Chamber News

In 2015, the European Commission carried out a consultation regarding the Impact Assessment accompanying its recommendation to launch negotiations for updating the EU-Mexico free trade agreement (FTA).

The negotiations were then formally launched in June 2016 and the Commission has now decided to invite interested parties to share their views on what they consider key aspects to be addressed through the modernisation of the FTA.

It is particularly interested in collecting practical experience from companies of doing business with Mexico.

The consultation details can be found atec.europa.euand the deadline for submitting comments is 25 January 2017.

To facilitate the treatment of the information collected, the consultation includes a questionnaire structured according to the different chapters that are currently under negotiation with Mexico.

While responding firms are invited to structure their reply accordingly, using the online form, they also have the opportunity to add additional points which they think the Commission should address.

More information about EU-Mexico Trade relations, including information about the rules and requirements affecting both imports and exports, can be found atec.europa.eu.

The funeral of Norfolk Chamber’s past presidentJohn Murfitt will be held on Wednesday 16 November at 2pm. The service and burial will be held at Greenacre Woodlands Cemetery in Colney, South Norwich.

If you are a business colleague and wish to attend, please can you advise by return email, so we can advise the family of expected numbers:cw@norfolkchamber.co.uk

In the previous quarter, Norfolk businesses reported a mixed picture. Norfolk manufacturers enjoyed improved domestic and export sales compared with the previous quarter and many benefitting from sterling’s recent fall.

Meanwhile, the balance of Norfolk’s service sector firms reported improved domestic but their export sales was at a low level. Uncertainty following the vote to leave the European Union had led many Norfolk businesses to lower their expectations for hiring, turnover, and investment in plant, machinery, and training.

Overall the Q3 survey results suggested that the Norfolk and UK economy was still growing – albeit at a lower level than before the EU referendum – which supported the BCC’s forecast for growth of 1% in 2017.

So how well is the Norfolk business community doing now? Today (Monday 07 November) is the first day of the fieldwork period for the Q4 Quarterly Economic Survey (QES). It is more important than ever that as many Norfolk businesses as possible complete the survey.

The QES is the largest independent business survey in the UK and is used by both the Bank of England and the Chancellor of the Exchequer to plan the future of the UK economy. It is also closely watched by the International Monetary Fund.

You can have your say by completing the QES online NOW, which takes less than 3 minutes. The completion deadline for this survey is midnight on Monday 28 November 2016.

Some key Norfolk findings from the Q3 2016 survey:

• Overall, the figures for both the Norfolk manufacturing and services firms indicate growth, but at a slower pace than before the referendum
• The balance of Norfolk firms reporting an increase in advance export orders is +13, up from 0. One factor may be the fall in sterling, which has made some UK manufacturers more competitive.
• Fewer firms in both sectors expect to take on staff in the next quarter. For services the balance for firms (+18, down 5) is the lowest since Q2 2013
• The balance of Norfolk services firms reporting improved domestic sales fell sharply to +10 from +21, while the advance orders balance fell from +19 to +0 – indicating a significant slowing of growth. This was reflected in the results for the East of England and nationally
• Norfolk firms in both sectors have reported that the exchange rate is a greater concern to their business than three months ago, with 38% of services businesses (up from 12%) and 68% of manufacturers (up from 19%).

Norfolk Chamber is very proud of our Chief Executive, Caroline Williams, who won the ‘Outstanding Achievement Award’ at the EDP Business Awards last night.

Caroline was presented with her award by Mark Pendlington, Group Director for Anglian Water. It was given in recognition of her tireless commitment to representing the business community in the county over nearly 17 years.

Fifteen awards were handed out during a glittering awards ceremony, held at the Norfolk Showground and attended by more than 450 guests.

The Greater Cambridge Greater Peterborough LEP has voted firmly in favour of devolution for Cambridgeshire and Peterborough at their latest Board meeting this week.

In a unanimous decision, the Board voted in favour of the current proposals for Devolution that will see more money and powers brought to the local area.

The endorsement by the Board follows consultation with a wide variety of businesses over the summer, and reflects the much improved Devolution Deal that is now on offer.

