ACSEF BOARD
ACSEF BOARD MINUTE OF MEETING
FRIDAY 26 JUNE 2015
Present:
Eddie Anderson
Andrew Booth
Colin Crosby
Claire Bruce
Robin Davies
Bill Duguid
Jeanette Forbes
Councillor Richard Thomson
John Harris
Councillor Jenny Laing
Professor Ferdinand von Prondzynski
Paul de Leeuw
Rob Wallen
Apologies:
Professor Sir Ian Diamond
Douglas Craig
Adrian Gillespie
John Michie
Carol Benzie
Chris Brodie
Danny Logue
Jim Savege
In attendance:
Stephen Archer
Robert Collier
Lucy Johnston
Angela Scott
Rita Stephen
Richard Sweetnam
Maggie McGinlay
Martin Barry
Susan Knowles
Aberdeenshire Council
Aberdeen & Grampian Chamber of Commerce
Aberdeenshire Council/ACSEF Comms Officer
Aberdeen City Council
ACSEF Development Manager
Aberdeen City Council
Scottish Enterprise
Scottish Enterprise/ACSEF Co-ordinator
Scottish Enterprise
Elaine Booth
Aileen Lamb
Belinda Miller
Area Tourism Partnership
Scottish Enterprise
Aberdeenshire Council
Action
1.
Welcome & Apologies
The Chairman thanked Aberdeenshire Council for hosting the meeting. He
welcomed Councillor Richard Thomson, Co-Leader of Aberdeenshire
Council to his first meeting. He also welcomed Elaine Booth, Manager,
Area Tourism Partnership, to present on the Strategic Review of Tourism in
Aberdeen City and Shire and Aileen Lamb, Tourism Manager, Scottish
Enterprise, joining for this and the Regional Food and Drink Strategy item.
Belinda Miller, Head of Economic Development at Aberdeenshire Council,
was also welcomed to present on the Regional Economic Strategy.
The apologies listed above were noted.
2.
Aberdeen City and Shire Strategic Tourism Review
Claire Bruce introduced the presentation on the Aberdeen City and Shire
Strategic Tourism Review. She referred to commencement of the work in
2012 which brought together stakeholders, sector and business leaders
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across the region culminating in development of the Strategy by the Area
Tourism Partnership and its launch in 2013. The Strategy is aligned to the
National Tourism Strategy, “The future of the industry in our hands –
Tourism Scotland 2020” which aims to grow visitor spend to £5.5bn - £6.5bn
over this period.
A detailed action plan is being produced to deliver the Strategy through a
partnership approach and communication with the industry, Joint projects
over the last two years are testimony to the success of the partnership
approach.
Following approval by ACSEF, Blue Sail were appointed to undertake a
strategic review of the opportunities and organisational support structures
for the visitor economy in Aberdeen City and Shire which has involved a
wide consultation process. Competition is worldwide and a very clear focus
is required. The brief from the ACSEF Management Team and Board was
to consider how the Partnership could be sustainable in the long term. There
is a need to build traction, celebrate achievements, define the overall
ambition for the future for the next five/ten years and how this will be
delivered. A strong shared vision and identifying new funding streams from
industry will be key.
Elaine Booth presented Blue Sail’s findings and recommendations. She
highlighted visitor expenditure figures for Scotland versus the region, which
show an increase for the latter of 19% from £340m to £405m between 2011
and 2013. The downturn in Oil and Gas has had an impact on visitor
expenditure and hotel occupancy rates and this requires a different form of
thinking and avoidance of complacency. However performance remains
strong and there are high levels of satisfaction with the rural offering. There
has been good progress towards strategic alignment, with the Area Tourism
Partnership’s work with existing businesses and stakeholders held in high
regard. Principal challenges are the fragmented nature of the sector – its
offering, structures, support and businesses, together with the image and
awareness of the area. The Destination Management Organisation focus on
industry engagement in the shire, dominance of non-discretionary business
in the city and seasonality in the Shire are additional challenges. A SWOT
analysis concluded that there is a need for focus to make best use of
resources and create the biggest impact and an appetite for one tourism
organisation whilst preserving the identity of the existing DMOs Destination Management Organisations (Deeside and Banff) and
Destination Marketing Organisation (VisitAberdeen).
The proposed strategic approach is for greater ambition, big impact
projects, investing in building image and awareness, defining propositions
for the area, marketing, product and people development and leveraging
connections. The focus for the leisure and business tourism approaches
was outlined.
As regards organisation, the recommendation is for a single tourism
organisation (the working title for which is Aberdeen and Aberdeenshire
Tourism Company - AATC) with aligned objectives and consolidated
resources. There are some concerns, namely loss of local identity,
business reluctance to engage with a ‘distant’ body, what the propositions
will be and funding and sustainability.
