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The Rt. Hon. Patricia HewittYorkshire Forward Business Lunch |
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CHECK AGAINST DELIVERY I am delighted to be here. And also to see a number of faces from last night's "Made in Sheffield" dinner including Graham (Hall). It was a most enjoyable evening and I was particularly impressed with the nominations and winner of the award. I have spent today in Yorkshire and the Humber – coming from Sheffield, via Rotherham and Bradford to Leeds. I'm going to Howden this afternoon and will end up in York this evening. An achievement I think to be able to say that I have visited the whole of the region in one day. Throughout my visit I have been impressed by the drive and innovation of everyone I have met. Demonstrating pride in their region and in their achievements. And there was much to be proud of. Speedframe in Rotherham where I opened their new factory – a £10.5 million investment creating 250 new jobs, supported I am pleased to say by a RSA grant by my Department . Bradford-based Morrisons with an investment of £50 million in its home city over the last 5 years and 260 new jobs at its Thornbury store. PA later today where its operation has grown from around 100 to over 400 staff. Here in Leeds, where the Chamber recently reported that jobs in financial and business services have topped 100,000. Confirming the city's position as a major financial centre. It seems to me that the aim in the regional economic strategy of creating 150,000 new jobs by 2010 is well within the region's capability. Graham, perhaps we should talk later about a more ambitious target. It has been a hectic schedule. But it was enjoyable. It was also interesting to see the diversity of businesses – in manufacturing, in retail and in services. And in different environments – rural and urban. But with one thing in common – all wanting to succeed. The challenge for Government is to help businesses succeed – to become more productive and competitive. That is the aim of my department, shared with the Treasury. It is why I announced changes to my department last week. To help to ensure that we are more business-like, that we have a clear focus on three strategic priorities – innovation, enterprise and competitive frameworks. Over the next few months we will be reorganising the department and bringing in business expertise to improve the way in which we serve business. I have some sympathy for people who look blankly when we talk about internal changes. But I am determined that business will see a difference. In how we work with them. In how we respond to their needs. In how we represent them in Government. The changes will help the DTI become more customer-focused – better able to identify where we can really make a difference and where we are better able to deliver. There will be a new approach to business support – cutting out ineffective schemes, simplifying delivery and making sure schemes have maximum impact. We will run our business support schemes under 5 clear portfolios, making it easier for businesses to understand what we are about and to identify and access the support they need. We will place a much greater emphasis on delivery through a strengthened Small Business Service. And we will make it clear who does what in the regions. It is confusing at present. We are therefore clarifying the roles of the different agencies involved in delivering the DTI's agenda. Primary access to business support will continue to be through Business Links. It is important that RDAs work closely with their regional Small Business Service teams to ensure consistency and coherence. There will continue to be a strong DTI presence in Government Offices but their role will change. There will be a much greater emphasis on influencing the whole range of government activity in the regions which affects business. As central government's "eyes and ears" in the regions, they will report to me on the performance of the regional players, including the RDAs, in delivering our agenda. And they will play a stronger role in helping to shape policy and strategy in partnership with colleagues in Whitehall. Bringing the regional dimension into policy-making at the centre. On the delivery of business support, I have decided to clarify responsibilities by transferring for the handling of all but the largest cases in the national RSA Scheme from the Government Offices to the RDAs. This will help RDAs in putting together packages of assistance for new investment and help to simplify the system for business. There is much that we can and should do at national level. Developing a framework for innovation, enterprise and competition. Running programmes and services which are best organised at national level. Putting in place a taxation system which promotes business growth and investment. Opening doors to overseas investors, and assuring them of national attention when it counts. Within this national framework, we also need strong regional and local initiatives. The regional dimension is crucial for DTI. And the RDAs are a key part of this, as our strategic partners – giving regional life to national policies and meeting regional priorities. RDAs have been running for just over 2½ years. But in that time each has begun to make positive differences to its region. Including Yorkshire Forward. Inevitably, much of your early work has been focussed on preparing strategies, writing action plans, building the right teams, building links with partners. You have also been talking to government about your resources, your targets, and other issues. But we can now see you moving further into delivery of your strategies and plans. And I expect your dialogue with DTI and other Departments will increasingly be about all the things you are doing to implement these plans and above all to provide strategic leadership in your regions. Your hard work in developing a strong economic strategy which encompasses all the businesses and all the people of the region – to raise the prosperity of all – is already paying off. In attracting major inward investors. The Japanese company, Daiwa Kasei, in Leeds. American companies, Boeing and Insight, in Sheffield. Baxters Foods in Grimsby. These successes demonstrate the strength of our partnership approach. In ensuring that people have the right skills. The electronics skills centre of excellence in Bradford. Print Media Online at Leeds College of Technology – enabling trainees across the region to access a centre that is recognised as one of the best in the country. In the development of the region's clusters – the Metals Centre of Excellence in Rotherham. The Bioincubator in York. And the extension of the Europarc in Grimsby focusing on foods and chemicals. All these examples demonstrate that RDAs can deliver. And that is why we have continued to give greater flexibility and increased funding since 1999 We are also giving much greater freedom in spending the money from central Government. From 2002-03 the single pot will contain money from DTI, DfES and DTLR giving more flexibility: RDAs will be able to decide on their own spending priorities – based on analysis of their regions – on what works locally – on what needs to be strengthened – on what needs to be stimulated. Working in partnership with local businesses, universities, local authorities and others. In return, we will expect RDAs to meet challenging objectives and targets, and to agree ambitious corporate plans. But important though your budgets are, we all know that the real work of RDAs' contributions will be in how effectively they are spent; and more generally in how well the Agencies influence the climate for business and enterprise in their Regions. Working in partnership with businesses, universities, local authorities and others. This is your key strategic leadership role. You have already shown that you can deliver for the region and I am sure that you will achieve much more for Yorkshire and the Humber. Putting into action the Business Birthrate strategy. Meeting the aims of the CONNECT programme to achieve £50 million of investment. And, if progress continues, launching the Regional Venture Capital Fund early next year. You have a big agenda of implementation, as well as your leadership of the regional economic strategy. I look forward to working in partnership with you to raise the productivity and competitiveness of the region. |
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Other speeches by The Rt. Hon. Patricia Hewitt
(the following are available from the archive) |
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