The GCGP LEP will be a full voting member of the proposed new Combined Authority, enabling them to fully represent the views of businesses and work closely with the Mayor.

Neil Darwin, Chief Executive of Greater Cambridge Greater Peterborough LEP said:

“The LEP will be a full voting member of the proposed new Combined Authority, enabling us to fully represent the views of businesses and work closely with the Mayor. We are the first of thenew Combined Authority partnership to fully back the plans, and hope that others follow our lead in securing this deal.”

Heather Garrod, President of West Norfolk Chamber Council said:

“Devolution could bring many opportunities to West Norfolk and Norfolk Chamber will work closely with the GCGP LEP to ensure that businesses in our region can take advantage of those opportunities to help them to deliver economic growth and jobs.”

The UK and India’s “current trading relationship is strong but, more importantly, there is so much future potential”. These were the words of the UK’s International Trade Secretary, Dr Liam Fox MP, on a visit to India in late August.

The fact that four UK ministers visited India since July 2016 highlights the renewed focus on the importance of this economic relationship. As the UK sets about exploring new bilateral trading partnerships with the rest of the world, it will be starting from a position of relative bilateral strength with India.

The UK is the biggest G20 investor in India over the past 14 years. Some 530 British businesses employ almost 700,000 people in India and have an estimated combined revenue of US$54 billion in India, according to the Sterling Assets India Report by CBI, PwC and the UK India Business Council. At the same time, India is the third largest investor in the UK. Indian companies invest more in the UK than the rest of the EU combined. More than 800 Indian companies currently operate in the UK, employing more than 110,000 people, a Grant Thonrton report has shown.

Additionally, with the increasingly positive momentum in the Indian economy and the opportunities continuing to be offered within the UK, we expect two-way progress in trade and investment to continue. Still, the signing of a comprehensive bilateral economic agreement – comprising a trade agreement covering goods and services and a bilateral trade agreement – should act as a huge catalyst to establish bilateral economic relations on an entirely new footing into the 21stcentury.

So far so good. However, the reality is that until Brexit plays out and our ongoing relationship with the EU is decided, the UK remains part of the single market and as such is prohibited by treaty to negotiate any form of bilateral agreements – trade treaties and bilateral investment treaties included. Prime Minister Theresa May has promised to evoke Article 50 by March 2017. It is estimated that it will take two years for discussions on Brexit to be concluded before any direct G2G discussions can commence let alone agreement reached. As a result, signing of a bilateral economic agreement with India could be a way in the future.

Is there anything that can be done now? The short answer is ‘yes’. There has already been an announcement from Dr Liam Fox MP and the Indian Minister of Commerce, Nirmala Sitharaman, that they will convene an ongoing dialogue on what the shape of future trade policy should look like. These discussions will be an important building block in establishing common purpose in any economic dialogue.

The current landscape

Until then we must focus on the current realities – the bilateral economic numbers are good, individual line items could be improved. In absolute terms, UK-India bilateral trade grew by 170% between 2004 and 2014. Yet, India’s overall trade grew by 800% in the same period. In relative terms, UK-India trade fell by around 8% in 2014-15. Additionally, India’s goods exports to the UK grew by 226% between 2004 and 2014. The UK’s goods exports to India grew by 153% in the same period.

In 2015-16, the UK was just India’s 12thlargest trading partner. India trades more with Indonesia, Germany and Japan, than with the UK. Plus, despite the UK being the second largest exporter of services in the world and India having the second fastest growing services sector with a CAGR of 9%, UK-India services trade is disappointingly low. In 2014, the UK imported over 10 times more services from the US than it did from India, and the UK’s service exports to India makes up just 7% of its total service exports to Asia.

At present, Indian companies can buy from and invest in the UK 10% more cheaply than in June, due to the depreciation in Sterling. Indian businesses will find UK companies are increasingly looking to India for partnerships. And, of course, the UK economy remains fundamentally strong – it is the fifth largest economy in the world, the second fastest market in the G7, and one that, in the words of PM Theresa May, is “bold and outward looking.” Just like India.

