Economic Regeneration (West Midlands)

Debate between Ian C. Lucas and Pat McFadden

Tuesday 8th February 2011 Westminster Hall

[Ian Lucas (Wrexham) (Lab)]

It is a pleasure to appear before you again, Mrs Brooke, and it has been a pleasure to listen to the debate.

I commend the hon. Member for Wolverhampton South West (Paul Uppal) for initiating this debate on behalf of his constituency and, of course, the wider region. I hope that I get all the geographical directions and references correct in my contribution. I also commend all the right hon. and hon. Members who have spoken eloquently on behalf of their constituents today. It is extremely valuable to have the opportunity in Adjournment debates to focus on particular areas. Although that is very valuable for me, it is even more valuable for the Minister, because he can focus on that particular area of the country and the particular issues relating to it not only in the contribution that he will make to today’s debate but in his preparation for it.

The contribution that debates such as this make cannot be undervalued, especially when we have had such excellent speeches today from all parts of the House. As the hon. Member for Wolverhampton South West said, it has been a non-partisan debate because all of us want Wolverhampton and the black country to succeed. Although we have different road maps to achieve that aim I am sure that all of us can make positive contributions towards achieving it.

One issue is that we are, of course, in difficult economic times. We have just come through the worst recession since 1929 and a huge banking crisis. There are difficult times at present with very difficult growth figures. In that context, finding the right policies to allow Wolverhampton and the black country to develop and prosper is extremely difficult, and there are different routes that can be taken.

Concerns have been expressed about the possible conflicts that exist in legislation such as the Localism Bill. In an area such as Wolverhampton, it seems to me—although I of course defer to the local knowledge of the area of all right hon. and hon. Members who have spoken today—that getting the balance right between the interests of business and the interests of residents will be extremely difficult. We all have planning issues that arise in our area that are difficult for us to make calls on, because there are different and conflicting ideas about them.

One of the themes that has emerged in the debate is that, as far as Wolverhampton and the black country are concerned, the focus must be on business and growth. My right hon. Friend the Member for Wolverhampton South East (Mr McFadden) referred to the fact that his constituency is in the bottom 15 in the country as far as unemployment is concerned. That is a major threat to the prosperity and the attractiveness of the area, as it would be for any area of the country.

Of course, Wolverhampton has been well established for many years as a hugely important manufacturing city and as a city that has a huge amount to offer. As we have already heard, what needs to happen is that the attractions that made Wolverhampton successful in the past—entrepreneurial drive and individuals with ideas who were able to use those ideas to create manufacturing, jobs and prosperity—need to be developed once more. Those attractions have been developed before and they need to be developed again.

At the heart of that process is the skilled work force that we have just heard my hon. Friend the Member for Dudley North (Ian Austin) talk about. He referred to the fact that, at present, there are young people who are training and trying to get on in their lives, and they are being given support through the education maintenance allowance, but that support is being withdrawn. That is pulling a ladder away from those young people and it is a very damaging policy.

I know that the Government are introducing alternatives to the EMA. However, earlier this morning I was speaking to a group of young people from my constituency of Wrexham about the EMA. For the west midlands, that Government policy will lead to a competitive disadvantage, and that also applies to tuition fees. Therefore, that educational limb of development policy is putting Wolverhampton at a disadvantage.

What is very striking about the globalised world in which we live is that it is intensely competitive. Globalisation will not go backwards. It will continue and become more intense. Consequently, if we are to compete we must devise in our own country the right policies to deal with it. That means that we need to take advantage of the skills and the established industries that we have.

In the Wolverhampton area, aerospace is a hugely important industry. We are one of the leading aerospace manufacturers on the planet. In fact, we are the number two aerospace manufacturer, behind only the United States. To ensure that we continue in that position and continue to offer work of the highest quality, an area such as Wolverhampton needs to compete. It needs to compete internationally, so it needs to have the support of Government with provisions such as the grants for business that were referred to by my right hon. Friend. The reality is that, if that Government support is not provided within the UK, it will be provided in France, Germany, Spain, China and other parts of the world. It is simply not the case that businesses and industries such as aerospace will not move. If we do not compete on a level playing field—to use that dreadful phrase—with those countries, in terms of the type of support that the Government offer, we will lose out.

[Mr McFadden]

Does my hon. Friend agree that the other important point about that state help is that it is not just the Government going around signing cheques for business, as it has sometimes been characterised, but their playing a, usually, small role in levering in significantly more private sector investment? One of the striking characteristics of the Department for Business, Innovation and Skills figures on the grants for business investment scheme is that for every £1 spent by the Government £10 more was levered in from the private sector. This is not, therefore, just about propping up failing industries or holding back the future, it is about the Government playing a small role to get the private sector to play a far bigger one.

[Ian Lucas]

My right hon. Friend is of course absolutely right, and the examples are many, the most obvious recent one being Nissan in the north-east. Its Leaf vehicle manufacturing is supported by this Government, who decided that it was a sensible investment. With one exception, the Government have looked at the investments made by the previous Government and have supported them. They do lever in private finance, and that inward investment has to come.

We have heard that Wolverhampton has a strong Indian connection. As someone from outside of the region, I beg to suggest that that connection be used strongly by the community—I am sure it is—in relation to its competitiveness within the UK. The type of connection that culturally can exist between a city with Wolverhampton’s background and the Indian community locally can create huge export opportunities, and I venture to suggest that the university of Wolverhampton will develop Indian contacts. Does the Minister believe that the student visa restrictions being considered by the Government are in the best long-term interests of UK industry? The granting of those visas brings so much inward investment and income to our universities, and I am receiving many representations about the visa restrictions, from universities both in my constituency and beyond.