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Mr. John Burnett (Torridge and West Devon): I am grateful to my hon. Friend, who is making a powerful case. We in Devon are delighted that Cornwall has received objective 1 status. Does my hon. Friend agree, however, that if the Devon arc does not achieve objective 2 status, investment and jobs will go to Cornwall or remain in the prosperous areas to the east of the Devon arc, leaving us with a corridor of neglect?
Mr. Sanders: My hon. Friend makes an important point. There is already evidence of that. A prospective call centre that wished to locate in my constituency is now looking at Cornwall rather than Devon because it has objective 1 status. There could be more such cases in future if our bid is not successful. One of the criteria laid down by the European Commission--which is also part of the Government's remit--is to assist areas adjacent to those that receive the maximum objective 1 support.
Ms Candy Atherton (Falmouth and Camborne): I am grateful to the hon. Gentleman for giving way. He will know that we in Cornwall were very grateful for the support of colleagues from Devon for our bid for objective 1 status. Is he aware of how much we recognise the importance of Devon's objective 2 bid? It is important to acknowledge that we are not in competition here. One reason for Cornwall's success was the unanimity across the wider south-west that we needed objective 1 status. It is vital that the message gets through that Cornwall is also calling for objective 2 status for the hon. Gentleman's constituency, just as Devon called for objective 1 status for us.
Mr. Sanders: The hon. Lady is absolutely right. Other partnerships of support are emerging throughout the south-west. I was very pleased about the support from Somerset, Gloucester and Bristol and from right across the south-west, as well as from Cornwall.
Our economic problems did not occur overnight with the loss of a major employer or an industry such as steel or shipbuilding, but the social and economic effects are just as severe. The question that has to be answered is not whether the area should receive assistance but when.
The Plymouth-Torbay-Devon arc bid is not an immediate reaction to a new set of events, but a considered response to a long-term trend. Traditional employment opportunities have been in long-term decline, new sectors have failed to emerge and low-wage and often part-time employment dominates the labour market.
The trend towards low-wage and part-time employment has increased in recent years. The majority of jobs in sectors under threat, such as fishing and defence-related industries, have been full time and higher paid. As those jobs have declined, they have been replaced by predominantly part-time and lower-paid service sector jobs. Even in lower-paid industries, such as agriculture and tourism, there has been a move away from year-round, full-time jobs to more seasonal part-time jobs.
Even though there is a strong and vibrant hotel and catering industry in the region, and especially in my own constituency, it supports far fewer people in the area than it
did in the past. Gone are the days when a small guesthouse could generate enough to provide a sole income for the owners. Gone are the summer months when family-owned local shops would get a boost in trade that stopped the business from going under in the winter months. Gone are the week-long, bucket-and-spade holidaymakers in their thousands, whose holiday pay circulated in the local economy for months after their visit.
Today's visitor will spend more, but less of that money will stay in the local economy. It will be spent in national accommodation chains, nationally owned petrol stations and superstores, nationally run entertainment centres and tourist attractions and nationally franchised fast food outlets. Nationalisation in the literal sense has seen to that. Globalisation has had similar effects in fisheries, agriculture and defence--the other main south-west industries.
One of the main consequences of those changes is that well-educated, trained and skilled labour is fast becoming our main export to the rest of the United Kingdom.
Our problems were recognised under the far south-west objective 5b programme, the Plymouth objective 2 programme, through funding drawn down under European social fund objective 3 and Community initiatives such as PESCA, LEADER and KONVER.
The far south-west has an established track record of successfully implementing a number of European programmes, but the nature, mechanics and scale of previous programmes have only slowed the economic decline of the region. The 1994-99 programmes can be regarded as the start of the process of reversing decline, but it is far from complete.
The intention behind the new objective 2 bid is tobuild on past programmes. Already, a comprehensive partnership of local councils, businesses, community groups and voluntary organisations have come together and identified the main drivers for change. They include competitive small and medium enterprises. The long-term prosperity of the region is dependent on a strong, outward-looking and competitive business sector.
Technology and knowledge-based industries are also important. The growth of industries in which physical location and accessibility are less important presents opportunities for the far south-west. For example, 70 per cent. of all internet traffic in north America is transported on equipment made in south Devon. With our skilled work force, clean environment and strong university bases in Plymouth and Exeter, the area is very well placed.
We need to support sectors in transition. Adjustments in the agriculture, fisheries, defence and tourism sectors have hurt the local economy. With support from all four of the strands in the objective 2 programme, we can help those industries to create new opportunities and improve their competitiveness.
Mr. Anthony Steen (Totnes):
The hon. Gentleman is wise to have given way to me, because I intend to support him on this occasion and say what an excellent initiative he has taken in securing this debate. My hon. Friend the Member for Teignbridge (Mr. Nicholls) and I share his sentiments and support his case, and we hope that the Minister will be able to give us some good news.
Does the hon. Gentleman agree that one of the major factors in getting new money into Devon is that we should have a good transport network? Does he share our concern about the lack of railway development and agree that, without good air and rail transport, new industries will not want to locate in our area?
Mr. Sanders:
I thank the hon. Gentleman for his support and agree that transport links are crucial. We may be able to tackle some of the transport problems through objective 2 funding, so it is doubly crucial that we secure it.
Community regeneration is another important economic driver. The major task will be to tackle the severe deprivation in the region's major urban centres as well as in some of the smaller towns. The failure of trickle-down approaches to the regeneration of deprived communities is now widely accepted. The region has a strong track record in community-led and co-operatively structured initiatives, with wealth and job creation centred on local needs, local labour markets and local solutions.
I think that the case has been made. It is one with which the Minister is familiar, as he has taken the trouble to visit the region and sample the reality of our economic circumstances. For that, we are grateful, and we assure him that a warm west country welcome awaits him should he want to make a return visit.
We await with confidence the Government's decision on which areas will qualify for the new objective 2 programme. There is all-party support for our case, and a wide partnership of councils, businesses and voluntary organisations is working together and hoping for the best. We know that we meet the criteria and we can demonstrate that we have the networks and partnerships to maximise the opportunities that objective 2 designation will bring.
The Minister for the Regions, Regeneration and Planning (Mr. Richard Caborn):
I thank the hon. Member for Torbay (Mr. Sanders) for securing this debate. We are trying to bring more sense to the way in which we spend public funds in the English regions and to consider more strategically all the elements that need to be put together to tackle the problems in areas such as his, which, as he says, I visited a few months ago. The regional development agencies have a role to play in advising Government on the disbursement of the single regeneration budget, on the development of our assisted areas map and regional selective assistance, and on the structural funds.
We are genuinely trying not only to formulate joined-up policies for the regions but to get joined-up money to implement them. The representations of the RDAs have made this an interesting period.
Mrs. Linda Gilroy (Plymouth, Sutton):
I congratulate the hon. Member for Torbay (Mr. Sanders). This debate is as important to my constituents as it is to his.
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