Draft Tees Valley Combined Authority (Election of Mayor) Order 2016

Anna Turley Excerpts

Tuesday 12th July 2016 General Committees

[Grahame M. Morris]

Yes. I am seeking assurance, Mr Gapes, that, should we go forward with an elected Mayor, the Minister will give a pledge and cast-iron guarantee that the EU structural funds in particular will be made good. That is key to the deal.

[Anna Turley (Redcar) (Lab/Co-op)]

rose—

[Grahame M. Morris]

Do you mind, Mr Gapes, if I give way to my hon, Friend?

[The Chair]

That is a matter for you.

[Anna Turley]

There is an important point here, which is related to the devolution deal. The combined authority was going to control the EU funding. We are seeking assurances, if we are to lose that money, of what that means in the longer term. We want clarification on the instability over inward investment that we are facing at the moment.

[Grahame M. Morris]

I am grateful to my hon. Friend for her intervention. That is precisely the point I was trying to make in a rather laboured way, for which I apologise. That is key to whether the deal can go forward. The control of EU funding is an essential part of the devolution deal. We seek reassurances from the Minister to the Tees Valley Combined Authority that expected levels of funding, including those expected from the EU, will be maintained, not just in the short term—without second-guessing the Minister’s answer— of the next two years, but in the longer term. We seek assurances that there will be local control of these funds.

In the light of the Brexit vote, there are understandable concerns about the impact on inward investment. Can the Minister offer some comments about how the Government are going to address potential instability and uncertainty on inward investment? That is key to the Tees Valley—as the Minister well knows having a constituency there—given the importance of the chemical industry cluster and the associated manufacturing industry.

I commend the work of the five councils in the Tees Valley Combined Authority and their efforts in seeking to secure the best deal possible for their area and their communities, despite the constraints placed upon them by Government. The £15 million devolution deal—that is £15 million a year over 30 years—can never fully compensate for the devastating cuts to local government. The Tees Valley area has already seen cuts in excess of £240 million per year since 2010: a huge sum of money to lose from local authority budgets. I appreciate the concerns about the Government’s commitment to investment, not only in the light of the referendum, but in view of the gross disparities between infrastructure spending in the capital compared with the regions. I ask the Minister to say a few words about how we are going to address these huge regional disparities.

The commitment to devolving education and transport can ring hollow when considering recent announcements regarding academies and the Bus Services Bill. I know we are not dealing with that here, Mr Gapes, but it is relevant to the package of the powers the elected mayor and the combined authorities will exercise.

I recognise that we are at the start of the devolution process and when the deal is complete, it will only be the first stage. While I am in post, I will support—

--- Later in debate ---

[James Wharton]

The Government will of course consider any proposal that comes forward from a combined authority, but we have been clear throughout this process that, where areas want a significant package of powers, there is an expectation that that comes with the clear and sharp democratic accountability of an elected Mayor. I will not try to use words to avoid the reality of this—I have been very clear about it. We cannot force any area to accept a deal, and we cannot force any area to accept a Mayor. The Government’s position is that, where areas want significant deals, we expect a Mayor to be part of that package. It may be an issue on which there is disagreement across the Floor of the House, but it is one on which we have been clear throughout this discussion and debate.

The shadow Secretary of State also raised the issue of Brexit, but specifically with reference to European funding. He referred to control over European funding being part of this devolution deal. It has been agreed that intermediate body status will be delivered. That issue was also raised by the hon. Member for Redcar. I give what assurances I can, in that at least for the time being we remain a member of the European Union, so nothing will change until exit is agreed. We of course must see how the process evolves and unfolds.

The truth is that we are a significant net contributor to the European Union and so, on exit, will have the opportunity, taking control of money that Europe currently decides how to spend, to spend it in accordance with the interests of this country and, indeed, under the direction of its people and Government. My intention will be to advocate very strongly indeed the continuation and, indeed, improvement of funding to the regions from within Government, but nothing is going to change in the near future. I encourage local areas to continue to pursue economic growth and to make a positive case for the projects for which they want support. Indeed, I support the Tees Valley in doing that, and in continuing to deliver the letter and the spirit of the deal agreed between its local authority leaders and central Government.