For UK companies, India is increasingly open to FDI and it is moving up the ease of doing business rankings. Just as importantly, there is a rising interest demand for UK goods, services, technology, and know-how to help achieve the goals set out in programmes such as Make in India, Digital India, Skill India and Swachh Bharat. And there are several areas where more bilateral trade and investment can bring near term benefits to both countries.

The opportunity is now

Time waits for no-one and it is important that companies don’t wait for the Brexit dust to settle and a comprehensive bilateral economic agreement to be inked to do business – the opportunity is now.

A comprehensive bilateral economic agreement does need not be in place for bilateral economic relations to grow. The UK India Business Council continues to argue there is an important mutually beneficial relationship which can be built between India and the UK based on the development of technology and innovation within the UK to the benefit of Indian industry and economy. The opportunities are multiple for UK and Indian businesses to buy and sell right now. A comprehensive UK-India bilateral economic agreement would help further unlock the relationship’s full potential. Here is selection of examples:

Consumer-focussed products.Domestic, consumer-led, consumption are significant drivers in both the UK and Indian economies. Yet there is little trade in the food, drink, fashion, beauty products and FMCG goods. Although textiles and garments are in India’s top five exports to the UK and spices in their top 10, much more can be done in both directions. Looking into India, UK companies will find a fast-growing, aspirational and value conscious consuming class with an affiliation to British brands.

Make in India.There are several manufacturing sectors that offer substantial scope for UK-India innovation collaborations, however, defence and aerospace are perhaps the most prominent. India has extensive modernisation plans for the defence sector, increasing its FDI in defence to 100 per cent from 26 per cent just two years ago.

Healthcare.India is currently looking to roll out universal healthcare – the UK’s NHS system is a prime example of delivery of this level of care and it would be beneficial for Indian healthcare providers to work with their UK counterparts. At the same time, India’s innovative and top quality healthcare providers have developed processes and systems that could be applied in the NHS.

Will it be easy?

Such a comprehensive bilateral economic deal would be a great prize for both countries, but it won’t come easy. The negotiators will need to navigate some of the same issues that exist in the currently stalled EU-India FTA deal. These include:

• The elimination /reduction of tariffs for cars, wines and spirits.
• Addressing key non-tariff barriers, such as licensing, customs regulations etc.
• Improved access to the Indian public procurement market.
• Harmonisation of regulations and standards .
• Liberalisation in India of service sectors such as legal, accounts and maritime services.
• Mode 4 – temporary access to the UK for Indian skilled professionals
• The recognition of India as a ‘data secure’ nation.

On top of these specific issues, UK-India negotiations will take place in a world where populist political rhetoric has led to public protest against globalisation and trade-deals. Specifically, the Trans Pacific Partnership Agreement, the Transatlantic Trade and Investment Partnership, and CETA – the Canada-EU deal.

Opportunity for optimism

Nonetheless, with political leadership and will on both sides, there is a good deal to be done that will create jobs and growth in both countries. There is much cause for optimism, for three reasons:

First, a reason the EU-India FTA negotiations have stalled is a lack of engagement at the ministerial level. That has and never will be an issue between the UK and India. The flow of Ministers in both directions is wide – ranging across departments – and constant. Since Prime Minister, Theresa May MP formed her Government, four UK Ministers, three of them from the Cabinet, visited India – Dr Liam Fox, Secretary of State for the new Department for International Trade Minister and separately from his Minister of State Greg Hands, from Secretary of State for DFID, Priti Patel MP and from the FCO Minister for Asia, Alok Sharma MP. Moreover, this does not include the interactions between the two Prime Ministers in the margins of the recent G20 Summit in China. The rapidity and seniority of these discussions illustrates the UK Government’s intent.

The second reason for optimism is that UK and Indian businesses are already tightly entwined, evidenced by the strong investment relationship. Business leaders therefore know the opportunities to be had by a trade deal, and will show the type of leadership and flexibility needed in support of ministers and negotiators.

Thirdly, to help redraw trade relationships with world-leading countries, like India, the UK Government has set up the Department for International Trade, headed by the Rt. Hon Dr Liam Fox MP, and supported by a team of three ministers, including Lord Price, a former businessman, who has responsibility for trade deals. This shows real intent to make things happen.

