Your Business Bulletin from Thanet & East Kent Chamber

 

Thanet & East Kent Insider

 

9^th January 2012     Issue No.: 177

 

This edition of the Thanet & East Insider, see also pdf version attached, consists of a Thanet Business Report which looks back in detail at the past trading year and reflects on the opportunities for 2012. Chamber members will share our delight at the announcement in the New Year’s Honours List of the award of a knighthood to Roger Gale MP, who among his many distinctions is Co-President of this Chamber. Roger has provided invaluable support to local businesses which has been much appreciated by Chamber members, regardless of their political affiliations. Our next Business Networking Breakfast will be on Friday 27 ^th January at 0730 hrs when the main speaker will be the Managing Director of Manston Airport. Details to follow. I would like to thank our Chamber Chairman, Dr Bill Moses MBE, our Co-Presidents Laura Sandys MP and Sir Roger Gale MP, our board of directors and of course our Chamber members for keeping us informed and fully involved in East Kent business throughout the year.

 

Thanet Business Report

 

1. Employment Indicators

 

The employment indicators relating to Thanet continue to give rise to concern. The latest figures show Thanet as registering the highest unemployment rate in Kent with 5.8% of the workforce claiming Jobseekers Allowance and National Insurance Credit. This equates to 4,614 unemployed, an increase of 14.7% since the same time last year. Most worrying of all is that unemployment among 18 to 24 year olds is listed at 13.7%, the highest in the South East. There are large differences across East Kent, for instance youth unemployment in the Canterbury District is just 3.2%.

[NOMIS December 2011].

 

2. Other Economic Indicators

 

The median gross weekly pay for full-time workers resident in Thanet in December 2011 is £412.50. The median gross weekly pay calculated on the basis of those who work in the district is £392.10. These figures compare with Dover £510.40/£495.80, Canterbury £560.20/£512.40, Shepway £490.90/£461.90  Kent £546.20/£489.20 and the South East £554.40/£528.20. Thanet has the lowest weekly wage costs in Kent and the second lowest in the South East. [ ASHE/ONS Dec 2011]. Of the 4,090 registered companies in Thanet [UKBS Feb 2011], 90.6% have fewer than 20 workers. Companies with 20-49 workers constitute exactly 6% of the workforce. Those with 50-249 workers account for 3.2% of employees. Just 0.2% of companies have between 250 and 499 workers and there are no companies employing more than 500 people. [UKBS PAYE / VAT Feb 2011]. The Chamber is concerned that figures relating to the period to 2009 show that just 39% of new companies survived five years in contrast to 53% in Ashford.  [ONS 2004-2009, KCC Feb 2011] Of course, companies may close or cease operations for manifestly benign reasons, but astute investors take into account the publicly available data when deciding where to spend their money and a favourable business environment is clearly a factor. The Chamber is addressing directly the challenges faced by start-up companies and established firms looking to expand with a range of measures including the free Business Advice Clinics launched last April, which have already welcomed over 70 current and potential business owners; see “15. Some Solutions” below.

 

3. Pfizer & Business Rates

 

The phased closure of Pfizer with the loss of at least 1,500 jobs has impacted severely on the East Kent coastal business community as executives and researchers with considerable spending power disappear from our shops, restaurants and estate agencies. The continuing malignant effects of the Rating (Empty Properties) Act 2007 have discouraged investment in commercial property as some owners have preferred to demolish buildings rather than pay full business rates when there is no rental income to sustain their investment.

 

4. Pubs

 

Pubs and breweries have traditionally been a significant element in our tourism economy but are increasingly under threat from cheap off-sales in supermarkets. The net rate of UK pub closures in the first six months of this year is 14 per week. [BBPA Summary of CGA Data including CGA Spreadsheets 2009 – H1 2011] Nationally, the Pubs and Breweries sector still accounts for 983,000 employees and £13 billion in wages. Despite the influence of the big chains, pubs tend to support a wide variety of local suppliers and provide important focal points in our community. [ Submission to National Policy Framework, BBPA, Oct 2011]. It is not surprising that much of the action in the television soap opera Coronation Street takes place in the Rovers Return. Fans of the BBC rival East Enders will know about the role of the Queen Victoria. Put simply, a well-run pub is often the focal point of community life. This Chamber acknowledges the community benefits of pubs and their important role in our urban and rural economy.

 

5. Public Sector Cuts

 

Public sector cuts have also reduced the spending power of local residents. Thanet District Council has just announced that it needs to cut £1.5 million from next year’s budget which will inevitably impact on staffing numbers and recruitment policy. Kent County Council must reduce its spending by £97 million for 2012/13 in a budget described by KCC Leader Cllr Paul Carter as: “a challenging budget in the most difficult financial times".   [Ed Hill, KoS Media, 20 December 2011]

 

6. Third Sector

 

Charities, social enterprises and voluntary groups are well represented in Thanet. In recent years, this third sector in our economy has been generously supported by Pfizer through payroll-giving, direct grants and the secondment of staff. We estimate that around £1 million will be withdrawn from charitable contributions through Pfizer’s staged withdrawal from its site in Sandwich. [ Pfizer and The East Kent Coastal Business Community, TEKC, 12 March 2011].The umbrella body, Thanet Voluntary & Community Sector Forum, has responded energetically to changes in its support network and continues to lead the way in Thanet through initiatives such as the Disability Hub events and a recently launched newsletter.

 

7. Thanet as a Business Location

 

Of course, low wage costs can attract some companies. The median gross weekly wages listed above show Thanet as having a relatively low cost base for salaries. Commercial rents are generally below those in neighbouring areas. The message may not yet have percolated through to the wider business community, as noted by the authoritative Locate in Kent which recently commissioned a study that divided Kent into four areas and found: “East Kent was once again the least favoured location with just over 4 in 10 stating that they favoured this area the least”. [ Perceptions of Kent as Business Location, Locate In Kent, August 2010]. Although the High Speed Link rail services launched in December 2010 do few favours for Margate businesses as links to the City are now slower and more expensive than before the arrival of HS1, firms located nearer to the main stations at Ramsgate, Sandwich, Broadstairs, Dover, Canterbury West and of course Ashford, now undoubtedly benefit from much improved journey times to London St Pancras. The Turner Effect detailed elsewhere in this report has also assisted in creating a more benign branding for Margate. As one property expert at The Property Tree in Margate put it recently: “We are seeing many more personalised number plates in Margate at the weekends”. Other s pecialists in finding commercial properties for purchase or rent in Thanet include Cooke & Co, Hemispheres Property Consultants, Holt & Wotton, MPG Properties and Terence Painter Properties.

 

8. Politics & Media

 

The Thanet & East Kent Chamber does not comment on political issues. Although both Chamber Co-Presidents Sir Roger Gale MP and Laura Sandys MP are Conservatives, we also enjoy warm relations with the newly elected Labour Leader of Thanet District Council, Cllr Clive Hart.  As we operate in close liaison with our sister Chamber, the Dover District Chamber of Commerce, we do feel able to comment on issues that concern the East Kent coastal business community where a collective voice can influence infrastructure planning and policies at a regional and national level. We have been in regular contact with Thanet District Council about its own purchasing arrangements, the management of Kent Innovation Centre, its interpretation of planning regulations, business rates, Ramsgate Maritime Museum, parking,   broadband provision and a variety of other issues that impact on the promotion of trade and commerce in the district. The voice of the Thanet & East Kent Chamber features regularly on ITV Meridian, BBC Radio and BBC television as well as in the regional and local press. We are especially grateful to Graham Cooke of BBC South East, Derek Johnson of ITV Meridian, Neal Ashford of Lavender Blue Media and Rebecca Smith, senior editor at Kent Regional Newspapers, publishers of the Thanet Times and Thanet Gazette,   for their presentation and expert advice to Chamber members as speakers at our Business Networking Breakfast last month. Chamber members can take comfort from knowing that their views reach a wide audience and that their interests direct the Chamber’s public profile.

 

9. The Open

 

The Open Championship at Royal St George’s Golf Club last July produced a spend in East Kent of  £12,341,395. A survey sample of over 2,000 respondents found that the 180,091 visitors produced 83,256 bed nights in East Kent paying £4,150,491 into the welcoming arms of local hotels and accommodation providers. When other factors are added to the equation, such as the amounts paid by players, media staff, event employees and so on, the direct economic benefit to East Kent is calculated as £21,180,000.    [Open Golf Championship, Economic Impact Assessment, Sheffield Hallam University, November 2011] A concomitant benefit for East Kent was the television exposure to 483 million households which has an estimated Media Equivalency Value for event sponsors and tourism bodies of a massive £52.6 million.  [Ibid and Repucom 2010] In the year before the London 2012 Olympics, enticing images of East Kent may well play a role in encouraging visitors to London to spend part of their stay in Thanet. We should add that the goodwill factor that accompanied the winner of the 2011 Open Championship, Darren Clarke, has provided a stimulus to membership at Prince’s Golf Club, Royal Cinque Ports Golf Club, Stonelees Golf Centre and Manston Golf Centre.  

 

10. Regional Growth Fund

 

The government has recently announced a £40 million Regional Growth Fund for East Kent to consist of Springboard Grants for small companies, Investment & Growth Grants and Infrastructure Grants. We will not know the full details for applicants until Spring 2012, but this is an obvious boost to the area. The main focus of the investment will be on job creation.

