Middlesbrough Development Corporation

Debate between Andy McDonald and Ian Paisley

Tuesday 14th March 2023 Westminster Hall

[Ian Paisley (in the Chair)]

I will call Andy McDonald to move the motion and I will then call the Minister to respond. There will not be an opportunity for the Member in charge to wind up; that is the convention for 30-minute debates, as he will no doubt be aware.

[Andy McDonald (Middlesbrough) (Lab)]

I beg to move,

That this House has considered the Middlesbrough Development Corporation.

It is a pleasure to see you in the Chair, Mr Paisley.

On Friday 24 February, Middlesbrough Council held an extraordinary general meeting, convened by the monitoring officer, to determine whether the council supported the proposal to create a Middlesbrough development corporation. The proposal was put to the vote, and 13 councillors voted to approve and 17 voted against. Many councillors from the ruling Tory-independent coalition did not attend, although they were all given proper notice of the meeting. Obviously, not all councillors can be expected to turn up for every single meeting and there will be good reasons for some absences, but, quite frankly, the appallingly low turnout for such an important vote was pathetic.

The council decided not to approve the MDC, but three days after the council had made that decision, 25 councillors, led by the elected Mayor, Andy Preston, wrote to the Government saying that the council decision should be ignored and the Minister should instead accept their letter of acquiescence as being the true position of the council. I do not need to stress just how ridiculous it is that the Government, in their determination to overreach local democracy, are prepared to ignore the formal council decision.

Indeed, the Secretary of State for Levelling Up, Housing and Communities has subsequently written a letter in which he outrageously describes the vote of the local authority as being born of “misinformation and mischief making”. That is incredibly partisan language from the Secretary of State, but perhaps we should not be surprised.

--- Later in debate ---

[Jill Mortimer]

I wanted to intervene on the hon. Member for Stockton North (Alex Cunningham) because he mentioned my constituency.

[Ian Paisley (in the Chair)]

Order. The hon. Member for Middlesbrough has the floor, and he will speak and not be interrupted. If he wishes to give way, he will indicate that he will give way.

[Andy McDonald]

Thank you, Mr Paisley.

Other people have been proposed to serve on this board as well. They include Paul Booth—a former executive of SABIC, the Saudi Arabian petrochemical company—who will be chair. I have known Paul for years. Although he is not a resident of Middlesbrough, he undoubtedly has well-intentioned views about what he thinks is in Middlesbrough’s best interests—but no one has elected him.

Other non-elected appointees include the chief constable of Cleveland, who does not even live in the Cleveland police force area, let alone in Middlesbrough. He is, of course, a senior police officer, but I am not sure what experience he has of urban regeneration. His best contribution to our town would, in my view, be to do his job and make our streets safe for residents and businesses.

Similarly, another board member will be the Conservative police and crime commissioner for Cleveland, Steve Turner—a man who, let us not forget, received a caution from Cleveland police for theft from his employer. Again, he does not reside in Middlesbrough, I am not aware that he has any urban regeneration experience or expertise, and that is not his job.

I have significant concerns about the basis on which the Tees Valley Mayor, Mr Houchen, will select board members. He will have the power to appoint and dismiss them, much as we have seen him do at the South Tees development corporation. That has been evidenced in a raft of investigative articles by Private Eye, which he dismissed as a comic book. Private Eye has unearthed, in great detail, squalid and questionable dealings at the South Tees development corporation, and it has exposed the squandering and misuse of hundreds of millions of pounds of public money. That money was primarily deployed to make the private joint venture partners even wealthier beyond imagining. In respect of that, there will one day be a reckoning.

[Peter Gibson (Darlington) (Con)]

I refer back to the point that the hon. Gentleman made about the involvement of the police and crime commissioner and the chief constable. We in Tees Valley understand the challenges and difficulties that antisocial behaviour brings to the regeneration of a town. The hon. Gentleman has significant antisocial behaviour issues in his constituency and, in my view, the involvement of the police and crime commissioner and the chief constable on the board is really important.

Just last week in Darlington, Labour councillors voted against planning permission for investment in Teesside International airport. What is it about the Labour party in Teesside that means it has to oppose and stop every investment?

[Ian Paisley (in the Chair)]

Order.

[Andy McDonald]

On the point the hon. Gentleman made about Darlington, the Labour party often gets the charge that it is somehow anti-growth. That is utter tosh. It is the most pathetic jibe, and Conservative Members would be better served by engaging in intelligent debate.

On his original point, if the hon. Gentleman genuinely wants to talk about crime, disorder and public order on our streets, I suggest that that is what the police should be doing. I do not expect them to be serving on regeneration boards. They should get out, do their job and ensure they have people on our streets looking after our businesses and making sure people are safe. Serving on regeneration boards is not their function, and they should get on and do the job they were put there to do.

There are lots of questions emerging about how the South Tees development corporation and others have operated. My clear preference would be for the much-needed urban regeneration in central Middlesborough to sit with the elected council. In turn, the council can rely on its internal officer expertise, and, where necessary, external expertise from established professional organisations with track records of successful urban regeneration. Dealing with regeneration in that way ought ordinarily to ensure accountability and transparency.

