Economy (North-East)

Alan Campbell Excerpts

Tuesday 13th November 2012 Westminster Hall

[Mr Alan Campbell (Tynemouth) (Lab)]

I congratulate my right hon. Friend the Member for South Shields (David Miliband) on securing this important and timely debate. Yesterday, Tesco announced a new retail outlet in Cobalt business park in my constituency that will provide nine jobs. There were 660 applicants—more that 70 for every vacancy. These are difficult times for the north-east economy.

As has been said, the contraction of the public sector is only just beginning. I am concerned by attitude of some Government Ministers that public is bad and private is all good. The reality is that there is only one north-east economy and the relationship between public and private is complex. John N. Dunn Group, an excellent family company in my constituency, did a lot of work when schools were being built and social housing was being repaired, but such companies are finding it difficult to survive. When money is tight, and it will be tight into the future, it is important that we ensure that companies in our localities achieve maximum benefit. We need to improve the transport infrastructure, which is why I want to bid again for funding to improve both sides of the road in the Tyne tunnel. It is important that the Government do not just put out another press release to say that it will happen, but actually get on with it.

As we have heard today, we have some of the most advanced manufacturing companies in the country, if not the world. One in three cars made in the UK is made in the north-east and 70% of North sea oil and gas platforms are built in the north-east. When Hitachi comes to the region, which it will thanks to the efforts of my hon. Friend the Member for Sedgefield (Phil Wilson), there will be huge opportunities. We need to follow the approach of the regional development agency, ensure that we support clusters and get the maximum advantage for the supply chain in that situation.

Furthermore, it is important that small and medium-sized enterprises have access to capital. It is not right that half the companies in the north-east do not know anything about the Government’s four big flagship policies in that regard, and less than one in six takes part. When Weigh-Ahead, an excellent company in my constituency, approached a bank administering one of the Government’s schemes, it was told, “Actually, we can’t support you, but if you set up in London, we definitely could support you.” Such regional imbalances must be addressed. The local enterprise partnerships have a key role to play in that regard. I am concerned about our lack of capacity, especially as Lord Heseltine appears to be saying that it is important that we devolve not only resources but decision-making. The Scottish Development Agency still exists, so there are resources on that side of the border. Let us ensure that we have a level playing field.

On the question of capacity, our universities are a crucial part of the regional economy. It is important that our young people do well. North Tyneside has the unenviable reputation of being the area where the number of applications to higher education fell more last year than anywhere else in the country. That decline was the result of the double whammy of the abolition of the education maintenance allowance and the hike in tuition fees. The Government must address that issue quickly.

As has been said, the north-east is not a problem that the UK has to solve but an asset. What we need is a stronger commitment by the Government to a policy that creates the conditions for growth.