North-West Economy

Stephen Mosley Excerpts

Tuesday 20th July 2010 Westminster Hall

[Stephen Mosley (City of Chester) (Con)]

As we have heard from all those who have contributed today, we have much to be proud of in the north-west. We are already Europe’s 12th largest regional economy and we have a larger economy than many European Union countries. We are home to more than 250,000 businesses and we consistently outperform in attracting inward investment to the UK. We are a world leader in nuclear energy, home to Europe’s largest bio-manufacturing region, the largest centre of chemicals production and the No. 1 exporter of pharmaceutical products. We have Europe’s second-largest media hub, and the UK’s largest financial and professional services centre outside London. We are also the UK’s largest aerospace and defence manufacturing region and one of the largest motor manufacturers.

However, the north-west has not been immune to the recent recession. Britain has had the longest and deepest recession on record and the longest recession in the G20, with six consecutive quarters of negative growth. We are seeing the effect of the recession across the region, and we need to ensure that we play our part in securing our nation’s future economic and financial success. Our biggest challenge is overcoming the fiscal inheritance of the new coalition Government. Failure to bring the deficit under control will only lead in one direction—higher interest rates and higher taxes. Such a situation will suffocate growth, strangle wealth creation and stifle people’s hopes of a better future.

[Rosie Cooper (West Lancashire) (Lab)]

I wonder whether the 1980s and early 1990s passed the hon. Gentleman by? I was not the MP for West Lancashire at that time but, in places such as Skelmersdale, the real unemployment rate was 50%. We are in a difficult worldwide recession and we have lots to do. That goes for all parties. You have your position and we have ours. I believe you are putting families and the needy—

[Mr Christopher Chope (in the Chair)]

Order. That was far too long an intervention. I am not involved in the debate and I am not going to become involved.

[Stephen Mosley]

The hon. Lady must remember that there was increased employment, growth and general prosperity by 1997, because of the action taken before then.

Taking urgent action is unavoidable and I am delighted that the Government have acted decisively to bring the deficit under control. The Government’s swift action has meant that we can be optimistic about the future of our region’s economy. There are two important drivers of economic growth in the north-west: first, the Government’s national action with respect to the country’s economy as a whole; secondly, the action we take locally as Members of Parliament to involve our local councillors and business communities in boosting our local economies.

I represent a constituency on the very edge of the north-west, and we have important economic ties to neighbouring regions, especially north Wales, so for me the idea of a unified north-western economy is rather abstract. For example, few would argue that Chester’s economic future is more closely related to the economy of Carlisle than to that of Connah’s Quay in north Wales. However, those external relationships have not been fully recognised, and the opportunities offered by our neighbours have not been fully followed up and secured.

The rigid regional attitude might even have proved to be a psychological barrier to growth in areas such as Chester on the edge of the north-west. That is why I am particularly pleased that the Government are replacing the remote Northwest Regional Development Agency with the more local, accountable and relevant local enterprise partnerships. This is not only my view, but the view taken by Cheshire West and Chester council, which, along with Cheshire East and Warrington borough council, has decided to pursue the aim of having a Cheshire and Warrington LEP. A recent statement from the Cheshire and Warrington Enterprise Commission shows that it is not only the elected politicians who support the idea of an LEP. It said:

“A new Local Enterprise Partnership (LEP) in Cheshire & Warrington could transform the local economy, bringing significant benefits for businesses and residents. We should grasp this opportunity with both hands. In the longer term this will enable us to deliver our ambitious growth targets and really put Cheshire & Warrington on the map.”

[Mr Christopher Chope (in the Chair)]

I must cut the hon. Gentleman off there, because otherwise we will not have time for the winding-up speeches.

[Stephen Mosley]

Thank you, Mr Chope.