippering, and ship building - with organisations such as the Cornwall Marine Network providing a resource and development focus. Future training demands will include the ongoing development of the tourism industry and marine engineering and enabling flexibility for deployment of skills across related sectors such as maritime. Additionally, initiatives focused on making Cornwall a centre of marine based renewables (e.g. the Marine business energy park at Hayle) will require new courses to be coordinated and promoted through the Combined Universities in Cornwall.

While the Maritime UK Call for Evidence document mainly referred to seafarers’ roles in the sector, we would like to stress that the maritime sector goes beyond jobs at sea with numerous career paths available on shore. In Cornwall the maritime sector offers attractive economic prospects with an average salary above the Cornish cross-sector average.

Education and training provision is available in Cornwall and Isles of Scilly from pre-apprenticeship programmes and taster sessions delivered by Cornwall Marine Network in partnership with marine employers through to Levels 2-8. Key providers include Cornwall Marine Network, Falmouth Marine School and the Cornwall College

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Group, Truro and Penwith College, the University of Exeter and the University of Plymouth. The training provision includes marine engineering, boat building, marine biology, watersports, marine renewables as well as cross-sector skills such as business administration, management and leadership, etc.

However marine businesses report difficulties to fill technical positions including mechanical engineering roles (British Chamber of Commerce 2018). In this context employers particularly value apprenticeships as a way to train new or current staff to acquire specialised skills.

Key issues self-reported by surveyed employers include:

- The need to diversify to remain competitive. Many businesses cover a range of marine sub-sectors across their business activities, and many also provide services outside marine in areas such as engineering and construction, showing demand for and value of transferable skills;

- Staffing issues: these are a concern for companies, many with an ageing workforce. Those in more peripheral locations in particular have difficulties in retaining skilled staff due to travel and access issues;

- Finance, marketing, staff retention, skills development and practical job experience including apprenticeships, and a suitable workspace.

It is a priority that any future funding programmes aimed at maritime education, training and employment allows for bespoke training including in low numbers, and employer involvement in determining the need for business skills. In Cornwall and Isles of Scilly, Cornwall Marine Network has set up a Community Investment Company (CIC), the Cornwall Marine Academy, which delivers careers advice, work placements, taster sessions and pre-apprenticeship programmes for young people up to the age of 25. The model emerged from discussions with employers who reported a lack of employability and work skills of young people. The model involves employers as marine ambassadors and has enabled since 2007 to deliver vocational training to more than 3,500 young people and career advice at schools to more than 30,000 young people.

Prioritising STEM subjects at school is also crucial to achieve the Government target of 800,000 people trained in engineering by 2020.

Sources: Cornwall Maritime Strategy 2012-2030; Propel Cornwall; Exeter University, Marine Growth and Innovation project, 2017, draft; Marine Innovation and Growth Project 2017

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c Maritime law, insurance or finance

i Other (please specify)

Q3. If you are responding on behalf of an organisation, please give us an indication of the

following:

a. The size of the organisation or, if more applicable, the number of people or companies you are responding on behalf of.

Cornwall and the Isles of Scilly is truly a maritime region. Its culture and heritage have been heavily influenced by proximity to the sea.The combination of a strong maritime heritage, a talented skills base and unique environment has led to the establishment of many world leading marine businesses in Cornwall and the Isles of Scilly. This put us in a unique position to be part of future strong and prosperous UK Maritime economy.

Approximately 553,000 people live in Cornwall (mid 2017 estimate) and total Gross Value Added in 2016 was £ 9,490 million. Approximately 2280 people live on the Isles of Scilly (mid 2014 estimate) and total Gross Value Added in 2016 was £55 million. Cornwall Council and the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP) recognise the importance of the maritime sector together with the marine environment and all that it supports. Vision 20307, which is Cornwall and the Isles of Scilly’s 2017-2030 Strategic Economic Plan, identifies the need to support key sectors of the economy to develop and grow. The LEP 10 opportunities document specifically identifies the Marine sector as one of the sectors that can drive the future economy of Cornwall. New Frontiers, the Cornwall and Isles of Scilly’s devolution proposition to Government, also recognises the Maritime sector. Cornwall Council’s Environmental Growth Strategy8 outlines Cornwall’s intention to not only protect, but increase the quality and productivity of our natural capital, including the oceans and coastlines that surround Cornwall. Cornwall Council’s Maritime Strategy 2012-20309 (currently being reviewed) outlines the overall policy and planning approach taken by Cornwall as a maritime region. The annex to the strategy includes a wealth of evidence relevant for this call (please see link above), much of which has been included in this response. Our rich and varied maritime cultural heritage of fishing, trade, industry and communications has contributed to the regions sense of local distinctiveness, place and cultural identity. It is recognised as being a nationally important resource. Our maritime economy is diverse and consists of everything from surfing to fish markets; the industries

