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NW Objective 2 Programme 2000 -2006 CCT Note 5 – Environmental Economy of the North West Sustainable Development Guidance (2000) This guidance is aimed at Action Plan and project applicants who need to define an "environmentally related sector" (required for Measures 1.1 and 1.3) Further CCT information related to individual Priorities, together with guidance on definitions and monitoring can be found within the other CCT notes ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 1 1 INTRODUCTION 1.1 STUDY AIMS The study aims to: provide an analysis of the environmental economy in the North West and the links between environment and economic development; identify key growth opportunities within the environmental economy and opportunities for strengthening the positive links to economic and social progress in the future; develop practical recommendations for regional initiatives to make progress in this field. Underlying these principal aims was an interest in highlighting the links which exist between the environment, the economy and social welfare/quality of life. It is apparent that each of these issues makes a major contribution to the overall "quality" of a region and the experiences of those people who live there. What is less obvious is that the strength of the interrelationships between the environment, the economy and quality of life are such that changes in one of them could have significant impacts on the others. Our research demonstrates that the environment, which was the focus of this study, is a key engine for the development of the North West region, not just because of its direct impacts on the region, but also because of its indirect impacts on the region"s economy and on the social welfare and quality of life of the people who live here. This project draws on the views and experience of many regional specialists in the environment sector without which the report could not have been effectively prepared. We are grateful to them for their contributions. 1.2 STRUCTURE OF THE REPORT This report is divided into five sections. The remaining part of this introduction (Section 1) defines the scope of the study and explores the way in which this was developed. Section 2 focuses on the Environmental Goods and Services sector, but also includes those parts of the transport industry which fit into the scope of the study. Section 3 turns to the Primary Sector, including conservation and agri- environment, while Section 4 looks at a wide category having as its common theme Capitalising on a High Quality Environment. Here the areas of environmental led tourism, investment and quality of life are examined. Section 5 of the report presents some opportunities for the future growth and development of the North West"s environment sector as a whole. A glossary ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 2 of acronyms is given in Annex A to the report, and a bibliography in Annex B. Annex C presents a list of the people consulted during the study"s preparation as well as a list of steering group members. 1.3 FRAMEWORK FOR ESTABLISHING THE STUDY SCOPE Activities within the "environmental economy" can be defined in terms of their relationship to environmental quality, according to one of the following criteria: activities which aim to protect or improve the environment; or activities which are dependent on a high quality environment. These two criteria provide a basis for identifying which activities to include in the scope of the study. For ease of writing and comprehension in the report, the first criterion is sometimes abbreviated to "protect/improve", while the second is sometimes abbreviated to "dependent on HQE". In seeking to ensure that the report carries as much credibility as possible, the project Steering Group and the consultants have worked in close co-operation to develop the project scope. The scope has also been defined taking into account the finite resources available to undertake the study and in at least one instance (the built environment) the difficulty of obtaining accurate figures has also influenced scope. Data limitations were an issue during the analysis stage of the study when available data related to areas wider than the specific environmental concerns of the study. Having discussed the scope of the project with partners and stakeholders during consultations in January 2000, and again in May 2000, we are aware that the strict application of criteria has meant that there are some items which have not been addressed as part of this study which some readers might expect to have been included. The corollary of this is that the report which follows does have the advantage of being fairly tight in terms of its definition of the environment sector. The report divides the North West"s environmental economy into three broad categories. These are the environment sector, the primary sector and capitalising on a high quality environment. Exactly what is meant by these terms, and the activities included within them, is described in Section 1.3.2, Section 1.3.3 and Section 1.3.4. Dividing the North West"s environmental economy into these key categories provides a convenient framework for analysing the effect that activities within the environmental economy have on the wider social and economic setting. In undertaking such analysis it is important to emphasise that though considered under separate headings, components of the environmental economy retain strong links which transcend these "artificial" boundaries and the impacts of activities are not usually confined to just one sector. This is a underlying theme which applies to varying degrees to all ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 3 components of the environmental economy and one to which we explicitly return in Section 5.5. 1.3.1 Core and Non-Core Activities It is possible to classify activities by the strength of their relationship to the "environmental economy". For example, pollution control equipment and nature conservation activities clearly aim to protect or improve the environment. Likewise, a high quality environment is a definite prerequisite for some tourism activities. These activities are linked strongly to the environment, and are therefore described as "core" activities under each of the main two criteria. Activities which fall less firmly under the two criteria described above, can be classified as "non-core". These activities might contribute to environmental improvement, but this is not their primary purpose; likewise such activities may benefit from a high quality environment, but they are not dependent on it. For example, low energy light bulbs bring environmental benefits in terms of energy efficiency, but arguably their primary purpose is to generate light cost-effectively. Similarly, certain agricultural activities may benefit from a high quality environment, but they do not depend on it. Activities like this, which have a weaker relationship to the environmental economy, are described as "non-core" activities. By identifying these separate "core" or "non-core" activities, the report provides the reader with a weighting of the relationship of different activities to the "environmental economy". Assessing whether an activity is "core" or "non-core" inevitably involves a degree of subjectivity. For this reason, the categorisation is based on a consensus of opinion among different organisations in the region. In this respect, we are pleased to have benefited from the input of both the steering group and those who contributed at our seminars held in January 2000. The following paragraphs illustrate the application of the framework described above to show which activities are covered within the study. A clear rationale is also presented for classifying an activity as "core" or "non- core". 1.3.2 The Environment Sector "The environment sector" is one of the three main headings into which the North West"s environmental activities are divided. Within this overall heading, we include: environmental goods and services, this sector is defined by the OECD (1999) as goods and services to measure, prevent, limit, minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems; ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 4 academic institutions; public sector environmental services not for profit organisations; transport (where appropriate); and nature conservation and biodiversity. Some of these activities are described in more detail, together with their categorisations, below. Environmental goods and services The following environmental goods and services are included under the protect/improve criterion: air pollution control - "core" because the main purpose of these activities is to protect or improve the environment via reducing air pollution; environmental consulting services - "core", because such services are mostly used to protect or improve the environment through provision of advice and/or consulting services; environmental law - "core", since its aim is the protection of the environment as described in legislation and case law; contaminated land remediation and physical regeneration - "core", since its prime function is to improve or protect the environment by cleaning up polluted sites and/or improving the quality of buildings and facilities; environmental monitoring and instrumentation (including environmental laboratory services) - "core", since the main aim of using such equipment is to protect or improve the environment; marine pollution control - "core", because these activities are primarily designed to protect or improve the environment via reducing or minimising marine pollution; noise and vibration control - "core", again, since the purpose of the activity is to protect or improve the environment through reducing or minimising noise and vibration; waste management - "core", since it aims to manage waste sensitively with respect to the environment; nuclear waste management - "core" insofar as it aims to improve or protect the environment; wastewater treatment - "core", because the aim of the activity is to clean dirty water before returning it to the environment; ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 5 water supply and purification of drinking water - included as "non-core". The latest OECD/Eurostat definition of the environmental goods and services sector does include water supply and purification (under the category of resource management) but we include it here under "non-core" because its prime purpose is not to improve or protect the environment but to provide water to commercial customers; landscape services - "core", because their purpose is to improve the environment, or protect it from intrusions; and "Green products" such as low energy light bulbs and energy efficient boilers - "non-core" because their primary aim is arguably not environmental improvement. The goods and services which are examined within the scope of this report are produced through the activities of private sector suppliers, not for profit organisations, the public sector (for example, the Environment Agency and Local Authorities) and academic institutions. Within the overall environmental goods and services sector there are three more categories, which are singled out for closer analysis. These are the waste management sector, environmental management posts in industry (included as "core" under the protect/improve criterion) and renewable energy/energy management. The primary purpose of energy management and efficiency products and services (amongst which are, for example, low energy light bulbs and loft insulation in a domestic setting and combined heat and power plant in an industrial context) tends to be cost reduction rather than environmental improvement. Therefore, these are included within protect/improve criteria "non-core". The main purpose of renewable energy goods and services is to generate environmentally "sound" energy. Though they may also offer financial savings, the pay-back period is generally too long for them to be attractive, meaning that people who employ them largely do so for their environmental benefits. Renewable energy goods and services are therefore included under protect/improve "core". The manufacture, distribution and retail of high value goods for use either in conservation activities (such as tools) or in the enjoyment of the outdoors (such as outdoor clothing and binoculars) is not included under OECD or Eurostat definitions of the environment sector and is excluded from the scope of this study. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 6 Transport Largely excluded from scope, because of its general status as an environmental "bad", certain parts are included as protect/improve "non-core" or "core". Transport is a broad sector, much of which neither depends on a high quality environment, nor has as its aim the promotion or protection of the environment. Transport activities that do not meet these criteria are not within the scope of study of this report. However, certain activities within the transport sphere do meet these criteria. For example: measures to encourage a shift from less sustainable to more sustainable forms of transport (eg from car to bicycle, or from short haul flying to inter city train). Such items are included under protect/improve as "non-core", because the aim of these measures is primarily to improve or protect the environment; and electric cars and similar, which though they are an improvement on conventional transport, still have transport as their primary aim, albeit transport delivered in a more environmentally friendly way. These are viewed as "non-core". Transport was one of the areas where the available data did not coincide with included items; consequently, transport activities which are included are addressed in the form of qualitative descriptions of notable North West examples (we have called these "case studies") rather than estimated in terms of their quantitative contribution to the economy. The Natural Environment Nature conservation and activities relating to biodiversity are included under protect/improve "core", because their primary purpose is to protect or improve the environment. Conservation via employment of agri- environment techniques is included as part of the Primary Sector. 1.3.3 The Primary Sector In general terms this second main category of environmental activity is concerned with agriculture, fisheries, forestry and country sports. Broadly speaking, we only include those activities in agriculture which aim to protect or improve the environment - eg agri-environment schemes. The aim of the majority of agricultural activities is to produce food, rather than environmental protection or improvement. General food production activities are not included within the scope of the study. Agri-Environment and Organic Farming Categorised as protect/improve, "core." Agri-environment and organic farming activities are undertaken primarily in order to improve or protect the environment or to minimise impacts on the environment, which is consistent with the protect/improve "core" group. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 7 Upstream and Downstream Agricultural Activities Upstream and downstream agricultural activities could be included within the scope to the extent that agri-environment and organic farming are included. However, there is difficulty in identifying the point at which to exclude upstream and downstream industries, ie to what extent do upstream and downstream industries benefit or profit from agri-environment farming? An illustration of the difficulties encountered in including upstream and downstream activities is presented in Section 3.1.4 and an estimate of the likely jobs created is presented for completeness. At most these economic activities would be "non-core", although in practice the link is so tenuous or difficult to identify accurately, that upstream and downstream industries have not been included in the final figures which show the size of the North West"s environmental economy. Regional/Local Produce Not explicitly included in scope. The primary purpose of regional produce schemes is one of marketing in order to bring social and economic benefits to rural/farming communities. Regional produce does not inherently involve environmental improvement or protection (though some local brands are explicitly linked to environmental protection). Nonetheless, because of the transport benefits inherent in the substitution of regional and especially local produce for national or international goods, we have attempted to include examples of regional and local produce within the study as case studies. Aggregates Recycled aggregate activities (eg recycled demolition and construction waste) are categorised under protect/improve "core" to reflect the fact that their primary purpose is to reduce environmental impacts. Restoration of extraction sites may have the purpose of environmental improvement and therefore this activity can also be is categorised under protect/improve "core". In practice, data on jobs and expenditure is unobtainable, and it may only be possible to include this aspect if a case study can be found. Landscape restoration activities are captured under "landscape" activities in Section 2.1 Other activities within aggregates are not included since they do not readily fall under the protect/improve criteria or the dependent on HQE criteria. Fishing Freshwater fishing is categorised under the dependent HQE criterion, core. With respect to inshore fishing (and in particular shellfish harvesting) the picture is less clear, with an overall lack of consensus on the relationship between environmental quality and productivity of the fisheries. This lack of consensus, together with the lack of data on the catch/value of these fisheries, has led us to exclude inshore fishing from the scope of the study. However, a ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 8 case study is included on cockling to show the importance of the sustainable management of fisheries. With respect to offshore fishing, the links to the environmental quality of the North West are similarly unclear, with many trawlers (for example, those based at Fleetwood) travelling long distances for their catch. Offshore fishing is therefore excluded from the study scope. Game Shooting Categorised as dependent on HQE, "core", because this activity is directly dependent on the quality of the environment for the availability of game. Other country sports which are directly dependent are hare coursing, hare shooting, and falconry. These are included as "core" where data permits. Soil Soil extraction activities are generally damaging to the environment, and therefore excluded from the scope. Composting seeks to improve or protect the environment ("core") and is included in Section 2.1 under "waste management". Forestry Partly included under protect/improve "core" or protect/improve, "non-core". As with agriculture and transport, only forestry activities the primary purpose of which is environmental improvement or protection (eg woodland management initiatives and the enhancement of biodiversity) are included as core activities. Commercial forestry and its associated upstream and downstream industries (such as planing, sawmilling and logging) do not have as their principal aim the improvement of the environment, and are excluded from the scope of the study. 1.3.4 Capitalising on a High Quality Environment Tourism The quality of the environment is a critical factor supporting the development of the North West"s tourism sector, so much so that in many instances (such as visits to the Lake District National Park, nature reserves and the North West"s gardens and parks), the quality of the environment is the most important driver behind the visit. In these cases, the activity is said to be completely dependent on the activity, and is categorised under "dependent on HQE", "core". In other cases, such as the quality of bathing water, panoramas or dedicated paths and bridleways, the environment can be a secondary factor behind the visit. Where this is the case, the high quality environment plays an important (though less critical) role in the visitors" overall experience, and the activity is classified as "dependent on HQE", "non-core". The built environment and heritage is partially included insofar as it attracts tourists but urban tourism is not explicitly costed because of difficulties in ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 9 apportioning the role of the "environment" compared to the role of visiting friends and relatives, culture, the arts, leisure etc. Inward Investment "Dependent on HQE", non-core. The need to attract investment into the region, both from outside of the region and from businesses already operating in the North West, is important if the region"s economic development aspirations are to be met. It is fairly clear that the principal factor in the decision to invest is the underlying business case for the project. However, insofar as the business expectations are met, the final decision regarding the location of the project might then be influenced by the quality of the environment on offer. In such cases where additional investment is dependent on a high quality environment, the investment has been classified as non-core. Quality of Life Benefits Quality of the environment is clearly linked to quality of life; for individuals the two terms are very closely related, not least because social issues are usually correlated with the quality of an individual"s environment. Though there is some quantification of "quality of life" benefits this quantification is not attempted in monetary terms because of the subjectivity involved in such an approach. Rather the analysis is confined largely to a ranking approach supplemented by a case study approach demonstrating some of the links between quality of life and the environment. Quality of life is affected by the provision of environmental resources and the original intention was to include urban parks insofar as respondents from local authorities classed them as part of their environmental services, but data limitations did not permit this. 1.4 PUTTING THIS REPORT TO USE This report demonstrates that the North West"s environmental economy generates for the region a considerable number of jobs and makes a sizeable contribution to the region"s GDP. Moreover, the work helps to highlight the profound impacts the environment has on other important regional characteristics such as quality of life and socio-economic issues. The report is a first for the region and is written for an audience of professionals and interested lay-people alike. Its findings and identified future opportunities provide an introduction to the key areas of the environmental economy and short summaries of some of the dynamic work already under way in the region give examples which organisations and businesses can replicate to secure for themselves and others the financial and social benefits which the environmental economy offers. We invite policy makers, local authorities, business, the voluntary sector, agriculturists and individuals to consider appropriate responses and act accordingly. In doing ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 10 so we hope that future opportunities to develop the sector and its specialist skills are maximised so as to benefit the overall economy and the social fabric of the North West in a sustainable way. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 11 2 THE ENVIRONMENT SECTOR This section focuses on the Environment Sector as defined in Section 1. For each of six constituent parts (environmental goods and services, academic institutions, public sector environmental services, not for profit organisations, transport and nature conservation/biodiversity), information is provided on the current nature and extent of the activities, using case studies and, with the exception of transport, employment data. Table 2.1 summarises employment in the North West associated with these activities. 1. Environmental Goods and Services - defined as "goods and services to measure, prevent, limit, minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco- systems" (OECD 1999). 2. Waste Management and Recycling - goods and services to collect, treat, dispose, reuse and recycle wastes. 3. Renewable Energy and Energy Management - goods and services to improve efficiency of energy use and to generate renewable energy. 4. Water and waste water treatment industry 5. Environmental Management in Business - activities undertaken by businesses to manage environmental performance including areas such as waste minimisation. 6. Academic Organisations - specialist academic based departments providing environmental courses, R&D, training and consultancy services. 7. Public Sector Environmental 'Services' - environmental protection activities in public sector organisations such as the Environment Agency, Local Authorities and Government Office for the North West. 8. Non-Profit Making Organisations - "Not for profit" organisations in the North West providing services such as environment management support to industry and local environmental regeneration projects. 9. Transport - case studies of transport projects and initiatives within the scope of the report. 10. The Natural Environment - Economic activity associated with the protection or improvement of the natural environment, including conservation and biodiversity. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 12 Table 2.1 Summary of Employment in the North West Environment Sector Approximate number of employees in the North West Environmental goods and services 14,773 Waste management and recycling 12,600 Nuclear waste management 2,400 Energy management and renewable energy 1,990 Environmental management in industry 1,200 Water and wastewater industry 4,063 Non-profit making organisations 350 Academic organisations 190 Local Authorities 330 Transport not quantified. The Natural Environment 1,193 Total quantified 39,089 Source: Consultant"s estimate and Envirolink survey evidence (2000) Turnover for the North West environment sector (defined as those elements shown in Table 2.1) is prudently estimated at £1.75 billion per annum. This figure is based on returns from a recent survey of the North West environmental goods and services sector carried out by Envirolink (2000), an allowance of £280 million for BNFL"s nuclear waste management activities (source: personal communications, BNFL), with turnover for the other sub- sectors derived from an assumption of a turnover/jobs ratio of £40,000 per job. Expressing this figure of £1.75 billion in terms of value added rather than simply turnover implies a GDP contribution for the sector as a whole of approximately £975 million.1 The whole sector is estimated to employ some 39,000 people (see Table 2.1). 2.1 ENVIRONMENTAL GOODS AND SERVICES SECTOR 2.1.1 Private Sector Suppliers The environmental goods and services sector includes: Air pollution control; Marine pollution control; Environmental consulting; Noise and vibration control; Environmental law; Waste management (excluding nuclear waste management); Contaminated land remediation and physical regeneration; Water and wastewater treatment; and Environmental monitoring and instrumentation; Landscape services. Environmental laboratories (1) This estimate is based on a value added to turnover ratio of 0.55, this ratio being based on a weighted average of value added to turnover ratios of constituent industries in the sector contained in ONS (1997). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 13 It is estimated that there are around 570 suppliers of environmental goods and services in the North West (see Table 2.2). This total excludes waste management operators, North West Water and energy management and renewable energy companies - these areas are covered in separate sections below). These 570 companies employ approximately 15,000 personnel. Table 2.2: Private Sector Suppliers of Environmental Goods & Services No. of suppliers Jobs Environmental Services 145 4582 Water and Wastewater Treatment 72 2291 Contaminated Land Remediation 49 1550 Air Pollution Control 53 1684 Monitoring and Instrumentation 53 1684 Landscape 150 1500 Noise and Vibration Control 23 741 Marine Pollution Control 13 404 Transport Pollution Control 11 337 Total 569 14 773 Source: Based on Envirolink Survey Data (2000) Note: Waste water treatment job total does not include NW Water"s approximately 3 000 jobs directly related to water services. Waste management jobs are not included in this Table but are covered in the section below. Energy management and renewable energy jobs are not included in this table but are covered in the section below. Landscape suppliers figure includes approximately 50 landscape designers, 50 landscape contractors and 50 specialist suppliers (eg. tree/plant growers and nurseries (source, Personal communication, Environlink 2000). Figure 2.1 Case Study - RPS Group plc RPS Group plc is a environmental consultancy in the North West with operations in England, Scotland, Wales, Northern Ireland, Ireland and the Netherlands. The Group has a total staff of approximately 1200 and turnover of £52 million (projected for 2000). The company floated on the London Stock Exchange in 1987 and provides a wide range of consultancy services including environmental risk management and safety; environmental monitoring and laboratories, planning consultancy for consents, appeals and transport planning, design consultancy on architecture, landscape design, land remediation, water management and environmental engineering. Source RPS Website, 2000. Figure 2.2 Contaminated Land Clean Up Manchester - based Earthscience have been involved in the clean-up of a number of sites in the North West where development has been constrained by contaminants in the ground. An example is a former manufacturing facility in Trafford Park where a spillage of solvents had contaminated the ground during the previous use of the site. Innovative site investigation methods followed by risk assessment and clean up allowed the environmental constraints to be removed and the development of Hi-Tech industry creating 50 jobs followed. Such approaches not only remove constraints on economic activity but also remove land ownership liabilities and increase asset value. Source: Personal Communication, Enviros March. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 14 Figure 2.3 Case Study - Westlakes' Air Quality Database Since its foundation eight years ago, Westlakes Research Institute in West Cumbria has become and important regional environmental and life science research, academic and consultancy organisation. Today it employs over 120 professional staff and, with a turnover in excess of £5 million per annum, it is an important contributor to the local economy and to the skills base of the region. Besides managing leading edge research and consultancy services, the institute has also developed a post-graduate college where, unlike in traditional universities, applied research and training in environmental sciences is provided by consultant practitioners who deal daily with real environmental challenges. As one example of its work, the Institute has developed a comprehensive Air Quality Database with the help of which the impacts of future urban, local and regional scale development can be predicted. The tool is already being applied by Copeland Borough Council where it is providing a demonstration platform for a North West company in a North West setting. The system incorporates information on pollution levels from industrial, transport and domestic sources and will ensure that future planning and development decisions made by the council take into account the potential impact on air quality. It also allows public access to data on air quality data. Source: Personal communication, Westlakes Research Institute. 