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Mr. Andrew Miller (Ellesmere Port and Neston): I could not agree more with the thrust of the right hon. Gentleman's argument, but why, under the Administration of whom he was a member, was there no investment in the west coast main line or--more important, and more relevant to the specific point that he is making--in rolling stock for the freight industry? Ludicrously, we are still in the situation that we inherited from his Administration: V6 engines leaving a very successful Vauxhall plant in Ellesmere Port are being exported to Europe by road because his Administration left no rolling stock for the freight industry.

Mr. Jack: In reply to the first part of the hon. Gentleman's intervention, sadly, the investment that should have been made in the west coast main line depended on the tilting train working, and it did not.[Hon. Members: "Oh."] I always try to be fair. If there is a fault, those of us who were part of the previous Government should acknowledge that. However, because the tilting train did not work, all the railway investment went to the east coast main line.

Yes, there may well have been a dearth of investment in freight, but we should consider the progress that English, Welsh and Scottish Railway, the new freight company, is making in its purchase of 300 locomotives and new specialist facilities. Had freight services remained nationalised, none of that investment would have been possible. It is a pity that the hon. Gentleman is not prepared to acknowledge the benefits that have already flowed to the north-west economy--its routeways and roads--as a result of the transfers to rail freight that EWS is making. The Conservatives set the industry free.

I do not want to go into details, but I hope that, when the Minister reflects on the debate, he will not forget the importance to the region of agriculture, especially horticulture. The horticulture industry still employs a

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large number of people. If the Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food, Lord Donoughue, read the comments regularly made in Grower magazine, he would understand why the Government have a poor reputation in the horticulture industry. It is time that the Government developed a proper strategy for the development of the industry, because it is vital to the north-west.

I close on a point about the human capital of the north-west--its people, whose ability or otherwise to make an economic contribution reflects the condition of our health services. At present, a small group of people is inhibited from making its contribution to the economy because of the poor state of renal services in the Royal Preston hospital. I should like the Minister to convey to his friends in the Department of Health my earnest wish that the work being undertaken by the Department of Health and by Sir Leslie Turnberg in a review of regional services--including renal services--in Lancashire, will gel together to enable an early decision to be taken on the need to expand renal services in Preston. The people who are affected by the current pressures on those services might be able to make a better contribution to the north-west economy if decisions were taken on the expansion of those services.

I hope that I have been able to paint a broader picture of the north-west economy, drawing attention to some of the challenges that must be met by hon. Members and Ministers if we are all to ensure that the north-west region, which we represent in the House, prospers in future.

11.28 am

Mr. Colin Pickthall (West Lancashire): I congratulate my hon. Friend the Member for Salford (Ms Blears) on securing the debate. I shall persuade my wife to read her speech in Hansard. Perhaps she will then stop pestering me to take her to Paris, and instead we shall nip down the East Lancashire road and visit Salford. It would be an awful lot cheaper.

Undoubtedly, after years of neglect of the north-west, there is now a steady overall improvement, which is continuing, despite the trading difficulties experienced by much of manufacturing industry. I welcome the strides that the Government have taken, but I shall draw attention to many issues that should be addressed to allow the momentum of economic improvements to gather pace.

One of the things that most irritates me as I look back on the past 20 years is the tendency of Government in London to regard deprivation and social exclusion as primarily a matter to be addressed in the inner cities. Deprivation and social exclusion also exist in smaller towns--those that have lost traditional industries, such as textiles, or suffer from levels of disadvantage similar to those of inner Liverpool or inner Manchester.

Towns such as Barrow, Burnley, Preston, Rochdale,no doubt Ellesmere Port, and Skelmersdale in my constituency do not receive the automatic attention that they deserve. It is true also, as the right hon. Member for Fylde (Mr. Jack) said, that the incidence of social exclusion and economic failure in rural areas is not negligible. Systems to tackle that difficulty are only just being devised.

It is important to remember that Cheshire, Lancashire and Cumbria are predominantly rural areas and that they are about to lose their objective 5b status. Skelmersdale

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is a town of about 45,000 people. It experienced some of the most violent effects of recession during the Tory years. In recent months, the tide seems to have turned for the town. Unemployment, which was more than 13 per cent. when the Tories left office, is now down to 8.7 per cent. However, that is still twice the national figure.

