HC Deb 23 January 2003 vol 398 cc433-4
14. Vera Baird (Redcar)

What plans he has to further increase Government resources going into the north-eastern region. [92746]

The Chief Secretary to the Treasury (Mr. Paul Boateng)

Details of regional distributions of historic Government spending are published annually in the public expenditure statistical analyses. The Government's spending plans for 2003–04 to 2005–06 were set out in the White Paper published last July following the 2002 spending review. This will result in an increase in Government resources going to the north-east region.

Vera Baird

I am grateful to my right hon. Friend for that answer, but he will appreciate that, despite the considerable efforts that the Government have made and continue to make, the north-east remains firmly at the bottom of almost every national economic league. Is not it time to kick start our region's economy by relocating at least one Government agency or Department away from overheated London and up to our lovely region? That would be very welcome in Redcar.

Mr. Boateng

My hon. and learned Friend makes a good point, and I am sure that those with direct responsibility for the location of Government offices will hear what she says on behalf of her constituents. She will welcome the fact that we are taking action to reduce imbalances between and within regions, especially in respect of her region. We have given the regional development agencies increased funding and flexibility. There has been an indicative allocation rise for her own RDA, from £227 million in this year, to £240 million in 2005–06. That will help to address the problem that she has rightly pointed out.

Miss Anne McIntosh (Vale of York)

The Chief Secretary will be aware that Teesside airport in the north-east region does not enjoy a direct rail link. Would the Government prefer the limited amounts of public funds available to be put into establishing a rail link to an existing airport, such as Teesside, or would they prefer a completely new airport to be constructed at Finningley?

Mr. Boateng

The hon. Lady makes an important and serious point, which will no doubt be considered by the responsible Department. I have no doubt that the Department of Transport will take into account what she says.

What is interesting, however, is that this is a call for yet more public spending from a party that purports to be committed to reducing public expenditure. It cannot have it both ways. Simply to say that it is a saving is to fall into the same trap as the hon. Member for Arundel and South Downs (Mr. Flight) fell into. He landed his party with a commitment to cut 20 per cent of—

Mr. Speaker

Order. Mr. Cousins.

Mr. Cousins

For over 100 years Scotland and Wales have had special arrangements reflecting their special needs—and quite right too—and the ability to make local national priorities within those allocations of things that the people of those areas thought it was right to focus upon. When can the north-east region expect to have the same arrangements?

Mr. Boateng

My hon. Friend makes a serious point that reflects his own passion for regional government. He will have welcomed the announcements made by my right hon. Friend the Deputy Prime Minister in that regard.