Regeneration

Lord Storey Excerpts

Wednesday 27th June 2012 Lords Chamber

[Lord Storey]

I am grateful to the noble Lord, Lord Mawson, for initiating this debate. We are talking about new metropolitan districts. I come from a very old metropolitan district or, as we now call it, the Liverpool City Region. Liverpool itself celebrated its 800th birthday in 2007. As the noble Baroness, Lady Hughes, reminded us, the following year it became the European Capital of Culture.

Liverpool at one stage was regarded as the second city of the then British Empire. It lost its way very much in the 1970s and 1980s. The 1980s were a very difficult time for Liverpool. There were huge job losses: Tate and Lyle, Dunlop and Triumph Motors. Thousands of people were losing their jobs. That impacted, of course, on the social fabric of the city. It also impacted on the political fabric of the city.

Liverpool suffered other problems. There were the so-called Toxteth riots. There was the portrayal of Liverpudlians; they became the butt-end of humour and jokes. Liverpool went through a very difficult time. As the noble Lord, Lord King, reminds us, I remember Michael Heseltine coming to the city. He got a helicopter and flew over Merseyside to look at it. He got the civic leaders together. He got the business leaders together. I was a young councillor, the chair of education, at the time. You could actually see the way Michael Heseltine changed his views on these great northern cities.

I was elected leader of the city council in 1998. I was lucky in my first year to go to New York and Dublin, two cities which also turned themselves around. I remember talking to the civic leaders and asking, “How have you turned yourself around and regenerated your cities?”. The answer was the same in New York as it was in Dublin. It was one word: “confidence”. You have to create confidence in your city. Governments and councils do not create regeneration or jobs. They create the conditions for businesses to flourish, to create the wealth, to create the jobs. They said, “You will know that you have been successful when you can count the cranes on the skyline”. I became obsessed by this. I would drive into the city centre, counting the cranes to see whether we were changing the city around.

The next thing I realised was that you had to look at the things that were unique to that city and make it work. We worked closely with Manchester—I worked with Richard Leese—looking at the areas with which we could be compatible and the areas that were distinctive to our cities. We looked at Liverpool and thought, “Gosh, here is a city which at one stage was in the top four retail destinations in the UK”. It had slumped out to the bottom 20. Thanks to a £1 billion private investment from the Duke of Westminster, we created Liverpool ONE, which was at the time Europe’s largest retail and leisure development: 1 million square feet. We are now back in the top five retail destinations.

We looked at our universities and thought, “Gosh, these are top, world-class universities with real talent and expertise. How do we bring them into the regeneration of the city?”. We did that. We worked with them. For example, we worked with the Liverpool School of Tropical Medicine, a world leader, to link with the pharmacy industries in the city. Thanks to Bill Gates, who gave huge amounts of money to develop serums for third-world countries, we used their expertise. With the other two universities, we created a science park which has gone from strength to strength.

We then looked at other things that were special. Liverpool has a river. You did not see any cruise liners coming along the river. Yet the cruise liner industry was prospering throughout the UK. So we used European Objective 1 money to create—we have to be careful what we call this—a cruise liner facility. We could not call it a terminal, because it might upset Southampton. That worked. The present council is looking at a cruise liner terminal: a turnaround facility. To make that happen we have had to pay back to the Government £7.6 million. That £7.6 million was European Objective 1 and Northwest Regional Development Agency money, so I ask the Minister whether she will look at that money coming back to Liverpool for other regeneration projects, as that was what it was originally for.

We looked at music and the conference business. Liverpool has a culture of music. At one stage it was classed the “capital of pop”. Why the capital of pop? We had more number one chart-toppers than any other city in the world. I bet there has never been a quiz in the House of Lords. Do any noble Lords know what the first number one was? It was “(How Much Is) That Doggie in the Window?” by Lita Roza. Paul McCartney came to the city and we had to create an outside concert arena. We built a conference and arena centre and that has gone from strength to strength. So I think that regeneration is about creating the conditions for businesses to succeed; creating, if you like, as Michael Heseltine did in the 1980s, a vision and a plan of where the city should go.

I should also like to pay tribute, at the opposite end, to the noble Lord, Lord Prescott. He established the first regeneration company in Liverpool, which brought together local authority and business. It was strange sitting next to Terry Leahy, for example, who was one of the directors of Liverpool Vision. Again, they put together a plan of how the city could create the conditions for regeneration.

There are lessons for the new metropolitan districts to learn. Those lessons are very simple indeed. It is not about Governments saying, “One size fits all”; it is not about Governments telling us what should be done. We have done that in the past, where Governments say, “This is what you must do: inner city partnerships or urban aid”. Cities are unique; they have unique conditions, unique problems and unique solutions. Nor is it about the sort of government which was the fad of the previous Government and which seems to be happening now, where you bid for everything, and it is a bit like a beauty parade. The noble Lord, Lord Greaves, reminded us of this earlier. Now the beauty parade often involves celebrities, so that Mary Portas comes and looks at our high streets. It should not be like that; it should be about what can work for that city and those people.

The other thing I want to say is that it is not just about the physical environment of the city. It has to be about the people themselves. Cities have to “skill up” their young people. If one talks to any business, the message that comes out loud and clear is that young people need skills. I have been talking to two different businesses. Cammell Laird shipbuilders has suddenly blossomed again. It was a world-class shipbuilder, which collapsed and closed down. A group of senior staff started a small ship-repairing business, which has grown and grown and now has a turnover of £400 million. It is now looking to become even bigger than that. When one asks the company, “What is holding you back?” it says, “We need the skills. We have our own apprenticeship course. We take on 20 apprentices per year. It is a four-year course and we pay for it ourselves, But we still need more people with those skills”.

Last week in Manchester I talked to people in the textile industry. Manchester University has the only textile manufacturing degree course left in the country. Everybody who goes on that course can get a job. Yet the textile industry would like to expand that course and develop the industry. When one talks to companies they say, “We need the skills”.

I agree with the noble Lord, Lord Heseltine, when he said in this Chamber that he was,

“very critical of the past 100 years of government responsibility for education. Our industry depends on world-class results if it is to create and sustain first-class jobs”.—[Official Report, 22/3/12; col. 1052.]

How right that is. Equally, however, Governments have been responsible for chopping and changing education. So—I am going to shut up.