Manufacturing (East Midlands)

Debate between Andy Sawford and Jonathan Ashworth

Tuesday 12th February 2013 Westminster Hall

[Jonathan Ashworth (Leicester South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. As an east midlands MP, I hope that you will later be eating a bag of Wotsits crisps made at the Leicester Walkers site.

I thank the hon. Member for Sherwood (Mr Spencer) for his success in securing the debate. He spoke well, and I learned something about Calverton of which I was not aware, although I will of course be checking it out later with my father-in-law, who was his geography teacher at school in Calverton only a few years ago.

I want to repeat some of the points made about the importance of manufacturing to the east midlands economy. Manufacturing makes up a greater part of the economy in the east midlands than in any other English region. According to figures I have seen, manufacturing gross value added was around £12.5 billion, or 15.8% of total regional GVA output—a higher proportion than any other region—compared with an average of 10.3% for the UK as a whole. Manufacturing employment in the region amounted to 265,000 or more than 13% of total employment—again, the highest proportion of any region, and it compares with a UK average of about 8.5%. Our manufacturing firms score highly on productivity, with many of our sectors outperforming national averages. We have already heard not only about many of the big ones, such as Toyota, Rolls-Royce, Bombardier, Caterpillar and Walkers, but about the many smaller manufacturers that make up our huge manufacturing base.

The hon. Gentleman talked about food and drink. In Leicester and Leicestershire, more than 11,000 people are employed in food manufacturing, so it is important for our region. As he said, some of the reasons our region does well is that we are central, our development in the past has been driven by coal in the north and ironstone in the south, and we have concentrations of grade 1 agricultural land. We do not have any major, dominant economic centre. I would, of course, argue that Leicester is the premier city in the region, not least because we have a former king of England there.

[Andy Sawford]

On the point of manufacturing, it is a shame for those of us who feel that Fotheringhay, the birthplace of Richard III, should be his final resting place, that my hon. Friend is manufacturing a case for Leicester.

With regard to the food and drink industry, does he recognise that, while there is a fine tradition in all parts of the region, including my constituency, in many ways Government policy has helped to shape some of the opportunities for manufacturing? For example, in the 1980s the enterprise zone helped to bring lots of food and drink companies to Corby. Will he support my case that we ought to have an enterprise zone today in Corby in east Northamptonshire, where, as he knows, there are high levels of youth unemployment?

[Jonathan Ashworth]

I thank my hon. Friend for a point he puts well. However, we in Leicester have fought off York and will certainly fight off his constituency when it comes to Richard III.

On balance, the lack of a major dominant conurbation is a strength for our region and its development opportunities, even if it does sometimes mean that we tend to lack a regional identity. That brings us one or two disadvantages that I will touch on in a few moments.

Although the debate has been conducted in a good cross-party spirit, there are problems in our economy, in the cities and former coalfield areas. Unemployment rates remain too high, and are much higher than they were at the 2010 election, even if they have come down a little in recent months. Youth unemployment rates are still too high. Let us be clear: we are seeing a huge squeeze on incomes and many changes to benefits, such as the bedroom tax and the council tax benefit changes. Regardless of the rights and wrongs of that debate, that will suck money out of the local economies of the east midlands. Household consumption will be depressed again.

In the past, Ministers have talked about wanting to rebalance the economy, and we would all agree with that. However, we would like more details about what that rebalancing means. I know that Ministers want to move away from an economy that is solely dependent on public investment and household consumption, towards one that is more in favour of export-led recovery.