Economic Growth: South-west

Peter Heaton-Jones Excerpts

Tuesday 5th February 2019 Westminster Hall

[Sir Hugo Swire (East Devon) (Con)]

I warmly congratulate my hon. Friend the Member for South West Devon (Sir Gary Streeter) on securing the debate and publicly congratulate him—I think this is the first time I have been able to do so—on his well deserved knighthood.

I know that several organisations in the south-west are watching our debate with keen interest. My hon. Friend the Minister for Agriculture, Fisheries and Food, the Member for Camborne and Redruth (George Eustice), who is also a south-west MP, is also with us. I think that he is one of the longest-serving farming Ministers ever, and we are grateful to have him sitting in on these deliberations. I am sure that my hon. Friends will have enjoyed reading the briefings from the National Farmers Union, the Devon chamber of commerce, the Federation of Small Businesses and the Heart of the South West local enterprise partnership, which conveyed a passion for expanding the region’s potential.

The key question is how we can attract high-value, non-seasonally dependent jobs, enhance our productivity and secure clean economic growth for the region. Admittedly, we have perhaps grown too accustomed to using terms such as “productivity”, “growth” and “connectivity”. A notable example is the Government’s flagship industrial strategy. Its four grand challenges put the UK at the forefront of the industries of the future: artificial intelligence and data, ageing society, clean growth, and the future of mobility. As many hon. Members would no doubt agree, its comprehensive scope marks out the Conservatives as the party with the long-term plan for our country. No Government or multinational corporation is free from the risk of descending into obfuscation when talking about economic growth, but let us step out of Whitehall-speak and the lexicon of glossy masterplans. When we talk to our constituents in our email bulletins, meeting halls, surgeries and correspondence, we must tell them how investment will increase the number of jobs and improve living standards.

I recently had the pleasure of another visit to the Exeter science park in my constituency. The science park helps innovative science, technology, engineering, mathematics and medicine companies in a campus-style setting. It covers sectors such as cyber-security and renewable energy. The site is on track to grow, so that 200 to 700 jobs in 2020 will rise to 2,100 by 2027. The wider region is well connected, with immediate access to the M5, the nearby Exeter international airport and Exeter itself. I represent two wards in Exeter—St Loyes and Topsham—and I am pleased to say it will be one of the UK’s fastest growing cities over the next three years. A practical example of that outstanding growth is Luminous, a start-up that is designing, developing and exporting state-of-the-art special effects hardware for the global entertainment industry. Its rate of jobs growth—from one person to eight people in a mere 12 months—is a trademark of the technology industry. Yet it is not in tech-savvy Shoreditch but in the heart of our region. That is what economic growth looks like on the ground: it is new consumers, new careers, and a better quality of life.

The case for Exeter science park is strong, as it seeks to add more buildings and expand its capacity. I speak not purely as the Member for East Devon but, I am sure, on behalf of my colleagues in the south-west, who would like it to expand and thrive. That is why I urge the Minister and other interested parties who are watching today to get behind Exeter science park so that it can fulfil its potential.

The main impediment to the business growth of Exeter science park is the fact that it has to repay loans on its science park centre. The science park had to take out loans of £6.5 million—mainly from the local enterprise partnership, at a commercial rate—because grants were unavailable during its start-up phase in 2013. Private sector loans were not available because Exeter science park had no assets; they were held in trust by a local authority. Given the vast resources going to the part of the world with which the Minister—he is responsible for the northern powerhouse—deals, he might find that extraordinary set of circumstances difficult to recognise, but it is yet another example of how we in the south-west feel slightly discriminated against.

My first request—this is the Minister’s road to rehabilitation—is to consider how we can use Government capital infrastructure spending to reduce, or ideally erase, those debts. Secondly, how can the Government assist in encouraging Government-backed technology and projects to locate to the science park? If the Minister were able to assist with both those matters, it would provide a huge endorsement for our often-overlooked region. Why, for instance, would an engineering giant such as Rolls-Royce, or a defence contractor such as Babcock—it is already strong in Plymouth, as we have heard—not expand alongside the innovative tech start-ups that are already located there?