 

11. Manston

 

Manston Airport, owned by Infratil, has published its plans for night flights. If these receive approval, it is likely that the airport will expand considerably. The applicable metric for airport employment is 1,000 jobs per 1 million passenger movements. Applied to Infratil’s plans for growth to 2018, this would result in 3,000 jobs. Should the airport’s owners be disappointed with the planning decisions, it is likely that the company will withdraw from Manston leaving the future of the airport very much in doubt. China Gateway International received a welcome vote of confidence last November with   unanimous for the renewal of planning permission from Thanet District Council  for its 1.2 million sq. ft. of development land adjoining the airport. The Chamber will be representing the views of Chamber members at a meeting with the Parliamentary Under-Secretary of State for Transport on 12^th January 2012.

 

12. Dover & Ramsgate Ports

 

The Port of Dover has been in the news this year. As the largest Big Society project before the government, the bid by the Dover People’s Port Trust Ltd (DPPTL) to buy the Port of Dover could pave the way for similar community efforts to purchase the Port of Ramsgate. DPPTL enjoys the support of the main ferry companies, the union Unite, the local business community and the residents of Dover. An official poll overseen by Dover Town Council last March revealed that 97.5% of voters favoured a transfer of the ownership of the port from the current Dover Harbour Board to DPPTL. It will be difficult for the government to ignore such an overwhelming vote of confidence in DPPTL. It is perhaps also significant as an indicator of future policy on publicly-owned ports that the Public Bodies Act 2011, which received Royal Assent last month, specifically mentions the Dover Harbour Board under Schedule 5, “Power to Modify or Transfer Functions Bodies and Offices”. At the time of writing, employees of Sea France are facing redundancy, as outlined in the ITV Meridian report at http://www.itv.com/meridian-east/130-dover-jobs-at-threat60783. Workers supporting the French Union CFDT are pictured displaying a banner asking: “If Jeanne D’Arc saved France, why hasn’t President Sakorzy saved Sea France?”. Students of history will know that 500 years passed from when Joan of Arc was burnt at the stake to her canonization as a saint. With a French election planned in three months, the 127 ferry workers based in East Kent will be hoping for a saviour to act more promptly. DFDS and LD lines are currently favourites to fill the breach.

 

13. The Turner Effect

 

The success of the Turner Contemporary in attracting double its target of annual visitors in its first six months of operation certainly gives cause for optimism in Margate. A blockbuster exhibition featuring 80 of JMW Turner’s watercolours and 12 oils is planned to open on 28^th January 2012. It is expected to attract new visitors and bring back first timers on a scale that has not been seen since the heyday of Dreamland. The visit to the gallery by Her Majesty The Queen on 11 ^th November 2011 gave an unambiguous seal of approval which can only have positive consequences on the regeneration of Margate. The Old Town has already seen an influx of new independent retailers which has revived the immediate area. Although Margate High Street remains an undoubted challenge, there are hopes that “The Turner Effect” will gradually spread its influence further afield. There are certainly some indications that the brand image of Margate is changing, as evidenced by the Mary Portas report of 13 ^th December 2011. Commissioned by the Prime Minister and Deputy Prime Minister to undertake an independent review of our High Streets and town centres, Mary Portas reserves especial praise for the impact of the Turner Contemporary. “I saw for myself how real vision can secure new investment at the new Turner Contemporary gallery in Margate where the surrounding area has turned a corner, bringing new businesses and footfall to the lower end of this seaside town.” [w ww.maryportas.com/wp-content/uploads/The_Portas_Review.pdf]

 

14. Tourism

 

In-bound tourists mostly spend their money and go. They tend not to demand unemployment benefit, ask for free school meals or require extensive consultations with public officials.  Although a tiny proportion may need medical assistance and require a small amount of resources funded by rate-payers, on balance they might be considered ideal customers. The latest in-depth study by the ever excellent Visit Kent in partnership with Kent County Council and the European Regional Development Fund calculates the total value of tourism activity in Thanet in 2009 to have been “around £217,051,000”. This showed an increase of 10% on the figure for 2006. The sector supported 3,572 Full-Time Equivalent Jobs and 5,066 Actual Jobs, after adding seasonal and part-time employment.  [The Economic Impact of Tourism on the District of Thanet 2009, Tourism South East, 2010]   We can expect these figures to grow with the addition of the magnificent Hornby Visitor Centre, the expansion of the Two Chimneys Caravan Park, progress on the planning for Dreamland Heritage Park and sports related benefits from the London 2012 Olympics. It might be questionable whether the private patients at the Spencer Wings next to the QEQM hospital in Margate and at the William Harvey Hospital in Ashford can be considered tourists, but there is no doubt that the excellent reputation enjoyed by East Kent’s leading private healthcare facilities is generating revenue for the area and creating employment in what is a highly competitive sector in the UK. The two corporate Golf tournaments managed by the Thanet & East Kent Chamber and the Dover District Chamber of Commerce enjoyed record entries in 2011 at both the Prince’s Golf Club and the Royal Cinque Ports Golf Club.

 

15. Some Solutions

 

The somewhat bleak economic indicators listed at the beginning of this report have inspired the Thanet & East Kent Chamber to address some fundamental weaknesses. Following the announcement of the demise of the Business Link regional services last March, the Chamber launched free monthly Business Advice Clinics. Companies of all sizes are invited to meet business experts to discuss their trading requirements and business needs. The panel consists of seasoned professionals including a lawyer, chartered accountant, bank manager and successful entrepreneurs who give their time free of charge to assist local companies to expand and develop. Such is the success of the programme that private individuals have promised a fund of £1 million to support start-ups and established companies, subject to a reasonable return on investment. Local knowledge can sometimes lead to a more optimistic view of investment opportunities than that from high street banks which are subject to centralised control.

 

16. Strategic Issues

 

The Business Advice Clinics have also revealed some strategic issues relating to East Kent companies. There is a climate of export antipathy among many small companies. Some of these enterprises have excellent products and services which undercut their overseas competitors in the Eurozone by over 20% and yet they are supremely reluctant to meet the needs of customers overseas. The Chamber has secured the services of a French agency which is now offering market surveys, foreign language websites and a broad range of customer liaison services to local firms. Credit control remains the largest cause of company failure. The Chamber is promoting internet banking which gives instant access to bank account information and is able to introduce companies to specialists in managing cash-flow.

 

17. Resilience

 

Thanet businesses are characterized by a resilience and resourcefulness. Established firms in Thanet that survived the decline in traditional seaside towns have developed a hardiness that has prepared them well to survive downturns and recessions. Incoming companies have brought innovative technology and an openness to trading overseas from which everyone can benefit. [ TEKC, Portrait of Thanet, Dec 2011]

 

18. Science in Action

 

Vattenfall and The London Array have extended the Thanet market place beyond our shoreline and provide an example to green and renewable technology companies of world-class off-shore energy generation. Vattenfall’s Thanet Off-shore Windfarm opened on 23 September 2010 as the world’s largest. The London Array, owned by DONG (50%), E.ON (30%) and Masdar (20%) will be bigger still and is on target to have positioned its first turbines by the end of January 2012. Phase Two of the civil works at the sub station at Cleve Hill are ahead of schedule and will continue until mid-summer 2012. The Thanet Earth complex near Birchington is at the cutting edge of hydroponics. At a time when politicians of all parties emphasize the value to the UK of training scientists, we have in our district a great example of science applied to agriculture. Thanet Earth employs 450 people, has moved into profit   and is now earning its keep for its parent company, the Fresca group.

 

19. Night Time Economy & Westwood Cross

 

Innovative management adapted to local needs has ensured that the night-time economy of Thanet has some attractive venues to entice higher earners. G Casino is on target to recoup for the shareholders of the Rank Organisation its investment of £12 million at Westwood Cross, encouraging others to follow suit. Primark will shortly be opening a a 70,000 sq ft store at Westwood Cross. Sainsbury’s is moving its supermarket to larger premises and building a new link road as part of its planning agreement. Marks & Spencer is also doubling its floor space at Westwood Cross. The Theatre Royal in Margate provides a large formal setting for visiting drama companies. The Sarah Thorne Theatre Club in Broadstairs offers a remarkable example of how unsubsidised theatre can be commercially successful through imaginative programming and extensive contacts. Enterprising and experienced management underlie the sustained increase in box office takings, but it must help to have patrons of the calibre of Judi Dench and David Suchet.

 

20. Adding Value to Heritage Assets

 

The Powell-Cotton Museum at Quex Park with its unique collection of artefacts and dioramas is in safe hands. But most remarkable of all is the entrepreneurial spirit shown by the Quex Park management team of what was essentially a museum and gallery within an agricultural business. By adding value to its primary assets, Quex Park has made a big success of its on-site retail operations and has brought some excellent new products to market in the form of home-grown Rapeseed Oil and Kent Crisps; both excellent examples of genuine enterprise stimulating a rural economy.

