Economic Development Service Plan 2015/16
Economic Development Service
2015-16 Service Plan
[Services to add suitable picture]
Supporting Development Department’s vision:
“Enabling our communities to develop their potential”
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Economic Development Service Plan 2015/16
Contents
Introduction ......................................................................................................................................................... 4
Vision Statement ................................................................................................................................................. 4
Drivers for Change.............................................................................................................................................. 5
About Us .............................................................................................................................................................. 5
Who We Are .....................................................................................................................................................................................6
Organisational Chart ......................................................................................................................................................................6
Locations .........................................................................................................................................................................................7
Governance .....................................................................................................................................................................................7
Regulation and Compliance ...........................................................................................................................................................7
What We Do .....................................................................................................................................................................................7
Our Customers ................................................................................................................................................................................7
Our Costs and Income ..................................................................................................................................................................10
Funding and resources ................................................................................................................................................................11
Aims and Objectives......................................................................................................................................... 12
Detailed Actions/Plan for Change.................................................................................................................... 14
Previous Actions Completed in 2014/15 ........................................................................................... Error! Bookmark not defined.
Ongoing Actions/Projects Started prior to 2015/16 ......................................................................... Error! Bookmark not defined.
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Economic Development Service Plan 2015/16
New Planned Actions Due to Start in 2015/16 .......................................................Error! Bookmark not defined.
Risks to Delivery ............................................................................................................................................... 19
Performance Indicators .................................................................................................................................... 20
Performance Indicators from Council Wide Performance Measures .......................................................................................20
Key Directorate Indicators ...........................................................................................................................................................21
Directorate Performance Indicators from the Local Government Benchmarking Framework...............................................22
Directorate Performance Measures from the Shetland Single Outcome Agreement .............................................................23
Other Performance indicators .....................................................................................................................................................23
Contact Details.................................................................................................................................................. 23
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Economic Development Service Plan 2015/16
Introduction
Each Service within the Council is required to produce a Service Plan for the upcoming financial year. This Service Plan provides an overview
of the Economic Development Service for 2015/16, and contains information on major activities, aims, objectives, actions, targets, resources,
performance indicators and risks.
Service plans are approved and “signed off” by the relevant Director as part of the Executive Manager’s Employee Review and Development
process.
Vision Statement
The Economic Development Service is part of the Development Services Department and is committed to supporting the Vision of “enabling
our communities to develop their potential”. In order to enable this vision the Shetland Economic Development Policy Statement 2013-17 has
an aim to “improve the economic well-being of Shetland by promoting an environment in which newer industries develop alongside thriving
traditional industries”, with the following objectives:
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Link skills and knowledge development to economic need
Develop the economic health of local communities and a more diverse business base, through encouraging innovation and sustainable
growth
Encourage research and adoption of enabling technologies and infrastructure
Develop local control and management of resources
Improve the reputation of Shetland as an attractive place to live, work, study, visit and invest.
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Economic Development Service Plan 2015/16
Drivers for Change
In the course of the Council’s savings exercise, and in the context of the Medium Term Financial Plan, the Economic Development Service is in
the process of making over 70% savings on its 2010-11 budget. The service is on course to deliver these savings targets in full in its 2014-15
budget.
Budget reductions on the scale required by adherence to the Council’s Medium Term Financial Plan have required the Service to change its
approach to service delivery while maintaining key development objectives. This has been achieved through the adoption of the objectives
within the Shetland Islands Council Economic Development Policy Statement 2013-17 and the actions and measures required to realise these.
The Policy Statement was adopted by the Council in August 2013.
Now, at the half way point of the 2013-17 Council, the Service has been instructed by the Council to undertake a review of all its functions to
make sure that service delivery continues to be in line with Shetland’s economic development demand. This work will commence in early 2015
with completion of the full review expected in summer 2015.
About Us
The Service has been in place since 1975 and was placed in the Development Services Department following the reorganisation and
management re-structure of the Council in 2011. The Service comprises the following main activities:
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Business Gateway
Grant and loan support
Promoting Shetland
LEADER
Economic Research
European policy and funding engagement
Shetland Telecomm
Arts and Culture
Core funding of key industrial infrastructure services
Engagement, co-ordination and support for key industry panels/associations/steering groups/development groups, including strategic
partnerships for delivery of Single Outcome Agreement objectives
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Economic Development Service Plan 2015/16
Who We Are
This Service sits within the Development Services Department and is lead by the Director of Development (Neil Grant).