Members often lament how our neglected south-west gets limited airtime compared with other UK regions. Local authorities, LEPs and businesses up and down the land compete vociferously for a pool of Government investment. However, we should talk up areas where our regional economy is doing well, and talk practically about how we can do even better. That is surely the way to sell the benefits of economic growth to the public, and attract new jobs and companies to our south-west.

[Peter Heaton-Jones (North Devon) (Con)]

rose—

[Alex Chalk]

rose—

--- Later in debate ---

[Peter Heaton-Jones (North Devon) (Con)]

Thank you, Mr Owen, I shall not take up too much time, because I want my hon. Friend from that south-west central city of Cheltenham to get in—

[Alex Chalk]

Town!

[Peter Heaton-Jones]

Oh, it is a town—well, there we are; even less of a reason.

It is a pleasure to serve under your chairmanship, Mr Owen, and to speak in this debate initiated by my hon. Friend the Member for South West Devon (Sir Gary Streeter). I thank him for his kind words about the campaign to get funds for the north Devon link road. Yes, that is something I have gone on about. As a relatively new Member, my name popped up on the Order Paper to ask a question of the Prime Minister. The then Prime Minister, David Cameron, approached me in the Lobby and said, “I bet you’re going to bang on about the north Devon link road.” I said, “Absolutely, Prime Minister, I am.” When he said that to me, I thought, “Well, we’ve won this battle, and I am proud to be banging on about it.” We made that happen with the success that comes with £83 million of Government funding, plus £10 million from Devon County Council. The north Devon link road is a vital bit of our infrastructure and part of the connectivity that my hon. Friend and other colleagues so correctly identified.

Connectivity is a vital driver of the economy not only in north Devon, but in the entire south-west. That includes roads such as the A361, the A303, the A30 and the A358, but it is also about railways, which have been mentioned at some length. I echo what has been said to the Minister. This is not his Department, but perhaps he could have a quiet word in the ears of his hon. Friends in the Department for Transport and ensure that when we have an announcement, it will be the news that we need about long-overdue investment in the resilience of the vital route that connects the south-west peninsula with the rest of the country. I look forward to that happening; I hope it will be in the next couple of weeks.

I also wish to mention the railway line in my constituency, and I declare an interest because I am proud to be the honorary president of the Tarka Rail Association—[Hon. Members: “Hear, hear!”] Thank you. It is one of the roles that I am proudest to hold, because that organisation has done much to promote the need for investment in the line that links Exeter and Barnstaple, and will continue so to do.

In 2019, connectivity also means digital connectivity. I have had numerous meetings with Connecting Devon and Somerset, British Telecom, and Airband, which unlike in the rest of our region—it is not Gigaclear—is the contract holder to provide fast and superfast broadband in north Devon. I have had a number of meetings with Airband to try to push that agenda forward. It is vital that that continues, because although a lot of good work has been done so far, we need to do more.

Those who put together the south-west growth strategy reckon that properly investing in our region’s connectivity could produce gross value added economic benefits of more than £41 billion and create 22,000 jobs—that is how important it is to get connectivity right. Colleagues have also mentioned agriculture, which is extraordinarily important in north Devon and the greater south-west, and a great contributor to economic growth. There are excellent farming businesses in my local economy, and it is well documented that they can help to close the productivity gap.

Let me acknowledge David Ralph, who is in the Public Gallery. He is head of the Heart of the South West local enterprise partnership, and it is good to see so much support for the region as a whole. According to the excellent report by the South West Rural Productivity Commission, our rural local authority areas account for 60% of all workforce jobs—far above the figures for elsewhere in England—which shows how important it is to get growth right in our rural areas.

Let me raise a couple of other issues that I think are important. We have placed a bid for a south-west institute of technology in our area, which is vital. Petroc College and other institutions in my constituency are really pushing hard for that, and part of it will be based in Barnstaple. That could be a real driver as far as the Government’s economic and industrial strategies are concerned. I see that time is running away, so I will end with pretty much the same phrase as the one with which I ended another debate on this subject, initiated by my hon. Friend the Member for South West Devon about 18 months ago. We hear a great deal about the midlands engine and the northern powerhouse, and of course they are important. In the south-west, however, we are like a coiled spring. We have so much potential ready to be unleashed, so I say to the northern powerhouse, “You ain’t seen nothing yet!”

[Albert Owen (in the Chair)]

I call another coiled spring, Mr Chalk, who has three minutes left.