 

21. Generating Profits and Jobs At Cummins

 

The multinational Cummins Power Generators has its southern UK base at Manston and is in a period of strong growth. The third quarter figures for 2011 show a worldwide sales increase of 36% which provoked the Chairman and Chief Executive to remark: “ Cummins is having its best year ever, achieving more than 30% revenue growth and record profitability this year, despite all the uncertainty in the world”. [Cummins reports strong third quarter results, Cummins, 25^th October 2011]

 

22. Thorley Taverns & Shepheard Neame

 

Thorley Taverns is one of the biggest private sector employers in Thanet. Despite the challenging trading environment, it continues to invest in training its staff and refurbishing its properties to a high standard. The Faversham brewer, Shepherd Neame, was sufficiently impressed by the Fayreness Hotel last September to make Thorley Taverns an offer it felt unable to refuse. This year, Shepherd Neame has also purchased the Royal Albion Hotel in Broadstairs and the Bell Hotel in Sandwich, proving again that the Thanet tourism sector offers some investment opportunities that should do well in the medium term. Thorley Taverns reports that summer wedding bookings for 2012 at the Pegwell Bay Hotel are already nearly at capacity, justifying again the benefits of professional staff training.

 

23. Training

 

Thanet catering has gained a worldwide reputation through the activities of Thanet College, alma mater of Gary Rhodes and supplier of staff to Buckingham Palace, British Embassies and distinguished restaurants throughout the UK. While acknowledging its past, the college now cooperates closely with local businesses in many sectors offering   high standards of professional training and apprenticeships in a wide variety of subjects through its revamped site in Ramsgate Road, Broadstairs and its new training division at Manston. A new £6.5 million Centre for Environmental Technology received the green light last month with news of a successful bid for £2 million from the Skills Funding Agency putting Thanet College at the forefront of green training opportunities in Kent.  Added to the mix are private training companies such as Profile Development & Training based at the Kent Innovation Centre which ensure that alternative apprenticeship programmes and IT skills courses are now readily available locally. Earlier this year, Independent Support Services opened a training facility for employers next to its Manston offices. Saint John Ambulance is also active in Thanet. When one adds the courses available at the Broadstairs Campus of Canterbury Christ Church University, it is encouraging to see that employers now have a wide choice of training providers in the public and private sectors.

 

24. Local Spend

 

One of the ways to promote a dynamic local economy is to encourage public bodies to use local suppliers. Best practice dictates that organisations funded by the tax payer have an obligation and in many cases a statutory duty to secure the best combination of price, quality and service, see Public Contarcts below.  We point out that it can be expected that service from a local supplier might be of a higher order than that from a firm outside East Kent. Some public bodies have responded enthusiastically to this Chamber initiative. We are pleased to report that in the last financial year, Thanet College spent £1.3 million with local suppliers, a dramatic change of policy that has brought benefits to all the parties involved. We note that Chamber member Vattenfall is now committed to spending £15 million with local suppliers should it proceed with an extension of the Kentish Flats wind farm off the coast of Whitstable. For 2012, the Chamber has published an East Kent Business Directory in the format of a diary, available free of charge to Chamber members, which is now operating as a source document for public bodies looking to support local business.

 

25. Public Contracts

 

Local Authorities are obliged by law to procure goods under Public Contracts Regulations. Failure to do so can result in heavy fines and costly contract challenges. In brief, there are thresholds for contract values, which apply from 1^st January 2012 to 31^st December 2013. [See Procurement Policy Note, New Threshold Levels for 2012 and changes in the use of the Accelerated Restricted Procedure, Cabinet Office, 12 ^th December 2011]. For many goods, the threshold value is £174,934, but this is higher for Security, Defence and some R&D and telecoms purchases.  The Cabinet Office is happy to answer specific enquiries; tel 0845 000 4999 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  Local authorities also may partake in collective purchasing arrangements which are defined in true civil service style as; “ Framework agreements are set up by public sector bodies with suppliers to provide goods, works or services according to certain requirements”. [Overview on selling to government, Procurement regulations for public sector contracts. Business Link, December 2011 ]. Despite the heavy hand of EU regulations and the ending of the relaxation on the rules relating to an accelerated restricted procedure which was brought in as an emergency measure, there remains considerable scope for enterprising public bodies to go beyond telling others to “Buy Local” and to implement themselves the policies they are urging others to follow. The Chamber is encouraged by developments at Dover Town Council and Dover District Council.

 

26. Confidence Boost to Thanet

 

It is a continuing mark of confidence and pride that successful enterprises such as Hornby, Silent Gliss, Emco Wheaton, China Gateway International and W W Martin all have their headquarters in Thanet. Around 85% of the Small and Medium Enterprises (fewer than 250 employees) in Thanet are family-run businesses with a long-term investment in the fabric of society. Not only has this served to bolster resilience, but it has created strong ties with schools which in some cases have served many generations of the same family. Continuing best practice developments at Hartsdown Technology School, the Marlowe Academy, Cliftonville Primary School, St Lawrence College and Snappy Play Centre encourage ambitious workers to remain in Thanet. TV One in Margate continues to win awards for its world beating CORIO®3 Technology products which proves that advanced electronics are not the sole domain of Asian or US companies. Thanet Waste is now the leading independently owned waste management company in Kent; setting new national standards with the ‘Zero to Landfill’ policy in operation at its 8 acre site at Richborough.  The success of OFP Timber Framed Homes reached a wide audience on 9^th August 2011 when it came to the aid of single mum Louise and her autistic son Thomas on the television programme DIY SOS for a Big Build special in Dartford. [http://www.bbc.co.uk/programmes/b013938w ]. Carol Peters Travel beat the competition throughout England and Wales to win the 2011 “Best Operator, Small Fleet” which has already encouraged this coach operator to expand its business considerably for 2012. The winning of sizeable new contracts by Lavender Blue Media, M&S Brickwork, Sota Solutions, MPG Properties. Flambeau Europlast, Kinetic Advance, Drinks Warehouse UK and AEI Compounds show that Thanet can offer a profitable trading environment for companies willing to adapt their traditional services and products to new meet new demands in the market place.  

 

27. Summary

 

While 2011 was a challenging year for Thanet businesses, there were some highlights illustrated most vividly by the visit of Her Majesty The Queen and the Duke of Edinburgh on 11^th November. Serious development in the medium term may well depend on the future of Manston airport, the success of the Discovery Park and greater awareness from some public bodies of the key role of the wealth creators. As an ex-BBC producer, our Chamber Co-President is hardly in need of any external assistance to put his message across. Nevertheless, the award of a knighthood to Roger Gale MP in the New Year’s Honours List will add weight to his wise words in backing local firms and was welcomed with great satisfaction by the very many local businesses who have gained from his guidance. The Thanet & East Kent Chamber will continue to support local firms of all sizes in 2012 and looks forward to contributing to a business environment that provides more opportunities for school leavers and more reasons for graduates to return to East Kent with their new skills and wider experience.

 

David Foley

Chief Executive

Thanet & East Kent Chamber Ltd

www.tekc.co.uk

 

 

© David Foley, 9 January 2012

Thanet & East Kent Insider

 

26^th November 2011      Issue No.: 175

 

1. Media & Business with BBC, ITV and KRN

The December Chamber Business Networking Breakfast for December will take place on Friday 16^th December 2011 and will feature speakers from the BBC, ITV, Kent Regional Newspapers and a private network. The speakers will outline their own experiences in the media and will advise on how businesses can best interact with television, radio and the press. The event will take place at the Pegwell Bay Hotel, Ramsgate from 0730 hrs to 0900 hrs. Booking is essential. Tickets cost £12 for Chamber members and £20 for non-members. To reserve your place, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or telephone 01843 609289.

 

2. Darren Clarke & Co in Kent

The Chamber was the guest of Dover District Council at a meeting last Wednesday with Peter Dawson, the Chief Executive of the R&A, and his team to review the impact of the Open Golf Championship at Sandwich last July. During a concentrated analysis, traffic management, ticketing, accommodation, merchandising and other aspects were examined in detail. There was heartfelt relief that there had been no ‘incidents’ to test the emergency services and general agreement that Darren Clarke had proved to be a popular winner. Some concern was expressed by traders in Sandwich regarding access and footfall, but the overwhelming success of the tournament was acknowledged by all. Indeed, the economic impact on the East Kent economy in Thanet, Dover, Canterbury and Shepway was the main focus of the afternoon. During the whole session, not one person committed the heinous crime of referring to the “British Open”. As all patriotic golfers will know, the Open Championship was the first in the world and we leave it to others to add a few adjectives in an attempt to catch up.

 

3. Don’t You Just Invent Some Fancy Numbers?

Not at all. The economic impact figures were compiled by Sheffield Hallam University according to strict criteria following over 2,000 surveys with spectators. Further desk analysis drew on the data relationships established during the 2010 Open at St Andrews in Fife. The revenue listed refers uniquely to new money that is event-specific, which means that it originated from outside the host economy. In other words, spending from locals who would have spent their money one way or another during the week of the event was specifically excluded from the calculations.

 

4. How Many People Attended?

Most of the press reports list 180,000, but we can be more precise than that. On the practice days from 10^th July to 13^th July 2011, there were 31,222 spectators. During the four days of the competition proper, the crowds were as follows: on Thursday 14^th July 31,545; on Friday 15^th July 42,846; on Saturday 16^th July 36,471 and on Sunday 17^th July 38,007. Anyone with a calculator, spreadsheet or a just a good head for arithmetic will know that the total visitor number is 180,091. It is interesting to note that the most popular day was the Friday. The practice days amount more or less to an effective fifth day in terms of attendance.  

