POWERHOUSE NEEDS LOCAL LEADERSHIP

 

George Osborne was in New York this week apparently. However, his ghost haunted the UK Northern Powerhouse (NP) conference with some suggesting that without him as Chancellor the NP project was doomed.

Well the formidable Lord Kerslake had the answer to that as he challenged business and local politicians to step forward to head up the project. The problem is that there is nothing tangible to head up. Transport for The North is the only statutory body covering the North of England. Progress on skills, growth, culture and productivity all depend on business and councils getting together on an ad hoc basis. We need a Council of the North to decide priorities and focus media attention. The NP also needs to get some achievements under its belt. Richard Leese, the leader of Manchester Council, rejected a suggestion of a big public relations drive to get people talking about the NP. By your deeds will ye know them, is a good maxim.

That said the conference has become the annual event where you have a real sense of the northern family getting together with business getting done in the exhibition hall. Although women were scarce on the speaker panels, two stood out. Judith Blake, the leader of Leeds, insisted that if we are to improve the skills base improvement needs to start in the primary school. The government have only given devolved powers after 16 so far. She also said that NP sometimes had too great an emphasis on transport. Housing and health mattered too.

Fiesty Kate Willard from Stobart also had skills in her sights, calling for the abolition of the Skills Funding Agency. She should be the next chair of the Liverpool Local Enterprise Partnership.

The conference saw the last appearance of Sir Howard Bernstein as Chief Executive of Manchester Council although when I used the word “farewell” to him, he assured me he would still be around. Watch this space. His political colleague all these years Sir Richard Leese was encouraged by the publication of the Northern Economic Review as a sign of NP progress but claimed work on the northern hub and trans Pennine rail links “were stuck”.

There were expressions of frustration throughout the two days at the long timescales for infrastructure projects. It is likely to be 2025 before new trans Pennine links will be fully operational. In the meantime however we won’t have to put up with the pacers, Arriva had good news on new rolling stock.

A number of people I spoke to expressed anxiety that NP was still too Manchester focused. Furness Enterprises told me that Barrow’s submarine contracts would be adding more GVA to the north’s economy than some cities. One Leeds businessman has begun a campaign to take a whole new look at the trans Pennine bottleneck. Lance Christie wants the M65 extended from Colne to East Leeds improving links to Leeds Bradford airport and opening a new gateway to the North West from the North East.

The effects of Brexit on the NP was on everyone’s minds with Ged Fitzgerald, the Chief Executive of Liverpool reflecting the current uncertainty. He said the vote was already having an adverse impact on the city’s universities. On the other hand, the port was now facing the right way for global trade as it had in the days of empire before the EU interlude.

Andrew Percy, the new NP Minister, convinced the conference that Theresa May was behind the Northern Powerhouse and claimed the concept was being recognised from Canada to China.

Spades in the ground might to be some way off, but as delegates left at least they could see the Ordsall Curve bridge which had been put in place while the conference was on to link Victoria and Piccadilly stations.

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A TERRIBLE YEAR FOR THE CENTRE LEFT

 

THE CENTRE FALLS APART.

Let us hope 2016 represents the darkest hour for the centre left in Britain, Europe and the world. It is not just the defeats suffered by people like Hillary Clinton and Italian Prime Minister Matteo Renzi and the victories of Donald Trump and re-election of Jeremy Corbyn. It is the inability of the centre left to have any convincing answers to the problems of globalisation, terrorism and immigration. Because of this, Leave won in Britain, Putin was strengthened in Russia and President Obama became impotent in the Middle East.

2016 has seen a weakening of belief in organisations that have become part of the post 1945 architecture particularly the European Union, NATO and free trade. Comparisons have been made with the 1930s. They are exaggerated because we do not, yet, have large overtly fascist parties backed by tacit or overt military support that prevailed in that troubled decade. What we do have is a growing populist movement headed by politicians from right field offering to sweep away the old parties with their jaded remedies. The populist right offers simple solutions to complex issues to voters disillusioned by politicians who have failed to deliver for all. The other valid comparison with the thirties is even more worrying. These populist politicians have people to blame, usually immigrants. This has led to increases in racial abuse and worse.

The demand for instant solutions is made worse by social media with its opportunities for “echo chamber” fervour and vile abuse. There is a weakening support for democracy. The warning signs of how quickly things can disintegrate came with the razor wire fences erected in the Balkans against immigrants and refugees.

Our own EU Referendum showed how foolish David Cameron was to put a highly complex issue to a binary vote. His departure is one of the best things to happen this year. As the Brexit crisis drags on he will be increasingly be seen as one of the worst Prime Ministers in our history.

The centre left needs to assert the value of international and domestic cooperation, express enthusiasm for the European ideal, point out that we are in a global world whilst developing policies on immigration, a tough approach to tax havens and bank control.

SHADOW OVER THE NORTHERN POWERHOUSE.

The year has seen major figures at the heart of this important project leave, or prepare to leave, the stage. The Chancellor George Osborne paid the price for calling the EU Referendum, although he has formed the Northern Powerhouse Partnership think tank. That’s not to be confused with the Northern Powerhouse Partnership set up by Andrew Percy, the Minister in charge of devolution to the North.

There was a period of uncertainty about the government’s commitment to the Northern Powerhouse which saw the sad loss of Lord Jim O’Neill of Gatley who’d been a strong advocate of more power for the cities. We are also now in the final months of Sir Howard Bernstein as Chief Executive of Manchester Council who has helped shape the major devolution deal in his city and in wider areas.