The following Services are also part of Development Services - Shetland College, Community Planning & Development, Housing, Planning and
Transport Planning.
Organisational Chart
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Economic Development Service Plan 2015/16
Locations
The Economic Development Service is located in Solarhus, 3 North Ness Business Park, Lerwick and comprises 13.8 FTE staff. Two staff are
located in the Shetland Telecomm office at 4 Market Street.
Governance
The Economic Development Service is part of the Development Services Department and reports to the Development Committee.
The Service’s performance is reported to the Directorate Management Team on a monthly basis, and three Performance Indicators from this
plan are reported on a quarterly basis to the Development Committee as part of the Department’s performance report.
Regulation and Compliance
The Economic Development Service is a non-statutory function delivered under the powers of well-being contained in the Local Government
(Scotland) Act 2003. In order to function properly the service must meet the following regulations and audit standards:
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National Business Gateway delivery standards monitored by COSLA
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LEADER operational guidelines agreed at Scottish Government level through EU and monitored by Audit Scotland
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State aid regulations relating to all support measures
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Licences held to operate Shetland Telecomm
What We Do
Business Gateway
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Delivery of Business Gateway service in line with provisions of Service Level Agreement between Shetland Islands Council and COSLA
on behalf of the Scottish Government
Provision of advice to clients looking to start up in business, grow their business or in need of guidance if their business is struggling.
This service can be provided by qualified business advisers in-house, by assigning specialist advisers on a contractual basis or by
running short courses.
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Economic Development Service Plan 2015/16
Grant Support
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Grant assistance is available through a business development scheme for which approvals are delegated to the Executive Manager.
The eligibility criteria are contained in these schemes.
Development, evaluation and assessment of applications with applicants
Monitoring of grant assisted projects in line with specified conditions and criteria
Development and administration of delegated assistance schemes as and when necessary to address specific areas of economic need
Commercial lending
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Engage with businesses to identify commercial funding opportunities
Processing loans for enterprises engaged in economic development projects.
Operating a loan fund for 50+ borrowers
Manage, review and report on existing portfolio of commercial investments
Promote Shetland
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Issue and oversee contract for promoting Shetland as a place to live, visit, study, work and do business
Ensure performance measures are realistic, achievable and in line with service recommendations
Ensure reporting of performance measures is undertaken at regular intervals and monitored against agreed targets
LEADER/EFF Axis IV
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Lead partner for LEADER/EFF Axis IV support
Delivery of LEADER/EFF Axis V local mechanisms in line with Service Level Agreements between SIC and Scottish
Government/Marine Scotland
Evaluation, guidance and monitoring of approved projects on behalf of Local Action Group and Fisheries Local Action Group
Reporting and evaluation of Shetland LEADER Programme finance and operations to Scottish Government
Reporting and evaluation of local EFF Axis IV finance and operations to Marine Scotland
Continuous assessment of LEADER/Axis IV processes and procedures
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Economic Development Service Plan 2015/16
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Development of strategy, guidance and procedures for Shetland LEADER Programme and local delivery of European Maritime and
Fisheries Fund for the period 2014-2020
Economic Research
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Undertake economic survey work (Shetland Employment Survey, Shetland Regional Accounts, etc.)