 

5. Where Did They All Come From?

There were some slight differences in the survey results, but the overall picture is as follows: East Kent 12.4%; Rest of Kent 12.3%; Rest of UK 65.5%; International 9.8%. The data reveals that the event attracted just under a quarter of its spectators from Kent, showing just how popular golf is in the county.

 

6. What Did They Spend Their Money On?

We can trace the direct spending from spectators on services and products in East Kent and Kent. The following figures show the total amount spent by spectators during the period of the 2012 Open. The figure for Kent as a whole includes East Kent.

 

		East Kent		Kent
Admissions		180,091		180,091
Commercial Bed Nights		83,256		93,671
Cost per bed-night		£49.85		£52.96
Accommodation		£4,150,491		£4,960,820
Other daily spend		£52.49		£63.13
Other items		£8,190,904		£8,462,880
Total spend		£12,341,395		£13,423,702

 

7. Is That All?

No it isn’t. We can add all the other spending and add a mysterious “multiplier” which experience has suggested contributes to producing an accurate assessment.

 

Economic Impact		East Kent		£m              Kent
Spectators		12.34		13.42
Players		1.19		1.19
Media		0.89		0.96
Event Staff		2.34		2.44
Patrons		0.71		1.06
Organisational		0.18		0.72
Direct Economic Impact		17.85		19.78
Multiplier		1.20		1.22
Total Economic Impact		21.18		24.14

 

8. Is That All Now?

Nearly. There is something to add which is called the Media Equivalency Value. In brief, all the television exposure over the course of the week would cost a huge amount on national television networks. The Open Championship was broadcast in 196 territories reaching 458 million households over 3,676 broadcast hours. For the sponsors at Nikon, HSBC, Doosan, Rolex and Mercedes-Benz as well as for East Kent tourism, this has an estimated value of £52.6 million. In summary, we can calculate that the 2011 Open Championship at Royal St George’s Golf Club in Sandwich had an economic impact of around £77 million of which £24.14 million came directly to Kent and £21.18 million to East Kent. Thank you very much, Mr Dawson, sir. Please come back soon.

 

9. Business Directory

The 2012 Chamber diary has now been published. If any Chamber member has not received a copy by Friday, 2^nd December 2011, please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it to arrange for delivery. The publication serves as the official business directory for the East Kent coastal business community from Whitstable around to Dover and will be used by a wide variety of private and public bodies to inform their purchasing decisions. The companies listed include almost every sector of the economy and we urge all Chamber members to consult their diary before they buy.

 

10. Exports to France

We are pleased to note strong interest from East Kent companies looking to find new export markets in France. So Now, the English-speaking French agency near Lyon that specialises in promoting East Kent companies in the Eurozone, reports enthusiastic interest from local suppliers and service providers who are looking to increase their sales into Europe. With a currency advantage of over 20% since 2007, an increasing number of suppliers are finding that their products and services are competitively-priced in France and neighbouring countries. Offering marketing studies, business plans, mailshots, designs, website translations and a host of ideas to assist your exports, So Now welcomes enquiries from Chamber members keen to boost their sales in the Eurozone or to enter European markets for the first time. For details without obligation, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it and expect a prompt reply.

 

11. Thanet College Update

Last Tuesday, Chamber member Thanet College hosted its second annual Star Awards to recognise exceptional contributions during the year by staff members. Chairman of the governors, Professor Michael Wright CBE DL, joined Principal, Graham Razey, to congratulate the winners. Although not at last week’s awards evening, some of the biggest winners in the past year have been those Chamber members who have benefited from the College’s “Buy Local” policy. We are delighted to report that in the year to 31^st July 2011, a total of £1,362,608 was spent with local suppliers. This represents a record amount and provides an example to other Further Education colleges in the UK who are seeking closer ties with their local business community. Capital spending with local companies rose from 21% of budget in the year ending 31^st July 2010 to 93% of budget for the quarter to 31^st July 2011. There is nothing a company should like more than a customer and Thanet College has given the local business community every reason to like its own products and services. In a letter to the Chamber, Graham Razey writes: “There may be further developments in the future and so I would like to reassure you and the Chamber’s members that the College is continuing its commitment to ‘Buy Local’”.  Graham and his team are well supplied with the Chamber 2012 diary.

 

12. Surely Not More About Golf?

Just a little. The Thanet & East Kent Chamber in liaison with our sister Chamber in Dover is in the pleasant position of considering the many offers it has received to host our Golf Days. We will be reporting to members on the results of these negotiations. The Chamber Autumn Golf Day is the biggest corporate golf event in the East Kent business community and we look forward to even more teams entering in 2012. Readers are reminded that images of the 2011 Golf Days at the Royal Cinque Ports Golf Club and Prince’s Golf Club can be found on the official image website at http://www.photoboxgallery.com/DDCC

 

13. Unemployment

As always in presenting employment data, we look at the year-on-year trends rather than examine any monthly changes which can fluctuate widely and give a misleading impression of the state of our local economy. We are grateful to Kent County Council’s Research & Evaluation department for sending us their ever useful digest of the latest figures from the Office for National Statistics. Sadly, all 12 districts in the KCC area show an annual rise in unemployment. In just 3 districts is there less than double digit growth: Dartford +8.3%, Sevenoaks +9.8% and Tunbridge Wells +4.8%. For the purposes of this report, we write a “+” sign before all increases. There is no relief for job-seekers within the county boundary in Medway which shows +17.6% more registered unemployed in October 2011 than one year previously. The highest annual increase is in Gravesham at +21.9%, but Dover at +20.1% and Canterbury at +20.0% are not far behind. The recent announcement by government of measures to stimulate employment among the 18-24 year olds cannot come soon enough for KCC’s school leavers and resident graduates. This group has experienced a year-on-year increase in unemployment of +27.1%. Also not to be ignored are the 60-64 year olds where the data shows a +42.0% increase over the year in unemployment benefit claimants. The message to the county’s workforce might be: “Don’t fall out with your boss”. The data for East Kent is listed below.

 

14. How Are We Doing?

 

	October 2011		Change since Oct 2010
	Unemployed	% of workforce	Number	%
Ashford	1,857	2.6%	+176	+10.5%
Canterbury	2,426	2.4%	+404	+20.0%
Dover District	2,405	5.7%	+402	+20.1%
Maidstone	2,458	2.6%	+336	+15.8%
Shepway	2,652	4.3%	+323	+13.9%
Swale	3,316	3.9%	+436	+15.1%
Thanet	4,570	5.8%	+624	+15.8%
Kent	35,402	3.3%	+4,826	+15.8%
South East	139,670	2.6%	+12,246	+9.6%
Great Britain	1,502,528	3.8%	+143,246	+10.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15. Regional Growth Fund

We are grateful to our Chamber Co-President, Laura Sandys MP, for supplying members with the official summary of the current state of the Regional Growth Fund. Details are in the attached RGF Fact Sheet and RGF Intervention Rates. We will advise members as soon as the application procedure has been finalised. We are assured by Laura that UK Trade & Investment, UKTI, will be promoting East Kent at every opportunity. In her words: “We will never be better promoted internationally”. UKTI will focus on attracting “Big Players” so that local suppliers can play a full part in the supply chain. In particular, Laura identifies engineering companies, life science innovators and service companies with the ambition and drive to meet the needs of international firms.

 

16. Business Advice Clinics

The Chamber Business Advice Clinics were well-supported this month. Regular readers will be aware that we hold sessions on the first Friday of the month in Broadstairs and on the first Wednesday of the month in Dover. Attendance is free of charge and open to companies and start-ups of all sizes which trade or seek to trade in the districts of Thanet or Dover. The Chamber has been successful in securing the backing of benign investors who are willing to consider applications for development projects. There is £1 million of funding available, subject to reasonable prospects of a good return over 5 years. Currently, four projects are being considered for investment sums ranging from £25,000 to £135,000.

 

17. Waste Not, Want Not
TW Services has launched a new website which has raised the bar for all UK waste processing and recycling centres. Featuring full social media links and on-line trading services, the website offers full access to the company’s domestic and commercial product range including skip hire, hazardous waste disposal and house clearances. Such are the advances that TW Services has made in recent years that even the keenest ecologically-minded critic will be impressed by its “Zero to Landfill” policy, embraced with enthusiasm by all the 80 or more staff members. Still in family ownership, the company can rightly claim to be the leading independently owned waste management company in Kent and has the resources, equipment and experience to process 750,000 tonnes of domestic and commercial waste every year. For more details, see the website at www.tw-services.co.uk or telephone head office in Ramsgate Road, Sandwich, tel: 01304 626364.

