Funding forces workforce cuts

1:50pm Thursday 18th September 2008

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The workforce at Pembrokeshire Business Initiative (PBI) has been cut by a third after suffering from funding delays, and there are warnings more jobs may go.

Delays in the distribution of European grants means PBI has had to lay off a third of its workforce and cut back on its work drastically.

“The problem has been one of timing, everything is too damn slow. For the last 18 months or so we have been maintaining the service at our own expense but we can no longer continue that process."

PBI chief executive Richard Packman

The company, which offers advice and support to start-up and existing businesses, has also warned that more staff may have to go, but says its core business is still going strong.

European Convergence funding, which replaced Objective One grants, has been slow to emerge, and a lot of it will not appear until early next year.

“The problem has been one of timing, everything is too damn slow,” said PBI chief executive Richard Packman.

“For the last 18 months or so we have been maintaining the service at our own expense but we can no longer continue that process and are inevitably downsizing.

“We have lost a third of our staff, we used to have 30 and now we are at 20 and in the short term we may have to lose more.

“Strong, experienced advisors are being lost and important projects are being lost and won’t be replaced in the short term.”

The company celebrates its 25th anniversary this year and is continuing to offer support and advice.

It has secured budgets of £1.5million, and start-up support has been re-contracted for at least three years. General and specialist advisory services have also been secured through the Rural Development Plan.

Preseli Pembrokeshire AM Paul Davies has highlighted the problems with convergence funding.

He said: “The Welsh Assembly has known for years that the European funding system was changing and these delays are unacceptable.

“Given the difficulties that companies are facing with the credit crunch, this couldn’t come at a worse time for many.”