Hospital Services (North-East)

Lord Wharton of Yarm Excerpts

Tuesday 27th July 2010 Westminster Hall

[Grahame M. Morris]

That is a very good point and the development of community health infrastructure has been integral to the proposal for the new hospital. It is key to improving health and tackling health inequalities.

I have some sympathy with the Minister, as it seems that the proposed hospital suffered at the hands of the Chief Secretary to the Treasury as he searched to save around £2 billion in June. However, regardless of the changing economic circumstances that saw Britain’s budget deficit improve by £10.4 billion from the original pre-election forecasts, I do not believe that it is too late for the Minister to give the proposed new hospital a second chance, following a reconsideration of the evidence.

[James Wharton (Stockton South) (Con)]

Will the hon. Gentleman give way?

[Grahame M. Morris]

If you do not mind, Mr Sheridan, I will not give way to the hon. Gentleman. I know that time is short, but I am almost finished and I think that the hon. Gentleman will have an opportunity later to speak. I have almost completed my contribution.

As it stands, the future of health provision in North Tees and Hartlepool is being put at serious risk. The cancellation of the hospital at Wynyard can only ever be viewed as a delay—the need for it still exists. Whether it is a delay of five years, 10 years or longer, the people of Stockton North, Stockton South, Hartlepool, Easington and Sedgefield need a new hospital. I invite the Minister to think in the long term and not to abandon a well thought-out project that would improve health care for people who have suffered a legacy of some of the worst health outcomes in Britain.

[Phil Wilson (Sedgefield) (Lab)]

Thank you for giving me the opportunity to speak in the debate, Mr Sheridan. I want to make a business case for the Wynyard hospital based on its effect on the local economy, because the Government’s decision is short-sighted. The new hospital was to be sited at Wynyard park—a 700-acre business park owned by Wynyard Park Ltd that has created more than 1,000 jobs in the past five years. Fifty-five companies have moved on to the site, and the hospital would have been a catalyst for further private sector investment and jobs. The Government go on all the time about the need to rebalance the north-east’s economy, and the Opposition agree with them. One way to do that and to help generate private sector investment would be to invest in infrastructure and public sector hospitals, such as the one that the Government have cancelled.

The cancellation of the hospital came on the back of the announcement about housing benefit. The former Chancellor said that we would take £250 million out of housing benefit through reforms, but the present Government want to take out £1.8 billion, which would greatly affect areas of County Durham. In addition, just under 100 schemes have been cancelled under Building Schools for the Future, which is a problem not just for education, but for construction jobs in the region. On top of that, the regional development agency is to be abolished. It has played a part in work on the Wynyard site and the foundation hospital, and it has tried to attract investment into the area.

[James Wharton]

I understand the hon. Gentleman’s terminology when he says that the RDA will be abolished, but is it not rather the case that it will be replaced by more localised local enterprise partnerships, which will deliver better for local people in communities across the north-east?

[Phil Wilson]

Actually, it is being abolished—that is what is happening.

I want to make two points about the RDA. First, it invested £2 million last year in attracting inward investment. On the basis of that money, it attracted £720 million of inward investment into the north-east—82% of inward investment into the region comes through the RDA, so if it ain’t broke, don’t fix it. Secondly, in preparation for the hospital development, the RDA organised meetings between the foundation hospital and overseas firms to see whether those firms would come on to the site.