The impact of the current economic situation on the North West and the Government's response - North West Regional Committee Contents


1  Introduction

Background to the North West Committee

1.  The North West Committee is one of eight regional select committees established in November 2008 following a recommendation by the House of Commons Modernisation Committee.[1] The Modernisation Committee argued that there was "clear evidence of an accountability gap at regional level", and that although Regional Development Agencies (RDAs) and other bodies were accountable to Ministers, many of their activities in the regions were "not subject to regular, robust scrutiny".[2]

2.  Our remit is to "examine regional strategies and the work of regional bodies".[3] Our role as the North West Committee is therefore to scrutinise the work of such bodies in the North West. These include the Northwest Regional Development Agency (NWDA), Business Link Northwest, the Government Office for the North West (GONW) and the regional offices of national agencies.

3.  Our membership was appointed on 3 March 2009. Unfortunately only Labour members were appointed to the Committee, as other political parties have declined to take up their places on regional committees. We are disappointed that Members from other parties have chosen not to participate. However, we have adopted the practice of other select committees in carrying out our work in as non-partisan manner as possible. Our principal concern has been to find ways of improving circumstances for people and business in the North West.

Our inquiry

4.  In this, our first inquiry, we decided it was important to look into the issue that is at the forefront of everyone's minds at the moment—the economic downturn. We wanted to consider the regional context—the impact on the North West and whether the response of the Government and its agencies in the region had been appropriate.

5.  In April 2009 we announced an inquiry into "the impact of the current economic situation on the North West and the Government's response". Our terms of reference were as follows:

  • the effect of the economic situation on the region, including the effect on different sectors and on different sub-regions;
  • the effectiveness of the Northwest Regional Development Agency in assisting businesses in the current economic downturn;
  • the response of the Joint Economic Commission, established by the Regional Minister in November 2008, to the economic downturn;
  • the capacity of the Government Office for the North West, Government agencies such as Business Link, Learning and Skills Council, and Jobcentre Plus, and other partnerships between Government agencies, local government and the private sector, to respond effectively to the economic downturn;
  • the usefulness of Government initiatives such as Real Help Now, in providing support and enabling access to finance, for businesses in the north west; and
  • whether the approach of regional Government and its agencies during the current economic situation strike the right balance between short term need and planning for the future.

6.  We received 22 written submissions, which we publish with this Report. We found this evidence very helpful in drawing our conclusions and we would like to thank all those who took the time to contribute to our inquiry in this way.

7.  We also held two public evidence sessions. On 15 June 2009 we heard evidence in Manchester Town Hall from Mr Damien Waters, Regional Director, CBI North West, Holly Bonfield, Chairman, North West Policy Unit, Federation of Small Businesses, Chris Fletcher, Member of the Regional Policy Committee, Chambers of Commerce North West, Alan Manning, Regional Secretary, North West TUC, John Korzeniewski, Regional Director North West, Learning and Skills Council, Mike Baker, Customer Services Director, and Peter Jamieson, External Relations Manager, Jobcentre Plus. On 8 July we heard evidence in Westminster from Steve Broomhead, Chief Executive, and Mark Hughes, Executive Director Economic Development, North West Development Agency, Vanda Murray, Deputy Chair, North West Development Agency and Chair of Business Link Northwest, Mr Phil Woolas MP, Regional Minister for the North West, and Liz Meek, Regional Director, and David Higham, Deputy Regional Director for the Economy, Government Office for the North West. We are very grateful to all our witnesses.

8.  We would also like to thank the Gujarat Hindu Society, Preston, for hosting an informal meeting we held shortly before we announced our inquiry.

9.  In our Report we consider first the impact of the economic situation on jobs and skills in the region, as it is the individuals affected by the downturn that cause us most concern. In Chapter 3 we then examine the impact of the economic downturn on business and assess the Government's response. In Chapter 4 we consider the role of the NWDA, including its revised priorities, performance and budget. In Chapter 5 we look at the role of the Regional Minister, including the effectiveness of the Government Office for the North West and the Joint Economic Commission. Finally, in Chapter 6 we consider the plans being made for the region's future.


1   A ninth Committee for London was established on 25 June 2009, although Members of this Committee have yet to be appointed. Back

2   Select Committee on Modernisation of the House of Commons, Regional Accountability, Third Report, Session 2007-08, HC 282, 2 July 2008, Summary. Back

3   Standing Order No. 152F. Back


 
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Prepared 31 July 2009