Economic Growth and Employment

Debate between Roberta Blackman-Woods and Andrew Bridgen

Wednesday 23rd November 2011 Commons Chamber

[Roberta Blackman-Woods]

I am sorry; I am running out of time.

We know that the RDA helped to invest in a new generation of advanced technologies with expanding markets around the world, which greatly helped growth in the north-east. Through industry, Government and university collaborations, a number of sectors were identified in which growth should be prioritised, including the processing and chemical industries, automotive and advanced manufacturing, and printable electronics. Those sectors, critically, were underpinned by centres of excellence supported by the regional development agency.

Did the incoming Government seek to build on that? No. What they did instead was get rid of One North East, although it had extensive support from businesses and the community in the north-east, and what we have in its place is the regional growth fund, about which I shall say more in a moment. The loss of the regional development agency led to a loss of expertise in regard to the sectors that needed to be developed in the north-east, and a loss of what was necessary to support that development. In great contrast, the regional growth fund not only has less money but is not strategic at all. I am very pleased that a number of north-east companies have benefited from the RGF, although the Secretary of State must address the fact that getting the money through to the companies is taking a long time.

[Andrew Bridgen]

Will the hon. Lady give way?

[Roberta Blackman-Woods]

No; I am sorry, but I am running out of time.

The RGF along with local enterprise partnerships and enterprise zones do not by any stretch of the imagination add up to an economic policy for growth for the north-east, or for anywhere else for that matter, because they are fragmented initiatives with no local coherence. The RGF will not help to narrow the north-south divide, either. As I have acknowledged, a number of companies in the north-east have benefited from the RGF, and according to the Government’s own figures that will secure about 8,500 jobs, but in the same RGF round money went to the south-east to secure 30,000 jobs.

The north-east’s problems are compounded by the fact that the RGF money is not a sufficient injection to the private sector to enable it to make up for the jobs that are being lost in the public sector. To put the figure of 8,500 jobs in context, last month alone unemployment in the north-east rose by 19,000. The Government must do more, therefore. In the past couple of weeks a number of independent commentators, including the North East chamber of commerce and PricewaterhouseCoopers, have said that the Government need to do more to support private sector development in the north-east, and our five-point plan for growth sets out a clear way for them to start supporting the economy.