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11.38 am

Mr. Andrew Stunell (Hazel Grove): I am grateful to be able to contribute to the debate. I must offer congratulations to the hon. Member for Salford (Ms Blears). The hon. Lady has not quite persuaded me that Salford is a tourist destination, but she has done very well as a start.

My constituency is tucked in the extreme south-east corner of the north-west region. However, I assure the House that there is a strong sense of identity and community over the issues that affect the whole region.

It is perhaps worth emphasising briefly the context in which the region finds itself and what has happened to it over the past two decades. If we are considering the coal

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industry, the steel industry, the textile industry or even investment in the rail industry, we must recognise some of the difficulties that have had to be overcome and some of the wounds and bruises that have been left on the regional economy. It is perhaps no surprise that within that context, there have been major population shifts and changes. A recent estimate is that the population of Merseyside is set to decline by about 10 per cent. and that of Greater Manchester by 2 per cent. in the next census period.

At the same time, as the hon. Member for West Lancashire (Mr. Pickthall) has said, our connection to Europe has become more and more important. Therefore, I shall devote the rest of my contribution to examining how we might exploit and develop that connection and how we might heal the wounds and bruises to which I have referred. The hon. Member for Ribble Valley (Mr. Evans) intervened to ask how many letters had been received about an elected regional development agency. I have received the same number of letters about that as I have about the setting up of single regeneration budgets. Stockport council has sought vigorously to participate in the SRB process, but--like many other public bodies and institutions in the north-west--has become snagged in a nightmare bidding regime. That is an inheritance from the previous Government that I hope that this Government will get rid of as quickly as possible.

Stockport made bids in three consecutive years and spent more than £100,000 on bids that were unsuccessful. We have now got some single regeneration budget money and we are grateful for it. However, when the council submitted in priority order the 27 projects for the reduction of class sizes that it believed should be supported by the Department for Education and Employment, the Department took no notice of the council, its education experts and the head teachers, allotting the money apparently on the random rolling of the dice. That is another example of the bidding system failing to support investment in the north-west in the most appropriate and targeted way.

The citizens of Stockport contribute £30 million a year to the national lottery, but they do not receive anything like that--

Mr. Simon Burns (West Chelmsford): It's a lottery.

Mr. Stunell: They do not receive that amount in prizes or projects. The national lottery receives 20 bids for every one that is successful. We should end the bid culture and bring back to our region the responsibility for taking decisions about spending resources.

The Liberal Democrats are very pleased that we are to have a single regional development agency for the north-west. Regional accountability is important, and we want to see the development of an overall economic strategy for the north-west. Is the Minister yet able to announce the membership of the RDA? We expected to learn that in October, but we have not yet done so. The RDA must swing quickly into action, but how will it be linked to the training and enterprise councils? We need to consider carefully how to develop training in the north-west. I remind the Government that if we seek successful models of regional development, both Spain

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and Germany provide excellent examples. Strong, democratic and locally accountable regional bodies are the source and the essence of their success. Will the Government think again about democratic accountability for the RDA?

We need two sorts of infrastructure for success in the north-west. We need what I call software infrastructure, including democracy and devolution on the one hand and enhanced training and education on the other. Investment on a grand scale in the hardware infrastructure is important, but so is investment in the software infrastructure. In other European countries, democracy and devolution enhance the value of spending and investment in the public and private sectors. Training and education are also important and the north-west has an enviable reputation for the development of engineering skills. Indeed, Hazel Grove is the birthplace of Fred Williams, the co-inventor of the first functioning computer in the world, which was developed 50 years ago at Manchester university. Despite our innovative engineering skills, Microsoft and Sanyo are not based in this country, let alone in the north-west. We are not good at exploiting our assets.

We also need investment in hardware infrastructure. I support what other hon. Members have said about investment in the west coast main line, but I go further and ask the Minister for a quick decision on the application to start the Eurostar service from Manchester. The trains are sitting in the sidings and the company is ready to operate, but the Government decision remains long awaited. We also need confirmation that the channel tunnel rail link connection will be made on time, because rail freight and rail passenger services from the north-west to Europe will be crucial in the next decade. We also need local public transport infrastructure decisions.

At the conclusion of a previous Adjournment debate, the Minister boasted about the publication of a transport White Paper, but we need transport action. In Stockport and, especially, in Hazel Grove, the issue of access to Manchester airport will become crucial with the opening of the second runway. Passenger numbers will increase from 16 million a year to 30 million, but the infrastructure to cope with that increase is not in place.

The north-west offers a high quality of life to those who live there. It offers a high quality of environment to many, but not all, who live there. It also offers a good quality of economic activity to most of us who live there. For the future, we need to ensure that those benefits are extended to all. That will need this House, the regional development agency and the local authorities and councils to work together.

11.47 am

Mrs. Louise Ellman (Liverpool, Riverside): Over the past seven years, the public, private and voluntary sectors in the north-west have developed strategies on economic development, transport, training, innovation and the environment, working through the North-West Partnership and the North-West Regional Association. Now that the Government have appointed the regional development agency with executive authority to act, supported by the North-West regional chamber, we can move from developing those strategies piecemeal to a more focused effort to bring investment to the north-west. That will help to change the situation in which the north-west has one of

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the lowest gross domestic products per head in the country and contains many urban deprived areas, including Liverpool, which ranks first for urban deprivation in England and Wales.

I wish to draw attention to a major opportunity that has arisen to develop trade in the port of Liverpool, the area that I represent, and the whole of the north-west. The Good Friday Irish peace agreement has opened up new opportunities to develop the growing trade between the Irish Republic, Northern Ireland and the north-west through the expanding port of Liverpool. It is part of an initiative to develop east-west trade, linking both parts of Ireland with the north-west and developing a corridor creating a gateway to northern and central Europe.

The development of a regional development agency, speaking for the north-west and with authority to act--working together with the north-south ministerial council to be set up in Ireland, the British-Irish Council and the Northern Ireland Assembly--means that we are now in a unique position to develop that expanding trade.

I was pleased to chair and help develop an important new trade group between the north-west and Ireland which met in the House of Commons three weeks ago. My hon. Friend the Member for Bootle (Mr. Benton) and I held a meeting with the Irish Businesses and Employers Confederation, the Northern Ireland Confederation of British Industry, the Bank of England, the North-West chamber of commerce, the Mersey Docks and Harbour Board, the Warrington Project and other industrial and commercial groupings, together with the chairman designate of the RDA.

That group was set up to develop trade between Ireland, the north-west and northern Europe. It recognises the growth in trade between both parts of Ireland and the north-west, and the fact that 30 per cent. of goods from Ireland come to the United Kingdom. It also recognises that, in 1997, 2.5 million tonnes of freight passed between Liverpool and Ireland. That is part of the development of Liverpool and the expansion of trade and the generation of wealth there.

To develop that trade link between Ireland, the north- west and northern Europe we must look for opportunities to develop exports. We need to identify new markets by researching different sectors, to identify and remove barriers to trade and to consider policies for backing small and medium enterprises, both as part of this initiative and more generally.

We must consider investment in SMEs, the need for new technology and communications, investment in the west coast main line and in the Liverpool-to-Hull rail line, and the development of the port of Liverpool. We should also consider co-operation between education institutions.


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