Currency in Scotland after 2014

Debate between Guy Opperman and Linda Riordan

Wednesday 12th February 2014 Westminster Hall

[Mrs Linda Riordan (in the Chair)]

Order.

[Guy Opperman (Hexham) (Con)]

Will the hon. Gentleman give way?

--- Later in debate ---

[Mrs Linda Riordan (in the Chair)]

The Member in charge of the debate gets as long as they want for their first speech, and then the time allotted is down to the number of Members who wish to speak. Rather a lot of Members wish to speak in this debate.

[Guy Opperman]

I speak as a Brit, a mongrel Englishman, a lover of Scotland and an MP whose constituency borders Scotland. Were there to be Scottish independence, I have no doubt that tourism and trade would continue, but it would be naive not to accept that trade on a cross-border basis would unquestionably be affected. That is not some Conservative Member of Parliament speaking; that is the opinion of the chambers of commerce, local authorities and business groups I have spoken to on both sides of the border.

Some of the key questions have been raised by the hon. Member for Edinburgh South, but I have some others. On what basis would Scotland get to keep the pound? Would it be used informally, just as some Latin American countries, Greece and Montenegro use other currencies? Why should the Bank of England take notice of Scotland in setting monetary policy? Why should the Governor travel to Edinburgh and be interrogated by Scottish MPs in such an event? After independence, surely the Governor would owe his appointment entirely to a rest-of-UK appointment system? At that stage, would the First Minister come to London seeking an audience to negotiate? The arguments that have been put forward are, respectfully speaking, a farce.

I also suggest that, when one goes through Mark Carney’s speech and looks at the currency options, it would seem that the SNP proposes to keep the pound as part of a formal sterling currency union agreed with the rest of the UK. However, the SNP seems not to have contemplated the fact that that would involve giving up huge amounts, as Mark Carney made very clear, as well as requiring the agreement of all other parties. The SNP seeks independence but would require and accept greater control by a third party.

Regional Government (North)

Debate between Guy Opperman and Linda Riordan

Wednesday 30th January 2013 Westminster Hall

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

I am delighted to have secured the debate and to introduce it under your chairmanship, Mr Amess.

Regional government is an issue that is resonating with people from across the north. The campaign for strong, powerful and effective government for Yorkshire, the north-east and the north-west has been growing and gathering momentum in the past year. Its time has arrived. The arguments are strong and the case powerful. In the past 12 months, the debate has been led and championed by the Hannah Mitchell Foundation. It has outlined the benefits that regional government can bring to the northern area, how it can generate economic growth and social cohesion and how it can enable key decisions to be made in the north, by the north.

Regional government is supported not just by individuals but by business, local authorities and key agencies. It is time to move the debate forward. The arguments now need to be understood and taken up by central Government. Whitehall should not be fearful of devolving powers to the north; it should be embracing that. Without its support, the required political progress will not be made, or a watered-down version—a talking shop—might be applied. That is the last thing our region wants or needs. Indeed, I heard the Chancellor of the Exchequer over the weekend outlining how too much economic power was concentrated in London and saying that it was time to generate growth in the north. Will the Minister outline today some of the ways in which that can happen and say whether he would like to see a form of regional government helping to achieve the necessary economic growth and other benefits for the northern region?

[Guy Opperman (Hexham) (Con)]

I congratulate the hon. Lady on securing the debate, but does she not agree with me on the following? This matter was decided in the north-east in July 2004, when an overwhelming majority of 77.9% rejected a regional assembly.

[Guy Opperman]

The previous Government then decided not to proceed in the north-west, either. Given that, surely this matter has been settled, or is the hon. Lady saying that matters have changed since then?

[Mrs Riordan]

I thank the hon. Gentleman for that question. I will come on to the 2004 vote in a little while. It was indeed a very low turnout, as my hon. Friend the Member for Great Grimsby (Austin Mitchell) says. People recognise when we are talking about a talking shop and not talking about action. I think that the debate has moved on. The campaign has been growing in momentum in the past 12 months, as I said. The Hannah Mitchell Foundation is growing and getting support from all quarters.

[Guy Opperman]

I am most grateful to the hon. Lady for giving way again. I do not want to keep interrupting her, but last May certain parts of the region were offered mayors, who would surely be a form of devolved administration and powerful local leaders, but they were rejected. Given that that forms part of the “January declaration” on the north-east, does she not agree that a mayor would be a very good way forward whereby cities could come together and have a powerful local voice driving things, much as people do in London or Paris, for example?

[Mrs Riordan]

I thank the hon. Gentleman again for his intervention. No; I would like to see a regional government for the north, using its powers to fight for the whole region, not individual areas. That is done very well now in some cases, but I want to see the whole region being represented.

As my hon. Friend the Member for Leeds West (Rachel Reeves) said in an excellent speech to the Institute for Public Policy Research on Monday, we need

“long term reforms, including a coherent industrial strategy, to make the most of the North’s strengths and to give businesses and working people of the North a better chance…such an agenda will only work”

if it is

“in the hands of the people who are best placed to move it forward”—

that is, if there is a radical devolution of power and resources to the north.

I shall outline what is needed. We do not want local authorities to be undermined; we want them to be a key partner of strong regional government. The regional and local government structures should complement each other and work together positively. This is about transferring powers from Whitehall and outlining areas of policy on which regional government could provide a real focus, with powers drawn to the north, for the north. It is not about weakening Britain, but about making it stronger, more democratic and economically successful. We have only to look at post-war West Germany to see how successful regional government has been in creating an economic and political powerhouse. As long as England remains so centralised and London-focused, the north’s economy will never reach its full potential.

