Newcastle - a Working City

DRAFT SPEECH

NEWCASTLE - A WORKING CITY

Cllr Nick Forbes

Leader of Newcastle City Council First can I say how thrilled I am to see you all here today, and welcome you here to Newcastle’s Council Chamber.

Above all, I want to thank you, Newcastle’s business leaders and entrepreneurs, for the work you do day-in-day-out to build your business, for the critical contribution you make to Newcastle’s civic life, to jobs and skills, to the fabric of this city, and to the future of its citizens.

Newcastle has had so many fine examples of business leaders over the centuries. And now, more than ever, this city and this region needs leadership from the private sector. There’s no denying the tough times we live in. The challenges facing every business. The difficulties you face in raising finance, in managing cash flow, in taking on new workers in such an uncertain environment.

And in these difficult times, you might reasonably ask: what difference can local government really make?

The Council doesn’t pretend it can directly create jobs. We don’t have an open cheque book for grants. We can’t fund large scale job creation or business support schemes. And actually, in the modern business environment, I don’t think that’s what you’re looking for from us. What I think you do have the right to expect is a Council that helps the city be open for business. You need us:

. to provide excellent services,

. to be proportionate in our regulatory regime,

. to be active in stimulating investment,

. to help attract new business and promote the city into wider markets.

. to promote the skills of the workforce – particularly young people taking their first step into the world of work.

But you will know that the Council itself is facing a great challenge. You may have seen that we recently published our draft budget for 2012 and beyond. We have had to make cuts of over £30 million this year alone, with significant numbers also lost from our neighbouring authorities. That in itself could be an economic threat to the city. So all the more reason – within these tighter financial limits – to do all we can as a Council to improve our commitment to the Working City:

. A Fair Procurement Policy, responding to proposals from the North East Chamber of Commerce to create more opportunities for local business. . An investment of £500k a year in Newcastle Futures, matched with a contribution from Jobcentreplus, to help more people into work and skills.

. New apprenticeships – not just for the Council itself, but to support placements into SMEs.

. A new Business Winning Service, hosted by the NewcastleGateshead Initiative, to promote the city nationally and internationally.

. Our £1.7 million Enterprising Newcastle programme, securing European funding to support new business creation in the most deprived parts of the city – advised and promoted by an “Entrepreneur in Residence”.

. The creation of a new Economic Development Unit within the city council, bringing together our responsibilities for the city, the region, and our links to business – able to work across the council to ensure all our policies and programmes work together to meet the needs of business.

But this event is not about the Council, it is about the future of our City. The consultation document we’re publishing today “Newcastle – A Working City” sets out our plans to attract inward investment, to support innovation and science, to help people gain skills. We demonstrate our commitment to take forward our joint work with Gateshead and with the North East Local Enterprise Partnership.

Some might be surprised by the optimistic tone of this document. But I actually think now is exactly the time to be looking to the future – and to keep optimistic about the prospects for our city.

Economic problems knock confidence. And if we’re not careful that becomes a self-fulfilling prophecy.… so let’s shout loudly about every bit of good news on the economy. Confidence about the future will help deliver the future this region deserves.

Despite the worst possible national and international economic background – we have had some great recent successes:

. More than £80 million of investment on the North Bank of the Tyne, generating 500 new jobs with many more in the supply chain;

. The launch of the new Siemans Energy Services Training Centre, bringing 1000 people a year to Newcastle to build their skills in renewable energy.

. The success of NE1’s Alive After Five campaign.

. The opening of the Toffee Factory in the Ouseburn

. The successful establishment of Asian Business Connexions . The commitment from the Council, NE1 and Network Rail to redesign Newcastle Central Station, creating a new space for business, and a more confident gateway into the region.

. Investment on the Science Central site, including the successful bid to the Regional Growth Fund.

. Expansion plans from Newcastle Airport and Jet2.com.

. just this morning I visited Hoults Yard, a successful media village connecting Newcastle to the world, through a range of creative buisnesses and an associated cultural programme

And, of course, the commitment that Virgin Money has made to Newcastle, as the operational headquarters of an ambitious growing business, with an excellent workforce, and with a strong commitment to its local community.

So it’s with great pleasure that I welcome representatives of Virgin Money, to Newcastle, and to the community of north east businesses. And let me assure you that this Council, your Council, will do whatever we can to ensure that you never – for one second – regret the commitment you have made to this city.

Of course, we also know that amongst the good news there’ve been some disappointing announcements as well. The decision by UK Asset Management to wind down its Newcastle office - we’ll be working with colleagues in Sunderland Council and the company, to secure as many jobs as we can for the North East. And we’re also working with Carillion, to head off the threat to their Energy Services business in Newcastle, as a result of the government’s damaging proposal to reduce the financial benefits of solar power installation.