 

18. Boys & Maughan Expands

Confidence in the future of Ramsgate is very much in evidence at Boys & Maughan Solicitors which is welcoming three new members to its Ramsgate legal team. Lorraine Smith, Wills & Probate, Tom Moulsdale, Litigation, and Dawn Sahathevan, Residential Conveyancing, are joining Managing Partner Andrew Baker in strengthening the company’s presence in Thanet. Tom represents the third generation of the Moulsdale family to work at Boys & Maughan. Andrew Baker said: “With the high speed train link to London, the upgrading of the A256 and not forgetting the country’s only Royal Harbour, Ramsgate continues to be one of the shining jewels in Thanet’s crown.” For more details, contact Robin Evans by telephone to 01843 234000 or by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

19. Ramsgate Tunnels

Predict and prevent must have been words very much in the mind of Ramsgate’s ‘Mad Mayor’ ABC Kempe and Borough Engineer, R D “Dick” Brimmell when they first drew up plans for tunnels under Ramsgate. The Home Office repeatedly rejected requests for such an extensive network of bomb shelters but finally relented in the spring of 1939 after Hitler’s troops had marched into Czechoslovakia on 16th March 1939. The letter conveying the decision of the Lord Privy Seal Sir John Anderson arrived in Ramsgate on 20^th March 1939.  Working around the clock, Francois Cementation Co Ltd completed the project in time for the Duke of Kent to be guest of honour at the opening ceremony on 1^st June 1939. Capable of sheltering 60,000 people, the tunnels were an engineering marvel that were soon to prove their worth in saving the lives of Ramsgate citizens in the air raids of 24^th August 1940 which saw the Luftwaffe drop over 500 bombs on Ramsgate damaging 800 houses. Last Thursday evening, the Old Customs House in Ramsgate was the venue for a celebration of Kempe and Brimmell’s foresight and an update on the plans on how to spend the £53,000 recently awarded by the Jubilee People’s Millions Fund to help restore the tunnels. Introduced with consummate professionalism by the actor Clive Holland, an invited audience heard from Ramsgate Mayor Cllr David Green, Project Manager Peter Borrough and other committee members about some of potential uses for the tunnels and their undoubted impact in attracting visitors to Thanet. For more information, see the website at http://ramsgatetunnels.org   

 

20. Customer Service

Canterbury Christ Church University is offering a networking breakfast at Hall Place Enterprise Centre, Harbledown near Canterbury on Tuesday 6th December 2011 entitled “Customer Service, how can it set you apart from your competitors?”  Delegates will be invited to explore their own experiences of good customer care and service and will learn the different techniques required to meet the demands of businesses as well as the general public. Tickets cost an eminently reasonable £12 for the 0745 hrs to 1015 hrs session and include breakfast and coffee. For more details, contact Jenny Overy direct by telephone to 01227 782672 or by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

                               

21. Manstonians Vote “Yes”

We learn from our good friends at the Isle of Thanet Gazette that the villagers of Manston have voted to support the airport and its plans for development. Manston Parish Council vice-chairman Bill Bell is quoted as saying: “I suppose people feel as if they are part of the airport, it is part of their history”. The villagers of Manston could teach the failing economies of the Eurozone a thing or two. Well done, Bill Bell & Co. If we are to maintain our schools, emergency services, social services, defence commitments and all the heavy demands we place on government at all levels, Chamber policy dictates that it is essential that we support the businesses that fund the public sector. The airport at Manston represents our best bet to create sustainable, worthwhile jobs in Thanet in the medium and long term. Successful airports breed development and industry, creating opportunities for school leavers and mature workers alike. We should cherish the airport owners, Infratil, and remind the doubters that Manston Airport has been in operation since 1915. See http://www.thisiskent.co.uk/Villagers-airport-s-plan-flying-night/story-13884772-detail/story.html

 

22. A Rounded Judgment

With all the serious local firms of solicitors in the Chamber membership, it is perhaps not surprising that we hear so many stories relating to justice and its various manifestations.  We have our doubts about the following account, but we leave it to readers to judge for themselves. “There are many reasons a divorce might be granted: adultery, a two-year separation by consent, a five-year separation without consent and, of course unreasonable behavior; but, we all have different ideas as to what is unreasonable. One recent case concerned a wife who still rather liked her husband but found his breakfast habits to be insurmountably distasteful. The main cause of her extreme distress was his habit of making coffee and then failing to clean the coffee machine properly. It appears that he ground the beans himself and always left a residual amount of coffee grounds in the electric grinder which infuriated his spouse who felt obliged to clean up after him. The accumulated stress of over 1,500 mornings of such anxiety had reduced her to a state of frenzy which eventually prompted her to seek a divorce. When the case came before the judge, he enquired of the wife’s lawyer just exactly how much coffee was habitually left to be cleaned. After much consideration and detailed discussions with the petitioner, the reply was given: “Around a level teaspoonful, my Lord”. The judge duly considered the new fact in the light of all that had been presented to him. In giving his final judgement, he first expressed his sympathy with the wife. He continued that had the excess coffee amounted to a dessertspoonful or more, his decision may have been different, but on the balance of the evidence before him, he had no option but to conclude that there were insufficient grounds for divorce.”  

 

© David Foley, November 2011

Thanet & East Kent Insider

 

12^th November 2011      Issue No.: 174

 

1. Queen and Duke of Edinburgh

Her Majesty The Queen and HRH The Duke of Edinburgh visited Thanet yesterday, putting a new focus on two development projects which can now claim royal patronage. The Turner Contemporary received the ultimate blessing when our sovereign unveiled a plaque commemorating her visit. Spirited  applause and smiles from the audience must have warmed the hearts of Cllr Mike Hill, Cllr Paul Carter, Turner Chairman John Kampfner and gallery Director Victoria Pomeroy who saw all their hard work crowned with success as the royal couple followed in the footsteps of over 300,000 others who have visited the gallery since its opening last April. Chamber member Hartsdown Technology College fell under the appreciative royal gaze in the Clore Learning studio. The royal party had landed at Kent International Airport proving again that Manston is at the centre of developments in East Kent.

2. Remembrance In Kent

It is calculated that at the 11^th minute of the 11^th hour of the 11^th month of this year 2011, the royal party was flying over Dover, which is a fitting tribute to this country’s premier passenger port as the White Cliffs of Dover provided the final vista for many soldiers departing for the trenches in WW1 and was at the front line in WW2. A young Princess Elizabeth trained as a driver and mechanic in the ATS in the final year of the last war. Prince Philip joined the Royal Navy in 1939 and served throughout the conflict with great distinction before ending his career as a Commander in 1952.

3. Department For Transport

The Thanet & East Kent Chamber in liaison with our sister body in Dover accepted an invitation from the Department of Transport to brief the government on the local economy in the East Kent coastal business community. The Chamber Chief Executive spent just under two hours last Thursday at the DfT Headquarters at Great Minster House in London in discussions with the Director and Deputy Director of Maritime Commerce and Infrastructure. The views of Chamber members were communicated in detail together with an outline of proposed reforms to boost East Kent businesses.

4. Managing Our Ports

We are continuing to receive excellent reports of our Business Networking breakfast at the Fayreness Hotel which featured the genial Chief Executive of the New York-based Global Institute of Logistics, Kieran Ring. Delays at our ports add cost and reduce the competitiveness of British companies seeking to take advantage of currency advantages and buoyant niche markets overseas. The Chamber Chairman, Dr Bill Moses, advises that sometimes we overcomplicate the management strategies required to ensure that our ports are efficient and reflect best practice. He advises that there are three key factors in port operations which should remain central to all management decisions: Speed, Cost-effectiveness and Safety. Isn’t that the truth? Or as Aleksandr Orlov the Russian meerkat might say: “Simples”.

5. More On Margate

There is more to Margate than sand, sea and the Turner Contemporary. The Embroidered & Printed Clothing Company continues to lead the way as one of the country’s leading suppliers and manufacturers of promotional clothing and workwear. Over the last twelve years, the company has refined its production and upgraded its technology to the point where it can compete with domestic producers throughout the UK and Europe. If you are looking to give your employees an edge in the marketplace or are considering some seasonal gifts to reward your employees, follow the example of happy customers Vodafone, VW, Coca Cola and Jaguar and make that call to the The Embroidered & Printed Clothing Company sales team; tel: 0845 180 1008. A full range of products can be viewed on-line at www.embroidered-printed clothing.co.uk .

