A stark warning has been issued about the future of Northumberland, which has been described as a political no man’s land that is dying on its feet.
It was delivered by the Labour MP for Wansbeck, Ian Lavery, after official figures revealed it to be one of the worst-performing economic areas in the whole of Britain.
Its perilous state was shown in the ‘gross value-added’ (GVA) statistics for 2013, which detail the value of wages and profits from goods and services produced.
For Northumberland, the figure is just £13,481 per head of population, the fifth worst in Britain, and dwarfed by the highest figure of £135,888 in inner London west.
Mr Lavery said at the root of the worrying figures was the fact that traditional heavy industries like mining have never been properly replaced, while the county struggles to compete with Scotland, which gets much more Government financial help.
“We have some great small businesses here but they are not on the same scale as mining,” he said.
“We’re a political no-man’s land. I really fear for the future. People need to be encouraged to invest here and it should be made a special case. It’s dying on its feet.”
His comments were echoed by fellow Northumberland MP Blyth Valley’s Ronnie Campbell, who said the figures showed how the county had been abandoned by successive governments of all colours.
“To put it right we need to be made a special case,” he said.
“We don’t want to be a basket case. They have to come up with a new Barnett formula which benefits this region.”
There had been talk of scrapping the Barnett formula, a local authority funding mechanism which favoured Scotland, Wales and Northern Ireland when drawn up 34 years ago to provide a boost to economies there, which were then struggling.
However, in the run-up to the Scottish independence referendum, in what was seen as an attempt to ensure a ‘No’ vote victory, all three major parties vowed to continue it.
Mr Campbell said as a result of the extra cash, Scotland can offer more inducements to new companies to invest there.
“It’s only 50 miles up the road. When the Barnett formula was drawn up, it was done to help Scotland, which was struggling. Now it isn’t and we are, it should be redrawn to help us.”
North East Chamber of Commerce Policy and Research Manager Mark Stephenson said:
“For many years we have campaigned about the lack of fairness of the Barnett formula, which seems to be having an increasingly negative impact on the GVA figures.
“Northumberland has many excellent businesses and a thriving tourism offer, but it is one of the counties that has been adversely impacted by the public sector cuts.”
Meanwhile Mr Lavery said: “When people talk about the North East they think of what Newcastle and Sunderland are getting, they think of Nissan and the Tyne and Wear Metro.
“But Northumberland is a million miles away from this.
“The best thing about this county is the resilience of its people.
“They will deliver if given the opportunity; they just need equal opportunities.”
Across the region the GVA per head stands at £17,381, compared with £40,215 in London. Only Wales, at £16,893, and Northern Ireland, at £17,948, have lower figures.
Tyneside performs best in the North East, with a GVA per head of £20,514, although this is still some way below the UK average of £23,294.
Source – Newcastle Evening Chronicle, 12 Dec 2014
Blame the teachers time again –
Schools failing to prepare North East pupils for career in automotive sector
– declares the headline in the Newcastle Journal, and continues:
Schools are failing to encourage children to consider a career in manufacturing – and the economy of the North East may suffer as a result, a major new study has found.
Pupils in Sunderland are not being given the advice they need to make an informed choice about their future career, said think tank IPPR North, with girls in particular failing to consider careers in science, engineering or technology.
Researchers from IPPR North worked with two schools in the city to examine the attitudes of pupils towards a career in manufacturing, and particularly in the automotive sector.
As part of the study, they arranged for pupils to visit Nissan’s factory in Sunderland, and asked them whether this had changed their attitudes towards manufacturing.
The think tank warned: “Employment avenues for young people are not being closed off so much as never being opened. A systemic lack of interaction between schools and businesses is restricting the career options of young people in Britain.”
The failure to interest girls in science, technology, engineering or maths – the so-called STEM subjects – was robbing the sector of potential future employees, said the report.
> With such high levels of local unemployment ? Pull the other one ! There is probably going to always be be more people than there are jobs, so hardly a lack of potential employees. Many of them will already have the necessery skills, and if they haven’t they could learn them… if the employers were willing to invest in a little training, of course. But that would probably bite into short-term profits.
It warned: “The lack of interest in post-GCSE STEM subjects and vocational education among girls is a cause for concern given that skills shortages in these sectors are looming.”
IPPR focused on the automotive sector because of its importance to the economy of the North East – and it said there is “evidence to suggest the automotive sector would continue to grow in the coming years”, making it even more significant. Around 1.5 million cars and commercial vehicles and three million engines are produced annually in the UK, and 70% of vehicles manufactured here are exported.
> Hmmm… and its not so long ago that call centres were being touted as the big new thing. Which they may have been momentarily, but as soon as the companies found they could transfer the work to low-wage (and thus higher profit) economies overseas, you didn’t see them for dust. Anyone want to bet the automotive sector wouldn’t do the same if it was deemed profitable ?
Nissan’s plant in Washington is Europe’s most productive car manufacturing site, responsible for one in three of all cars produced in the UK.
> It’s also generally understood locally (but unprovable) that Nissan don’t employ anyone over the age of 30. Not much hope for the older unemployed there.
However, the think tank warned that manufacturers were concerned about the lack of available skilled labour in the UK, which could limit future investment in the country.
> People aren’t born with the skills for a particular industry fully formed. What’s wrong with the companies involved training workers to the required level ? They always used to.
It also pointed out that “pay tends to be significantly higher for graduate engineers than for most other graduates”, but young people considering their future career were not aware of this.
> But not everyone can be a graduate engineer, nor is that the only job in manufacturing. Perhaps kids realise this. Or perhaps they just think there’s more to life than selling their souls to an industry that may up sticks and move abroad if they think it in their interests.
The study warned: “Given the importance of both good careers advice and business-school interaction in shaping the choices that young people make, it is essential that Government, schools and businesses take action to plug future skills gaps and change the perceptions of those who might potentially be attracted towards careers in the automotive industry, and in engineering more widely.”
> School are like government training schemes – you might get a nice certificate, but it does not prepare you for the world of work. But why blame the schools, it’s not their role to provide factory fodder, surely ?
Once again we seem to be rushing to put all the eggs in one basket – mining, shipbuilding, call centres, automotive … in a year or two the same claims will be made again about the next transient industry, and all the unemployed automotive workers will be told they dont have the right skills and so must retrain…and so on ad infinitum.