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THE EFFECT OF MAXIMUM CAR PARKING STANDARDS INCLUDING INWARD INVESTMENT IMPLICATIONS
5 INWARD INVESTMENT
5.1 INTRODUCTION
5.1.1 This section considers the inward investment attitudes and viewpoints encountered during this study. As set out in the methodology a number of approaches were taken to establish inward investor views including discussions with Locate in Scotland (Scotland Development International), enterprise companies and approaches to inward investors (both recently developed and prospective). It will also consider past experience from the authors' previous work with inward investors.
5.2 INWARD INVESTMENT
5.2.1 Scotland has developed an established reputation as a location for attracting developments and investment from outwith the country. This fact has been widely recognised, and capitalised upon by the Scottish Executive and its predecessors over the past 30 years through specific targeting of multinational organisations in a bid to attract new employment opportunities to Scotland.
5.2.2 Large sectors of the Scottish economy have developed through this process and the efforts of organisations such as Locate in Scotland, (now Scottish Development International), have been hailed as an outstanding success in bringing to Scotland, and nurturing further expansion of, organisations such as Motorola, NEC, NCR, Quintiles and Morgan Stanley. It is worth noting that one in three companies seeking to locate in Europe choose the UK as their preferred location. In Scotland the impact of inward investment has led to the largest concentration of electronics companies in Europe being located here.
5.2.3 Clearly the use of a government backed organisation to attract major investment has involved the use of incentives to win projects over competing locations, both within a UK and European context. This is a policy that has been somewhat criticised in recent years as a result of a number of high profile closures of facilities that were initially supported as major inward investment projects. This is based on the premise that when cost reductions are required companies will be more likely to close satellite operations located away from their original base or administrative centre.
5.2.4 Recent trends exhibited by The Scottish Executive and its agencies have shown a tendency to distance themselves from large scale inward investment projects, or at the very least to ensure that any investment or incentives provided can be clawed back in the event of early closure or withdrawal from Scotland. There now appears to be a stronger emphasis on the promotion of indigenous economic growth through supporting the expansion of existing companies and promotion of new start-ups. This aims to reduce the reliance on overseas investment for economic growth in Scotland, and encourage home grown business success where possible.
5.3 COMPETING LOCATIONS
5.3.1 Scotland will always face competition for investment in economic development from elsewhere in the UK and other European countries. Different locations will use varying incentive packages to entice operations to locate in a specific place, dependent upon the desire to attract certain employment sectors.
5.3.2 Section 2.3 discussed the standards applied in England, Northern Ireland, Republic of Ireland, Wales, Continental Europe and America. It is interesting to note that for the categories of business, and retail, both food and non food there is similarity between the different locations.
5.4 SELECTION CRITERIA
5.4.1 The decision making process employed by organisations in selecting a new location involves a considerable number of factors to be taken into account. The emphasis applied to any particular factor is determined by individual circumstances in each case, but in general terms the provision of specific car parking levels is unlikely to be a major determining influence. This observation has been informed by the experience of Jones Lang LaSalle in advising organisations in the selection of appropriate locations, and further demonstrated through the results of the case study interviews undertaken as part of this study.
5.4.2 The nature of modern day business and industry is that companies will have requirements to re-locate and expand into different markets. This is largely driven by a need to be located close to chosen market places and sources of demand for goods and services, combined with economic factors such as world financial markets, labour markets and presence of like minded/complementary organisations.
5.4.3 The priority afforded to car parking in the decision making process has been demonstrated by companies such as Monster.com in locating to Glasgow City centre primarily because of workforce availability, skills and availability of public transport, as opposed to the availability of car park spaces. Another relevant example is the continuing expansion at Edinburgh Park, where although parking is now increasingly limited and there are wider transport problems, the prestige of the location and presence of neighbouring high profile occupiers continues to attract new occupiers.
5.4.4 Examples of key considerations used in determining appropriate locations include the following:
- Public sector financial incentives;
- Workforce - availability and skills
- Quality of Life - environment, schools, leisure;
- Transport & Communications - road, rail & air infrastructure, fibre optic capability;
- Sector strength / track record - presence/critical mass of competitors and/or complementary organisations;
- Education - quality & access to education as a source of personnel and research facilities; and
- Research & Development - presence of sector specific expertise and development in a location.
5.4.5 In a global marketplace the significance of locally influenced factors will have a minor significance on where to locate - decisions are likely to be influenced by financial and market driven factors. In the case of more local decisions, say inter-region or inter-city based decisions, smaller scale factors such as car parking and local transport provision are likely to be given greater significance.
5.4.6 Car parking will be a specific consideration when the principal of a particular location has been established and at a point when there is perhaps a number of similar sites within a city/region/area under consideration. In considering competing sites on a local basis the general working environment and quality/provision of transport facilities would be taken into account, from a public transport and private car point of view, and it is at this point that car parking provision is most likely to become a factor.
5.5 SUMMARY
5.5.1 Transport is clearly a key consideration when comparing locations, particularly in relation to the provision and standard of transport infrastructure. More local considerations will revolve around issues such as frequency and quality of services, and availability of car parking or practical alternatives. The evidence coming from the inward investor case studies examined would concur with the view that car parking is seen as a secondary consideration in the locational decision making process.
5.5.2 Through discussions it has emerged that inward investors and other relocating organisations acknowledge that car parking will always be a consideration to be taken into account in the decision making process. Ultimately, however it is the presence and significance of other influencing factors that determine the importance of car parking, and the attitudes of individuals responsible for taking such decisions will be driven by the presence of such factors.
5.5.3 In the case of inward investors, a lack of local knowledge is likely to dilute the significance of car parking as it will generally be taken as read that a standard is being readily and equally enforced. Where investment/re-location decisions are made on a more local basis the existence and knowledge of similar examples is more likely to encourage dialogue over acceptable standards. In the case of large-scale inward investors this is where the role of local advisors can play a part in securing the most beneficial circumstances to attract an occupier where discussions regarding future relocations are undertaken from a remote location. In the current climate whereby there is inconsistent application of parking standards, shifts in development patterns between Local Authority areas may occur on a local scale.
5.5.4 The introduction of national maximum car parking standards will provide a clear and transparent set of guidance that should assist inward investors by giving them confidence that they are being treated on a par with local interests. In addition national standards will prevent inconsistent application of guidelines and incentives, thereby providing conditions conducive to indigenous growth and investment in line with the Executive's aims for future economic development in Scotland.
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