Economic Growth: South-west

Debate between Gary Streeter and Neil Parish

Tuesday 5th February 2019 Westminster Hall

[Sir Gary Streeter]

The Minister will be interested to know that there are colleagues here from Devon and Cornwall, so he will get two different answers. I will continue something that I have made a pastime of in my 26-year career to date, which is to sit firmly on the fence.

[Neil Parish (Tiverton and Honiton) (Con)]

The cream is put on first.

[Sir Gary Streeter]

My hon. Friend says the cream is put on first; I will go with him.

As I was saying, our universities are doing well. Exeter, of course, is a world-renowned university and part of the Russell Group. Plymouth University is also making great strides as a university and it is really transforming the city of Plymouth, so I pay tribute to the work that it has done, particularly in the marine engineering and science departments. However, let us not forget Plymouth Marjon University—the colleges of St Mark and St John. It has experienced significant growth over the last two years, bucking the current trend and producing ever-greater results for its students. Intellectual capital in our region is powerfully underpinned by excellent places of learning.

The south-west is also home to one of the largest engineering projects in Europe, at Hinkley C, which represents a massive investment in our region and is producing many skilled jobs.

South-west Growth Charter

Debate between Gary Streeter and Neil Parish

Tuesday 22nd November 2016 Westminster Hall

[Mr Streeter]

I probably won’t. I have never agreed with a single word the right hon. Gentleman has said.

The south-west growth charter calls for a new partnership between the south-west and central Government to achieve the goals agreed at the summit, which was attended by more than 200 people, more than 40 businesses, the CBI, the region’s two local enterprise partnerships, academic institutions and 14 local authorities from across the region. The summit was addressed by the Secretary of State for Communities and Local Government, who made an excellent speech that I know the Minister will replicate today. The Minister is a champion for progress, growth and prosperity. Indeed, he oozes them from every pore.

Despite our many successes and the beauty of our region, the south-west has not known the investment and prosperity of other parts of the United Kingdom in recent times—it falls below even the European Union average. What is more, the region has not always made itself heard with a clear, unified voice at Westminster, but we are open for business. We are looking for growth, and we want to build on the success of the northern powerhouse and the midlands engine. Today, we are setting out a positive vision for the south-west region.

The summit and the wider “Back the South West” campaign have shown a clear, unified business voice outlining a vision for the economic future of Cornwall, Devon and Somerset. The campaign has captured imaginations across our region and is a positive initiative from business, with strong support from local media. I always find that quoting local newspapers is a good way of getting in the local newspapers, and the front page of the Western Morning News on 3 October 2016 said:

“Clean beaches, sparkling seas and fresh air. The South West has it all. But while the natural beauty of the region is incomparable, its economy too often lags behind…given the tools, the South West can really fly”.

That is what this debate is all about.

A key part of the “Back the South West” campaign has been about creating a south-west narrative and speaking passionately at national level about why the south-west region is a wonderful place to live, work and do business. We are all immensely proud of our region, but we face challenges, particularly in light of the forthcoming Brexit. The local enterprise partnerships in our region are already showing how well they can work together to address those challenges and take opportunities.

Infrastructure investment needs and connectivity improvements were the overriding themes of the summit. To paraphrase a politician from years ago, we want to talk about three key things today: infrastructure, infrastructure, infrastructure. I remember going to India a few years ago with some Indian businesspeople, and they talked about the creativity of their people and all the resources and energy in that fabulous country. After the monsoons, they showed me roads that had been swept away and told me, “This is what holds us back in India. It is the infrastructure that we simply can’t manage to put in place.” I could say exactly the same thing about our region. All the creativity, the energy and the skills are there, but we need the infrastructure to get the job done.

We are all aware of the historical challenges in the south-west in relation to traditional infrastructure. For most of us, the key issue is the vital rail links to London and the rest of the country.

[Neil Parish (Tiverton and Honiton) (Con)]

I am delighted that my hon. Friend has secured this debate. We can do much more on the second rail link between Waterloo and Exeter to increase the number of trains and to add more loops so that we can get many more trains through to Exeter and further down into the west country. I would like a junction connecting the rail link to the trams at Seaton.

[Mr Streeter]

My hon. Friend is a powerful advocate for his region, and I know he speaks to the Government. I am sure he knows that, by sheer coincidence, the Peninsula Rail Task Force’s 20-year plan will be launched at 11 o’clock this morning. The plan will spell out the improvement we seek to our rail infrastructure, and it will include the measures he mentions to equip our region for the 21st century.

Road and air transport are critical too, but it is not only about traditional infrastructure; it is also about wider connectivity. Big strides have been taken as part of the Government’s push to increase digital connectivity, but more needs to be done. As Bill Martin, the editor of the Western Morning News, has said, the south-west is known as

“the region where every telephone conversation ends with the word ‘hello’.”