6. My Big Kent Weekend

My Big Kent Weekend is planned for 17^th and 18^th March 2012. Delphine Houlton of Chamber Member Maxim PR informs us that destinations and event organisers taking part in the weekend are asked to offer a number of free tickets for local people to visit their venue over the weekend. Visit Kent’s dynamic Managing Director, Sandra Matthews Marsh, notes that the programme has become an important element in the local tourism industry that contributes over £3.2 billion to the Kent economy. Sandra said “Six years ago we launched the Kent Big Day Out and it has exceeded all our expectations. This year we took the event over two days and received more than 51,000 applications for tickets during the month that the website was open. On average people spent nine minutes browsing 25 pages of the site, and there were more than 812,000 page views during the ticket application period. It is a tremendous showcase for all the attractions and experiences Kent has to offer going far beyond our iconic castles, cathedrals and historic houses to include many hidden gems such as art galleries, theatres, museums, sporting venues, creative experiences, hospitality venues and even the whole centre of a village. This year we were able to give away 18,000 free tickets to 120 different venues and I am optimistic that in 2012 more businesses will be able to take part and share in the fun and the long term marketing benefits that this event offers. Our research shows more than 85 per cent of attractions taking part in 2011 thought it was an excellent event for them and, in total, participating attractions received more than £150,000 in secondary spend.” Perhaps the biggest accolade the My Kent Big Weekend Out can claim is that 80% of local residents with free tickets said they would visit the attraction again and 98% said they would recommend it to their friends and family. For more details, telephone Kelly Sharp at Visit Kent, tel: 01227 812912 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

7. New Salon In Broadstairs

The Chamber Co-president, Laura Sandys MP, Broadstairs Mayor Cllr David Saunders, accompanied by his charming wife Cllr Mave Sanders, and the Chamber Chief Executive were all guests of the Indulgence Health & Beauty Salon last Friday evening to celebrate its grand opening at 135 High Street, Broadstairs. Salon Manager Stacy Shearer and her team have transformed these premises to a high standard for clients who wish to be “relaxed on the inside and radiant on the outside”. Responding to a growing market in and around Thanet, the salon is offering a “Pre-Christmas Pamper” where the cheaper of two treatments is offered free of charge. The Indulgence Health & Beauty Salon is open from Monday to Friday from 0900 hrs to 1900 hrs and on Saturdays from 0900 hrs to 1730 hrs. If a waxing, manicure or pedicure is your fancy or you want to know what is meant by “a Hollywood eyelash extension and a minx and trendy wrap”, give Stacy a call, tel: 01843 586236.  As a qualified beauty therapist for 13 years, she knows how to “relax, restore and revive” you.  So far as we know, Stacy has not been invited to the current discussions over the Euro. We suspect her skills could be very useful in reviving the spirits of the Greeks or in sharpening the nails of the Germans.

8. Supplier to Vattenfall

Chamber members seeking to access the £15 million pound budget of Vattenfall earmarked for local suppliers to the Kentish Flats Extension off the coast of Whitstable are advised to complete and return the attached Expression of Interest Form, if they have not already done so. Chamber member Vattenfall is serious about using local suppliers. Please ensure that you state your ‘Business Category’ with the exact wording of one of the categories listed below. Return the completed form to the email address indicated on the form using the subject line “EoI Form Kentish Flats TEKC”.

9. Vattenfall Supplier Categories

The following categories are recognised by Vattenfall for its supplier list: Accommodation Business and Personnel (Hotels and B&Bs); Building and onshore site maintenance; Car/bus hire; Cable installation companies. Cable joint suppliers; Cable Jointers; Caterers; Cleaners; Composite material suppliers; Condition monitoring systems; Couplings and fasteners; Courier services; Cranes; Divers; electric/fibre optic cables; Electrical equipment suppliers; Environmental response service and materials; Equipment /tool hire; Equipment hoists and lifting gear; fall arrest system services; Facilities management; Fire and ; security protection systems; Fork lift truck suppliers and maintainers; Handtool suppliers (For rigging etc); Hazardous waste collection; Health and Safety equipment – onshore, offshore; equipment and lifting equipment; Helicopter Services; HSE training providers; HV and LV electrical engineers; Hydraulic equipment suppliers; Industrial rope access suppliers; Jointing systems incl specialist adhesives; Lift servicing; maintenance and inspection; Lifting equipment suppliers; logistics/haulage; Lubricant suppliers; Marine Engine Workshops; Marine facilities - harbour; bunkering; general supplies; Marine logistics and consultants; Marine operations and management; Marketing/PR agencies; Materials and tool suppliers; Mooring and navigation system suppliers and installers; Noise monitoring specialists; Office supplies including communication; Paint and protection systems; Portside logistic support and haulage; Printers; Recruitment- office admin; general and offshore operatives; Recycling collection; Safety equipment suppliers and workwear; Scaffolding; Security Services; Shackles and lifting tackle; Sign makers; Slings; Standby generator suppliers; Steel suppliers; Tools (general); Training-  offshore; first aid and health and safety; Transport - airport transfers and local area; Vessels; workboats and barges; Waste management services; Welders; Workwear suppliers; Workwear Laundry services.

 

10. Changes at Pfizer

The latest developments at the Discovery Park, the former Pfizer site, were examined in some detail in the BBC Inside Out South East programme broadcast on 7^th November 2011. It featured the Chairman of the Sandwich Economic Development Task Force, Kent County Council Leader Paul Carter, who promoted the opportunities available for inward investors. He was joined by a somewhat geeky academic, Dr Tim Leunig, who gave a rather brutal assessment stating that “jobs are basically ugly” and that Kent must choose between being “beautiful and bucolic” or sacrifice the countryside “in order to provide lots of industrial premises”. The academic rather ignores the extensive brownfield sites currently available in Kent. He is perhaps not as well researched as he might be. Paul Carter emphasised the hi-tech facilities in Sandwich and pointed to the success of the former ICI site at Runcorn where there are now more people employed than when ICI was in residence. Dr Leunig disagreed, but when asked the question: “Have you been to Runcorn, Tim?” had to admit “I have not been to Runcorn for many years”. This suggests that the academic is perhaps not as well researched as he might be. The programme continued in a similar vein covering Enterprise Zones, intellectual capital, Regional Growth Fund, Infrastructure and Manston Airport. When the discussion turned to education and skills, Dr Leunig informed the audience that he had attended Oxford University but many children in Kent schools from poor families underperform. On green technology and wind farms, he suggested that the case for job creation is weak, perhaps not realising, as Paul Carter pointed out, that Kent has “the longest coastline regions of any county in the country”. The academic is perhaps not as well researched as he might be. See for yourself at http://www.bbc.co.uk/iplayer/episode/b016yvj1/Inside_Out_South_East_07_11_2011///www.bbc.co.uk/iplayer/episode/b016yvj1/Inside_Out_South_East_07_11_2011/

11. News From Dover

Plans for a National War Memorial on Dover’s Western Heights received a boost this month with the launch of a website at www.nationalwarmemorial.co.uk and a film posted at http://www.youtube.com/watch?v=xiInhoAmFfE. Older Chamber members will have noticed increased respect in the last thirty years for those who died in the two largest conflicts of the twentieth century. The objective of the National War Memorial is to provide a permanent physical reminder of the names of the 1.7 million people who died in the service of our country in WW1 and WW2. The proposed white granite walls sitting on the White Cliffs opposite Dover Castle total 1.7 kms in length. Thus, each pace of one metre will represent 1,000 deaths. As visitors pass by seeking their own surnames, there will be an increasing realization of the losses sustained by Britain and the Commonwealth. If we are to demonstrate to young people the human cost of war, then a trip to the National War Memorial could provide a much needed reality check to a generation raised on computer simulations of war games and the hero-worshipping of X-factor contestants. As one Lieutenant-Colonel, a veteran of Northern Island and the Falklands, said last week when visiting the Chamber: “War is not glorious”.

12. Kent For Business

Last Wednesday, Locate in Kent organised a seminar at Darwin College Conference Centre at the University of Kent on the theme “Kent as Business Location”. Delegates were asked to consider what attracts investors to Kent and what might deter them. The general conclusion was that Kent is indeed attractive to companies. Being at once close to London and at the same time benefiting from its proximity to EU, which despite its currency problems, represents the largest market in the world, Kent has many advantages over its competitors elsewhere in the UK. Although Dr Tim Leunig might not agree, see item x above, Kent schools are generally perceived as providing a good education preparing students well for with a wide range of choices in Further and Higher Education. As so much of our exports and imports pass through Kent, this Chamber proposed a slogan “Kent Is Crucial”. We also suggested that unlike the crowded cities elsewhere in England, there are plenty of brownfield sites available where expansion can be accommodated much more easily than in London, Birmingham, Leeds, Manchester or Glasgow. With wage costs at a reasonable level in the East Kent coastal business community, we also suggested “Fashion Your Future In Kent”.  Copywriters will know that the word ‘Kent’ is delightfully short and lends itself to alliteration in phrases such as “Kent Can Do”.

13. More On Manston

Whatever the linguistic niceties, ambitious companies looking at East Kent will take account of the infrastructure developments in our road, rail and air connectivity. The future of Manston Airport will play a large part in these considerations. The night-time flying policy proposed by Manston recommends a limited number of flights between 2300 hrs and 0700 hrs; fewer than two flights per night on average during the restricted period. This level of activity would represent less than 3% of the arrivals and departures during the year and must represent a reasonable offer that might safeguard the airport’s future and the 150 jobs currently directly dependant on its operations. Of the 110 staff employed at the airport, two-thirds live In Thanet and receive the majority of the £2.2 million annual salary bill. If the Airport is to reach its target of over 2 million passengers a year by 2018, it will need to attract an international airline. An enlightened response by Thanet District Council to the night-flying proposals could be of significant value in stimulating the economy and encouraging firms to locate in East Kent. The full text of the proposals can be seen at http://www.manstonairport.com/userfiles/files/Night-flight-policy/Night-time-Flying-Policy-Submission-271011.pdf

 

14. Energy

A mild October following a warm September has produced an equitable balance of supply and demand for energy. Lower prices for gas have contributed to lower electricity costs and a more encouraging outlook for companies heavily dependent on power. Uncertainties over European economies may drive down prices further, although prices for oil continue to rise in the short and long term. The year on year price increases for all the main power sources are having a negative effect on trading margins and must remain a key source of concern in efforts to reduce both the CPI and RPI indices of inflation. We are again grateful to Martyn Young of Atlantic Business Resources for supplying the latest Market Report from E.ON which is summarized below. Now that October is behind us, the new annualized prices are based on April 2012 start dates.

