Mandelson slams Tories' RDA plans
UNEMPLOYMENT would rise as a direct result of Tory plans to overhaul the regional development agencies, Lord Mandelson warned last night.
The Business Secretary said the Conservative pledge to introduce local enterprise partnerships, controlled by business and councils, would "lead directly to higher joblessness in the region".
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Lord Mandelson
Earlier this week, the Western Morning News reported how two shadow cabinet ministers had issued a memo to Tory MPs clarifying the parties' position after sustained criticism from industry figures.
Ken Clarke, the shadow business secretary, and local government spokesman Caroline Spelman, insisted they would not "scrap" RDAs – including the South West's – but overhaul them.
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Business leaders and councils would form local economic partnerships that would "reflect natural economic areas", raising the prospect of a new body for Devon and Cornwall instead of the wider South West region.
But Lord Mandelson said: "Breaking up the RDAs would mean less investment and higher unemployment in the regions. The Tories' policy would lead directly to higher joblessness in the regions."
He claimed he was "sorry" the Tories had this week reaffirmed their "senseless and unpopular policy".
Labour pointed to Transition Loan Funds, set up by RDAs at the height of the recession, which they claim gave £40 million to 352 firms, protecting 10,000 jobs. Business minister Pat McFadden said it was the "kind of initiative that it is hard to see happening" under the Tories.
The South West RDA was one of two regional bodies which did not take part in the scheme. However, its South West Loans Fund has made £2 million worth of loans to 25 organisations since it was established last April. It aims to make 330 loans over its lifetime, to create 630 jobs and safeguard a further 870.
Criticism of the Conservative stance has focused on lack of detail about how arrangements would work, but to some extent they have been hamstrung by leaving the final decision to be made locally.
However Lord Mandelson, who has emphasised the need for Whitehall control, said: "The Tories' proposal to substitute for the agencies a voluntary arrangement between different local authorities to promote local enterprise is sketchy, fragmented and in practice would be totally ineffectual. There is little chance of these spatchcocked voluntary arrangements coming together, and if they did they would be nothing more than glorified talking shops."
He accused the Conservatives of "dissembling" and "creating a different impression from the policy they would pursue if elected". The Tories were "frightened" of being "at odds with local business opinion", he added.
Yesterday, the Conservatives hit back at the Labour attack, insisting support for businesses and jobs would continue.
Ms Spelman said: "Under Conservative plans, Local Economic Partnerships would retain the function of helping and supporting businesses within the area, the restructuring would not hinder their ability to help local businesses.
"Labour either has a basic misunderstanding of the Conservative policy, or is engaged in wanton scaremongering; they should be clear as to which."
7 Comments
by Steve, PZ
Friday, March 12 2010, 10:00PM
“Pure speculation presented as fact.”
by Windy Miller, West Midlands
Friday, March 12 2010, 2:32PM
“Mandelson ignores the terrible economic damage his corrupt policies have incurred.”
by Tom, Local
Friday, March 12 2010, 2:08PM
“So, basically, RDAs do the job of loaning money to businesses. This is a job that should be done by banks. The Government is a substantial owner of shares in the banking sector. Why not just direct the banks to make the loans? Has there been any significant regulation of the City? Why is Downing Street (whether occupied by New Labour or Tory) so in love with the de-regulation that has brought us to the brink of financial and economic catastrophe?”
by I Williams, Redruth
Friday, March 12 2010, 1:16PM
“Some might say from this that the Tory Party has no more idea of what Cornwall's economy needs than New Labour. Again being lumped into another regional set-up with Devon will leave it in a second class position and still with no control over anything. The trouble is that many of the Labour or Tory party people that come up with these less than bright ideas are really just trying to get one up on the other. This is not in Cornwall's best interest only their own.”
by Albert, Truro
Friday, March 12 2010, 12:42PM
“The Tories' policy will only "lead directly to higher joblessness in the regions" because a bunch of ineffectual pen-pushers will be given their P45s. The last 13 years have shown very clearly that centralisation of Government functions simply does not work, especially in areas like ours where nobody votes Labour!
Businesses are generally far more successful when allowed to get on with it and invest in their futures rather than paying excessive levels of taxation to support an overstaffed, but still failing, public sector.”
by Big Ger, Truro
Friday, March 12 2010, 12:17PM
“Who cares what the unelected spin doctor Meddlesome, sorry Mandelson, thinks? We've had far too many years of his devious and underhand politics, he has always been the power behind the Labour throne. Once voted one of the least trusted people in Britain I believe.”
by Charles Henry 1945-(diuturnity), Somersetshire
Friday, March 12 2010, 11:23AM
“:| In my opinion, Lord (you couldn't make it up), Mandelson's criticisms are breathtakingly arrogant. . I think he is this countries most disgraced Minister, and certainly the most sacked. . I think he has the integrity of a rattle snake, and the smarm of a hawker tying to sell love potions in a leper colony. . I believe that the only people who ever employ like him in the real world, are corrupt governments or those already in their employ.”