Digital connectivity is more important than ever in this 21st-century world, so making a success of the digitally enabled economy is critical, particularly for our region where peripherality is our challenge and connectivity is the solution. Now that people can do anything from anywhere and now that we have excellent universities in our region, connecting ourselves will continue to make us the most attractive and wonderful place to live, work and raise a family.

--- Later in debate ---

[Mr Streeter]

We are delighted to work with anyone, and we are always delighted to welcome tourists from Northern Ireland who come to enjoy our wonderful south-west.

The Government need to recognise that European funding has contributed greatly to digital infrastructure in the past, and that a home-grown solution must be provided for the future. We need 5G. Tourism has been a key part of the local economy for many years, but it has also meant a lot of low-paid jobs. We in the south-west have core strengths. We are home to world-class universities including Exeter, Plymouth and Falmouth, and to highly skilled workers. Our response has been for businesses, local leaders and academic institutions to create successful business clusters and networks, such as marine around Plymouth, environment around Exeter, and aerospace and defence around Newquay. The clusters have played a key part in the hundreds of thousands of growing businesses across the aerospace, marine, technology and creative industries, helping the region attract and retain talent. However, we need to do more, and we need the infrastructure to support that growth.

We in the south-west have proved that we are successful. Pennon Group, which has taken the lead on the excellent charter, is born of the south-west and headquartered there, and operates across the whole region, in Cornwall, Devon, Somerset and now Dorset. It is one of the UK’s largest listed companies. There are many other success stories, and no doubt some of my hon. Friends will mention them in a moment.

One of the Secretary of State’s key messages at the summit was about devolution. I will touch on that, and I think that one or two other Members might want to mention it as well. He made it clear that if the south-west wants an ambitious devolution deal, it must accept a directly elected Mayor. His argument was that in other countries in the G7, large regions, particularly around big cities, have a lot more power than we in Britain have traditionally given to regions. Too many decisions in Britain are still made in Westminster when they should be made at local level, but local power is often too fragmented. To make sensible decisions on transport, skills and infrastructure, he argued, we need much more joined-up thinking and a proper combined authority, with one elected person shouldering the accountability.

That has given our region food for thought, and discussions are ongoing, but it seems clear that if we want the devolution deal that the region needs and deserves, we must find a way to deliver a western super-Mayor, a strategic leader—[Laughter.] Do you see what I did there? I have been working on that all night. Perhaps it is time we came together to do so. It is what the business community wants. However, there will be different views, and the conversation is ongoing.

The charter that we will deliver to Downing Street later today is not about going cap in hand to the Government; it is about saying that we in the south-west can do an awful lot for ourselves, but we need infrastructure support. The charter supports the Government’s industrial strategy and sets out how the Government can work with the south-west to increase investment and opportunities for people of all ages.

In the charter, the business community outlines its commitments to the region: to collaborate for growth; to invest in a self-sustaining south-west; to invest in innovation, industry and infrastructure; to invest in productive people and retain talent within our region; to invest in our environment and share the benefits of growth. What do we want the Government to do? We want a new Government partnership with the south-west, a firm focus on south-west growth in the Government’s industrial strategy and a funding road map so that the south-west can move from funding reliance to more innovative funding solutions.

We want investment in digital connectivity: ultrafast south-west, a new partnership with the private sector to deliver ultrafast south-west 5G mobile, fibre and wireless broadband to 90% of the population by 2030. We want investment in energy connectivity—switching on to opportunity—to address transmission and distribution restrictions on regional growth, to be completed by 2025, and a renewed focus by Ofgem, National Grid and Western Power Distribution. Crucially, we want investment in transport connectivity to get business moving. We want Government to back the Peninsula Rail Task Force’s long-term plan for rail improvements, which will be outlined in the report published later today, and to re-affirm commitments to road improvement projects in the pipeline, including the A303, the A30, the A38 and, as my hon. Friend the Member for North Devon (Peter Heaton-Jones) would undoubtedly agree, the A358.

As Chris Loughlin, chief executive of Pennon, said at the south-west growth summit:

“We should be able to get our voice heard. We are, after all, a political battleground. Elections are won and lost on how the south-west votes.”

On that, we all agree.

The south-west charter will be delivered to Downing Street later today. The timing could not be better: it is the day before the autumn statement. The south-west has made a profound contribution to this country throughout our history, and we have some very successful businesses in the region. It is a charter for growth; more than that, it is a charter for aspiration and hope for all in the south-west, but particularly the younger generation. Tomorrow, we will look to the Chancellor to re-commit to the south-west. Leaving the EU creates uncertainty, but also opportunity. The south-west is ready to deliver in the new partnership with the Government, provided that we receive the right commitments. That is the challenge for the Minister in this debate. Hinkley Point C, the third runway at Heathrow and High Speed 2 will all have a positive impact on the south-west, but we need more, and we need more infrastructure commitments specifically for the south-west.

