Economy (North-East)

Ian Swales Excerpts

Tuesday 13th November 2012 Westminster Hall

[Ian Swales (Redcar) (LD)]

It is a pleasure, Mr Hollobone, to serve under your chairmanship. I congratulate the right hon. Member for South Shields (David Miliband) on securing this debate and on bringing his outstanding talents to the issue. As we all do, I see the difficult economic situation in our area, and it was brought home to me even more last year when I appeared on “Newsnight” to explain why the economy of Redcar and Cleveland was rated by the BBC and Experian as the weakest of 324 areas in the country. Middlesbrough and Hartlepool were 323rd and 322nd. Is that really the legacy that Labour wanted after 13 years of complete freedom to deliver their vision?

An entire sub-region was forgotten and neglected, not just in jobs and growth, but in many other ways. It struggled with an education system that was not delivering what employers wanted. It breaks my heart that the outstanding technical training provider, TTE, at South Bank in my constituency has 57 funded engineering training places for 16 to 18-year-olds that have not been taken up. Those opportunities are available in an area of high youth unemployment, but too many young people have left our education system without basic skills or aspiration.

That legacy came after a period of investment and growth from 1987 to 1997. After Margaret Thatcher’s famous walk in the wilderness at Stockton, the Teesside urban development corporation delivered some important projects. There were issues with the corporation, and I am far from being a Thatcherite, but I welcomed the state intervention that brought Teesside retail and leisure park, Hartlepool marina, the Stockton campus of Durham university, Stockton and Middlesbrough riverside developments, the Tees barrage and the Teesdale business park. The list went on, but suddenly it all stopped, and for 13 years very little happened.

The new Labour Government scrapped the urban development corporation and showed their obsession with regionalisation. Teesside became a fiefdom of Tyne and Wear. The regional referendum made no difference, and on it went. Even the ambulance service was moved. Three quarters of a million people were deemed not capable of running their own ambulances. The ludicrous regional fire control project followed, as did ONE. In the north of the region, it was One North East, but in my area it was known as “only Newcastle exists”. Shortly after being elected, I was at a meeting in the north-east discussing the fate of One North East assets. I was asked how that would affect my area, and I replied, “I don’t think there will be a problem; there aren’t any.”

Teesside is a proud and distinctive area, with a unique heritage, unique problems and unique opportunities. As far back as the 1960s, it was described by Redcliffe-Maud as a “functional economic market area.” That is why, with my hon. Friend the Member for Stockton South (James Wharton), I fought for a Tees Valley local enterprise partnership. I am delighted to see how well it is working, and congratulate it on its clarity of purpose, strong local links and powerful advocacy.

Although the north-east is the only UK region with a trade surplus, the Government know that a lot of help is still needed to clear up Labour’s mess. That is why they have done a huge amount since 2010. Enterprise zones throughout the region include three in my constituency alone—at Wilton, Kirkleatham and South Bank. There is a city deal in Newcastle and new offers of deals for Sunderland and Tees valley; ultra-fast broadband for Newcastle; education changes, including the pupil premium; huge growth in apprenticeships, which have doubled in my constituency; investment in rail and buses, enabling Teesport to put modern containers on the rail network; support for innovation with technical innovation centres, including the Centre for Process Innovation in my constituency; chemical and automotive supply chain initiatives; and, above all, the regional growth fund—a total of £284 million and 102 projects in the north-east, with 26,000 direct jobs and 47,000 indirect jobs. That represents the most projects in the country from all three rounds, and one third of the projects in the country from rounds 1 and 2.

[Alex Cunningham (Stockton North) (Lab)]

I am sorry, but I take issue with the hon. Gentleman’s opinion of the regional development agency, which delivered big time for the Tees valley. On the regional growth fund, does he regret, as I do, the Government’s decision not to back our regional airport in the south of the region to create a new hub that would expand industry throughout the Tees valley?

[Ian Swales]

Clearly, the regional growth fund could not support every project, and I will be bidding for an extra round. I believe that my hon. Friend the Member for Stockton South will talk about the airport.

Two thirds of rounds 1 and 2 projects have been approved, and the money has already gone out or is ready to go out. The statistics that the right hon. Member for South Shields gave come from the Public Accounts Committee, of which I am member, and date from about nine months ago. Large parts of the country, including London and the south-east, have received virtually nothing from the regional growth fund. It is a serious regional policy to try to repair our manufacturing sector, which was ravaged during the past 13 years.

[Mr Philip Hollobone (in the Chair)]

The hon. Gentleman is not out of order, but I want to point out that he has spoken for more than four minutes.

[Ian Swales]

I was trying to redress the balance, Mr Hollobone, because I know that many Opposition Members will speak.

There is a huge amount to do, and I hope that the Minister will respond to four issues. Carbon capture and storage could be a game changer for Teesside, not just in energy generation, but in supporting industrial carbon emitters; we have 18 of the top 30 in the UK in Teesside.

[Ian Mearns (Gateshead) (Lab)]

Will the hon. Gentleman reflect on what he said about the plight of his constituency’s economy being blamed on Tyne and Wear? His colleagues in local authorities there will greatly regret those sentiments. Frankly, they are misplaced.

[Ian Swales]

I want to correct that impression. I am not blaming the people in Tyne and Wear; I am talking about the balance of the regional development agency’s efforts.

The excellent north-east companies in the Energi Coast consortium have invested £400 million to attract offshore energy generation contracts, and we must ensure that that supply chain happens in the UK. I have lived in the north-east for 34 years, and spent 32 years of those in business, from being on the board of a large global business to running my own small business. I have been here for the past two years. I know what the issues are, and the Government are making an excellent attempt to tackle them. I am optimistic. We have a great region, great people, and not just a great past, but a great future.

[Mr Philip Hollobone (in the Chair)]

I will call the wind-ups at 10.40. The running order of those who were standing will be as follows: Tom Blenkinsop, James Wharton, Ronnie Campbell, Iain Wright, Sharon Hodgson, Helen Goodman, Ian Lavery, Julie Elliott, Alan Campbell, Phil Wilson and Pat Glass.