Tuesday, March 12, 2013

Joined-up approach is needed

THE launch a third round of funding for regional growth was highlighted as an ongoing problem with a lot of government intervention process as eager for new opportunities to support growth in the private sector.

It is equal to the core business of credit in the North East and Partnership Local Companies in the area that has attracted a significant proportion of recent successful bid to the Regional Growth Fun (RGF).

It does not provide some optimism that the North East will benefit from some growth in priority sectors, associated with low carbon manufacturing and engineering.

Remain concerns about the administrative processes related to RGF, about 40% of the successful bidder one round still not progressed to the operational phase.

There are some fairly chronic issue here. Offshore wind as a specific example. While NaREC continue to grow as a global leader in the research and development sector, is a risk that the development of industry and the wider economy can not keep up with the industry.

As well as excellent test equipment, construction industry also requires a skilled workforce and a lot of ground - both available in limited quantities in the region.

'New' localist landscape suited to a more market-based approach to bottom-up economic development.

No more regional economic strategy - or a national industrial strategy - that helped shape and inform investment plans and processes, both public and private sectors.

While governments argue that it provides a more stable business dynamics, it also increases the risk that the market will find a solution to other industries, other investment opportunities to take a different path to profits faster, be.

The offshore wind industry continues to be new, as there are inherent risks that pose real obstacles to private sector investment potential. Investment, in equipment such NaREC, can help to de-risk early development and encourage private sector participants in the region.

It is important, however, that the competing public policy, the program encourages development RGF priority sectors and skills investment, transport infrastructure spending and energy policy all align to complement each other for what the A once-in-a-couple holding a chance to build a new industrial economic base in the North East.

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