West Midlands and Coventry

Baroness Burt of Solihull Excerpts

Tuesday 13th December 2011 Westminster Hall

[Mr Cunningham]

I saw that article in the Coventry Telegraph, and I am also aware that my right hon. Friend’s constituency is probably the top of the list; my hon. Friend the Member for Coventry North West (Mr Robinson) is second and I am at the bottom somewhere. What I am saying is that, despite the Government’s measures, there are things happening in Coventry. That is the message that I am trying to get across.

Some hon. Members will remember the major improvements planned for the Coventry to Nuneaton rail corridor, which is known as the Nuckle project. It will help to improve accessibility and encourage increased use of the train for journeys that might otherwise be undertaken by car. When Warwickshire county council has received outline funding approval, it will aim for final approval by the end of the year or the start of 2012.

On Friargate, a recent meeting with the local enterprise partnership revealed that the project is making reasonable progress. It is an office-based project with residential, retail, car parking and delivery facilities, and an acclaimed arrival point for rail passengers. It, too, is expected to start in 2012 and has the firm backing of Coventry city council.

We have seen Coventry and the west midlands benefit from private sector investment. However, I am deeply concerned about the prospects for young people throughout the region and, more generally, about the loss of skills in various sectors. We have already seen a fall in university applications of more 19,200 in the west midlands region. We have also seen a fall in the number of skilled graduates in medicine and nursing who can find work in their qualified field because of public sector cuts, and that is against a backdrop of high youth unemployment.

[Lorely Burt (Solihull) (LD)]

I am sure that there is deep concern on both sides of the House about youth unemployment. Does the hon. Gentleman accept that the coalition Government are seeking to extend opportunities for young people in particular through enhanced apprenticeships and the Work programme to ensure that we do not lose a generation of young people? All employers are being galvanised to take youngsters on and to give them experience, so that when the upturn comes, they will be able to utilise the skills that they have developed.

[Mr Cunningham]

There is weakness in what the hon. Lady says. We have been here lately, and frankly we have seen this before. If we really want to give young people work experience, we must pay employers to take them on for six or nine months. Two or three months are not really helpful, because they do not then get another job. If I had my way, I would make it 12 months, but that is another argument.

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[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

I am pleased to have the chance to discuss economic opportunities in the west midlands, particularly in Coventry. I commend the hon. Member for Coventry South (Mr Cunningham) for securing the debate. He highlighted several practical issues around job losses and questions for small businesses. I will address all of them, including the specific transport schemes that have been mentioned.

It is worth taking a step back and remembering that the west midlands is a key part of our national economy. If we look at the most recent complete gross value added figures, it accounted for just over 7% of the UK’s GVA in 2008. It is important that the area is successful and prosperous. Clearly, there have been problems. I understand that it is a difficult time for individuals caught in unemployment or facing redundancy. However, there has been positive news. I welcome the balanced view that the hon. Gentleman presented of the challenges and also the good news. The Opposition will understandably challenge what the Government are doing, but we have to be careful that we do not start to talk down Coventry or other areas and that we strike a sensible balance. We must recognise the problems, but we must also look at where the opportunities are, because I think they are strong.

We have seen, for example, the £355 million investment by Jaguar Land Rover at i54. It is not immediately within the Coventry area, but it is crucial for the whole JLR programme. We have seen the £31 million that JCB is putting forward for its next generation of engines, which will form a crucial part of the skills base in the west midlands. We have also seen investment in BMW at Hams Hall, just outside Coventry. This is welcome news because not only is it good for businesses, it is a tribute to local workers. I want to put that point on the record. The hon. Gentleman and I have met the trade unions with regard to Rolls-Royce at Ansty. I hope that conversations between unions and management will persist to ensure that is somewhere that can remain competitive.

[Lorely Burt]

For many of us in the coalition, it seems that there is tremendous potential for the west midlands, because of the tremendous skills base. The Minister mentioned Ansty; he did not mention the fact that in my constituency of Solihull, Land Rover is creating 1,000 jobs in addition to the ones that he has already mentioned. There is so much potential for jobs and for the development of research and technology in our west midlands area, particularly close to Coventry.

[Mr Prisk]

I am grateful for the hon. Lady’s contribution. I will come to the broader Jaguar Land Rover issue, because it is crucial for the whole network of engineering and manufacturing in the region. We must be careful to remember where the roots of the problem lie. In 1975, GVA was ahead in the west midlands—above the national average. In the first decade of this century, from 2000 to 2008, the increase in GVA per head in the region was the lowest of any part of the country. In Coventry, the decline is clear. In 2000, we saw GVA per head 10 points above the national average; by the time we get to 2008, it is eight points below, so there are significant challenges. Indeed, the west midlands was the only part of the country where the number of private sector jobs fell between 1998 and 2008, so there are real underlying issues.

We are committed to rebalancing the economy; that includes sectors and geography. I turn to the specific areas of activity that I think are relevant. First, local enterprise partnerships are crucial. In the few months that they have been in existence, the Coventry and Warwickshire LEP has established a business mentor network; it is working with the banks to unlock credit at local level in addition to what we are doing at national level, and it has also identified key development and infrastructure opportunities. If I may, I will come to the question of Tollbar End and the development of that site in a moment. I know it is very important.

We have put £248,000 into the Coventry and Warwickshire LEP to get it up and running. That is not designed to provide a vast administration. I am not sure that we want a vast administration. We want outcomes. That is why the LEP is getting its funding strategy in place; it is why it is putting in place its evergreen fund and it is why we are making sure that there is a portal in place so that it is actually able to engage with small businesses.