7 https://www.cioslep.com/assets/file/Vision%202030/Vision-30.pdf

8 http://www.cornwall.gov.uk/media/24212257/environmental-growth-strategy_jan17_proof.pdf

9 http://www.cornwall.gov.uk/environment-and-planning/maritime-strategy/

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of ship repair and boatbuilding to sailing; the import and export value of our many ports and harbours; or gig racing to marine renewable energy. Our marine sector depends on a healthy and diverse marine environment. Overall it is estimated that Cornwall’s marine industry sector generates between £300 and £500 million to the Gross Value Added of Cornwall and it is estimated that that the sector supports in between 8,500 and 9,000 jobs excluding tourism. The development potential of Cornwall’s maritime sector will be critical to the region’s future and long term prosperity. Draft intelligence from the University of Exeter and Cornwall Marine Network would

suggest that there are 855 companies in the Cornish marine sector (99% of which are

SMEs and 86% micros) which have a combined turnover of £1.12billion per annum.

In addition to paid jobs there are around 1,100 volunteers (some paid and some not)

who provide support as Beach Life Guards, Children’s Sailing Trusts, the RNLI etc.

Besides the obvious support that they provide to communities and visitors; they help

build capacity and skills in areas such as leadership and team development which are

important for the wider economy. As an approximate measure, older research from the

Cornwall Marine Network suggested that boat building and ship repair added

approximately £50,000 GVA per person to Cornwall’s economy. One ongoing issue is

the availability of workspace close to the supply chain and waterside sites.

Tourism is also central to our economy. Cornwall and the Isles of Scilly attract around 4.5 million visitors annually, and the sector is valued at £990m (GVA), accounts for 9.9% of the total economy and supports 37,300 jobs. Our marine and coastal environment, landscape and activities are a key factor in people choosing Cornwall as holiday destination.

Our marine and coastal environment draws people from all over the world. The sheer diversity of maritime wildlife makes Cornish and Isle of Scilly’s waters an ecological hotspot demonstrated by the designation of a number of nature and landscape conservation areas; covering the sheltered muddy creeks of our estuaries, rugged granite cliffs, rocky reefs, islands and beaches to more specialist habitats such as the ancient maerl beds – the Cornish equivalent of a coral reef. These areas all support an amazing array of species including commercially important fish and shellfish. In 2014 Cornwall Council participated in a case study with Plymouth University and the wider sector examining the cultural, wellbeing and health benefits of the coastal and marine environment from Plymouth Sound to Fowey (using national ecosystem assessment methodology). 70% of all sample respondents took part at some point in at least one sea based activity which included swimming, coasteering, surface water sports, underwater sports, sailing, boat trips and fishing; and that overall interaction with the sea enabled connection with the environment and a sense of wellbeing. For water sports there was a bias toward women responders; and significant elements of over 65 participants. Sources: Cornwall Maritime Strategy 2012-2030;Economic Monitoring Monthly Update

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February 2018; ‘Exploring the Cultural, Health and Well-being benefits of a Coastal and Marine Environment (Plymouth Marine Laboratory, University of Exeter, EU Valmer programme, Cornwall Council and Plymouth University); Exeter University, Marine Growth and Innovation project, 2017, draft; ONS release in 2016 and Visit Cornwall, The Economic Impact of Cornwall’s, Visitor Economy 2015.

b. The main business or activity of the organisation

Preliminary collaborative research conducted collaborate by Cornwall Council, Exeter University and Cornwall Marine Network suggests that main activity generating jobs and economic growth are linked to ship building and repair; passenger transport; freight transport; fishing and aquiculture; and other services related to the sector. The preliminary research mentioned above further indicates that the six sectors within the maritime supply chain in Cornwall with the greatest turnover are:

Building of pleasure and sporting boats = £13 million

Repair and maintenance of ships and boats = £73 million

Retail sale of sports goods, fishing gear, camping goods, boats and bicycles = £5 million

Service activities incidental to transportation = £3 million

Other business support service activities = £120 million

Other personal service activities n.e.c.10 = £3 million In addition to this comes jobs and economic activity related to tourism, which as outlined above is closely linked to the maritime geography of the region.

c. The region(s) of the UK in which your activity is predominately based (if you are active across the whole country then please answer ‘National’, if not based in the UK please let us know in which country you are based)

Cornwall and Isles of Scilly. As part of the South West Maritime Cluster Cornwall and the Isles of Scilly cooperates with a range of stakeholders from across the South West peninsula and wider EU.

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n.e.c = not elsewhere classified

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Section 2 – Building a strategy that works for the UK

The first step towards building a strategy that works is to have a clear understanding of what the overall aim should be. We suggest the following:

“The UK enhances its areas of strength as a great maritime nation by meeting the challenges

of the long term future and exploiting the opportunities that arise.”

Q4. What are your views on this aim?

Cornwall Council and CIoS LEP welcome the first part of the suggested aim as formulated above, however we are concerned about the use of the word “exploiting” in second part of the suggestion. A future-proof strategy needs to have the sustainable use of natural resources at its heart and an alternative suggested formulation could therefore be; “The UK enhances its areas of strength as a great maritime nation by meeting the challenges of the long term future and rising to the opportunities that arise while protecting and increasing the quality and productivity of the oceans and our coastlines.” In addition to developing an aim for the future Maritime 2050 Strategy, we believe it would be useful with a clear definition of what is meant by ‘maritime sector’ in order to clearly outline the scope of this future strategy. Currently the call for evidence paper seems to have a rather narrow focus on shipping and port activity. While these activities are important, they are only part of the diverse range of economic, social and environmental activities that characterise maritime regions such as Cornwall and the Isles of Scilly. A wider broad definition of the maritime sector would be welcomed and is necessary to understand the wider opportunities and potential for the maritime economy in the UK that are being successfully developed in our region. We would suggest that as well as including a range of economic sectors (such as shipping and port activity, fisheries, tourism and the sporting sector, maritime engineering including boat building and repair sector, off-shore renewables) the definition of the maritime sector should also encompass the relationship communities have with the ocean and coastlines (for wellbeing) as well as recognising the importance of the natural resource that the maritime activities are dependent on, and should include efforts to protect and increase the quality and productivity of the oceans and our coastlines. It is anticipated new business opportunities will arise as communities embrace healthier lifestyles, from an increased demand for watersport activities to the fight for plastic pollution at sea and subsequent new sustainable packaging and innovative recycling solutions. Finally Cornwall Council and CIoS LEP would like to stress that the future strategy needs to balance the need for long term planning (planning for 2050), with the sector’s

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need for strong government leadership in the coming 5-10 years.

To support this aim we have identified three aspirations for the sector as follows:

To continue to act as the main enabler and facilitator for trade in and out of the UK;

To continue to significantly contribute in real terms to the UK economy; and

To be a world leader in contributing to the continued maintenance and further development of a safe secure global maritime environment.

Q5. What are your views on these aspirations? Are there others that the UK needs to take

into account?

We broadly agree with these, but would suggest two improvements.

Firstly we believe that the second aspiration could be expanded to talk about the diverse

ways in which the maritime sector contributes to the economy both directly and through

supportive industries/supply chains. This is linked to our comments in Q4 regarding a board definition of the maritime sector.

Secondly, we would suggest that a fourth aspiration is developed which would outline the need to protect and increase the quality and productivity of the oceans and our coastlines in the face of challenges such as pollution, overfishing, climate change etc.

Cornwall Council’s Environmental Growth Strategy outlines Cornwall’s intention to not only protect, but increase the quality and productivity of our natural capital, including the oceans and coastlines that surround Cornwall.

The maritime sector is driven by consumer demand and consumption which allows it

to adapt its flows and capacity accordingly. The sector is rightly proud of its ability to meet those needs and we must ensure that our future strategy allows this to continue. This short section looks at the sector and its relation to its customers in general terms.

