General matters

Peter Aldous Excerpts

Tuesday 21st December 2010 Commons Chamber

[Peter Aldous (Waveney) (Con)]

May I wish you, Madam Deputy Speaker, and the House a happy Christmas and a peaceful new year?

As a chartered surveyor and an East Anglian representing a Suffolk constituency, the provision of infrastructure takes up a lot of my time. That has been the case not just over the past seven months, but over the past 27 years. Two things that I find myself saying with great regularity are, “We don’t do infrastructure well in the UK” and, in an East Anglian context, “We talk about infrastructure a lot because we don’t have any.” The nearest motorway to my constituency of Waveney is in Holland, and Lowestoft has been waiting 75 years for a third crossing over the water that divides the town.

Infrastructure and job creation go hand in hand. A good transport system is a prerequisite for sustained economic growth and, conversely, poor infrastructure and congestion hold back growth and the creation of jobs. Historically over the centuries, Britain has had a great record of inventing and building world-class infrastructure that underpinned economic growth, whether the creation of the canal network, the engineering work of Brunel, or the building of the railways and the London underground. More recently, our track record has been poor. There has been no long-term strategic framework, projects have the gestation period of an elephant, and to many it appears that Britain has ground to a halt, as we sit in traffic jams and wait for trains that never arrive—and, at present, planes that do not fly.

In the past, local highway authorities pursued an ongoing programme of continually improving the local road network such as through regularly building bypasses and relief roads around market towns. They stopped pursuing such an approach 20 years ago. The result, in East Anglia at least, is that there is a large backlog of work to be carried out on such schemes as the Beccles southern relief road in my constituency, the Brandon bypass in the constituency of my hon. Friend the Member for West Suffolk (Matthew Hancock), and the Long Stratton bypass in south Norfolk.

[Matthew Hancock (West Suffolk) (Con)]

The Brandon bypass was mentioned in my predecessor’s maiden speech in 1992 as an urgent priority for the link between Suffolk and Norfolk. Although some progress has been made since, no ground has been dug. Does my hon. Friend agree that this is an awful long time to wait?

[Peter Aldous]

My hon. Friend very much proves my point. There is a need for local highways authorities to be given greater autonomy to carry out local projects. The geography of East Anglia is such that, in many respects, the provision of good infrastructure is not easy. Ours is a sparsely populated area, with relatively small regional centres, such as Norwich, Ipswich and Colchester, interspersed with coastal and market towns, and myriad villages. Today, the case for providing good infrastructure in East Anglia is compelling. There is a need for good roads, as East Anglia has a greater reliance on private vehicles than any other UK region. The area is relatively inaccessible compared with similar regions around the world with which we are competing for inward investment. Despite those drawbacks and the relative inadequacy of infrastructure in East Anglia, its economy performs extremely well. In terms of gross domestic product, it is the third top performing region after London and the south-east, and is a positive contributor to the Exchequer. With proper investment, East Anglia could contribute a great deal more.

The time is right for Britain to resume its role as a world leader in the provision of infrastructure. I have read the Treasury’s national infrastructure plan, which was published in October, so I know that the Government’s policies appear to be pointing in the right direction, but they now need to see them through. The UK is one of the most expensive countries in which to build infrastructure, with engineering works here costing 60% more than they do in Germany. In East Anglia, we have the opportunity to provide a 21st century infrastructure model, and I will conclude by outlining its main features.

First, we need to tackle the pinch points on the roads and railways. I welcome the support that the Government have already given to the dualling of the final 9 miles of single carriageway on the A11 and the improvements to the Felixstowe to Nuneaton freight railway line. Both those projects will bring undoubted benefits to the region and will lead to the creation of new jobs. Other projects, some of which are in my constituency, will have similar benefits. The Beccles loop on the east Suffolk railway line, which the Government are supporting, will improve accessibility, as will the other two schemes that I have mentioned—the Beccles southern relief road and the third crossing in Lowestoft. The southern relief road will open up commercial land for development and will remove lorries from the town centre, thereby enhancing the town’s attraction as a shopping centre. The third crossing will have similar benefits for Lowestoft; it will open up commercial sites and help the regeneration of the town centre by reducing congestion. It will act as a catalyst for increased regeneration activity and for further investment in Lowestoft, providing an opportunity to create a perception of a positive and business-friendly location. It will enable Lowestoft to realise its full potential as an international centre for renewable energy.

