National Infrastructure — House of Lords, 2015-01-22
Topic: Macroeconomics
Richard Cavendish (Conservative, Centre-right): My Lords, I am pleased to join other noble Lords in thanking the noble Lord, Lord Adonis, for introducing this important debate. His considerable experience, knowledge and enduring interest in Britain's economic performance were all evident in his eloquent opening remarks. In contributing today I declare my interests, which are quite numerous and varied, so I refer noble Lords to the register I wish to make two points. Given that the funding for 64% of our infrastructure projects is met by the private sector, it is worth asking why our national performance has slipped relative to other developed countries. Part of the answer must lie with the fact that our planning system moves at a glacial pace and needs urgently to be more responsive. More importantly—and I am sorry to say it—there seems to be no doubt that confidence is still lacking among the business community. It is not as though the Government have done nothing; on the contrary, as noble Lords have heard, they have done a great deal and in difficult circumstances, and I congratulate them warmly. I have listened to the arguments put forward by the Government against the establishment of an independent infrastructure commission and so doggedly advocated by the noble Lord, Lord Adonis, over a long time. I do not feel qualified to challenge those arguments. The rather convincing worry is that 89% of business wants such a body so that well developed infrastructure strategies are less exposed to political cycles, and, in a raft of other areas, business still has misgivings about the future One problem is that neither this Government nor any other understand business properly. It is not that we lack clever and committed politicians and officials—there is no shortage of those—but, crucially, not a single Minister, civil servant or public sector officer woke up this morning or any other morning to the reality of risk-taking and being held accountable, and the subtle workings of capital are not understood at all. It is an interesting reflection that barely a handful of noble Lords participating this morning have current experience of constructing a capital budget, or worrying about how they will pay the wages tomorrow morning or how they will cope with the daily tsunami of regulations. Business wants to see the politics of infrastructure change fundamentally in order to improve the perception of the UK as a place to do business. It would help if the noble Lord, Lord Adonis, would perhaps persuade his colleagues to talk less about such things as nationalising the railways I will finish by speaking about my own area of south Cumbria. I am more optimistic than the noble Lord, Lord Liddle. As he would agree, in common with many other rural areas we have had a varied economic history, but today in the Furness peninsula we are preparing ourselves for the biggest investment in our history. It is estimated that over the next decade some £40 billion will be spent in industries that include civil nuclear, biopharmaceuticals and nuclear submarine building, To put that in perspective, in money terms it is equivalent to one and a half times the Olympics. While it is hard to exaggerate this good fortune, the infrastructure implications are huge. Quite simply, we lack that infrastructure by magnitudes, as the noble Lord, Lord Liddle, said. My major concern is to see that small and medium-sized businesses benefit from this investment and have access to the supply chain. I am out of time, but I simply ask my noble friend to visit and see for himself the scale of the opportunities and the challenges that face us.