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Regional Economy (Tackling the Recession)

If my hon. Friend would like to arrange such a meeting I would be more than happy to come with him. My understanding is that the dialogue with the Department is good, but if he wants to raise a specific point directly with me and my hon. and learned Friend the Member for Redcar, I would be happy to attend such a meeting. I am not willing to leave any avenue unexplored. My hon. Friend is also right to emphasise the commitment of the parent company to the plant. I am aware that it has done things that are clearly motivated by helping the plant through, rather than exacerbating, its current difficulties. It is no good pounding one’s fists on the table saying, ““It’s all unfair!”” As public representatives we have to set our hearts against that futile approach. It is certainly not a line that I have ever taken, regardless of how tempted I have been. People put their trust in us and they expect us to do the very best we can for them. They expect us to square up to difficult issues as well as just front the easier ones. Above all, they expect us to have the courage, determination, knowledge and the sense of purpose to stand up for the issues that they tell us—and that we know for ourselves—are important. They also expect us never to give up and say that nothing can be done or to walk away from an issue. We are obliged to do our best for the people we represent and to square up to the circumstances, no matter how difficult. I take that approach and I know that my hon. Friend does as well—it will see us through these difficulties. I return to my address with several pages to go while being mindful of your injunction about brevity and interventions, Mr. Cook. As we know, the economic downturn has added an additional impetus to my work—the thrust of the interventions has emphasised that, even if I did not have it written down in my speech. It is more essential than ever because particular emphasis has to be placed on engaging with representatives of the private sector. As well as meeting business organisations, I have aimed to get into the detail by engaging with specific sectors and focusing on specific issues. That includes meeting representatives of the manufacturing sector and process industries, the banking and finance sector, the tourism sector, the logistics and infrastructure companies and the recruitment sector, including Jobcentre Plus and the private bodies that intervene in the labour market. I pay tribute to the development agency and the Government office for the region, as well as to the local authority leaders for ensuring that every local authority has signed up to the Government’s prompt payment code—a commitment has been given by local government to pay suppliers within 10 working days. It is a great success story for our region. Considering that one of the core problems is liquidity, and therefore cash flow, that is a significant commitment. I and other regional Ministers tabled the issue at the Council of Regional Ministers and the Government responded by committing central Government Departments to pay invoices within 10 days. Nine out of 10 invoices are now paid within that time scale, which ensures that something like £66 billion in payments reaches the businesses quicker than ever. Without revealing any state secrets, at least two Cabinet meetings have gone through each Department’s payment rates and compared Department with Department. Those that are not performing as well get much chided by their Cabinet colleagues. The issue is being looked at right at the heart of the Government. We are now promoting prompt payment across the wider public sector. As we have discussed, the principal issue in my meetings with private sector organisations has been access to finance. Our response, which again reflects great credit on the officials who serve our region at regional level, is a programme that has been approved by the Treasury: the Joint European Resources for Micro to Medium Enterprises Initiative, or JEREMIE. It is a £125 million fund, the first of its type in England. It will provide loans and equity investments into 650 firms, initially over a five-year period. It is anticipated that it will create more than 5,000 jobs in our region. It will provide hundreds of north-east businesses with access to vital finance. Considering that that is the core problem that the private sector raises with me, it is a good response—all credit to those involved in bringing it about. By taking up the issue of empty property rate relief, we have secured a concession that covers 77 per cent. of empty property in the region and seven out of 10 properties nationally. The Government’s determination to get the regions through the economic downturn has led to action at national level that benefits our region and helps cash flow for businesses. Trading losses carry-back will be extended from one to three years for up to £50,000 of losses and now covers losses made in 2008-09 and 2009-10. That will help 4,000 businesses in the region. There is £1.7 billion to help Jobcentre Plus respond to rising unemployment. In August 2009, more than 17,700 people moved off jobseeker’s allowance in the north-east, and the additional support will help ensure that we keep the labour market moving, which is key to achieving my ambition of tightening it.