The remit of the AATC will be dependent on how much funding it obtains
and activities of the four existing organisations will be reviewed and pulled
together. Comparators have been examined which indicate that all DMOs
require public funding, overseas DMOs have been effective in raising
commercial income and UK DMOs have developed commercial services
when faced with a downturn in public funding. The analysis has also
revealed that £2m/annum is required to make a difference.
Engagement to seek support for the AATC has been underway with
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partners throughout the process and discussion is underway with Scottish
Enterprise regarding support for a three year programme of business
development, innovation and digital services and expansion in international
markets. It is proposed that local authority responsibilities and resources
would be transferred to the AATC but that the authorities would continue to
have a role in, for example, place management.
The minimum level of revenue for effective operation is £1m/annum but
would be a standstill position, based on having no new funding sources.
The ATCC will require to diversify its revenue streams, which will include
seeking contributions from business. A Tourism BID (Business
Improvement District) had been in preliminary stages of consideration but
has been deferred given the challenges in the Oil and Gas industry. Strong
public funding support is seen as vital, particularly in the early years of
operation.
There has been considerable support for creation of a new organisation;
this would be built on a re-modelled VisitAberdeen, with a new name, new
board, public sector representation and private sector leadership and ethos.
It is intended to have a business and financial plan prepared by the end of
2015, with the new body operational by April 2016. The proposals have
been presented to the DMOs, who have been fully involved throughout.
Aileen Lamb advised that Scottish Enterprise had been very much part of
the process, drawing on its experience of working with a range of tourism
destinations across Scotland. Positive elements are the strong alignment
with the national strategy, contributions and buy-in from the business
community to work together and understanding the funding challenges,
whether public or private. There is a real desire for the industry to take the
lead in the region, an approach very much encouraged by Scottish
Enterprise and opportunity to present a cohesive picture to the customer,
with one organisation speaking – more effective - for the whole area.
Comments were invited from the Board with the following points raised.
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£2M /annum was considered a modest target and it was queried
whether this was sufficiently ambitious to make a significant step
change. It was suggested that a commercial plan also be prepared
alongside the business and finance plans and that a target of £5m be
aimed for.
The considerable amount of work to-date was recognised however
given that it is currently still a proposal there was concern regarding the
tight timeline for preparation of a business and finance plan by the end
of 2015, particularly should challenging questions arise. It was
questioned how pace could be brought to the process particularly given
the collaborative approach.
The simplification from the customer perspective was welcomed.
Reference was made to the rise in visitor numbers in the area compared
to the rest of Scotland. It was noted this is in part attributed to good
work being done collectively by the DMOs and the rise of VisitAberdeen,
their successful marketing of events and close working with the Airport
to attract more European visitors. These successes could be built on in
the future.
It was queried whether consultation takes place with the Councils
regarding the area’s hotel accommodation requirements. It was noted
that Scottish Enterprise has recently undertaken work looking at the
accommodation sector and the area’s future requirements, however
grading decisions for any new build hotels are up to the individual
developers. Scottish Enterprise’s international team is in dialogue with
potential investors regarding attracting hotel investors and this work will
help understand the area’s requirements for the medium/long term.
Where success can be achieved is by taking a joined up approach with
Scottish Enterprise’s international arm bringing in investors and local
authorities working with the team to give a clear understanding of the
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area’s hotel requirements. Delivery of the strategy necessitates having
the correct hotel provision and having one organisation at the hub is a
means of helping achieve this.
Clarification was sought on what a Tourism BID would entail and noted
that these are flexible structures, with income derived from local
authority rates. Consideration requires to be given to how a BID might
be developed, drawing on the experiences of the Inverness and its
surrounding area Tourism BID.
Noted that visitors make decisions on the basis of destination websites
and assurance given that digital considerations are very much at the
forefront of VisitAberdeen’s activities, and the same would apply for the
AATC.
Most visitors coming to Scotland wish to visit Edinburgh and then travel
the A9 route to Inverness however there is a need to encourage more
spend in Aberdeenshire. The area cannot be considered in isolation
and one aim of the strategy is to link in Aberdeenshire’s inland and
coastal offering (attracting those travelling up from the south and up the
A9 towards Inverness).
The very significant potential of the region’s cultural offering appears to
be underplayed - it was advised that the marketing and business plan
will identify the focus, with cultural aspects a prominent element.
