Regional Development

Lord Bates Excerpts

Tuesday 12th March 2013 Lords Chamber

[Lord Newby]

My Lords, as the noble Lord will be aware, we have had active regional policies to a greater or lesser extent in the United Kingdom since the 1960s. When I studied this at university, the figures were very much in my mind. The reason it is such a difficult issue to deal with is that, for example, in the north-east the proportion of people employed in the basic industries—mining, steel, shipbuilding and engineering—fell from something like 33% to well under 10% in a couple of decades. The challenge for government in trying to reduce regional disparities is how to put in place the kinds of long-term policies, such as infrastructure apprenticeships, that can begin to redress these wider economic forces. However, I do not think that government can reverse them, certainly not in the short term.

[Lord Bates]

My Lords, I welcome my noble friend’s recollection of the north-east of England and some of the history there. Did he have an opportunity to see the recent study in the Economist magazine about the north-south divide, which looked at the data between 1997 and 2010, pointing out that during that time in the north-east of England GVA grew by 41% and yet in the south-east of England it grew by 187%? Is that not part of the origin of the divide and is it not part of the correction to get good, well paid jobs in the private sector? If so, will he welcome the fact that employment in the north-east of England is at record levels, as are exports?

[Lord Newby]

My Lords, I very much welcome that, but I revert to my earlier answer. The north-east has in effect had to reinvent itself in terms of the balance of employment, which it has done reasonably well. However, it has been comparing itself, as my noble friend did, with the City, which has had an existing strength in financial services—one which grew almost exponentially during the period that he is talking about.