There has been a welcome rise in inward investment across the north of England in the past two years. It is up significantly, and we want to continue to encourage the process. I have no doubt that stability is something that drives decision making, and that those who choose to invest look for it. That is why I welcome the decisions that have been taken in my party to offer the country stability in recent days. I hope that for Her Majesty’s Opposition that process will also be brought swiftly to whatever its conclusion will be.

The Shadow Secretary of State also said—rightly; this is an issue on which we agree—that the process is at its start. Agreeing the devolution deal is not the sum total of what will be done. The Government’s ambition, which I hope is shared by local areas, is for devolution to continue; they want additional powers to be devolved and the areas in question to identify additional opportunities, which, in discussion with the Government, can be delivered into local hands to drive economic growth.

[Anna Turley]

I appreciate the Minister’s point about the process being an ongoing one, but is not there something odd about the fact that the Committee is here to agree a statutory instrument about a Mayor when we do not really know what powers there will be? There will be a further statutory instrument in the autumn. I know there is a consultation document, but it seems we are putting the cart before the horse in agreeing to a Mayor before we even discuss their powers.

[James Wharton]

I do not agree. There is a deal document that is very clear about the powers that the Mayor will have. I am saying that there will be an opportunity for the local area and leaders to ask for further rounds of powers, if they want to. The measure is about establishing the framework through which they can be delivered, and about a process that is taking place—and has taken place—in all the areas that have agreed to such deals. This week, as I have done in previous weeks, I will be dealing with other statutory instruments of this type. If we do not put the mechanism in place, there will be nothing to which to devolve further powers. We know what is in the deal now. We know that there is ambition to go further, and I welcome those discussions. We know the agreed mechanism by which that can be done. That is entirely the right approach.

The hon. Member for Darlington asked about the Tees Valley and she is right; I would tend to use the term “Teesside”. But of course that does not include Darlington, as I know she is aware, and we are talking about a devolution area which was proposed by local authority leaders, not Government, and which does include Darlington. Therefore, the label that applies is Tees Valley, whether people like it or not. However, I want to make it clear to her that I maintain the view that the local airport should be named Teesside airport rather than Durham Tees Valley. It is a campaign with which I had rather limited success; however, I should welcome her support for that if she were minded to offer it.

The hon. Lady also asked about the Mayor’s salary and the mechanism for it. The Mayor’s remuneration would be a matter to be devolved locally. The local combined authority would take advice, of course, from the independent body on those matters, as happens for councillors’ allowances, but that would be for local determination. It will, I have no doubt—although I do not want to prejudge what it might be—be significantly less than the £15 million a year that will be brought to the area as a result of the deal, and if it were not I would join her in protesting about the proposed level of remuneration. I think it is unlikely to be of such a scale, or anywhere near it.

The hon. Lady also raised concerns about a single voice for different areas, and I do not think there is great disagreement between us on that, at least as far as recognising that many different communities and identities are contained in the area described as the Tees Valley. What we are doing is not about overriding or diluting those identities; it is about recognising that there are some things that are better done at a broader level, looking at the local economy and economic factors as a whole. The Tees Valley is a sensible economic area and was determined by local authority leaders. When the Government examined it, it stacked up and made sense, and met the criteria that we would expect, to be suitable for devolution. That in no way undermines or replaces pre-existing local identities, whether towns, villages, boroughs or other levels in the communities that make up the area.

What we are considering is an important step for the Tees Valley. It is a significant opportunity to transfer powers to local people to determine their economic future. I welcome it. We have had a helpful and broad-ranging discussion about the order’s implications and I hope that the Committee will support it.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Tees Valley Combined Authority (Election of Mayor) Order 2016.