South-west Growth Charter

Chi Onwurah Excerpts

Tuesday 22nd November 2016 Westminster Hall

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Roger. I, too, congratulate the hon. Member for South West Devon (Mr Streeter) on securing this debate. Owing to lack of time, I will not be able to reflect on all hon. Members’ contributions, which were extremely powerful in sending a message—I am sure the Minister received it—about the importance of the south-west and industry in the south-west. I want to reassure the hon. Gentleman that I do not see the south-west as a sleepy area. I am an MP for the north-east, which some may think is as far away from the south-west as one can get geographically, but in the north-east we are very fond of and admire the south-west. We share a history of mining and agriculture, as well as railways and great engineers, as other Members have mentioned.

The south-west has huge success stories, from the scientists of the Eden project to the engineers of the SC Group and AgustaWestland and the wine producers of the Campbell Valley. We would see such projects thrive if the Government sought fully to unleash the capabilities of all the regions of our United Kingdom. The charter for growth is a key step in achieving that. It is an opportunity for the Government to deliver on their promises, as has been pointed out by hon. Members, particularly by my right hon. Friend the Member for Exeter (Mr Bradshaw).

We could say that, before the election, the Conservative party issued letters of promise for investment in the south-west to be redeemed after the election, but they have yet to be redeemed, as is clear from the contributions so far. I look forward to the Minister setting out how he will make right on the promises so freely given before the election.

[Mr Bradshaw]

One of the welcome differences with the current Prime Minister was an apparent willingness to invest more in infrastructure based on borrowing, which had been a long-time Labour policy. Does my hon. Friend agree that tomorrow will be a test of whether she was serious about that?

[Chi Onwurah]

I thank my right hon. Friend for that intervention. It is absolutely clear that the economic failure of the previous Government to recognise the importance of counter-cyclical state investment has been rejected—in words at least—by the current Government. We will see tomorrow whether that rejection is made solid.

The previous Government’s abolition of the regional development agencies, which supported growth outside London, exacerbated the problem. Growth in the regions of the UK, particularly the south-west, faced economic hardship from austerity, particularly in the way in which it drained demand and reduced income for those in the public and private sectors. The Government have an opportunity to address those failings. I understand the sense of disappointment expressed by many MPs about the current indications that the local LEP will be materially disadvantaged in terms of regional funding because it does not have an elected mayor model. Now is the time for the Government to show they recognise that regions can achieve greatly without necessarily having a big man, a mayor, to meet the Government’s requirements.

The need for the charter is urgent. The south-west received €1.5 billion from the European structural funds throughout the 2014 to 2020 funding cycle and that stimulates development in the region. In fact, the south-west received the second highest amount of money from the European Union, second only to nearby Wales. Business in the area must be concerned about the Government’s toxic combination of indecision, doubt and confusion about Brexit. A commitment to a growth charter would be the first step in providing some answers for companies in the south-west.

Investment in physical infrastructure is one of the very important points in the charter. I must say I admire and respect the south-western Members of Parliament for making it to Parliament today, given the extraordinary lengths that some had to go to to make the journey from the south-west. For proper investment, we need long-term patient funding rather than the current short-term free market approach. For example, as has been mentioned, the A303, A30 and A358 corridor between Taunton, Honiton and Amesbury is key to reducing journey times to markets, promoting the inward investment that will help make the south-west’s economy more self-sustaining, as well as strengthening the already vibrant tourism in the area.

As hon. Members have said, rail links are equally important. The 20-year plan will bring jobs and growth to the region, as well as faster connections to the London airports. Businesses in the south-west should have better access to Bristol, London and the midlands, as well as to Heathrow and Gatwick. Rail links are key not just to link the south-west to other English economic hubs, but to support British industry and manufacturing. This investment should be brought forward and considered a priority. How will the Minister ensure that the Infrastructure Commission is independent and fully funded to make the much needed investment in our regional infrastructure?

However, physical infrastructure is not the whole story. As Member after Member has pointed out, in the face of the fourth industrial revolution, digital connectivity is just as important, so the plan for an ultra-fast south-west is welcome. The Labour Government left office with fully costed plans for universal broadband by 2012. As has been said today, we still have many businesses and individuals who cannot even get access to broadband speeds of 2 megabits, never mind the ultra-high speed mentioned in the announcements made today; and the universal service obligation is still four years away.

The European Union investment that was so welcome in Cornwall will not be available post-Brexit, and yet Ofcom researchers showed that in rural areas 48% of premises are unable to receive speeds above 10 megabits. I look forward to the Minister saying specifically how his Government will invest in rural broadband.

[James Heappey]

The shadow Minister is obviously aware of the speech delivered by the then Prime Minister and Chancellor in January last year setting out the long-term economic plan for our region. Her speech today has reflected that Conservative vision for our region. Should we assume she supports it?