With government uncertainty and local tensions a complex patchwork of devolution has developed during 2016 across the North. Greater Manchester has most powers with the Liverpool City Region resolving some of its internal difficulties to gain a reasonable devolution package for the incoming city region mayor.. Leeds has not resolved its issues with surrounding districts. HS2 was confirmed but despite the growing importance of the organisation Transport For the North, the Secretary of State, Chris Grayling, is saying he’s waiting to hear about the plans we have for improving East West connections over the Pennines. They’ve been around for years!

People need to see practical benefits from all this and want a say in what has been a behind closed doors exercise. The centrifugal forces of London are always there.

Despite everything I hope you have as merry a Christmas as possible.

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MAUFACTURING NOT THE ANSWER FOR THE NORTH ?

 

A BIT OF BOTH.

Debate has opened up on the future configuration of the Northern Powerhouse under Theresa May’s government. Should the project be less focused on our cities and cover a wider canvas? Will we play second fiddle to the Midlands Engine? What is the key to providing sustainable jobs in the middle of this century?

On the latter point, the Centre For Cities think tank have opened an interesting debate suggesting in the words of their Chief Executive “the calls of some politicians to recreate the North’s glory days by focusing on a resurgence in manufacturing will not be sufficient to transform the North’s economy.”

Does Alexandra Jones have a point? I felt a wave of pride this week when Sir David Attenborough was present at the keel laying ceremony for the first large ship to be built at Cammell Laird’s yard in Birkenhead for many years. It was a reminder of a past era when Birkenhead made ships, Manchester spun textiles and Sheffield forged steel and sold the products round the world. There is something special about making things. Flying sparks, liquid metal, the clatter of weaving machines will always beat the tap on the keyboard and the silent transfer of information from one computer screen to another. Much of this is sentimental tosh when considering what the North needs to do to make the Northern Powerhouse a reality.

Centre For Cities is right to focus our attention on what happened to London which used to be a major centre for manufacturing with its docks nearby. It transformed into a hi tech and service based economy with excellent communications and high skills. That is what we need to do, particularly the latter.

But there needs to be a balance. A major apprentice fair was held in Manchester this week where youngsters were being urged to get skilled up not just for hi tech and service industry jobs but ones involving construction and hydraulics. There will still be a place for manufacturing in the North if we can identify the opportunities in sectors like energy and aerospace.

HEATHROW: THE CHOICE OF THE NORTH.

A third runway at Heathrow has been under consideration since 1968. It is pathetic that the Prime Minister, who came in stressing the need for a new industrial strategy based on infrastructure spending, is delaying a final decision for another year.

It is pretty clear that Heathrow will get the nod over Gatwick. Why else would these elaborate plans be drawn up to allow Cabinet ministers like Boris Johnson to express their continued opposition and remain in the Cabinet?

The Davies Commission should have backed a regional expansion strategy, particularly with HS2 in mind, but with only Gatwick and Heathrow on the table, the North has to choose which to back.

Gatwick is simply on the wrong side of London for most of the country with Heathrow offering much better connection to the North.

But we need to get on with infrastructure spending on HS2, housing and Heathrow and if people find it too noisy and congested in West London then come North where the quality of life is infinitely better!

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‘ALEX FERGUSON’ SNAG FOR MANCHESTER COUNCIL

 

IN GIANT’S FOOTSTEPS.

How does Manchester Council avoid the “Alex Ferguson” problem in finding a successor to the retiring Chief Executive, Sir Howard Bernstein? You know the problem, Brown after Blair and Moyes after Ferguson.

Bernstein has worked for the local authority for 45 years and for the last 18 years has been Chief Executive. In that time the city has left behind the trauma of the IRA bomb in 1996 to become the leading city in the North. Throughout Sir Howard has sent a message to the private sector that the city is open for business. As a result Manchester has the feel of a young city for entrepreneurs that can look London in the eye.

His other achievement has been to respect the political process. Nobody elected him. The people’s mandate is held by Sir Richard Leese who has been leader throughout Sir Howard’s tenure, a remarkable partnership in its longevity and effectiveness. Such partnerships are rare and can go wrong. We remember the bust up in Liverpool between Chief Executive David Henshaw and leader Mike Storey. Bernstein and Leese have known where the boundary lies between local government officer and politician.

Bernstein is widely regarded as one of the leading figures in local government and the former Chancellor George Osborne recognised this in his efforts to found the Northern Powerhouse.

It has not all been plain sailing for Sir Howard. He failed to get the congestion charge and the BBC to locate their new headquarters in the city. Critics say he was more interested in shiny new buildings than the council’s basic services. He has been dismissive of charges that the devolution deal lacked democratic endorsement.

That said the town hall is losing a giant and the question is, who will succeed him?

POSSIBLE CANDIDATES.

The first thing to say is that there aren’t hordes of candidates out there qualified for this, one of the top posts in local government.

One immediately looks at the current Chief Executives in Greater Manchester who have helped in the creation of the Combined Authority. It would be great for a woman to get this job. Donna Hall, holds the top job at Wigan Council and recently won an award for transformational leadership. Theresa Grant used to work for Manchester Council, did a great job running the athlete’s village during the Commonwealth Games and is now Chief Executive at Trafford. Then there is Eamonn Boylan, who served for six years as Sir Howard’s deputy and is currently in charge at Stockport.

There is a strong possibility however that Manchester will want to cast its net wider and bring in a fresh face outside the current “Greater Manchester” family. Charlie Parker cut his teeth with the city’s Inner City Unit and is now Chief Executive of Westminster Council. Sean Harriss, formerly top man in Bolton, is now in charge at Lambeth.

At a recent Downtown event there was a suggestion that a “blue sky approach” might be taken bringing in someone with more of a business background. Would Charlie Cornish, Chief Executive of the Manchester Airport Group, fill the bill?

It will ultimately be a matter for Sir Richard Leese in what may be one of his last big decisions. Few would envy his “Alex Ferguson” dilemma.

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