Green Investment Bank (Leeds)

Julian Smith Excerpts

Monday 14th November 2011 Commons Chamber

[Greg Mulholland (Leeds North West) (LD)]

I am delighted to have secured this debate on one of the Government’s flagship commitments: the establishment of the green investment bank. I shall focus in particular on the Leeds city region bid to host the bank’s headquarters.

As you are in the Chair, Mr Deputy Speaker, it would be remiss of me not to point out that this coming Saturday the Leeds city region’s Elland Road ground will host the final of the four nations rugby league tournament, following the sensational performance by the England team against New Zealand in Hull in Yorkshire and the Humber, and I want to put it on the record that the Leeds Rhino players made a wonderful contribution to that victory.

The Leeds city region has an extremely strong case to be the home of the GIB. It is being established to provide an infrastructure for a green economy with sustainable long-term growth. That will involve unprecedented investment in green economics. Operating at arm’s length from the Government, it will bring together cross-sector financial, economic and environmental expertise with private capital and investment. The GIB is one of the most exciting policy ideas in the coalition agreement, but it must deliver on the bold vision laid out for it, including the task to innovate and to challenge—to do things differently.

The GIB is a big opportunity for the Leeds city region, and for Yorkshire and the Humber as a whole. It presents an opportunity to showcase the unique mix of expertise, infrastructure and communication links in the region. It is also an opportunity for the Government to show they are serious about innovating, regenerating and doing things differently.

The Deputy Prime Minister has said:

“For years, our prosperity has been pinned on financial wizardry in London’s square mile, with other sectors and other regions left behind. That imbalance left us hugely exposed when the banking crisis hit...It’s time to correct that imbalance. We need to spread growth across the whole country, and across all sectors.”

If that does not suggest that the GIB should be located not only outside London, but in a region where there is real power to harness, innovate and regenerate, I do not know what does.

[Julian Smith (Skipton and Ripon) (Con)]

I congratulate my hon. Friend on securing the debate, and am delighted that he is talking about Yorkshire as a whole, rather than just Leeds, because there are many examples of community-led energy projects in my constituency, and throughout our region we have a phenomenal track record of delivering on green projects and investment.

[Greg Mulholland]

I thank my hon. Friend for his comments, and I also thank the other Members representing constituencies in the region who are present. I shall be very happy to take interventions from any of them, in order to show that there is cross-party support on this issue, but I should also make it clear that I will only take interventions in support of the Leeds city region bid. Those supporting other regions and bids can get their own debate, just as I have this evening.

--- Later in debate ---

[Greg Mulholland]

Of course, the point of the green investment bank is not to deliver jobs itself—although a few hundred people will work in and around it—but to bring in investment through projects and the knock-on effects. Those projects will be not only in Yorkshire and the Humber, but all around the country. The Minister might be able to give some idea of the Government’s vision for delivering growth for the economy and employment all around the UK, delivered, crucially, from the Leeds city region.

[Julian Smith]

I refer back to the hon. Gentleman’s comments on the type of financial services that Leeds possesses. It is the home of mutual organisations and of a different kind of financial services than is seen in the City of London. That character, which he painted so eloquently, has to be part of the pitch for Leeds.

[Greg Mulholland]

That is an important point and it is right of the hon. Gentleman to reiterate it. We must all keep doing so again and again to Ministers. I apologise to the Minister for taking so many interventions. It is rather nice to have so many positive ones. It will, however, take me a little longer to make my contribution than I had originally thought because of that.

As well as the financial expertise and talent in the region, we have the professional and business services that would be integral to the success of any new banking institution. Five of the UK’s largest law firms and 150 accounting firms, including nine of the 10 largest UK practices, are based in the Leeds city region. Crucially, the professional and business services sector in the region has a strong record in supporting the delivery of low-carbon schemes. It is in demand for doing so across the UK, with a number of projects having been advised and structured by businesses from the Leeds city region. One example—and we will provide more to the Minister—which is from the other side of the Pennines, is the UK’s largest wind farm on Scout moor in Manchester. Top legal teams based in Leeds, such as Addleshaw Goddard, regularly advise on international green projects, such as the latest power project in Saudi Arabia and a solar project in South Korea. This expertise and talent is already delivering what the green investment bank wants to do not just in the UK, but around the world.

Finally on talent, the region also has the necessary environmental expertise. The region’s carbon capture and storage programme has been led by co₂sense. That is one of a number of Leeds-based expert organisations that drive innovation-led low-carbon projects in the Leeds city region and that would support the bank in its activities. It has been delivering the objectives of the green investment bank in the region for the past four years. It has invested in low-carbon infrastructure projects across the region.

We also have the Centre for Low Carbon Futures, which is a partnership of universities that has a track record in providing expert advice to the Department of Energy and Climate Change. It includes the centre for climate change economics and policy at the university of Leeds. We also have Science City York, which is a partnership company of academics and the private and public sectors that has expertise in bio-renewables. It has directly helped to establish more than 100 new technology companies.