Infrastructure (Financial Assistance) Bill

Debate between Priti Patel and Hazel Blears

Monday 17th September 2012 Commons Chamber

[Priti Patel (Witham) (Con)]

I welcome the opportunity to contribute to this debate. I congratulate the Government on showing their commitment to infrastructure investment in the UK by introducing the Bill.

For all the criticism from Opposition Members, it is worth reflecting on the fact that over 13 years—I say this as an Essex MP—there was next to no infrastructure investment in the county of Essex or even in East Anglia. I welcome the fact that the Government recognise that investment in infrastructure is vital in providing jobs, growth and long-term economic prosperity.

Despite our economy being one of the largest in the world and our having spent most of the last decade as one of the world’s five biggest economies by GDP, our infrastructure has been neglected. It is interesting to see where we stand in the international league tables. The World Bank’s logistics performance statistics place us 16th in the world, behind many other economies. Unless that tide is reversed, the consequences for our economy will be catastrophic. Poor infrastructure is not only a barrier to British-based businesses, but makes Britain less attractive for foreign direct investment, which leads to less economic growth.

Every £1 that is spent on construction generates an estimated £2.84 in total economic activity. It impacts across the supply chain through the multiplier effect. I therefore welcome everything that the Government are doing. Of course, any money that comes into the Treasury helps to bring down the deficit, finance the debt built up by the Labour party and pay for public services.

I am pleased that the Government have recognised the importance of infrastructure. That contrasts with what we witnessed over the previous 13 years. I believe that it was one of the most cataclysmic failures of the last Labour Government that they did not adequately invest in infrastructure when the economy was growing. As a result, we have been left with road, rail, airport, energy, port, water and digital infrastructure that is not fit for our country.

[Hazel Blears]

Does the hon. Lady recognise that during the period of the last Labour Government, 101 new hospitals were built, and that under the previous Conservative Government, not a single new hospital was completed in this country?

[Priti Patel]

Speaking for Essex, I do not recognise that. The county of Essex has had no infrastructure spending whatsoever. Despite Essex being the county of entrepreneurs, where thousands of new businesses are started each year, and despite it being a net contributor to the Treasury, Labour neglected it. Local and regional infrastructure in Essex failed to keep pace with national and local economic growth. That is no doubt one of the reasons why the electorate booted Labour MPs out of Essex, full stop, at the last general election. It is now a Labour-free zone.