There is also a need to invest in the infrastructure necessary for the energy sector to thrive. That means upgrading the electricity network, with a new offshore grid, greater interconnection with Europe and a smart grid and smart metering. The provision of superfast broadband across Suffolk and the rest of East Anglia is of crucial importance to the creation of jobs, particularly in hard-to-reach rural areas. The Government’s broadband strategy, which was published last month, goes a long way in setting out how that can be achieved. Suffolk needs to be in the next round of broadband pilots and I, like my fellow Suffolk MPs, will be campaigning hard for its inclusion.

[Elizabeth Truss (South West Norfolk) (Con)]

Does my hon. Friend agree that the current state of broadband in Norfolk and Suffolk is not acceptable and is holding businesses back? In particular, some villages are complete “not spots”, where broadband cannot be accessed.

[Peter Aldous]

I agree entirely with that observation. The other Suffolk MPs and I are building on the strategy that has been put forward by Suffolk businesses, and we will take full advantage of the presence in the county of BT, which owns much of the infrastructure and has its research centre at Martlesham. Suffolk offers a unique opportunity for BT to show what can be done in delivering comprehensive high-speed coverage across the whole county, including in those hard-to-reach areas. To move the situation forward in Suffolk, BT needs to provide information on exactly when it intends to intervene and which exchanges in Suffolk it will upgrade. That will allow other, smaller providers to work on a bottom-up basis to consider which of the remaining areas they will be able to reach.

My Christmas message to the Government is to thank them for providing the framework for a 21st century infrastructure, and to urge them to make the necessary investment in East Anglia, so that we can play our part in securing the recovery, rebalancing the economy and creating new private sector jobs.

[Hilary Benn (Leeds Central) (Lab)]

On a point of order, Madam Deputy Speaker. Have you had any indication that the Business Secretary intends to come to the Chamber this afternoon to make a statement on his policy on News Corporation’s bid to take full control of BSkyB? As you may be aware, it is reported today that the Secretary of State has said that he has

“declared war on Mr Murdoch and I think we are going to win.”

Given that he is acting in a quasi-judicial capacity in considering that takeover, surely he must immediately step aside from any further involvement with that decision. Can you advise us whether you have been notified that either the Business Secretary or, indeed, the Prime Minister intend to come before the House today to confirm that that is what will now happen?

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[Matthew Hancock (West Suffolk) (Con)]

It is a pleasure to speak after such erudite speeches from both sides of the House. I will speak on a matter that is specific to Suffolk and Newmarket and that affects the racing industry across the country.

Charles II was the first to make Newmarket the headquarters of the horse racing industry, and it is now its global headquarters. I will speak briefly about Newmarket’s position as the headquarters of that great sport. In Newmarket, there are 2,500 racehorses in training, 70 miles of gallops, 62 studs, the world leader in equine sales in Tattersalls, 79 training yards and 5,000 people who are directly or indirectly associated with the industry. Many of those people and organisations support me because I am an unambiguous supporter of the racing industry. The industry contributes to the economy across the country, making £3 billion and employing 100,000 people.

The future of the sport is tied intimately to gambling and the people who place bets on races—that includes many Members in this Chamber. We know that people love to bet. [Interruption.] Members are shaking their heads, but I think that it is an honourable and enjoyable thing to do, rather than something to query. Money from betting makes up 50% of prize money in racing, and that prize money attracts owners to race their horses and attracts some of the biggest international names to invest money in Britain. Heads of State, international business men and sportsmen, and punters who can afford to own a whole or part of a horse, love to race. Part of the thrill of racing is the potential for a prize.

The sport is not without its problems. The amount of money from the horserace betting levy that is transferred into prizes has fallen from £115 million to £75 million over recent years. Prize money in Britain is, on average, the 37th in the world. The levy, which was first put in place in 1961, is highly bureaucratic. Each year, it depends on the decision of the Secretary of State for Culture, Olympics, Media and Sport on how much money should be transferred from the gambling industry to racing, to reflect the product that racing provides for people to bet on, and therefore for the gambling industry to profit from. The transfer of value is a policy response to the value provided by racing, which everybody can bet on. That bureaucratic solution, which ends up with a decision by the Secretary of State, is extremely old-fashioned.