Q6. What developments (for example technological) in other sectors of the UK economy

could influence user demand for maritime services in the future?

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As outlined in Q4, it is important that the maritime sector is understood in its broadest sense beyond a narrow focus on shipping and port activity, as a basis for future proofing the UK’s competitive advantage.

There are a couple of issues that we would like to highlight that are likely to influence user demand;

While climate change and pollution are key challenges for the sector, these issues are also likely to be drivers of technological change with new technologies being developed as a response to these challenges e.g. renewable energy. The Marine Renewable Energy sector could potentially support over 6,000 direct FTE jobs in the South West in the period from 2015-2030 with most of the potential in wave and floating offshore wind (Marine Renewable Energy Skills’ Research, July 2015, Cornwall Marine Network). Climate change and pollution may also significantly influence consumer preferences for products and modes of transport that pollute less e.g. as seen in recent community movement against plastic. It will

be important for the UK to take a proactive approach to these challenges as the blue growth and circular economy agendas gain momentum.

As outlined under Q2 (section h) Cornwall Council estimates that Cornish businesses export 2/3 of their goods to other EU countries. The UK’s exit from the

European Union has created uncertainty around UK’s future access to European and international markets. This will have implications for demand and supply for most sectors of the economy. In order for the UK and Cornwall to remain open for

business it is essential that a conducive international trade environment is in place where market access to European and international markets is secured in order for business to continue to thrive.

The data economy will expand onto the marine sector with increasingly

sophisticated software and control systems for ships and boats (unmanned vessels, robotics, etc.). This evolution will go hand in hand with a growing need for specialised IT skills to design and maintain such software.

Q7. What do you think are the current and potential weaknesses in the UK maritime

sector?

It is important that the maritime sector delivers growth and jobs for coastal communities,

while protecting and enhancing the quality and productivity of the oceans and coastlines that the sector depends on.

Driven by the increasing size of container ships there has, in recent years, been a tendency to concentrate maritime policy on the biggest ports and busiest shipping lanes. While this concentration of activity has delivered economies of scale for the largest ports, it carries the risk of raising transportation cost for more peripheral maritime regions and stifling economic activity and opportunity in these regions. This has negative implications not only for these peripheral maritime regions, but also for the maritime

sector as a whole. Traditional maritime regions such as Cornwall and the Isles of Scilly

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has much to offer in terms of skills, knowhow, natural and physical infrastructure which

can be harnessed to ensure the UK continues to be a global leader of maritime nations. In order to take full advantage of the UKs diverse maritime experience and traditions it is crucial that no maritime region is discounted and that also smaller ports (and the related

diverse range of activities that these ports support) are strategically integrated into the UK’s future Maritime strategy. A future Maritime 2050 strategy should focus on how the business community, supported by the public sector, is involved and enabled to deliver a

sustainable and prosperous sector going forward. Another key issue is how the maritime sector contributes to society. Maritime activity,

whether it be container or cruise ships, needs to contribute to the maritime regions it relies on and to the natural resource it depends on whether this be through paying tax, creating good jobs and/or by playing its part in solving the climate change challenge or

tackling pollution of our oceans and coastlines.

Q8. What will our strategy need to contain to enable us to identify and address potential

and existing market failures effectively?

In order to address the current and potential weaknesses outlined about (Q7) the future

Maritime 2050 Strategy will need to have a clear focus on protecting and enhancing the quality and productivity of the oceans and coastlines that the sector depends on.

Similarly the future strategy will also need to outline how smaller ports are strategically integrated with the largest shipping ports in the UK with a view to ensure accessibility for

businesses across the UK and with a view to fostering a diverse range of maritime linked

economic activities that deliver local jobs and prosperity.

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Section 3 - Specific themes

In this call for evidence we identified the six themes of trade, technology, environment, infrastructure, skills and security. We see these as key drivers for a long term strategy for the maritime sector and build on its existing strengths.

Q9. Are these the right priorities to concentrate on as we develop the strategy? Are there

any specific aspects of these themes that you wish to see developed? If you were devising a

routemap to 2050 what steps would you take?

