HC Deb 16 October 2003 vol 411 cc249-50
6. Vera Bair (Redcar)

What plans he has to direct public investment to the Tees valley sub-region. [132059]

The Economic Secretary to the Treasury (John Healey)

The Tees valley sub-region, like all parts of the UK, is benefiting from the increased public investment that the Government are putting in. In addition to national investment, the regional development agency, One NorthEast, is investing £15 million this year and £24 million next year directly in the Tees valley.

Vera Baird

I am grateful for that answer, although my question was clearly not as transparent as it should have been. I wanted to hear a comment about the Lyons inquiry, which favours the dispersal of civil service jobs to the regions on the presumed business case that that would be less expensive than if the jobs were in London. The Chancellor has spoken about dispersing 20,000 jobs in that way, but if the business case shows that more can go, can that number be merely a minimum so that more can follow, and can the Tees valley, with its adaptable work force and the lowest commercial property prices in the UK, go on the list of potential recipients?

John Healey

I pay tribute to how consistently my hon. and learned Friend has pursued that case. I spoke at her regional chamber of commerce in the Tees valley last month and there is great interest in, and commitment to, the Tees valley partnership bid for the relocation of civil service jobs. I confirm that Sir Michael Lyons made it clear that it was not his intention to dictate the public sector functions that should be relocated or where there should be relocation to. I confirm that relocations should be based on business proposals that Departments are preparing as part of the spending review process. I also confirm what my right hon. Friend the Chancellor has made clear: we are looking at the relocation of at least 20,000 London-based civil service jobs to the regions.

Chris Grayling (Epsom and Ewell) rose

Mr. Speaker

Order. The hon. Gentleman's constituency is quite a distance from the Tees valley.

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