The recent key report by the Institute for Public Policy Research was as timely as it was revealing. Yes, we can differ about its conclusions, but the basis on which its findings were made cannot be ignored. I want to avoid throwing figures at the Minister. We all know that unemployment is worse in the north than in the south, that job opportunities in the north are fewer and that public sector spending cuts are not as easily absorbed in towns such as Halifax and Huddersfield as they are in Harlow and Huntingdon.

The IPPR report underlined how the economic potential of key towns and cities across the north could be a powerhouse of economic growth in the next 20 years, and how key powers need to be transferred to the region by central Government. The levers of power urgently need releasing and sending back to our regions so that areas such as Leeds, Liverpool, Hull and Newcastle can have their potential tapped, economic opportunities can be released and social changes can be met. It is time for central Government to let go a little bit.

Over a period of years—perhaps even decades—the increasing centralism of decision making has left the north without a proper democratic and accountable voice that can champion the area, boost investment and protect jobs. Yorkshire Forward did many good things and was a strong voice for regional development, but that, sadly, has long gone. I want to see something much stronger than that—elected regional government that has real powers and the chance to do things, not just talk about things.

We can argue about the mechanisms and structures at a later date. What we need is a green light, or even a nod in the right direction, that regional government is going to happen and can be achieved. Yes, some could say that the matter was rejected by the people of the north-east in a referendum in 2004. That was little wonder when what was on offer was lukewarm at best. People can recognise a talking shop from a long way off. I do not want a northern debating chamber that is full of hot air—that talks but does not do—nor one that will just create jobs for the boys. I want to see better employment prospects for the people of Halifax and other towns in the north, and regional government is one way in which that can be achieved.

Regional government could tie together transport policy, planning and job creation. A good example is the current plan to devolve power for rail franchising to the north of England, which I very much welcome. However, special governance arrangements are having to be put in place to ensure that no fewer than 33 local transport authorities have a say in the process. How much easier would it be if there were one accountable body for the north that could provide accountability to the proposed rail in the north executive and drive forward a much-needed programme of investment in our rail network?

We are, I believe, at a turning point in relation to our democratic structures. We talk about transferring powers back from Europe and of transferring more powers to Scotland, perhaps with independence. Wales has its own Parliament. Why should central Government not enable us to have a regional government for the north, north-east and north-west?

[Mrs Riordan]

I thank the hon. Gentleman for his intervention. Yes, we can build on what is already happening. The HS2 decision shows that the Government recognise that we need more investment and jobs in the northern region. Transport is one way we can move forward. I, of course, welcome the Tour de France coming to Yorkshire. With a stronger voice shouting for us, we could build on those announcements and show what a wonderful area it is in which to live.

[Guy Opperman]

I promise that this will be the last time I intervene. Let us look at the northern hub, for example. With respect, it was promised for years under the previous Government, but came to fruition only under this Government. We are transforming the railways in the north. The hon. Lady talks about infrastructure, but surely that is a classic example of central Government getting out of the way to allow local infrastructure development and positive steps to take place without the bureaucratic talking shop she proposes.

[Mrs Riordan]

I do not propose a talking shop. That is the last thing I want. Transport is a major area that we need to do something about. I travel on trains from Halifax—they are not the best. One of my major campaigns at the moment is for better carriages on the line. They are much better in other areas. If the hon. Gentleman travels from Halifax to Leeds, he will see that there needs to be improvement.

Many key regional decision-making powers that currently lie with quangos, could be transferred to a regional government. Would the Minister like that to happen? We have a once-in-a-generation opportunity to grasp the nettle and achieve our goal. I do not believe in regional government for its own sake, but passionately believe that it will benefit millions of people in the area and stop the trickle of money south out of the region.

Doing nothing is not an option. If we do not act, the north risks falling further behind Scotland, as the Hannah Mitchell Foundation has rightly outlined, because the north of England risks being squeezed between the south-west and a resurgent England and Wales. Does the Minister agree that that might happen unless positive action is taken to address the northern democratic deficit? People argue about having more forms of government, but I do not propose that at all. Powers currently exercised by Westminster and Whitehall would simply transfer to the regions, as they have to Scotland and Wales. The key objective of any regional government proposals must be to ensure that whatever emerges costs the public no more than the current arrangements.

As I said at the beginning, this is an idea whose time has arrived. We need real purpose from all major political parties to drive it forward and ensure it happens. If it is good enough for Scotland and Wales, it is good enough for the north. The Government talk of localism; now they need to act on that and deliver it. It is about democracy, fairness, community and co-operation. It is about helping the north to realise its untapped potential, and about making our region stronger and bigger and ensuring that we are at the forefront of our economic revival.

For too long, power and wealth have been sucked to the south from the north. The journey to reverse that trend should now begin. It is time that the northern regions stood up for themselves and were allowed a democratic, powerful and valued voice. If it does not happen, we risk being left behind an ever more powerful Scotland and London in the coming years. It is time to stop the talking and get on with providing a new vision for the north. The Hannah Mitchell Foundation has started and led the debate. It is now time for central Government to join in and kick-start the process to ensure that we have a radical voice for the north as soon as possible.