North-East Independent Economic Review

Andy McDonald Excerpts

Thursday 5th September 2013 Commons Chamber

[Ian Swales]

I accept the hon. Gentleman’s point about the amounts of money concerned, but of course we were left in a situation where the Government were basically bankrupt. It is excellent that instead of spraying money around all the regions of the country, the Government have picked the regions that actually need it. The limited amounts of money are coming to areas such as the north-east. The recent announcements of EU funding are of course welcome, and I congratulate the Government on taking only a small slice of it, as opposed to the 50% slice that I believe the previous Government took. The EU’s recognition of Tees valley and County Durham as areas needing special assistance is welcome, because it will result in large amounts of money. There is more to come from the EU youth unemployment funds, because we qualify on that ground too.

The hon. Member for Burton (Andrew Griffiths) said we should celebrate good news. It was great to see the ground being broken for the Hitachi factory a few weeks ago. It already has its first orders. We have heard about the effect that Nissan has had on the north-east. Hitachi has the potential to be a similar success story, with the supply chain as well as the company itself. We should celebrate that.

As the briefing for hon. Members states, the North Eastern local enterprise partnership is the fourth biggest. It is working on a huge number of activities. Were my right hon. Friend the Member for Berwick-upon-Tweed in the Chamber, he would certainly mention the need to continue with rural broadband investment for Northumberland, and to build on the recent Government announcement on dualling the A1.

The overall region is stronger with two LEPs based on the two main conurbations. I have spoken in previous north-east debates on how I believe that the Tees valley lost out under the old arrangement. The statistics are clear on that. I congratulate Tees Valley Unlimited on its work. As well as enterprise zones and successful regional growth fund bids, it has an economic strategy and a business plan. It is aiming to have 25,000 extra jobs over the next 10 years. It has launched a £20 million contract catalyst fund, giving performance bonds for small and medium-sized enterprises; secured £12 million for a pinch point on the A19; and engaged with more than 750 local businesses.

We are getting much needed improvements to local bus and rail services, including a new rail station at James Cook hospital.

[Andy McDonald (Middlesbrough) (Lab)]

The hon. Gentleman makes an excellent point on transport infrastructure, but, on TVU, does he share my frustration that we are not making the progress we should with the Tees valley metro, which would be a driver for our economy locally?

[Ian Swales]

I share the hon. Gentleman’s frustration—in fact, he has stolen the next sentence of my speech. One way in which we have suffered over the years has been the lack of serious efforts on Tees valley transport, particularly in respect of the metro. It remains a scandal that we have railway line passing within half a mile of the airport but no link to it.

We can see the effects of the improvements in my constituency. Unemployment is down by 8% in the past year and by 15% among the 18 to 24-year-old age group. However, unemployment is still way too high, as is long-term unemployment.

I and the North East LEP welcome pragmatism based on real geography. For example, the area I represent is firmly aligning itself with the Welcome to Yorkshire tourism brand. We are part of the historic county of Yorkshire. We have a race course that is marketed under the Go Racing in Yorkshire brand; a large slice of the Yorkshire coast; and part of the North York Moors national park. It is therefore right that we align with that tourism body. I wish the North East LEP well—it is important for all hon. Members that it succeeds—and welcome the joint meetings that are taking place on matters of common interest such as transport and finance.

The threat from the EU was mentioned. The hon. Member for Stockton South (James Wharton) is well aware of my dismay that he should raise that subject in the House. Even the uncertainty is incredibly damaging to the north-east. I have met business people who say that the uncertainty is not helpful. An exit would be utterly catastrophic for our region.

I hope that the joint meetings take place on a case-by-case basis and that we stop short of creating any new joint bureaucracies in the north-east. We need short steps from ideas to action. We already have successful businesses, great universities and institutions, a tradition of hard work and very strong communities. If we can build on the optimism of Lord Adonis, add more aspiration and talk our region up and not down, I am sure there will be a bright future.