Infrastructure

Jim Shannon Excerpts

Tuesday 12th February 2013 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

Unusually, I would like to start by thanking the Leader of the Opposition for choosing the subject of this debate, even if the text of his motion is fundamentally flawed. In the language of “Yes Minister”, it is extremely courageous of the Opposition to choose a debate on a subject on which their own record is so weak, particularly when they would have cut investment by 50% had they won the last election. I agree with the Leader of the Opposition that investment in infrastructure is vital to the economy’s long-term prosperity. It is also vital that we take effective action today to address the infrastructure deficit left by the previous Government.

There is no question that poor infrastructure discourages inward investment. As Professor Dieter Helm wrote towards the end of the last Labour Government in 2009:

“Few would choose to locate in Britain because of its infrastructure”.

He went on to describe it as

“not fit for the digital age”.

Bringing our infrastructure up to a standard that businesses and residents should be able to expect is essential if we are to create the flexible and successful economy on which prosperity will depend.

One of the most damaging legacies the Government inherited was the unsustainable imbalance in the economy that had built up over previous decades. We cannot build the prosperity we need based on London and the south-east alone and we cannot unlock the potential of the whole country without the modern infrastructure that makes doing business across the country and around the world as straightforward as it can be.

The prosperity gap between the black country, part of which I represent, and the south-east grew out of control under the previous Government. Gross value added per head in Dudley and Sandwell fell from 88% of the national average in 1997 to just 74% in 2008. World-class transport infrastructure such as the HS2 scheme will play an important role in closing that gap. We need to make it as easy to do business with Frankfurt, New York and vital emerging markets from our regional cities as it is from the City of London.

Labour left a rail system rapidly approaching capacity. Network Rail forecast that the west coast main line would be completely full by 2004. The inter-city rail network would be unable to cope without the additional capacity that will provided by HS2, and I am proud that the Government are taking the bold steps necessary to take that scheme forward. Businesses thinking of locating in my constituency know that they will have regular connecting services from the three main line stations in my constituency to the HS2 terminal in Birmingham, offering fast routes to London and later to Manchester, Leeds, Edinburgh and Glasgow.

I would like to make one representation to the Minister. That investment, which is so important to bringing our largest cities together, must be complemented by a new focus on the importance of our regional airports. Whatever the rights and wrongs over the debate about expanding Heathrow, there can be no doubting the benefits of making better use of existing and potential capacity at airports outside London. Building a second runway at Birmingham airport, for example, would increase spare capacity to 50 million passengers per year, creating or sustaining 50,000 jobs. Transforming Birmingham, Manchester and other regional airports into additional hub airports would transform our regional economies and relieve some of the pressure on Heathrow.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman think that we also need to increase the turnover and capacity of regional airports in Scotland and Northern Ireland, particularly Aldergrove, Belfast city and Londonderry airports, in order to strengthen the economy across the whole of the UK?

[James Morris]

The hon. Gentleman makes a very good point. We need to encourage greater use of capacity for all our regional airports, as part of the vital effort to rebalance the British economy in the way I described.

Transport infrastructure is not only vital to business, but essential to people’s everyday lives. As the Minister said, the previous Government explicitly set out to price people out of their cars in order to reduce demand for investment in road infrastructure. Instead, we need to look at how we can make our roads better. My constituents are pleased that the Government are investing more in local roads through the highways maintenance block grant to councils. Unfortunately, Labour’s record in local government highlights the hypocrisy of the Opposition’s motion. People in Dudley borough have benefited from £2 million of additional investment in local road maintenance. Unfortunately, the new Labour administration is cutting the road maintenance budget by the same amount, pound for pound, as the additional funding from the Department for Transport. Labour in local government has shown time and again that, as far as it is concerned, infrastructure spending is a very low priority, but residents know that we cannot build a strong local economy with third-rate local infrastructure.