Press Releases

19 September 2008

Unions Welcome TIF Job Injection

New research has revealed almost 10,000 new jobs could be created in Greater Manchester as a result of the Transport Innovation Fund (TIF) package.

The Greater Manchester future transport package includes plans for an investment of up to £3 billion in the regional transport system, funded in part by a week day, peak time only congestion charge.

Between 2009 and 2013 as many as 5,800 new jobs will be created directly and indirectly across Greater Manchester - as the bulk of the Transport Innovation Fund (TIF) cash is invested locally. An estimated further 3,900 jobs may then be created directly and indirectly from operations in the expanded transport system and its supply chain, and the remaining investment between 2014 and 2019.

Unions welcome the job injection, Alan Manning the North West’s TUC Regional Secretary comments: "Unions are very encouraged by the real jobs that the proposed investment under the TIF bid would create - in the construction trades when the GMPTE starts to put in place the new tramways, bus stations and larger rail stations, in supporting a much larger public transport network and in the wider business opportunities that the investment would give to local and UK based businesses.

“Given the current state of the economy, a £3 billion investment in Greater Manchester's infrastructure, and the jobs this will create, would be very welcome."

Julian Wells, Associate Director who led Arup’s work on the report, comments: “This is a huge investment in infrastructure that will create many jobs in building and implementing the transport measures over the medium term, and then in operating and maintaining the system in the long term.  There will be further impacts in the supply chain, and the spending by those employed.”

The study summaries the estimated job consequences as a result of the £3bn transport investment package on employment in Greater Manchester.

Lord Peter Smith, Leader of AGMA, said: "This report clearly demonstrates the beneficial impact TIF is set to have not just on improving public transport but also in affecting the economy by increasing employment across Greater Manchester.

“The findings show that the TIF package alone is set to vastly increase the number of new jobs being created in the region every year and at a time when economic growth is slowing, this very direct boost to the local economy is perfectly timed to help combat a recession - especially as charging would not be introduced until 2013 at the earliest but job creation would be from 2009.

The majority of the jobs created during the initial four year period through to 2014 are set to be created in the construction industry and associated supply chain businesses, but further jobs may also be created as a result of the increased spending power of workers employed in these areas.

The affect of the investment on the economy and the obvious benefits to the labour market of improved connectivity across the region is further echoed by the Dean of Manchester University’s Business School, Professor Lugar adds; “Whatever jobs are created to build and operate the enhanced public transit facilities and services, there also will be job creation from ‘induced location’.  That is from businesses that will find it attractive to move to and expand in Greater Manchester because of its improved public transport system.

Numerous studies conclude that good mobility and quality of life are two of the most important location factors for businesses today, and the TIF package would contribute to both those attributes."

“The ripple effect as a result of £3bn investment could be worth up to £10 billion to the economy at a time of an economic slowdown.” said Lord Peter.

Further information on the GM Future Transport proposals can be found on www.gmfuturetransport.co.uk.

Click here to view the Manchester Transport Innovation Fund Analysis.

Notes to Editors

This study was conducted by independent consultants Arup on behalf of GMPTE.  Copies are available on www.gmfuturetransport.com

The recent Department for Transport announcement confirms up to £3 billion of funding will be available for transport improvements in Greater Manchester. This comprises Government grants of £1.5 billion, £1.2 billion of local funding supported by future revenue from a limited peak time only congestion charge and £0.1 billion of third party contributions. The DFT has also confirmed that it will fund extra railway rolling stock for the city-region.
 
The Transport Innovation Fund (TIF) is a central Government fund that supports "innovative solutions to congestion problems, involving demand management measures". Local Authorities across England bid for this fund.

The report and further information can be found at www.gmfuturetransport.co.uk

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