Agenda item

The report was noted.

Peter Austin Business Engagement Manager updated members on the Quarterly Portfolio monitoring Q2 24/25 as included in the report pack.

 

Members were advised that one of the most important things the committee should be aware of is ‘risks’ and ‘issues’.

 

Officers reminded members that concerns about slippage have been raised in past years. They explained that slippage occurs in two ways: physical slippage, which is the actual delivery of projects, and in-year financial slippage.

 

Officers advised that they took the decision prior to the last joint committee to move these from being risks to being issues because they are affecting the portfolio delivery.

 

Members were informed that this elevates the importance of slippages. Officers are currently preparing a slippage report for the joint committee and scrutiny committee, examining causes, effects, and possible mitigations to expedite projects.

 

Members were given the following highlights of the report.

•         The Bay Technology Centre is currently sitting at over 50% occupancy.

•         SWITCH is progressing and is also awaiting a decision by the transition board for extra funding through Tata.

•         Pentre Awel is almost complete and is due to open during this quarter. Officers explained that the dry and wet leisure facilities will open prior to the health elements of it and that is because of the amount of time it will take the health boards to fit out their areas.

•         Members were advised that the digital infrastructure project is making excellent progress across all its three delivery arms.

•         Swansea waterfront will see 71/72 Kingsway building opening soon and officers noted that it is already making a significant impact on the nightscape of Swansea. A pre-opening event has happened, and the building will be open in quarter two this year.

•         The Arena hotel negotiations are progressing well and officers are positive.

•         The Innovate Innovation Matrix with Trinity St David opened during the summer and is over 50% occupied with marketing for the existing space ongoing.

•         Officers also advised that the innovation precinct is progressing subject to a review with the partners due to several reasons.

•         Yr Egin Stage 1 is fully occupied and is progressing well and stage 2 is, is currently being reassessed by the delivery partners, because of a change in what the creative sector might require after the pandemic.

•         Homes as power stations is progressing well but has experienced some slippage, which is down to the delivery partners which are primarily either private or public sector housing associations. HAPS has 2 demo houses up and running which show how effective the HAPS technology can be.

•         The Pembroke Dock Marine project now has all the physical infrastructure works complete including the major construction components within the port and the hangar annexes.

•         The Campuses project is making good progress with the Sketty Lane development procured and they have appointed a contractor for  design and build. This is going to start with the advanced design element. They also have had a successful Vodafone bid working with the Digital Infrastructure project as well as part of that development.

 

In relation to portfolio objectives members were concerned about the way in which the investment is going. Members noted that officers are looking at the definitions of investment and asked if that definition was clear.

 

Members expressed concern that job creation timelines in the report might not align with the front-loaded projects, potentially leaving posts unfilled for up to 15 years. They asked if officers expect universities to supply the needed workforce.

 

Officers clarified that the description focus is on the number of jobs created, not necessarily the number of people. These jobs can be directly or indirectly created across the portfolio. The 9,000 jobs were never expected to be directly created by the projects themselves but are outcomes of the projects' operations.

 

Officers cited Swansea Arena as an example, noting that the new jobs created there are significant. They also mentioned that the expansion of smaller businesses in the Copper Bay Area, benefiting from the arena, counts as indirect job creation.

 

Officers noted a similar situation in Carmarthenshire with S4C moving to Yr Egin. While half of the staff were relocated from Cardiff the rest were hired locally. Members were informed that S4C's move created jobs, both directly and indirectly, through the expansion of smaller supply chain businesses and the creative sector.

 

Officers are confident that 9,000 jobs will be created, but assessing the number of people employed is a different matter.

 

Members were informed that the opening of the Kingsway and the arrival of tenants will create jobs. Some tenants will bring their own staff, while others will hire locally, contributing to job creation.

 

Members welcomed officers' confidence in reaching 9,000 jobs, noting the urgent need. However, they were sceptical, pointing out that Swansea Arena, which cost over £40 million to build, currently employs only 26 full-time staff. They felt this number is low given the investment.

 

Members felt that jobs that go to 71/72 the Kingsway will down to displacement from other places because firms that are in the area are going to move in there.

 

Members felt that in Llanelli the current leisure centre will close, and the staff will be moving over to the new one in Pentre Awel so it won’t necessarily create additional jobs.

 

Members felt that it is important that officers have the confidence in job creation because members are asked by the public where the jobs will be coming from the public investment put in and they can give the public that reassurance.

 

Members noted that there is normally a benefits realisation register as part of the report, and they were disappointed that it wasn’t included as it gives them a quick overview of the jobs that have been created and the investment that's come in that particular quarter.

 

Members noted that on Page 177 it says benefits realisation and increasing jobs, but it isn’t the same as the previous iterations.

The democratic services officer advised that he would check on this omission and see if that information can be provided or check if that information can be re-included in reports in the future.

 

The report was noted.