HC Deb 04 July 2002 vol 388 cc473-5W
Mr. Jim Cunningham

To ask the Secretary of State for Trade and Industry what action the Government have taken to attract businesses to Coventry since 1997. [661601

Ms Hewitt

Over the last five years more than 270 companies have invested in Coventry for the first time, creating over 11,400 jobs. Coventry is home to more than 130 overseas-owned companies which have taken advantage of the many opportunities offered by the City.

Growth in value-added R&D activity has seen major investment and modernisation from companies such as Yachiyo, Denso, Edscha, Eu-Matic, Mission Foods, Peugeot, Jaguar and others which have all benefited from the wide employment opportunities in the area, and received support from local, regional and national Government schemes. Eu-Matic's investment was the first inward investment announced under the new Labour Government in 1997 and their 132,000 sq ft, purpose-built factory on seven acres at Coventry Business Park was completed in January 1999. This £17 million investment was supported by a Regional Selective Assistance grant of £2.5 million.

Other investments have seen a new HQ for AAH Pharmaceuticals, new investment from a Mexican company, Mission Foods, EPMB, and a major expansion at Peugeot. Jaguar and Denso are among many other examples.

Much of the city is eligible for Objective 2 funding. Other European funding via "Rechar" programmes have benefited Kersley Colliery and the "Retex" (textile industry) programme has added to major reinvestment by the public sector in regenerating large parts of the area.

Brownfield site regeneration has been an area of major success in the city with former major employment sites now housing new inward investors and investment from the city's university at the Technopark and the Coventry business park. Growth in the city's and sub-region's ICT sector has seen over 40,000 people now employed in 1,300 companies in this sector, helping diversify the area away from traditional manufacturing.

The creation of a science park, and a Technocentre housing centres for incubator units, innovation, and many small start-up companies, have all been supported by public sector partnerships working with others. Other examples of such developments include Binley development. Nearly 50 acres have been developed for commercial use in the city, including the private sector-led Prologis park.

DTI's Small Business Service has ensured that in the last year nearly 2,000 local businesses have received advice and support. Also, almost 2,000 people have benefited from training to raise the local skills threshold. Additionally, some £1.5 million worth of funding from the Skills Development Fund has been allocated to Coventry for projects such as a purpose-built centre for the delivery of engineering training.

Advantage West Midlands, the west midlands regional development agency, is supporting Coventry and its sub-region's desire to promote the area as a High Technology Corridor. Substantial investment from the Rover task force resource will be used for HTC projects e.g. through the establishment of an ICT Skills Taskforce and an associated skills training scheme.

Part of the city falls within Advantage West Midlands' Coventry-Nuneaton Regeneration Zone, which aims to connect areas of need to opportunities, working with many local partners in the community, voluntary and education sectors. This will receive considerable funding from Government.

Community investment has been supported by approximately £12 million via the Government's Neighbourhood Renewal Programme, including developments at Hillfields and Wood End, and some £55 million under the New Deal for Communities. £37 million has been provided via the Single Regeneration Budget Programme in the same period.

Coventry has benefited from substantial other funding from a number of Government schemes, including Sure Start and the Children's Fund, along with over £50 million from the national lottery.

Employment is at its highest since the mid 1980s, with 142,000 employed in the city compared with 118,000 in 1992. While there have been some shifts in employment between sectors (telecoms and aerospace have suffered recent downturns), the changing nature of Coventry's economy has meant that unemployment has remained at 3.7 per cent. for several years, only slightly above the regional average of 3.5 per cent. The strong sub-regional partnership between agencies operating across the area, such as Jobcentre Plus, the Chamber, LSC, city council, Advantage West Midlands and Regional Supply Office, has ensured that when downsizing situations arise, the partnership is able to deploy the necessary tools to assist companies in a number of practical ways. This has been reinforced with Government funding via the Rapid Response Fund and other training and development initiatives.

More than 20,000 students are expected to graduate from the two universities this year assisting business and individuals gain qualifications and training across many sectors.

Through these significant interventions the Government have worked hard to achieve some important improvements in the regional economy, and to support the strong lead which local partners have shown to promote the industrial growth and diversification of Coventry and its sub-region since 1997.