BRINGING medical technology companies to Monmouthshire by setting up a new industry hub in the county will generate income to support services, councillors have said.
Monmouthshire County Council has been approached by corporate firm Capital Kinetics to develop a business incubator facility and boost the healthcare technology sector.
The council’s cabinet approved spending £100,000 on start-up costs – with £50,000 going towards office set-up and a £50,000 one-off fee to Capital Kinetics as partners – at a meeting on Wednesday.
Under the proposals, Monmouthshire Med Tech (MMT) would be based at the council’s former Innovation House offices in Magor.
Once up and running, around 15 companies will be offered small loans from the council’s £50 million investment fund.
Cllr Bob Greenland said the opportunity to bring a cluster of medical technology companies to the county is a “big prize to go for”.
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He said: “[It is] a very modest investment.
“Let’s be honest there are no guarantees with this – if there were guarantees somebody else would have done it a long time ago – but this has been very carefully considered.”
Work to establish MMT in Magor began in November 2018, but it will be launched as a nine-month pilot, with a view to extend it into the long term if successful.
Capital Kinetics, which is said to have “significant” knowledge within the med tech industry, will be tasked with recruiting and assessing target companies from UK and international markets.
Business loans will be for no more than £25,000 and no longer than a year, with each firm assessed by a steering group before recommendations are made to the council’s investment committee.
Cllr Phil Murphy said the scheme provided “another very good opportunity of increasing income to the authority” which could be used to support “front line services”.
The council has agreed to take a more commercial approach to invest in services in recent years, with purchases including Newport Leisure Park said to provide “an excellent annual return”.
Cllr Richard John said the establishment of MMT showed the authority is “not afraid to push the boundaries of what is possible.”
Cllr John added that the scheme would help to fund projects such as a planned £6-million revamp of Caldicot Leisure Centre.
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