[Peter Aldous]

I speak as a racing enthusiast who often makes his way across Suffolk to visit the race course in my hon. Friend’s constituency. Does he agree that there is something very wrong in the way in which racing has been financed for the past 50 years, in that other sports, such as football and cricket, sell their television rights to television companies, whereas racing has to pay Channel 4 to show it?

[Matthew Hancock]

I am glad that my hon. Friend raised that important point. Sorting out the pictures from racing and where the money from those pictures goes to is an important part of having a sustainable future for racing. There is an issue with the sale not only of the pictures, but of the product upon which so many bets are laid. We must consider the future of the transfer of value from the product.

In the short term, the Secretary of State has a consideration to make over the coming months. I urge the Government to find in racing’s favour on the grounds that for a sustainable and successful racing industry, on which the gambling industry depends, there must be a reasonable transfer of value from gambling to racing. I also urge them to examine long-term solutions—for instance by removing the threshold under which betting shops pay no levy, by ensuring that offshore betting on UK races is levied upon, and by examining betting exchanges in which an ordinary punter lays the bet rather than an organisation. Such bets escape the levy, but the laying of a bet in any circumstances, whether by a corporate organisation or a punter, is still part of the turnover of betting.

In Ireland, a 1% levy on all wins has just been introduced, to recognise the transfer of value involved. That applies across all sports, so that racing is not separated out in the way that my hon. Friend the Member for Waveney (Peter Aldous) alluded to. The French have a system of a 1% transfer of value, plus saleable rights to bet on the industry. I urge the Government to consider all such options.

Everybody involved in the debate, whether on the racing side, the gambling side or in between, would agree that there is a desperate need for the levy to be modernised. In an environment in which money is tight and a bureaucratic system has existed for many decades, there is great pressure to get it right. That pressure is increasing, because racing is increasingly a world sport rather than merely a domestic one. The amount of money that is bet offshore is recognition of that. It is critical that we seize this moment to secure for Britain global leadership, in the future as we have had in the past, in this golden sport on which my constituency thrives.

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[Guy Opperman]

I endorse that comment entirely, and I see that my hon. Friend is wearing his royal purple, from the outfit that he is going to wear to Newmarket or wherever the next race will be.

We are dealing with one of the most impressive, successful and world-renowned sports, and we must do everything we can to support it. I speak as someone whose father rode in the grand national, and who represents the wonderful constituency of Hexham. It has many assets, not least the amazing race course that sits high above the town. From there, one can see Hadrian’s wall and three or four counties, and it is worth going there. I rode there in June 2009 and I confess that I am trying to persuade someone else to give me a ride again. But it is proving a little difficult as most people do not regard an ageing politician as their ideal jockey.

It is a sorry tale that the betting levy has been in such dispute for so long—in the House and in the racing forum. We are one of the few world leaders, on many levels and, if we fail to support racing, it will be the worst kind of short-sightedness. Both sides of the dispute accept that they have to run their organisation better and that the product must be improved. Many people are improving it—there is now much more diversity to the racing product. For example, 10 or 15 years ago, the idea that one would go racing and, at the end, watch Madness or Girls Aloud would not have been believed. Yet 20,000 people come to see them, and get everything going. That is a great credit to racing, but not enough is being done.

The overwhelming impression is that far too many have the bookmakers’ interests at heart. Since I became a Member, I have been struck by the might of the bookmaking industry. The truth is that bookmaking could not survive in its current form without horse racing. I therefore urge Ministers to do everything possible to support the work of trainers and the Jockey Club to sustain racing.

We are considering a small amount of money. One must not forget that in 2008, the levy was £115 million and in 2010, it was just over £75 million. That is the difference between total success and abject failure. None of the businesses, trainers, owners, jockeys—none of the infrastructure—would survive without adequate support from the levy.

It is a crucial decision. We are world leaders in so few things. One could argue that we were best at being unable to cope with snow until the great arrival of German winter tyres to bring us through. However, we are world leaders in one brand—horse racing. Clearly, investment needs to be made in the future of that great product. We need only look at the breeding that supports the infrastructure, and the hundreds of thousands of people who work day in, day out. I have been a stable lad and done my three horses.

[Peter Aldous]

I wholeheartedly endorse the policy that both my hon. Friends espouse. Do they agree that racing interests would be best served by speaking with one voice? There are currently too many sectional interests.

