Regulations put businesses off hiring people

ENTREPRENEURS seeking to grow their business face an "intimidating, legislative environment", a major business event was told.

A businessman, a politician and a theologian were among the panel at an event organised by young professionals in York to discuss the challenges facing North Yorkshire's economy.

The five-strong panel agreed that the private and voluntary sectors must pull together to ensure York's economy keeps growing in the face of public spending cuts.

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However, there were concerns that red-tape could stifle enterprise. Panel members also believed that some companies were not tapping into the talents of York's graduates.

Speaking after the event, Councillor Andrew Waller, the leader of the City of York Council, told the Yorkshire Post that he had urged Business Secretary Vince Cable to use the recently launched UK Innovation Investment Fund to boost York's economy.

Mr Waller, who was a member of the panel, said: "As low-carbon technology and renewable power is part of the remit of the fund, I was keen to see this being used by Science City York as York is becoming a centre for both.

"At the Liberal Democrat conference, I was able to ask Vince Cable, about this and he felt that, along with Cambridge, there is a keen opportunity for the development of the science city approach to develop new jobs and new technology.

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"I have followed this up with Professor Nicola Spence (the chief executive) at Science City York, and it does fit with their plans."

The panel event, which was organised by Make-York, the young professionals' networking group, attracted an audience of about 50 business leaders to St William's College in York.

Asked whether York could absorb the public sector cuts, Adam Sinclair, the chairman of the York Business Forum, said: "I've got great faith in the Yorkshire private sector. We've always survived and flourished through our innovation and entrepreneurship.

"It does sadden me when I walk around this city and ask people how business is going. They respond by saying, 'It's great. I only employ two people now, I used to employ 200 people.'

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"What does that say about the world? Employers are being lumbered with a lot of unnecessary regulation which is making it very intimidating to employ people. People are actually taking pride that they now employ only two people rather than 200 people, or 5,000 people.

"There's no pride left in our country about employing a lot of people. It's wrong that people who try to expand their business see it as an intimidating, legislative environment. We've got to stop that."

Jessica Grant, the director of Higher York, which is a partnership involving the council and higher education bodies, said: "In this city, there are a lot of graduates who want to stay here, and they are often under-employed.

"There's more we could do collectively to support their experience and get them into work locally. Also they need to know how to sell themselves and find out what's on offer."

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Graham Millar, the former managing director of Nestle Rowntree in the UK, who is now chairman of St Leonard's Hospice, said: "We're going through a very difficult period. The cuts are going to be unpleasant. If you work in the voluntary sector or the charity sector, our (cutbacks) started two years ago. People seem to think that it's all come now.

"Two years ago, interest rates dropped to a base rate of 0.5 per cent, so our incomes dried up. We've sat down and looked at our core requirements... I've been through two or three recessions and through two difficult inflationary periods.

"We've got really talented people who will get us through. Going through this somewhat cathartic process ends up with us coming out with a better product at the end. I've seen it happen a number of times. That's how York will cope."

Canon Dr Jonathan Draper, the theologian at York Minster, said: "A lot is expected of the voluntary sector in terms of picking up what the state no longer provides. I'm a little sceptical about how well that will happen. There's going to be a great deal of re-organising and re-energising of the voluntary sector."

Quality drive

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York needs more high- quality students to help create jobs and attract investment, the Make-York business event was told.

Graham Millar, a chartered accountant who has had senior roles in the food industry, said: "If we can attract them to York through internships and experience when they're undergraduates, and they don't just stay in the university, they could well come back after they've gone away. What we need is their talent in York."

Canon Dr Jonathan Draper, a theologian at York Minster, said the Minster's stoneyard had provided apprenticeships for skilled workers.

However, he warned that York could be perceived as "the graveyard of ambition".

He added: "You don't want to turn York into an inward looking place.That refreshing of the workforce is quite important."