[Chi Onwurah]

I thank the hon. Gentleman for that intervention. I support regional economies that are strong and sustainable, where investment is in people, skills and infrastructure. I support economies that deliver high-quality jobs that enable his constituents to make plans for their own futures, rather than being at the whim of short-term, zero-hour, low-skill, low-value jobs. That is the vision for the future economy of the south-west, and indeed for the country, that I wholeheartedly support.

I look forward to the Minister setting out exactly what his industrial strategy is. The Prime Minister has created a Department with industrial strategy in its title—I have yet to hear what the strategy is. The Prime Minister’s speech yesterday did not set out how the Government will, for example crowd in investment from the private sector in innovation, new opportunities and skills. As a Member of Parliament for the north-east, I too regret the skills brain drain from our regions to the capital because of its stronger economy.

I particularly look forward to the Minister setting out how the Government’s industrial strategy is not simply an ever-growing reduction in corporation tax but one that takes our whole country with it to invest in increased industry, shifting the centre of gravity away from London to support our great regions, such as the south-west. The south-west growth charter is to be welcomed. I look forward to the Minister demonstrating that he will support its implementation.

[Sir Roger Gale (in the Chair)]

Order. Before I call the Minister, due to the incredible self-discipline exercised by colleagues, we have a reasonable amount of time. I congratulate you all on achieving that. We have called 13 Members in one form or another in addition to the Front-Bench spokespeople. I regard that as exceptional. Without wishing to incite insurrection, that does mean that the Minister will therefore probably be able to take interventions and still allow time for Mr Streeter to respond at the end of the debate.

--- Later in debate ---

[Jesse Norman]

I welcome my right hon. Friend’s point. I need not say it myself, because he did so much more eloquently than I could. I recognise the issue that he and my hon. Friend the Member for Torbay (Kevin Foster) referred to, which was mentioned in the Peninsula Rail Task Force report, and on which campaign work has been done. I congratulate them on that.

I am conscious of the passage of time, notwithstanding your incendiary words, Sir Roger, so let me proceed. The key themes of the industrial strategy will be those that have been flagged up in this debate. There will be an emphasis on sectors, the commercialisation of research and development, and innovation, and there will be a particular focus on infrastructure, skills and abilities, and the embedded institutions in particular regions. Those issues have been brought out very well today.

As the hon. Member for South West Devon said, this is a relatively tightly defined debate in terms of place, but an industrial strategy has to reflect the fact that places are very different from one another. Defining what the south-west is and where it ends can be a challenge for the Government, even if it is not a challenge for those who live there. It is an extraordinarily diverse, beautiful region, which has extraordinary assets to be cherished and developed. It is home to world-class universities, very skilled people and hundreds of thousands of growing businesses, many of which are in advanced, high-tech areas. The development at Hinkley Point C, which has already been mentioned, will give the region a major boost. The counterpart to that is the need to invest in smaller pieces of infrastructure.

An awful lot of people’s happiness, certainly in rural areas —I speak as a Member of Parliament for Herefordshire, which can only gaze at the quality of the south-west’s infrastructure and its access to higher education—depends on small-scale road and rail infrastructure, as well as large-scale connectivity. I certainly hope, as I know colleagues do, that that aspect of infrastructure development will be reflected in the plans to come.

[Chi Onwurah]

Will the Minister give way?

[Jesse Norman]

I am afraid I am running out of time, owing to your excellent work, Sir Roger.

[Chi Onwurah]

He has not said anything; it was a totally content-free speech.

[Jesse Norman]

I am happy to take an intervention with your approval, Sir Roger.

[Chi Onwurah]

Before the Minister finishes, he said that the industrial strategy will take some time and that it will take allowance of skills and sectors. Will he give a concrete indication of how long the consultation will last and when the industrial strategy will be published? During that time, will he give a running commentary on what is in the industrial strategy so business can make appropriate plans?

[Jesse Norman]

It is difficult if remarks one has already made have not been heard. I have already said that the industrial strategy will be launched in the form of a consultation paper in the next few weeks. It is not a thing in and of itself. The Government anticipate that there will then be contributions and a further refinement. At some point, it will be published, and it will then be a reference document from which regions and businesses can take comfort and refer to when making their own plans.

That is the structure of the industrial strategy. It is fair to say, in that context, that the south-west has made its voice heard in a way that few other regions have succeeded in doing. It has done wonderfully well in flagging up the advantages of that part of the world. It is a pleasure for me to work with the two LEPs that have been mentioned. I salute the work of the south west growth summit and the charter. We can only hope that that work will continue to be transferred into local energy and further Government investment.