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Leading business lobby calls for Liverpool Vision and The Mersey Partnership to merge
Liverpool Daily Post | 28th January 2011

A LEADING business lobby group last night called for the merger of Liverpool’s two main economic and tourism agencies.

Frank McKenna, chairman of Downtown Liverpool in Business, said in the current financial environment it no longer made sense to have both Liverpool Vision and The Mersey Partnership (TMP) promoting the region.

His intervention has re- ignited the debate about the future of the two organisations.

Last night, the former chief executive of the Northwest Development Agency, Steve Broomhead, said it was now right to have the debate.

And David Wade-Smith, business advisor to the city council’s cabinet, said closer working was needed.

Vision concentrates solely on Liverpool as the city’s economic development company, while TMP currently focuses on tourism and inward investment for the entire Merseyside region.

Liverpool council is currently in the process of making the previously independent Vision into a council department, while TMP is remoulding itself in response to a fall in public sector funding.

Mr McKenna said: “After the spectacular progress of the last few years, we cannot go back to the grim existence as a marginal city. It’s not just that there is no room for complacency.”

He said both private businesses and public agencies were facing up to the huge challenge of years of austerity ahead, and a united front was needed.

“This is a time for the public and private sectors to pool all available capacities and resources. A good starting point must be to make the best of both Liverpool Vision and TMP.

“Business needs them to be better together – bringing together their distinct areas of expertise and using the combined resources to full effect to serve business and support private sector investment.

“Having two cathedrals and three football teams adds to the city region’s vibrancy and diversity. Having two economic development agencies is no longer a viable option.”

TMP is currently negotiating with local authorities about their level of support for the organisation which last year amounted to a combined £450,000.

Of its £7m income last year, just over £2.3m came from membership subscription, commercial activities and sponsorship.

Last summer, Lorraine Rogers, chief executive of TMP, dismissed talk of a merger with Vision.

At the time, she said: “Comments suggesting that we’re going to merge or change in a dramatic way are completely inaccurate because the only way The Mersey Partnership could change significantly is, firstly, if the board wanted it to change and, secondly, there would have to be a members vote. There’s a perception that it would be a public sector decision. It would be a case of hundreds of companies voting and that’s the only way we would change in a significant way.”

Last night, she declined to discuss any possible merger, but said TMP has clear plans to address the fall in public funding.

Last year, it received £3.8m from public agencies, and £2.3m from subscriptions and sponsorship.

“Everyone is aware that public sector bodies are under massive pressure to make huge cuts.

“We’ve been under no illusions for some time that the level of their contributions to TMP couldn’t be maintained and have been growing commercial income and private sector contributions to seek to compensate for the reduction in income from the public sector.”

She said TMP’s focus is on the four areas it believes could have a transformational effect on the city region’s economy: low carbon, knowledge economy, superport and the visitor economy.

“Private sector contributions to TMP are growing – higher this year than last – and this trend away from public sector funding is inevitable for many organisations. We have clear plans to address it.”

Max Steinberg, chief executive of Liverpool Vision, said his organisation was committed to creating the right environment for investment.

“As the extent of the cuts in the public sector become more apparent, it is imperative that we all, Liverpool Vision included, remain responsive to the needs of the city region economy, as well as listening to the views of the private sector, who will, after all, be the drivers of economic growth for the foreseeable future.”

Mr Broomhead, whose former employer handed millions to both TMP and Vision over many years, said it was right to be having the debate about their future.

“We are at the stage now where all the economic development architecture of the past needs to be reviewed.”

Mr Wade-Smith added: “There is a fantastic opportunity now to revisit subregional structures.

“Now is the time to move beyond partnership and work as one.

“I think we need to think quickly and urgently and work more effectively more efficiently and closer together than we have in recent history.”