Investigate economic opportunities
Provide support for commercial research and development activity by or on behalf of local industry
Prepare and publish Shetland in Statistics
Inform local strategic development through research and analysis
European Policy and Funding Engagement
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Constructive and ongoing engagement with EU policy development
Officer representation on national and EU policy networks (i.e. CPMR, HIEP)
Advice and support on funding applications
Identify funding opportunities through EU programmes for local development projects
Administer, monitor and report on service related EU projects
Provide officer support for engagement of elected Members with EU policy development
Shetland Telecomm
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Provide access to fibre optic broadband access in Shetland on a wholesale basis
Work with HIE and BDUK project to ensure maximum public access to better broadband services
Arts and Culture Development
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Provide core funding for Shetland Museum and Archives
Develop and oversee Arts and Culture Strategy for Shetland
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Economic Development Service Plan 2015/16
Core Funding of Key Services
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Provision of core funding for NAFC Marine Centre, SSMO, SSQC and COPE to deliver key local strategic objectives
Funding for local Visitor Information Points
Engagement, co-ordination and support for key industry panels/associations/steering groups/development groups, including strategic
partnerships for delivery of Single Outcome Agreement objectives
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Fisheries and Aquaculture Working Group
Highlands and Islands European Partnership
Strategic Energy Development Group
Shetland Creative Industries Unit
Fairer Shetland Partnership
Shetland Development Partnership
Shetland Childcare Partnership
Other panels/groups as and when necessary
Our Customers
Shetland business and social enterprise community consisting of around 1,200 organisations
100+ clients seeking Business Gateway services (looking to start up a business, expand a business or seeking guidance if their business is
struggling)
Organisations requiring core funding to operate key services such as COPE, NAFC Marine Centre, SSQC, SSMO, Shetland Amenity Trust,
local Visitor Information Points
Community groups, social enterprises, local agencies, etc. seeking LEADER funding
Telecomm service providers
Council and other service providers seeking economic development input for change projects, strategic guidance, etc.
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Economic Development Service Plan 2015/16
Our Costs and Income
The Service has [around] XX full time equivalent staff and annual revenue expenditure of £ XXX [and a capital budget of £5.5million]. As
detailed below:
Service
Number of
Staff (FTE)
Gross
Expenditure
Income
Net Budget
Capital Budget
Management
Nil
Team 1
Nil
Team 2
Team 3
Economic Development Service Total
15.8
3,350,494
550,120
Funding and resources changes
Achieve net income of £140,000 from Shetland Telecomm sales
Reduce Shetland Museum and Archives Core Funding by £15,000
Reduce grant budget by £50,000
End Architectural Heritage funding, saving £85,000
Reduce SSQC funding by £30,000
Undertake review of all service activities as detailed in Drivers for Change section.
Integrate income and expenditure from new commercial lending mechanism into budget system
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2,800,374
Economic Development Service Plan 2015/16
Aims and Objectives
Directorate Plan Aims
Action (s)
Delivery of high speed broadband and mobile
coverage to 84% of Shetland population by
2017
Work in partnership, using the Shetland Telecomm project, with HIE and BT to
achieve 84% broadband coverage, increase uptake and improve mobile signal
coverage
Review Economic Development Service
functions by June 30 2015
Draw up 10 year vision for the Shetland economy, prepare high level action plan and
redesign Economic Development Service to meet future service demands
Complete the wind-up of Shetland Development Trust with lending and non-lending
assets and/or undertakings transferred to the Council by 30 Sep 2015
Establish portfolio of economic development investments and management thereof
within the Council
Confirm the Council’s commercial lending
mechanism
Develop investment strategy and established policies, procedures and all other
controls and measures, including resourcing, for new commercial investment
mechanism within the Council
Provide clear documentation of plans for management of investments and new
lending mechanism, including income/expenditure forecasts, taxation implications and
strategic guidance
Implement new commercial lending mechanism within service delivery and utilising
identified resources, and develop methodology for promotion to local industry
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Economic Development Service Plan 2015/16
Service Aims/Priorities
Objectives/Actions (Details below)
Link skills and knowledge to economic need
As set out in the Economic Development Policy Statement 2013-14
Develop the economic health of local
communities and a more diverse business
base, through encouraging innovation and
sustainable growth
As set out in the Economic Development Policy Statement 2013-14
Encourage research and adoption of enabling
technologies and infrastructure
As set out in the Economic Development Policy Statement 2013-14
Develop local control and management of
resources
As set out in the Economic Development Policy Statement 2013-14
Improve the reputation of Shetland as an
attractive place to live, study, visit and invest
As set out in the Economic Development Policy Statement 2013-14
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Economic Development Service Plan 2015/16
Detailed Actions/Plan for Change
[Similar to the “what we did last year” section in last year’s Service Plans]
Previous Actions Completed in 2014/15
Description
Delivered Early/ontime/late
Complete Employers Survey
Delivered on time
Achieved original intention?