There is potential to attract the Scottish Open and opportunities for other
big events, all of which require strong promotion. The cruise ship market
also offers potential opportunities
Scottish Enterprise, the industry, VisitScotland and the DMOs are supportive
of the way forward. The Board endorsed the proposal for a single, enhanced
organisation and the full support of the respective Councils will also be
sought.
The Chairman advised that he also chaired VisitAberdeen and therefore had
a commonality of interest.
3.
Regional Food and Drink Strategy
Andrew Booth introduced the update on the development of a North East of
Scotland Food and Drink Strategy. This is fully aligned to Scotland Food
and Drink’s national strategy but also reflects regional requirements. In
developing the strategy, consultation has taken place with a wide range of
stakeholders, including those not previously closely involved such as land
based organisations, and also with the Tourism sector. The Grampian Food
Forum is fully supportive of the regional strategy.
Belinda Miller reminded the Board of the importance of the Food and Drink
sector, with 22,000 jobs in the north east related to the industry. It
contributes 17% to the industry’s GVA in Scotland, a disproportionately
large contribution. The area has a large number of dominant brands and
also unbranded products and the sector is highly respected in its own right
and by the consumer.
The strategy’s vision is to have a progressive, vibrant and innovative
industry that works together across the supply chain to pool resources and
knowledge to achieve long-term sustainable growth.
Discussion with the Grampian Food Forum to determine what could make a
difference identified the following potential opportunities to grow and
develop the sector:
 Expand the non local markets (overseas exports and non local market).
 Engage more with the research base and biotech industry to ensure
innovative opportunities are fully explored and developed.
 Exploit regional spending power, encouraging organisations to buy local.
 A collaborative approach will be taken to implement the Strategy including
working with the Tourism sector to develop opportunities. In line with
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Scotland Food and Drink’s projected turnover targets, turnover for the
sector in the north east is expected to reach £2.5bn by 2020.
Grampian Food Forum wish to continue in the lead and therefore will form
the Strategy Leadership Group for the North East Food and Drink strategy,
which will include Moray. Andrew Booth will chair this group which will meet
twice yearly. Action groups will be formed to focus on the three local
priorities identified. The Forum is held in high regard and has become an
exemplar for setting up of other Food Forums in Scotland. Its ongoing work
such as learning journeys will therefore continue.
It was suggested that the Strategy could make greater reference to the
international focus and define the anticipated breakdown between the
international versus UK and Scotland targets. It was noted that the intention
is to focus both on nurturing local business not currently able to export and
working with large companies.
Reference was made to the University of Aberdeen’s renowned Rowett
Research Institute of Nutrition and Health and Robert Gordon University’s
strengths in areas such as nutrition and obesity and the need to include
Food and Drink innovation within the innovation element of the City Deal
bid. Andrew Booth advised that he and Rita Stephen were in discussion on
taking this forward drawing on outputs from the consultation workshops.
Andrew advised that discussion is also underway with the universities on
areas such as packaging and branding.
The Board endorsed the strategy proposals and proposed next steps, with
particular emphasis on ensuring close linkages as regards innovation.
4.
Regional Economic Strategy
Richard Sweetnam updated the Board on progress towards development of
a regional economic strategy, which would bring skills and sectoral
strategies together into one document. Preparation of the strategy is a
response to a need to articulate the economic story of the north east
externally, principally to government and other potential funders. The
regional strategy does not currently contain future long term scenario
planning, baselines and quantitative modelling and addressing this gap will
be the focus over the summer. The strategy requires to be bold and long
term and, importantly, to reflect new thinking particularly the Scottish
Government’s new Economic Strategy and its ambition to achieve inclusive
economic growth. There is a need to articulate the economic story of the
North East to Scottish Government and other funders. The visionary
strategy is being developed collaboratively by the City and Shire Councils,
Scottish Enterprise and Aberdeen and Grampian Chamber of Commerce,
with research work to be led by the Chamber. Feedback on the City
Region Deal process indicates the need to include future scenarios. The
importance of having the business community involved when considering
long term scenarios was stressed, and the Chamber’s involvement
welcomed.
The draft ACSEF strategy, presented to the April Board meeting, sets the
corporate strategy for the partnership (its objectives and roles) and will
inform drafting of the regional economic strategy. Both will therefore be very
much aligned. The strategy will be presented to City Council members in
October and taken to the ACSEF Board in September/October.
5.
ACSEF Strategy and Operational Review
Angela Scott referred to the updated ACSEF strategy document, which
takes account of comments received at the April Board meeting. A copy
had been provided to the Board and areas in which progress has been
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R Sweetnam
made highlighted. Sectoral work plans will be refreshed in the strategy and
the City Region Deal proposals are being progressed.
