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Economic Downturn (Unemployment)

That subject would have been a distraction to my Committee, as it is now. If indeed we are looking at a slow return to growth—we can only hope that we are—we must start looking at the future and at how the south-west economy can move past this crisis and build on its many inherent strengths. I mentioned at the start of my speech about growing the prosperity of the region and ensuring that growth returns remain a priority. We must do that with our eyes firmly set on the long term. We must address the problems with connectivity— already touched on today—ensuring that businesses in the south-west are well connected to London, the rest of the UK and the rest of the world, both via conventional transport—road, rail, air and sea—and along the digital highways. We must have a connection to that pipeline along the Cornwall and Devon coastline. It is ridiculous that a globally recognised company, such as Twofour in my constituency, should have to send data to London for dispatch because it is quicker and significantly cheaper—a tenth of the cost. That has huge implications for businesses considering relocation. Why would they come to the south-west for the fantastic quality of life alone, when they cannot connect quickly to the outside world? They would go to the south-east or perhaps the north-west, where those links are already in place. In Plymouth there are proposals with businesses and the local authority four-square behind them, but we need central Government support. I am glad that the Minister has already indicated his interest in supporting us in that. Peripherality is also an issue with conventional transport. I do not want to prejudge the next Select Committee inquiry on transport—all Members are welcome to offer thoughts on that—but no doubt we shall hear from a significant number of people in our region who will express the view that investment in our region’s transport has been inadequate and that nobody really understands, certainly nobody in Westminster, just how large and long a region we are. There is a bizarre view that the journey from Plymouth to Penzance should take about an hour. It probably should, but it does not. The distance down to the far south-west has always been misunderstood, and across our constituencies we can all see the problems that that produces. We need faster and more reliable links, and that might involve looking at an inland route for the railway around Dawlish, and more secure slots for regional airports in London. Those are all views that have been expressed to me in recent weeks, and they deserve consideration. I welcome the announcement of the electrification proposal for Bristol and south Wales, but that does not immediately help the far south-west. In addition to connectivity issues, we must continue to support the work of local employers and agencies in upskilling our work force and facing the challenges of the new economy, especially the green economy. In the south-west, we are blessed with a wealth of potential for being at the forefront of the green economy. As the Government rightly aim to reduce carbon emissions from energy production, they should certainly look at the south-west as a major contributor, with its abundance of tidal and wind power, which can be harnessed to help not only to combat climate change but significantly to diversify local economies, which are still predominantly service-based. It can provide highly skilled, secure jobs for local people, which is something we can all support. Investment in the wave hub is welcome, but media stories today suggest that support for UK firms is inadequate, and the Government clearly need to look at that. Companies such as Babcock in my constituency, with all its engineering skills, ought to be spoken to. Such companies’ expertise should be sought when it comes to producing the sort of equipment we need to make green energy generation more efficient and effective. Babcock already does a great deal of work in the new nuclear sector. I am sure that others across the region have expertise in other sectors that could be imaginatively realigned or expanded to work in the green economy. In addition, in the Plymouth area alone, there are examples of innovating local companies. The hon. Member for South-West Devon and I have been talking to a number of them that cross our boundaries. They feel that they are being stifled at birth by ““the establishment””—their words. Ideas are out there, but people are not being encouraged to develop them. There are interests whose standards could and should be challenged, but one feels that they are being protective of their status. I want to see opportunities for those ideas to be taken forward. The university of Plymouth is working with local businesses and others to encourage that type of enterprise, but we need to see other bodies, such as the Energy Saving Trust and the Government, through building regulations and research establishments, opening their doors to some of those people and not seeing them as having the next wacky idea. Some of the ideas may not be realistic, but there is a sense that they have potential and that potential is being lost. I am not sure that we have the right gateways to support them. Business Link is not quite the right body to do this work and the Government should be exploring how universities in particular could be more helpful in this area. I will close now, Mr. Key, because more Members want to speak. In closing, I want to say that if we seriously believe that the south-west can compete with the other UK regions, we need to fight for a level playing field. Since the late 1940s, the south-west has consistently underperformed and connectivity has been the key issue. Successive Governments have failed to understand that only by reducing travel times and making journeys to London from Cornwall, Plymouth and Gloucester comparable with journeys from Newcastle, Birmingham and Scotland can competition be more equal. The same applies to digital highways, and I know that my hon. Friend the Under-Secretary of State for Environment, Food and Rural Affairs and my right hon. Friend the Minister understand that. I ask them to continue to ensure that it is also understood across the big-spending Departments. Only when that message sinks in will the UK economy truly benefit from all that the south-west can offer.