Tory plans to scrap RDAs won't help the region's economy.
This week David Cameron laid into Regional Development Agencies. The Tories, it now seems, would strip RDAs of their transport and planning powers and might even scrap some of them completely, aiming to unravel Labour's regional agenda "piece by piece'.
Cameron went on to say that "the whole experiment with regional assemblies has been a complete mistake. The halfway house we've now got, where RDAs are being given planning powers, is a disaster too... there's a very strong case, at least in parts of the country, that RDAs should go altogether".
Hang on a minute. Scrapping RDAs could well lead to a recentralisation of policy making and delivery in London. Do the Tories really think that this will help the West Midlands economy?
Rather, this proposal seems to miss the point; a lot of good has actually been done by developing policies at the regional and local level rather than in Whitehall, and in providing strategic oversight regionally.
Take the decline and ultimate collapse of MG Rover. Whilst the MG Rover collapse was a very substantial shock to the West Midlands economy, the impact would have been much greater if the firm had collapsed in 2000.
In the five years up to the collapse of Rover, RDA Advantage West Midlands worked with suppliers to diversify firms away from Rover, helping them to supply other car firms and to move into new growth sectors such as medical technologies.
Around 10 - 12,000 jobs and critical engineering skills were saved in the process before Rover went bust. This was a very real success for local policy makers. The response after the collapse was also a major effort that minimised job losses.
That doesn't mean that some things couldn't be done better, and some of our current work at the University of Birmingham is looking at key policy lessons from the work of the Rover Task Force, and how ex-MG Rover workers are now getting on (for more details click here).
Of course, there is clearly a role for the national coordination of regional strategies. For example, 'clusters' or sectors like the car industry often extend well beyond a single region like the West Midlands. An isolated regional initiative may not be enough: linked initiatives across regions, perhaps co-ordinated nationally, are required to assist some clusters.
But this means joining up regional initiatives at the national level, and not scrapping them completely. It also points to the need for an industrial policy, something on which the Tories haven't been too strong in the past despite Michael Heseltine's famous declaration in the early nineties that he would intervene 'before breakfast, dinner and tea".
Rather than a neo-liberal, non-interventionist approach, government needs to do all it can to help regional economies adjust and develop.
Coming back to the West Midlands case, this needs to involve retaining manufacturing capacity (yes, manufacturing really does matter) whilst also helping to retain the key competencies and to apply them in new ways.
Using the car industry example, these will have to be in higher value added activities such as engines and drivetrains, R&D, consultancy and in other sectors such as the growing aeronautics industry.
But transferring skills and knowledge into new growth industries (whether aerospace, nanotechnology or medical technologies...) isn't always easy; policy can go a long way to help this process along. Indeed, Industrial policy is back on the agenda. Perhaps the Tories ought to wake up to this.
Cameron has spoken of the need to decentralise more and has criticised the "London centric" nature of the Labour government. Yet scrapping RDAs will do nothing to help on either front.
Rethinking what RDAs do and making them more accountable is one thing; scrapping them altogether misses the point of having strategic oversight located in the best place to deliver policy effectively.
Something doesn't quite add up here in the Tory proposals. Please think again, Mr Cameron.
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Why does it mean centralisation? There's no reason why removing an expensive, unaccountable, undemocratic regional quango couldn't lead to more localisation.
Yes, there is a need for local authorities and businesses to work together outside of their own local area but agencies such as RDAs who have statutory powers and multi-million pound budgets are not needed for this. There is no reason why local authorities can't work together on a voluntary, issue by issue basis without having to spend millions of pounds a year and take decision making powers away from elected representatives.
I definitely agree with West Midlands NO!'s views in relation to making RDAs much more democratic and accountable. I also agree that we need to be clearer about what they actually do acually costs.
Would West Midlands No! be more prepared to accept the RDAs if they were more democractic, more accountable and more efficiently funded and less bureaucratic, or is s/he against any RDAs anywhere in and of themselves? I won't make prejudiced judgements based on someone's name, online or real!