Although I share the concerns expressed by the right hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) about how duties have been discharged by the current political leadership of Middlesborough Council, which runs until May of this year, I fear that the likelihood of there being proper scrutiny and accountability of the proposed MDC is very low. Yet again on Teesside, a board made up of hand-picked individuals will be making important decisions about how valuable public funds are used without any meaningful accountability or scrutiny. Indeed, the MDC will acquire planning powers that currently—and rightly—belong to the council, which will now lose valuable fee income and business rates. That will inevitably place more pressure on the council, which could lead to further cuts.

[Andy McDonald]

No; the right hon. Gentleman will get his say. He asked me if he could participate in the debate, and I said yes. I will not give way any further, because I want to give him the opportunity to make his contribution.

Those pressures could lead to further cuts in Middlesbrough. We could be walking into yet another public-private joint venture that will end up transferring assets out of the domain of the MDC and into private hands, as per the recent shenanigans at the South Tees development corporation.

Of course I want investment in Middlesbrough. After 13 years of this Government, almost half the children in our town live in poverty. The town mayor and the executive have just voted through a budget that will turn off the street lights, reduce our libraries and seriously deplete our warden service. I see economic growth and development as one of the key levers to turn that around. In addition, we need a more equitable settlement from central Government, but that is a debate for another day.

We have done some great work in Middlesbrough, despite difficult economic times. Here are some examples of the significant successes. TeesAMP, next to Newport bridge, is a state-of-the-art advanced manufacturing park. It hosts many high-quality businesses at the cutting edge of their respective industries, providing high-quality, high-wage jobs. Boho Digital City is a great success story, with over a decade of starting up and sustaining digital businesses. Centre Square in Middlesbrough brings in the likes of GB Bank and AXA UK, to name but two. The historic quarter around Exchange Square works with Historic England, which has funded some wonderful work. The regeneration and redevelopment of our railway station—a subject very dear to my heart—brings better connections and opportunities for the much-needed economic growth of our town.

All those achievements were begun under previous administrations. The clear evidence is that we already have the systems in place to make this work and to enable Middlesbrough to attract investment. It makes little sense, in my mind, to create another layer of bureaucracy. All those achievements were made by people working together through the various democratic institutions. In particular, they were often in partnership and co-operation with the Tees Valley Combined Authority—from when it was set up before Mr Houchen was elected by what were then five Labour councils across the Tees valley, and continuing subsequent to his election.

There is no reason to suppose that those sorts of arrangements could not work again. We should deploy funds in a way that works, and that holds in our institutions of local democracy. All too often, the rules on good governance, integrity and sound money are undermined, with democratic and accountable control taken away from the people and given to chosen individuals to enable them to use vast quantities of public money as they see fit. I fully anticipate that the Government will plough on regardless, but they need to know that the MDC, despite the absence of transparency and democratic integrity within its structure and architecture, will be held to account by the people of Middlesborough for its decisions. I look forward to the Minister’s response.

[Ian Paisley (in the Chair)]

In line with protocol, Mr Simon Clarke sought permission from the mover of the motion and myself to make a short speech. I will give you about four minutes to make that speech, Mr Clarke. The Minister is being very flexible with you as well.

Transport

Debate between Andy McDonald and Ian Paisley

Wednesday 5th February 2020 Commons Chamber

[Andy McDonald]

I agree entirely. It is remarkable that London is the only city of any comparison that is without a central Government grant. Some of the measures that we would be taking, were we in government, would have gone some way to addressing that. Madam Deputy Speaker, I will not be taking any more interventions. I am very much aware that a great number of people want to speak in the debate, so if colleagues will bear with me, I will carry on.

We said that we would totally reverse the cuts made to bus services since 2010, then invest the same amount again. That would allow for 3,000-plus route cuts to be reversed, and for the expansion of new services through the redirection of funds currently being channelled into road building. We could then provide free travel for the under-25s in the areas that own or regulate their buses, in order to address generational inequalities, encourage lifelong public transport use and help reverse the long-term downward trend in bus patronage in England outside London. Electrifying 35,000 buses by 2030 would reduce their emissions by 72% as well as boosting manufacturing. However, progress has been painfully slow over the past decade, and I wonder whether the Secretary of State might furnish us with any proposals in that regard.

Similarly, we have seen rail fares rise by 40% since 2010. In contrast, fares in Germany were cut by 10% at the start of this year to encourage more people to travel by train in order to cut emissions. It is frankly absurd that UK rail fares have risen so excessively while the cost of short-haul flights remains low, with taxes broadly frozen. That is why we pledged in the election campaign to reduce fares by 33% by using part of the revenue brought in by vehicle excise duty. This financial offer to commuters would have encouraged the shift from car usage to public transport that will be essential in the coming years if we are to be successful in decarbonising the transport sector.