Overall we agree with the six themes suggested and would like to make the following comments to each of these themes:

Trade: Cornwall and the Isles of Scilly would like to see three important aspects developed as

part of the trade chapter of the strategy: Firstly, the strategy needs to support the ability of all parts of the UK to export and import

goods and services. Our businesses depend on good access to ports and trade routes. As outlined in Q7 and Q8 we view it as essential that the future Maritime 2050 strategy focuses on how smaller ports are strategically linked in to the largest ports as well as

how port infrastructure is linked to the UKs wider transport policy.

Secondly, the Maritime strategy should focus on how to promote and support the diverse range of maritime economic activities which are important in their own right. In Q2 we have in detail outlined the diverse range of current and future activity that the maritime sector encompasses in Cornwall and the Isles of Scilly which ranges the industries of ship repair and boatbuilding to sailing; the import and export value of our many ports and harbours; or gig racing, surfing or fishing to marine renewable energy. Our marine sector depends on a healthy and diverse marine environment.

Finally, as already outlined under Q7 the strategy needs to reflect on the implications of Brexit on future access to European and international markets for UK business

Environment: We strongly welcome the theme focusing on the environment. As outlined in Q4 we believe that it is crucial that the strategy recognises the importance of the natural resource that all maritime activities are dependent on. The strategy should include efforts to protect and increase the quality and productivity of the oceans and our coastlines. In Cornwall and the Isles of Scilly communities and social enterprises such as Surfers against Sewage have taken a lead in tackling plastic pollution of the seas and coastlines. The future strategy should support and encourage such community based responses to environmental challenges and enable strategies for inter/national action against the use of plastics.

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The strategy should also address the massive challenge that is posed by climate change. Following the damage to local infrastructure caused by winter storms in 2013 and 2014 an analysis11 was developed to assess the implications for Cornwall. This evidence (see link) gives an insight into the local challenge and may be helpful in terms of what should be included in the UK Maritime strategy.

Developing new technologies including renewable energy offers potential solutions to some of the environmental issues mentioned above. We would like to see the strategy include a focus on renewable technologies such as off-shore wind and wave energy.

Technology: As outlined in Q2 (section h) the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP) has identified the marine sector as one of 10 opportunities in Cornwall and the Isles of Scilly to drive business growth and help transform the UK economy. As part of the South Coast Marine Cluster, our industry has access to a huge network of marine companies and institutions. By developing new technology, identifying investment opportunities and focusing on global exports, we can bolster Cornwall and the Isles of Scilly’s position at the forefront of the UK’s marine-tech and offshore energy industry. We see marine renewables – off-shore wind, wave & tidal – as an integral component of the maritime sector. The off-shore wind, wave & tidal sectors require key maritime sector inputs: maritime RD&I; shipyard and marine engineering; development of support shipping; ports and logistic support infrastructure; maritime people and skills; maritime finance. Cornwall is – with Scotland – one of the UK’s, and thus the world’s, leading marine renewables regions, in all of these areas. By way of example: tidal energy – Cornish companies have been involved in the installation of 15 of the world’s 20 or so commercial tidal turbines; wave energy – Cornish companies are working with the majority of the world’s leading wave energy companies, supported by key RD&I infrastructure, such as WaveHub and FabTest. We would therefore like to see a strong focus in the Maritime 2050 Strategy on future support and facilitation of maritime technology clusters.

Infrastructure: As outlined in Q7 and Q8 Cornwall Council view it as essential that the future Maritime

2050 strategy focuses on how smaller ports are strategically linked in to the largest ports

as well as the link to the UKs wider transport policy. The future strategy should resist the tendency to concentrate maritime policy on the biggest ports and busiest shipping lanes. While this concentration of activity has delivered economies of scale for the largest

ports, it carries the risk of raising transportation cost for more peripheral maritime regions and stifling economic activity and opportunity in these regions. This has negative

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https://www.cornwall.gov.uk/media/10579670/Cornwall-Storm-Impacts-update-19-Nov-2014-V1-3.pdf

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implications not only for these peripheral maritime regions, but also for the maritime

sector as a whole. Traditional maritime regions such as Cornwall and the isles of Scilly have much to offer in terms of skills, knowhow, natural and physical infrastructure which can be harnessed to ensure the UK continues to be a global leader of maritime nations.

