North-West Economy

Esther McVey Excerpts

Tuesday 20th July 2010 Westminster Hall

[Esther McVey (Wirral West) (Con)]

I am delighted to be able to speak in this debate, which has been very constructive so far as people come to it with various ideas and views. It is true that we are all passionate about the north-west, and I know that the Government are too; it is a dynamic and thriving part of the country. It is also a powerhouse not just locally but for the whole country, and it is now viewed as one of the most vibrant parts of Europe.

The right hon. Member for Salford and Eccles (Hazel Blears) talked about manufacturing. The north-west is the UK’s second biggest vehicle manufacturing area, it accounts for nearly a quarter of British chemical output, and it is key to the aerospace industry. We have also talked about the creative industries. The media industry in the north-west is growing at twice the speed of that in any other region of Europe, with 31,000 businesses linked to the creative sector. In Liverpool, we have Sony Computer Entertainment Europe and Granada, one of the leading commercial television production and distribution companies. We also now have the introduction of MediaCityUK in Salford. The nuclear industry is worth £3 billion annually, and pharmaceuticals and biomanufacturing are pivotal industries employing 200,000 people. The region is also Britain’s biggest financial and professional services centre outside London.

Our area is dynamic and diverse. There is a lot that we can do, but I am concerned about the glue that will keep it all together. The region is diverse not just in what it does but in terrain and geography. How will we keep it together, looking forward to local economic partnerships? What will happen to the regional development agency? Do we need a strategic overview partner, of any size, to ensure that momentum is maintained? We know that the region is doing well, but on the other hand, life expectancy there is lower than in the UK as a whole, weekly earnings are below average and the number of jobseeker’s allowance claimants is above average. We have some of the worst unemployment statistics in the country, and more disadvantaged areas than any other region. We have done a lot, but we must continue to do a lot to address the incongruities from which the region suffers. The north-west is strong and united, but we must prioritise it to keep it going forward. My hon. Friend the Member for Warrington South (David Mowat) spoke eloquently about the need for education and skills, and plans for next-generation access.

The north-west is a main contributor to the economy in the field of transport manufacture, highlighting the need for continuing success in the sector. The region also had the lowest average daily motor vehicle use on the roads in 2008. We must keep it that way by increasing access to public transport. We need better rail links, and not only to the south-east and London. I am particularly keen on the development of the trans-Pennine rail link and links across the north-west, which are vital to our growth and could use and capitalise on features such as our super-ports. Infrastructure in our area is key.

More investment is also needed in high-speed broadband and next-generation access, especially in rural areas. In Wirral West, almost 55% of households are considered deprived in terms of access to broadband. That applies to many other areas in the north-west as well. Our Government have pledged to do more to link us all up and get faster broadband access. In Liverpool, a smart grid project is being considered that will bring together the private sector to connect socio-economically deprived areas, assess their energy use and make savings.

The north-west has the potential to be the European leader in renewable energy and the low-carbon industry. We have more sites devoted to creating energy from renewable sources than anywhere else in the UK, which gives us the capacity to generate the second largest amount of energy. We must see whether we can be first.

We have great potential to develop wind and nuclear power as well as continuing to focus on wave power. In Liverpool bay, various private industries are combining to consider next-generation wind turbines. We as a Government also need to consider where we can facilitate private industry and enterprise to gain a terrific return that would regenerate areas, provide work and draw money into the UK economy as a whole. Importantly, over the past few years the north-west has been the most successful UK region outside the south-east in attracting foreign direct investment projects. We have attracted some 511 projects between 2007 and 2010, and the equivalent of 7,000 new jobs have been created in the past year alone through 179 FDI projects.

Greater enterprise brings better job prospects and more employment to the north-west. That is particularly important for the young, as we have the most unemployment and the greatest number of young people not in education, training or work. It is key for young people to know that they have a future and that investment is coming into their area. There is a great drain of youth to the south and south-east, and I for one would like to keep some of those young people in the north-west.

The north-west is responsible for 20% of UK manufacture of chemicals, chemical products and man-made fibres. The sector is growing significantly, and we must ensure that it continues to do so. We need an investment strategy for the area. We cannot work in isolation; we must look outward, not inward. Although we know that we will be moving forward with city regions and local economic partnerships, how will those bodies work together for the greater good of the north-west? We are considering significant investment infrastructure that will cross sub-regional boundaries. How can we work as a whole to raise the region from its current plateau? We are vibrant and doing well, but how can we continue to do well, so that we can be a significant engine of employment and growth for the whole UK?