I am also inclined to agree with West Midlands No! that where democratically elected local authorities have the expertise, these development decisions are best left with them at county, town or city level. It means that the decisions taken have democratic legitimacy, and on a subsidiarity basis it is also at a legitimate local level. Decisions taken about, and money invested in, strategic local economic development decisions should be up for local debate and be made by people who can be thrown out by the electorate or re-elected on the back of a good record, where necessary.
Those of you who have read my comments on Professor Bailey's blog before will know what's coming!
Birmingham should have much more economic self-determination along with other authorities in the West Midlands. I don't see why economic development in Wolverhampton, or Sandwell or Birmingham should not be devolved to the local authority level as much as possible. It's possible that we will get much more sound decisions that affect local people directly.
Let them issue Bonds! Let them set up local development banks. Let the Local Economic Development Council (Leddy!) take shares in local industry in return for confident and long-term investment in local business. Let the Leddy play a part in assisting, even creating, sound local circuits of capital that benefit micro-economies which then make up a myriadic patchwork. (Getting a bit carried away here, I know.)
I think, though, West Midlands No!, that there will definitely and by the same reasoning need to be a regionally based local economic development authority (the Reddy!) but I think you may be right - strip it down to the overarching strategic function, decentralise it and give it an elected, democratically-accountable basis which it simply is not perceived to have now.
As for the Tory plans - well they haven't got a clue. Where David is right is that they simply see and define a regionalist agenda they don't like, and then throw the baby out with the bathwater.
Worse than that: the reason they don't have credibility in this area is that I believe that their party, should they come to power, would simply return the whole system to the London-centric, London-based, London owned finance markets which simply do not have in their very DNA anything that recognises regional or local economic development.
If the Tories have their way Birmingham will be going cap-in-hand to London High Financiers for any slim hope of regional or local investment in business and industry.
Reform the RDAs radically, I say, and decentralise appropriate functions to local authorities as much as possible.
If the Tories really had a clue about local business, about their employers and their employees, they'd have a constructive policy on the issue, instead of, effectively, none at all!
For me, I see regionalisation as an attempt at not only denying the same national representation to England that the rest of the UK has but as a deliberate effort at undermining the unity and very existence of England as a nation.
I see it as an attempt at bypassing the democratic process by taking decision making out of the hands of democratically elected bodies and giving it to unelected quangos.
Recently I've come to see it as a vehicle for the success of Common Purpose, a bad thing for anyone interested in representative democracy.
I see regionalisation as the main weapon the EU has at its disposal to abolish nationhood within the EU. Replacing national identity with regional identity is essential for the EU if it is to fulfill its objective, as set out in the Schuman Declaration all those years ago, of creating a European Federation.
I wouldn't want Regional Development Agencies, even if they were democratically accountable because that's not my only gripe with them. I don't think any of my fellow campaigners or our supporters would be happy if AWM stayed to be honest. There is no real support for regional bodies outside of academia and business because they have a vested interest. What really matters is what the electorate wants and what they don't want it regionalisation.
We have had a perfectly serviceable form of local government in England for centuries. Whilst I wouldn't suggest that just because we've don't something a certain way for centuries we shouldn't change it, there is no real need to move away from the traditional local government system we've have had for centuries. Not, that is, unless you support the eurofederalist agenda or you need to divide and rule England to have a chance of controlling a federal British government (ie. Labour).
For the record, I don't vote Tory but they are the party that has England's best interests at heart because that's where their support is - they have a vested interest in the future of England if you like.
In summary - yes, I agree with most of what you say. I think that local authorities should be self sufficient and I think that those who seek to govern us should have a mandate to do so via the ballot box. Where we disagree, I guess, is that I would abolish regional quangos rather than legitimise them - for me, the price of their continued existence is too high.
