Public Expenditure: Review of Commitments

Lord Bishop of Ripon and Leeds Excerpts

Thursday 17th June 2010 Lords Chamber

[Lord Sassoon]

I am grateful to the noble Baroness for that question. On Sheffield Forgemasters, the problem with the loan is simply that it is unaffordable. In the context of tighter resources, we have had to focus support in areas where market failures are clearest and, where we can, we need to look to the private sector and private investment to provide solutions. I know that my right honourable friend the Chief Secretary to the Treasury has spoken to my right honourable friend the Secretary of State for Business, Innovation and Skills about this project and we hope very much that there will be a private sector investment solution.

The noble Baroness made a point about the connection between jobs and investment. There is a particular connection between Sheffield Forgemasters and the nuclear industry and we are of course continuing to support collaborative projects such as the nuclear Advanced Manufacturing Research Centre, which is led by Sheffield University, so we remain absolutely sensitive to the job creation priority to which she referred. She also talked about the construction industry. In respect of all industries, I go back to where we start on this, which is that we have to keep interest rates low and show that we are getting a grip on the deficit. We also have to provide a basis on which the private sector can lead the economy forward.

[The Lord Bishop of Ripon and Leeds]

My Lords, I want to ask about the implications of the Statement and the philosophy behind it for the voluntary sector, in particular where that sector provides resources, thus fulfilling exactly the requirements of a big society. What reassurance can the Minister give to those of us who develop local projects, such as those for English as a second or other language, using government money alongside voluntary contributions? We have employed people to develop such projects and it is crucial that that contribution is not now wasted through lack of funding at this stage.

[Lord Sassoon]

I am grateful to the right reverend Prelate for raising that point. I am not aware of any particular projects referred to in the Statement where the co-mingling of voluntary contributions and public money will be affected. However, I will take that point back, consider it and, if there are projects that fall into that category, refer the relevant departments to him so that he can get a specific response. I take his general point that the Government should continue to encourage projects that involve joint public and private funding, whether from the voluntary sector or from other parts of the private sector.