The economy in Skelmersdale is becoming more exciting and stimulating. New businesses are moving in to the extent that we have run out of industrial and commercial business land. Investment in Skelmersdale is growing rapidly and that is due to three factors. First, it is due to regional selective assistance and assisted area status. Secondly, the local partnerships that have been formed have been tremendously successful, largely thanks to the energy and intelligence of West Lancashire district council, in this context at least. These are the partnerships between businesses, public agencies, community groups and the county council. Thirdly, there is the expansionist mood of several key industries in the town, to which I shall refer.

Assisted area status as we know it is up for significant change, and Skelmersdale is in danger of losing it. Most of west Lancashire is in the Liverpool travel-to-work area; it is on the northern edge of Merseyside. Many workers move in and out of Merseyside and Skelmersdale for their work, which makes more sense as their travel-to-work area than a Lancashire countywide area would. To use different criteria for designating assisted area status for Skelmersdale would damage a town that has, as I have said, twice the national rate of unemployment. It would damage also the local partnerships which have hitherto been very successful in attracting continuing investment into the new town.

Other problems have been created by the way in which Department of Trade and Industry grants have been used to underpin foreign investments in some new plant in the region. We all welcome such new investment in the region, but it seems foolish to put taxpayers' money into, for example, a new paper mill in Trafford Park. I wish no harm to Trafford Park and its development. However, A and M Paper in Skelmersdale has invested huge amounts of its own money in expansion in the town, and Kimberly-Clark has similarly put massive investment into a paper mill in Barrow, and each of those indigenous firms will find themselves in regional competition from heavily subsidised rivals.

The same is true of a firm called Europanel inmy constituency, which makes Contiboard. It faces competition from a Portuguese firm, Sonae, which has been subsidised to move an identical factory in Kirkby, about four miles away. It will operate in a sector of production in the country that is already oversupplied. I know that the DTI is not the responsibility of my hon. Friend the Minister for the Regions, Regeneration and Planning, but in my view the DTI should tighten up on those investments, and I hope that that will be a function of the regional development agency in the near future.

The north-west is one of the country's premier agricultural areas. Two thirds of the region is rural. It is the region that was most damaged by the BSE tragedy. Cheshire and Cumbria--particularly Cumbria--were hard hit by it. Similarly, Lancashire has many pig, poultry and egg producers. They are again in deep recession. My right hon. Friend the Minister of Agriculture, Fisheries and Food has had some remarkable successes in Europe and in his negotiations with British retailers, all of which have

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been deeply appreciated by the agricultural community in the north-west. However, the depression in the industry is still with us. It spreads outwards to have an effect on rural life generally in the region and it is unlikely to be resolved for some months.

Each of the factors to which I have referred adds up to a compelling case for the RDAs to get cracking as soon as possible and for the Government to start planning for full-blown regional elected government. The RDA must get a grip, perhaps sector by sector rather than area by area, of the strategic planning for the north-west. That would help us avoid unhelpful decisions about the assisted area map or about DTI grants, which can damp down regeneration in the north-west's most disadvantaged areas.

Equally, the RDA must, as a matter of urgency, tackle the region's transport infrastructure. I agree absolutely with what the right hon. Member for Fylde said about the M6, through Lancashire particularly, and about the west coast main line. It is clear that the mixture of private rail and coach companies is entirely unable to sort out transport in the region. That must be a job for the RDA.

In my view, the RDA must impose on itself a rural filter. A rural representative on the board is not enough--indeed, it might be counter-productive. Every decision that the RDA makes should be viewed in the context of how it enhances or diminishes the lives of people on low incomes, especially those living in rural areas, as well as how it enhances or diminishes the rural environment.

Above all, the RDA must reflect all the region. It will be too easy for it to be dominated by Manchester. I say that with all due respect to Manchester, which has a lot of muscle. I accept that it would be strange if it did not use that muscle. I hope that my hon. Friend the Minister will consider closely the composition of the board to ensure that it properly reflects the entire region. I hope also that in the not-too-distant future we shall start examining regional representation in the new House of Lords, further to strengthen the north-west in that place.

Finally, I suggest to the Minister, who I know has his heart in the regions and in regional development, that he will receive huge support from the 64 Members of the north-west parliamentary Labour party in his work towards the development of RDAs and regional government. The Opposition have been making many noises recently about the terrors of our moving towards a Europe of the regions. Speaking for myself, I would positively welcome such a move. I think that there are tremendous advantages in the regional structures that our European partners have and of which we are deprived. I look forward to the strengthening of those structures in the not-too-distant future.


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