Agenda item

Rhannu’r newyddion diweddaraf ag Aelodau’r Pwyllgor.

The Service Director - Prosperity and Development took Members through the report on the support for the Manufacturing Business Sector in RCT, which outlined the range of support that had been planned and established in order to provide opportunities for growth and sustainability. The Manufacturing Sector included a broad range of business types involved in the production of a range of items. The latest Office of National Statistics (ONS) figures showed that in 2020 there were 9,000 people employed in manufacturing companies in RCT, which accounted for 11.7% of all employees and was slightly above the Welsh figure of 11.2%. Because of this, a range of co-ordinated support measures were planned and put in place to support manufacturing in RCT.

The Service Director – Prosperity and Development noted that section 4 of the report provided a summary of support measures for the manufacturing business sector and provided specific examples in respect of the former Coedely Colliery Site and Robertstown Business Park. He confirmed that the local authority also provided financial grant support to the Manufacturing Sector and paragraph 4.5.2 provided a good example of the support in place. The Service was also working with Welsh Government to roll out their Tech Valleys Productivity Enhancement Programme. In addition, the Council provided networking and signposting support by putting Companies in touch with the right people which meant it was important for the Council to have good relationships with support organisations such as Business in Focus, Business Wales, Welsh ICE, Welsh Government and the Cardiff Capital Region.  This also included signposting to other relevant Council services such as Planning, Licensing and Employment Support.  The Service also liaised with and supported Rhondda Cynon Taf Council Procurement colleagues in their work to help local SMEs to access Council and other contract and supply chain opportunities. In terms of Networking, the Treforest Growth Network was established in 2015, as a vehicle for business network opportunities, with companies based at Treforest Industrial Estate.

The Service Director – Prosperity and Development concluded that the manufacturing business sector continued to be a significant source of employment and income generation in Rhondda Cynon Taf, and provision of a co-ordinated range of support and finance provided by the Council and partner organisations, was important for businesses to take advantage of opportunities to grow, diversify and be more sustainable.

Following the update, Members were provided with the opportunity to ask questions.

Councillor Thomas welcomed the comprehensive report put forward and stated his particular focus was on how the Council would be able to act to incorporate where it would be in 10 years’ time, looking at changing to a green economy, for example, wind and solar, which would help to regenerate the economy, with manufacturing being an important part as well as a need to ensure the appropriate skills, premises etc were in place. In addition, there was the High-Tech sector, for example, Microchips and Semi-Conductors and supply chain opportunities. This leads to the supply chain, and previous companies such as GC Hitachi, Hoover and Panasonic, but noted these would not return into the valley areas but in terms of supply chain, there was no reason why the units available were not able to attract businesses to prepare for the future and asked if the Council was just reactive in terms of whoever came forward to apply to go into those businesses, noting the sites such as the Hirwaun Industrial Estate and former Tower Site.  In terms of mixing the economy, the Member had long put forward the desire to expand businesses on the model of worker ownership or co-operative and asked what could be done to encourage that sort of model in Rhondda Cynon Taf, referring to his previous question on the Treorchy Sewing Enterprise.

The Service Director – Prosperity and Development agreed that the carbon agenda was significant, noting that one of the key things the Council was looking at, was existing industrial estate stock, although much was in a poor state and would need significant funding to bring up to legislation. Although this was a real challenge, it was something being worked on with Welsh Government. In terms of Robertstown Business Park and what the market was saying there was a significant amount of need for starter units e.g., young businesses doing well but having outgrown their current premises and there was a long list of people who had expressed interest in the Robertstown units, so the demand was there. In terms of bigger sites, the Service Director – Prosperity and Development explained a lot was being done through the Cardiff Capital Region City Deal (CCRCD), including putting a prospectus together to show what RCT had to offer to potential developers, to attract inward investment, as well as direct enquiries to the Council.  In terms of supply chain this was extremely important, and a lot of what was done, particularly around the example of Treforest Industrial Estate, was how businesses were linked together locally. The Service Director – Prosperity and Development noted the example of the social housing grant schemes with the housing associations, where the majority were local contractors, so that money was being reinvested back into the Community.  In terms of the worker ownership point, the Service Director – Prosperity and Development explained that there hadn’t been a huge amount done around ownership models, but he would look into this, going forward, particularly around the Treorchy Sewing Enterprise.

Councillor Thomas thanked the Officer but noted that when he referred to the supply chain aspect, he was not thinking of interlinking companies in close proximity but thinking of the semiconductor plant in Newport and how the manufactured base product travelled around the world, to be finished. He asked why this couldn’t be done in the UK or Wales or in the Valleys, therefore providing that supply chain. He felt there was a big gap here and could be manufactured locally given the rights skills, premises and equipment.

The Service Director – Prosperity and Development agreed with the Member and said that with the pandemic and Brexit, there were a lot of those discussions going on about what could be produced in Wales and how could companies in Rhondda Cynon Taf step up to that challenge. He noted that because of the pandemic and Brexit a number of businesses had diversified e.g., Gwalia, but he recognised there were more businesses that could be supported to take up that opportunity.

The Chair referred to pages 30 and 31 of the report, in relation to paragraph 4.2.1 the former Coedely Colliery Site and paragraph 4.3.1, the Robertstown Business Park and asked if either of those developments would have taken place without European funding money and what scope was there for attracting funding at a similar level for future projects in the County Borough?

The Service Director – Prosperity and Development referred to the former Coedely Colliery Site and explained that as Members would be aware, it was reclaimed over 20 years ago. Welsh Government owned the site and had been marketing plots on the site and the Council was the first to build, through a joint venture with WG where the Council didn’t own the plot but had bid for European funding to be proactive and look at how that site could be developed. The idea being, that would be the impetus for further investment going into that site and that was starting to be seen. In terms of future funding for this, he noted the Shared Prosperity Fund, which was coming, although there wasn’t a huge amount of detail in terms of what that money could be spent on, although it would be split into capital and revenue funding, but Wales was expecting to have the same as what it had through EU funding. He hoped this would be available in the Summer. He also noted there were other funds available through the CCRCD that private developers could access, as well.

Following discussion, Members RESOLVED to note the update contained within the report.