All parts of the country will need to play a role in supporting economic development and a resumption of growth. But I also think Newcastle and the other core cities have a special responsibility. If the economy of Newcastle fails, the region fails. As the principle economic hub for the north east, we can only secure a successful region if the city at its heart is thriving. That’s why parochialism is such an enemy of prosperity, and why I am committed to the closest possible cooperation with our regional partners. As I said in my first major speech as leader of this Council, the economy doesn’t exist within administrative boundaries – there is an invisible thread which ties us together. Every new investment and new job created in Cramlington or Consett, Wallsend or Washington is a benefit to the people of Newcastle – because it builds confidence in our region as a great place to start and build a business.

Yesterday the Deputy Prime Minister made an important speech which recognised the critical role of city leadership. I agree with him that now is the time for the cities to step into the prominent role that has often been promised, but never actually delivered. As part of this, we are calling on Nick Clegg to move forward – without delay - the proposal from Newcastle and Gateshead for an accelerated development zone, secured through funding flexibilities that allow for the long-term investment we need. This is crucially important:

. In the long-term, to allow us more freedom to use the city’s resources for investment in the city;

. In the medium-term, to invest ahead of recovery; and

. Immediately, to enable us to act with urgency to create the economic stimulus we need to get some of the 10,000 unemployed people in Newcastle back intowork.

We welcome Government’s warm words about the opportunities for Newcastle and we are ready, willing and able to seize what is on offer for the benefit of our city and our region.

As a Labour politician, you might expect that I don’t believe in economic growth as an end in itself and I don’t believe that economic growth is always a guarantee of social progress. I recognise the threats that unconstrained growth can bring to our environment, to social and family ties. And insecure jobs with poverty pay can have just as damaging an impact as unemployment. I know from the people I represent here in inner city Newcastle the social effect of individuals trapped in a cycle of periods in low paid, temporary work.

Long term economic change has had a profound impact on people in this city. As traditional jobs were lost - it forever ended long held ties that bonded communities together. The response to this challenge has been hard fought and taken a long time. As a child growing up in Weardale, in rural County Durham, a trip to Newcastle was a rare treat. We would usually come through three times a year – school uniform shopping, Christmas shopping and to spend my birthday money. So I can testify to the transformation this City has undergone since my childhood. A stroll through the Sunday Quayside market is a great reminder of how things have changed. Derelict warehouses and gloomy spaces have been replaced by vibrancy andbustling on both sides of the river.

The North East economy was growing faster than the national average and we were closing the gap with the rest of the country. We were confident and proud of what had been achieved.

Then it came, an economic tsunami that has, and still is, swirling around the world. All we had achieved seemed to be in danger. And that is why we are here today. We have to show again that we can transform our economy and this time we have to do it ourselves. We no longer have our RDA or the resources that went with it. But I believe the key to our economic future is gathered here in this room today. Whatever my political differences might be with this Government - they have set us a challenge and we will rise to that challenge.

And that is why I am fortunate to be Leader here in Newcastle, a city which is big enough to feel exciting and dynamic with all the cultural and social facilities you’d expect, and yet small enough that we can and do work together.

When it comes to our economy it seems there is going to be only one constant - and that is change.

At a time of great social, policy, institutional and economic change, the places that will prosper are those that can respond. And the City Council is in a unique place to enable Newcastle to be that place, not directing, not necessarily leading, but by bringing people together, by listening, by enabling. The document you have is not the answer, it is the start of a conversation. One I would implore you to get involved in. We need to know how you got where you are, so we can ensure the young people sat in classrooms across Newcastle as we speak can do the same in the future. Because it is not just their future that depends on it, it’s ours too. This Council, this administration, is committed to making Newcastle a working city. It is one of four priorities I have set for the City. I ensured that economic development is within the Leader’s portfolio and I am delighted to have my Deputy Cabinet member here, Cllr Michael Johnson, with responsibility for Skills, Business and Enterprise.

So I will fight for economic growth in this city because I know – and Newcastle knows all too well – the devastating impact of high unemployment on our social fabric – the wasted opportunities and wasted lives.

I know that without the jobs created by the businesses represented in this room, we’d be going backwards as a city. Without jobs, investment and economic growth we fail in our obligations to pass onto our children a better society than the one we ourselves inherited.

You’ll say – I hope – that there’s more we can do. You’ll have strong views on how the city as a whole can respond to the economic challenges we face.

This is a Green paper – for consultation – and I look forward to hearing your responses.

Our future is in our hands And now it gives me great pleasure to introduce our keynote speaker, a real champion of the North East, the Rt Hon David Miliband MP