Public Bodies Bill [HL]

Baroness Armstrong of Hill Top Excerpts

Monday 28th February 2011 Lords Chamber

[Lord Taylor of Holbeach]

I am grateful to the noble Lord for that intervention because it gives me the opportunity to respond by saying that there is almost a mathematical relationship between size and the importance of the boundary that exists between different regions. One difficulty with regional boundaries is that they are frequently quite dramatic, although there may be a geographical coherence. I am a Fenman. The Fens are in the eastern region, about which the noble Lord, Lord McKenzie, spoke, but they are also in the east Midlands. Yet it makes sense for them to work together as a geographical whole. One great advantage of the LEP approach is that, when the models are smaller, the boundaries are slightly less severe and there is an opportunity for LEPs to work together. That is the whole point of the policy—to create greater flexibility in how the units of economic development can work together where they wish to. That supports the argument of One North East and the degree to which common policies across the north-east can work. I accept that it is possible to have a different point of view, but I am telling noble Lords how we see this. If we really want to address the regional imbalance in this country, we have not succeeded with RDAs.

[Baroness Armstrong of Hill Top]

Does the Minister accept that the Government are out of step with virtually everyone in the north-east?

[Lord Taylor of Holbeach]

I take a great deal of comfort from my noble friend Lord Bates, who shares my view of the ability of the north-east to develop common policies where it wishes to do so. There are individual differences between Teeside, Tyneside and Wearside. You would not want to say you were in Newcastle when you were in Washington—I remember somebody getting into terrible trouble for doing so. Locality is very specific and the north-east has different characteristics. It is not homogenous and there are methods of getting economic development in the north-east which do not depend on having a single body to deliver it. A coalition of different bodies with a common policy may well be a much more effective method for doing so.

I gave way to my noble friend when I was talking about the West Country. If I might take Bristol as an example, it is far better for the local partners to develop policies for the specific issues it faces, and for Cornwall to do likewise. I strongly believe that any economies of scale that a regional approach may have are more than outweighed by an absence of local knowledge and commitment and the consequent loss of responsiveness to local circumstances. In response to the noble Lord, Lord Whitty, who asked why the Gloucester, Swindon and Wiltshire LEP was rejected, I would say that, although there was some business support for the proposal, other businesses in the area felt that a different geographical approach was right. Ministers have gone back and asked the partners to discuss their proposals again in order to develop an approach which takes the full range of local views into account. So the matter is not concluded; it is still under debate, and the Government await evidence on which to make their decision.