2.2 WASTE MANAGEMENT AND RECYCLING The waste management sector is given particular attention in this study in view of its relative size and significance to the region"s environmental industry and in view of the significant emerging opportunities in the sector associated with the Government"s recently released waste management strategy (Waste Strategy 2000) which highlights the need to reduce landfill disposal of waste, and increase waste minimisation, reuse and recycling . It is estimated that approximately 90 000 people are employed in the waste management and recycling industries (DETR, 1999) in the UK with the North West accounting for around 14 percent of this total . (This estimate is based on the North West population being 14 percent of the UK total and the region"s manufacturing GDP being 14.4 percent of UK total). This estimate implies the North West waste management and recycling industries employ approximately 12 600 employees. Within this 12 600 waste management and recycling jobs in the North West, , approximately 2 300 relate to recycling. This estimate is based on current UK employment in recycling (collection, sorting and reprocessing recyclable materials - paper and board, glass, steel, aluminium, plastic) of 17 000 jobs (Waste Watch 1999). Pro-rated to the NW on the basis of population (14 percent of UK total), this indicates 2 380 jobs in recycling in the North West. Some of the UK"s largest waste reprocessing plants are located in the North West including the Alcan aluminium recycling plant in Warrington which recycled 1.4 billion cans from the UK in 1996. Other major players include the Bridgwater Paper Company in Ellesmere Port which recycles 360 000 tonnes of paper per year. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 15 Figure 2.4 Case Study - Create Another example of "progressive" waste management activities in the North West is the "Create" project. Create is a recycling charity in Liverpool which trains long term unemployed people to repair and reconstruct white goods. Sponsored by Thorn EMI, it acquires end of life products from rental companies and local authority waste collections, and recycles them for sale. Create started with 12 trainees and by June 1997 had expanded to 30. These trainees receive a two year training course, waged after three months, with a view to finding them permanent employment. As well as these employment effects, Create helped to reduce waste disposals to landfill and reduce raw material consumption. (ACE et al 1998; and RSPB 1999). Figure 2.5 Case Study - Clean Merseyside Centre The project is a new initiative supported by the five local authority areas of Liverpool, the Merseyside Waste Disposal Authority, Enviros and the Clean Washington Centre (CWC) the latter already having a successful track record of implementing a similar scheme in the US. The project aims to: introduce best practice in the creation of commercial uses for recycled materials, and to increase awareness of waste recycling; improve the environment by increasing waste recycling (by five percent of domestic waste and 40,000 tonnes of commercial waste per annum); create new businesses and jobs in recovery, reprocessing and re-manufacture; to train staff in the development of public/private partnerships to exploit future waste recycling opportunities. The key is to develop local markets in recycled materials by working with manufacturers and entrepreneurs to convert existing manufacturing techniques or establish new ones to take advantage of processes which include recycled materials as inputs. The model has worked well in the US: over the past nine years, the CWC has helped local authorities in Washington divert more than 40 percent of their waste from landfill. Growth of the recycling industry has led to the creation of 16,000 jobs and has encouraged some £900 million of capital investment. Specialist mentoring and training will be provided by staff who formerly worked for the CWC. Source: Personal communications, Enviros March 2.3 RENEWABLE ENERGY & ENERGY MANAGEMENT 2.3.1 Renewable Energy Projects In 1998, there were 88 renewable energy sites in the North West (Environment Agency, 1999). Of these 88 projects, 46 are live NFFO projects (source ETSU) with approximately 690 jobs. No firm data exists for the number of jobs in the remaining 42 projects noted in the Environment Agency report. Figure 2.6 Case Study - Harlock Hill Wind Cluster in Cumbria The UK"s first community-owned wind turbine, which forms part of the Harlock Hill Wind Cluster in Cumbria, was commissioned in 1997. It was bought by the Bay Wind community co-operative. Most of the £620,000 investment was derived from small investors in the local area. Bay Wind has since bought a second turbine at Harlock Hill, which has a Non Fossil Fuel Obligation 3 (NFFO-3) contract. Source: Personal communication, ETSU ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 16 2.3.2 Suppliers of Energy Management and Renewables Equipment & Services There are at least 30 suppliers of renewable energy services and technologies in the North West (source: DTI listing of UK renewable energy suppliers). These account for approximately 180 jobs. This, however, may be an underestimate since according to DETR figures, there are 700 renewable energy companies in the UK, employing some 3 500 personnel. Fourteen percent (NW manufacturing GDP as a proportion of UK total) of this total would equate to around 98 companies and 490 staff. We have therefore used the higher figures for the purposes of the study. In addition, there are at least 100 energy management suppliers of services and equipment in the region, employing approximately 1,500 personnel (personal communication, Environlink). As well as generating jobs and reducing greenhouse gas emissions, renewable energy generation and energy management initiatives also generate cost savings for homes and industry in the North West - see case study. Figure 2.7 Case Study - Energy Efficiency Best Practice Programme Since 1989, the Energy Efficiency Best Practice Programme has promoted energy awareness and best practice within organisations. It stimulates annual savings of around £500 million across the economy, equivalent to 3 million tonnes of CO2. In 1999, a £2 million programme was implemented jointly with the Government Offices and local business support agencies to help small and medium sized firms improve their energy efficiency and environmental performance. This represents approximately £72 million of savings in the region if extrapolated on the basis of manufacturing GDP. Source: ETBPP (2000). Figure 2.8 Case Study - Warner Lambert Utility Savings Warner Lambert embarked on a "utility management programme" to reduce the amount of water and electricity used at its cough sweet manufacturing plant in Manchester. The focus of the initiative was the installation of 25 separate meters to monitor energy and water usage for various different operations. Reduction targets were set for each area of the business and over 30 saving ideas were generated by staff at the plant and by energy consultants, most of which were implemented. Priority areas for utility savings concentrated on reducing the weekend loads and within a month electricity demand had been reduced by 25 percent. Overall, electricity savings of 10 percent and water savings of 15 percent were achieved. Source, Personal communication, Enviros. 2.4 WATER & WASTEWATER TREATMENT INDUSTRY The water industry (collection, purification and distribution of water and treatment of wastewater) in the North West accounts for approximately 4060 jobs, primarily within North West Water Ltd but also including 1063 staff from the Environment Agency. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 17 Figure 2.9 Waste Water Treatment at the Smurfit Group The Smurfit Group, one of the largest manufacturers of corrugated boxes in the world, is committed to protecting the environment. As part of its manufacturing process, one of the priority areas it has addressed was the problem of process water discharge from the integrated plant in Warrington which produces corrugated cardboard and converts this into printed boxes. The process washdown waste waters had high concentrations of starch and printing inks (which were over the discharge consent limits for suspended solids, COD ("chemical oxygen demand") and metals), thus incurring heavy cost penalties. JLJ Effluent Engineering of Golbourne, near Warrington, were approached and solved the problem during 1997 by installing and commissioning one of their fully automated, packaged waste water treatment plants which uses chemical processing and a special rotary vacuum drum filtration system. This system is highly efficient with the result that the filtered water is well under prescribed consent limits to sewer and the factory is now able to recycle all this water for the manufacture of the starch adhesive and corrugator washdown. The benefits include a 35 percent reduction in mains water demand, equal to 3200 cubic metres/year, and lower costs due to the reduced volume to sewer and no charges for being over the consent limits. Source: Personal communication, Enviros March. 2.5 ENVIRONMENTAL MANAGEMENT IN INDUSTRY 2.5.1 Industry Environmental Management Posts This category includes internal environment management posts in companies, mainly the larger manufacturing companies with potential environmental issues to address. Institute of Environmental Management and Assessment (IEMA) estimates that there are between 7000 to 10 000 environmental management posts in the UK. This estimate appears reasonable in view of the fact that there are 13 000 companies with over 50 employees in industry sectors with potentially high environmental impacts where environmental control is important. Extrapolating on the basis of regional manufacturing GDP (14.4 percent of UK manufacturing GDP), this gives 1008 to 1440 (mid point of 1200). 2.5.2 Increasing Competitiveness through Environmental Management There are many projects which are being and have been delivered in the North West with the aim of helping industry make cost effective improvements to environment performance. Such projects have helped enhance industry competitiveness and generate jobs. Two examples of projects which have realised these benefits are presented in the case studies below. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 18 Figure 2.10 Case Study - Environet 2000: Environmental Improvements Save Over £2.6 million Environet 2000, a major EU-funded project has worked with 81 participating companies in the NW and has identified cost reductions totalling more than £2.6 million. Savings were achieved through simple measures such as waste reduction and recycling. "The supply chain is becoming a strong driver of change, both in the UK and abroad, and it is increasingly pushing supply companies to improve their environmental performance. The Environet project has been extremely worthwhile, not only because of the savings which it has helped firms to realise, but also because it has shown that companies can meet these growing demands and turn them to their advantage" - Ron Cochane, Environet Project Manager. Source: Environet 2000 Website. Clearly, the potential cost savings to industry are very important to the North West"s competitiveness and economic development. Figure 2.11 Case Study - Vauxhall Motors & ISO 14001 Since implementing ISO 14001 and EMAS at its Ellesmere Port factory in the UK, the company has not only reduced its environmental impacts, but also benefited from significant financial savings and a motivated workforce with a greater environmental awareness. Benefits included reducing its annual electricity costs of £4 million by £240,000 or 6 percent. eliminating air leaks further reduced the annual electricity bill by £105 000; reduced gas consumption of 5 percent on an annual bill of £530 000. The payback period on the investment to make this saving was approximately 7 month; improved water-use efficiency, resulting in annual savings of 5 percent, with a 10 month payback period on the investment to produce the savings; and waste minimisation and recycling produced annual savings of about £75 000. According to Ken Davies, Communications Manager at Ellesmere Port, "Managing the environmental process has been rewarded by substantial cost savings which are likely to increase in the future. There is also the added protection from the potential cost of litigation, which could arise as a result of non-compliance with regulations. These cannot be ignored." (Source BSI, 1999) 2.6 ACADEMIC INSTITUTIONS Sixteen university departments / academic organisations have been identified in the region which provide environmental R&D, training and provision of environmental services to companies. These organisations employ approximately 190 full time staff. Examples of these specialist environmental departments include: Department of Planning and Landscape, University of Manchester; Regional Development and Sustainability, University of Salford; ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 19 Institute of Freshwater Ecology; University of Lancaster"s Centre for the Study of Environmental Change; Liverpool John Moores University; Liverpool University"s Centre for Marine and Coastal Studies (CMACS); and National Centre for Business & Ecology (Manchester Universities such as UMIST, University of Salford, University of Manchester, Manchester Metropolitan University). 2.7 PUBLIC SECTOR ENVIRONMENTAL 'SERVICES' The scope of the study includes private, public and voluntary sectors. Public sector organisations involved in the delivery of environmental services include the region"s 46 local authorities. Local Authority environmental posts include Local Agenda 21 officers, energy efficiency, environmental business support to industry, environmental protection and pollution control officers, waste management officers, landscape teams. Response rates from local authorities sent questionnaires during this study were very poor - local authority environmental posts in the North West have therefore been estimated at 330. Other public sector organisations providing environmental "services" include the Environment Agency; North West Development Agency (including English Partnership teams), and Government Office for the North West. The Environment Agency in particular is a very important contributor to the environmental economy. Established in April 1996 to "provide a better environment for England and Wales, both for the present and for the future", the Agency has a wide range of duties and powers. These relate to environmental management, the use of which is required by Government to help achieve sustainable development. At the heart of sustainable development is the integration of human needs and the environment within which we live. The principal and immediate environmental concerns of the Environment Agency relate to: addressing the causes and effects of climate change; helping to improve air quality; managing our water resources; enhancing biodiversity; managing our freshwater fisheries; delivering integrated river basin management; ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 20 conserving the land; guarding against pollution; and managing waste; and regulating major industries effectively. In the North West region, the delivery of all these services cost approximately £56 million in 1999/2000. The organisation employed 1089 people (Full Time Equivalents) over this period; for the purpose of assessing the size of the environmental economy, 1063 Environment Agency staff have been allocated to water and waste water treatment with the balance included in the Natural Environment (these staff appear in Table 2.1). Turnover is split similarly with £54.4 million allocated to water and waste water and £1.6 million to the Natural Environment. 2.8 NOT FOR PROFIT ORGANISATIONS As well as private sector suppliers and public sector organisations with responsibilities for the environment, there are many "not for profit" organisations in the North West providing services such as environment management support to industry. A survey by Sustainability North West in 1998 found that there were 182 different organisations delivering 400 different projects to support industry improvement in environmental performance. These organisations include: Groundwork; Sustainability North West; Carlisle Business Forum (Business Environment Network); Cheshire Chambers Environmental Ltd (CCEL) ; WREN Centre – Wirral Regional Environmental Network; Knowsley Industrial Waste Initiative (KIWI); Lancashire Centre of Environmental Excellence for Industry (LCCEI); Merseyside Innovation Centre; Manchester Chamber of Commerce and Industry; East Lancashire Business Environment Network (ELBEN); Westlakes Research Institute; Bolton & Bury Technology Management Centre; and BiE (North West Green Business Clubs). It is estimated that there are approximately 350 people employed within these organisations and initiatives in the North West. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 21 Figure 2.12 Case Study - Groundwork North West Groundwork has over 200 staff in the North West and undertakes a wide range of environmental activities, including: Environmental Business Services (EBS) - A network of practitioners providing locally focused environmental support, motivation and assistance to small and medium sized companies. Making the Most of the Millennium - to improve the environment to celebrate the Millennium. The Groundwork Changing Places national programme, supported by the Millennium Commission, is helping local communities all over the country to breath new life into derelict or under-used land in their area. In the North West there are five Changing Places, large-scale programmes, regenerating the region for the benefit of local people. SRB Partnerships - Groundwork works within economically, socially and environmentally deprived areas of the North West of England to bring about sustainable, economic regeneration, working with communities, business and local government. Source3: Groundwork website. 2.9 TRANSPORT The transport industry is essential for the carriage of people and goods and facilitates the operation and competitiveness of the regional economy. In the recent past there has been a positive relationship between economic development and mobility, however there is a growing awareness that this relationship is not sustainable in the longer term. The transport industry has a major impact on the global and local environment and on the quality of life for individuals - especially those living close to its infrastructure. It is estimated that road transport in the North West is responsible for some 19 percent of the region"s emissions of greenhouse gases (expressed as carbon dioxide equivalents) and emissions from transport are projected to increase (Mander et al, 2000). Diesel exhaust accounts for an estimated 40 percent of the total emission of particulate pollution in the UK, which has adverse effects on the heart and respiratory system. In addition to the emission of pollutants, environmental impacts from transport include the effects of noise, visual intrusion and the demand for additional infrastructure, which in turn has implications for resource use, habitat loss and further incursion of human pressures into undisturbed areas. It is clear that the transport sector as described above does not have a place within the classification set out in the introduction of this report. For the most part, it does not aim to protect or improve the environment, nor is it dependent upon a high quality environment. The same applies to new communications technologies, the development and use of which does not tend to be driven by environmental needs - rather its inspiration is the potential for savings in time and costs. Yet our research has indicated that within the sector there are some activities that do meet these criteria. It is these activities, which chiefly aim to actively encourage a shift from less sustainable to more sustainable modes, with which we are concerned. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 22 Figure 2.13 Case Study - Video Conferencing and Technology Use Savings made by the Environment Agency's Video Conferencing service between April 1999 and Dec 1999 have been estimated at 5 years" travelling time, 500,000 miles, £600,000 in mileage and wages and 66 car tyres. In the future it is likely that increased use of developing technologies such as video conferences, e-mail and the internet will dampen down growth in transport demand but the upward trend is likely to continue. Recent evidence from a survey undertaken for Ayscough Travel Agency, a national agency operating in the business travel sector with ten offices nationwide, suggests that 30 percent of respondents have reduced their need for business travel through the use of new technologies such as video conferencing, the internet and e-mail. Source: Personal communication, Environment Agency and Ayscough Travel, (2000) Data covering the transport sector as a whole is available at a regional level; thus it is known that (for example) the North West"s transport and communications activities employed 119 700 in 1996 (ONS, 1999a) and had a value of £5139 million (ONS, 1999b). About 12 percent of these employees worked in the public transport sector, but since the majority of public transport jobs cannot claim to be environmentally-driven, even this level of disaggregation is not sufficiently detailed for our purposes. In fact, sub- regional data and data relating to the particular parts of the sector which meet the criteria set out in the introduction are much harder to identify. Because of the difficulty in obtaining reliable income and employment data at the micro level, a case study approach has been taken. The following case studies provide examples of the kind of transport activities going on in the North West which aim to improve environmental quality in the region, at least as a secondary aim. Figure 2.14 Case Study - Metrolink Latest information received from Metrolink, Greater Manchester"s tram system, relates to the core Bury – Manchester - Altrincham route. Data relating to the recently opened Salford Quays extension is not yet available. On its core lines, Metrolink carries around 13 million passengers per year, some 2.6 million of which (20 percent) would have been made by car. Roads running parallel to Metrolink have experienced reductions in traffic flow of up to 10 percent. Surveys show particularly large transfers from car to Metrolink for journeys to destinations close to Metrolink stations: 21 percent of morning peak journeys in the Altrincham corridor; 14 percent of morning peak journeys in the Bury corridor; and 49 percent of weekend trips in the Altrincham corridor. Though an analysis for induced and indirect jobs created was not undertaken for the original Bury – Altrincham route, estimates for the 6.4km Eccles via Salford Quays extension suggest that the line will create "over 3,000 jobs in the Salford Quays area" (source: Metrolink). Some 6 million passengers are forecast on this extension annually. At present, some 200 operations staff work on the Bury - Altrincham line (not including Salford Quays extension). Based on the 20 percent of car journeys that switched to Metrolink (see above), of the total 300 direct jobs, it can be estimated that 40 of these jobs represent a positive contribution to the environment. Source: Personal communication, Metrolink ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 23 Figure 2.15 Case Study - Lake District Transport Initiative The Lake District Transport Initiative is sponsored by Cumbria County Council and dates from 1993. It includes all modes of transport ranging from bus, bicycles and boats. It has a long term vision of regenerating the entire transport system with sustainability and improved accessibility as its main priorities. The aim is to achieve a sustainable system for the future that integrates the economic, social and environmental needs of Cumbria. In practical terms, there is particular emphasis on promoting alternative, sustainable modes of transport to the car. There are eight principal aims of the initiative: to enable local communities to go about their normal business; to improve the accessibility of the National Park to all, regardless of disability; to ensure the National Park remains accessible for quiet enjoyment; to reduce traffic and parking congestion; to reduce the traffic impact on the environment; to manage demand for private car travel at a level consistent with supply provided by existing roads; to offer alternative modes of transport to the car; and to maintain the tourist industry and assist it in becoming sustainable. One of its main strategies is to promote environmental awareness and the use of information boards helps facilitate this. People are encouraged to use their cars less while incentives to switch to more sustainable modes are being offered. For example, alternative modes of transport are being made more attractive through the provision of new bus stops, improvement of lake services and implementation of an integrated ticket system. Figure 2.16 Case Study - The Bowland Bus In 1997 the Bowland Bus was introduced to the Hodder Valley. This enterprising project to keep cars out and get people in was short-listed in 1998 by the British Guild of Travel Writers as one of the best environmental tourism projects in Britain. It links places including Preston, Clitheroe and Lancaster which in turn link with Liverpool and Manchester, allowing users to travel into the heart of the country without taking the car from the garage. Figure 2.17 Case Study - Egremont: Sellafield Cycle Way The proposed Egremont to Sellafield cycle way is a good example of a project which joins partnership working, green transport planning and links with national initiatives. The project is being managed by Groundwork West Cumbria and funded by a partnership including the Regional Development Agency, British Nuclear Fuels Ltd (BNFL) and Copeland Borough Council. BNFL"s financial contribution is being made directly and also through the Landfill Tax Credit Scheme, administered in this case by Sustainability North West. The cycle way will become part of the National Cycle Network (partly Millennium Commission funded) as well as the local and regional cycle network through its links with the established Cumbria Cycle Way. Seats will be established at regular intervals, together with picnic tables, signage and interpretation boards if funding permits. 4.2 kilometres of track is to be built. Groundwork West Cumbria have been building cycle ways since 1990 but this particular project is an interesting partnership which should enable local people (including staff cycling to work at the BNFL plant) and leisure users to travel through the area safely and in an environmentally responsible way. The project will take six months to complete, using volunteer labour as well as a New Deal Training Team. Source: Personal communication, Groundwork West Cumbria ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 24 Figure 2.18 Case Study - Development of Improved Through-Ticketing Arrangements There is potential to build on existing North West examples of multi-modal through ticketing in order to encourage the use of integrated transport as an alternative to the private car. One particular example of this is an arrangement established between Blackpool Transport Services (BTS), First North Western and Northern Spirit to provide travel tickets valid for travel on Blackpool Transport"s trams and trains and on First North Western and Northern Spirit trains. BTS are the major operator in Blackpool, the Fylde Coast, Lytham St Anne"s and Fleetwood and the arrangement with First North Western and Northern Spirit ensures that multi-modal through-tickets can be purchased from most railway stations in Yorkshire and the North West. Passengers have the benefit of a "one ticket covers all" arrangement which offers price savings compared to buying individual tickets while financial arrangements between the Blackpool Transport and the train operating companies are balanced via the Rail Settlement Plan. The initiative, which is primarily aimed at the 17 million day trippers visiting Blackpool each year, began in August 1999 with the joint goal of increasing revenues for the public transport operators and reducing the use of private cars among visitors to Blackpool. The scheme is now in its first full tourist season and is being backed by a marketing campaign. Plans are being developed to establish another ticket the price of which will include all public transport to and within the Blackpool Transport area, as well as admission to the Pleasure Beach. Source: Personal communication, Blackpool Transport Services 2.10 THE NATURAL ENVIRONMENT This section considers the economic impacts of activities to protect the NW"s natural environment. This involves identifying the jobs and economic value associated with initiatives run by organisations such as: British Waterways; Forestry Commission; RSPB; North West Water; English Nature; Countryside Agency; National Trust; MAFF Farming and Rural Conservation Agency; Wildlife Trusts; Farming and Wildlife Advisory Groups; BTCV - British Trust for Conservation Volunteers; Going for Green; Landlife; Mersey Basin Campaign; Merseyside Environmental Trust; and Mersey Valley Partnership. The RSPB carried out a survey in the North West Region which aimed to quantify employment and expenditures related to the protection and management of the natural environment (RSPB, 2000). This revealed that the region"s natural environment sector spends at least £60 million per year (this figure excludes grants given to other organisations to avoid double counting). Of this, £32.8 million is spent on wages, salaries and staff costs, and £12 million is spent on purchasing goods and services from suppliers within the ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 25 North West region. These figures are likely to be an underestimate of the true regional spend, as they account for the expenditure of 87 organisations out of the 200 surveyed. Although many of the non-respondents were small organisations or had little involvement in the sector, only half the local authorities surveyed responded. Organisations surveyed included a variety of central government departments and agencies, non-governmental organisations, private companies, partnerships and projects. In terms of employment numbers, the survey revealed that there are at least 1431 jobs in the natural environment sector in the North West, which represents the equivalent of 1193 full-time equivalent (FTE) jobs. Again, this is likely to be an underestimate of the true picture across the region. Protection and management of landscape, habitats or species accounts for 610 of these jobs (FTE) while another 92 are employed in survey and monitoring work. Administrative and financial support employs another 162 full-time equivalents. Volunteer input into the natural environment sector is very important: the survey revealed that organisations who responded employ 4095 volunteers working a total of 19 834 hours per week. Conservation of the natural environment has important links with other sectors, and particular projects often provide associated benefits beyond the direct conservation objectives which the project sought to fulfil. These include improved visual amenity for those who live close to the sites, quality of life benefits for visitors to nature conservation sites (for example through improved social inclusion and health benefits through participation), potential economic benefits through employment opportunities, and, provided activities are sensitively managed, recreation and tourism opportunities. The following case studies illustrate some of the potential benefits which have been achieved through the implementation of conservation projects. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 26 Figure 2.19 Case Study - The Mersey Basin Campaign The Government backed Mersey Basin Campaign brings together local authorities, businesses, voluntary organisations and government-sponsored agencies to deliver water quality improvements and waterside regeneration throughout the Mersey Basin river system. The Campaign, launched in 1985, has the following core objectives: To improve water quality so that all rivers, streams and canals within the Mersey Basin Campaign area are clean enough to support fish by 2010; To stimulate the strategic development of attractive, sustainable waterside environments- for wildlife, recreation, heritage, housing, business and tourism; and To encourage communities in all sectors to value and cherish their watercourse environments. The Campaign works with volunteers and partners such as NW Water to bring improvements to the river system. For example, River Valley Initiatives (RVIs) focus on particular stretches of watercourse and associated land in order for local people and organisations to identify with the Campaign and take action for themselves. For each RVI, a steering group is brought together to establish local priorities. Individual problems and opportunities will be identified; the ways in which improvements can be made will be mapped out; and local volunteers, businesses and public authorities will work together to take action on the ground. The involvement of over 4,000 volunteers in the Mersey Basin Campaign is estimated to be worth £2 million. In recognition of its achievements, particularly in relation to bringing regional partners together, the Mersey Basin Campaign was awarded the first International Riverprize for Best River Management Initiative, 1999. Source: Personal communication, Mersey Basin Campaign Figure 2.20 Case Study - Ribble Estuary National Nature Reserve The Ribble Estuary National Nature Reserve is managed by English Nature and includes most of the estuary which is of international importance for its habitats and wildlife, especially its bird populations. Management of the reserve delivers outputs that improve the quality and extent of the wildlife habitats and contributes to the local economy. Co- ordinated management of local wildfowling clubs has increased the bird populations through the establishment of conservation sanctuaries. The resource is also used by about 700 cattle from local farms which graze the saltmarshes from April to September. Source: Personal communication, English Nature ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 27 Figure 2.21 Case Study - Links Between Conservation and Health: The Green Gym The British Trust for Conservation Volunteers is setting up projects nationally called Green Gyms. On these schemes, volunteers put themselves forward in order to gain health benefits from active participation in conservation work, with the endorsement or recommendation of a health professional. This is often their GP, but more general interest has been shown from health authorities and health promotion officers in local authorities. Research commissioned by BTCV has shown that 44 minutes of a conservation task sustained cardiovascular rates at a level equivalent to a 24 minute aerobic session, and exceeded the amount of calories burned by 28 percent. Furthermore, participants viewed the Green Gym as being of benefit to their mental health and gained socially from taking part in the sessions. Clearly, as well as conservation benefits, the added benefits of Green Gym are that feelings of well- being and value are enhanced, participation is sustained for a longer period of time than with normal exercise programmes, and the activity appeals to a wider range of ages and social groups than aerobics classes (Reynolds, 1999). BTCV is currently negotiating to establish 13 such schemes in the North West region. Source: Reynolds (1999) and personal communication, BTCV. Figure 2.22 Case Study - Links Between the Environment and Employment: Green Apprentices Green Apprentices Ltd is a wholly owned subsidiary of the two Groundwork Trusts on Merseyside, established in 1998 following a successful Single Regeneration Partnership (SRB) bid of £2.1m to 2004. The Company is a Merseyside-wide Intermediate Labour Market organisation, providing supported employment and training in the environmental sector to unemployed people across the region. As a private company limited by shares held by its parent companies, Green Apprentices Ltd has the flexibility and potential to generate revenue as a not-for-profit enterprise through commercial and grant funded activities. The company primarily (although not exclusively) recruits "Apprentices" through the New Deal (18-24) contracts it holds in four Merseyside boroughs. The employment package offered to the apprentices consists of a wage of £135 per week for either 26 or 52 weeks, (depending on availability of European Social Fund money) individual training and development programmes plus comprehensive skills training. The core staff has expanded from one in October 1998 to 14 (as at 1 July 2000) covering areas of project development and management, supervision and training, human resources, finance and administration. The company's key aims are to increase the skills and confidence of apprentices to help them to secure full time employment in the competitive labour market. The work programmes for the existing workforce of 50 apprentices, within the broad context of environmental work, include projects as diverse as Horticulture/Landscaping and Conservation to Youth Work and Environmental Business Services. As at end June 2000, 40 percent of Apprentices who left Green Apprentices Ltd went into full time employment. This key indicator is one that the Company seeks to exceed - with an overall target of 60 percent of leavers into jobs by 2004. Source: Personal communication, Groundwork ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 28 ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 29 3 THE PRIMARY SECTOR This section addresses links between environment and the regional economy in the primary sector and is divided into four key parts: agriculture, fisheries, countryside sports and forestry. In the first part of the chapter, under the heading of agriculture, the following issues are addressed: agri-environment schemes; organic farming; upstream and downstream agricultural industries; and regional produce and local marketing. In the second part of the chapter, as part of fisheries, we examine: freshwater fisheries; and inshore fisheries. In the third sector, countryside sports are addressed, while in the final part attention is turned to forestry. Data which has been collected indicates the following contributions in terms of jobs and expenditure, the latter expressed as a turnover. Table 3.1 Environment Related Jobs and Expenditure in the Primary Sector Activity Jobs Expenditure Environmentally beneficial 99161 £7.7 million farming Organic farming 2082 not known Regional produce and local not known not known marketing Freshwater fisheries 1453 £49.5 million Countryside sports 4 2104 £52 million Forestry 5 <750 £50 million Total >13 123 £159.2 million 1 Extrapolating employment effects of Countryside Stewardship Scheme to hectarage covered by all agri-environment schemes 2 Based on 20 percent additional on-farm jobs in organic farming 3 Extrapolation of assessment of Lune Rod and Net Fishery to whole region, plus Environment Agency employment 4. Only covers shooting and stalking activities, estimated from regional membership numbers. 5 Consultant"s estimate for core forestry business based on overall sector and non-core available figures. Expressing this figure of £159.2 million in terms of value added rather than simply turnover implies a GDP contribution for the environment related ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 30 primary sector as shown in Table 3.1 of approximately £72 million.(1) This figure is most likely to be an underestimate. 3.1 AGRICULTURE 3.1.1 Agriculture in the North West 80 percent of the 14 165 km2 of land in the North West is used for agriculture. The total agricultural land area of the North West in 1997 was 892 763 hectares (excluding common land). There were 17 397 agricultural holdings in the North West in 1997, which represented a decline of 10 percent over the previous ten years. Of those, 37 percent were classified as cattle and sheep holdings, and 24 percent were dairy holdings. Table 3.2 Agricultural Land Use in the North West Land Use Percentage Grassland > 5 years 52 Grassland < 5 years 11 Rough grazing 20 Crops and fallow 13 Farm woodland 2 Other land 1 Set-aside 1 Source: MAFF, 2000a The predominant agricultural land use in the region is grassland, farmed intensively in the lowlands and river valleys primarily for cattle grazing. In the uplands, grassland management is less intensive and sheep grazing predominates, particularly in Cumbria and parts of Lancashire. Cereal production has declined, but is still important on the Lancashire coastal plain, the northern Cheshire plain, along the lower Eden valley and on the Solway plain in Cumbria, barley being the main cereal crop. The best quality agricultural land (grades 1 and 2) is found on the West Lancashire plains and in the Mersey Basin, where agriculture is dominated by market gardening, although regionally this accounts for less than 1 percent, about half the national average. Pig and poultry production represent important enterprises despite the number of holdings decreasing in recent years. The highest proportion of poor quality land (grade 5) is found in Cumbria (MAFF, 2000a). (1) This estimate is based on a value added to turnover ratio of 0.45, this ratio being a weighted average of value added to turnover ratios of the agriculture, fishing and forestry industries presented in ONS (1997). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 31 Table 3.3 Agricultural Land Classification in the North West ( percent) Classification North Cumbria Lancashire Greater Merseyside Cheshire England West Manchester Grades 1 & 2 7.1 1.5 13.8 3.9 20.3 12.5 16.1 Grade 3 30.8 26.8 27.7 16.1 15.2 59.2 43.6 Grade 4 17.7 20.7 22.6 16.1 1.8 8.0 12.7 Grade 5 24.6 39.4 20.0 7.6 3.1 2.8 8.3 Non- 11.9 9.5 4.9 9.0 11.1 5.7 10.1 agricultural Urban 7.9 2.1 11.0 47.3 48.5 11.8 9.2 Source: MAFF 2000a Agriculture is estimated to contribute 0.7 percent to the region"s GDP, the second lowest for any region and half the UK average of 1.4 percent. The total agricultural workforce in the North West in 1997 was 44 593 people, made up as follows: Table 3.4 Agricultural workforce in the North West (employed and self-employed), 1997 Number Percentage Full-time workers 28 517 64 Part-time workers 10 467 23 Seasonal or casual 5609 13 Total 44 593 100 Source: MAFF 2000a Agriculture accounts for 1.7 percent of the region"s 2.7 million workforce, although in rural areas the percentage can exceed 25 percent. The number working in agriculture has shown a marked decline in recent years, although the North West region has fared somewhat better than the national average. In the ten year period 1987-1997 there was a 7.7 percent reduction in the total agricultural workforce of the region, compared with a national figure of 15 percent. (MAFF 2000a) The significance of agriculture in employment terms is much greater when ancillary jobs in associated industrial sectors are taken into account, and there are significant industries directly dependent on agriculture. A recent study by the Scottish Agricultural College for Angus Council reported a multiplier of 2.2 for jobs in industries ancillary to agriculture (SAC and EKOS Economic Consultants, 1998), for example hauliers, markets, meat, dairy, food processing. On this basis, it is possible that a further 38 000 jobs in the North West are dependent on primary agriculture (MAFF 2000a), though it would not be accurate to claim that these workers were part of the North West"s environmental sector. Clearly, although the agricultural sector has declined in significance in the region and the UK as a whole, in terms of employment numbers and percentage contribution to GDP, it is nevertheless still central to the economies of rural areas and has a major influence on their environmental quality. Agriculture is still a significant employer in rural areas and plays an important role in maintaining the viability of rural communities. There are ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 32 also important links with other economic activities, including upstream and downstream industries which are dependent on the vitality of the agricultural sector. Conversely, initiatives which promote regional qualities and attributes of agricultural produce can contribute to sustaining the sector in the North West. Finally, strengthening links with other economic activities such as tourism can bring mutual benefits for each, while diversification into other rural industries helps to sustain communities. The study therefore aims to highlight where there are important links between agricultural activity which is environmentally beneficial and other activities which can promote and sustain rural economies. 3.1.2 Environmentally-Beneficial Farming Although agriculture is generally dependent on the quality of the environment, not all agricultural activity has a beneficial effect on the environment. The study therefore aims to quantify the economic contribution only of those sections of agricultural activity which make a positive contribution to the quality of the environment. As a proxy for this, we have taken agricultural activities which receive some form of financial grant or subsidy in return for undertaking environmental protection or enhancement work. The following schemes have been identified in this context: ESAs; Countryside Stewardship Scheme; English Nature Management Agreements; Wildlife Enhancement Scheme (English Nature); Other MAFF schemes (Moorland Scheme, Habitat Scheme); National Park Schemes; Organic Aid Scheme; and Organic Farming Scheme. In total, these schemes cover 21 percent of the agricultural area of the region. Environmentally Sensitive Areas include the Lake District, parts of the North Peak, the South West Peak and the Pennine Dales, and within these areas landowners and occupiers are paid to adopt environmentally beneficial agricultural practices. Outside ESAs, the Countryside Stewardship Scheme targets the conservation and enhancement of some key English landscapes, features and habitats, and where appropriate, improvements in public access. The scheme offers 10-year management agreements with annual payments per hectare and a wide range of accompanying capital grants. English Nature"s Management Agreements are entered into to achieve the appropriate conservation management of Sites of Special Scientific Interest in private ownership. Previously, management agreements have been used to compensate for any profit foregone due to the implementation of sustainable management, but more recently they have been used to fund positive works designed to deliver appropriate management. The payments for these works ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 33 are either taken up directly by the farmer when the work is undertaken, or they are made to contractors. The Wildlife Enhancement Scheme, another English Nature initiative, is a streamlined area payment targeted at habitats such as lowland mires and upland limestone grassland. The Moorland Scheme, now closed to new applicants, provides money to upland farmers outside ESAs to reduce stocking densities and manage land to improve the condition of heather moorland. Annual payments are made per ewe removed. A number of agreements are still in existence. The Habitat Scheme gives annual payments per hectare for extensive management or set-aside of waterside land. This scheme is also now closed, although a number of agreements are still in operation. Lake District National Park Schemes aim to provide financial support for agri- environment work which are not covered by existing schemes. They include management agreements for species-rich hay meadows and grazing compensation for the exclusion of stock to create new native woodlands. Data is not available on the number of hectares covered by these schemes, although this is thought to be small in comparison to the coverage of other schemes in the region. Table 3.5 Environmental Schemes No. Of Area under Annual commitment (£) agreements agreement (ha) Countryside Stewardship 1045 20 538 2 855 000 (99/00) ESA > 361 137 905 4 400 000 (estimated) EN Wildlife Enhancement Scheme 95 12 004 183 667 (99/00) EN Management Agreements 137 14 747 157 961 (99/00) Other MAFF schemes 29 3431 98 279 (last scheme year) National Park Schemes n/a n/a 10 000 (98/99) Total agri-environment > 1667 ~ 190 000 7 700 000 (estimated) Source: MAFF 2000a and personal communication, English Nature In a study of the socio-economic impact of the Countryside Stewardship Scheme undertaken for the Countryside Commission (CEAS Consultants and University of Reading, 1996), net changes to the use of farm labour were equivalent to 50 FTE when extrapolated to the whole of England. The increased use of outside contractors and advisors was more significant and equivalent to hiring 48 250 person days (about 220 FTE) nationally per year. Extrapolating to the North West region on the basis of hectares covered by the scheme gives 53 FTE jobs created directly. The study (ibid) also reports a positive but unquantifiable impact on employment by contributing to job maintenance and job security: nationally, farm employment has been in long-term decline, while holders of scheme agreements have largely maintained or increased farm labour since joining the scheme. If this is further extrapolated to all areas covered by agri-environment schemes in the North West (188 625 hectares), this gives a total of 485 FTE jobs ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 34 created on-farm, and a conservative estimate of a total of 9916 on-farm jobs in environmentally beneficial agriculture (1) . An economic review of five ESA schemes was undertaken in 1996 (ADAS, 1996). Farmers participating in the schemes were asked how this had affected employment and income on their farms. The results showed that the schemes had increased on-farm employment, although this varied between the different ESAs by between 3 and 38 percent. However the effect on farm incomes was believed to be broadly neutral. Clearly, schemes to promote farming methods which have a beneficial environmental impact can also have positive outcomes for on-farm employment, both in terms of job numbers and the stability of the farming business. The following two case studies give examples in the region where the synergies between these two issues are exploited. The outcomes of both of these case studies has been to contribute to the viability of upland farms and to help inform changes in agricultural policy instruments. (1) This is based on an average figure for agriculture of 1'job' (ie including full-time, part-time and casual or seasonal jobs) for every 20 hectares, plus a minimum of 485 jobs created by agri-environment practices. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 35 Figure 3.1 Case Study: Bowland Initiative The Bowland Initiative Project is designed to deliver both environmental and economic benefits to farmers in the Bowland area. It does this by integrating proposals for business support under the Objective 5b Programme with access to existing environmental schemes, mainly the Countryside Stewardship Scheme but it could include other agri-environmental schemes if appropriate, particularly the Organic Farming Scheme. Approximately £3.1m is available to support projects, and 39 had been approved by December 1999. The initiative is run by a group of local partners headed by Lancashire County Council, District councils other agencies and local farmers, and employs three full-time staff. Grants are available for on-farm improvements to achieve environmental goals and meet the criteria of local meat brands and livestock quality assurance schemes. Local groups are encouraged to apply for grants for: processing and marketing of foods or goods that have been produced in a way which provides conservation benefits; support to business and related rural skills; support for green tourism; provision of business and conservation advice and training; and environmental grants especially tailored to the local areas. Farmers are provided with a free business and environmental appraisal, and assistance towards additional business and marketing advice and help with obtaining grants for on-farm improvements and with preparing applications to join a variety of environmental schemes. Five individual aims have been identified for the initiative: to enable the rural community both as individuals and groups to develop, promote and market their primary, added value and tourism recreation products using the environmental characteristics of the area as selling points; to help farmers identify the environmental features of their holdings, and implement environmental management plans which will increase the area"s quality and biodiversity, and to use these environmental assets to aid sustainable economic development of the area; to provide assistance to rural businesses to develop, diversify and add value to their businesses to enable them to enter new markets in ways which complement or enhance the environmental value of the area; to provide appropriate and relevant training and skill development which enables rural businesses to better meet specific market requirements; and to provide for the personal well-being of the rural community and in particular, to help farmers, agricultural workers and their families to come to terms with change and overcome barriers to achieving optimum economic performance. Demand for involvement has far outstripped supply, and the waiting list has now closed with another 20 months of the project still to run. In respect of core activity, every farm business in receipt of a phase I business appraisal has opted to go to phase II - the submission of an integrated plan for grant support. Most staff and partners involved in the initiative believe that there has been significant cultural change in the area over the last two years. Achievements to date include: establishment of a voluntary tourism and environment fund; establishment of a livestock farmer action group; establishment of a dairy farmer focus group and strategy; 32 Countryside stewardship agreements approved; 20,000 riverbank buffer strips/fencing; 84 business appraisals; 19 grants approved to businesses diversifying into new activity; 29 business development grants approved; 12 businesses entering marketing accreditation scheme; 6 grants approved for new contracting businesses; 2 full-time jobs created; 94 people trained; and 1 district nurse in post. Source: Stratagem Ltd (2000) and The Bowland Initiative (1999). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 36 Figure 3.2 Case Study: Cumbria Farm Link Cumbria Farm Link runs a Farm Support Programme, which operates a whole farm audit and advisory service including in-depth analysis of the farm business, the environment and other assets. The programme provides access to a range of grants to encourage diversification and developments leading to improved financial performance, and has the twin objectives of economic and environmental sustainability. Grants are given for development work which places emphasis on business viability, environmental and welfare benefits, creation of jobs, co-operative activity and wider benefits to the rural economy and environment. Cumbria Farm Link is part-funded by the Structural Funds Objective 5b Programme. Farmers within the programme area are offered a farm business and environmental review, where an adviser will visit and review all aspects of a farm, and then prepare a practical report of the farm business and environment and an action plan to help the farmer to decide next steps. This may include the preparation of a Development Plan, 50 percent funded by the programme, which may recommend training courses or specialist advice. Grants are also available to the farmer for eligible developments, up to a maximum of 50 percent, which may be in one of the following categories: Beef and Sheep Scheme, providing capital and quality assurance/traceability assistance to improve environmental management and business management of the core business, demonstrating environmental and/or welfare benefits; Farm Diversification Fund, providing capital and marketing assistance for eligible businesses to diversify (non- tourism) away from the core agricultural enterprises; and Local Food and Drink Fund, providing capital and marketing assistance to develop or expand local food and drink enterprises. Data available on Farmlink shows that the scheme has achieved the following environmental benefits in terms of features protected or enhanced: 150 hectares of grassland, woodland or wetland; 2.43 kilometres of riverbank; 7.22 kilometres of hedges; and 279.2 kilometres of dry stone walls. and in addition has secured the following economic and social benefits; 396 business audits; 366 environmental audits; 233 action plans and development plans; 38 jobs created; 38 jobs safeguarded; and in a survey of participating farmers, 57 percent reported an increased awareness of the economic opportunities presented by the environment. It is expected that these figures will be improved still further, given that the scheme has over a year left to run. Source: Stratagem Ltd (2000) and Cumbria Farm Link (1999) ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 37 3.1.3 Organic Farming In the North West region, 3471 hectares of land is covered by organic farming schemes (MAFF, 2000a). This represents 0.4 percent of the total agricultural area. Table 3.6 Uptake of Organic Aid Scheme and Organic Farming Scheme County Organic Aid Scheme Organic Farming Total Scheme No of Area No of Area No of Area agreements covered agreements covered agreements covered (ha) (ha) (ha) Cheshire 5 328.87 9 716.37 14 1045.24 Greater Manchester 0 0 1 60.35 1 60.35 Merseyside 2 187.73 1 47.52 3 235.25 Lancashire 6 327.81 4 189.06 10 516.87 Cumbria 8 1462.34 5 150.99 13 1613.33 Total 21 2306.75 20 1163.96 41 3470.71 Source: MAFF 2000a A study scoping the environmental economy in the Southern Pennines (DTZ Pieda Consulting, 2000) reports that it is estimated in a number of studies in different countries that between 20 percent and 100 percent more labour is required on organic farms, depending on the diversity of the enterprise, the extent of on-farm marketing and processing activity and the importance of vegetable and root crops. Small organic farms tend to have higher labour requirements per hectare than larger enterprises. Taking 20 percent as a conservative estimate of the extra labour required on organic farms, it is estimated that organic farming in the NW currently accounts for 208 jobs, based on a regional average for the sector as a whole of 1 "job" per 20 hectares (this includes full-time, part-time and seasonal/casual labour). Other Schemes The majority of Cumbria and part of Lancashire are designated as Less Favoured Areas, most of which is classified as severely disadvantaged. In these areas, Hill Livestock Compensatory Allowances (HLCA) are paid on eligible breeding sheep and cattle. However, although the scheme supports the viability of farming in LFAs by supplementing farm income, the payments are currently made on a per head basis, and therefore tend to encourage higher stocking densities which leads to overgrazing and a consequent loss of species diversity on upland moorland. It is likely that in the future the payment scheme will be adjusted to reflect both social and environmental concerns, and it is expected the scheme will be replaced in 2001 by a Hill Farming Allowance where payments will be made on an area basis. In 1998, there were 3892 HLCA claims in the region, covering a total eligible area of 445 642 hectares, accounting for a total amount paid of £8 489 559 (MAFF, 2000a). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 38 3.1.4 Problems in Including Upstream and Downstream Agricultural Industries The economy of the region"s rural areas is poorly integrated with that of the region as a whole, with little producer involvement in the more profitable downstream industries. For example, agriculture in the region is dominated by the livestock sector which has low profitability. However a low proportion of stock is finished within the region and group marketing accounts for a very small proportion of finished animals sold in the North West. There is therefore scope for the region"s primary producers to improve their returns through more integration into the supply chains through better marketing, collaborative ventures, stronger links with distributors and consumers and inter-regional collaboration. A total of 1,067 businesses have been identified in the region which are directly dependent on the agricultural sector, for example merchants, wholesalers, contractors, dealers, dairies and other processors, hauliers and machinery manufacturers and suppliers (MAFF, 2000a). Many of these businesses will be heavily dependent on agricultural production within the region. (Exceptions to this are likely to be the manufacturers of agricultural chemicals and machinery, and also food processors to an extent.) Indeed, a recent study on agriculture and horticulture in West Lancashire (Garrod and Willis, 1999) reported that over half of the farmers surveyed felt that in choosing suppliers the fact that they were local was important. Any decline in levels of agricultural production is therefore likely to have serious knock-on effects for other sectors within the region in terms of a decline in income generation. However, for the large majority of agricultural supply businesses it is difficult to estimate how much of their business is dependent on agriculture which is environmentally beneficial. It is also not clear that the replacement of, say, intensive farming methods with environmentally more beneficial practices would have any impact on some of these businesses, for example hauliers or livestock auctioneers will presumably deal in all types of produce, regardless of how it is farmed. For these reasons, estimates are not included in the numbers of jobs dependent on the environment or related to environmental quality. A reduction of intensification generally would imply a reduction in yield and therefore the impact on downstream businesses, if any, could be adverse. To illustrate, a model on the Countryside Stewardship Scheme (CEAS Consultants and University of Reading, 1996) revealed an increase nationally of 259 FTE jobs indirectly related to inputs, but 509 indirect losses from changes in outputs, a net indirect effect of 250 FTE job losses. The effect on indirect jobs in the North West from all agri-environment and organic farming is estimated to be 474 jobs created relating to increased inputs, but 931 jobs lost due to reduced outputs. Job losses are likely to be located among larger businesses in distant or urban centres and hence fairly dissipated in nature, while the job gains would tend to be concentrated in the locality of farms. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 39 It might be successfully argued that there is a sufficiently strong link between regional agricultural suppliers and agri-environment farming within the region, and that there is a certain dependency on the existence of agri- environment farming for a percentage of their market outlets which may not otherwise exist. On the basis of such a line of reasoning this case we estimate that, of the 3000 regional jobs in wholesale of agricultural raw materials, live animals, machinery and accessories (Office for National Statistics, 1999a), 645 are related to the supply to environmentally beneficial agriculture. This is based on 21.5 percent of the region"s agricultural area being farmed in an environmentally beneficial way. However, because this argument is not proven, we have not included these 645 jobs in the totals in Table 3.1. Regional Produce and Local Marketing The competitiveness of the regional agricultural sector can be enhanced and value added through the development of local marketing initiatives and the promotion of regional produce. However, there is not necessarily any connection between these activities and the environmental impact of the agricultural methods used to produce the goods which are marketed. The regional speciality food group, North West Fine Foods, promotes and markets speciality food and drink in order to increase the sales of regional products, but most products are not marketed on any environmental credentials. However, there are some examples of regional products where the environmental impacts of the production methods are an important part of their marketing message. The following case studies are used as examples of these products. In addition, North West Fine Foods is involved in a number of initiatives to promote good quality food locally, which can bring environmental benefits through reduction of "food miles" (the distances through which food is transported), and indirectly through supporting local agriculture, and through links with tourism initiatives such as the Cheshire Fine Food Trail (personal communication, North West Fine Foods). Figure 3.3 Case Study - North West Fine Foods The regional speciality food group, North West Fine Foods, promotes and markets speciality food and drink in order to increase the sales of regional products in the region and beyond. The group came into existence in 1994, and now has a membership of 140, including 75 producer members with products ranging from dairy, meat, bakery and confectionery, preserves, condiments and honey, fish, beverages and fresh produce. It has been involved in a number of initiatives to promote good quality food produced locally, thus supporting rural businesses, including trade shows, seminars, national and international promotions and other events, newsletters and access to databases. Expertise is provided in a range of areas, including food safety, internet marketing and a range of others. Most members typically have under 10 employees, and a large number are 1 or 2 person businesses, however there are large members and NWFF estimates that members collectively employ over 1500 people and have a turnover of approximately £75 million. The organisation itself employs two full-time staff. Source: Personal communication, North West Fine Foods. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 40 Figure 3.4 Case Study - The Village Bakery Melmerby The Village Bakery was established in 1976. The business has grown significantly in the last five years with the increasing consumer interest in organic food, and today the bakery employs 30 staff, with a turnover of approximately £1.5 million. The environmental and organic aspects are central to their marketing strategy. In addition, the products are baked in traditional wood-fired ovens as wood is a renewable fuel, is efficient, cheap and does not contribute to the greenhouse effect. Products are delivered locally, nationally and to some of the big retailers. Most of the produce is made at Melmerby, including the cakes, however bread and savouries are now being produced at the Bells of Lavens, a regional bakery who have taken over some of the production. This was the result of planning permission for an expansion to the Melmerby bakery being declined. Therefore the Bells of Lavens have now expanded their organic range, and are themselves installing wood-fired ovens. Source: Personal communication, The Village Bakery, Melmerby Figure 3.5 Case Study - Westmorland Damsons Damson orchards are an important feature of the southern Lake District, particularly the Lyth and Winster Valleys, typically occurring in small plots on farms, or as single trees in hedges and walls. In April, the blossom is a well- known feature of the landscape, and at one time attracted large numbers of tourists from towns and cities in the North West. However, since the middle of the 20th century the orchards have been in decline and now 10 percent of the former number of trees remain. The Westmorland Damson Association was formed in 1996 with the objective of restoring the damson orchards to their former glory, principally by increasing the profitability of the crop and through publicity and promotion work. The aim is to secure a market with major jam manufacturers, which requires an increase in the crop to a level where a minimum quantity could be guaranteed, however poor weather has affected the blossom in recent years so that only a quarter of the required crop was obtained. In addition to small grants given by the Association to growers, funds are available under MAFF"s Orchard Stewardship Scheme to restore orchards for capital and management work. The Association is also considering the possibility of providing shared processing facilities to lower production costs, and may apply for support under an appropriate UK or EU scheme, for example LEADER. The Association has no permanent staff, and relies on volunteer support. Source: Personal communication, Westmorland Damson Association Other local marketing initiatives which can be beneficial in promoting regional produce include farmers" markets and organic box schemes, as shown in the following figures. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 41 Figure 3.6 Case Study - Farmers Markets Herdwicks, Swaledales and Rough Fell are local breeds of sheep which are adapted to the harsh conditions on the Cumbrian Fells. They mature slowly out on the fell, eating natural foodstuffs and developing a taste and texture that gives the meat a high quality, yet the farms which breed them are badly hit by the farming crisis. However, a farmers market has been set up in Kendal where farmers can sell lamb from local breeds direct to the customer. Such markets have proved very popular with customers, and farmers using them are reportedly overwhelmed by the demand. The markets are popular for a number of reasons: not only are prices lower than in supermarkets, but customers are also attracted by the difference in quality and flavour of the lamb and by the opportunity to ask the farmer about its provenance. Customers also like to know that they are supporting farmers directly. The quality of the local environment is an important factor in marketing the lamb, for example the type of grazing and terrain which produce the difference in flavour and quality which the customer wants. Profit margins for farmers have been doubled, and studies overseas indicate that shop turnover in towns on market days may be increased by 13 percent. The initiative is supported by the Fells and Dales LEADER Programme, which has funded a co-operative mobile processing unit for farmers to use prepare the lamb. The success of the markets helps to keep the local breeds on the Fells, and can also have other benefits such as reduced processing and packaging, reduced food miles, high quality and freshness of produce, strengthening local character, encouraging social interaction and links between urban and rural communities, revitalising town centres and offering an alternative to out-of-town shopping. Source: BBC Radio 4 Figure 3.7 Case Study - Organic Box Schemes These are an increasingly popular form of marketing for organic produce. The Soil Association estimates (1998) that 30 percent of organic growers are involved in a scheme for selling direct from farms. Although the aim is to produce and consume most products locally, in reality this is not always achieved. Windmill Organic Wholefoods runs a box scheme operating in the North West Region. Started nine years ago as a "green shop" selling a small organic range, natural whole foods, environmentally friendly cleaning products and fair trade gifts, over the last 4 years they have concentrated more on their organic range, 70 percent of their produce now being organic (a range of jams, beans, pulses, fruit and vegetables). They obtain their produce from Organic 2000, an exclusive scheme providing organic produce to shops for distribution. Less than half the produce is estimated as being grown locally, with the other half coming from the Organic Marketing Company, OMC, based in Hereford. OMC source the majority of their supplies from Europe, due to lack of availability and poor quality in the UK. For example, this year"s spring greens have not been of a good enough quality, or the supermarkets have taken the cream of the crop and the remaining crop is not of a high enough standard. Windmill deliver 30 vegetable bags a week to their local customers. Although there has been a 20 percent increase in sales over the last 5 years, they do not expect further growth with the increasing interest in organic foods: with the supermarkets starting their own ranges of organic foods, supermarket shoppers have not turned to the smaller independent shops. Source: Personal communication, Windmill Organic Wholefoods 3.2 FISHERIES 3.2.1 Freshwater Fisheries The North West enjoys excellent freshwater fisheries resources ranging from top class salmon fishing on the Rivers Lune, Eden and Derwent to good quality stillwater coarse fishing in Cheshire and Lancashire. These are reliant on freshwater quality and to a large extent on natural stocks. All of the region"s rivers have been damaged to some extent by urbanisation, industrialisation, rural land use or river engineering, although water quality is generally improving as a result of work undertaken by a range of bodies, including the Environment Agency, local industry, farming, water companies, ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 42 voluntary organisations and local communities. For example, coarse fish have returned to many parts of the Mersey after a century"s absence (MAFF, 2000a). A recent report reviewing salmon and freshwater fisheries in England and Wales (MAFF, 2000b) concluded that expenditure by visiting anglers helps to sustain employment in parts of the country where the economy is most fragile, jobs difficult to create, and wages are generally well below average. Agriculture is often the only major source of employment and many farmers are anxious to diversify their activities and develop alternative sources of income. Fisheries can provide opportunities for this, either by providing accommodation and meals to visiting anglers and their families, or by developing angling opportunities where the waters are suitable. So long as the resource is managed and fished in a sustainable way, there is a good economic output from fisheries. Environment Agency statistics (Environment Agency, 1998) for the 1998 season reveal that approximately 130 000 rod licences are sold annually in the region, generating around £1.6 million. In addition, 191 licences were issued for commercial salmon and sea trout nets and 73 eel nets and traps were licensed, generating a further £30 000 in income for the management and protection of freshwater fisheries. Revenue from the licences is spent on habitat improvement, enforcing fishery laws and bylaws, surveys of fish stocks, rescuing fish from pollution incidents, fisheries research and restocking. In 1995, this amounted to approximately £4 million (Environment Agency, undated a) , two thirds of which was from grant-in-aid and the rest from revenue from fishing licences. The Environment Agency also employs 70 full-time fisheries staff in the region (Environment Agency, undated b); this figure is accounted for in Section 2. Work done in 1991 (Radford et al, subsequently updated to 1996 values, see Environment Agency, 1996) indicates an economic capital value of £7000 per rod-caught salmon in the North West Region, including expenditure on fishing, accommodation, food and fuel. Multiplying this by the number of salmon rod catches in the region in the 1998 season gives a value of £44.5 million. The Rural Development Plan for the North West reports the findings of a recent assessment of the value of the River Lune Rod and Net Fishery, which estimates that the fishery supports a conservative estimate of 15 jobs. The Plan extrapolates this to the whole region based on catch to give a total of 75 jobs supported by the region"s salmon rivers (MAFF, 2000a). Coarse and trout fisheries also make a contribution to local economies through expenditure on recreation, and create employment opportunities. The Lake District in particular may act as a tourist attraction in this respect. However, there is little information on the economic value of coarse and trout fisheries. The recent Salmon and Freshwater Fisheries Review reported that, on average, coarse anglers spent £1066 per year on their fishing (on tackle, permits and the cost of trips). Environment Agency data estimate that there are approximately 57 000 angling trips per year to a river or canal in the North ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 43 West (Environment Agency, 1997). Based on data from the 1994 National Angling Survey, which estimates that 70 percent of anglers fish for coarse fish and make an average of 43.5 trips per year, we estimate that approximately £1 million is spent annually on coarse angling in the North West. Although there is no data available on numbers of jobs generated or sustained by coarse angling, anecdotal information suggests that in this respect coarse angling can be locally very important. Jobs are supported in the fishing tackle and bait industries, in commercial recreational stillwater fisheries, and in companies dealing in and supplying fish stocks. Employment is also indirectly supported in establishments providing accommodation and food. 3.2.2 Inshore Fisheries The in-shore fisheries of the North West are, compared to the salmonid fisheries, relatively small. The largest of the industries is the mussel fishery, but other important species are shrimp and cockles. For example, Morecambe Bay Shrimps are a well-known regional speciality, although employment numbers in the industry are small, perhaps a dozen or so people. However, there is a lack of robust data on catch. Equally, there is a lack of consensus on the links between environmental quality and the productivity of these fisheries (personal communication, North Western and North Wales Sea Fisheries Committee). However, their sustainable management is an important factor in both the short- and long-term viability, as shown in the example on cockling below. Figure 3.8 Case Study - The North West Cockle Fishery The estuaries of north west England are internationally-important for the number and diversity of shorebirds they attract during migration and wintering periods. In the past, conflicts have arisen between shell fisheries and bird conservation interests, in particular over oystercatchers, a protected species which competes directly with humans for cockles. Over-fishing, especially using modern mechanised techniques, is a factor in both the suitability of an estuary for oystercatchers, and in the sustainability of the industry. On the Burry inlet in Wales, the cockle fishery is carefully managed. Here local processing increases the value of the catch by five times the value at first sale: from £0.5 million to £2.5 million in 1993. In contrast, the fishery in north west England is not subject to licensing and catch limits, and suffers boom and bust cycles. Typically, the catch, usually by itinerant workers recruited from outside the region, is transported unprocessed by the lorry-load to plants in the Netherlands and elsewhere. The RSPB and Reading University have developed a simulation model which describes the depletion of cockle biomass over the winter due to harvesting by humans, feeding oystercatchers, and other factors. The simulation model is intended to enable fisheries managers to establish levels of cockling which will protect future spawning stocks along with internationally-important oystercatcher populations. It can also be used to model worst-case scenarios and ensure stocks are buffered against over exploitation under extreme conditions. Source: Personal communication, RSPB 3.3 COUNTRYSIDE SPORTS A number of countryside sports are directly dependent on the quality of the environment for the availability of game and the existence of suitable land ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 44 cover, and in addition provide employment in rural areas and generate income. For example, the North West has a significant proportion of England"s heather upland, and large areas of the region, notably the Pennines and the Forest of Bowland, are managed for their sporting potential, mainly grouse shooting. This has helped to safeguard this rare habitat. Shooting can provide employment for keepers and beaters, and where the shooting is let it can also boost income for hotels and other local services. Other sports which are dependent on the quality of the environment (personal communication, BASC) include: hare coursing; hare shooting; and falconry. However, while data is available to show the economic and employment impacts of countryside sports at a national level, no regional data exist. The following data shows the national significance of countryside sports. Table 3.9 Total Expenditure Generated by Countryside Sports in Great Britain Sport Direct Expenditure Indirect Expenditure Total Expenditure £m £m £m Shotgun shooting 370 231 601 Stalking 32 20 52 Falconry 10 6 16 Total 412 257 669 Source: Cobham Resource Consultants, 1997 Expenditure data on hunting for hares is not available separately from fox hunting data. Total expenditure on hunting (excluding falconry) is estimated at £286m, which is made up of £176m of direct expenditure and £110m of indirect expenditure. In terms of employment numbers nationally, it is estimated (Cobham Resource Consultants, 1997) that shooting and stalking directly provide 26,300 jobs and in addition generate 13,415 jobs indirectly. (1) In the absence of any precise regional data, we have apportioned the national data on the basis that eight percent of members of the British Association of Shooting and Conservation are in the North West region (personal communication, BASC). This gives an estimated regional expenditure of £52 million on shotgun shooting and stalking. On the same basis, it is estimated that shooting and stalking in the North West provide 3177 jobs, 2104 directly and 1073 indirectly. We have not attempted to derive figures for falconry and hare coursing, as employment data is not available separately from other forms of hunting, nor are numbers of club members or participants on which to make regional estimates. (1) Data on jobs in falconry and hare hunting are not available disaggregated from fox hunting. Hunting as a whole is estimated to provide 15,200 direct jobs and 7,750 indirect jobs (Cobham Resource Consultants, 1997). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 45 3.4 FORESTRY The North West has one of the lowest levels of tree cover in England, at around six percent. This compares with the average for England of 7.6 percent (1998 figures, source: Forestry Industry Council). Nonetheless, ancient woodlands are well represented (being an estimated 26 percent of the Region"s total), as are ancient semi-natural woodlands (around 18 percent). Table 3.10 gives an indication of the woodland type by County; it is clear that there is significant variation within the region, with Cumbria (for example) having more than three times as much woodland cover (expressed as a proportion of land area) as Greater Manchester. Table 3.10 Woodland type by county (hectares), North West Region Type Cumbria Lancashire Merseyside Greater Cheshire Total Manchester Broadleaved 14 820 7214 ,685 2,270 6782 32 771 as % of total 27 59 82 80 73 40 Conifers 35 442 3872 345 223 2321 42 203 as % of total 64 32 17 8 25 52 Other 5304 1,038 21 343 203 6909 as % of total 10 9 1 13 2 6 Total 55 566 12 124 2051 2836 9306 81 883 Hectares of 107.8 7.2 1.2 1.1 8.8 11.4 Woodland per 1000 population Source: MAFF (2000a). Trees and forests have significant benefits both in rural and urban areas. Apart from the more obvious commercial impacts such as being the source of timber products, food and chemical extracts (such benefits do not fall within the scope of this report), the value of the benefits produced is hard to quantify. In urban environments, the following quantifiable (but not monetised) benefits have been claimed: trees can help save on energy costs, through slowing down wind speed significantly and reducing air turbulence around buildings; trees if present at sufficient density can reduce noise levels by as much as 6 - 8 decibels for every 30 metres width of woodland belt; and several studies, principally in North America, have shown that average house prices are between 5 and 18 percent higher where property is associated with mature trees. 1 Other impacts, which are not quantifiable, include: (1) In North West England, new housing developments in Runcorn have been marketed as being "situated within the Mersey Forest", giving added credibility to evidence suggesting that housing is more desirable when located close to trees. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 46 stabilising the soil through root action, and reducing soil erosion; maintaining or increasing biodiversity, and providing a natural habitat with shelter, screening, seclusion and reduced disturbance; improving the emotional and physical well-being of people, through providing a pleasant environment to look at and walk or exercise within; and improving and complementing the built environment by making it softer, greener and more attractive, providing better facilities for residents and improving the attractiveness of an area for tourism and inward investment. Forest Enterprise manages some 28 percent of the Region"s woodlands, from three district offices in Kielder (covering NE Cumbria), Lakes (covering Lancashire and the rest of Cumbria) and Midlands (covering Cheshire, Greater Manchester and Merseyside). Their estate includes some of the finest woodland landscapes and Forest Parks at Delamere, Grizedale and Whinlatter which are good examples of sustainable woodland management. In addition to these, the Region benefits from the presence of the two largest of England"s 12 community forests: the Red Rose Forest and the Mersey Forest. Together these community forest areas cover over 168 000 hectares of land in Greater Manchester, Merseyside and North Cheshire, and involve a partnership of around 50 public, private and voluntary organisations. The Community Forests have successfully pioneered an integrated approach to developing the environment in and around towns. The objectives are not limited to growing trees - though hectares of trees planted is an important indicator - but include also the improvement of local environments, creation of improved habitats through the provision of meadows and ponds, image enhancement, provision of focus for local people, regeneration of neglected or run down land and communities, encouragement of jobs, enterprise and training and improvement of the local timber supply. The development of the Community Forests date from 1994 when a 40 year vision (35 years for the Mersey Forest) was begun to realise social, environmental and economic improvements, establishing a greener, more attractive and accessible environment. The Community Forest initiatives have already achieved some substantial benefits nationwide, with 6 220 hectares planted and over 783 kilometres of hedgerows planted. In the North West, the Red Rose community forest has exceeded many of its targets, planting nearly 200 hectares of woodland (50 hectares more than targeted) and 32km of hedgerows (over six times the target). In economic terms progress at the Community Forests, like the benefits of the forest sector generally, is much harder to measure. There is anecdotal evidence suggesting that the improvements in image are leading to inward investments being made but the empirical link between the forests and the ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 47 economy is yet to be made. This may be about to change as a new study in this issue is shortly to be commissioned to examine the economic impact of the Red Rose Forest. On a smaller scale there is clear evidence that forests are assisting in the promotion of jobs and inward investment in the area. Red Rose Forest"s Green Business Development Scheme, which was part funded by the European Regional Development Fund, offered practical help to local businesses with products or services based on the woodland industry, and created over 50 new, additional, jobs. Meanwhile the Mersey Forest has succeeded in attracting several new businesses to the area which would not have been established were it not for the forest; forty six jobs have been directly created. Some 200 staff are employed by Forestry Enterprise (an Agency of the Forestry Commission) in the region (though it is not clear what proportion is involved in "core" activities). A large proportion of woodland management in the region is in private hands and figures relating to expenditure and employment for this sector are presently the subject of an enquiry being carried out by the Forestry Commission. However, Table 3.11 indicates expenditure on the Woodland Grant Scheme in the North West. The Table shows that a total of just under £1.4 million was distributed for expenditure on woodland creation or management in 1997. Table 3.11 Woodland Grant Scheme Expenditure, North West England (1997) County Woodland Creation (£) Woodland Management (£) Cumbria 139692 237 183 Lancashire 179 855 117 363 Greater Manchester 234 175 41 998 Merseyside 139 690 19 171 Cheshire 163 210 12 ,900 Regional total 856 622 542 615 Source: Table 55, Forests and Woodland Data 1997, North West England The Forestry Commission"s broad figures for the North West estimate that turnover of the region"s main forestry industry operators amounts to £218 million. Much of this is for operations including commercial timber processing, sawmilling and so forth, therefore the proportion of this business which is aimed at improving the environment (or which depends on a quality environment) is expected to be reasonably low and would be unlikely to exceed £50 million. This would be broadly consistent with data from the Office of National Statistics, which found that Agriculture, Hunting, Forestry and Fishing in the North West amounted to £575 million in 1996 (unfortunately no regional breakdown is available for a narrower standard industrial classification). A broader definition would result in larger employment figures - for example, the Forestry Commission"s submission to the NWDA"s Regional Strategy ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 48 (1999) suggested a total of 2800 jobs dependent on forestry and related industries. Forestry boasts important links with the tourism and leisure sector, which contributes to its overall economic impact. The Oasis holiday woodland village in Penrith (a forestry based attraction dependent on a high quality environment) has links with tourism, and also with the revitalisation of the primary sector. Its private turnover amounts to some £40 million per annum. The Woodland Day Visits Survey carried out by Social and Community Planning Research found that in 1998 there were over 31 million visits to woodlands and forests in the North West (SCPR, undated), generating economic and social benefits for the visitors, while Forest Enterprise"s woodlands in the North West alone accommodate some 1 million day visitors per annum (MAFF, 2000a). As the National Urban Forestry Unit (1998) points out, "trees are cheap, but the benefits they bring are difficult to measure and even harder to quantify in monetary terms". Undertaking further research into the size and nature of the forestry sector and the benefits it confers is an issue which is receiving increasing interest and several initiatives addressing these themes are currently underway. The Forestry Commission"s "Health and Vitality of Forestry Industry Businesses' study is soon to complete its draft stage and will provide more evidence of the overall turnover of the North West forestry sector. On the tourism side a major study by Geoff Broom Associates and the Macaulay Land Use Research Institute is in its first phase and is focusing on the role of forests in tourism. The completion of these should help provide more core information about the sector and enable us to better understand its structure and impacts in the North West. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 49 Figure 3.9 Case Study - Cumbria Broadleaves Cumbria Broadleaves is a partnership of Cumbria County Council, the Forestry Commission, Lake District National Park, East Cumbria Countryside Project, South Lakeland District Council, the Countryside Agency and English Nature. Established in 1991, the group aims to improve the condition of neglected broad-leaved woods in Cumbria through better management. To achieve this goal, Cumbria Broadleaves encourages planting of new broadleaf woods and trees whilst attempting to improve the health and age structure of the broadleaved woodlands to ensure their long term future, promotes training for woodland contractors and provides specialist advice to those operating broadleaved woodland and timber businesses. Amongst the present roles the group is fulfilling are: the provision of assistance to landowners in managing and planting broadleaved woodland; advice can be provided on grants, species selection, contractor supervision and timber marketing; running the Woodland Skills Training Scheme, facilitated by short courses on themes such as chainsaw use and maintenance, charcoal making, alternative woodland produce, coppicing and farm woodland tourism; promoting the Value of Shelter Woods on Farms by providing audits of shelter on farms and helping to identify where shelter woods can be planted and how better to manage existing woodlands; and participation in the pan-European Leonardo da Vinci placement programme which provides European wide experience for Cumbrian trainers. Source: Personal communication, Cumbria Broadleaves. Figure 3.10 Case Study - Transformation of Unused Landfill Sites to Forestry A consortium involving the Mersey and Red Rose Forests, English Partnerships and the Forestry Commission have transformed old closed landfill sites into attractive woodland areas in the North West. The Mersey and Red Rose Forest areas have a legacy of landfill sites dating back to before 1970, with waste sometimes to a depth of 50 feet. The redundant sites had been "reclaimed" to varying standards and were often left neglected and underused. In an attempt to turn an environmental "bad" into an environmental "good", the consortium undertook a two year project to identify which tree species cope best with the conditions on old landfill areas and to investigate the suitability of 14 sites, totalling 544 acres (220ha), for community woodland. The study showed that all the sites studied were suitable for planting, and following consultation with local communities plans are now going ahead to transform several into areas of woodland, grassland, ponds and wetland with managed and enhanced access for local people. Most designs comprise 45 - 50 percent woodland and 40 percent grassland and other open space, giving local people new areas for recreation and providing habitats for a range of wildlife. The project cost £340,000 and was funded by English Partnerships and the Forestry Commission. The results of the study suggest that a great proportion of closed landfill sites across Greater Manchester, Merseyside and North Cheshire have the potential to be transformed into new community woodlands. Source: Mersey Forest et al (1999). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 50 ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 51 4 CAPITALISING ON A HIGH QUALITY ENVIRONMENT This section addresses the impact of the environment on the three issues on tourism, investment, and quality of life. The environmental impact on the tourism sector is estimated in quantified terms, with investment and quality of life issues generally addressed qualitatively. 4.1 TOURISM Twenty nine and a half percent of the North West region"s landscape has some form of quality designation (RSPB, personal communication). This section analyses the extent to which the environment contributes to income and employment in the North West"s tourism sector and provides a summary of the employment effects of environment related tourism, a review of visitor numbers and a presentation of case studies. 4.1.1 Summary of the Environment's Contribution to the NW's Tourism Sector Contribution to Jobs We estimate that a minimum 48,000 jobs in the North West"s tourism sector are directly dependent on a high quality environment. The assumptions made in estimating this figure are described in the following paragraphs. There were 135 million visits to identifiable tourism attractions in the North West in 1998 (this includes visitors from outside and inside the region). (Regional Tourism Facts NW, October 1999; and Cumbria Tourist Board 1999). Approximately 33 million of these visits were to environmental attractions in the North West, ie. 24 percent of total visits related to environmental attractions (Regional Tourism Facts NW, October 1999; and Cumbria Tourist Board 1999). Neither the total figure nor the figure showing visits to individual sites includes visits to non specific sites such as canals, forests, woodland, coastal attractions or "the countryside". Data are available for certain of these categories (such as for forestry, coastal visits and canals) but robust data showing total visits of all types for comparative purposes is not available. The ultimate estimate of 48,000 jobs depending on environmental tourism is therefore likely to be underestimated, although it does include the more labour intensive site-specific tourist locations. In terms of direct employment, the tourism sector generates 200 000 direct jobs in the North West, which represents approximately six percent of the region"s employment (ONS 1999a). Other sources have estimated a futher 42000 (Sustainability North West website) to 100 000 (MAFF 2000a) indirect jobs resulting from tourism activities in the North West. These are indirect jobs which do not necessarily relate to the environment: we have therefore not considered these in our final estimate of jobs. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 52 Contribution to GDP The North West Tourist Board estimates that the tourism industry in the North West generated expenditure of some £4.38 billion in 1998 (NWTB 1999). In GDP terms this would be equivalent to some £2.365 billion (using a value added to turnover ratio of 0.54 as stated in ONS (1997)). This figure is compatible with SNW (1998) which suggest that tourism is "worth more than £2 billion to the region each year". Assuming that 24 percent of the total is attributable to the environment, a GDP figure of £567 million can be derived as a reasonable estimate of the contribution to the region"s GDP. Discarding the GDP measure and focusing purely on income and expenditure North West environmentally driven tourism accounts for expenditure of some £1.05 billion (£4.38 billion x 24 percent). 4.1.2 Tourism and a High Quality Environment A high quality environment is clearly important for sustaining many tourism activities and employment in rural and urban areas. In rural areas, for example the Lake District, tourism is a major service industry which helps to diversify rural economies. In urban areas, the quality of the physical environment can have very positive effects on tourism. For example, the Albert Dock in Liverpool, which has undergone an award- winning redevelopment, now attracts an estimated 4.9 million visitors (English Tourism Council Research Services, 1998). Perceptions of Tourism in the North West Data provided to us by the North West Tourist Board as part of a benchmarking survey undertaken in 1999 by Research Services for the North West indicate that in general, the North West is perceived in a fairly positive light by survey respondents. Based on reports prepared for Blackburn, Blackpool, Bolton, Chester, Liverpool, Southport and Stockport, the following findings can be presented. The cost and ease of finding suitable accommodation in the region was found to be better than average, with public transport also rated higher than average on both frequency and quality. The latter is particularly encouraging for those working to encourage more sustainable approaches to tourism. The range and quality of places to visit in the North West were both lower than the national average, but on quality of service and value for money at attractions, responses suggested that the North West performs better on average than other regions. The region also does well on dining out, with the range of establishments, quality of food and quality of establishment all reported as higher than average. Those interviewed felt that the region was not overcrowded, though cleanliness and "ambience" was found to be worse than other regions. Despite this, people felt that they would be likely to recommend the area to others. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 53 Whatever the perceptions of the area, it is clear that each year tourism makes a valuable contribution to the regional economy. In the following paragraphs a review of some of the region"s key attractions is presented. 4.1.3 Visitor Numbers Relating to the Environment Table 4.1 overleaf summarises annual visitor numbers to tourist attractions in the North West which are clearly linked to the quality of the environment. This is based on data covering the whole of the region - provided by the North West Tourist Board (NWTB) (which covers Cheshire, Greater Manchester, Lancashire and Merseyside) and the Cumbria Tourist Board. The data indicates that "environmental" tourism locations attracted some 33 million visitors in 1998, representing 24 percent of all day visits to the region. However, as noted elsewhere, this figure is likely to be a significant underestimate since data are not available on many tourist and recreational visits to the North West which do not go to the "large", identifiable sites covered in Table 4.1. For example: day trips on canal boats; organised walking, cycling and horse-riding activities and those using dedicated paths, trails and bridleways not within country parks; numerous woodlands and community forests; and trips to the region to enjoy the landscape, have a pub lunch, a walk and not visit any dedicated attractions. Largely excluded from the table but clearly an important generator of tourist trips are trips to forests and woodlands: in Section 3 it was shown that in the North West some 31 million trips were made in 1998 to forests and woodlands in the North West (Social and Community Planning Research). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 54 Table 4.1 Visits to Environmental Attractions in the North West, 1998 Attraction No.visitors per year (millions) Lake District National Park 14 Country Parks (and associated visitor centres) 5.47 Urban Parks 1.05 Forest Enterprise 1.0 Gardens 0.7 Historic Houses 2.9 Heritage Centres * 0.23 Nature Reserves * 0.36 Zoos/Aquariums/Safari Parks/Farms * 1 2.01 "Environmental" Education Centres including Natural History Museums 0.27 Albert Dock 4.9 Total visitors to 'environmental' attractions 33 Source: Environment Agency (1999), Cumbria Tourist Board (1999). * likely to underestimate true figure. Note 1: Although arguably not strictly "environmental", the majority of these attractions both provide environmental education and undertake conservation projects. For example, Blackpool"s Sea Life Centre and Ellesmere Port"s Blue Planet Aquarium both have an educational role, many farm centres support rare breeds and Chester Zoo is heavily involved in breeding work and conservation programmes. Chester Zoo attracts more than 1 million visitors each year and generates an annual turnover of ~£10 million. According to data provided by Chester Zoo, it is estimated that the North West and Cumbrian wildlife sector generates a turnover of £25 million (Chester Zoo accounts for approximately 40 percent of this). Applying an employment multiplier of £35,000 (as used by Cooper and Rayment 2000) it seems reasonable to suggest that this turnover would generate around 714 FTE jobs. Also a key contributor to North West day trips are canals which attract large numbers of visitors on day leisure trips. Data from British Waterways indicates that some 11 million visit canals in the North West (British Waterways, personal communication). The Country Parks category is a big trip generator which includes four out of the top ten non-charging admissions in the North West (excluding Cumbria). One park alone, the Croxteth Country Park in Liverpool, receives an estimated 700 000 visitors per year. The Table also indicates that historic houses and heritage centres are a popular attraction in the North West. These prove particularly popular with overseas visitors who comprised 26 percent of visitors to historic houses in the North West in 1998 (19 percent of these overseas visitors were American (English Tourism Council Research Services, 1999). The North West region is home to many notable gardens, more than one in eight of all garden visits in the UK occur within the county of Cheshire, the University of Liverpool"s Botanic Gardens on its own attracted an estimated 103 000 visitors in 1998, and Walton Hall Gardens near Warrington attracted an estimated 400 000. The North West contains many wildlife areas of national importance, particularly for migratory birds - for example, Leighton Moss (see case study below), an RSPB reserve located near Morecambe Bay in Lancashire which is ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 55 an important habitat for numerous bird species including the rare bittern. In addition to its wildlife value, the reserve attracts over 90 000 visitors annually. A further example, Martin Mere, Lancashire, is provided below. Wildlife tourism to nature reserves and conservation areas can help to encourage visitors at times outside the peak summer season, depending on migration and breeding seasons, thus helping to reduce the environmental impacts at peak season and helping to spread economic benefits over the year. Figure 4.1 Case Study - Leighton Moss Nature Reserve The RSPB reserve at Leighton Moss is located in Arnside Silverdale, Lancashire, which is an area of outstanding natural beauty with a good balance of wildlife habitats and farmland. The RSPB reserve covers 110 hectares and employs 20 staff, assisted by volunteers. Further jobs are supported by visitors spending money locally and by the reserve"s expenditure on contractors, goods, services and food for the reserve"s visitor refreshment facilities. Over 90 000 people visit each year, including 4 000 schoolchildren on educational programmes. A 1999 visitor survey found that birds / wildlife were the main reasons for over 80 percent of visits. Daily expenditure in the local area totalled almost £15,000. It is estimated that the birds, wildlife and scenery of Leighton Moss and neighbouring sites attract annual visitor spending of £1.65 million per year into the local economy. Assuming an employment multiplier of £35,000 per FTE job, this total expenditure supports at least 47 FTE jobs in the local economy. It is expected that visitors to Leighton Moss will increase by 13.5 percent over the next five years as a result of RSPB investment in the nature reserve. (Cooper and Rayment, 2000) Figure 4.2 Case Study - Martin Mere Martin Mere is situated near Ormskirk in Lancashire. It is owned by the Wildlife and Wetlands Trust and covers 152 hectares. It is one of Britain"s most important wetland sites which is visited by thousands of migrating waterfowl and is home to 1,500 tame birds, many of which are endangered. The site includes a large collection of ducks, geese, swans and flamingos, outdoor duckery, 11 hides, purpose built visitor centre and an adventure playground. Martin Mere is very keen to promote education and organises a variety of special events and activities. The partnership between the Wildlife and Wetlands Trust and North West Water has led to the latter providing a visitors information board and an observation hide. Raised ponds have also been constructed by NWW to allow children and disabled people study pond life safely. The site is supported by 16 permanent staff, 16 keytime staff and over a hundred volunteers; 139,000 people visited the site in 1999 Source Martin Mere Website and personal communications 4.1.4 Tourism Employment Relating to the Environment in the NW Estimating the number of jobs in tourism is complex. Beside direct jobs for operators, tourism generates jobs in many economic sectors (eg. retailing, catering, manufacturing, transport). Methods for estimating tourism generated jobs rely on the use of multiplier ratios; it is estimated that £19 000 to £27 500 of visitor spending supports one local job (Surrey Research Group, 1993). ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 56 Tourism is an important source of employment in the whole of the North West Region, supporting over 10,000 individual tourism businesses and providing direct employment for more than 200,000 people, around six percent of the Region"s workforce (ONS, 1999a) compared to an average figure of seven percent for the UK as a whole (Department of National Heritage, 1995). If indirect employment is added, the jobs total rises to between 242,000 (source: SNW website) and 300,000 jobs (MAFF, 2000a). These estimates are supported by 1997 Rural Development Commission data which shows that tourism spending in rural areas of England amounts to more than £8 billion pounds annually and supports 350,000 rural jobs (Table 4.2). It places the North West fifth out of ten English regions in terms of rural tourism employment, after the Heart of England, South East, Southern and Yorkshire and Humberside. Table 4.2 Rural Employment Resulting from Tourism in the North West, 1997 Region Direct Jobs Indirect Jobs Induced Jobs Total Cumbria 13 560 1 660 760 15 980 North West Tourist 19 030 2 240 1 060 22 330 Board Region Whole of NW 32 590 3 900 1 820 38 310 England 29 9930 36 300 16 860 354 040 Note: Induced employment results from the spending in the economy of those incomes earned in the tourism sector and the production of goods and services they purchase. Source: RDC/Countryside Commission 1997, quoted in Brooke and Rayment (1999) Figure 4.3 Case Study - Pennine Trails The success of the long-distance walking trail, the Pennine Way, is to be expanded by a new Trans Pennine Trail, a Millennium project which brings together a network of footpaths, cycle-ways, bridle-ways and other recreational routes. The trial will extend from Southport, across Liverpool, Widnes, Warrington, Manchester and the Derbyshire High Peak district to Hornsea in the east. The Pennine Bridleway National Trail spanning 330km is being developed for horse riders, cyclists and walkers. The southern section extends from Derbyshire to North Yorkshire and should be completed by the end of 2002, whilst the remainder up to Kirkby Stephen in Cumbria is due to be finished a year later. It is estimated that users of the Pennine Bridleway will spend an average of £6 to £7 per day if they are day users and £15 to £35 per day for long distance users. In addition, a Pennine Cycleway 670km long has been proposed between Derby and Berwick-upon-Tweed as part of the National Cycle Network being developed by Sustrans. The proposed route runs mainly on existing minor roads and links with the Pennine Bridleway and other cycle networks. If the route becomes as successful as the popular C2C (Sea to Sea) cycle route it will attract significant numbers of cyclists. The C2C (see below) route runs across the British Isles from the Irish Sea across Cumbria and Northumberland to the North Sea, and was cycled by more than 10 000 people in 1997, resulting in visitor spending of approximately £1.1 million (£110 per person). Source: MAFF (2000a) ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 57 Figure 4.4 Case Study - Anderton Nature Park The Anderton Nature Park is located close to Northwich, Cheshire and is a 100 acre wildlife haven and recreation amenity which has been transformed from industrial wasteland adjacent to the Anderton Boat Lift. The land was reclaimed by Cheshire County Council and English Partnerships from multiple industrial usage. Prior to its present use, the land had been employed for salt production, as a lime bed and for the disposal of dredged material from the nearby inland waterway network (part of the land is bounded by the River Weaver and the Trent and Mersey canals). The site forms part of the Mersey Forest. Its attractions include Marshall"s Wood (site of the old lime bed which has been largely reclaimed by nature since the 1950s), a birch woodland and a designated area of biological interest which boasts wild strawberries as well as impressive displays of orchids in the summer. The ex-dredging dump is now an attractive site for migrant birds made the most of by visitors and local community groups alike. Meanwhile, the Anderton Boat Lift, soon to be renovated as part of a British Waterways led initiative, is an attraction in its own right. Current initiatives at the site include plans to provide more bird hide facilities (this initiative is led by a local community group) as well as development of a network of footpaths, wildflower pathways and interpretation boards, an initiative of Cheshire County Council"s. Source: Personal communication, Cheshire County Council Figure 4.5 Case Study - C2C Cycle Route Known as the "C2C" route, parts of the Whitehaven-Sunderland cycle route have now been open for five years. In its first year some 15,000 people were attracted to use the route. Since then, various businesses have established themselves close to the route and provide support services such as bicycle repairs, luggage carrying and accommodation, allowing the project to demonstrate that it could both safeguard and create new jobs. The route has featured on the television programme Wish You Were Here and provides an example for the Pennine Cycleway - a similar but more ambitious project which will run for around 450 miles between the Peak District and the Scottish Border near Berwick. The Pennine project is a partnership project, comprising over 20 organisations such as local authorities, metropolitan and county councils, the Kielder Partnership and local tourism groups. Source: Personal communication, Sustrans Figure 4.6 Case Study - The National Trust The National Trust has 255,000 members in the North West. In addition to visits made to properties by members, the Trust"s properties attract a large number of overseas visitors. In total, one and a half million people visited the Trust's admission charging properties last year, including 91 000 educational visits, and even more took advantage of free access to the Trust owned coastal and rural areas, spending approximately £5 million in the area. In addition to the jobs supported by this spending, the Trust directly employs 440 people in the North West. It also runs training programmes which assist people hoping to enter the conservation and heritage field. Source: ENWWEB (2000) 4.1.5 Improving the Environmental Performance of Tourism Activities As well as covering tourism activities which are dependent on a high quality environment, this study also covers activities in the tourism sector which seek to achieve environmental improvements - such as the "Greening Tourism Initiative" and "Green Globe" (discussed below). It is not possible to estimate the employment or economic benefits of these activities on the regional ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 58 economy, but the following information indicates the types of resultant benefits. Greening Tourism Initiative In Lancashire, a "Greening Businesses" project aimed at the tourism industry is being run by Lancashire County Council on behalf of a number of partners using funding received from the Government"s Single Regeneration Budget. This initiative provides free advice and assistance to Lancashire tourism operators on reducing their environmental impacts, improving the local environment and obtaining business benefits, for example through appropriate marketing. The project has established a Lancashire Tourism Environmental Resource Network and runs free tourism workshops. The workshops include talks by specialists (for example, an energy consultant specialising in hotels, from the Building Research Energy Conservation Support Unit) alongside local tourism operators who have experience of the issues covered, such as: Reducing energy and water usage and saving money; Providing a quality, caring image; Appealing to a new and growing market; Helping to conserve the local area and increase its attractiveness; Creating good local publicity; and Being a respected and valued partner of the local community and economy. In 1998 and 1999, eight workshops were held, 106 environmental reviews and 31 monitoring visits were successfully undertaken. A total of 188 tourism businesses benefited from the project. Based on the success of the initiative, funding was secured for its extension to 2001. The programme for 1999/2000 includes 76 new environmental reviews and 78 monitoring visits, and future ideas include an internet based marketing campaign and forming links with the Green Globe scheme (see details and case study below). The Green Globe (1) The Green Globe is an internationally recognised scheme to encourage, facilitate and recognise environmental management within the tourism industry. It is applicable to hotels, conference centres, guesthouses, youth hostels, air travel operators and other tourism companies, as well as areas (eg. Cumbria). Those working towards Green Globe certification must introduce environmental management systems that must be independently assessed within a year. The scheme not only results in cost savings from reduced resource use, but is also likely to be increasingly important for attracting "responsible" tourists, particularly from the German and Scandinavian markets, and for business (1) We are grateful to Kenny Boyd, Marketing Manchester and Peter Beck, Manchester Marriott Hotel and Country Club, for assisting in the compilation of this section. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 59 customers from environmentally aware companies following "green" procurement policies. Accredited establishments are promoted to individuals who have signed the Green Globe pledge to support sustainable tourism, are listed on the Green Globe internet site and are able to use the Green Globe symbol in their marketing material. Hotels in the North West have been at the forefront of the scheme in England. The first cluster of accommodation businesses in Europe to attain Green Globe certification are located in Manchester (Table 4.3), for which they received ERDF funding. In addition, a number of attractions in the region are working towards certification, and will become the first tourism businesses of their kind anywhere in the world to receive the Green Globe. The Green Globe initiative will be taken forward by "Green Manchester" (a project funded with EU Structural Funds) in the run up to the 2002 Commonwealth Games. Table 4.3 Table 4.3 North West Accommodation Businesses Which Have Achieved Green Globe Accrediation Business Date of Accreditation Marriott Hotel and Country Club, Manchester 27 April 1999 Boardmans, Bury, UK 27 April 1999 Castlefield Hotel, Manchester 1 June 1999 Jarvis International Hotel, Bolton 1 June 1999 Tourism businesses in the North West have found that the Green Globe scheme: provides progress towards the international environmental management standard, ISO14001; is low cost and practically based therefore facilitating implementation; is easy to market; is credible due to its requirement for independent certification. It offers a range of benefits to tourism businesses, such as major reductions in operating costs, enhanced PR, staff morale and risk reduction. The adaptation of the scheme to facilitate its use by smaller establishments such as Boardmans is being considered via a possible pilot project in the North West. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 60 Figure 4.7 Case Study - Green Globe Marriott Hotel and Country Club, Manchester The Manchester Marriott Hotel and Country Club has been seen as a benchmark for the Green Globe scheme in the UK. It was opened in late 1998, - built to a new design which incorporated environmental considerations. For example, a water reservoir with a capacity of 15 000 cubic litres was built alongside the golf course which is fed from rainwater in winter and overflow from the 7 man-made lakes. Other initiatives include encouraging wildlife via habitat provision, recycling and energy efficiency. The hotel has achieved considerable cost and resource savings such as 15 percent reductions in water use, electricity and gas. Its success has led another Marriott hotel in Manchester to apply the scheme, which is subsequently expecting to achieve in excess of 20% savings. The Green Globe scheme is now part of the hotel"s image, for example the globe logo is on their letterhead and they display their environmental policy statement in the hotel lobby. They have found that the environmental initiatives attract considerable attention from customers once they have arrived, and that customers appreciate the fact that hotel is acting in an environmentally "responsible" manner and using the surroundings to create a high quality and attractive environment. Source: Personal communication, Marketing Manchester and Marriott Hotels. Figure 4.8 Case Study - Sustainable Tourism Initiative In 1999, Manchester attracted 3.26 million trips, and in 1998, a tourism expenditure of over £417 million. A hotel sector group was established to take forward the Sustainable Tourism initiative (a European Regional Development Fund financed project which ran from 1997 - 1999) which aimed to develop the travel and tourism product, particularly in terms of environmental performance. A package of activities was established, including: establishment of a Green Business Forum in the hotel sector to encourage adoption of environmental management systems for SME"s; Green Globe independent environmental certification for accommodation businesses; a training course for operational managers in environmental auditing; city wide sustainability audits (landfill tax funded) with Groundwork; Green Guide published for urban tourism businesses; marketing materials produced in a more sustainable way. Source: personal communication, Marketing Manchester. 4.2 INVESTMENT 4.2.1 Strategic Investment In order to attract inward investment, a region needs to demonstrate that it can fulfil the needs of those proposing to start up or invest in a business in the area. Among the variables cited as important by inward investors are infrastructure, weather, the available labour pool, prevailing wages, quality of local universities, financial assistance, taxes and the usually ill defined "business climate". Other quality of life variables are also recognised as being of increasing importance, many of which come under the broad heading of "the environment". These include: ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 61 house prices; existence and/or location of green belt land close to the proposed development site; cost of living; quality of local education; "cultural" matters, such as theatres, restaurants, other entertainment and the nature of the "cosmopolitan" lifestyle on offer; and availability of sports facilities such as golf courses and leisure centres. The particular emphasis that investors place on "the environment", however defined, is not clear. Instead, evidence suggests that investors look to satisfy their demand for a suitable investment location by assessing a package of features such as those listed above. The image of the North West region has historically been poor, with some parts of the region especially badly affected. The Mersey Basin, the world"s first industrial region and once its greatest manufacturing area, has undergone profound economic restructuring and many areas within it now suffer from an image of dereliction, obsolescence and environmental degradation. Though the image may have been deserved at one time, stereotypical views still remain with many areas having reputations as "grim and dirty" especially amongst those who rarely or never visit. Significant efforts have been made to improve the region"s image and its overall environmental quality. One aspect of the property-led approach to urban regeneration has been the phenomenon of "flagship developments" noted by Handley, Wood et al (1998). These are designed to break into the cycle of inner city decline by bringing other development in their wake: In Liverpool and Manchester the best known examples are Albert Dock and Castlefield. The key to urban regeneration appears not just to concentrate on individual sites but to focus instead on sites or corridors which might reasonably be expected to act as a catalyst for improvements in the whole area. In recent years a start has been made to exploit the network of canals within the Mersey Basin for their development potential with a "corridor development" approach being employed to mix individual development projects and site clearances to provide economic as well as environmental and recreational benefits. An example of this kind of approach is shown in the Leeds - Liverpool Canal Corridor Project, an initiative between a number of local authorities along the route, Lancashire County Council and British Waterways. There are signs that the region"s image is beginning to change, though the North West"s image remains better overseas than in other parts of the UK (especially London). In cost terms, KPMG"s international comparison of 64 cities included Manchester from the North West region and compared that ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 62 city"s performance against other global cities in traditional manufacturing (which included metal fabrication and plastic products), food processing, life sciences (including pharmaceuticals, a tradition strength in the North West) and advanced manufacturing (covering electronics and telecommunications equipment). In traditional manufacturing, Manchester was rated 19th out of 46th for costs (including initial investment and operational costs), but second out of ten in Europe (behind Telford). For food processing, Manchester was found to be the cheapest city of all 21 examined, a ranking driven by low labour, transportation and corporation tax costs. For life sciences Manchester was 12th behind 10 Canadian cities and San Juan, Puerto Rico, while for advanced manufacturing Manchester, as the North West representative, outperformed all the US cities in cost terms, finishing 18th out of 44. In future, Manchester is set to take advantage of such favourable cost figures by focusing on clean, high technology industries and services, potentially including e-commerce, leisure and tourism. Manchester Investment and Development Agency Service"s (known as MIDAS) target sectors reflect these aspirations and include food and drink, information technology, communications and call centres. Alternative areas of development include starter companies, which begin small but can have a significant impact via the multiplier effect as staff spend their earnings in the local economy. There are several sites, including one at Manchester University, where the growth of small businesses is being fostered. Quantification The North West"s record in attracting inward investment is monitored by the North West Regional Development Agency. In 1997/98, it is estimated that 11 939 jobs were attracted to the area, through 66 investment projects across the Region. The following year, 1998/99, some 12 372 jobs were created in the region, an increase of just less than four percent. Coincidentally, investment was split over the same number of projects: 66. We understand that no figures showing the contribution these jobs made to the regional GDP are available. An estimate of the regional GDP associated with these jobs can nonetheless be made. According to ONS (1999b), total regional GDP in 1997 was £66.7 billion, with a total labour force of 3.2 million. This implies that GDP of £20 778 supports one job (as a guide, HM Treasury suggest that some 60 percent of this would be paid to the employee in salary, with the rest making up dividends, profits and capital). The contribution to regional annual GDP made by the 12 372 jobs introduced in 1998/99 can therefore be estimated at approximately £275 million. At this stage, we have not discovered any methodologies (or indeed research) which seek to identify the specific impact of the environment on the decision to invest. It is therefore not possible to calculate the proportion of the total £275 million which would be attributable to a "high quality environment". ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 63 Anecdotal evidence from INWARD (the inward investment agency attached to the NWDA) and from the Cumbria Inward Investment Agency suggests that the principal reasons behind the investment decision are business based: quality of development sites and workforce, labour retention and transport. Where the key decision maker"s job location itself is not subject to change (perhaps in the case of a Chicago based corporate chief executive making a decision about where to site a new European factory) the impact that environmental quality will have on the decision may be negligible. Yet assuming the core business needs are satisfied, a good environment could tip the balance in favour of one location over the other. Figure 4.9 Case Study - Crewe Business Park Crewe Business Park in South Cheshire is a 67 acre business Park jointly owned by Cheshire County Council and Crewe and Nantwich Borough Council. Work on the park began some 13 years ago with the objective of creating jobs and diversifying the local economy and it became the first ecologically-based development of its kind. It now has 250,000 square feet of premises either developed or under construction and is the home of around 1,000 office and high-technology jobs. From its outset, Crewe Business Park was developed with the interests of both people and wildlife in mind. The physical layout of the Park was planned to take advantage of the natural features of the land whilst protecting the natural vegetation and habitats of other wildlife. Use of ecological plans and surveys and conservation plans ensured that original habitats have been enhanced. Landscaping, wildlife ponds and hedgerows now exist on the site which was previously open fields, resulting in a location which is not only ecologically more rich than before but also more enjoyable for the public and employees alike to explore. Around 10,000 native trees and shrubs have been planted in the park along with pot grown wildflowers. Native aquatic plants were planted at the margins of new ponds as these were established. Other initiatives included the creation of wildlife corridors, the placing of bird and bat roost boxes and the creation of wildflower meadows on those areas identified for development but not yet sold. Businesses on the park are keen supporters of the conservation and wildlife plan and have created their own landscape features on their sites. Each business is encouraged to have a pond, most of which have been created with the advice of the Parks Landscape Architect and retained Countryside Ranger. Some businesses have been attracted to invest in the area by the park"s ecological policies; others have simply cited the park"s pleasant environment as a factor in their investment decision. Source: Personal Communication, Crewe and Nantwich BC Economic Development Unit and Cheshire County Council Figure 4.10 Case Study - Environmental Advisory Group, Manchester Regeneration A public/private/voluntary mix comprised of several groups such as the Greater Manchester Police, Marks and Spencer and the Piccadilly Community Group, aimed at improving the quality of Manchester City Centre. Success has already been achieved with this kind of initiative in Hulme, where private developers such as Miller Homes and Belrose have built new housing in what was a poor quality environment which are now sought after. Source: Personal communication, Marketing Manchester. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 64 Figure 4.11 Case Study - Strategic Land Reclamation: Mersey Basin Campaign The Mersey Basin Campaign (see Figure 2.1) is in the final stages of negotiating a £2 million, five year project to improve derelict, underused, neglected and/or contaminated waterside land across its campaign area. The area covers 31 local authorities and stretches from Crewe and Nantwich in the south of the region to Pendle and Burnley in the north, and is bounded by High Peak in Derbyshire and the Wirral in the east and west respectively. At a strategic level the programme is being assembled with regional partners (for example, the NWRA), while at a local level project partners will include conservation groups, land owners and private sector operators. The initiative is to have a community focus, and will include site clearance, tree planting and the provision of footpaths and seating. The objective of the project is to increase visual and recreational amenity, and in so doing, provide benefits for the wider community. The links between inward investment and this project, which aims to improve the quality of the environment and encourage regeneration, are such that the initiative will also have a knock-on effect in improving the probability of securing new investment and jobs for the areas which are the focus of the improvements. Source: Personal communication, Mersey Basin Campaign. Figure 4.12 Case Study - Clifton Hall Clifton Hall near Agecroft, Manchester, is in the Irwell Valley and was the site for a land restoration scheme which was funded by North West Water and supported by the Mersey Basin Campaign. The area was an 18 hectare derelict sewage treatment site which was converted into a public park by mixing sewage cake from North West Water"s (NWW) sludge processing centre in Widnes and 115,000 tonnes of cleaned construction waste. The scheme created a public park and woodland, with 27,000 trees and several acres of wildflower meadows. The main part of the project which involved demolishing existing buildings and a large scale clean up operation took just 10 months and was completed in 1998. NWW only had a limited time for the site preparation due to the construction of a new prison in the same area which restricted access. The project was self-financing by saving on the cost of disposal of excavation spoil to landfill by using the spoil for land reclamation on the same site and using sewage cake instead of fertiliser. In the development of the project NWW worked closely with the community and local authority who were involved in the discussion of future management plans. Clifton Hall was a prize-winner in the Mersey Basin Campaign"s 1998 Business and Environment Awards. NWW state that such a use of derelict land "will make a significant contribution to economic regeneration and sustainable development in the region". (United Utilities, 1999) Source: Personal communication, North West Water. 4.2.2 Environmental Project Investment(1) The financial sector has been the subject of criticism in the past for failing to provide sufficient understanding of, and support to, firms providing environmental goods and services. For instance, particular complaints have related to perceived short termism, lack of confidence in technology (despite rigorous testing) or an alleged reluctance to provide start-up capital. However there are a number of positive initiatives ongoing in this sector and some of these are briefly addressed in the following paragraphs. Banking led initiatives are summarised firstly for "environmental" firms (ie. those operating within the environmental goods and services sector) and secondly (1) We are grateful to John Lee of the Co-operative Bank for his help in the preparation of this section. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 65 for firms in any sector which wish to undertake investment to improve environmental performance. A brief summary of equity and investment capital support to the environment sector firms is then presented. Encouraging Investment by Firms in the Environmental Goods and Services Sector Companies supplying goods or services with a positive environmental impact are served by a number of banks which offer a preferential banking package to the environmental industry and commerce. The Co-operative Bank (based in the North West) launched its package in 1997 which includes lower banking charges, cheaper borrowing and more generous returns on deposits. In addition, the bank offers an "Asset Finance" scheme called "GreenLease" which includes within its remit items costing from £50,000 to upwards, with no fixed ceiling. Numerous deals, including some of several million pounds have been negotiated. Encouraging Environmental Best Practice in Business In the UK there are a variety of initiatives sponsored by banks and other financial institutions designed to encourage environmental best practice in business. These initiatives are aimed at firms which undertake environmental investments to bring about increased energy efficiency, pollution abatement, waste minimisation etc. One such initiative is the Growth and Environment Scheme, a European Union/European Investment Fund programme which seeks to improve access to loans for small and medium sized enterprises investing in "new investments producing environmental benefits". The Scheme is administered in the UK via Barclays Bank through which loans of up to 1 million euros can be arranged on repayment terms of between 3 and 10 years. The Co-operative Bank offers preferential terms to companies investing in environmental technologies. The bank examines proposed projects or investments against its ethical policy and ecological mission statement, and where they are deemed environmentally beneficial, loans can be offered on terms more favourable than would otherwise be the case. A similar scheme, known as the "Natwest Environmental Lending Initiative", is administered by National Westminster Bank. This offers business customers investing in projects to improve environmental performance up to 0.5 percent off standard interest rates and 50 percent off normal arrangement fees. Where recognised environmental consultants have produced an environmental report for the company, the whole of the arrangement fee is waived. The Dutch owned Triodos Bank, which in the UK is based in Bristol, also offers a range of lending options advantageous to businesses. These focus on the key areas of renewable energy, sustainable transport and recycling. Both the Co-operative and National Westminster Banks have established mechanisms via which advice on environmental best practice can be provided ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 66 to businesses. The Co-operative Bank invested £1 million into the North West based National Centre for Business and Ecology, established in 1996 in partnership with UMIST, Manchester, Salford and Manchester Metropolitan Universities. Now renamed as the National Centre for Business and Sustainability, this facility offers consultation and advice on environmental issues to businesses of differing size. The bank has also been involved in the Environmental Technology Best Practice Programme through which the guide Investing to Increase Profits and Reduce Wastes has been produced. Meanwhile National Westminster Bank, in partnership with the World Wildlife Fund, has produced a Better Business Pack which offers business advice focusing on getting started, reducing waste and conserving energy. Equity and Investment Capital Venture capitalists and so-called "Green Business Angels" can provide an important source of equity support to the environmental goods and services sector. This source is especially useful for start-up businesses or companies without an established track record - organisations which can be under- provided for by the banking sector. The British Chamber of Commerce"s Guide to Venture Capital can provide a starting point for those wishing to explore these opportunities. A group of sector specific companies with the knowledge and backing to enable environmental sector companies to access equity funds are also developing and include: Delphi International/VTZ for venture capital/investment advice; Impax capital (project finance, especially for the renewable energy sector); and the Wheb Partnership (corporate strategy and finance). Such companies can also work with the high street banks to attract a mix of capital support where possible. A number of high street banks now also have in-house venture capital businesses. Most recently, Triodos Bank launched its Triodos Match service, inviting businesses to submit business plans seeking funding of between £1 million and £20 million. The service will be available only to those firms delivering social or environmental benefits and aims to match investment opportunities with appropriate investors registered with the Bank. 4.3 QUALITY OF LIFE BENEFITS FOR RESIDENTS Indications from Local Agenda 21 survey responses have suggested that quality of life issues regularly aired by people in the North West include matters such as homelessness, benefits, housing design, traffic, crime, health, things to do in the evenings and energy efficiency. It is clear that quality of the environment is linked to quality of life and the two terms are very closely ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 67 related, not least because social issues and health appear to be clearly related to an individual"s environment. A number of "quality of life" issues can be traced back to the environment. It is clear that nature matters to people. As Kaplan (1983) colourfully observes (quoted by Handley, Wood et al, 1998), "Big trees and small trees, glistening water, chirping birds, budding bushes, and colourful flowers - these are important ingredients in a good life. To have these only available rarely, when and if one can afford to leave the city, deprives people of tranquillity and of spiritual sustenance". And within the urban landscape too, environment is crucial. Some of the more successful transformations of city centres have focused heavily on developing the social life of cities, especially clubs, bars, restaurants, pubs, as well as cinemas and theatres. As observed by Business Strategies (1999), "the change to Manchester City Centre is especially remarkable, and has clearly contributed directly to the prosperity of some city residents. It is also clear that retailing and the city centre property market (both residential and office) have benefited, and there may have been a wider effect in terms of keeping and attracting businesses". The population of Central Manchester has risen to 10 000 from 1000 in the past ten years (Lees, 2000) and is forecast to reach 20 000 in 2005. Motor crime and property crime are down and the city"s regeneration has become an example for best practice. As a vibrant city centre can add to the quality of life it can also become an important factor which influences office location. Even if a company does not wish to locate itself in a city centre, it may be important to that company that the city centre is a successful place. Bolton has focused strongly on the development of arts and culture, capitalising on its Octagon Theatre and now in its third year of Blue Badge walks. These walks are provided by local guides with the necessary knowledge and experience and are run to show people around the town"s industrial heritage and sites. According to Business Strategies (1999), the town has a specific policy for the "evening economy" and is nurturing a range of night time facilities. Like nearby Manchester, Bolton has a Town Centre Partnership (now a limited company) backed by the private sector and having the aim of improving local facilities and image, designing out crime, improving infrastructure and providing a safe place to shop. 4.3.1 Quantification As we have seen in the "Inward Investment" section, quality of subjective issues such as the environment is a difficult question to define precisely, partly because of the broad issues that any successful measure must include. One measure which has attempted to objectively compare the quality of life across England is the DETR"s "Index of Deprivation." The index ranks areas, by local authority district, according to their performance on a number of measures. These measures are: the degree to which an area lacks amenities; ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 68 overcrowded households; number of 17 year olds not in full time education; quantity of derelict land; number of people on income support; number of children in families on income support; education, measured in terms of children achieving low grades (or no grades at all) in GCSE examinations; long term unemployment; unemployment; and insurance premiums. Of the top 50 local authority districts in the list (i.e. the ones which have the highest "deprivation index"), 11 are in the North West. These are Liverpool, which is the worst performer, Manchester, which is third worst; Knowsley (9th); Salford (23rd); Rochdale (29th); Oldham (33rd); Halton (34th); Blackburn and Darwen (41st); Wirral (44th); St Helens (45th); and Bolton (47th). Between 50th and 55th a further four NW areas appear: Blackpool, Tameside, Sefton and Barrow in Furness. An alternative measure has been developed by the Quality of Life Research Group at the University of Strathclyde. While the deprivation index discussed above focuses more on the lack of quality of life, the Strathclyde measure is more positive in its approach. The research is based on a 1996 survey of 2,225 adults who were asked for their opinions as to which attributes, derived from a pilot study and previous surveys, were of most importance to them. An appropriate weighting was attached and towns assessed on the basis of their performance. The Table below reproduces the results achieved. The high level of importance attached nationally to good health care, safety and service provisions is significant, as is (from a strict environmental perspective) the importance of pollution levels, ranked sixth. Scenic quality of area is ranked thirteenth nationally. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 69 Table 4.4 Attributes of Quality of Life Order Attributes % of respondents % of respondents in nationally the north west indicating 'very indicating 'very important' important' 1 Violent crime rates 71.1 68.2 (2nd in NW) 2 Local health care provision 70.3 68.1 (3rd in NW) 3 Levels of non-violent crime 65.7 69.6 (1st in NW) 4 Cost of living 58.8 55.7 (5th in NW) 5 Education provision 57.1 59.1 (4th in NW) 6 Pollution levels 56.1 <50 (6th in NW) 7 Employment prospects 49.5 8 Housing costs 49.4 9 Wage levels 45.2 10 Shopping facilities 43.8 11 Unemployment levels 41.1 12 Travel to work times 36.1 13 Scenic quality of area 33.0 14 Climate 25.3 15 Sports facilities 23.8 16 Leisure opportunities 21.4 Rogerson, (1997) Using the national perceptions shown in the Table above, and a set of indicators which measure the characteristics of each feature in 189 towns and cities in Britain, one result of the research project was expressed in the form of a ranked list. Those towns coming closest to matching the features, services and characteristics which the average person considers most important appear at the top of the ranking. The highest ranked town in the North West at the time turned out to be Kendal, with Rogerson finding that the town had the essential services in health and education and below average levels of pollution. In addition, a strong local community and friendly environment were much commented on locally. North West settlements appear three times in the top fifty (Lancaster being 33rd and Carlisle 35th), with Southern England and Scotland well represented. However though there are broad findings (ten of the bottom twenty positions are occupied by places in the East and West Midlands) a clear and identifiable pattern does not emerge. In the search for explanations of why places do or do not appear to attractive to people there is a need to explore more local factors. This in turn places importance on how local politicians and decision makers control and influence the environment in all its dimensions. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 70 Figure 4.13 Case Study - Warrington Borough Council's Local Agenda 21 Programme The Local Agenda 21 programme stems from the 1992 Earth Summit in Rio de Janeiro where the need to produce sustainable development strategies was identified. The aim of the programme is to protect and enhance the environment through encouraging sustainability and also to encompass social areas such as health, housing and other areas having a direct impact on quality of life. Warrington"s Local Agenda 21 strategy was published earlier this year and is the outcome of a broad based consultative approach that started in 1996. The Agenda 21 strategy draws on the findings of focus groups largely comprising local people which addressed issues such as social exclusion, health, crime and safety as well as environmental matters like pollution, waste and nature conservation. Key concerns voiced locally included health, homelessness, housing design, energy efficiency, health, crime and benefits. Safety was an issue of particular importance to respondents while high profile local issues ensured that the question of landfill sites received plenty of emphasis. The strategy develops eight main sustainability issues and aims for the area and presents an Action Plan for their implementation. The plan nominates a lead group to implement the action as well as proposed partners and a timescale for implementation. Warrington Borough Council are now committed to developing a plan for each ward, and are starting the exercise with pilot studies. The aim is to find out people"s views on their environment and quality of life: an Agenda 21 "in miniature". Source: Personal communication, Warrington Borough Council, and Warrington Borough Council (2000). Figure 4.14 Case Study - River Alt Reedbed Scheme The 35 hectare site in Fazackerley, Liverpool, is owned by North West Water but until now has been managed by the Environment Agency. The project has been part of the Alt 2000 initiative and the Mersey Basin Campaign and has the aim of reducing pollution through the use of reedbeds. Much of the surface water in the surrounding area is of very poor quality. Hence, the Environment Agency decided on economic grounds to deculvert the watercourse and channel it through a reedbed. The involvement of the Lancashire Wildlife Trust in the project at this stage is consistent with the intention to establish the site as a nature reserve, improving water quality and reducing pollution. The Trust is aiming to manage the area as a nature reserve by managing the vegetation and habitat. The site is home to rare red squirrels and has already attracted many birds even though the improvement is still in its early stages. As well as the site being managed as a nature reserve, there is also an intention for it also to be a source of environmental education. The Wildlife Trust are hoping to promote environmental education by working with schools and using the environmental education the site can provide to supplement learning on the national curriculum. Children will be brought to the site in order to gain first hand experiences, though before this can take place a significant amount of health and safety related work will need to be completed. Source: Personal communication, Lancashire Wildlife Trust. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 71 Figure 4.15 Case Study - Making Green Connections: Youth Awareness and Waste Minimisation The youth segment is a vital target audience for Lancashire"s Waste Management Strategy. The Making Green Connections project aims to provide the focal point for the support of youth organisations in the promotion of waste minimisation in Lancashire. It co-ordinates youth related projects in relation to Lancashire"s Municipal Waste Management Strategy and the Waste Awareness Campaign, and helps provide a network of organisations which can act "as one" in the delivery of waste minimisation campaigns. Making Green Connections also supplies resources to schools and groups for raising awareness of waste and waste minimisation projects. The link to waste minimisation (see Section 2) is clear. Source: Personal communication, Lancashire Wildlife Trust Figure 4.16 Case Study - The Wigan Greenheart and Proposed Regional Park The Wigan Greenheart is based on an eight-mile-long corridor of open land along the Hey Brook. Immediately bounded by the urban areas of Wigan to the north-west and Leigh to the south-east, the area offers hugely important recreation and leisure potential to hundreds of thousands of people living in the immediate vicinity, as well as the cities of Manchester and Liverpool and nearby towns such as Warrington, Skelmersdale and Bolton. A partnership of public, private and voluntary bodies including the RSPB, Lancashire Wildlife Trust, English Nature and Wigan Borough Council are developing part of this area, the Wigan Flashes, as an area of high biodiversity value within an urban fringe context. The Wigan Flashes are an area of mining subsidence of local importance for breeding and wintering birds. There is potential for further development to create nationally-important habitats, notably reedbed, and to increase the population of the very rare bittern, a UK priority species. In other parts of the flashes, there are areas of lowland wet grassland, with important populations of breeding waders that require active management to maximise their biodiversity value. Elsewhere areas are being identified for expansion of the Red Rose Community Forest to increase amenity and habitat interest without damaging other habitats of high biodiversity importance. The area also comprises water bodies used for watersports, the Pennington Country Park, and the Hope Carr Nature Reserve and is large enough to accommodate a wide range of leisure activities taking place in different areas linked by a network of public access routes. There are proposals to widen the area to form a larger Regional Park. A unique feature of such a park would be its combination of local amenity value in an urban context and national biodiversity importance. Under the UK Biodiversity Action Plan, the Government is committed to increasing the coverage of habitats such as reedbeds and lowland wet grassland. The partners are working to increase these habitats in the Wigan Flashes and surrounding area. Source: Personal communication, RSPB. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 72 Figure 4.17 Case Study - Regenerating Coastal Habitats and Seaside towns: Building on the Morecambe Experience The decline of the traditional British seaside holiday has hit Morecambe particularly hard, and the knock-on effects on other businesses have been serious. A particular challenge for all resorts is attracting a diverse clientele, and extending the visiting season beyond the summer peak period. The international importance of Morecambe Bay"s migratory bird population is a key to Morecambe"s regeneration. Hundreds of thousands of birds, often in spectacular flocks, assemble on the shore during winter months to feed and roost. Lancaster City Council, working with RSPB, has initiated a long-term regeneration programme that celebrates this natural wealth. A public art project has transformed the eastern seafront and nearby shopping centre into a celebration of birds, with hundreds of sculptures, brass and stonework adorning the pavements, roundabouts and bollards. This is part of a bid to attract out-of season visitors, and it is working. RSPB provides teacher-naturalists to run the Council"s guided visits programme and the resort is being promoted nationwide as one of the UK"s foremost wildlife attractions. The Morecambe Bay area includes the Arnside-Silverdale Area of Outstanding Natural Beauty, one of the most biodiverse areas in the region, within which the RSPB reserve at Leighton Moss alone receives 100,000 visits each year. To the south, the Ribble Estuary is one of the two most important UK estuaries for migratory birds. At Lytham, the RSPB and the local tourism department actively promote the estuary as an asset of the area. The local hoteliers' association have introduced holiday packages that focus on the area"s excellence for birds. An opportunity exists to develop coastal regeneration concepts that support the coastal economy through habitat enhancement linked to tourism and other economic benefit. In the coastal plain of North West England the historic loss of wetland to intensive agriculture has been enormous. The ancient Martin Mere, which, until large scale agricultural transformation this century covered nearly ten square kilometres now exists only as isolated small nature reserves, including a 150 hectare EU Special Protection Area managed by the Wildfowl and Wetlands Trust. Restoration of the former lowland wet grassland agriculture mix would be based on a more natural seasonal flooding regime over some of the former mere. This would link the coastal and estuarine habitats of the Ribble and the Sefton coast; it would dramatically reduce agricultural pollution of coastal waters, and help revitalise the resorts and market towns of West Lancashire and north Merseyside. Source: Personal communication, RSPB. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 73 Figure 4.18 Case Study - Millennium Greens Initiative The objective of this national initiative is to establish open spaces in areas of need. Since the start of the initiative some 250 projects have been established, of which 51 are in the North West region. The size of the greens varies considerably: in the North West the smallest is only a quarter of an acre though typically the greens are larger than this, with some up to 30 acres in size. The initiative is led by the Countryside Agency assisted with some £10m worth of Millennium Commission funding. In the case of each green, funding is matched by local communities, either through in-kind contributions or financially. Sometimes the source of finance is local council or European grants and some sites are also supported by commercial sponsors. Land comes from a range of sources such as Local Authorities, breweries, mining and landfill companies and individuals while the maintenance of the site once it has been established is the responsibility of the local Millennium Green Charitable Trust, set up for this purpose. The greens are put to a wide variety of uses. In Mawdesley, Lancashire, a previously existing wildflower meadow has been re-established, and in Henbury, Cheshire, the area"s apple growing history provides the impetus for the community apple orchard which is being established. The millennium green in Maryport, Cumbria, is one of many including a local art installation, while in Knowlsey mosaics trace the history of the area from the Vikings, through the Anglo Saxon era to the Industrial Revolution. Others install water features, river courses, woodlands, or provide new paths or informal play features such as willow arches or turf mazes. Many of the sites are still under development though the benefits of the programme are being evaluated. They include: a physical change to a site and an improvement in visual quality; the provision of an amenity where people can meet - often sites provide high quality public spaces where previously none had existed; engendering a feeling of community pride and bringing the community together; and promoting community spirit and positive working together - there are several examples in the north west where the Millennium Green Trusts formed to implement and operate the green have taken on subsequent, community based projects. These benefits are of particular value since they accrue to areas of need. The programme is focused on such areas and prioritises applications according to the degree to which the applicant demonstrates a lack of existing open space, the size of the population which can benefit and the social status/level of deprivation in the ward in question. Source: Personal communication, Countryside Agency. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 74 ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 75 5 OPPORTUNITIES FOR SECTOR GROWTH 5.1 INTRODUCTION The opportunities for the development of the North West"s environment sector have been prepared with help from many of the region"s environmental specialists representing private, public and not for profit sector organisations as well as the education sector. Due care was taken to acknowledge the aims of wider policy and regional planning documents to ensure that the future opportunities highlighted here are broadly compatible with regional policy initiatives. The opportunities relate directly to the project scope (see Section 1) and the list presented does not encompass every development opportunity. Instead, it provides an indication of the greatest opportunities which our research suggests exist in each of the major categories included. Where possible we have attempted to quantify the likely impact on the size of the environment sector which these opportunities might have as they develop. There are many different drivers which might affect outcomes and undertaking such an estimate is bound to be perilous; however for those areas where it has been possible to estimate likely growth (such as the environmental goods and services sector) either a range or point estimate has been presented. Some of the growth areas highlighted below will be driven within the region, while others will be determined elsewhere. For those which need to be driven by the investment of public funds, rather than commercial operations, priority opportunities will need to be identified. Where appropriate, it may be possible to employ a similar system to that used by the Forestry Commission in prioritising investment projects. Their Woodland Scoring System is used to assess the relative merits of competing investment projects and attempts to ensure that those projects which maximise public benefits are implemented first. 5.2 THE ENVIRONMENT SECTOR 5.2.1 Environmental Goods and Services Sector Future opportunities for the environment goods and services industry are summarised below. These have fed into the growth projections shown in Table 5.1 - a range of high and low growth projections are provided. Opportunities are discussed in terms of (1) markets in the North West and elsewhere in the UK, and those (2) opportunities in export markets. Given the starting point, growth in this sector would represent an opportunity for the environmental economy, though it is worth remembering that in some cases, growth is expected because the "first choice" solution (for example, no derelict land in the North West) is no longer available. