Monday 8 July 2013

Sunshine & Spending

THE sun has been shining on Cleethorpes in more ways than one; last Saturday we celebrated Armed Forces Day by cutting the ribbon on the magnificent new memorial. Thousands lined the streets in tribute to our Forces and at the same time gave a boost to the local economy. To have the Royal Marines Band, added greatly to the occasion. I particularly enjoyed the sunset ceremony, which is always moving and has enormous dignity.
The day emphasised that despite the difficulties caused by the Hatfield landslip blocking the rail line between Scunthorpe and Doncaster, Cleethorpes is very much open for business and later in the week we heard the good news that the line would be open for business again from the start of this week. Great news; since it means normal business by the time of the school holidays.
The main events at Westminster since my last column have been the Spending Review and the Government's plans for major investment in our infrastructure. Though more is needed we should not forget that we've already benefited from the Humber Bridge tolls reduction, upgrading the A160 access into Immingham Docks, enterprise zones and successful bids into the Regional Growth Fund.
None of us like austerity but the overwhelming majority acknowledge the reality that no individual, business or country can go on living beyond its means year after year.
The scale of our problem can be seen just by looking at the level of government spending. When the Labour Party came to power in 1997, total spending was well below £500 billion a year and it increased modestly for three years. That's because, as you may remember, Tony Blair and Gordon Brown made much of the fact that they would stick to the spending plans adopted by the outgoing Tory government.
Then Gordon Brown took the brakes off and spending began to rise. If the economy continues to grow all's well but economies don't always grow; there are economic cycles and despite Mr Brown's misguided belief that he had conquered boom and bust I suspect that deep down very few really believed him. Of course, we wanted to, but by the time the downturn came spending had hit £700 billion and still rising.
One of the other significant debates from last week focused on High Speed 2 – the proposed new rail line from London to the Midlands and North.
Opposition comes in two forms: those living along the route fear loss of value to their property and those who oppose the cost. Then there are those who say why spend all this money to knock half an hour off an already pretty quick journey time. Though speed is a factor the proposal that this Government inherited from the previous Labour administration is about capacity; our rail network is full and demand goes on rising.
At the time the railways were privatised in the mid-90s there were 750 million passenger journeys per year; now there are 1.5 billion and freight is also on the up.
So why should I, as an MP in this area, support it?
Unless the new line is built, the chances of northern Lincolnshire and other areas off the main lines getting improved services is very limited.
Also remember that, measured by tonnage, 25 per cent of all the freight moved in the UK starts or ends in Immingham. So many jobs here depend on it.
Then, of course, there is the potential for Tata Steel in Scunthorpe. Already the production of rail is a major part of its operations. I'm constantly pressing ministers to ensure that everything possible is done to make sure that British-based businesses get the benefit of the enormous orders that will come forward as a result of the project.
The other big news is that on Friday, despite opposition from Labour and the Lib-Dems, the Bill to enshrine in law that there must be an In-Out Euro referendum before the 2017 deadline passed its first hurdle. Great news; whichever side of the argument you are on, it's only right that the people should determine whether or not we have ever closer union and for the avoidance of doubt I will vote the same way as in 1975 – NO – the sooner we leave the better.



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