City of optimism: Hull enjoys Siemens investment boost – BBC News

Image caption Are Hull’s fortunes changing?

After decades of deterioration, the opening of Siemens’ new 310 m gust turbine blade factory has been hailed as the biggest investment in Hull since Victorian days. With only a few weeks to go before the UK City of Culture 2017 status kicks in, could the city be on the up?

When Siemens announced two years ago it was opening a new factory in Hull, the news was greeted with both jubilation and a sigh of relief.

This maritime city with a picturesque waterside place, easy ferry access to Europe and some of the most attractive buildings in the country had taken a tumble since the collapse of the fisheries sector in the 1970 s amid the “Cod Wars” with Iceland.

It spent many years at the bottom of economic and education league tables, experienced high unemployment and deprivation, and was once voted the worst place to live in the UK.

But the new 133 -acre( 540,000 sq m) facility on Alexandra Dock, where 1,000 people will be building blades for gale turbines, is being seen as a “game-changer” in the East Yorkshire city’s fortunes.

Image caption Alexandra Dock is reinventing itself in the renewable energy industry

According to Christopher Haskins, the chairman of the Humber Local Enterprise Partnership and former boss of Northern Foods, Siemens’ presence is “one of the biggest investments in the history of the city”.

“It surely compares with the great investments that were attained in the late 19 th Century when the big docks were developed in Hull in order, ironically, to export coal from West Yorkshire to the rest of the world, ” Lord Haskins said.

“I would say it is definitely the biggest since Victorian times in terms of infrastructure change.”

Image caption Evidence of Hull’s boom during the Victorian era can be seen in its architecture

His sentiments are echoed by Hull historian Dr Alec Gill, who says the German firm augments the present roster of the city’s home-grown companies in the pharmaceutical, healthcare and construction industries, among them Reckitt Benckiser, Smith& Nephew and the Spencer Group.

“These firms have been established here but they’ve gradually improved and increased the profits and expanded over the decades, compared to the Siemens’ investment which has come totally from outside and landed from Mars, really. It’s been injected in such a short period of time.”

Image caption Hull was “a working-class town, describing on angling, whaling and manufacturing”, says Dr Alec Gill

It was during Queen Victoria’s reign that Hull watched its boom years. The number of docks expanded from two to seven, railways were constructed, the whaling trade and fishing industries were thriving.

So rapidly did Hull flourish that by 1897 it had been granted city status.

Image caption Hull requires more “high value jobs” paying larger salaries if the city wants to boost its prospects, economist Paul Swinney says

Now virtually 120 years on, Alexandra Dock, which was built to export coal from Yorkshire collieries, is reinventing itself within the energy industry, replacing coal with renewables.

“It’s a massive site when you see it, ” said Lord Haskins.

“It’s important to recognise that this is, in infrastructure words, an enormous change and it’s a new the enterprises and it’s a completely new world for the city of Hull and it runs much wider than Siemens.”

Image copyright Hull Museums Image caption Hull& Barnsley Railway opened Alexandra Dock in the 1880 s to expand Hull as a coal port. This photo was taken in the 1930 s

But in the 20 th Century Hull’s prosperity started to fade.

Left damaged and transgressed by two world wars and the decline of the fishing industry, its image as a rundown backwater haunted the city for decades.

Image caption Low wages and higher than average unemployment levels are denting Hull’s upward progression, according to think tank Centre for Cities

Five years ago 7.9% of Hull’s population was claiming Jobseekers’ Allowance. This had dipped slightly to 7.2% – still more than double the UK median – by 2013.

Dr Michael Nolan, senior lecturer in economics at the University of Hull, said the city was now “making progress in the right direction” with the number of claimants down to 3.5% compared to the UK’s average of 1.8%.

“Although things have flattened out in the rest of the country, Hull’s unemployment carried on downwards and it looks like there’s some evidence that perhaps the Siemens effect over the last year or so has maybe begun to show some real signs of kicking in, ” he said.

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Click to see content: hull_unemployment_3 01116

However, according to the think tank Centre for Cities, the Siemens investment is unlikely to create a significant upturn in the city’s economic fortunes because of the lack of “high-value jobs” that pay larger wages.

Principal economist Paul Swinney questions whether Siemens’ investment will “address the issues that Hull faces”.

“It’s great that Hull’s managed to attract in that investment but what I’d imagine is that, because it’s the manufacturing of the blades principally rather than the design and all of those kinds of higher value components, it’s not a great amount of fund in that part of the production.

“Actually what Hull genuinely needs in terms of being more successful in the coming decades, is to see the shift into more knowledge-based type activities, these higher-paid, high-skilled jobs, because that’s what it lacks at the moment and that’s why we see it having very low wages, very high unemployment and generally struggling.”

He said the cheaper labour force would “probably do very little” to steer Hull on an upward trend.

“You can’t see this as being the answer to the longer structural problems that the city faces to its implementation of the challenges in its economy, ” he added.

Type and number of jobs in Hull since 1841. Source: Centre for Cities Year Agriculture Mining& Manufacturing Low Value Service High Value Services Public Services Other Total 1841 700 6,900 8,700 100 1,000 1,700 19,100 1861 1,400 8,400 13,000 300 1,100 1,700 26,000 1881 2,500 18,800 26,100 800 2,200 5,100 55,500 1911 2,500 38,200 59,300 2,000 4,900 7,400 114,200 1931 5,900 36,300 60,100 2,700 8,600 7,000 120,600 1951 4,200 44,200 55,200 3,900 11,700 10,400 129,600 1971 2,100 40,700 49,700 7,000 21,600 9,600 130,700 1991 600 25,800 41,900 7,400 26,000 9,000 110,700 2011 200 17,100 48,600 8,900 37,800 11,600 124,400 Media captionHow are wind turbine blades constructed? Image caption UK City of Culture is giving Hull a “positive perception to the outside world”, says Lord Haskins Image caption Hull is undergoing a massive facelift prompted by its UK City of Culture status

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