Public Bodies Bill [HL]

Lord Judd Excerpts

Monday 28th February 2011 Lords Chamber

People throughout the north of England are worried about these developments. I know that we have some friends in there. It may well be that Vince Cable is more sympathetic to our position than he makes public. If he is, and if he is listening to this debate, let him realise that we can no longer rely on Mr Pickles. We want him to intervene and indeed, in many ways, perhaps undermine this strategy before it does damage in the region. If Mr Cable sympathises with our position, let him use the structures within BIS, in a way perhaps that the Government are not intending at this stage, to bring about at least some residual regional structure that can deliver. I say that this is all now at risk, and we appeal even at this late stage for the Government to reverse their position.

[Lord Judd]

My Lords, I just wanted to follow my noble friend Lord Campbell-Savours because he has put so powerfully the case for the north, particularly with his origins in the north-west. He is, in every sense, a son of the north-west. He speaks with authority.

I simply say that there is a cultural dimension to all this. It has to be faced. There are many good people living in the south-east, the south and more prosperous parts of the Midlands who just have not seen for themselves the social reality of what happened in the north in the past. The noble Lord, Lord Greaves, and the noble Lord opposite have referred to Cumbria. Just come to Cumbria. I often speak about the inheritance and the beauties of the national park, but come to the west coast of Cumbria and see the physical and living evidence of what happened before. The communities are broken, disheartened and demoralised still.

The challenges are huge and, given the economic stringency that faces the nation, this is the very time that one needs strategic and powerful authorities to look after the interests of those who will find themselves in the toughest position, as economic policy takes effect. If we have any pretence of commitment to social justice, this is the very time that there should be strong voices speaking, not just tactically but strategically, for the people of a region. Those voices should look at the issues of communications and transport, and at the work that can be done with the universities in the north, to find ways of regenerating and building a new future.

Some will argue that in Cumbria we will have the one bright prospect of becoming the energy coast of Britain. If that is a prospect—and I fervently hope that we can make a contribution in that context—this is the time that we need a strategic authority speaking for us and making sure that the plan is developed to the full, not just thrown to the vagaries of the market.

What is sad about the Government having rushed into this ill considered Bill, with all its ill considered propositions that have not been properly researched, investigated and analysed, is that we might have had a case for coming up with a review of regional policy. I agree with the argument that there was a great deal of room for adjustments to the regional structure. I am not sure that my noble and very good friend Lord Campbell-Savours will agree with me on this, but I am a sceptic about whether Cumbria—particularly north Cumbria, where I live—is in the right region. It seems to me that the natural links of north Cumbria are with the north-east—up around the coast, through Carlisle and into Newcastle and the rest. We do not think of Manchester and Liverpool. We think of the north-east. Our health service is oriented in that direction. When I needed neurosurgery, I ended up, through the National Health Service, in Newcastle. When I turn on my television in the evening, I see Newcastle-based television.

There was therefore a case for a review to make sure that the regions, in their administration and structure, were best geared to meet the real social challenges that were out there. However, instead of going down that exciting route, this new Government, who pride themselves on being so radical and imaginative, just dodged all that and went for an ideological destruction of the regional development authorities at the very time that they were most needed. I know that the Minister listens. He is a sensitive man and has not only a social conscience but a feel for social issues and people. I urge him, even at this 11th hour plus, to plead with his colleagues and say, “This is a step too far. Think again”.

[Lord Empey]

My Lords, I have been listening to the debate, but the truth is that there is no single solution to economic development policy. There is no perfect model. There is a variety of models throughout the United Kingdom, some of which work better than others. However, the amendment is a fairly blunt instrument. The decision on the number of regional development agencies in England has to be taken in conjunction with the devolved regions. Until a few months ago, I had responsibility in Northern Ireland for certain aspects of economic development policy. Prior to that, I had responsibility for establishing Invest Northern Ireland, which at that time consisted of some 700 staff and had a budget of about £160 million.

However, the whole scene has changed. I listened carefully to the noble Lord, Lord Campbell-Savours, but what applies today is totally different from what applied in the 1980s. Europe has a big influence in this, because one of the big weapons that organisations in Scotland, Northern Ireland and elsewhere had was selective financial assistance. Since 1 January, that assistance has been largely reducing and by 2013 it will be virtually gone. Therefore, the model that we used for distributing it and the mechanism that we used for trying to bid for foreign direct investment are going to be denied us. All that will be left is soft assistance, with management plans and various other things, but the hardcore employment grants and capital grants that regions depended on to buy in business and investors will be denied us because of European regulations.

I can tell the Committee that a protocol exists within the United Kingdom to prevent all the different RDAs, the regional administrations and the national Government from bidding against each other. Foreign direct investors are not stupid. They knew that people in the regions were hungry and they went about their business going from one to the other. We had to establish protocols.

--- Later in debate ---

Amendment 59 withdrawn.

[Lord Judd]

My Lords, there are hazards in going away from London in the middle of a Bill. Rapid developments sometimes change the situation. I rise to move this amendment in the knowledge, which I should share with the House, that—

[Baroness Royall of Blaisdon]

We were not planning on proceeding further tonight.

[Lord Judd]

I am so sorry.

House resumed.