Edinburgh 'needs £600m boost' to lead fight against downturn

ABOUT £600 million of new investment is needed over the next three years to help Edinburgh withstand the economic downturn, according to a new report.

Council officials have delivered their most serious warnings yet about the potential impact of the financial crisis on the capital, stressing that urgent action is needed to tackle a host of previously "unimaginable" challenges.

Princes Street, the Waterfront, west Edinburgh and the Little France area will be at the centre of global promotional efforts aimed at staving off what the council believes could be years of "terminal decline".

Major retail developments, hotels, conference centres, visitor attractions, sporting and cultural events, company headquarters and scientific research facilities are all to be targeted as potential major investments.

The three-year strategy, to which the Scottish Government will be asked to sign up, has been revealed weeks after the council admitted that Edinburgh would suffer "significant repercussions" if the takeover of HBOS goes ahead because of its reliance on the financial sector.

Greg Ward, the new head of economic development, warned councillors that significant new resources would have to be diverted into efforts to help the capital combat the credit crunch.

He said: "The world, and Edinburgh's place in it, have changed dramatically. In our own planning, a worst-case scenario included the loss of one or more company headquarters.

"Such an event was thought to be a tipping point into severe economic decline. That's no longer just a planning scenario – it's a real possibility."

Mr Ward said the council had to make "very tough choices" about how it allocated its resources.

The Scotsman understands that the council hopes to earmark at least £5 million to go towards combating the credit crunch. Officials are drawing up plans to ring-fence part of the council's budget to ensure it can "hit the ground running" with its plan, which aims to offset the slump in the property market, triggered by a reduction in lending between banks.

It is hoped extra funding promised by the Scottish Government to reflect Edinburgh's capital city status can be used to offset the impact on the authority's own budget limitations. The council expects to find out in days how much of its bid for an extra £33 million a year has been accepted by the finance secretary, John Swinney.

Much of the efforts will focus on a new marketing body, independent of VisitScotland, that is expected to be up and running early next year.

Advertising campaigns and promotional drives are already being planned, which it is hoped will help the struggling retailers to cope with the downturn, offset the impact of tramworks expected to take place throughout 2009, and boost tourism spending by 15 per cent by 2012.

Tom Buchanan, the council's convener of economic development, said: "It's already clear that Edinburgh is showing a degree of resilience to the economic downturn that is perhaps less evident elsewhere.

"This supports our contention that Edinburgh needs to take the lead in counter-acting the effects of the credit crunch and in continuing to attract investment both now and during the upturn."

Myles White, a fund manager at Henderson Global Investors, the firm planning an £850 million redevelopment of the St James shopping centre, said: "We believe Edinburgh has excellent future development opportunities. We are committed to the redevelopment of St James to deliver a world-class mixed-use quarter that will significantly improve Edinburgh's retail offering.

"It will create an estimated 7,000 jobs during its construction, planned to start in 2010, with 3,000 to 4,000 permanent and part-time positions on completion, and generate an additional £20 million tourism spending within Edinburgh city centre."

Capital gains: the six key targets

These are the six key targets in Edinburgh's regeneration bid.

1. Attract £500 million of new private-sector investment in the capital's physical regeneration. The waterfront and west Edinburgh, particularly in and around Edinburgh Airport, are seen as the most attractive areas for large-scale investment. Opportunities will also be promoted in Princes Street.

2. Attract £100 million of new commercial investment. It is hoped there will still be huge demand from hotel operators, retailers and office builders for sites across the city. Among the major developments coming to fruition are the St James quarter and Caltongate.

3. Increase tourism spending by 15 per cent by 2012: By the spring, Edinburgh is to have its own marketing body which will run campaigns aimed at attracting tourists to the city.

4. Boost Edinburgh's independent shopping centres. Extra resources will be ploughed into areas such as the West End, Grassmarket and Leith to help them cope with tramworks and draw up plans for their own business improvement districts.

5. Deepen Edinburgh's cultural offer. It is hoped quiet months, such as March-May and September-October, can be filled with major sporting fixtures, cultural events and new festivals.

6. Improve transport links. Priorities are securing an improved Edinburgh-Glasgow rail link, ensuring that extra tram routes go ahead and encouraging Edinburgh Airport's expansion.

Protests as new name for Leith development 'fails to respect the area's traditions'

DEVELOPERS masterminding the multi-billion pound transformation of Leith's docklands have come under fire after unveiling "Edinburgh Harbour" as the new name for the heart of the development

Business leaders, councillors and community groups say Leith's history and heritage as a trading port has been snubbed in the new "brand" image for the area.

Forth Ports, the company behind the docks transformation, has spent years drawing up the plans for the central area around the existing Ocean Terminal shopping and leisure centre.

The company claims to have consulted dozens of groups over its vision for the area, but is understood to have rejected protests that the new name fails to respect the area's traditions.

Edinburgh Harbour is planned to become home to a new marina, a 26-storey hotel, a new commercial district between Ocean Terminal and the Scottish Government HQ at Victoria Quay, 1,800 new homes and waterfront promenades.

More than 15,000 new homes are envisaged across the entire docklands, along with schools, community centres, parks, cafes, bars and restaurants.

Edinburgh Harbour is to be the first phase of a 30-year transformation, with the new marina expected to become home to a cruise liner terminal, a tram terminus and a new home for the Royal Yacht Britannia.

Sir Tom Farmer, the Leith-born entrepreneur and Kwik-Fit founder yesterday led criticism of the new name.

"I'm amazed that they have chosen this name," he said.

"Leith is the oldest port in Scotland and has a great name all over the world.

"It's incredible that they've chosen to ignore this and I would hope the people of Leith would make representations to Forth Ports for a rethink."

Mary Moriarty, the landlady of the Port O'Leith pub and one of the organisers of Leith Festival, said: "I'm not impressed at all. Leith just seems to get forgotten about when these ideas being discussed.

"A lot of people have told Forth Ports they don't want this name used but they just seem adamant about it."

Roland Reid, secretary of Leith Central Community Council, one of the groups involved in talks with Forth Ports about the new name, said:

"Leith has got such a wonderful history and heritage and it's a real shame they've not chosen a name to reflect it."

A spokesman for Forth Ports said: "The naming of Edinburgh Harbour was done in wide consultation with a number of organisations and individuals, including community groups, who felt the development should reflect the wider city as the regeneration of Leith Docks has an impact on the whole of Edinburgh."