North-East Independent Economic Review

Emma Lewell-Buck Excerpts

Thursday 5th September 2013 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

Thank you, Mr Speaker, for giving me the opportunity to sing the north-east’s praises in this important debate. I start by congratulating my right hon. and hon. Friends and the Backbench Business Committee on securing the debate. I would also like to acknowledge my colleague in the other place, Lord Adonis, and all those who worked with him on the review.

It is fair to say that at times the north-east has an underserved reputation in the media and, sadly, among some politicians. I get fed up with those who do not know how fantastic my part of the world and its inhabitants are, referring to the region as a cold, grim and—dare I say it?— desolate place. I know better, because it is my home. I am so proud of my region, and I am acutely aware of its incredible strengths, which are ready to be harnessed by Government and business. The real failure has been that of national Government, who have overlooked those strengths and neglected our needs, particularly when it comes to infrastructure.

In my constituency, more than one in 10 people are unemployed, including over 1,000 18 to 24-year-olds. Economic stagnation under this Government means that the number of people who have been out of work for over 24 months is four times higher than it was a year ago. Although students in my constituency received excellent GCSE and A-level results at the end of last month, less than a quarter of them will go on to higher education and fewer than one in 10 will start an apprenticeship. The simple fact is that this Government refuse to admit that there are not enough jobs and that, of those that exist, not enough are highly skilled. Job creation and training are essential for the north-east and its people.

The review states that

“lower paid jobs won’t change the economy”.

It is correct. Skills and training are an essential part of transforming our economy. The review recommends establishing a “North East Schools Challenge”, a dramatic expansion of the Teach First programme in the region and the introduction of university technical colleges, which will enable students to study technical skills alongside their GCSEs.

Apprenticeships will have an important role to play. In South Shields there are more apprentices over 25 than under, and the majority of them are at the intermediate level 2, rather than the advanced level 3. It is the level 3 qualifications that employers, and particularly manufacturers, favour. Local businesses in my area are going some way toward remedying that. Ford Aerospace, a local manufacturer, is working in partnership with South Tyneside college to take on 14 school leavers. They will have the potential to earn national vocational qualification level 3 apprenticeships. The Port of Tyne, meanwhile, has taken on seven apprentices, including five teenagers, with more to join later this year.

Ford Aerospace and the Port of Tyne also represent two of the areas that the review highlights as the north-east’s strengths: manufacturing and exports. The north-east’s well-known success as a manufacturer has been maintained in recent years, as it continues to outperform other areas of the country.

It is true that manufacturing provides high-skilled and high-paid jobs and contributes to our local supply chains. The Port of Tyne is one of our great success stories, contributing an estimated £467 million pounds to the region and helping to sustain an estimated 9,500 jobs. But those businesses are not helped by infrastructure that is failing through a lack of investment. The Government announced in the spending review that the transport funding allocated to the north-east will be a third lower than anticipated, and the Institute for Public Policy Research North has revealed that transport project spending per head is over 500 times higher in London than in the north-east.

The second Tyne tunnel, which is in the constituency of my hon. Friend the Member for Jarrow (Mr Hepburn) and feeds directly into mine, has been a success story. By linking the north and south sides of the Tyne, it dramatically reduces travelling times and increases economic activity and potential for business. However, this success is at risk if the investment for the junctions on the north side and the south side is not forthcoming.

It is a shame that the report says little about how smaller towns such as South Shields with a heavy retail and tourist focus can make the most of the plan, especially given that the local authority in my constituency has suffered cuts per head of £262.24—considerably higher than the national average and higher than all our north-east authority neighbours.

We desperately need investment in South Shields. The review sets out a strategy that takes advantage of the north-east’s characteristic strengths. There are difficulties, as my right hon. Friend the Member for Newcastle upon Tyne East and other hon. Friends have stated, but I am totally committed to ensuring that South Shields is part of any transformation plan for the north-east.