Oral Answers to Questions

Chuka Umunna Excerpts

Thursday 12th February 2015 Commons Chamber

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

Yes, that is the case. I should make it absolutely clear that the non-paper that we have submitted to the European Commission represents a vision for the digital single market. It is our firm belief that consumers should be able to access content in a fair and reasonable way wherever they are, but we do support the right of industries with internet protocol to sell territorial licensing.

[Mr Chuka Umunna (Streatham) (Lab)]

Following their “Maoist and chaotic” abolition of regional development agencies—the Business Secretary’s words not mine—the Government’s flagship regional growth policy this Parliament has been the regional growth fund, which was mentioned earlier. This might be our last Business, Innovations and Skills questions this Parliament, so can the Secretary of State tell me what percentage of those RGF moneys, announced to great fanfare, have actually made it to, and been drawn down by, the businesses concerned?

[Vince Cable]

I am going off later today to talk about the regional growth fund and its latest successes. Most companies that have received RGF awards are highly appreciative of them. The awards have been highly successful in attracting private investment, which might not otherwise have occurred, and a substantial amount of employment. Of course a significant percentage does not go through immediately because of due diligence. Many of the awards are not completed because the projects proceed anyway or are withdrawn, and that is a consequence of the very careful and prudential way in which we manage money under the regional growth fund.

[Mr Umunna]

The fact is that hundreds of millions of pounds of RGF moneys are gathering dust and are nowhere to be seen by many of the businesses that they promised to help. The local enterprise partnerships that were put in place to do the job of the RDAs were left without appropriate budgets or powers, and the local enterprise zones, which we were told would create 54,000 jobs, have so far created less than a quarter of that sum. There has been a lot of grand talk from these Ministers on their plans to rebalance the economy, but as this Parliament comes to an end—never mind the chaos that the Secretary of State talked about—are not the words that best sum up delivery of schemes to boost regional growth, “utter incompetence”?

[Vince Cable]

If the shadow Secretary of State is so critical of the regional growth fund, is he proposing to abolish it? I suspect not. The reason why some money is not spent is that tests of due diligence have not been satisfied. I am sure that he will acknowledge the fact that, under the regional growth fund, public money is spent a lot more efficiently and effectively in drawing in private investment than ever happened under the regional development agencies, which were wasteful and ineffective.