A WATERFRONT business improvement district (BID) in Plymouth would bring benefits to firms outside the tourism sector, a lively Barbican debate has been told.

Professional services firms would not see the benefits as quickly as tourism-related businesses, but in the long term they would also profit, Professor David Wheeler, chairman of the Plymouth Waterfront Partnership, said.

But publican Tam Macpherson told a breakfast debate at the Glassblowing House on the Barbican that a BID amounted to the privatisation of public services.

Voting began this week for about 600 businesses in the Plymouth Waterfront area. They are being asked to agree to set up the Waterfront BID. If a majority vote 'Yes', all will be required to pay a levy based on 1.5 per cent of their rateable value.

The levy would raise more than £1million over five years, but would be used to lever in more than £6million in cash and services.

Professor Wheeler said the BID would demonstrate belief in the city and the Waterfront as the jewel in its crown.

It would allow a co-ordinated business voice to emerge.

But he said it would only succeed with the active involvement of all businesses. Opponents of the BID would need to demonstrate their alternative.

Professor Wheeler said the BID was worth more than £6 million over five years, made up of about £1 million from the levy, £2.7 million of ring-fenced council funding and services, and the rest in grants and investment.

But he said there was a potential to bring in far more cash if they made the most of the Waterfront assets.

Mr Macpherson, owner of the Clipper Inn and chairman of the Hospitality Licence and Leisure Retail Group, said he believed that setting up a BID was an attempt to remove public services from scrutiny and accountability.

"Is the city not better placed to address the complex issues involving public safety and upkeep of public open spaces? Why would the private sector wish to take on such responsibilities?"

He rejected claims that the BID would reduce business trading costs.

Andrew Ashley, of Enterprise Plymouth, said he could see the benefit for tourism-related businesses but many had nothing to gain from a BID.

"It's an approach that has worked in the city centre, but I know a lot of the Waterfront businesses are not happy."

Joedy Lawrence, of Independent Utilities, at Millbay, said: "We have got to do it. For years we have been caught in a time capsule. We need to be proactive and just get on with it.

"As Barry Keel says, there is no Plan B. If we can replicate the success of the City Centre BID it will be worth it."

William Wills, of Wills Accountants, said he was "broadly in favour" but "it's going to hit me in the pocket".

"One of my concerns is what will happen to funding if the BID doesn't go ahead."

Prof Wheeler assured businesses that if the BID went ahead, "all things being equal" procurement policy would be designed to give favourable treatment to local firms providing services to the Waterfront Partnership.

Businessman John Steven asked whether, in a period of cuts, there were any guarantees about the money put in by the city council.

Prof Wheeler said that if the BID was not approved by businesses there was no mechanism for ring-fencing council services at a time when the public sector was facing cutbacks.

But if the BID was approved the council had agreed to protect its services to the Waterfront.

Nick Holman, of Vickery Holman, said: "I know there are details that are going to have to be sorted out but the BID has to be supported in principle."

Richard Smith said the process had been rushed and a gun was being held to people's heads with the statement by council chief executive Barry Keel that "there is no Plan B".

Steve Whiteway, of Alpha Logic, said there was a golden opportunity to create positivity by staging more Waterfront events.

Patrick Knight, from Plymouth City Council, said that the key to winning European Union funding was being able to offer significant private sector match funding.

Comment: Page 11