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Heading South

By Adrian Pearson on Aug 22, 11 10:33 AM

PAUL Linford, responsible for The Journal's political insight via his weekly column, was away this weekend. Yours truly covered for him. Since most of you would have been busy looking through Homemaker I've reproduced Saturday's article here. Enjoy...


IAIN Malcolm is that curious thing in the North East - a man who is not completely crazy about football. So why then has the South Tyneside Council leader been seen on several
occasions at the Stadium of Light?

The answer neatly sums up the changing power dynamics of the North East and threatens to end Newcastle's dominance as the regional capital.

Mr Malcolm, you see, is attending those matches as a guest of Sunderland Council leader Paul Watson.

This week we saw the biggest signal yet that Tyneside can no longer guarantee it will get its way in major spending decisions.

City leaders gathered together with representatives from the business community to decide where in the North East the new enterprise zone would be located.

And instead of choosing a plan based around Newcastle and Gateshead, which independent consultants reckoned would have brought in some £900m in increased business rates to share out across the region, they backed the alternative 'Sunderland option' worth only £200m.

If an option on an enterprise zone had been put to the North East before last year's general election and the subsequent formation of the coalition Government which signaled the death of 'regionalism', then the choice would have been Hobson's.

Formerly the region would make decisions based on the greater good - or at least a high-ranking official at development agency One North East would order the decision - and council leaders would all accept it.

That regional unity has disappeared over the last 12 months. Instead we have a level of regional infighting, mainly among Labour leaders, in which Newcastle is increasingly looking like the losing side.

Messers Malcolm and Watson have, with the help of Durham County Council's Simon Henig, managed to convince business leaders in the region to back them over Tyneside on the important enterprise zone
question.

Mr Henig, for geographical reasons alone, is an obvious ally, but word reaches The Journal that there may be more behind the alliance.

The Labour politician came to power only after a bitter battle to get rid of former leader Albert Nugent, who was banned from standing when the new unitary authority was formed.

In the old Left world of Durham politics this cost Mr Henig a few friends. It has been suggested his relationship with the Labour powerhouse that is Paul Watson helps keep his rebels under control.

And what of Mr Watson? Essentially the man who killed off regional unity, he is ironically the chair of one of the North's few remaining regional bodies - the Association of North East Councils.

This he took from Gateshead's Mick Henry, who was far from happy to give up the crown. Mr Watson did so because he had grown tired of the region being represented to Whitehall from a Geordie-centric
viewpoint.

There was speculation a few years back that Mr Watson's position might not be as safe as he hoped, but of late he seems to have consolidated his position in the one-party state that is Sunderland.

So, with few changes likely to come at the top level for a while, Newcastle's recently-elected Labour leader Nick Forbes will have to go it alone if he wants to see his city retain the influence afforded it as the regional capital.

He and his officer team know this. After losing out in the enterprise zone battle they, along with Gateshead - the Robin to their Batman - are ready to revive economic regeneration plans and bid for investment which in some cases may actually put them in direct competition with this 'Southern
Alliance'.

How is this possible? Step forward Communities Secretary Eric Pickles, who scrapped regional planning guidance as soon he took power. More words in them than the entire words of Shakespeare, his department said of the planning documents.

Probably not correct, but what we do know is that previously if you wanted to build a large business park somewhere you had to explain the impact it would have elsewhere.

In a frantic effort to help deliver any signs of growth in the region, the coalition has implied it is more than happy for a little displacement. It looks now as if jobs will not be the only thing that gets moved around.

And if you want to know what the next blow will be to Newcastle, it might be worth watching the corporate hospitality box at the Stadium of Light today.

The answer neatly sums up the changing power dynamics of the North East and threatens to end Newcastle's dominance as the regional capital.

Mr Malcolm, you see, is attending those matches as a guest of Sunderland Council leader Paul Watson.

This week we saw the biggest signal yet that Tyneside can no longer guarantee it will get its way in major spending decisions.

City leaders gathered together with representatives from the business community to decide where in the North East the new enterprise zone would be located.

And instead of choosing a plan based around Newcastle and Gateshead, which independent consultants reckoned would have brought in some £900m in increased business rates to share out across the region, they backed the alternative 'Sunderland option' worth only £200m.

If an option on an enterprise zone had been put to the North East before last year's general election and the subsequent formation of the coalition Government which signaled the death of 'regionalism', then the choice would have been Hobson's.

Formerly the region would make decisions based on the greater good - or at least a high-ranking official at development agency One North East would order the decision - and council leaders would all accept it.

That regional unity has disappeared over the last 12 months. Instead we have a level of regional infighting, mainly among Labour leaders, in which Newcastle is increasingly looking like the losing side.

Messers Malcolm and Watson have, with the help of Durham County Council's Simon Henig, managed to convince business leaders in the region to back them over Tyneside on the important enterprise zone
question.

Mr Henig, for geographical reasons alone, is an obvious ally, but word reaches The Journal that there may be more behind the alliance.

The Labour politician came to power only after a bitter battle to get rid of former leader Albert Nugent, who was banned from standing when the new unitary authority was formed.

In the old Left world of Durham politics this cost Mr Henig a few friends. It has been suggested his relationship with the Labour powerhouse that is Paul Watson helps keep his rebels under control.

And what of Mr Watson? Essentially the man who killed off regional unity, he is ironically the chair of one of the North's few remaining regional bodies - the Association of North East Councils.

This he took from Gateshead's Mick Henry, who was far from happy to give up the crown. Mr Watson did so because he had grown tired of the region being represented to Whitehall from a Geordie-centric
viewpoint.

There was speculation a few years back that Mr Watson's position might not be as safe as he hoped, but of late he seems to have consolidated his position in the one-party state that is Sunderland.

So, with few changes likely to come at the top level for a while, Newcastle's recently-elected Labour leader Nick Forbes will have to go it alone if he wants to see his city retain the influence afforded it as the regional capital.

He and his officer team know this. After losing out in the enterprise zone battle they, along with Gateshead - the Robin to their Batman - are ready to revive economic regeneration plans and bid for investment which in some cases may actually put them in direct competition with this 'Southern
Alliance'.

How is this possible? Step forward Communities Secretary Eric Pickles, who scrapped regional planning guidance as soon he took power. More words in them than the entire words of Shakespeare, his department said of the planning documents.

Probably not correct, but what we do know is that previously if you wanted to build a large business park somewhere you had to explain the impact it would have elsewhere.

In a frantic effort to help deliver any signs of growth in the region, the coalition has implied it is more than happy for a little displacement. It looks now as if jobs will not be the only thing that gets moved around.

UPDATE - Worth pointing out, as Paul Watson has done, that the council does not have a have a box of its own at the Stadium of Light.

1 Comments

Mr KB said:

A bit emotive article, cant see the "balance of power" shifting from newcastle as the article put. There has been (for a long time) a dispropotionate amount of money spent in newcastle compared to other towns in the north east. It would be unsustainable for long-term growth if the EZ was centralised to newcastle and gateshead. Both areas have already seen wide-spread redevelopment and are subsequently buoyant in comparison to other regional areas, with worse economic pressures. As i say the article is written in a very emotive prose

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