Economy: Growth

Lord Paul Excerpts

Thursday 6th December 2012 Lords Chamber

[Lord Paul]

My Lords, I declare an interest as chairman of Caparo Group, an industrial manufacturing company. I thank the noble Lord, Lord Heseltine, for initiating this debate and add my voice to the plaudits he has received for his report. I have been actively involved in UK industry for more than 40 years. In this time dozens of reports, documents, policy briefs and plans have come and gone. No Stone Unturned in Pursuit of Growth is an outstanding and comprehensive report that reflects the noble Lord’s rare depth of experience in both commerce and public life.

I am glad that the Chancellor has announced that the Government are taking action on the report, although he will respond formally in April. It is a happy coincidence that today’s debate is timed to follow the Autumn Statement. I am glad that the Chancellor is to take some immediate action. Speed is of the essence and I urge the Government to implement the report quickly in its entirety because decentralisation of power to the regions is long overdue. However, we must be careful not to create more layers of bureaucracy, more quangos and more consultants which will produce more inertia, of which there is too much already.

We need to bring together the education and business sectors. Education has been a lifelong interest of mine and I have been active in several institutions of higher education. When I was a student at MIT, I was most impressed by the strong collaboration between business, government-sponsored projects and universities in the United States. Universities get their funding while government projects and industry benefit from first rate research and technology. We in the UK have first-class universities and we need to encourage more collaboration along those lines. I have spoken on this subject many times. Innovative technology will help to build a more dynamic economy that will attract more foreign investment than public relations exercises or cash incentives.

This report has the potential for a dramatic impact on the economic crisis so I strongly endorse it. I hope that the Government act today to pursue its implementation with the same energy, commitment and determination that has been shown by the noble Lord in producing it. I was planning to ask for this debate in my name but, true to his reputation, the noble Lord beat me to it.