Regional Growth Fund

Richard Burden Excerpts

Tuesday 1st November 2011 Westminster Hall

[David Tredinnick (Bosworth) (Con)]

I congratulate the hon. Member for Penistone and Stocksbridge (Angela Smith) on securing the debate. I have listened to her complaints about Government strategy, but I will not dwell on those, because I am sure that the Minister, who was making notes, will have a few things to say about that.

I want to address the issue of the regional growth fund and explain why it has been fundamentally important to my Leicestershire constituency, which sits on the boundary of the east and the west midlands. The Government’s decision yesterday to grant regional growth fund second round support to the MIRA technology park will make a huge difference not just in my constituency—my hon. Friend the Member for Nuneaton (Mr Jones) nods his head—but right across the midlands, because it will impact on some of the areas with the greatest problems.

The new MIRA technology park, which desperately needed regional growth fund status, was approved by Her Majesty’s Government in August. This new technology park will attract up to £300 million—perhaps more—in private investment. It is also likely to create and be responsible for up to 5,000 sustainable jobs. We can argue about the numbers—it depends on the catchment area—but it is a massive boost to industry in the heart of England. I represent the heart of England where the Fosse way crosses Watling street. We expect 200 jobs to be in place by 2013, largely based in a 43,000 square metre state-of-the art engineering centre, and a 155,000 square metre research and development facility, which will incorporate a new technology park.

[Richard Burden (Birmingham, Northfield) (Lab)]

I agree with the hon. Gentleman about the importance of MIRA. I congratulate it on being successful, with the promise of RGF money, as indeed Jaguar Land Rover was a little while ago. However, does he agree with my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith), who said in opening the debate that the promise of money is not much use unless it is actually delivered in practice? The Government need to think about how they can deliver RGF money rather than just make promises.

[David Tredinnick]

I understand that the hon. Gentleman speaks on behalf of his motor manufacturing constituency. Obviously, there is demand for more regional growth fund support. Where we are now with the RGF is very helpful, and it is successful for reasons that I will develop.

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[Esther McVey]

That is indeed vital. When we talk in the House and our words are taken down in Hansard and when people look at it on the internet, people must not just hear doom and gloom, because in reality many positive things are happening and they are coming from private industry.

[Richard Burden]

rose—

[Phil Wilson]

rose—

[Esther McVey]

I will give way first to the hon. Member for Birmingham, Northfield (Richard Burden).

[Richard Burden]

The hon. Lady has said that she hopes that the Government will learn as they go along about how to deliver the RGF more effectively. Why does she believe that there have been delays? I am sure that businesses in her area are complaining about that quite a lot. There have been many delays in delivering money already promised. Why does she think that is?

[Esther McVey]

Let me correct that. I do not think that the RGF will be delivered more effectively, but that it will change along the way, as small and medium-sized enterprises link together and put in bids for £1 million. Everybody knows—I was slightly startled by some Members’ comments about this—that due diligence must be done and that money must be targeted at the right people. That is what people in business do—full stop. These things take some time.

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[Mr Prisk]

It is self-evidently the latter, which is why we established the local stewardship model. It is why in July we offered Members of this House the opportunity to meet Ministers, and why we are repeating that exercise on Thursday. We are determined to ensure that the assets are used for the benefit of the local economy. I hope that the hon. Lady will come to that meeting so that she can understand that.

[Richard Burden]

The Minister has talked about confidence and about unlocking and levering in investment from the private sector. Does he not accept that the performance of the RGF is important in maintaining confidence? Let me give him an example. As far as Longbridge is concerned, it is difficult to get the confidence from the private sector to unlock investment when the Government are not clear about what is going on. We can only point for so long to the investment that the previous Labour Government made by way of a new college and a new innovation centre. The private sector wants to know whether this Government back the Longbridge project as well. It really needs answers pretty soon.

[Mr Prisk]

After the dithering by the Labour party over Longbridge and that site, the hon. Gentleman should be a little careful about what he says. We made the situation crystal clear to the owners, the local enterprise partnership and the city council. Those discussions are in hand, and I am confident that they will be concluded successfully.