As York celebrates winning £19.7 million of Euro cash to plough into its science and technology sector, NICOLA FIFIELD investigates how much of a difference the investment will make.

NEARLY 4,000 people claimed Job Seeker’s Allowance in York in September – a figure that has more than doubled in the past two years.

It is therefore hoped a £19.7 million injection into the city’s science and technology sector, creating 90 new businesses over the next five years, will bring a welcome boost to the city’s beleaguered economy.

The project will be led by Science City York, in partnership with the University of York and the Food and Environment Research Agency (Fera), and aims to create 685 new jobs.

But will these new jobs be beyond the reach of the hundreds of York people who have lost jobs in the construction, manufacturing and retail industries, or will they go to scientists who will be recruited from elsewhere in the country?

Kieran Larkin, the analyst from the Centre For Cities think-tank, who earlier this year wrote a major report on York’s economic future, said he was confident the wider population of York would benefit from the investment.

He said: “Realistically, a lot of these jobs are probably going to be for high skilled people – but that’s fine because the growth of this type of job will create other growth in the economy.

“As the wealth of these highly skilled people increases, it will lead to a growth in the retail and leisure industry and that will impact on the wider population.”

Susie Cawood, head of York and North Yorkshire Chamber of Commerce, agreed. She said: “Although realistically nobody is going to go from the production line to a PhD, there is funding available for retraining.

“Nowadays there isn’t such a thing as a job for life and I think people do realise that in order to move forward they have to look at other options.

“Let’s also look at keeping our graduates here – that is a huge opportunity. We have got a world class university and we want to keep the wealth here in York.”

More than £15 million of the funding will help to expand facilities at the university’s new Heslington East campus, including the development of a central “Hub” building, which is due to be completed in autumn 2010.

This will consist of about 4,000 square metres of “knowledge exchange” accommodation, providing an integrated network of support for businesses.

The Hub will also house a new Higher York Creative Technology Centre with research space, offices and exhibition areas for start-up and early stage businesses.

The funding will also be spent on The Catalyst – a new on-campus business incubator for new businesses in the creative, digital and media sectors, with 42 offices to let. This is also due to be completed by autumn 2010.

Mr Larkin, whose report called on York to play to its strengths in science and technology, said the investment was “excellent news” for the city.

He said it was particularly important given the recent collapse of the multi-million pound vision to develop the York Central site – a project that his report said should be a key priority in efforts to improve the city’s economy.

He said: “We suggested in the report that York should focus on building up the reputation of the university and supporting its strong science and technology sector in the city.

“In terms of a catalyst for starting to make that happen, such a sizeable investment is tremendous news for the city and is very important in terms of the city’s future.

“It isn’t really going to change the impact of the recession on the city, but it will help the city to continue to grow following the recession.”

Mrs Cawood agreed on the importance of developing this sector of the economy. She said: “I think the science and technology sector is hugely important for the future of York because traditionally we were a manufacturing base and some of those jobs have gone.

“What this investment does is reinforce York as a leading player on the world science stage and I think that is also reinforced by the world class university we have, which is about to double in size.

“All through the recession we have been better placed than a lot of places within the UK because of the diversity of the economy and this investment in the science based sector gives us even more hope.”

York MP Hugh Bayley said that while he recognised many people in York were going through tough economic times, he was positive about the future. He said: “York has some very special advantages – a skilled workforce, a world class university and a good environment that encourages companies to invest here.

“The Government designated York as its first science city and with a combination of one of the best universities in the country and blue-chip science employers, we are now one of the most important science centres, both nationally and internationally.”

Mr Bayley said he was still hopeful of reviving the York Central site, which was derailed in September, when landowners Network Rail, Yorkshire Forward and the National Railway Museum revealed they had suspended the search for a developer because market conditions had made it impossible to secure a commercially viable deal at this stage.

The project had been set to deliver thousands of jobs, 3,000 new homes, a new road and bridge, shops, restaurants and a long-awaited bus station on a massive teardrop of land behind the York station. Mr Bayley said: “It is extremely important that we start working now on how to revive the project instead of waiting until we are out of the downturn, because that would mean nothing would happen for quite some years.”

Despite the collapse of the York Central project, York still has two major developments to look forward to. Plans for a multi-million pound scheme to redevelop York’s former Terry’s factory have been submitted to City of York Council and the world’s biggest bank is set to invest £300 million in a massive data centre in York.

HSBC has been given conditional planning permission to build the complex at Monks Cross, which will create up to 2,000 construction jobs and at least 100 permanent posts.

Mr Bayley said he would be asking a question in Parliament tomorrow about what extra help the Government could give York to stimulate investment and business during the economic downturn.


Major job losses

Major jobs losses in York and North Yorkshire over the past 12 months:• January 2009: Malton Bacon Factory announces plans to axe 200 jobs in a bid to cut costs.

• March 2009: Union chiefs reveal that up to 180 posts are at risk at Network Rail in York as part of a massive shake-up that would see the jobs relocated to a new “national hub” in Milton Keynes.

• April 2009: Staff at Norwich Union in York are told the company, now known as Aviva, plans to axe 720 posts in the city.

• July 2009: The Press reports that 100 university jobs are under threat in York.

• October 2009: Portakabin, in Huntington, announces plans to axe another 75 jobs, on top of the 80 jobs that were cut in February.