Matt Johnson: The good ship Merseyside makes progress in heavy seas

Feb 20 2008 by Bill Gleeson, Liverpool Daily Post

THOSE who take on huge tasks have been known to liken their efforts to turning round a super tanker in an ocean.

In other words, great efforts take a while to make a difference.

Last week, a man who resides in one of the plushest offices in the City of London gave us the view from the bridge of his particular super tanker – the Bank of England.

Governor Mervyn King has a great many controls at his disposal, to steer our economy on pretty well any course.

A tweak of a rate here, and a percentage point there. Tiny adjustments that can send the SS United Kingdom in any direction.

As we now know, the Governor's assessment was a little bleak. And that was before the Chancellor volunteered every taxpayer in Britain to underwrite this Government's stuttering rescue of Northern Rock.

But where does Liverpool and Merseyside fit in the complex picture Mr King unveiled last week? The man himself was here recently as part of a regional tour, and was, I am told, impressed by much of what he saw in terms of investment and regeneration.

But, like so many other things round here, our economy could be seen to be a bit out of step with the rest of the country.

While there's no doubt that driving the region's economic growth throws up some tough challenges, and we are still playing catch up to other UK regions, there are signs that we are making good progress through some heavy seas.

We don't need reminding of the physical regeneration going on across the city centre. As has been said before, a skyline dotted with cranes means investment and confidence as well as disruption for those going about their business on the streets below.

And last week two very significant deals were struck which indicate the buoyancy of at least two sectors of our economy.

Midas Capital Partners, based in Water Street, achieved a stock market listing strengthening Liverpool's financial services sector reputation.

Like another Liverpool business success story, Cains, Midas used a reverse takeover to steer its course towards the stock market. Both are complex deals and while the firms involved are poles apart in terms of what they do, each required the same sort of high end professional services support to come to fruition.

The second deal which caught my eye as an indication of local market conditions was the one which saw six luxury apartments sold for a total of £6m.

Property markets may remain volatile, and reverse takeovers may still be rare. But each marks another milestone in Liverpool's economic recovery.

Our super tanker remains on course – for now, at least.

MATT JOHNSON is chairman of Mando Group