Growth Fund warning as bid deadline looms

YORKSHIRE’S chambers of commerce have warned the Regional Growth Fund could be focusing too much on short term job growth as a £14.3m bid is submitted to fund transport improvements in Castleford.

It is understood Financial Leeds is among the other organisations in the region to be asking the Fund for money to support its work.

With first round bids due in by Friday, the seven chambers of commerce in Yorkshire have urged the Government to use the £1.4bn Fund to support sustainable growth over the longer term.

The Fund was established as part of the shake-up of regional economic development that will also see the closure of Yorkshire Forward and Business Link Yorkshire as well as the creation of a network of new local enterprise partnerships.

Richard Wright, executive director of Sheffield Chamber of Commerce, said: “The Regional Growth Fund must remain focused on its original purpose of strengthening the private sector recovery in places like Yorkshire and  Humber. 

“The limited resources should be used to support sustainable economic growth, not create temporary jobs that may be gone in a year.”

The chambers spoke out after meeting with Lord Heseltine, the Fund’s chairman, during his visit to the region last week.

Policy advisers from the seven chambers have also pledged to campaign together on areas such as high speed rail, motorway improvements and broadband access as part of collective efforts to make 2011 a ‘year of growth’.

Metro and Wakefield Council are looking for £14.3m from the Regional Growth Fund as it looks to replace Castleford’s existing bus and rail stations with a modern transport interchange as part of plans to encourage more businesses to invest in the town.

Coun Chris Greaves, chairman of Metro, said: “We believe that these goals put Castleford Interchange in line with the objectives  of the Regional Growth Fund, which the Government has set up to support projects with significant potential for creating long term private sector led economic growth and employment.”