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 76 Future Opportunities in the UK Future opportunities in the UK can be split between high and low growth opportunities. "Low growth opportunities" should not be taken to mean that growth will not occur. High growth opportunities will be driven by the need for: i. Waste Management; ii. Clean Processes, Process Control, Materials & Product Design; iii. Regeneration - Contaminated Land Remediation & Landscape; iv. Renewable Energy & Energy Management; v. Air Pollution Control; vi. Environmental Monitoring and Instrumentation; vii. Environmental Consultancy Services; viii. Transport Pollution Control and Management; and ix. Environmental Education, R&D and Culture Change. and by climate change. Low growth opportunities include: i. Wastewater Treatment and Water Management; ii. Noise and Vibration Control; iii. Marine Pollution Control. All these are presented in more detail below. A: High Growth Opportunities i) Waste management Significant changes and market opportunities will emerge in waste management activities in the NW and throughout the UK over the next five years. These are being driven by Government policy commitments (eg Waste Strategy 2000 and use of the landfill levy) to reduce reliance on landfill and increase waste minimisation and rates of recycling (including aggregates, plastics, glass, tyres, oils etc), composting and waste reuse. "Waste Strategy 2000" sets targets such as: by 2005, reduce industrial and commercial waste landfilled to 85 percent of 1998 levels; and by 2005, recycle or compost at least 25 percent of household waste (rising to 33 percent by 2015). As noted in Action for Sustainability (GONW, 1999), recycling of domestic waste in the NW is below the national average of seven percent and substantial, four- to five-fold increases will be needed in order to reach the 25 percent recycling target by 2005. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 77 The same drivers will also drive demand for product design services to allow for increased reuse and recycling; environmental consultancy services such as Life Cycle Assessment (LCA); and waste management products such as waste shredders, compactors, sorting systems, bins, waste-to-energy incinerators and waste management vehicles. Demand for recycling services and recycled materials will depend to a large degree on the development of markets for recycled products and price conditions in international markets for paper, plastic, oil, organic wastes, construction and demolition waste etc. Waste Strategy 2000 places a strong emphasis on the development of new value-added markets for waste materials. In order to generate the waste volumes necessary to enhance the economic viability of recycling activities, it will be important for waste recycling initiatives to be adequately co-ordinated within the NW and with other "regions" such as the North East, Scotland, Northern Ireland, the West Midlands and Yorkshire and Humberside. ii) Clean Processes, Process Control, Materials & Product Design The increasing economic costs of poor environmental performance will continue to drive demand for process control techniques and clean technologies to improve resource efficiency and environmental performance of manufacturing processes, waste minimisation at source and reduced costs (eg in industry). Demand will also increase for new materials and product design techniques such as the use of computer-based "process simulation" techniques which allow products and processes to be designed and tested on-screen in order to optimise their environmental performance. Life cycle assessment identifies the environmental impacts of a product during its life cycle from design to disposal. Expert advice on life cycle assessment will increasingly be in demand as a result of the need to reduce waste and increase recycling, themselves driven by policies such as the proposed European WEEE directive (Waste, Electrical and Electronic Equipment requiring product take-back and recycling) and the landfill levy. iii) Regeneration - Contaminated Land Remediation & Landscape Services There is significant potential to increase land regeneration activities in the North West, not least because the North West"s share of the national derelict land "resource" is high. In addition, site investigation, contaminated land remediation, landscape design and contracting, and skills for the management of green spaces will also increase, and will potentially be driven by the following: NWDA programmes to put into effect the commitments made to investing in high quality environmental assets and regeneration work, giving rise to ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 78 expanding opportunities for land remediation and landscape improvement. According to information provided by the NWDA, it is estimated that there are 9900 hectares of land requiring decontamination or remediation in the NW. At present, approximately 300 hectares are regenerated by public sector organisations each year, at an annual cost of approximately £18 million per year. Regeneration of the whole 9,900 hectares over the next 20 years (and regeneration of "new" land requiring remediation) would require an extra 250 hectares per year, costing approximately £15.3 million per year. Due to the lack of regional regeneration resources, the funding for this increase would need to come from central government. If central funding was available, significant increases in the value of land remediation in the NW could occur. work being let by Local Authorities, including new responsibilities under Section 57 of the Environment Act 1995, which came into effect on 1st April 2000. These regulations require Local Authorities to undertake reviews of contaminated sites in the areas and to develop strategies for its remediation. Government target for 60 percent of new housing to be on reclaimed land will drive contaminated land remediation activity, as will planning requirements ("sequential testing") relating to retail developments which encourage the use of inner city sites rather than out of town sites on greenfield land. These same factors are likely to generate increased demand for landscape design and contracting services. The level of this activity is also dependent on the buoyancy of the property development market in the region. iv) Climate Change Climate change issues will drive a wide range of future demands for environmental goods and services. These can be categorised under "adaptation" and "mitigation" measures. Adaptation measures are in response to climate changes - eg construction of flood defences; mitigation measures tackle the causes of climate change - eg pollution abatement, process changes or traffic reduction to reduce releases of greenhouse gases. v) Renewable Energy & Energy Management Renewables - Climate change issues are driving the future expansion of renewable energy generation in the NW (in line with action points contained in the Regional Scoping Strategy to investigate sustainable energy sources in the region). This is likely to include waste to energy schemes, biomass, combined heat & power, gasification, wind, small scale hydro, photovoltaics etc. Partners in the NW (eg NWDA, Environment Agency, NW Regional Assembly etc) plan to undertake a review of future renewable energy operations in the NW in the next year - this study will provide detailed ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 79 projections of future renewables activities and a strategy for increasing the contribution from renewables. Energy Management - Demand for Energy Management and Efficiency equipment and services is anticipated to increase in response to drivers such as the introduction in April 2001 of the Climate Change Levy, which will apply to all non-domestic energy users. Large users will be able to claim exemptions, but they will be required to demonstrate that they are introducing measures to reduce carbon emissions and prove the reductions. Some emissions reductions will be achieved through voluntary agreements with the relevant trade associations. There will also be tax exemptions for selected energy efficient technologies. These developments will stimulate significant market opportunities for energy management consultancy, monitoring equipment, software and technologies. Demand for these goods and services is also being driven by the responsibility of energy companies to promote energy efficiency and the fact that energy efficiency is one aspect of requirements placed on industrial operators under the new Integrated Pollution Prevention and Control (IPPC) regulations. vi) Air pollution control Future tightening of air pollution regulations (eg emissions of volatile organic compounds from industrial sites, regulated under Local Authority Air Pollution Control Regulations) and increasing concern about greenhouse gases and micro-pollutants such as fine particulates and dioxins will mean that demand for air pollution control products and services will continue to grow in the next 10 years. vii) Environmental Monitoring & Instrumentation Demand for environmental monitoring and instrumentation (equipment and services) is also likely to increase as environmental regulators (Environment Agency and Local Authorities) implement tighter monitoring regimes in all media - emissions to air, land contamination, solid waste monitoring, emissions to water and water quality. viii) Environmental Consultancy Services Demand for the wide range of environmental consultancy services (eg environmental impact assessments, environmental management systems for industry, environmental audits, advice on environmental legislation, waste minimisation services, life cycle assessment etc). in the NW is projected to increase gradually over the next ten years in line with drivers such as future increases in the costs of waste disposal, tightening environmental legislation on industry, transport infrastructure investments, growing public and corporate expectations for environmental improvement in industry and industry"s increasing interest in enhancing competitiveness through environmental improvement. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 80 ix) Transport Pollution Control and Management The need to reduce traffic congestion, traffic volumes and environmental impacts of transport will generate opportunities for a wide range of environmental goods and services - including new engine and automotive design (clean vehicles) and transport telematics (use of information and communication technologies to manage transport networks in order to reduce congestion, environmental impacts and encourage the use of public transport). x) Environmental Education, R&D and Culture Change Growing demand for environmental training for employees in industry, practitioners in the environmental sector (eg environmental auditors), intermediate labour market projects to develop skills, and a general change in culture in order to increase recognition of the importance of the environment to quality of life and economic/social objectives. Also academic based R&D is required in all sub-sectors of the environmental goods and services industry discussed above - eg environmental sensors. Government programmes such as the Sustainable Technologies Initiative (STI) the Foresight Programmes" Energy and Natural Environment Panel and a number of Research Council initiatives are currently seeking to identify future R&D needs for technologies to contribute to sustainable development. As an example, R&D priorities identified by the Foresight Programme include: "improvement/application of cleaner technologies; understanding of regional/local eco-systems; sustainable transport; products and production methods using orders of magnitude less energy and materials; products using non-hazardous, biodegradable materials; new energy bases (hydrogen, low carbon); low carbon and non-carbon based chemistry and materials; socio/institutional framework for new modes of production/consumption" (Foresight Energy and Natural Environment Panel, 2000). B: Lower Rates of Growth: i) Water & wastewater treatment The bulk of demand for suppliers providing water and wastewater equipment and services comes from manufacturing industry and the water industry (NW Water). North West Water"s capital expenditure programme currently approximates £500 million p.a. (1990-1995 = £2 billion; 1995-2000 = £2.5 billion; 2000-2005 = £3.7 billion) and relates to activities such as the enhancement of sewage treatment facilities and investment in the water distribution network. It is anticipated that NW Water"s expenditure will ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 81 increase up to 2005 and then may well decline as investments to comply with legislation such as the Urban Waste Water Treatment Directive nears completion. Demand from industry for wastewater treatment equipment and services is likely to increase gradually over the next ten years. ii) Marine Pollution Control Markets opportunities for marine pollution control goods and services are likely to increase with the development of Irish Sea/Morecambe Bay energy reserves. iii) Noise & Vibration Control Demand for noise and vibration control goods and services is expected to experience growth in the North West - perhaps significant growth - but probably not in the short term. The forthcoming EU noise directive expected to be introduced in 2002 will require labour intensive noise mapping to take place by 2005 for agglomerations of more than 250 000 people, with population centres of 100 000 being affected eight years after implementation (around 2010). Software requirements are presently serviced largely from overseas. Hardware and consultancy services may expand over a shorter timescale as the forthcoming IPPC directive is now also applicable to noise. Manchester has developed a number of leading businesses in this industry (partly building on Salford University"s acoustics department) and though opportunities appear promising, large percentage increases in size would be applied to what is presently a fairly small base. Future Export Opportunities: As well as emerging market opportunities in the North West and the rest of the UK, there are significant export opportunities - see Figure 5.1 for forecast increases in EU environmental exports, notably to markets such as Central and Eastern Europe (CEE) where the EU accession process requires environmental improvements and major investments. Opportunities exist in a wide range of sub-sectors including: solid waste management; air pollution control; water supply and wastewater treatment; contaminated land remediation; energy management; renewable energy; use of process control techniques for environmental management in industry; clean technologies in new industry in CEE; and finally environmental consultancy advice to European Commission and Accession state governments on transposition and implementation of EU environment regulations. Other high potential export markets include: China, SE Asia and Latin America. Growth rates in the more mature markets such as the US and Western Europe are likely to be slower and these markets are subject to more intense competition. North America, whilst very competitive, remains important to North West exporters because of its size. Within Western Europe, competition from suppliers is intense but opportunities for novel and niche ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 82 technologies are good, particularly in Southern EU Member States (eg Spain & Portugal) where environmental investment levels remain buoyant. Figure 5.1: EU Environmental Exports in 1999 and Forecast to 2010 7 Ext ra -EU e n v ' l e xp o rt s : b illio n e u ro s 6 5 4 3 2 1 0 US A J ap an C h in a In d i a S E A s ia S Am CE E A u st / NZ M E as t A f ric a 1999 2010 Source: IPTS, EU Eco-Industries to Year 2010 (1999) Opportunities for Whom? Opportunities in environmental markets exist for established suppliers and firms in sectors like engineering which have the potential to diversify into environmental applications. There are also opportunities for academic research and development bodies to strengthen links with industry and environmental suppliers to secure the development and commercialisation of environmental technologies. 5.2.2 Conservation There are a number of future opportunities for an increase in conservation activities in the region, extending over the short, medium and longer term. Many of these are either driven by or are dependent on increasing public awareness of the importance of nature conservation and the increasing level of public participation in conservation activities. For example, the Regional Strategy contains a commitment by the NWDA to support projects which conserve and enhance biodiversity and expand these natural resources, especially in urban areas where contact with nature is limited and environmental quality is poor. The Strategy recognises that this will also help to support wider processes of regeneration and create a new image (NWDA, 1999). In an RSPB survey of organisations involved in the management of the natural environment of the region, half of those responding expected that both expenditure and employment in nature conservation activity would increase over the next three years. Most others expected the situation to remain static, and very few expected a decrease in activity. The significant drivers of this were felt to be the availability of external funding, central ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 83 government policy and regulation and public demand. Local government policy is also felt to be a significant driver, although to a lesser degree than the others (RSPB, 2000). Unfortunately, no data are available to quantify the potential scale of these opportunities. New Regional Park The North West Development Agency"s Regional Strategy contains an objective to restore the environmental deficit in the region by, inter alia, developing a new regional park. The NWDA will support strategic projects designed to create and manage new park resources closer to the main centres of population, including Community Forest projects. These will not necessarily be large contiguous areas of land, but could be networks interweaving urban and rural areas. For instance, research has indicated that there may be up to 30 000 hectares of former industrial and contaminated land in the region that might be reclaimed as community forests. This can also create links to other economic and environmental benefits, for example through aiding farm diversification into timber sales, tourism and recreation, and can also enrich the region"s landscape. The development of a new regional park has been identified by the Regional Strategy as an early priority for implementation, and will be a component of the first Action Programme. Thus it is likely to be a short to medium term opportunity for conservation activity in the region (NWDA, 1999). Biodiversity Action Plans The development of regional and local Biodiversity Action Plans and targets will also provide an impetus for biodiversity and conservation activities and a framework for delivery. Preparation of biodiversity action plans is underway and by 2004, any opportunities arising from this work should have been realised, this date being the medium term target identified by Action For Sustainability for the final implementation of plans. Designated and Non-Designated Sites There is an increasing recognition of the importance and value of nature conservation sites, not only for their intrinsic value for species and habitats, but also for related benefits, such as for recreation and other quality of life benefits for local people. This is recognised not only through the increase in types of statutory designations and their associated responsibilities, for example the European Union"s Natura 2000 network and World Heritage Sites, but also in the greater emphasis placed on non-designated sites. For example, Action For Sustainability includes an objective of ensuring that all nationally and internationally designated sites are maintained or restored to a "favourable condition" by 2010, presenting an opportunity for the medium to longer term. A number of other targets are identified by Action for ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 84 Sustainability which present future opportunities for conservation work in the region, but are currently without timescales. These include: extension of non-statutory designations where appropriate and valuing as important biodiversity resources; encouraging every town and city in the North West to plan and create a strategic network of environmentally managed green spaces; and reducing the potential impacts of climate change by providing the capacity for species and habitats to adapt to climate change by transference to more suitable locations. Other Conservation Opportunities To date, revenues from the landfill tax have provided a welcome new source of funding for conservation projects and activities. It is likely that the availability of funding from this source will increase, although this may be time-limited, possibly for only the next six to seven years. National Lottery Funds may also present an increasing opportunity, particularly for small schemes. Employment schemes such as New Deal/Environment Task Force have also contributed to the conservation skills base in the region, helping to provide the necessary human resources to deliver the future opportunities identified above. 5.2.3 Transport Transport is expected to continue to be a growth area. The key from an environmental perspective is to identify the opportunities which either seek to reduce the need for transport, or to increase environmentally friendly (or at least, environmentally neutral) transport. In reducing the need for transport, a key opportunity is likely to be in the use of e-mail, video conferencing and other IT applications which are likely to reduce the rate of growth of business transport demand. To increase environmentally friendly (or neutral) transport use, the focus of growth is likely to be on both Green Transport Schemes (such as commuter car sharing) and increased use of public transport. In the latter category there are a number of opportunities focusing on increasing access, availability and quality of public transport to encourage a switch from car use. Some of these are already happening in the North West while others remain as opportunities. These include: implementation of integrated ticketing schemes such as that sponsored by Blackpool Transport (see case study in Section 2); ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 85 improving local information for users (such as through variable message signing of the type commonly used in London and being introduced on Manchester"s Metrolink system); promoting the development of region-wide travel information, journey planning and booking, perhaps via a website (or at least investigating the potential for such a scheme); allowing operational improvements by removing bottlenecks in public transport networks. 5.3 THE PRIMARY SECTOR This section examines the potential opportunities for expansion of environmental activities in the primary sector, consisting of agriculture, forestry, fisheries and countryside sports. For most of these sectors data to quantify these opportunities is not available, however estimates have been made for the impact of expanding the coverage of organic farming and agri- environment schemes. Whether these are realisable in the medium or the longer term depends largely on policy commitments at the national level to funding this expansion. Table 5.1 Expansion of Organic Farming and Agri-Environment Schemes Sub-sector Jobs Estimated Subsidies Organic farming to 57 000 ha1 570 - 2850 not known Organic farming to 30% of UAA2 2680 - 13 400 not known Agri-environment to 30% of UAA 13,4423 £37.2 million 1 Based on enquiries received by Organic Conversion Information Service 2 "UAA" = Utilised Agricultural Area. Estimate based on target of 30 percent in Parliamentary Bill 3 Based on 1996 study into socio-economic impact of Countryside Stewardship Scheme 5.3.1 Expansion of Organic Farming There is strong and increasing demand in the UK for organic products, as illustrated below, and clearly scope for expansion in the NW. The Organic Conversion Information Service has recently received almost 700 enquiries from the North West region, relating to over 57 000 hectares of land (MAFF, 2000a). However, it is commonly accepted that the potential for expansion of organic farming is constrained by the availability of public funds for transitional support. Current budgets are fully committed, and therefore any significant further expansion of organic farming in the short-term is unlikely. In addition to this, the time required for conversion to certifiable organic production means that this is an opportunity in the medium term. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 86 Figure 5.1 Case Study - The Demand for Organic Products Organic farming has grown in Europe at an annual rate of 25 percent. In the UK, overall demand for organic products is growing at a rate of 40 percent per year, while supply is growing at 20 percent per year. A consequence of this is that 70 percent of organic products consumed within the UK are imported. By 2002, it is estimated that organic food will account for 7 to 8 percent of the total UK food market, with a potential retail value of over £1 billion. A Presentation Bill launched in Parliament in October 1999 set a target of ensuring that 30 percent of UK farmland and 20 percent of UK food is organic by 2010. The demand for organic milk and dairy produce is now growing strongly in the UK and one leading supermarket retailer predicts a ten-fold increase in its sales over the next five years. The price of organic milk currently has a guaranteed 29.5p per litre, representing a premium of 10p per litre over non- organic milk. Although yields per hectare are lower, costs are lower and the price per litre is higher leading to higher margins and a net increase in profitability. Source: DTZ Pieda Consulting, 2000 As well as the opportunities provided by market demand, there are policy commitments at regional level to promote organic farming. Action For Sustainability includes an objective to increase investment and employment in, and development of, organic farming, although targets are still under development. This links in to the Regional Strategy which identifies diversification of agriculture into new market areas as an early priority and a component of the first Action Programme. If the agriculture production was increased to 30 percent of utilised agricultural area or 268 000 hectares, this could create between 2680 and 13 400 extra jobs, based on the regional average of 0.2 - 1 job for every 20 hectares under organic production. Alternatively if funding was available to match the interest shown in enquiries to the Organic Conversion Information Service, relating to 57 000 hectares in the region, this could create between 570 and 2850 jobs. 5.3.2 Expansion of Environmentally Beneficial Agriculture Farmers will remain the principal delivery agents of environmental change in the countryside, and the importance of their role as stewards of rural environmental quality is increasingly recognised by policy-makers at all levels. However, the potential for expansion of environmentally beneficial farming practices is closely tied to public policy imperatives and the availability of government funding for agri-environment schemes, although there is perceived to be a need for raising awareness among farmers to increase the uptake of schemes. The experience of the Bowland Initiative is that there is considerable demand from farmers to participate in agri-environment ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 87 schemes, which has outstripped the resources available to the initiative, clearly showing the potential for expanding such initiatives. Under European Structural Funds, finance is available for agricultural development support. Within the North West region, £28 million was available from the Northern Uplands Objective 5b Programme(1) during 1994- 1999 to support the sustainable economic development of agricultural businesses (MAFF, 2000a). The aim of the Objective 5b Programme was to assist the development of rural areas, and although this did not necessarily have to be through environmentally beneficial measures, some of the projects supported by the programme explicitly aimed to protect or improve the environment. The England Rural Development Plan - North West Region gives figures on the numbers of measures which have been taken under the Objective 5b Programme in relation to the protection and conservation of the environment, shown in the following table. The figures, which relate to the whole of the Northern Uplands area, ie including areas outside the North West region, suggest that the actual outputs have fallen short of expectations, and that there are opportunities available which were not taken up. Objective 5b will be replaced from 2000 onwards by the new Objective 2, which will cover areas of land throughout the North West. Table 5.2 Measures for Protection and Conservation of the Environment Funded Under Northern Uplands Objective 5b Programme (1994-1999) Type of Scheme Agreed Outputs from Actual Outputs Approved Projects Physical Indicators No. of businesses receiving guidance and counselling 313 91 No. of businesses receiving environmental guidance 0 0 and counselling Hectares of land retained or restored in upland 350 0 management Hectares of land protected or conserved 40 000 1454 Hectares of woodland or semi-natural habitat brought 1200 1036 into productive use Kms of semi-derelict walls and hedges improved 3,792 0 Expected impact No. of jobs created 58 7 No. of jobs safeguarded 624 50 No. of collaborative ventures assisted 3 3 No. of environmental plans implemented 71 5 Source: MAFF 2000a In addition, £700 000 was available within the previous Merseyside Objective 1 Programme(2) (1994-1999) for farm-related development (MAFF 2000a). However, this was not explicitly required to be environmentally-beneficial or (1) European Union Structural Funds scheme to promote the development of rural areas (2) European Union Structural Funds Programme to promote regions lagging behind the rest of the EU ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 88 environment-driven development, although the Programme has supported one such project previously, the Landlife Project. There will be opportunities for environmentally beneficial agricultural development under the new Objective 1 and 2 programmes within the region, and/or under the Rural Development Regulation. The likely split between the programmes is unclear at present. Funds were also available under the LEADER II Programme, an EU initiative which aims to support small-scale rural development, though not exclusively environmental. In the North West this shows some discrepancy between allocation, commitment and spend (MAFF 20000a), and this may indicate that there are opportunities for increased take-up under forthcoming LEADER programmes. Table 5.3 Committed Expenditure for LEADER II in the North West Sub-area Total EAGGF Committed Actual Spend allocation Forest of Bowland £88 589 £52 055 £11 390 North Pennines (includes land outside NW £227 153 £176 893 £24 824 region) Cumbria Fells and Yorkshire Dales £228 213 £128 650 £62 391 Total £543 955 £357 598 £98 605 Source: MAFF (2000) The Countryside Stewardship Scheme currently covers 2.3 percent of the agricultural land in the North West. It is possible to produce estimates of the potential number of jobs which could be generated through expansion of the Scheme, based on the CEAS study for the Countryside Commission which looked at the employment impacts of the scheme (CEAS Consultants, University of Reading, 1996). These estimates are set out in the table below. Table 5.4 Potential Changes in Job Numbers Through Expansion of Countryside Stewardship Scheme 5% of UAA 10% of UAA 20% of UAA 30% of UAA No. of hectares 44 638 89 276 178 553 267 829 Direct jobs created 115 230 459 689 Change in indirect jobs -106 -213 -425 -638 related to inputs 110 220 440 661 related to outputs -216 -433 -866 -1298 Total jobs created 9 17 34 51 Estimated commitment £6.2 million £12.4 million £24.8 million £37.2 million Regional Produce and Local Marketing There is increasing interest among consumers in local produce, as shown by the large growth in farmers" markets around the country. Although there is no link with the environmental impacts of the methods by which the food is ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 89 produced, such local purchasing outlets can bring benefits, for example reduction in transport distances and revitalisation of market towns. Studies overseas indicate that shop turnover in towns on market days may be increased by 13 percent. Anecdotal evidence indicates that an important motive for consumers in purchasing local products is to support local producers, alongside issues of quality. An evaluation of the Fellbred Marketing Scheme showed that 76 percent of customers who buy local meat do so to support the local economy. Other reasons included quality (59 percent), animal welfare (31 percent) and to help maintain the Cumbrian landscape (16 percent) (Fellbred, 1996). This suggests that there is a level of consumer awareness which presents an opportunity in both the short and longer term for increasing local purchasing, although it is not possible to quantify the scale of the opportunity. Action For Sustainability contains an objective to increase the use of locally produced goods, food and services, in particular through farmers" markets and other local producer markets, although no targets have yet been set. The development of the Regional Food Strategy may also enhance these opportunities. This is an early priority for the NWDA identified by the Regional Strategy, and will form part of the first Action Programme. 