Hint of increase in North power
Jul 3 2008 by William Green, The Journal
AMINISTER has signalled that more power could be handed to the region after being warned that action on infrastructure and tax is needed to boost the economy.
Employment Relations Minister Pat McFadden gave the hint in the Commons after Labour MP Fraser Kemp stressed the region’s economy had been transformed but that more action was needed.
Mr Kemp, MP for Houghton and Washington East, said hundreds of new jobs linked to the local Nissan car plant, or to inward investment schemes like the arrival of sports firm Nike and major IT developments, have transformed the economy.
He sounded positive about the Rainton Bridge development in his constituency, with the potential for 4,000 jobs and £100m in investment.
“Northern Rock was due to relocate staff there and we await (executive chairman) Ron Sandler’s restructuring plans, but we remain optimistic that the development will do well,” he said. But Mr Kemp stressed the need for good infrastructure with council chiefs submitting plans to improve the central route into the development.
“I urge the minister to speak to colleagues in the Department for Transport to ensure that the council’s revised bid gets early consideration and a quick answer,” said the MP.
He added that the Government should look into how councils could identity and purchase development sites in advance and to review the impact that full business rate had on unused sites.
“We should not have detrimental fiscal policies that might act as disincentives to developers prepared to invest heavily, as part of a speculative venture, in new building in the hope of attracting jobs,” said Mr Kemp.
Mr McFadden said strengthening regional economies was a key strand of the Government’s policy and praised the transformation in the North East.
He added that the Government was investing in infrastructure and in Sunderland through a wide range of projects, supported by European Union cash.
Discussions were ongoing between the Department for Transport and Sunderland City Council about the city’s strategic transport corridor, while £20m had been invested in the local aquatics centre intended to be a 2012 Olympics training site.
Mr McFadden stressed regional business remained broadly optimistic even in uncertain times and promised further measures beyond funding to boost the economy.
“We also have to streamline the bureaucracy and increase delegation, and that is what we are doing through the sub-national review,” he said.
“The successes in the North East give us confidence to delegate more to the region.”
