PARTY conference season is fast approaching. Phone hacking, riots, unrest in the Middle East and economic and market turmoil are just a few of the issues that 2011 has thrown at our Government so far. UK economic growth is struggling and the labour market is ill at ease.
In this context North East businesses still need to find their voice if they are to influence decision makers. NECC is continuing to make this possible. As we prepare to brief all political parties ahead of the conferences we will be reflecting carefully on what the key issues are that will impact upon wealth and job creation in our region.
Infrastructure is one of the few areas where spending can be justified. The transport hubs that connect businesses to their markets, the power lines that provide electricity and the broadband upon which we are all now virtually dependent – all make business possible.
However, in these difficult times investment is being cut back. The connectivity that we have to our markets in the UK and beyond must be protected and built upon if we are to remain competitive as a region.
In recent months NECC has been lobbying on behalf of North East businesses to have air passenger duty (APD) reformed. APD has risen exponentially in recent years and is an extra cost that must be shouldered whether you are an exporter or a sun seeker.
APD hinders the development of new connections from the North East to key international markets, making trade from this region more difficult.
Reform of APD, currently being mooted by HM Treasury, must seek to underline the important economic service that regional airports provide. This means, firstly, that reforms must seek to decrease the financial burdens that APD places upon consumers. Secondly, reforms should address the imbalances that exist between the UK regions insofar as congestion is concerned. We must also resist any possibility of APD varying powers being devolved to Scotland, as this would be damaging to the competitive position of our region.
This will help to rebalance not only the numbers of flights away from congested airports, but economic activity as well.
:: Dave Laws is chief executive of Newcastle International Airport