In order to take full advantage of the UKs diverse maritime experience and traditions it is crucial that no maritime region is discounted, and that also smaller ports and the related diverse range of activities that these ports support, are strategically integrated into the

UKs future Maritime strategy. Focus in the Maritime strategy should therefore be on maintaining, developing and

linking the UK’s diverse port infrastructure. Key issues in terms of infrastructure that are currently relevant to Cornwall and the Isles

of Scilly include: - The need for suitable business premises has been reported by businesses (26%

of the businesses surveyed through the 2017 research project led in collaboration between Exeter University, Cornwall Marine Network and Cornwall Council);

- With climate change, the risk of flooding will become more and more regular and flooding defences will be increasingly needed; When considering investment

costs the additional costs related to island based infrastructure (due to transport

costs building work on the Isles of Scilly tends to have a 45% premium on top of mainland costs) need to be taken into account;

- Dredging to guarantee long-term economic activity

People: As a region we already has strong foundations in training and education for maritime industries for example, in relation to navigation, skippering, and ship building - with key organisations such as the Cornwall Marine Network providing a strategic, resource and development focus. Future training demands will include the ongoing development of the tourism industry

and marine engineering. Additionally, initiatives focused on making Cornwall a centre of marine based renewables (e.g. the Marine business energy park at Hayle) will require new courses to be coordinated and promoted through the Combined Universities in Cornwall.

Cornwall and the Isels of Scilly would like to see the future Maritime 2050 strategy have

a focus on retaining and developing the current maritime skill base across the UK as well as fostering this skill base to transition into new emerging maritime activities such as autonomous vessel technology. The strategy should also focus on how to attract young

people to join the sector, building on the work undertaken by the Cornwall Marine Academy.

Security and resilience: Resilience of the UK Maritime sector is best ensured by harnessing the knowledge, skills and maritime infrastructure across all maritime regions of the UK. As outlined in Q7 and

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Q8 there is a risk involved in concentrating maritime policy on the biggest ports and

busiest shipping lanes. While this concentration of activity has delivered economies of scale for the largest ports, it carries the risk of raising transportation cost for more peripheral maritime regions and stifling economic activity and opportunity in these

regions. This has negative implications not only for these peripheral maritime regions, but also for the maritime sector as a whole. Traditional maritime regions such as Cornwall have much to offer in terms of skills, knowhow, natural and physical

infrastructure which can be harnessed to ensure the UK continues to be a global leader of maritime nations. In order to take full advantage of the UKs diverse maritime experience and traditions it is crucial that no maritime region is discounted and that also

smaller ports and the related diverse range of activities that these ports support are strategically integrated into the UKs future Maritime strategy.

Q10. Are there any other themes that should be included?

We support the six suggested themes as outlined above.

Q11. Do you have any evidence or analysis you wish to offer us in relation to the questions at the end of each theme in Chapter 3 of the Call for Evidence. Please reference the question for us, enter any views and provide additional evidence and comments in supplementary documents if necessary.

No, has already been covered in our answers to the questions above.

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Section 4 - The Strategy in Practice

These questions are necessarily open ended to allow you to add further thoughts or pick up on anything you think we may have missed or not fully addressed.

Q12. What top three (if any) additional practical factors should be taken into account when

developing the strategy?

As outlined above we believe that it is important to define the maritime sector as broadly as possible (see Q4). Furthermore, we believe that the strategy should build on the experience and contributions of all maritime regions in the UK and avoid a narrow focus on the biggest ports and busiest shipping lanes.

Q13. What top three suggestions do you have to help us ensure that we have the widest

range of evidence upon which to base the strategy given the overall timeframe?

Ensuring evidence is considered from academic appraisal

Enabling ONS to qualify the value and destination of maritime export

Transparent evaluation of coastal communities investment in terms of long term evaluation of output and role in helping to shape the Shared Prosperity Fund.

Q14. What top three (if any) additional issues that we have not covered would you like to

see included as part of the development/ input to the strategy?

As we have discussed elsewhere:

The cumulative impact of smaller ports and harbours and their positive impact on communities with accessibility challenges

The role of Further and Higher Education in evolving transferable skills

How practical Continuing Professional development (CPD) can support the industry without bureaucracy and impingement on productivity.