 

15. Commercial Energy Costs

Supply	Year Oct 2010 – Oct 2011	Month Oct 2011
Average front month power contract price	21% higher	9% lower
Average front month gas contract price	38% higher	7% lower
Average front month oil contract price	40% higher	7% higher
Average Annualised power price	10% higher	5% lower
Average Annualised gas price	22% higher	3% lower

16. Yet More About Manston

The Chamber is delighted that an international Airline is taking a close interest in establishing links with Kent International Airport at Manston. The success of the recent Open Golf Championships and the publicity surrounding the 2012 London Olympics have put a new focus on Manston's prime location near London. Easy access to the Channel ports and the  award of Enterprise Zone status to the Discovery Park at Sandwich have confirmed Manston’s status as a viable alternative to the overburdened points of entry at Heathrow, Gatwick and Stansted. The encouraging visitor figures at the Turner Contemporary gallery in Margate and the promise of additional attractions opening in the next few years should produce a sustained increase in incoming tourists. Business traffic will benefit from the turnover growth at Hornby, Cummins, Fujifilm Sericol and Silent Gliss. Better access to more international destinations will encourage companies to locate in this part of the UK where logistical advantages for exporters to the continent complement a currency advantage against the Euro which has grown by over 20% since 2007.

17. Care Home of the Year

We are grateful to Cllr Clive Hart for drawing our attention to the Key Retirement Solutions’ Your Caring Stars of the Year Awards. The winner of the Care Home of the Year for 2011 is Yoakley House in Margate. Michael Yoakley was a Quaker businessman from Margate who made his name and fortune trading with the newly discovered America. The charity in his name was established in 1709 with the proceeds from the kindly man’s will. Executive manager of Yoakley House and the 46 surrounding almshouses is Julie Wickenden who said: “We treat all the residents as if they were members of our own family.” Clive adds: “It really is a wonderful place, an oasis of peace and tranquillity right next to the QEQM that most people wouldn't even know was there. Lovely homes surround beautiful gardens where elderly residents can live securely and in peace and quiet. Good news for Margate!” Good news indeed and another feather in the cap of Margate which has been uncommonly blessed in the past few weeks.

18. Pensions

As stated in previous editions of the Thanet & East Kent Insider, legislation concerning compulsory pension arrangements will come into force in October 2012. Initially targeted at large companies, the full provisions will be introduced over the following few years. Penalties for non-compliance are severe ranging from up to £50 per day for companies with 1 – 4 employees to £10,000 per day for firms with 500 or more workers. The Chamber will be organising briefings on the new arrangements with a view to keeping members  fully informed of their obligations and the options available.

19. The Venerable Elvis & The Euro Crisis

In times of trouble, the Thanet community turns to the one person whose advice has guided successive generations throughout the isle. When the fate of Britain was in the balance through inadequate funding for Wellington’s forces during the Napoleonic Wars, it is reported that it was the Venerable Elvis who directed the government towards the Rothschild brothers whose loan financed the campaign that ultimately defeated the French and preserved our freedom to drink beer in pints and drive on the left. With the financial stability of Europe currently in question, we turn our attention again towards Thanet’s celebrated hermit who lives in a secret dwelling between the disused power station at Richborough and the abandoned limestone quarry at Manston; his whereabouts known only to the Thanet & East Kent Insider. Thus being careful to ensure he was not being followed, our staff member braved the early morning mists last week to make his way to the cave where the great man lives and ponders. The source of the Venerable Elvis’s remarkable knowledge of modern business and current affairs has always been a mystery, but his words continue to inspire leaders in every field. Mindful of Bloomberg’s comment this week that: “Europe’s sovereign-debt crisis stirred political turmoil across the region” and The Guardian’s headline: “Osborne describes situation in Europe as ‘dangerous’”, our reporter asked the Venerable Elvis for his thoughts on where a local businessman could find development capital in these troubled times. After stroking his long grey beard in silent contemplation, Thanet’s spiritual leader finally commented in his thin, aged voice: “Always borrow from a pessimist, he isn’t expecting to be repaid”. We are indeed blessed to have such a sage in our midst.

 

© David Foley, November 2011

Thanet & East Kent Insider

 

29^th October 2011      Issue No.: 173

 

1. Fujifilm Triumphs

We offer our congratulations to Fujifilm Speciality Ink Systems in Broadstairs which has won the Best Process Plant Award in the prestigious 2011 Best Factory Awards. Threatened with a diminishing market in commercial screen ink products in 2005, the company embraced innovation with a radical change in production priorities. Operations Director Colin Boughton explains this as: “Digital was still in low volumes at that time, but we started to realise that it wouldn’t remain a niche market for long.” Not only was Fujifilm obliged to upgrade its machinery and processes to a much higher standard, but it had to re-educate its suppliers to match the premium quality required. Aided by Kaizen quality expert Yoshi Sata, Fujifilm transformed its product lines with spectacular success. High margin digital ink sales have soared to £20 million and now account for 40% of turnover. Lean development is seen as a key driver of profits and this has been accompanied by a wide-ranging waste reduction programme that has reduced landfill from 53% to 10%. Waste materials are now routinely shredded, reprocessed and may appear as car bumpers, that’s fenders if you are an American, or animal bedding. Gary Burgess who carries the unreduced title of Lead Facilitator Lean Development Fujifilm Speciality Ink Systems Limited summed up the philosophy of his company in empowering the workforce: “Every employee is an expert in their own square yard”. There are plans to add an extra 1,800 sq. metres of factory space to the Broadstairs plant. Colin Boughton, Gary Burgess, Barry Cooper and all the management team at Fujifilm have shown what great management can bring when allied to excellent quality control and a happy workforce.

 

2. News For Commercial Property Owners

We are grateful to James Galbraith of County Financial Services, tel: 01843 265070, for drawing our attention to the Business Premises Renovations Allowance (BPRA). He tells us that the BPRA was due to expire on the 11th April 2012 and adds: “However in the budget announcements earlier this year, the Chancellor of the Exchequer, Mr George Osborne, declared the scheme would be extended by a further five years from this original date of expiry The BRPA was originally established with the sole aim to encourage the conversion and renovation of empty business premises in designated, so-called “disadvantaged” areas, by the introduction of a 100 per cent tax relief incentive. This relief allows a property owner of a qualifying building to claim 100 per cent tax relief for any qualifying capital expenditure when converting or renovating a disused commercial property.” This will interest some owners of commercial properties who might like to give James a call for further information.

 

3. Harington’s Halloween Homilies

Chamber member John Harrington of Harrington Associates, tel: 07810 713023, publishes a quarterly guide for businesses. Entitled Business Alert, it is full of useful tips and guidance to help your business prosper. John sprinkles his sound business advice with readable snippets and references to recent publications, together with his own comments on contemporary events. In his column “The Way I See It”, he turns his attention to the results of a survey of 2,453 Londoners and 600 small and medium-sized companies. He is understandably shocked by some of the findings from 18 – 24 year olds and concludes: “It seems as if we have now bred a generation that fears the pressure and responsibility of starting a business. Now that terrifies me more than bird flu!” He adds later: “The fear of the unknown is often worse than the reality. The over-55s have experienced real stress and found ways to deal with it, whilst the youngsters fear the thought of it. Whatever happened to the invincibility of youth?” There is much comfort here for the older members of the Chamber, although not everyone will agree with John’s final speculation: “Maybe the Princes’ Trust should merge with the Samaritans.” To find some helpful suggestions for your business or if you just want a good read, see John’s thoughts at http://www.harrington-associates.co.uk/images/newsletters/harr.assoc.newsletter.oct.2011.pdf   John Harrington is an accredited Executive Associate at the Institute for Independent Business.

 

4. Business Advisory Clinics and One Million

The Chamber’s Business Advisory Clinics in Broadstairs and Dover have access to benign investors in the East Kent Coastal Business Community who collectively have more than one million pounds available for investment in companies trading in the Dover and Thanet districts, subject to certain terms and conditions. Start-ups and established companies may qualify. Applicants to this fund should make an appointment to attend one of the Business Advice Clinics which take place in Broadstairs on the first Friday of the month and in Dover on the first Wednesday of the month.   Due to staff holidays, the booking desk will be closed for the week commencing Monday 31^st October 2011 but will reopen on Monday 7^th November 2011. All applicants should email This e-mail address is being protected from spambots. You need JavaScript enabled to view it to arrange an appointment.

