Economic Development (North-East)

Debate between Nicholas Brown and Phil Wilson

Tuesday 15th February 2011 Commons Chamber

[Mr Brown]

I agree, but, above all, we need to strengthen the employment base in the Tees valley, and that means focusing on the potential of the key employers—Corus, if the transition takes place, the chemical sector, the process sector, the potential in the under-utilised land at the east end of the Tees valley, the exciting opportunities in Teesport and the new distribution agreements with Tesco and Walmart. Those are exciting and significant developments, providing a whole new range of activity for the port. I wish them well, but they must be supported by the region speaking with one voice. The new job opportunities are for the whole of the north-east of England. Indeed, they are for the whole north of England, going right down to the midlands, and covering all points north, including Scotland.

[Phil Wilson (Sedgefield) (Lab)]

Is not one of the best ways of securing economic growth in the area, and of helping Teesside and Teesport, to ensure that the Government go ahead with the Hitachi project, which will create 800 direct jobs in my constituency? It will create thousands of jobs, not only in the region but throughout the country, and be a great export market for us. It will also ensure that we have growth and an ability to rebalance the economy in the north-east of England. We have waited months for a decision from the Government. Does my right hon. Friend see a new trend developing in the coalition Government of an inability to make decisions?

[Mr Brown]

It is true that the new Government seem to find difficulty in making decisions and giving clear-cut answers. As Minister for the North East, I met representatives of Hitachi in Downing street and worked closely with my hon. Friend to ensure that the programme was understood right at the heart of the Government. We engaged as fully as we could with the Government office of the region, the development agency and the Department involved, and did everything we could to bring those private sector arrangements to fruition on Hitachi’s preferred site—it was of the company’s choosing, not the Government’s. Getting that programme would be a tremendous win for his constituency, and I urge Ministers to do everything they can to bring this to a conclusion and to bring the Hitachi programme to the north-east. The company has chosen the site, not the politicians, although if my hon. Friend and I were choosing, we would have chosen the same one.

Small and medium-sized enterprises are reliant on their supply chains. When those are public sector supply chains, SMEs will be hit by public expenditure constraints. SMEs are particularly significant to the north-east labour market. The arrangements for the public sector to work with them are being reduced dramatically, and their chances of making successful bids to the regional growth fund are practically non-existent, because the fund will not entertain bids of less than £1 million.

There is now no coherent interface with the private sector in the region. The Government closed its regional office, and the subsequent announcement that the Department for Business, Innovation and Skills will open six new departmental offices for the 10 English planning regions to deal with administration is truly pathetic. No doubt the office covering the north-east will be somewhere in Yorkshire.