However, capital investment in our railways will also be required to reverse the electrification cancellations that we have seen under the Conservatives. Despite the clear environmental and performance benefits of rail electrification, the Tories cancelled the promised electrification on the midland main line, on the line between Windermere and Oxenholme, on TransPennine and on parts of the Great Western route.

Rail freight is a low carbon transport choice, emitting 76% less carbon than the equivalent road journey, and has massive potential to lower UK transport emissions, so I regret that the Government have done so little to encourage it. For example, the TransPennine upgrade has no new capacity for freight. Labour’s policy of bringing the railways into public ownership would allow a long-term strategic approach to investment, delivering a more consistent approach that would better support UK industry and help to decarbonise our railways.

I welcome Eurostar’s announcement this week that full direct rail services from London to Amsterdam will begin on 30 April, with direct services to Rotterdam beginning on 18 May. More rail links between the UK and Europe are vital to reducing carbon emissions from short-haul aviation, and I will work with EU colleagues to promote better rail connectivity.

Ahead of the Budget next month, I remind the Transport Secretary and the Chancellor that we cannot road build our way out of the climate crisis. New roads quickly fill up with cars, and “predict and provide” is a 20th-century concept. Ministers claimed that the road investment strategy for motorways and major A roads between 2015 to 2020 would revolutionise the network. In fact, one in three of the projects has been cancelled or delayed, and the strategy is in complete disarray. Road spending should focus on providing more capacity for sustainable transport, such as provisions for bus priority and integrated transport schemes. We need to develop a more holistic approach to transport funding that is geographically rebalanced across the UK.

Labour committed to repurposing vehicle excise duty to establish a sustainable transport fund. Such a fund could provide £550 million a year for walking and cycling routes, £1.4 billion a year to fund free bus travel for under-25s when bus services are re-regulated, £1.3 billion a year to restore the 3,000 bus services lost and deliver an additional 3,000 on top, and £500 million a year to fund local road improvements and maintenance. Most journeys start and end on local roads, which are also used by cyclists and pedestrians, so fixing potholes and better maintaining those roads and pavements should be a priority.

Tackling road transport emissions requires an enormous investment in electric vehicles to see a just transition of the UK’s fleet of road vehicles.

[Ian Paisley (North Antrim) (DUP)]

Will the hon. Member give way?

[Andy McDonald]

I am aware that many people want to speak, so if the hon. Gentleman will forgive me, I will carry on.

Labour set 2030 as the date for ending the sale of new diesel and petrol cars. The Government’s new target of 2035 is not ambitious enough for our climate, our industries and our motorists. It is also deeply worrying to hear that the Government may be planning to scrap the £3,500 electric car grant when it expires next month. Perhaps the Transport Secretary can confirm whether that is the case when he comes to the Dispatch Box.

Electric vehicles are already cheaper over the lifetime of a vehicle, and up-front costs are likely to fall sharply by the mid-2020s. It makes sense for the supporting industry and for reducing emissions that motorists should transition soonest. Last year, Labour announced plans to invest £3.6 billion in a vast expansion of the UK’s electric vehicle charging network and to offer 2.5 million interest-free loans for the purchase of electric vehicles, saving buyers up to £5,000. Furthermore, our plans included the introduction of a targeted scrappage scheme to replace cars over 10 years old powered by fossil fuels with new electric cars. We would also have put 30,000 electric cars on UK streets through publicly owned community car sharing clubs. In contrast, the Government have repeatedly slashed EV subsidies and have failed to invest any of the electric vehicle charging infrastructure fund announced in 2017. Not only is that preventing the UK from making necessary emission reductions, but it leaves our motor manufacturing industries lagging behind foreign counterparts.

In the midst of an air pollution crisis, active travel remains massively underfunded. The Government are predicted to miss their own cycling targets, achieving just a third of the 800 million extra trips that they hoped for by 2025, and much of the growth in cycling is limited to London. Labour set out plans to boost cycling and walking and to make England one of the most cycling and walking friendly places in the world, making our towns and cities cleaner and greener, and transforming the environment, travel opportunities and quality of life right across the country. The emissions-reducing plan would also have addressed the local air pollution crisis and the epidemic of ill health caused by sedentary lifestyles. This investment in walking and cycling would, for the first time, have made active travel a genuine option for the many, not just the brave.

The plan included: doubling cycling for adults and children; building 5,000 km of cycleways; creating safe cycling and walking routes to 10,000 primary schools; delivering universal affordable access to bicycles and grants for e-bike purchases; and providing training for all primary school children and their parents, extending training to secondary schools and making training available for all adults.

Aviation emissions are a particular issue: in the UK, they have more than doubled since 1990, while emissions from the economy as a whole have fallen by around 40%. The Government plan to build a third runway at Heathrow. According to the Department for Transport’s projections for Heathrow expansion, the UK’s legally binding targets under the Climate Change Act 2008 will be missed. The Government should rule out any expansion that is not compatible with our climate targets. Who are we expanding airports for?