Public Bodies Bill [HL]

Lord Campbell-Savours Excerpts

Monday 28th February 2011 Lords Chamber

Debate on Amendment 49 resumed.

[Lord Campbell-Savours]

My Lords, I intervene briefly because I shall concentrate my remarks during proceedings on the Report stage of the Bill. I want to say a few words about how we need to consider what has happened historically when considering the future of the development agencies. I believe that the closure of the RDAs, particularly in the north of England—and when I talk about the north of England, I mean the north-west, Yorkshire and Humberside and the north-east—is ill-advised and misconceived, and will ultimately be damaging to the regions.

We really need to learn the lessons of history. My mind goes back to the early 1980s, around 30 years ago, when I was a young MP. The debates in the Commons at that time were totally dominated by the decline in the regional economy in the north of England—particularly in shipbuilding, steel, heavy engineering, mining and textiles. Week after week, Question Time after Question Time, Labour MPs—sometimes with Conservatives joining in as well—got up to object to what was happening in the region and to ask how the problems of the region were to be resolved. I was a member of the northern group of Labour MPs. We were constantly being lobbied by industry, employer groups, the trade unions and the local authorities. The CBI in the northern region was prominent in lobbying Labour Members of Parliament to ensure a change in the Government’s regional strategy at that time. I remember a man called James Cran, whom some of us might recall. He subsequently became the Member of Parliament for Beverley in Yorkshire but was then the leading figure in the northern CBI. I remember him appearing on Border Television and north-east television repeatedly, week after week, demanding a reversal of the strategy and some alteration in regional policy. The cry was universal: “We need a regional strategy”. The constant refrain was, “The centre cannot deliver”, because the centre was not delivering. Laissez-faire regional strategy, despite European money, meant that the concentration of footloose investment and capital accumulation more widely was in the south. That was our problem.

Time and again, the differential in house prices and unemployment rates between the north and the south was cited as evidence of a north-south divide in economic development. As the late John Smith put it 26 years ago, in a debate on regional policy and the need for a regional strategy with agencies delivering, which I remember well from 17 January 1985:

“What is frightening is that the Government appear to be impervious to the damage that they are causing. As the economic storm clouds gather over Britain and become more serious every day, the Government plunge blindly on destroying as they go. When they are finally called to account, the missed opportunities and wanton destruction of regional development policy will, I hope, be high on the indictment”.—[Official Report, Commons, 17/1/85; cols. 543-44.]

I say that history will repeat itself. What John said then will be relevant in these coming years unless there is a change in strategy by the Government.

Then I remember the Labour Party conferences in the north of England being dominated by the debate on the need for a regional strategy. Often at the forefront of those debates was the then north-east Member of Parliament Ian Wrigglesworth—now Sir Ian—who I understand the Government have brought in to help with their new regional strategy. Maybe that is no longer true and my noble friends can correct me if I am wrong, but I read somewhere that he has now been brought in. I remember it all as though it were yesterday. It was the debate that dominated all of my 21 years in the House of Commons.

I remember the huge debate that was launched in the north in the early 1980s following the publication of a paper entitled—I know my noble friends will remember this—Let’s Pull Together for a Better North. If I recall correctly, it was a paper jointly sponsored by the late Joe Mills of the Transport and General Workers’ Union and the late Lord Burlison, who was in this House. I go on about this because history will repeat itself if we go down this route. Even at this late stage, the Government should revise their strategy.

--- Later in debate ---

[Lord Empey]

First, I have not denied anybody anything. I am just beginning to develop my argument. The fundamental point is that these organisations in the devolved regions are becoming systematically weaker. They have less ability to direct financial aid because the selective financial assistance, which was their principal weapon, is diminishing very rapidly and in a couple of years’ time will be gone altogether. The whole emphasis is shifting on to the development of skills. We had a fantastic conference in the United States last September and October hosted by the State Department at which we were given the opportunity to put Northern Ireland’s case. What was really interesting to potential investors was no longer grant aid; it was whether a region had a sufficient centre of gravity and critical mass of skilled people with the right skills in the right place to attract people. You can no longer buy in companies.

Sitting in the Chamber tonight is the noble Lord, Lord Ballyedmond, one of our premier entrepreneurs. I dealt with him and his colleagues on a number of occasions, and they were frustrated because the agencies and organisations could sometimes get in the way of business. Therefore, the question is: what is the right balance? Is it going to be possible to develop a national policy that will allow for the creation of the correct skill base? That will be far more important to foreign direct investment—and indeed, I believe, to indigenous investment—than financial aid in the future because the latter is going to be reduced and will be so small. I remember examples of £20,000 being offered per job created and perhaps even more. On average, it was £7,000, £8,000 or £10,000 per job created, but those days are gone and are not coming back. I certainly feel that this list of agencies is no longer sustainable but, at the same time, it is perfectly clear that you cannot create a complete vacuum.

[Lord Campbell-Savours]

If the responsibility that the noble Lord is referring to in the case of Northern Ireland were transferred to London, does he believe that the centre in London could deliver?