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Building a High-Skilled Economy

Absolutely—my hon. Friend makes a pertinent point. If we were to follow the lead of some of our competitor nations by investing appropriately in skills, we would put our country, our young people, and the people who work in those sectors, in a much better position to secure their long-term future. The parties opposite have also made proposals for the regional development agencies. The RDAs have played an important role, and the East Midlands Development Agency has made an important contribution to supporting industry in the east midlands and in Derby. That has helped to create the job opportunities and the growth that are so desperately required. We must not indulge in a race to the bottom. The Government seem to want us to move to a low-wage economy, but there is no future in that for this country. We simply cannot compete on that basis, because we will never match developing nations such as India, China and others and the wage rates paid to workers there. We must invest in those high skills that Derby excels in through companies such as Rolls-Royce and Bombardier. That is why I regret the announcement this morning about Bombardier, which will almost certainly lead to redundancies. If we do not support such companies, they could go elsewhere, because they are global, and they will simply bid for contracts from their European bases. If there is a market failure, it is essential for the state to intervene and smooth out the difficulties, such as those afflicting the country as a result of the worldwide economic downturn. If we do not do that, it will cause significant problems for the economy—and for young and old alike. No jobs for people means lower tax revenues to support our public services, and we will end up in a downward spiral to disaster.