North can ride out economic storm
Sep 23 2008 by Paul James, The Journal
THE North East can “ride out” the economic storm with Newcastle driving the region’s development, experts yesterday declared at the Labour Party Conference.
Newcastle’s cutting-edge Centre for Life has built on university links and development of creative industries has helped the region diversify from traditional industries, according to the respected Work Foundation.
The organisation, called in to help Downing Street develop economic policies, said challenges still existed over workers’ skills and boosting entrepreneurs but gave an upbeat assessment of the region’s future at a fringe event at the Labour conference in Manchester.
North East business and union chiefs also said the region was in a strong position, particularly with exporters enjoying record success, amid signs of a wider economic downturn.
The upbeat assessment came as Chancellor Alistair Darling warned of “extraordinary, turbulent times” amid a global financial crisis, huge rises in oil, food and other bills – but promised the country could cope.
Critics of the Government in the North East last night said ministers were “learn ing as they go along” and that they had “little confidence” in their ability to turn the economy around.
Taking to the stage at Labour’s Manchester conference, Mr Darling said: “The strength of our economy and the talent and resilience of this country means we can be confident about the future.” He also insisted the Government was acting to help people facing rising bills and stabilising the financial system, highlighting the “right” decision to nationalise Northern Rock.
Legislation strengthening supervision of banks and protection for depositors is being introduced in the Commons in a fortnight, added the Chancellor.
Alexandra Jones, associate director of the Work Foundation, said: “The North East does face challenges as everywhere else does. I think the fact Newcastle is one of the key areas within that region means that Newcastle probably will be able to ride out the storm reasonably well.”
But she warned a lack of entrepreneurship, a “reliance” on public sector jobs and skills remained challenges.
Ross Smith, head of policy at the North East Chamber of Commerce, said: “We have got a much more diverse economy than we have done in the past in previous difficult economic periods. So we are better placed than we ever have been.”
He added a crucial point was the success of the region’s exporters, which are enjoying record levels of success.
“That is making a huge contribution not just to the North East but to the UK,” said Mr Smith. He warned the Government had to have the right policies in place to support business, adding it was the wrong time to impose a new tax on empty properties and force firms to pay more for skills training.
Regional TUC secretary Kevin Rowan said: “Whenever there has been an economic downturn, the North East has always fared worse. But the analysis feels at the moment we will suffer less than other parts of the country and recover quicker. We are expecting a difficult time, but it will be more severe elsewhere.”
Last night Greg Stone, a senior Liberal Democrat on Newcastle Council, said: “Given what Darling has been saying up to this point that this is the worst recession for 60 years, there is relatively little confidence in Darling and Brown’s ability to navigate this crisis.”
Lee Martin, Tory group leader on Sunderland Council, said: “They do seem to be learning as they go along but it is a shame that a lot of things that have been put into action weren’t a year ago because locally we are really feeling the effect from Northern Rock job losses.”
