By Matthew Legg and Julian Whittle

Last updated at 08:24, Friday, 02 January 2009

The new year has prompted fresh hope that Cumbria can emerge as a powerful economic force after 2009’s predicted recession – with at least one critical project poised to clear a crucial hurdle within weeks.

Top politicians and civil servants remain optimistic about the long-term future as the county prepares for one of the most important periods in its modern history.

A host of key infrastructure projects could reach significant milestones during 2009, including the development of Carlisle Airport, a new headquarters for the University of Cumbria and Carlisle Renaissance.

And there are hopes that finance for another – Carlisle’s long-awaited western bypass – will be in place by the end of next month.

Construction of the five-mile Carlisle Northern Development Route is due to start this year but is threatened by the credit crunch.

Franco-Belgian bank Dexia had been lined up to provide up to £142.8m under the Government’s private finance initiative (PFI).

But the bank narrowly escaped collapse in the autumn. It looks set to be broken up and is no longer in a position to lend the money.

Connect CNDR, the Balfour Beatty company that will build the road, has started talks with a dozen banks with a view to one or more of them replacing Dexia.

A report to Cumbria County Council’s cabinet, which meets in Barrow on Tuesday, is optimistic that those talks will succeed.

The report says: “Connect CNDR is undertaking a quasi-funding competition in an effort to secure two or more potential lenders for the project.

“If sufficient interest can be generated to put together a ‘club’ of banks, and assuming funding terms are acceptable to the Department of Transport/Treasury, it should be possible to complete all due diligence processes and final approvals to enable a contract to be signed by the end of February.

“This is viewed as a challenging timescale and remains subject to confirmation from banks that the timescale is deliverable.

“There is also a risk that detailed contract issues could be reopened, which could easily extend the timescale.”

The CNDR will link the A595 at Newby West with Kingmoor Park and M6 junction 44 at Kingstown. It is due to open in 2011.

The council forecasts congestion in Carlisle will ease as cross-city traffic switches to the new route.

The road was recently named as a top priority by the Joint Economic Commission for the North West, an umbrella group for business, local authorities and other public-sector organisations.

And the Government recently stepped in with a £4.2m advance to allow preparatory works to continue while talks about financing the road take place.

The PFI contract covers its construction and maintenance for 30 years, along with maintenance of 93 miles of the A7, A6071, A689, A594, A595 and A596 in north Cumbria.

Others schemes which could make important progress include Carlisle’s new academy schools, Penrith New Squares and the Energy Coast plan for west Cumbria.

Ambitious plans for Carlisle’s Kingmoor Park industrial estate, including a hotel, restaurant and shops also remain.

Many of the projects have been earmarked for Government cash to kickstart them through the predicted recession and, if all of them reach fruition, Cumbria will be in its strongest state ever to compete with the traditional northern economic powerhouses of Manchester, Merseyside and Newcastle.

Carlisle MP Eric Martlew said: “We would be wrong to think 2009 is going to be anything but a difficult year. But because of the amount of public works going on, there are real opportunities for Carlisle.

“We’re going to have two new academies being built, a multi-million pound extension to Carlisle College, £20m spent on Trinity School, a headquarters for the university and the CNDR.

“My concern though is we are coming up to the fourth anniversary of the floods and nothing concrete has happened with Carlisle Renaissance.

“We need the city council to stop consulting and take decisions on things like the Lonsdale and the Post Office on Warwick Road.”

“The time for consulting has ended and its time now for action.”

Carlisle City Council leader Mike Mitchelson said it was vital the chances for progress thrown up in 2009 were taken.

He added: “We’ve got to make sure we are in a position to take opportunities when they arise. In the short term we will be caught up in what is a national economic problem and more jobs are likely to go with national companies in Carlisle, but we all have to work together: councils, the regeneration agencies, the Carlisle Renaissance board etc, to ensure we move forward. It will mean hard work but the rewards are worth working for.

“Despite the recession, there is already big investment in the university, the airport, the CNDR looks likely to go ahead and we’ve got an economic strategy we wish to work to.

“We have to work on enhancing the retail core in Carlisle city centre, there’s going to be a lot of work on the historic quarter which will help attract tourism.”

Roger Liddle, chairman of regeneration agency Cumbria Vision, has warned councils must put aside their differences if Cumbria is to fully benefit.

He said: “We should forget about arguing where things will go and get on with doing them while the money is there.

“This could be an opportunity that does not come again for many years.”

Viv Dodd, the former chief executive of Cumbria Chamber of Commerce and now director of Cumbria Business 4 Business, called on councils to make brave decisions to exploit the imminent opportunities.

He said: “In any economic crisis, and this is as bad as most people can remember, there will always be winners.

“The university will be bringing untold benefits to the city and county and surely its proposed headquarters on the Viaduct [in Carlisle] will be happening soon.

“The academies are starting to take shape, all of which should bring a much-needed improvement to the education of our young people, providing a major boost to business and the chance of retaining some of the best young brains in the city and attracting better paid jobs and new business to the city.”

Speaking in early December, Cumbria’s top civil servant, Steven Broomhead, chief executive of the Northwest Regional Development Agency said the county was uniquely well equipped to survive the recession.

First published at 05:17, Friday, 02 January 2009
Published by http://www.cumberlandnews.co.uk