The long-term wins

The negotiation process will be difficult, and may not be quick. But there is optimism and positivity on both sides that a deal can be agreed. Recognising the complementary nature of our economic strengths and objectives, there is also currently much goodwill in the relationship.

The devil, as ever, will be in the detail. So, when the discussions turn into negotiations, and obstacles emerge, it will be important that political and business figures retain the positivity and goodwill. They must also show the leadership needed to reach a deal that enables the potential in the UK-India relationship that Dr Fox so rightly highlighted to be realised.

Representatives from Norfolk Chamber, Norwich BID and Norfolk County Council met this week to share the work that Norwich BID have been doing in relation to mapping the traffic usage around the inner ring road and the centre of Norwich.

The software uses Google Maps and tracks mobile phones and can highlight any traffic issues and congestion. The data is refreshed every 15 minutes and has been in place since the summer. Data is also being added in to account for weather conditions.

Norfolk County will be looking at their own existing data to validate the data that Norwich BID have collected. All parties are looking at ways to work together to make the best use of the data and how it can help improve access into Norwich. Norfolk County Council have agreed to carry out a traffic survey of the inner ring road in Spring 2017.

Norfolk Chamber has launched a new Transport and Infrastructure Group. The aim of the group is to consider all aspects of transport infrastructure that impact on Norfolk businesses being able to grow. They will look to lobby and influence the decision makers to gain improvements for the benefit of business in Norfolk and ensure that the views of business are heard.

Members of the group include Norse, Aviva, Westcotec, Jack Richards & Sons and is chaired by the Chamber President, Jonathan Cage, Managing Director of Create Consulting Engineers.

All agreed that reliability of Norfolk’s transport systems is paramount to all businesses and the group also want to look at how technology will play a key role in the future of transport. Topics to be covered at future meetings include: improvements to the A47; Norwich city connectivity; rail links from both Norwich and King’s Lynn to London; and how to make the most of the A47 and A11 growth corridors.

Jonathan Cage, Managing Director of Create Consulting Engineers said:

“We want to ensure that Norfolk has transport infrastructure that is fit for the 21st century. Journey time reliability, safe roads and fast efficient rail services would enable Norfolk businesses to deliver economic growth and jobs for our region.”

If you have a Norfolk transport or infrastructure issue that you would like the Transport and Infrastructure Group to consider, please email details to: Nova.fairbank@norfolkchamber.co.uk

From opportunities to get more involved in improving your neighbourhood to a proposed increase in council tax, Norwich City Council wants to hear from the local business community.

They are consulting on their budget for 2017-18 and this is your chance to share your views. The survey runs until Sunday 8 January 2017 and any comments received will be considered by councillors when they meet in February 2017 to set the budget.

Have your say now

Reepham Road will be closed from early on Monday 14 November for five days (to Friday 18th) to complete construction of the NDR roundabout and tie in the surface to the existing carriageway.

The work, which will involve the use of heavy plant, will be carried out between 7am and 7pm, but the road will have to remain closed to all traffic throughout, including pedestrians and cyclists.

Diversion route Traffic approaching the closure from the north will be diverted via Fir Covert Road, the A1067 Fakenham Road, Boundary Road (Norwich Ring Road), returning to Reepham Road at the Boundary Junction. Traffic approaching the closure from the south will be diverted in the reverse direction.

Local access The physically closed stretch of Reepham Road will be between Furze Lane and Drewray Drive, allowing access to Thorpe Marriott from the Norwich direction via Long Dale and Drewray Drive. Access to other premises on Reepham Road will be from one or other side of the closure.

Other NDR traffic management Diversion of utility services, including gas, water and sewerage, electricity and telecom, is continuing at a number of points along the NDR, including Holt Road, Wroxham Road and North Walsham Road. Temporary traffic control may occasionally be needed. Where possible, advance warning will be given, but these signalsmay be imposed and removed at short notice, depending upon the work being carried out.

For many years Norfolk was the forgotten county. To get any investment we had to really fight our corner and in many cases we were unsuccessful.