"I don't vote Tory but they are the party that has England's best interests at heart". Which England? Newcastle? Birmingham? Manchester? Bristol? Tower Hamlets?
I don't think any of these places were particularly well looked-after by the Tories when they were last in office. Birmingham still languishes with a high umemployment rate that is largely the legacy of Thatcherite policies.
Perhaps the comment above might be more applicable to Chipping Camden (shades of John Major's beloved village cricket green and spinsters on bicycles); or Kensington and Chelsea (moany old Sloane rangers and other assorted yuppies).
This only points to the deeply ingrained regional disparities that "West Midlands NO!" seems keen to ignore (intentional or not) and have been woefully addressed by past national governments; and conveys a rather narrow view of "England's best interests".
Of course there are regional disparities. There are disparities from one end of town to the other. Hell, there are disparities on my street. There are disparities between north, midlands and south and between east, central and west. Should we have a north of England regional assembly to cover the north east and north west euroregions? How about a regional assembly for numbers 1-80 of the street I live in and then another one for the rest of the road?
Just because there are disparities between tow arbitrary areas of the country, doesn't mean that you need to put in a regional government. England is not and since unification centuries ago, never has been, divided into regions. Not until the EU ordered the regionalisation of England. England is a single nation, not a collection of regions.
Incidentally, there are major disparities between north and south Wales and between highland and lowland Scotland. Do you advocate the balkanisation of those countries as well or is it only England that needs to be broken up into artificial regions?
I am not sure where David Cameron has been recently but scrapping RDAs would take Britain back to when there was London and the rest. It is true what West MIdlands NO! says, regionalism and regional policy has been encouraged by the EU, but I am grateful they have done so. Regional disparities cannot just be 'a fact of life' because this is socio-economically unsustainable. All regions deserve the chance to decide their own paths to economic development. And if this is too academic, I would just like to recall the role that EU funds have played in supporting and financing the regeneration, for instance, of Birmingham and the West Midlands.
RDAs and with them regional policy in Britain have enabled regional stakeholders to come together and identify priorities and actions for regions'short term and long term change; as well as to channel national and EU funds towards such priorities.
MG Rover wouldn't have collapsed had it not been for the madness of Labour's centralised economic strategy which concentrated soley on the London institutions for purely political credibility amongst the bankers and financial institutions, so as not to lay the charge of being old Labour. The effect was to attract inward capital into the Stock Market and the financial services industry, pushing up the price of Serling to an over-valued level, making imports cheaper and harder for our manufacturers to export. You ask this Government for a copy of it's policy to help manufacturing and engineering and you'll be met with blank faces and empty paper - there isn't one. North of the Watford Gap, they couldn't give a toss about the economy so long as London's fine.
All these RDA's are merely lip service to gloss over the true calamity of Labour's economic nightmare which we are all now paying for. Gordon Brown a good Chancellor? No way, not in my books. But then again, I don't live in London. MG Rover and Longbridge will always have support from towns like mine in Burnley because we recognise things like build quality, engineering excellence and the dedication of the people who build them.
David Cameron is right in my book. On balance you could argue that the WM RDA did a good job after the collapse of MGR but you have to ask whether MGR would have collapsed in the first place, had we had a balanced economic strategy, and I doubt it very much.
I can only assume that people opposing RDAs have no experience of local or national government. There could be a debate about what powers RDAs have but they are undoubtedly useful in ensuring the buoyancy of a region.
In planning for instance, it helps to combat NIMBYism that can inadvertently hold a region back for years. Localisation isn't always good too, as council officers can get pretty creative when, say, offloading homeless families onto neighbouring boroughs. The alternative are pretty much Whitehall (who may discard a region's benefit for wider strategic objectives) or something that looks like an RDA. I also think people get hung up on the 'undemocratic' nature of them, since all this really does is provide a sack-able figurehead for an entire incompetent department. Having a Parliamentary Select Committee to keep an eye on RDAs could be more effective as a form of accountability.