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September 2010
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Archive for the Business Category

So this is where the money has been going!

I discovered an interesting fact today which shines a light on the way the Labour Government has wasted millions, whilst adding paperwork and red tape to the lives of so many of us.

The job of the Arts Council is simply to give away money.  When Labour came to power in 1997, it had 206 staff.  Now it has 765 staff.  That is a lot of extra wages and final salary pension schemes.  It is also a lot of extra paperwork for community arts groups to fill out to keep all these all busy.  I wonder how many small businesses in North East Cambridgeshire could allow their wage bill to balloon in such a way?

Is the dialogue between civil servants and local employers working?

Should civil servants be visiting local employers more to find practical ways to support them?  Has a view taken hold that written communication is the only way to interact?  I ask for three reasons.

Firstly I have just visited three locally businesses, two in the horticulture sector and one in recyling.  All three employ over 20 staff, and all have scope to take on more local workers.  So why are they not doing so? 

They explained what would help most, and their suggestions to me as a non-expert made good sense.  I asked who was talking to them about this.  The answer was no one.  No civil servant at local, county, regional or national government has ever visited any of the three businesses.  It seems odd to me that I can find time to visit local businesses when I have another job, but those who’s full time job it is to promote business cannot find time to do so.  These are all firms which are successful, locally owned and run, and with bright future prospects.

Recycling

To highlight what I mean, let’s take the recycling firm.  All political parties say they want to promote green jobs.  Recycling is a growth industry.  No firm in the UK can currently recycle butter, margarine or yoghurt cartons.  We have a plant here that could become the UK centre for this, creating extra jobs.  We also have local haulage firms returning to North East Cambridgeshire with empty lorries.  The capital cost for a new separater machine is £500,000.  Cartons also need to be washed, which would not be difficult.  My point is not whether a grant should cover all or part of this cost as I don’t know what is available, it is that no one is even having the conversation with the firm to find out.  Instead the firm is expected to fill out huge forms, which beget more questions and forms, and which past experience suggests is a waste of time.  As a result they do not bother as they have a business to run. 

When I raise such issues the stock answer tends to be either we have no money so can do nothing, or there is a grant for that type of business but they do not apply.  Visiting firms rather than sitting in the office does not cost money. It might help understand why the current approach is not working.  More might be learnt about a firm by seeing it, walking around it, and chatting with the staff on site. 

Brown Tourist Signs

Secondly, my campaign to get two tourist signs for two local firms is now 9 months old, and is frustrating to say the least.  Last time I spoke to the two sides was interesting (referring to them as two sides strikes me as odd as surely they should be on the same side!)  The county council officer for Highways said they had written to the firm a couple of months ago but had no reply.  I asked if, when there was no reply, they did not find it odd and follow this up?  Clearly not.  If the firm do not reply it seems the view is that is their problem and the end of the matter.  Why not pick up the phone?  When I did, I was told that what was being offered would be pointless as it was not in the right location, and so there was no point in filling out a form.  Again there was no discussion with the firm. Why is so much time and effort needed on what should be a straight forward to help local firms attract passing customers?

Apprenticeships

Thirdly, it seems apprenticeships and school placements are not working as they should.  Firms want to offer apprenticeships.  There is scope to develop careers, for example in horticulture, which whilst the initial salary is often very modest has the potential to triple over the course of a career.  Firms are keen to take on candidates for apprecenticeships who have the potential to go on and become future managers in years to come.  Often the grants offered relate only to the long term unemployed.  So the civil servants say grants are available, but the firms say the grants do not apply to the quality of candidates they are looking for.

There is also a current frustration with school work experience placements.  Schools have a two week window in term time to fill with a work placement.  The danger is that any placement will do to tick the box, rather than a placement which reflects the interest of the student.  As a result students often end up in placements which they have no interest in as a career, and which simply wastes the time of the firm concerned.

During my time in North East Cambridgeshire I have been struck by the talent running local firms.  We have forward looking entrepreneurs with a can do attitude.  With more support, they could deliver more jobs. 

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