Transport and the Economy

Neil Carmichael Excerpts

Tuesday 28th February 2012 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

It is a great honour to speak in the debate, bringing up the rear, as I often do. I am a firm believer in the link between good transport infrastructure and economic development. It is critical and one does not have to go far in this country to find proof of that. As Michael Portillo notes in his excellent programme about trains, they helped to develop the south-west and other parts of Britain, and that is also true of Europe. Let us understand and accept that. The great news is that the Government accept it; that is why they are investing so much, and quite right too.

I am pleased to say that in my constituency, Stroud, £45 million is being invested in the redoubling of a critical line between Kemble and Swindon, so that we can radically cut the journey time and increase the number of trains on the track. That great news is signalling to people in and around Stroud that it is a place to do business, more business and better business. That is the kind of delivery that the Government are already providing, and I thank them for it.

My hon. Friend the Member for Rugby (Mark Pawsey) spoke about logistics, which is an important subject. I too intend to speak about logistics in the context of the supply chains for manufacturing and engineering. We have complex supply chains in this country, which are becoming more complex as the weeks and months go by because many firms are manufacturing to order and production is ever more dependent on supplies from further afield. We need good infrastructure to support a complex supply chain. Many speakers have emphasised the importance of Government working together. They do work together. The Department for Business, Innovation and Skills is focusing on supply chains, and it is good that the Department for Transport is providing the infrastructure needed to develop good supply chains, nurture and improve them.

We have also been talking about regional development agencies. I cannot think why anyone would want to bring RDAs back, but apparently some do. The Government have moved to making sure that local authorities work together. A key aim of the Localism Act 2011 is to foster a duty to co-operate. We need that co-operation between local authorities so that they think strategically when they are planning anything to do with transport and economics. The two go hand in hand, as do the needs of local authorities when transport is considered. The LEPs have already been celebrated in the debate—again, quite right too. They too have to work together in the interests of good strategic planning.

Speaking in more general terms, we need infrastructure that works and encourages communication. That is why I am a supporter of HS2. It does not go through my constituency, but even if it went nearby, I would still support it because it is right that we start to connect our big cities. We do not need to look very far on the continent or beyond to see that good connections bring about economic growth and more economic activity, so we need to promote such investment. Crucial to infrastructure is the certainty that it gives the private sector, encouraging it to add further investment. If we have a plan that people understand and recognise is a good plan, we should also attract private investment in our transport infrastructure. That is an important feature of the case for linking economics and transport policy.

Finally, I shall say a few words about airports and ports. I note from The Economist that most people live within two hours’ drive of at least two airports, so clearly we have plenty of airports. It is important that they are flexible and able to link up the main hubs. The fact that we have so many airports is good for industry, because aviation development is an extremely important part of manufacturing and engineering. We need to make that case more forcefully.

I have a small port in my constituency, Sharpness, which handles 600,000 tonnes of bulk material. That activity brings more activity and economic investment, so I am pleased that the infrastructure which supports that port is in place. We could improve it, but the fact that we have such a port in my constituency is good news. Any other hon. Member with a port, small though it may be, should support it because it is good for business.

In summary, let us never forget that transport and economics often go together, and the Government are putting their money behind that.