[Guy Opperman]

There is a diverse set of interests, largely because many individuals work on an individual basis, whereas bookmakers are multinational, FTSE 100, powerful companies. Betfair is one of the major companies launched in the past few years and Ladbrokes and William Hill are big companies. It would be better if we could speak with one voice. Racing is trying to do that.

I urge hon. Members to think of the sense of community and the wondrous people in Lambourn, Newmarket, Malton and Pulborough. They are special places, which we will lose if we do not get behind Ministers, and Ministers do not make an effort.

Horse racing is a wondrous and special sport. On 26 December, the whole world will be focused on Kauto Star’s attempt to win his fifth King George. I urge the Parliamentary Secretary to encourage us all to get behind the fight for racing, which cannot be allowed to wither and die. That will happen unless we change things.

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[Elizabeth Truss]

Indeed. If hon. Members are stuck in Norfolk, may I suggest that they will be catered for? Not only will they be able to purchase their turkey, potatoes, Brussels sprouts and a mountain of vegetables; we also have the world’s biggest sugar factory, so dessert is catered for. A by-product of the sugar factory is the heat that it generates, and tomatoes are produced in the greenhouses there. There is cheese—the Binham Blue and the Wells Alpine—for the cheeseboard, and, for those after-dinner drinks, we also have the only English whisky distillery.

Norfolk is indeed a county of bounty, with 80% of the land used for food and farming. It often strikes me that if Martians were to come to Earth and watch prime-time TV programmes such as “Come Dine with Me” and “River Cottage”, they would think that we were all obsessed with food. They would imagine that we spent all day thinking about where our food came from and how it was produced. They would also believe Norfolk to be a dominant part of the British economy, with its strong food and farming industry. There have been excellent developments at local level. An example is the development of the Norfolk food hub, which I am assured will have goats grazing on the grass roof of its exciting new building, but there has not been a growth of food exports in relation to food imports. In fact, over the past 10 years, we have imported nearly twice as much food, relative to exports, as we used to do.

[Peter Aldous]

Shocking!

[Elizabeth Truss]

It is shocking, particularly given that farming and food production is now Britain’s biggest manufacturing industry. The farming and food industry is often seen as a cost centre, rather than an income generator. In fact, at heart, it is a commercial enterprise. We can see that if we go to the Swaffham poultry auction, or the Swaffham market. I believe that agriculture and food need the same access as other industries to talented people and to capital, because that would help to generate more income from the food and farming industry.

One of the huge issues for food and farming is the high demand for skills and new input into the industry. Running an average farm now requires only an eighth of the number of people needed 40 years ago, owing to mechanisation and improved technology, but those people need to be highly skilled. They need to be technically trained, and they need to understand business. There are opportunities in agriculture for highly skilled engineers, technicians and graduates from other disciplines. For example, David Lawrence, who runs the very successful agricultural academy, Easton college, spent 18 months searching for an agricultural engineer. This is a problem for farmers and for the food industry across my constituency, and it is very important to get graduates and skilled engineers into the industry. It is a great industry, and we need to encourage talented, qualified people to come to Norfolk to work in it.

Unlike America, England does not have vast prairies that yield economies of scale. We do, however, have great access to European markets, high quality products and immense marketing capability, and we need to use them more. Let us look at the Foreign and Commonwealth Office’s progress in expanding exports. I fully support its efforts to make greater use of our commercial capabilities and our embassies and high commissions abroad. Food and farming should be one of the leading industries that the FCO promotes. Heygate’s flour mill in Downham Market has had great success in promoting flour products in the middle east, for example, and there is no reason why such successes cannot be replicated across other industries.

We can deliver for Britain. Agriculture has a great future as an export industry because of the sheer quality of our produce, but it also has an immense emotional connection to Britain. Internationally, people value British food. I was at an airport recently, and I saw Marmite on sale, ready for people to take out of the country. That is the kind of export leader that we need to think about.

I was shocked to read that we now import 67% of our apples. In the 1960s and 1970s, great orchards were uprooted so that we could have the Pink Lady apple in this country. Anyone who remembers our native breeds knows that an English apple tastes better, and I would particularly recommend Norfolk apples. It would be of huge benefit to the Treasury to see more native apples exported, as well as being eaten here, and it would be great to see the fens repopulated by the fabulous orchards that used to dominate the region. May I also say that good practice starts at home?