It is not just about the autumn statement tomorrow; we are not going away. We will look to future budgets and the UK’s industrial strategy to position the south-west where it should be: not on the fringes, but at the centre of growth. Our two local enterprise partnerships are working hard together already, with valuable input from the business community, led by Pennon, to ensure that our proposals are developed. We need to add Government to that partnership.

To quote the Western Morning News for the third time—

[Neil Parish]

You should get quoted now.

[Mr Streeter]

It is a sure-fire thing. The Western Morning News said in its editorial last week:

“The government listens to those who speak loudly and logically and can make a good case. Too often, parts of the West Country have seemed to be pulling in different directions. Faced with petty rivalries, it has been easy for Ministers to dismiss the needs of our region and divert funds and support elsewhere.”

Not today. Here, the south-west is speaking with a united voice, led by the region’s business community and with far wider support from MPs and many in local government. There is clear momentum behind the campaign. I am delighted to throw my weight behind it, as are my colleagues from across Cornwall, Devon and Somerset, from both sides of this House. Together, we will raise south-west growth up the Government’s agenda and secure our region’s place in the new industrial strategy.

Several hon. Members rose—

Oral Answers to Questions

Debate between Gary Streeter and Neil Parish

Thursday 17th July 2014 Commons Chamber

[Neil Parish (Tiverton and Honiton) (Con)]

4. What progress has been made on introducing individual electoral registration in the last six months.

[Mr Gary Streeter (South West Devon)]

The transition to individual electoral registration in England and Wales started on 10 June, and it will begin in Scotland on 19 September. Online electoral registration is now available in England and Wales, and electoral registration officers have begun writing to electors to tell them whether they need to provide any more information to register under the new system. To support the work of EROs and to help to raise awareness of the transition, the Electoral Commission launched a mass media advertising campaign in early July, which will run until 10 August.

[Neil Parish]

I very much welcome my hon. Friend’s answer. Is not the key to registration to be able to do it as close as possible to elections, but to make sure that it is absolutely secure, so that we know that people who want to vote are genuine voters?

Interest Rate Swap Products

Debate between Gary Streeter and Neil Parish

Thursday 21st June 2012 Commons Chamber

[Mr Gary Streeter (South West Devon) (Con)]

I, too, congratulate my hon. Friend the Member for Aberconwy (Guto Bebb) on his very powerful opening of this debate.

I wish to raise the specific case of London and Westcountry Estates Ltd, a company that owns several business parks all over the south-west and is now in administration as a direct result, I believe, of the Royal Bank of Scotland imposing on it an interest swap arrangement that was never right for its business. In brief, the background is as follows. For many years, London and Westcountry had been a premier customer of RBS. Its directors were encouraged by the bank to expand. For example, in 2006 RBS approached London and Westcountry and encouraged it to add to its portfolio a large business park in Bridgwater, and it lent the company 100% of the finance required.

In July 2008, after the banks had caused the credit crunch, RBS insisted that if the company wished to have its borrowing facility renewed, it must enter into a swap arrangement on the basis of an alleged imminent threat of rising interest rates. In fact, independent analysis has demonstrated that even in July 2008 bank insiders did not really believe that to be true; it was simply a way of selling a product to make a profit on which huge bonuses were paid.

[Neil Parish (Tiverton and Honiton) (Con)]

Is it not time for the Financial Services Authority to use its teeth to put a lot of this right? Banks have abused people’s trust and forced them into these deals as a way of creating higher interest rates for their customers, whereas we want lower interest rates.

[Mr Streeter]

My hon. Friend makes an important point. Thousands of people in this country, dozens of whom are in the Gallery, are looking to the FSA to put right some of the terrible wrongs that have been done in the past few years.

It turned out that the company of which I speak had been persuaded to enter into a swap arrangement for 10 years at a fixed rate of 6.4%. Although it had been told that the deal contained a break clause after three years, it transpired that that enabled only the bank to withdraw and not the customer. The company later learned that breaking the swap arrangement would incur a penalty that seemed to fluctuate on a daily basis but would total millions of pounds. This was not known to it at the time of signing the agreement. The way in which the swap was sold patently breached the terms of the financial regulations surrounding such transactions, as other hon. Members have said.

Interest rates subsequently plummeted in a way that nobody had forecast. We all know that if companies enter into a bad bargain, that is something they have to accept, but this was not just a bad bargain: the company was mis-sold the hedging product to further the interests of the bank, not the customer, and the detailed and complex terms were never fully explained to or understood by the directors of the company.