With one public affairs contract in place to develop and deliver a public
affairs strategy for ACSEF, Board members’ involvement will be required.
This work will also help identify areas where Board champions are required.
The intention is to have an economic strategy for the region underpinned by
an economic dashboard which would be regularly presented to the Board.
The strategy would contain sector targets and metrics and the public affairs
strategy provide support for the priority areas.
6.
Energetica
Ferdinand von Prondzynski presented an update to the Board on the
proposed future direction of Energetica. The ACSEF project, funded
primarily by Scottish Enterprise and also by the Councils has had several
iterations since its inception. The original proposal had been for a high
value foreign direct investment entrepreneurial concept around Energy
however this focus has not been very actively pursued, with the main focus
to date being on leisure and planning related aspects.
The four strategic objectives which inform the current delivery framework for
Energetica are: to consolidate the region’s position as Europe’s energy
capital; attract new, high-value investment and people to the region; grow
the international trade of indigenous business, and maximise the quality of
design/development and quality of life. These are underpinned by
workstreams covering strategic management, place and project marketing
and communications, investment support services and key industry
projects. The majority of the action orientated work has centred on the
second of these workstreams.
The Energetica Steering Group has been chaired by Ferdinand since
January 2015, with all key partners, including Scottish Enterprise and both
Councils, members of the Group. Full time dedicated staff resource is now
in place. An updated strategic delivery framework is being progressed
encompassing high level ambitions and priorities and the City Region
Deal. The profile of Energtica will be raised, particularly to the private sector
to make them aware of the concept and its potential. Ferdinand advised
that he had been involved with Sir Ian Diamond in development of the
proposal for innovation around the City Region Deal, and this element is of
particular relevance to Energetica. A number of initiatives are underway
within the marketing and communications workstream.
The Steering Group has been considering how to develop the concept of
Energetica and once the process is complete a detailed strategy will be
taken to the Board, potentially in the autumn. Work in progress involves
considering whether the Steering Group should have an advisory or
decision making role - assessing the potential of Energetica as an
innovation hub and making the case for Energetica as the preferred
innovation project location for the City Region Deal, and considering its
potential to attract foreign direct investment and indigenous start-ups
particularly those relevant to Energy, and with a strong focus on Oil and
Gas.
The goal of attracting foreign direct investment was welcomed but queried
what the preferential offering to attract companies to the Energetica location.
Ferdinand advised that it was important to present potential investors with a
concept linked to location, one element of this being clustering which a
focus on Energy, R&D and renewables and linkages between these could
create. Whilst fiscal incentives could not be offered, once a clear concept is
developed an approach could be made to Government to determine if
benefits are attainable. As regards potential to attract an anchor tenant,
companies are seeking a critical mass. Consideration is also being given to
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companies who may be interested in having a European location for R&D.
While re-emphasising the commercial elements of Energetica, the lifestyle
and leisure offering will remain a key part of the incentivisation.
It was queried how plans to develop Energetica as an innovation hub would
compliment proposals of a similar nature at the Torry waterfront. Ferdinand
advised that a remit would be circulated to the Board and any decision
would require the support of the Councils and Scottish Enterprise. It is
important to have a clear framework of governance with Terms of Reference
and the Board would work closely with its stakeholders all of whom would be
represented on the Board. In addition to representation from the Councils,
Chamber of Commerce and Scottish Enterprise, a private sector member of
the Board member would also be invited to join the Board.
F von Prondzynski
Energetica has the opportunity to be an exemplar in low carbon
technologies, for example in terms of buildings. Funding is available for low
carbon projects via the low carbon infrastructure fund however propositions
would require to be presented appropriately.
7.
Board Champions Update
Transport
As a member of Aberdeen Airport Consultative Committee, Eddie Anderson
gave an update on the Airport’s activity. Passenger numbers decreased by
8% and helicopter traffic by 14% year on year. The new owners of the
Airport have approved development plans which will enhance retail
opportunities.
Oil and Gas Innovation Centre (OGIC)
Paul de Leeuw advised of progress in the OGIC since it became operational
10 months ago. The Centre is currently interacting with 50 companies,
working closely with Scottish Enterprise and the Universities. Eighteen
projects are in discussion with some currently being executed. Discussions
are at an early stage regarding the possibility of a large scale technology
centre(s) developed for the Oil and Gas industry to maintain the area as a
top innovation region. A feasibility study has been undertaken and the
project would form part of the City Deal proposal. The project would require
extensive collaboration between stakeholders. The Chairman advised that
support from the business community would be vital.
