Future now starting to look better

Mar 22 2010 by Kevin Rowan, The Journal

THE announcement that Nissan has selected its Washington plant as the site for the manufacture of the new Leaf electric car is a great boost to the region.

Allied to the new factory to manufacture batteries for the car, the new test track and the development of distributed charging points throughout the region all contribute to sending the North East light years ahead in the low carbon manufacturing future.

Following on from the Clipper announcement of the Neptune Blade Facility in Walker there should be the emergence of real and tangible optimism.

These developments are, of course, great news, but they come in the midst of the closure of the Shop Direct call centre in Sunderland, with the loss of 900 jobs and a further 175 jobs going with the closure of TRW Systems in Washington, the looming spectre of public sector job cuts and, of course, Corus.

The reality is this has been a typical recession, affecting the North the most and impacting on manufacturing the most, the sector that still contributes most to the region’s GDP.

It may have started in the whiz-kid world of corporate financial gamblers, but it is our skilled workforce and manufacturing businesses that are feeling the most pain and the evidence would suggest that while the bankers begin to again enjoy bonuses the workers will continue to be anxious about the next announcement in their factories.

It is important to get the balance right in the message about the regional economy. These will be tough times for a while, but the good news is starting to come through.

The Clipper announcement will be followed by others in the offshore wind sector soon.

The picture looks like the North East is ready to spring out of the downturn in much better shape than in previous recessions.

The region has proved resilient, but it has been a trudge, rather than a sprint to economic prosperity. Underpinning the positive announcements so far has been public sector support.

The New Industry, New Jobs agenda is being played out well in this region. Key to this changing from ‘good’ to ‘great’ news, from slowing down job losses to significant employment growth is continuing public sector leverage for private sector investment.

The UK government should resist the siren sounds from the EU and continue its strong investment in its own economic recovery; it is that, not cuts, that will deal with the deficit.

Kevin Rowan, regional secretary, Northern TUC