In recent years this has started to change. The public, private and third sector are working increasing closely together to secure the best possible outcomes for Norfolk’s residents and business community.

Through the partners working together the Chamber has seen many positive changes over recent years including: A11 dualling, NDR, Norwich Cambridge Tech Corridor; investment in our universities and colleges, Kings Lynn Enterprise Zone and the Innovation Centres, to mention just a few.

However there is still a lot to be done and the UK economy is weakening with the prospect for another recession in 2020. We therefore need to ensure that we take every opportunity open to us.

As seen in BCC QES economic surveys, Norfolk businesses are not feeling confident. This is due to current weak trading conditions and uncertainty due in part to the Brexit vote.

This lack of confidence is translating into less financial investment, less job opportunities, a weaker local economy and fewer opportunities for Norfolk’s young people and residents.

However on the whole the business community believe that the Devolution deal on the table could help improve the Norfolk business environment. Suffolk, Peterborough and Cambridgeshire Councillors are all voting for the deal, but our Norfolk County Councillors are divided and may stop this happening at the end of November.

As a starting point, the Devolution deal will give us over a 30 year commitment:

• Control over a guaranteed £225m transport budget for the next 4 years.
• £30m funding over 5 years to support the building of new homes across Norfolk and Suffolk
• Over lifetime of deal 200,000 homes are expected to be delivered.
• Control over an existing c£20m annual adult skill fund
• Control of an existing c£2m annual Apprenticeship grant for employers
• Greater control and influence over transport services across Norfolk
• More control and influence over invest and maintenance in key roads
• A commitment to providing superfast broadband and improved phone reception

The Norfolk business community is not naïve. We understand that there are risks involved in the Devolution deal on the table. But they have weighed up the options of our Councillors signing this deal or walking away and we want to see Devolution deal on the table signed.

The Government is very clear that this is the way they will distribute funds in the future, we do not want Norfolk to slide back into invisibility!

If you agree with us, we need you to let your local county councillor know. You can do this by advising us who your councillor is and providing us with your comments. We will then collate all the comments and share them with each councillor. You can find out who your councillor is by going to the following place: https://www.whereilive.norfolk.gov.uk/

More details on devolution can be found on: https://www.eastangliadevo.co.uk/

Norfolk Chamber recently hosted a roundtable event, in partnership with London Heathrow Airport, involving 16 Norfolk businesses.

The objective of the roundtable was to gather local business representatives together to discuss the opportunities that exist within the Heathrow Airport supply chain and how businesses can be more involved in their future expansion plans.

Heathrow were keen to engage with Norfolk businesses to further understand the business capabilities in our region and hear local views. Discussions centred around the challenges that Norfolk businesses face in joining Heathrow Airport’s supply chain and David Ferroussat, the Infrastructure Procurement Director and Sophie Carter from their Public Affairs Department answered questions about the possible expansion of Heathrow Airport.

Expansion at Heathrow has the potential to create 180,000 jobs and 10,000 apprenticeships. It will allow for 40 additional long haul destinations and more regional connectivity to local airports such as Norwich International Airport.

Should the expansion of Heathrow be agreed next week, the construction period would run from 2020 to 2026. The supply chaincould involve over 8,500 suppliers from large to SME. Heathrow were very keen to identify that there were plenty of opportunities for Norfolk businesses to be included within the supply chain. Any business that wants to be involved canregister on Heathrow’s procurement website – click here for details.

In addition, Heathrow are holding a business summit on Tuesday 08 November and invited businesses to register their interest using the following link:https://www.heathrowbusinesssummit.co.uk/

Discussions also centred around the need for future skills and ensuring that the next generation will be inspired with the support of large infrastructure projects, such as the Heathrow expansion.

Jonathan Cage, President of Norfolk Chamber said:

“It is important that Norfolk businesses, especially SMEs, take advantage of the opportunities that large scale projects such as the expansion of Heathrow could deliver. Whilst a large scale international company is likely to be the lead, there are still plenty of opportunities for Norfolk based companies to subcontract and supply specialist knowledge, skills and demonstrate good use of innovation and technology.”