Provided an analysis of employment in local
organisations, as specified in contract.
Approved Aug 2014
Refresh Digital Shetland Strategy
Strategy prepared as intended.
Delivered on time
July 2014
Establish 3 year work targets for Promote Shetland
Delivered on time
Help devise a model for demonstrating the need for skills
development and training
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Establishing better performance criteria for
Promote Shetland contract
June 2014
Completed as requested.
Delivered on time
Economic Development Service Plan 2015/16
Ongoing Actions/Projects Started prior April 2015
Title/Heading
Team
Start
End
Service Review
EDS
Jan 2015
Projected
30 June
2015
New LEADER Programme
operational by January 2015,
including progress on securing local
EMFF funding
EDS
Yes
In progress
Identify local projects for EU funding
EDS
Yes
In progress
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Output
Expected Outcome/Supported
Aims/Objectives
Complete a review of
all service activities in
the context of
Shetland’s future
economic
development needs
Started in early 2014,
final draft strategy
and business plan
submitted to SG
September 2014.
Programmes now
expected to begin
after April 2015
Engagement with
other Council
services underway
but hindered by
delays in SG
finalising the funding
programmes and
delivery mechanisms
This will support the Council’s Aim of “helping
build a healthy economy and strong
communities” and as such directly
contributes to the priorities of Our Corporate
Plan 2013-2017
As above
As above
Economic Development Service Plan 2015/16
Ongoing Actions/Projects Started prior April 2015
Title/Heading
Complete a plan for the new
commercial lending mechanism
Preparation of strategic documents
for Art and Culture, Creative Sector,
Tourism and Oil and Gas
Team
Start
Output
Expected Outcome/Supported
Aims/Objectives
As above
As above
EDS
Yes
September
2015
Clarify the lending
processes, policies,
resources and
staffing needed for
commercial lending
post-SDT asset
transfer
EDS
At various
stages of
production
Completed
end
December
2015
Action plans and
strategic guidance
agreed for developing
these sectors
Advance the development of a
centre for knitwear
production/promotion in Lerwick
EDS
Yes
Research compliance with Fisheries
Block Exemption Regulation
EDS
Yes
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End
Integrate centre
March 2016 within existing
facilities at Shetland
College
A detailed
understanding of how
core funding of
Spring 2015
fisheries
organisations rests
with State Aid
As above
As above
Economic Development Service Plan 2015/16
Ongoing Actions/Projects Started prior April 2015
Title/Heading
Ensure delivery of the aims and
objectives of the Sullom Voe
Association, including
representation from current industry
partners
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Team
EDS
Start
Oct 2014
End
Continuing
Output
Expected Outcome/Supported
Aims/Objectives
Engage Total as a
formal partner in the
Sullom Voe
Association
As above
Economic Development Service Plan 2015/16
New Planned Actions Due to Start in 2015/16
Title/Heading
Team
Start
End
Research visitor trends and impacts
EDS
April 2015
July 2015
Prepare a new Seafood Shetland
Plan
EDS
April 2015
Dec 2015
Assess future skills requirements of
local industry
EDS
July 2015
Dec 2015
Operate Shetland LEADER
Programme 2014-2020
EDS
April 2015
March
2016
Shetland
Telecom
team
April 2015
March
2016
Facilitate delivery of superfast
broadband to areas of Shetland
outside BDUK project
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Output
A targeted survey to
establish the impact of
visitors on the
Shetland economy
and to calculate
trends in the visitor
market.
A forward looking plan
that identifies fisheries
development
opportunities in the
next 5 years
Devise a system for
businesses to register
needs for specific
skills
Process 8
applications for
LEADER funding
Understand the
actions that are need
to bring superfast
broadband to Unst
and Fetlar
Expected Outcome/Supported
Aims/Objectives
This will support the Council’s Aim of
“helping build a healthy economy and
strong communities” and as such
directly contributes to the priorities of
Our Corporate Plan 2013-2017
As above
As above
As above
As above
Economic Development Service Plan 2015/16
The Directorate level actions or most strategically significant operational actions to be delivered are set out in the Directorate Plan and will be
monitored each quarter by the Directorate Management Team and Committee Members as part of the quarterly reviews. The key actions for
this Service are set out in this operational Service plan.
