Paul Drechsler will praise the region’s firms for their flair and resilience following the EU Referendum at CBI South West Annual Dinner
The CBI’s President, Paul Drechsler CBE, will welcome Andrew Livingston as the new CBI South West chair at the organisation’s Annual Dinner on Wednesday (5 October).
Mr. Livingston is the CEO of Screwfix (see Notes to Editors for quote and full biography), the UK’s largest multi-channel supplier of Trade Tools, Plumbing, Electrical, Bathrooms and Kitchens. He replaces Steve West, the Vice Chancellor of the University of the West of England.
Mr. Drechsler, also Chairman of the Bibby Line Group and Teach First, will say that seizing even more export opportunities and delivering more innovation are great ways to increase the region’s productivity.
At the Annual Dinner, held at Bristol Marriott Hotel City Centre and sponsored by CBI members Barclays, Burges Salmon and Plymouth University, Mr. Drechsler will praise South West companies for demonstrating resilience following the vote to leave the European Union.
And he will call on the Government to provide clarity on what will happen to EU funding received by the South West, particularly the €450 million Cornwall gets from the European Regional Development Fund.
Paul Drechsler CBE, CBI President, will say:
“Businesses I speak to, all over the country, are still rolling their sleeves up and getting down to work.
“And the UK is still a fantastic place to set-up, build and grow a business.
“Yes, many CBI members were disappointed by the result. But they are determined that we look forward, and not back.
“Our first message to Government is we need a timetable and we need a plan. We welcome the Prime Minister removing one big question over the weekend – when Article 50 will be triggered, but this has accelerated the need for answers on other big questions.
“One word which sums up the CBI’s key principles for the negotiations is “openness”…
“Openness to trade with the EU and with the rest of the world. Openness to talent and labour, while recognising the concerns that people have about immigration.
“And we need to understand that there will be a balance between accepting equivalent EU regulation to gain access to the single market in some areas, and opting to differ from EU regulation to get more flexibility at home in other areas.
“On EU funding, it is welcome that the Government has said it will guarantee UK research and innovation projects under Horizon 2020, and the Chancellor this week extended this commitment to Universities and businesses.
“These programmes are of critical importance to the region. The current European Regional Development Fund for Cornwall alone is worth €450 million. To ensure that the South West continues to grow, its areas in most need cannot face a “cliff edge” drop in funding.”
Mr. Drechsler will also detail the business group’s interactions with the new Government, welcoming the focus on industrial strategy and seeking prosperity across all regions and nations of the UK. He will say:
“A few common themes have emerged from our discussions with ministers.
“Firstly, the Government is keen to show that the UK is open for business. It wants ideas and involvement, and wants them early.
“There is also a strong awareness of the public mood, and a desire to shape a fairer society. This has taken on a new importance since the vote to leave the EU.
“And it is clear that industrial strategy, productivity and regional growth are at the heart of the government’s new economic thinking.
“Six months ago, you sometimes struggled to hear the words “Industrial strategy” - now, it’s on the sign above a Department door!
“And to deliver prosperity for our communities, we need a new partnership between government and business - of all sizes and in all corners of the UK.
On productivity, Mr. Drechsler will say:
“There is currently huge variation between the most productive and least productive areas in the UK. For example, average productivity in London is 40% higher than that of the South West.
“We have been using data from the ONS that no-one has brought together before – so that we can be specific about which areas require support, and what Government and business working together can do about it.
“And one of the most interesting aspects of our findings is that there is more variation in productivity within regions, than there is between them.
“Productivity in the most productive area of the South West - Bath and North East Somerset – is almost 40% above the least productive - Cornwall and the Isles of Scilly.”
Mr. Drechsler will also highlight the importance of infrastructure as key driver of prosperity:
“Just as the Government needs to think locally, it shouldn’t take its eye off the big-ticket stuff. Now, more than ever, is the time for the Government to show that the UK is open for business.
“The announcement on Hinkley Point was welcome. This project won’t just support a diverse, low-carbon and secure energy supply, but will create jobs and growth throughout the South West.
“But business and investors are hungry for further signs from Government. The first sign should be a commitment to build a new runway in the South East – creating tens of thousands of jobs.
“A new direct daily flight to just eight of the world’s largest high-growth economies could deliver a £1bn annual trade benefit for the UK. And this benefit would be seen right here in the South West. For example, Bath-based BuroHappold Engineering employs over 1,500 people exporting its engineering expertise to over 24 countries around the world.”
Mr. Drechsler will also point to successes in exports and innovation across the region, adding that much more can and should be done, as a means of increasing productivity:
“So let’s look at what the data tells us for the region. Well, if I was a teacher I’d say “not bad, but room for improvement”.
“In terms of exports, the region is punching above its weight. It is above the UK average in terms of its propensity to export.
“Of course - this doesn’t come easy. To export, businesses need to get out there, meet people and take risks. Businesses need to make their own opportunities – they don’t come to them on a plate.
“For every four Aston Martin cars made, three go overseas. As their CEO recently said - “we started exporting by accident, now it’s a necessity.”
“However, there is huge exporting variation within the region. And evidence suggests that 10% of firms in the South West who are not currently exporting have export potential - so still room for improvement.
“And as much as exports are a positive for the region, innovation is a challenge. We know that innovation is an important driver of productivity. Firms planning to invest in R&D are significantly more productive than firms that do not.
“Our data tells us that the North East and Wales are far more innovative than the South West. But let’s remember - we already have fantastic local examples of innovation right on our doorstep. Just 7 miles from here in Filton, over 4,000 employees ensure that Airbus fly on wings that are designed, engineered and produced only in the UK.
“So when you next look 7 miles up in the air and spot an Airbus plane, you can be sure that Filton is providing it with the support it needs.”
Commenting on his appointment, Andrew Livingston, CBI South West Chairman and CEO of Screwfix, said:
“I’m extremely proud and excited to be taking on the role of chairman for the CBI South West.
“The year ahead will be an important one for industry in the UK. I’m looking forward to working with businesses across the South West, to ensure our region goes from strength to strength.”