Brian MacDonald Assistant Chief Executive North Ayrshire Council

The Local Authority led Model: Dealing with Decline in Ayrshire Or why we kiss frogs

North Ayrshire Issues ContextContext Current ExamplesCurrent Examples –Failures –Work in Progress –Success Economic ForumEconomic Forum

A Different Country “The highest rate of unemployment 9.4% is North Ayrshire … It makes the City of Aberdeen a different country. Unemployment there is down to just 1.7%, the City of Edinburgh is just 2.3%.” August , The Scotsman

A Different Country Claimant Unemployment (September 2001) North Ayrshire has highest overall unemployment rate of 54 Travel to Work Areas in Scotland Current difference is 3.9 percentage points (7.9% compared to 4.0%). In 1997 North Ayrshire was 1.5 times the Scottish rate. North Ayrshire rate is now double the Scottish rate. 2,500

Population Catchment Drivetime30Mins45Mins Ayrshire308,700351,500 Non Ayrshire 50,0001,549,300 Population % 83%95%

Travel Times 2 Hours

Current examples Failure

Success

North Ayrshire Ventures Background & Rationale Above average unemploymentAbove average unemployment Market failureMarket failure Social exclusionSocial exclusion Access to employmentAccess to employment Town Centre issuesTown Centre issues Do something!Do something! Use the assets of the areaUse the assets of the area –transport infrastructure particularly, public –available labour force –town centre sites –little competition –access to Glasgow

North Ayrshire Council North Ayrshire Ventures Trust The EDI Group North Ayrshire Ventures Trust Project C Kyleshill Project B

North Ayrshire Ventures Key Principles 50 / 50 Partnership Public Sector Assets - Private Sector Capital Expertise in different areas Shared fundamental beliefs Completely open book

North Ayrshire Ventures Funding Package Kyleshill Call Centre Council Assets£240,000 EDI Capital£240,000 ERDF Funding£508,000 Bank Borrowings£900,000

North Ayrshire Ventures Key Issues Long Term PartnershipLong Term Partnership Credibility for both partiesCredibility for both parties Pay back for both partiesPay back for both parties –Tackling real problems –Providing Jobs –Proving the model –Appropriate Profit- shared with NAV Trust