Rural Communities

Earl of Stair Excerpts

Thursday 15th July 2010 Lords Chamber

[Earl of Stair]

My Lords, I, too, am pleased to join this important debate, which covers such important issues as communities and remote parts of the country, and to have the opportunity to address a Minister who not only is involved in farming but comes from a fairly remote area. I also farm and run small businesses in tourism and printing in an LFA almost six hours’ travel from this House, and I declare an interest in both farming and those businesses.

Although I am based in Scotland, and many of my activities fall under the Scottish Government, remote and upland issues tend to be similar throughout not only England but the devolved regions, and Westminster is still our link with Europe. It is true that, often, the uplands and remote communities of the United Kingdom are forgotten in the rush of modern life, and come to the attention of the public only when there has been a sad case of an errant gunman, or foot and mouth disease.

However, the uplands play an important part not only in the agricultural sector but in tourism and small business. The diversity of business is often less than in other regions and often has considerably lower income levels—through either market forces, restrictions on development by planning authorities, or simply the weather. Notwithstanding that, the weather is now contributing to the uplands economy through the proliferation of wind farms, balanced by the impact on often unspoiled countryside. Upland farming tends to be extensive by nature, not a high-income generator, and a low employer.

However, in industry, uplands create the base for a wide spectrum of business, from suppliers to small manufacturers and niche businesses. Sadly, that often means that the size of the business is too small to sustain whole families, and low incomes are often the cause of the drain from rural communities to centres of population. Rural enterprises often also lose out because they are unable to compete due to simple things such as broadband provision and transport links. As a result, many younger members of the community often feel obliged to move. That depopulation does not help the retail sector either, and many small shops are forced to close. The convenience shop used to be in the village but increasingly the large supermarket or store, in the eternal quest for territorial domination, now sweeps many small shops in rural towns aside. Sadly, that is increasingly seen in towns, with rows of closed shops moving the heart of town centres to the peripheral areas. Indeed, that is so bad in some rural towns that closed shops have large landscaped photographs placed in the empty windows to try to camouflage them.

To my mind, the solution should be fairly straightforward. I am aware that the enterprise networks in Scotland have been changed, and I believe that there are alterations in England. I am a great supporter of forward-thinking and effective enterprise and development agencies to help to support and advise on business start-up and development. That needs to involve proactive and experienced advisers and focused funding for support with a degree of flexibility.

The noble Lord, Lord Greaves, made some interesting points about foot and mouth disease in the Lake District. I am not aware of what went on in the rest of the country but, without a doubt, the fast reaction of our local council in Dumfries and Galloway, along with the enterprise network, to source funds for loan support for small business, prevented many of the non-agricultural small businesses from going under at a critical moment.

I am aware that there are initiatives in Scotland, and I assume that there are initiatives in England, to supply broadband to outlying exchanges. My noble friend Lord Cameron covered the need for broadband very well. However, I recently heard of a business local to me that received a quotation in excess of £10,000 to complete the link from the exchange to the business. That is not an incentive for a business to develop in a remote area.

I also want to cover transport, but would prefer to come back to it later.

Over the next few years, the single farm payments system is being reviewed, along with other European funding. I urge the Minister to focus on discussions with the devolved Governments to discover exactly how remote communities can be best served before accepting any agreement from Europe, to ensure that we can rebuild our remote communities and stop further deterioration. Too often schemes are produced that focus not on the business but on the community, which can often result in an excessive supply of play areas and similar things, but without the business development there will be no young people to enjoy the playground. Without a doubt, successful communities rely on successful business. Perhaps we should look at local abattoirs built on greenfield sites and subject to full, up-to-date European regulations, which would demonstrate a complete interlink between upland food production and would, without doubt, be better for the welfare of the animals, which are otherwise transported for long distances.

Returning to transport, I ask the Minister to indulge me because he will know that the town I am talking about is in Scotland, which is under a devolved Administration. Stranraer is two hours west of Carlisle, is surrounded by sea on three sides and is in an area dominated by farmland. The only industrial employment comes from a cheese factory and two ferry ports. It definitely qualifies as a remote community. However, my example can be applied to many remote towns and villages, where the formula can be adjusted but the results are the same if one of the principal employers ceases. About five years ago, an economic assessment was commissioned to study the effect of the withdrawal of the ferry services on that route. Stranraer already had an unemployment rate of over 5 per cent, and it was predicted that unemployment would rise to almost 15 per cent.

The key to the survival of Stranraer was the ferry ports, and the withdrawal of the ferry companies was a real possibility, entirely due to the condition of the road approach. There are other crossings to Ireland, but none as short and therefore as fast. The road to the town and port is the A75, which is also a trans-European network link from Ireland to mainland Europe through Scotland and England. Although of European merit, it is funded by the devolved Scottish Parliament, which did not consider it to be a priority. As a result of lobbying the Scottish Parliament, some road-widening improvements have taken place, but not nearly enough. However, Stena Line, one of the ferry operators, now has the confidence to invest almost £240 million in the sea route, securing for the time being the future of this one remote community. This money has been spent on building a new port facility and purchasing two new ships. It demonstrates the welcome and continued interest in the British maritime industry of Dan Sten Olsson, the managing director of Stena.

While not asking the Minister to respond on what has happened in the past in Scotland, I ask that, when the Government reorganise whatever may follow the Barnett formula, special attention is given to funding for devolved issues that affect all the regions of the United Kingdom—for example, road links—and that may not be a priority for the devolved Government. If not, other remote communities caught in the middle will continue to suffer.