South-west Growth Charter

Debate between Chi Onwurah and Ben Bradshaw

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.