Risks to Delivery
The service updates a risk assessment and contingency plan every year.
All risks are recorded and evaluated on the Council’s JCAD Risk System. The current highest risks are:
Possible damage to the Solarhus Roof ( the roof of the Services base at 3 North Ness).
Failure of businesses that are in receipt of Council loan or grant support.
Maintaining service level and quality with less resource.
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Economic Development Service Plan 2015/16
Performance Indicators
Performance Indicators from Council Wide Performance Measures
[P&I will establish next year’s “Council Wide” measures; they are likely to include the ones below. P&I will populate the table APART from the
Directorate and Service target and the 2 statements, Directorates should complete these. These statements should declare what the Services
will do to improve these indicators.]
Development
Directorate
Council
Economic
Development Service
Indicators / Measure
2014/15
(Projected)
2015/16
Target
2014/15
(Projected)
Sickness Absence Rates
3.9%
3.9%
3.4%
Employee Review and
Development Meetings
held in Policy Period (MarMay)
26%
100%
17%
100%
88%
100%
Employee Review and
Development Meetings
held in the previous 12
months (as at Jan 2015)
57%
100%
37%
100%
100%
100%
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2015/16
Target
2014/15
(Projected)
2015/16
Target
1.2%
Performance
Statement
Improvement
Statement
Economic Development Service Plan 2015/16
Indicators / Measure
Return to Work Interviews
Development
Directorate
Council
N/A
100%
Economic
Development Service
Performance
Statement
Improvement
Statement
100%
100%
Key Service Indicators
[As a rule, movement in an indicator should trigger a subsequent action. Caution against using PIs that have "always been measured" or
reporting PIs just because they are easy to measure.]
Performance Measure
Performance
2012/13
Performance
2013/14
Performance
2014/15
Business Start ups per
1,000 of resident
population
3.6 (2012)
1.98 (2013)
1.68 (last four
quarters)
Jobseeker’s allowance
claimant count
1.4%
(average
monthly rate)
1.0%
(average
monthly rate)
0.7%
(average to
date)
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Target
2015/16
5
1.0%
Performance
Statement
Improvement
Statement
Business start-up rate
affected by local
economic conditions
restricting local labour
market
Linked to Action “xx”
above”
The Jobseekers
Allowance claimant rate
has been affected by
the recent increase in
Economic Development Service Plan 2015/16
Performance
2012/13
Performance Measure
Performance
2013/14
Performance
2014/15
Target
2015/16
Performance
Statement
Improvement
Statement
local economic
opportunities, and
remains significantly
below the national rate.
Gross average weekly pay
for full-time workers
£541.50
£564.90
£519.40
£550.00
The Gross Weekly Pay
Rate fluctuates due to
prevailing economic
conditions, but remains
above the national rate.
Service Performance Indicators from the Local Government Benchmarking Framework
Scotland 2012/13
Shetland
Indicator
Min
ECON1 - %
Unemployed
People Assisted
into work from
Council
operated /
funded
Employability
Programmes
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1.62
Avg
11.42
Max
34.78
Year
Value
Rank
12/13
2.25
27
13/14
-
-
Target
Performance
Statement
Improvement
Statement
Shetland is
experiencing
exceptionally low
employment which
impacts on the
benchmark.
Work continues on
the Employability
Pipeline to rationalise
and make more
effective
employability
support.
Economic Development Service Plan 2015/16
Other Performance indicators
[Some work areas have specific indicators, or suits of Performance indicators that don't fit in to the above categories. Services to populate
where applicable HEAT/APSE/ARC etc]
Indicator
2012/13
2013/14
2014/15
Target 2015/16
Performance Statement
Improvement
Statement
Contact Details
Douglas Irvine
Executive Manager –
Economic Development
3 North Ness Business
Park
Lerwick
01595 744932
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Service 2
Address 1
Address 2
Postcode
e-mail
Phone Number
Service 3
Address 1
Address 2
Postcode
e-mail
Phone Number
Service 4
Address 1
Address 2
Postcode
e-mail
Phone Number
Service 5
Address 1
Address 2
Postcode
e-mail
Phone Number
Economic Development Service Plan 2015/16
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