Nicholas Craig column

Apr 28 2006 By Nicholas Craig, The Journal

What a difference a year makes. Newcastle has bombed from being the third best business location in 2005 to being Britain's worst major city for commerce, according to a survey by Omis Research.

It says that local companies are particularly concerned about `deteriorating quality staff' and fewer skills in the city, which has in turn put pressure on wage levels. Transport problems, particularly for staff coming to and from work, are also a drawback.

We are inundated with statistics year round, many of them poorly researched and of little value, but the Omis study is a major, independent work. Its findings deserve to be addressed.

If you look around the city, however, the impressive level of recent investment seems to contradict the results. High quality developments are being built and snapped up by eager occupiers. Demand for offices continues to outstrip supply, and national retailers are clamouring to be part of the city centre's shopping honeypot. The North-East Chamber of Commerce states that local manufacturing companies enjoyed their best three-month period for six years at the start of 2006.

It is difficult to square the obvious growth and activity of Newcastle with the results of this survey. If you glance through the job opportunities in nearby Leeds, however, and compare them to the numbers and quality of posts on offer throughout the North-East, Leeds beats us hands down.

The quantity and quality of skilled, well-paid jobs available in Tyne and Wear is tiny compared to those available in most other major UK cities.

Therein lies a major problem. Local employers complain of dwindling skills, but lack of choice and career opportunities are driving away the highly trained staff we need to keep us pushing to the top of the league for business locations.

We want significant public and private sector funding to create real change in the potential of the city to attract new companies and boost job numbers.

Hard facts, rather than perceived image, have altered the city's fortunes in the Omis survey this year.

We have to keep and nurture our skilled people, continue campaigning for better roads and public transport and succeed in attracting big name companies to operate from the North-East to make a difference next year - and long-term.