 

5. HMS Jervis Bay

Saturday of next week is not only the anniversary of Guy Fawkes’s failed plot to blow up parliament, but it also marks the day when HMS Jervis Bay, an armed merchant ship, attacked the German pocket battleship Admiral Scheer in 1940. Captain Fegen of the Jervis Bay was awarded a posthumous Victoria Cross for his actions and the grateful thanks of the crews in the 32 ships of the 37 ship convoy he was protecting who escaped as a result of his ship’s gallant attack. SWIFT Codes for all Banks in Australia   The Admiral Scheer, officially listed as a heavy cruiser of the Kriegsmarine, had a top speed of 20 knots and boasted 6 x 28 cm guns in triple turrets, 8 x 15 cm guns in single turrets and 8 torpedo tubes. She was the most successful capital ship commerce raider of WWII. By comparison, the former SS Jervis Bay of the Aberdeen and Commonwealth Line was an aging steamer built in 1922 with a few pop guns and a maximum speed of 15 knots. “Like a bulldog attacking a bear” was the description of the action by Captain Tony Braithwaite of the Honourable Company of Master Mariners speaking from the pulpit at a commemorative service at Chatham Historic Dockyard last year. Our many members in the maritime sector will be pleased to know that the names of the 253 merchant sailors and Royal Navy crew who perished in the short, sharp battle will be among the 1.7 million fatalities to be commemorated on the National War Memorial proposed for Dover’s White Cliffs. As the architect, John Pegg explained: “It is important that we engrave the names of those killed in the merchant navy as well as those in the armed services”. The War Graves Commission has made a splendid film of the Jervis Bay service which can be viewed at http://vimeo.com/16928428.  As we approach Remembrance Day, the account puts the actions of the rioters in Tottenham and Croydon in a proper perspective.

 

6. Marketing East Kent

The Thanet & East Kent Chamber has been invited by Locate In Kent to bring forward views on how Kent may be marketed in order to attract more inward investment from the UK and overseas. We welcome the contribution of Chamber members who should address their comments by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

7. Emergency First Aid

First Aid is just one of the many courses available at Chamber member ISS Training. Courses can be delivered on-site or at the company’s training suite at Manston. Options include Customer Care, Health & Safety, Fire Prevention and Manual Handling. Bespoke training packages are also available by arrangement. The next Emergency First Aid at Work course is scheduled to begin on 28 ^th November 2011. For details of this and all other ISS programmes contact Clare Baker by telephone to 01843 825932 or by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  Other training providers of interest to members include Avanta Enterprise Ltd of Ramsgate tel: 01843 570250; Canterbury Christ Church University of Broadstairs and Canterbury tel: 01227 782196; Maximus Employment & Training of Ramsgate tel: 01843 808410; Profile Development & Training of Broadstairs tel: 01843 609300; St John Ambulance of Maidstone tel: 01732 876417; Training Solutions of Manston tel: 01843 821580 and TVCSF of Ramsgate tel: 01843 609686.

 

8. Disability Hub Conference & Laura Sandys MP

Chamber member TVCSF hosted a Disability Hub Conference at St George’s C of E School in Broadstairs yesterday, as announced in previous editions of the Thanet & East Kent Insider. A more detailed report will follow in the next edition, but it is worth noting the opening speech by Laura Sandys MP, who is Chairman of the all-party group at Westminster on epilepsy. She said: “I am keen to take away the stigma from epilepsy.” She related that Prime Minister David Cameron had committed to work with her in this important area. Readers will recall that David Cameron’s own son Ivan died at the tender age of 6 years after suffering from severe epilepsy and cerebral palsy. Laura also highlighted the need for greater public understanding of mental health: “One in five people will have at some point some form of mental health condition”. She added that mental health issues may not be an exciting area, but promised: “3,600 additional therapists in the community in mental health”. Benefit claimants will have new opportunities to work on the basis that: “The opportunity is there if you have the capacity. The new emphasis will be on what you can do, not what you can’t do.”

 

9. Business Inspection Shake Up

Jon Cleverdon of Cleverdons Accountants informs the Chamber that a major overhaul of the government’s business inspection regime is expected. In a report on a speech by Deputy Prime Minister Nick Clegg, we understand that HMRC, the Environment Agency and the Health and Safety Executive have been instructed to be more business-friendly and to “understand that their job is to make businesses lives easier, not harder.” A reduction in the number and frequency of inspections is promised with a maximum of two visits a year to be introduced under the new guidelines.

 

10. Thanet District Council

On Wednesday, 19^th October 2011, members of the Thanet & East Kent Chamber’s Business Development Forum met at the Kent Innovation Centre in Broadstairs for a liaison meeting with three senior staff at Thanet District Council; Sue McGonigal, Chief Executive, Madeline Homer, Director of Community Services and Louise Askew, Economic Development Manager. The event follows the concerns expressed by the Chamber’s Planning Forum in the light of recent decisions by the Council’s Planning Committee.  Unsurprisingly, the Council’s refusal of planning permission for a proposed Golf Academy at Manston was cited as an example of where a more business-friendly approach was required. One hotelier remarked that Thanet could be an all-year-round centre for golf breaks if the Council showed a more energetic approach.

 

11. Thanet District Council and Delays

One major investor in Thanet noted the six-figure costs he had accumulated through delays in getting a response from TDC’s planning department and said that such delays acted as a significant disincentive to investment. There was general agreement to the recommendation that TDC’s promotion of Thanet should be much more business-like with a greater emphasis on supporting job creation and inward investment. Comparisons were made with neighbouring councils where companies receive a pro-active service that extends to out-of-hours exchanges and positive encouragement to business development and start-ups. One delegate noted that four years previously, the Audit Commission had invited comments on the Council’s attitude to business and had received warm approval of its assistance to companies of all sizes. It would be most unlikely to receive the same response today. The Council has yet to respond to the invitation to support the Chamber’s successful Business Advice Clinics which have been operating since last April.

 

12. Thanet District Council and Printing

There were many comments regarding the Council’s procurement policies. The meeting heard that the Council outsources printing to companies in Northampton, Eastbourne, Rochester, and London. The Council’s ‘Buy Local’ policy apparently does not extend to its own backyard. No Thanet company is on the approved list of printing suppliers. 

 

13. Thanet District Council and Surveying

In a similar vein to the printing issue, a local chartered surveyor said that contracts for local survey work were routinely given to London-based companies who would then telephone him to ask for his advice. He added that the Council’s predilection for London was in some cases resulting in invoice costs three times higher than would be the case with a suitably qualified local supplier.

 

14. Thanet District Council and Information

The owner of an accommodation and tourism facility welcoming over 10,000 visitors and guests a year found it difficult to source information from the Council on local events. As with other Chamber members, he felt that the contribution of his company to the local economy is not acknowledged or appreciated by the Council. The Chamber has calculated that the business in question adds over £1 million pounds to the visitor spend in Thanet. Another Chamber member who supplies dry foods to independent retailers predicted dire consequences in Margate if the Tesco development were to be allowed. His company has a turnover in excess of £4 million but has found it increasingly difficult to justify its continuing location in Thanet.

 

15. Thanet District Council and Employment Services

The Council was asked to examine why it does not use the Managed Services for Temporary Agency Resources (MSTAR) Framework as “it would produce cost savings and greater efficiency”. The system was commissioned by the Local Government Professional Services Group (LGPSG) as a national framework for managed services for agency workers.

 

16. Thanet District Council and Website

Attention was drawn to the Council’s website and its promise that “Thanet is open for business”. A printout of the the website that morning under the menu title Business Support Organisations showed Business Link, which has wound down its operations and will formally end all regional support on 25 ^th November 2011. Also listed was SEEDA which has effectively ceased its support mechanisms prior to its closure next spring.  Members called for greater support for companies and organisations with their main headquarters in Thanet. It was agreed that as the largest business support body in Thanet, the Thanet & East Kent Chamber, is well placed to serve as a source of communication between the Council and local businesses.  

 

17. Thanet District Council and Future Plans

The meeting heard that cuts in spending and staff had affected the Council’s operations. We also learned that a new Regeneration Manager is due to start work soon and that he or she would focus on some of the issues raised. Apparently, a Thanet Regeneration Board had been established by the Council. Members have received no details of this and we have yet to hear of how this is constituted and who will be represented on the board. We will keep our many readers posted on developments. The next meeting is due to take place before Christmas when it is hoped that Cllr Bob Bayford, Leader of Thanet District Council, will be in attendance.

 

18. Honeymoon Period

Regular readers will know that from time to time we report on the progress of the Doncaster Rovers football team. Supporters of this South Yorkshire club are not renowned for their consumption of prawn sandwiches. They not only maintain a high tolerance of basic foods, but have a resigned acceptance that victories are rare and the traditional virtues of honest endeavour are not always rewarded when faced with bigger budgets and imported foreign stars from more fashionable clubs. Indeed, fashion and Doncaster do not often occur in the same line up, whereas ‘languishing’ and ‘defensive lapses’ make regular appearances with ‘consolation goal’ marking the occasional crumb of comfort. Recording just two wins in the last six months, the honeymoon period for new manager Dean Saunders appears to be over. It was no surprise on Saturday 22 ^nd October when the Doncaster team was beaten by a handsome margin away from home by Portsmouth FC. What did surprise one Chamber member, a life-long Pompey fan, who witnessed the match, was the presence of a couple whose honeymoon has yet to begin. There was the bride complete in a voluminous white wedding dress sitting in the home stand next to her new husband who was avidly watching the game. What surprised him even more was the comment of a grizzled, long-suffering Doncaster fan; there were a surprising number of die-hard fans who had made the trip from South Yorkshire. Having espied the young bride across the pitch, he turned to one and all and declared: “That just isn’t right on her wedding day. Not right at all. The bridegroom, he has gone too far, much too far. She’ll be expecting to go to the match every week from now on.” They breed them tough, up north.

 

© David Foley, October 2011