Agenda item

            The Board received a report which provided progress on the establishing measures relating to employment to ensure that local residents and businesses benefited from the Mersey Gateway (MG) and other capital projects.

It was noted that on 11^th September 2008 the Executive Board accepted a series of recommendations arising from the ELS Scrutiny Panel Topic Group that explored the role of the Council’s procurement policy in developing local employment. The Executive Board’s acceptance of the recommendations was subject to consideration of the budget implications as part of the budget setting process.

            The Board was informed that one of the recommendations that “progress on issues relating to employment in respect of the MG and other related capital projects be reported to ELS PPB on a half yearly basis”. It was further noted that this report was the first half-yearly report and provided a summary of the MG procurement timetable, details of the potential job opportunities during construction phase and proposals to develop a Council

wide policy designed to encourage the use of local labour and businesses in Council led construction projects was outlined for consideration. Key stages for the Mersey Gateway procurement timetable were set out as follows:-

• Stage 1 – Planning and Initial Preparation
• Stage 2 – OJEU Contract Notice to Shortlist Bidders via PQQ
• Stage 3 – Selection of bidders
• Stage 4 – The Dialogue
• Stage 5 – Post Dialogue
• Stage 6 – Bid Clarification
• Stage 7 – Award of Contract

            The Board was advised of the job opportunities during the construction phase and it was noted a study of the wider economic impact of the MG project had been undertaken. The purpose of the study was to assess the effect of the project on the Local and sub-regional economy, employment within specific Regeneration Areas and Local regeneration using the project as a catalyst for regeneration and to attract inward investment.

Detailed in the report was a table which illustrated the types of construction related employment opportunities that would arise from the MG project defined as “specialist” and “general”. It was advised jobs were likely to be filled from local, regional, wider UK or even the international labour market. In the context of the study local was defined as Halton and regional as North West England.

Members were advised that it was anticipated that the specialist jobs would generally be imported by contractors and that the more general jobs would be recruited locally. Evidence from other major construction projects suggested that a third of the jobs would be drawn from the local area, a further third from the wider region and the remaining third from elsewhere. However, depending on the availability of people with the necessary skills locally, this could rise to half the construction jobs being recruited locally.

            The Board suggested that local companies could be involved in sub contracting, for example supplying materials required for construction of the MG. The Board also proposed that further consideration of the rules of governing the employment of unemployed people on the project be undertaken. It was suggested that a further report on MG progress be brought back to the Board in September.

            RESOLVED That:

(1)   the Mersey Gateway Procurement timetable be noted;

(2)   the proposal to establish a Council-wide employment policy be accepted; and

(3)   a further report on MG be brought back to the September meeting of the Board