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Plymouth City Development Company

06 August 2010

The Board of Plymouth City Development Company (PCDC) today (Friday August 6) held a meeting to discuss the future funding arrangements for PCDC.

The meeting was held within the context of the significant changes proposed to arrangements for the delivery of economic growth and regeneration and the reduction proposed for public sector budgets.

Of particular relevance for PCDC is that, of its three funding partners, Plymouth City Council and the Homes and Communities Agency (HCA) face significant budget constraints, in line with Government policies, and the South West RDA is due to be abolished by March 2012.

Given the difficult spending decisions which will need to be taken across the public sector nationally the Board was informed that there was no realistic prospect of further public sector funding for PCDC from the HCA and the RDA, beyond the initial three-year commitment from the funding partners up to March 2011. Despite some support being offered by the private sector, there was no realistic prospect of sufficient funding being generated to meet this gap.

In view of this, the Board reluctantly took the decision that the Company would be unable to continue to operate into the new financial year and that the process should begin to wind up the PCDC at the earliest opportunity. It is expected that PCDC will cease trading shortly.

PCDC chairman James Brent said: “PCDC was tasked with a significant challenge when it was formed to take the lead on economic growth and regeneration for Plymouth. It was a challenge we accepted with enthusiasm and I know that the Board, the PCDC team and our funding partners have been united by a passion to bring improvements to Plymouth for the benefit of all those who live, work and visit here.

“Achieving this sort of step change for Plymouth’s economy was always going to be a long term project. So it is very disappointing to have to bring PCDC’s work to a close after a period of less than three years, which unfortunately also coincided with some of the most difficult economic conditions in living memory.

“The positives are that significant groundwork has been put in, partnerships built and progress made in several areas of PCDC’s activity. This includes the development of regeneration plans, work with the creative and other sectors of the economy, the Digital Plymouth project, various inward investment projects and the development and roll-out of the city’s new brand identity. We will work with our partners to ensure that the benefits of these projects are maintained and taken forward.

“At a time of uncertainty, there are three points on which I have absolutely no doubt. First the need to drive economic development in the city is at least as important now as it was when the PCDC was formed. Second, the city has got the ingredients necessary to achieve a material improvement in its economic performance. Third, this improvement will only be achieved through genuine partnership between the public and private sectors.

“I thank my colleagues at the PCDC, my fellow Board members and the PCDC's partners for all the efforts which they have all made to make Plymouth an even better city.”

Plymouth City Council Chief Executive Barry Keel said: “We remain fully committed to working in partnership with the private sector, however, in the current climate we have to be realistic about what the private sector is likely to fund and what the public sector will be able to fund. We have restructured the Development Department of the Council to deliver on the growth agenda. We will do all we can to continue this even in the harsh economic climate that we face. We are also working closely with partners in exploring the potential benefits from the establishment of a Local Enterprise Partnership.

“We would like to thank the funding partners, the staff and everyone who has been involved in the CDC for what has been delivered.”

Ian Thompson, Devon Area Director for the South West RDA, said: "It is disappointing that the PCDC Board has had to take this decision today but there has clearly been a great deal of change in the arrangements for delivering regeneration and economic growth in our region since the PCDC was first envisaged, not least the decision to close the South West RDA.

"There are a number of good projects already under way in Plymouth which have been led by the PCDC team and we are keen to help the city put in place the new arrangements necessary to build on these foundations and continue this work."

Colin Molton, HCA director with responsibility for investment in the South West, said: “The HCA remains absolutely committed to working with local partners to support important projects which bring economic benefits to the area.

“This is demonstrated by our continuing short term support for PCDC, at a time of reduced resources to invest in projects.

“Despite this decision, our investment in the City of Plymouth continues to be significant and I look forward to continuing to work with partners to help drive forward the economic and social regeneration of the city in the years ahead.”

James Brent concluded by saying: “Despite having to take this difficult decision today, the Board were very clear that there are still some great opportunities in Plymouth, that the city remains open for business and there is every reason for Plymouth to be positive about its future.”

ENDS

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