Ports and Harbours
Stephen Archer advised that land and roads considerations were being
pursued to bring forward the Aberdeen Harbour project as timeously as
possible. It was noted that funding will be more challenging given the
downturn in Oil and Gas. The project is a significant part of the City Region
Deal. Progress on infrastructure was queried, particularly in relation to
roads and rail elements and status of studies commissioned in relation to
this. Angela Scott advised that the totality of infrastructure was being
considered and an update would be provided on the City Council’s activity
with respect to the Harbour at the next Board meeting.
A Scott
The deepening and widening work at Fraserburgh harbour has been
completed. An onshore electricity project has been delayed and will now
commence in three weeks’ time. Peterhead Harbour Board will be
submitting a bid for an EU funding stream which comes forward in
September. It would be helpful for ACSEF to write in support of this at the
appropriate time.
ACSEF Management
Team
Housing
Stephen Archer informed the Board that an offer to present a joint paper to
the Scottish Government and leading financiers regarding the area’s
housing challenges was being followed up. Progress has been made on
increasing the availability of mid market rental and key worker housing in the
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City and Shire, with a national housing variant model now in place.
Discussions are underway regarding ‘pop up’ housing for key workers while
they seek more permanent accommodation.
Skills
Rob Wallen advised that work is in progress on the regional skills strategy
as previously advised to the Board.
Bill Duguid
Nothing to report – Angela has covered.
Oil and Gas
Rob Davies reported on key messages from the Oil and Gas UK
Conference, one of which was around how to be competitive at 60$/barrel.
A number of cost reduction and efficiency initiatives are underway in the
industry. There is considerable activity in the Mariner and Clair fields. It is
foreseen that 2016/17 will be very challenging for the industry.
Digital
Jeanette Blakeman advised that clarity is required regarding digital
connectivity work underway in the city, including which organisation is
undertaking the fibre provision. Angela Scott advised that she would
arrange for Jeanette to link up with Gordon Wright and Rita Stephen from
the City Council and counterparts in Aberdeenshire Council on this.
Jeanette also advised that proposals for a Digital Skills Academy and
potential locations for this had been discussed at a recent meeting of the
Digital Scotland Business Excellence Partnership Board of which she is a
member. Aberdeen had not been included in mention of potential locations
and this omission will be investigated.
8.
Note of Previous Meetings & Matters Arising
The Minutes of the ACSEF Board meetings of 22 April and 26 May were
approved, and matters arising deemed dealt with.
9.
ACSEF Management Team Activity & Operations Report
Angela Scott advised that good progress is being made, and there were no
additional items to raise.
10.
External Communications from Board Meeting
Caledonia Public Affairs have been appointed for 12 months to undertake
ACSEF’s external communications. Caledonia had been appointed as a
single supplier in order to move forward at pace. Initial meetings have been
held with the partners and a plan of initial engagement will be developed
together with a lobbing event arranged prior to the next election period. The
scope of the contract will be shared with the Board, and a workplan and
timeframe for reporting to the Board developed. Board member
engagement will also be sought.
Clarifying the purpose of the City Region Deal, its current status and
timeline of activity over the next six/nine months requires to be a key focus
of the external communications activity.
11.
AOB
11.1
ACSEF Private Sector Dinner
The Chairman provided feedback from the ACSEF private sector dinner of
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A Scott
A Scott
25 June. There is huge support for the City Region Deal and it was
requested that this be project managed appropriately, and that any
assistance required be advised to ACSEF. It was suggested that the
Chamber of Commerce could assist in pulling together the support of the
business community over the long term as part of the private sector input to
the City Deal. Key thoughts arising from the private sector on
transformational projects were around digital, tourism (particularly cruise
ship opportunities), a technology institute, a science museum (possibly
linked to a national museum), big data and a food and drink incubator to
encourage innovation. A pace to delivery of the public affairs contract is
required.
11.2
Review of Recent Activity
The Chairman highlighted that much had been achieved, highlighting the
following:
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Tourism and Food and Drink strategies developed.
Refresh of the ACSEF Board.
Refresh of Energetica and establishment of a new Board.
City Region Deal framework prepared.
Masterplan for the city given cross party support.
Good progress made as regards public affairs activity.
Going forward, the ACSEF agenda requires to be refreshed to include the
emerging ‘blue sky’ thinking, particularly relating to innovation, technology
and digital. Ensuring the Life Sciences sector continues to progress will
also be important.
12.
Date of Next Meetings
Formal Meeting of the Board – 29 September, 9.30 – 12.30,
Aberdeenshire Council, Woodhill House, Aberdeen
Informal Meeting of the Board – 29 October, 9.30 – 11.30,
Aberdeenshire Council, Woodhill House, Aberdeen
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ACSEF Management
Team