Member Article

Impatience is a virtue we can harness

I have previously raised the concern that we should progress the recommendations in the Adonis Report (North East Economic Review) and the matters connected with the proposed Combined Authority.

I should explain why I feel that we should make early progress.

The changes in the generation of economic activity and the creation of jobs in the North East have been focused on government policy and austerity arising from the decline in the economy.

Despite the good progress made through the North East being the only region in the UK to add to GDP (mainly through manufacturing) and the rate in the growth of jobs, we’re still in need of a highly focussed competitive approach if we’re to make further and faster progress.

In relation to the region’s land, property and construction sectors, the key issues are infrastructure, finance and economic development.

The result of the structural changes to which I have referred is a fragmented approach, too weak to have a great deal of impact against the strong competition from other regions in the UK and Europe.

The councils in the North East LEP region have invested in their Economic Development departments. Some good work is being done to attract inward investors, particularly in the low carbon energy and maritime and marine sectors.

Even better work can be done with collaboration through the Combined Authority. That work can be significantly better in partnership with the private sector. There is an impatience within the private sector that progress in both marketing the region and looking after the growth of indigenous SME’s, needs to be harnessed.

I appreciate that local councils have a challenge to establish the governance of the proposed Combined Authority, but we simply cannot wait that long.

If, as I do, you consider that the economy works in cycles then there will be improvement. Forecasts are for long slow, almost organic growth. One benefit will be stability in the markets in which we operate.

I’ve noticed in the past few economic recessions this region suffers a lag of about 18 months between seeing an upturn in economic activity and demand coming through the property sector into construction. It may be different on this occasion if we can build quickly on the global demand for low carbon economy and our skills in the maritime and marine sectors.

I suggested in my earlier column that we have a shadow board for the Combined Authority but on further thought I believe it would be better to have a public-private partnership to quickly establish an economic development marketing body for the North East LEP region.

It can deal with a lot of preparation that will help the Combined Authority hit the ground running. The question is do we have the leadership to drive this forward?

This was posted in Bdaily's Members' News section by Kevan Carrick .