5.3.3 Freshwater Fisheries The Irish government has recognised the economic contribution of salmon and freshwater fisheries, with visiting overseas anglers spending £80m per year, and Irish anglers £20m. It has done this by taking advantage through the Objective 1 Structural Funds Programme to develop a Tourist Angling Measure, spending £17m over 5 years. This was in addition to the £11m spent by the government on the regulation and management of inland fisheries. For salmon and sea trout, the emphasis has been on habitat improvement, while for coarse fisheries the emphasis has been on improved access and facilities (MAFF, 2000b). To provide a comparison, the per capita spend in Ireland on inland fisheries is over £3, while in the UK it is £0.14 (MAFF 2000b). The promotion of angling would provide additional employment and generate additional income in rural and urban areas. Unfortunately, there is a lack of available data to judge the size of the potential. If steps are taken to capitalise on this opportunity, any benefits are likely to be obtained in the medium or longer term. 5.3.4 Countryside Sports There are significant difficulties in estimating the nature and scale of any opportunities for expansion in countryside sports. Not only is there a lack of data at the regional level to indicate the current contribution in terms of employment and income generation, but there are uncertainties over the possible impacts of current and future government policy initiatives, both in terms of direct regulation and in influencing public opinion. For these reasons it has not been possible to reliably identify future opportunities in this sector. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 90 5.3.5 Forestry Creation of Additional Land for Forestry and Woodland Forestry is expected to be a growth sector in the short to medium term. The Government"s England Forestry Strategy was launched in December 1998 and it emphasises forestry for rural development; forestry for recreation access and tourism; forestry for the environment and conservation; and Community Forestry. An increase in tree cover and forestry activity is compatible with the aims of the Regional Economic Strategy as well as Action for Sustainability. Creation of woodland on landfill and brownfield sites is a key opportunity for future growth and community forestry in particular is expected to be a key driver in the forestry sector. Community Forestry is especially important because, provided it can be carried out in a sustainable way, its links with other sectors such as environmental quality, investment, tourism and quality of life offer valuable benefits. Over the coming 35 years, some 10 000 hectares of tree planting is earmarked for the Red Rose Community Forest while for the Mersey Forest a target of 8000 hectares has been set. In the short term, extra funding is being made available for developing the Red Rose and Mersey Community Forests via the Treasury"s Capital Modernisation Fund and a partnership with the Forestry Commission. Some £6 million will be spent in the Region on the creation of 600 hectares of new community woodland in the Mersey Forest and Red Rose Forest areas. Areas selected will be developed as woodland by Forest Enterprise together with the Community Forests and local communities. The aim will be to provide environmental, economic and recreation benefits to the large populations living in and around the area. Short Rotation Coppicing Of relevance to the expected increase in availability of land for tree planting is Short Rotation Coppicing, a technique which capitalises on forestry"s link with renewable energy. Properly administered short rotation coppicing schemes can offer environmental and social benefits as well as energy from a sustainable source. Fast growing trees such as poplar, hazel and willow are planted and cut every one or two years to provide wood which can be used for power generation- such as the developing Border Biofuels plant in Carlisle. There are good examples in the North West where such schemes are being implemented on low quality land - for example using sludge recovered from water treatment. Using sludge (itself a waste product from elsewhere) has the advantage of recycling the sludge itself and supplying the growing trees with valuable nutrients. Recent government legislation requires that the site for coppicing should have a contract with an approved end user (such as a power station), that the site will not damage the environment and that activities will take place in a sustainable way. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 91 Initiatives to Develop Woodland Businesses The Green Business Development Scheme (part ERDF funded) provided grant funding to eight woodlands related businesses including the Manchester Futon Company (making custom built futons in softwoods), Bolton WISE (offering services in landscape, horticulture and forestry), The Furniture Workshop (manufacturing one-off furniture items) and Target Waste (specialising in timber waste for recycling). The initiative has finished but the jobs created and maintained within the businesses which received help show how future funding might also benefit the sector. Substitution of Timber Imports Substitution of timber imports (many from Central and Eastern Europe) for locally grown timber also offers potential for development. A survey completed by Red Rose Community Forest with funding from the Forestry Commission, EU, DETR and others suggests that the size of the North West timber market is some £100 million/annum, of which some 30 percent is for non-construction activities. Much of this activity is outside of the scope of the study, being "non-environmental" in outlook. However the survey (Timber Usage Survey, 2000) indicates a growing interest in sustainability and a willingness on the part of over 80 percent of suppliers, manufacturers and specifiers to use locally grown timber. It is clear from this that a latent demand for over one million cubic metres of timber exists in the Red Rose Forest area alone, which is currently being met from outside of the region. Where appropriate materials can be supplied to small and medium sized enterprises for use in production, capitalising on this latent demand would facilitate reduced transport impacts and ensure that operations could be sourced locally. 5.4 CAPITALISING ON A HIGH QUALITY ENVIRONMENT 5.4.1 Tourism Increased coastal tourism as a result of cleaner bathing waters The NW coastline is 432 km long and has 34 designated bathing water beaches. Tourism spending along the North West coast supports over 62 000 jobs (ENWEB 1998). However, according to the North West Tourist Board, coastal pollution has inhibited tourism activity. Although the situation has improved since 1986 when only 5 beaches met EU bathing water quality standards, compared with 26 out of 37 in 1999, there is still scope for further environmental improvements. North West Water is currently undertaking a £4 billion development programme to renew sewers and improve sewage treatment works in the Region, this includes a £500 million project which aims to enable all 37 designated bathing water beaches to comply with EU standards. Improvements of this type are likely to increase visitors to the coast. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 92 Farm Holidays The North West Tourist Board"s sustainable strategy for tourism envisages that by 2020, in the Lancashire uplands, the growth in farm based tourism will contribute to an overall improvement to farm incomes, with major benefits to the viability of the overall community. Extending the Tourist Season The Lake District National Park attracts an estimated 12 to 14 million visitors each year. Although the peak number of visitors in July and August has reached a plateau, evidence suggests that visitor numbers continue to rise during the rest of the year (Environment Agency, 1999). Extending the tourist season has the effect of enhancing the economic / employment benefits of tourism and spreading these over the year, without increasing the environmental impacts which can occur during the peak season. Urban Tourism Significant scope exists in the North West for further expansion of urban tourism, for example, development of attractions in regenerated urban areas, particularly using canal-side locations - such as the Lowry Centre in Manchester - and woodlands close to urban areas. Enhancing the Sustainability of Tourist Activities The North West Tourist Board has stated that sustainability is at the heart of the new Tourism Strategy for the region: "The need now is for action from local authorities and the tourism industry to examine their own environmental practices and put more efforts into encouraging people to use public transport and try out different destinations to spread the economic benefits of tourism as widely as possible." (SNW 1998). Environmental Good Practice in the Tourism Industry There are opportunities to expand the take-up of environmental good practice in the North West"s tourism sector. This is especially so in the run up to the Commonwealth Games in Manchester in 2002. 5.4.2 Investment Encouraging "clean" investment in the region remains a key goal of development agencies in the region and is highlighted as a target both in Action for Sustainability and the Regional Economic Strategy. Where the environment plays a part in the decision to invest, environmental improvements such as those provided by the regeneration of underused, contaminated or derelict land through planting or landscaping, or by the renovation of derelict sites or buildings can have positive economic and social impacts. The clean up campaign in the Salford Quays area of Manchester is sometimes quoted as an example and the question of whether the area"s waterfront developments would have taken place without the clean up ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 93 activities of the Mersey Basin Campaign and North West Water remains topical. Economic improvements might arise even where relatively small environmental improvement schemes are established, provided they are able to act as catalysts for area improvements which then influence the decision to invest. Even where such improvement schemes are unable to encourage investment, the act of clearing up land or renovating buildings still has an economic impact through increased employment and spending in the area: the precise size and nature of the impact will depend on the multiplier effect of the spending and the degree to which employment and spending "leaks out" of the local economy. Eco-Business Parks Crewe Business Park (see case study in Section 4.2.1), described as "Britain"s first genuine eco-business park" is a joint initiative between Crewe and Nantwich Borough Council and Cheshire County Council. The model offers an example for potential developments elsewhere in the region, merging as it does several of the key themes running through this report: environmental improvements, business growth, job creation and ecological enhancement. It also offers a route towards realising Action for Sustainability"s objective of increasing investment, employment and innovation in clean technologies, as well as its aim to protect and enhance local distinctiveness, wildlife value and the general quality and accessibility of landscapes. The area in which the business park is located was not especially attractive to Hi-Tech or office based businesses before its establishment. But now it is the home of around 1000 jobs, equally distributed between well known organisations such as Air Products, Barclays Bank, MAFF and CIS Insurance, and niche SME"s focusing on (for example) software, consultancy, electronics and environmental engineering. As a spin-off benefit in attracting investors, the park was able to capitalise on free public relations in the form of articles and features which made the sites easier to market, thus generating new jobs for local people. As well as business premises, the park provides a high quality environment offering open space, visual amenities and recreational benefits to local people and employees, and improvements in local habitats for flora and fauna. Community involvement is encouraged through school groups, guided walks and local volunteer groups, while environmental improvements and habitat nurturing is funded by service charges levied on tenants. Initiatives and improvements are administered by the Business Park together with a countryside ranger from one of the Local Authorities which own the site. For the future, some 140 000 square feet of space has outline planning consent, with an additional 18 acres potentially available. The project therefore holds future development opportunities within its own boundaries as well as providing an example for similar projects elsewhere. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 94 5.4.3 Quality of Life Benefits for Residents Many opportunities to increase quality of life benefits for residents exist in the North West. The extent to which these opportunities can be realised largely depends on the degree to which resources are prioritised towards improving the quality of life. What is known is that because of the overarching impact of the environment on lifestyle issues, there are many links between quality of life and the other sectors which are discussed in this report (for example environmental technologies, primary sector, forestry and investment). In the opportunities for quality of life improvements which are presented below these links should be clear. Establishing Open Spaces Under its "Protect" action plan Action for Sustainability identifies the creation of "environmentally managed green spaces" as a target for the North West. The document also emphasises the need for people in the North West to have "accessibility to natural green space and wildlife sites". The aim is that there should be a natural green space within 300 metres of every home, with larger sites to be established at specified distances further away from each home. The Millennium Greens initiative (case study, Section 4) is a successful project which provides increased accessibility to open spaces. Fifty one projects are ongoing in the North West and enthusiasm for the scheme is such that though the initiative stopped accepting applications in July 1998, the organisers continue to receive constant enquiries. There is a bank of sites in reserve and new opportunities constantly arise: with additional funding (from interested private, public or joint venture parties) a doubling in the number of projects over the next five years is likely to be within reach. Creating Community Woodlands This opportunity to improve quality of life benefits is the social manifestation of the opportunities to increase woodland and forestry activities which are described in Section 5.3.5 above . In this respect the links between these two opportunities are clear. Within the North West underused land is a major resource. Initial surveys have shown that there are "over 4000 hectares of disturbed, derelict and underused land in the Mersey Forest alone" (Mersey Forest et al, 1999). More than 1200 hectares of this land are former landfill sites, now closed and in many cases a local eyesore. At the very least the opportunity to use some of this land for community woodlands could improve the image of an area and create valuable recreational, environmental and economic resources close to communities. The North West Development Agency is the main funding body for the restoration of damaged and underused land in the North West and is ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 95 supportive of restoration to community woodland where appropriate. In the North West, the opportunity to improve poor quality land has been strongly supported by private sector organisations such as the Co-operative Bank and North West Water. Addressing the Issue of Crime Evidence presented in Table 4.2 (see Section 4) illustrates that in national surveys the quality of life issue consistently raised by respondents relates to the question of violent crime. North West survey evidence presented in the same table shows that in this region non-violent crime is the biggest single quality of life concern cited by respondents, with violent crime being the second biggest issue. With nearly seven out of ten people ranking crime as "very important" it is an issue that in quality of life terms should not be ignored. Fear of crime exceeds actual crime indicating that much of the worry identified by respondents is based on media coverage rather than direct experience. Warrington BC"s agenda 21 work aims to address the issue of negative perceptions based on media coverage which appears to emphasise violent crime and relegate success stories and good news to small sections of newspapers. Warrington"s proposed actions include encouraging the local media to adopt a responsible approach and promoting crime prevention initiatives through the media. Such an approach represents an opportunity not just for Warrington but also for the region as a whole. Employers encouraging quality of life improvements Many of the region"s larger responsible employers are increasingly playing important roles in helping set and achieve sustainability targets and implement quality of life initiatives for their staff. Lack of physical activity is one of the greatest risk factors for coronary heart disease and there are considerable opportunities for businesses to encourage regular physical activity (and hence general health levels) among staff by encouraging cycling and walking to work (eg by providing showers, lockers or improving pedestrian accessibility to sites). A spin off benefit for the local community is a reduction in traffic, congestion and pollution. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 96 Figure 5.2 Case Study - Unilever Quality of Life Initiatives Unilever Research have established a Green Transport Plan consisting of a range of initiatives to meet mobility requirements in a sustainable and efficient way. The plan supports and reinforces other health and welfare initiatives for the 1,500 staff based at Unilever"s plant in Port Sunlight on the Wirral. These include Healthy Lifestyles, Travellers" Health, Health into Retirement and Stress Management. The company"s proactive Healthy Lifestyles initiative is run by the Occupational Health team and emphasises health and physical activity rather than focusing on illness once it has developed. The scheme began with a men"s health programme focusing on testicular and prostrate cancer which attracted the involvement of 78 percent of male staff and continued with an equally successful well women"s screening programme (jointly run with the Wirral Breast Centre) to raise awareness of breast cancer. All employees are now seen for a general health "MOT" at least once every two years on a rolling programme. Similar schemes are in place to raise awareness of stress and mental health, assisted by the involvement of an in-house counsellor. Unilever Research acknowledges the need for employees to maintain an appropriate "work life" balance and flexible working programmes have been introduced to facilitate working from home and more convenient working hours to suit individuals" child care and family needs. Information on local care for young children and elderly people is provided to help staff meet caring needs and legal support, training and counselling is provided to employees through the Employee Assistance Programme. The company"s commitments in respect of staff welfare are rewarded by improved morale, higher productivity and better professional performance, less sickness, lower rates of absenteeism and reduced numbers of staff retiring early. Source: Personal communications, Unilever Research 5.5 LINKS BETWEEN OPPORTUNITIES FOR FUTURE SECTOR DEVELOPMENT The three sections above presented a summary of the greatest opportunities which our research suggests exist in each of the main three categories addressed in this report: the Environment Sector, the Primary Sector and Capitalising on a High Quality Environment. Throughout the report, the environmental economy as a whole has been broken down into these three main areas in order to facilitate convenient discussion and to provide a basic structure. Yet categorisation should not obscure the fact that there are close links not just between these three main sectors but also between their constituent parts. Because of these close links, the benefits realised from improvements in one area have knock-on effects elsewhere. The value of improvements is underestimated unless these knock- on effects are evaluated. For example, in the Environment Sector, contaminated land remediation is identified as a likely growth area. The realisation of more contaminated land remediation will have direct economic impacts through the creation of jobs in land remediation. But there will also be positive impacts elsewhere in the Environment Sector (for example, on environmental consultancy, environmental monitoring and conservation) and in the primary sector, (eg. through the creation of additional land for regional parks, woodland and forestry). The result of the land remediation would also feed through to the Capitalising on a High Quality Environment grouping, perhaps by encouraging investment in the area, visits by day trippers or increasing quality of life by positive impacts on health, crime or visual intrusion. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 97 Moreover, the links are two way - land remediation (or creation of additional land for regional parks) may itself be driven by a desire to increase tourism or investment, but tourism or investment might equally drive land remediation. Similar links can be followed through for most of the other areas addressed in the study. Waste minimisation and recycling encourage cheaper production and favourable economic impacts through lower costs, but there may also be positive effects on the primary sector (eg. through composting or aggregates recycling) and on the high quality environment sector (through encouraging good practice, enhancing sustainable tourism and/or encouraging "clean" investment and jobs, potentially in underprivileged areas). Turning to another example, that of marine pollution control activities, realisation of forecast growth here would improve coastal quality and have favourable impacts on tourism (both in the high quality environment sector), encourage fish populations (primary sector) stimulate environmental monitoring, instrumentation and consultancy, and encourage biodiversity (environment sector). These examples indicate the close links between many items discussed in the report and serve to remind the reader that impacts in one area are likely to be reflected too in other sectors and sub-sectors. Because much of the benefit of positive change or growth is transmitted on through links and mechanisms to different parts of the region"s environment or socio-economic system, by the time the cycle of knock on impacts has been completed the initial benefit is likely to have been significantly amplified. 5.6 CONCLUSIONS The North West"s environment sector has experienced rapid development in recent years. The scale of some of the region"s environmental issues, especially those inherited from its industrial legacy (such as contaminated or underused land) continues to be significant. This means that the scope for growth in some sub-sectors of the environmental economy is large indeed. Also, in terms of developing the knowledge and technological tools to tackle the problems, the North West is well placed to build on its existing commercial and academic resources. In other sub-sectors (for example, agri- environment) growth and opportunities are more difficult to pinpoint - either because previous performance has been disappointing, or because they are dependent to a larger degree on present and future policy initiatives which have yet to crystallise. Selecting some of the sub-sectors discussed in this chapter for special attention, we would highlight the following opportunities as being of particular future interest. For the Environment Sector, key opportunities emerge in: waste management, an area of growing environmental and political interest where not only simple practicalities but also strict policy ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 98 interventions suggest that a tripling of the sector could be in order over the next ten years; contaminated/derelict land remediation, driven by the North West"s urgent need to deal with its own stock of land, UK government targets and the 1995 Environment Act, together suggesting potentially rapid growth, much of which might be realised in the not for profit sector as well as through the work of public and private sector agencies; renewable energy and energy management, partly driven by global warming, emissions and climate change issues, but also by regional targets defined in (for example) the Regional Economic Strategy and Action for Sustainability, suggests potential growth in this joint sub-sector of up to one third over the next decade; and conservation, already a key growth area and expected to further expand, drawing on volunteer and paid work as well as public sector funding. This sub-sector is also of special interest because of the opportunities which exist within it to capitalise on private sector involvement, and because of its links with investment, tourism and quality of life (see below). Turning to the primary sector, there are clear growth opportunities in some areas but for those sub-sectors of this category which are dependent on public sector funding, the degree to which these opportunities can be realised appears to remain a matter of conjecture. We note however: the organic farming and regional produce sector, offers exciting prospects for demand driven future growth. If realised, it could see the hectarage of land farmed within this sector rise significantly from around 0.4 percent of agricultural land to up to 30 percent, generating over 10,000 new jobs; and the forestry sector, the growth of which has the potential to provide significant public benefits and where we highlight the provision of woodland and forest areas as an opportunity which is now being seized. With its links to quality of life and investment this opportunity offers special advantages for the region. Planned growth in the region"s two community forests alone is expected to increase the North West"s forestry area by 10 percent. Examining "Capitalising on a High Quality Environment", we identify: tourism, as an area of significant growth. Particular opportunities might be realised in coastal tourism, environmental tourism (in enhancing sustainability as well as tourism to environmentally attractive areas) and in extending the tourist season; the links between investment and the environment as providing many positive opportunities to improve the environment and address poor ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 99 perceptions of image. This is shared with the forestry, contaminated land and conservation sub-sectors (see above). However, unique to the investment topic, the idea of the "eco-business park" as pioneered in Crewe offers a model for future development which might also be compatible with regional targets to attract clean investment and increase biodiversity; and the principal quality of life related environmental opportunities as being related to the establishment of open spaces to encourage health benefits and improved recreation facilities in urban areas. This chapter of the report has focused on a wide range of potential opportunities for specific sub-sectors of the environmental economy in the North West, and though the outlook for different parts of the sector varies, the overall view for future growth and development is very good. The environment sector as a whole has become one of the region"s most dynamic sectors and is poised for further growth, driven by current international, national and regional policies and public opinion. With these drivers themselves informed by a continued interest in "sustainability" as public awareness of environmental issues grows, increased inputs from the private and voluntary sectors will ensure that the environmental economy will find itself pushing against an open door. 5.7 FURTHER WORK This report has investigated the size and nature of the environmental economy of the North West. During the course of our work our investigations have suggested that benefits might be derived from undertaking the following additional work on links between the environment, the economy and quality of life: it is recommended that more specific attention be given to the impact of tourism and the part played by the environment in attracting tourists to the North West. In particular we believe that estimates of the impact of the environment on tourism could be made more robust if additional primary research into the motivation for tourism in the region were undertaken; in undertaking our work it was apparent that further exploration of the impact of the urban environment on the regional economy would be an area of research worthy of further study; we have uncovered very little evidence of existing research, either qualitative or quantitative, which seeks to identify the relationship between the decision to invest and the level of environmental quality. Further study on this topic would contribute to overall understanding of the links between the economy and the environment in which it operates. ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 100 CONTENTS 1 INTRODUCTION 1 1.1 STUDY AIMS 2 1.2 STRUCTURE OF THE REPORT 2 1.3 FRAMEWORK FOR ESTABLISHING THE STUDY SCOPE 3 1.4 PUTTING THIS REPORT TO USE 10 2 THE ENVIRONMENT SECTOR 12 2.1 ENVIRONMENTAL GOODS AND SERVICES SECTOR 13 2.2 WASTE MANAGEMENT AND RECYCLING 15 2.3 RENEWABLE ENERGY & ENERGY MANAGEMENT 16 2.4 WATER & WASTEWATER TREATMENT INDUSTRY 17 2.5 ENVIRONMENTAL MANAGEMENT IN INDUSTRY 18 2.6 ACADEMIC INSTITUTIONS 19 2.7 PUBLIC SECTOR ENVIRONMENTAL 'SERVICES' 20 2.8 NOT FOR PROFIT ORGANISATIONS 21 2.9 TRANSPORT 22 2.10 THE NATURAL ENVIRONMENT 25 3 THE PRIMARY SECTOR 30 3.1 AGRICULTURE 31 3.2 FISHERIES 42 3.3 COUNTRYSIDE SPORTS 44 3.4 FORESTRY 46 4 CAPITALISING ON A HIGH QUALITY ENVIRONMENT 52 4.1 TOURISM 52 4.2 INVESTMENT 61 4.3 QUALITY OF LIFE BENEFITS FOR RESIDENTS 67 5 OPPORTUNITIES FOR SECTOR GROWTH 76 5.1 INTRODUCTION 76 5.2 THE ENVIRONMENT SECTOR 76 5.3 THE PRIMARY SECTOR 86 5.4 CAPITALISING ON A HIGH QUALITY ENVIRONMENT 92 5.5 LINKS BETWEEN OPPORTUNITIES FOR FUTURE SECTOR DEVELOPMENT 97 5.6 CONCLUSIONS 98 5.7 FURTHER WORK 100 ANNEX A GLOSSARY ANNEX B BIBLIOGRAPHY ANNEX C LIST OF INDIVIDUALS CONSULTED AND STEERING GROUP MEMBERS
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