Public Bodies Bill [HL]

Debate between Lord Hunt of Kings Heath and Lord Grantchester

Wednesday 23rd March 2011 Lords Chamber

[Lord Grantchester]

I shall speak to Amendment 17A in the absence of my noble friend Lord Liddle. In doing so I declare my interest in the region, having served on the sub-regional body Cheshire and Warrington Economic Alliance, one of five sub-regional bodies under the Northwest Regional Development Agency.

In the run-up to the most recent election, early versions of the Conservative-led Government’s regional policy seemed to suggest that both the north-western and north-eastern development boards would be retained, as there was general recognition of the benefits that each had brought to their regions. That recognition was reinforced by an independent evaluation undertaken by PwC, drawing attention to the strategic coherence brought and the GVA delivered.

It was therefore something of a disappointment when it was announced that all RDAs were to be disbanded. As a public-private partnership, the new Cheshire LEP is taking the coherency of the sub-region forward, but without any resources. It is undertaking some very worthwhile projects, such as with Liverpool University to explore the value of the equine sector in Cheshire West, and in rural housing, through a joint commission set up by rural regeneration and housing teams. That is all very worth while, but it is without the wider coherency of reciprocal support provided from the NWDA, following agreement on priorities across the whole region. The concern is that, without the wider regional strategy brought by the NWDA, policies will fracture into parochialism, with so-called local areas failing to see the bigger picture, to share best practice or to co-ordinate. I refer in this respect to the leadership shown on climate change policies and guidance that is so necessary if we are to meet our future obligations.

I will not repeat the debate in Committee, as my noble friend Lord Campbell-Savours has spoken tonight very powerfully. At the moment, there is confusion over the process of change. The decision to abolish the RDAs so quickly has created major challenges for existing destination organisations and, accordingly, rather than focusing on opportunities such as provided by the 2012 Olympics, they have been forced to reorganise. This has lost time and momentum, especially with there being no strategic transition plan in place to guide the move from RDAs to LEPs.

To continue with the 2012 theme, there is a great risk that this opportunity cannot be grasped. For the visitor economy, there is a need to provide the national organisation, visitEngland, with support to fill the current gap, while existing visitor businesses need to engage with new organisations that will emerge, albeit that they will be much reduced in terms of both human and financial resources. Another disappointing consequence of the plan to disband the NWDA concerns the future provision of the EU funding provided through the economic rural development funds. This highlights the vacuum in the present Government’s policy on regions. Instead of providing access to these much-needed rural development funds under Pillar 2 local arrangements at local level, the Conservative-led coalition seems to favour implementing these centrally, in direct contradiction to its localism agenda. The rural economy deserves better.

Finally, there seems to be no thought on what will happen on asset ownership, both physical and intellectual, and how the area can derive maximum benefit from their previous investments. There is still time to reconsider. I support my noble friend’s amendment.

[Lord Hunt of Kings Heath]

My Lords, I shall speak to Amendment 18. Like my noble friend Lord Kennedy, I find it quite extraordinary that the Government have decided to abolish RDAs on a day when the growth forecast has been reduced yet again. It is a quite bizarre decision.

I speak from the particular context of the West Midlands, looking at the performance of Advantage West Midlands. The West Midlands is a great place to live, but recently our economy faces many formidable challenges. Advantage West Midlands has done a very good job in the past few years, drawing people together and identifying real projects to invest in. As a result, we can see the regeneration of Longbridge, after the collapse of the manufacturing industry there. We have seen the regeneration of Fort Dunlop, with 140,000 jobs safeguarded, 28,000 helped back into work and 160,000 people helped to get better skills. Over 100,000 businesses were helped to improve their performance. As Sir Roy McNulty, the chair of Advantage West Midlands said at its last AGM, it is clear that its abolition has been based on political reasons rather than on its actual track record.

The CBI said that,

“in the rush to abolish Regional Development Agencies … and elicit bids for Local Enterprise Partnerships … there is a risk of throwing out the baby with the bathwater”.

Again, the CBI has singled out transport as a critical issue for improving economic growth. It concluded that LEPs need to find a way to replicate the ability of RDAs at their best to cut across local authority boundaries and to promote a regional level transport agenda. How are LEPs going to do it, given that they cover much smaller areas? For instance, in the West Midlands, is it really sensible to split Birmingham from the Black Country? It is a complete nonsense.

Let us talk about the resources needed for the development of major infrastructure. The number one priority for us is the extension of the runway at Birmingham International Airport. However, the Government’s last-minute decision to change the rules and go only for short-term, quick-win projects for the first £250 million that was available meant that bidding for Birmingham airport expansion was stopped in its tracks. No wonder the Birmingham Post said in a leader on 27 January that the launch of LEPs has been,

“an unmitigated and embarrassing disaster”.

Instead of a region working together, what will we see? We will see arguments and splits between LEPs that are side by side in the same region, when they should be working together.

The Government’s admission that their policy is a nonsense relates to BIS’s decision to recreate regional offices. What better indication could you have that the business department knows that the abolition of RDAs was a very silly decision which anyone concerned for economic development in this country could only oppose? The Government are making a big mistake in abolishing RDAs. Will the Minister respond to my noble friend Lady Quin, who asked why on earth those regions where there was a clear and strong consensus to retain RDAs, are not allowed to keep them going? Why should we be forced to downgrade, disrupt and undermine regional growth simply because there is some kind of doctrinaire political approach that says we cannot live with RDAs?