NORTHERN REVOLUTION

Downtown in Business  campaign for a “northern revolution” to close the North South divide got a major boost this week. A leading think tank has recommended that cash strapped councils and public agencies across the North should come together to find new ways of delivering services in cooperation with the private sector.

 

The Smith Institute launched the report in Leeds amid claims that public spending cuts were on such a scale that senior officers and councillors could quit in despair. The report’s author, Michael Ward, warned town hall trade unions that they must cooperate in change of suffer the fate of the print unions who led a futile fight against changes in newspaper production in the 1980s.

 

Public sector cuts are leading to a major rethink about the very basis on which services are delivered. Roger Marsh, Northern Leader for Government and the Public Sector for Price Waterhouse Cooper in Leeds feels the current system of delivering council services is broken. He believes the Combined Authority model already operating in Greater Manchester could be copied in West Yorkshire.

 

The report paints a gloomy picture of the central government’s ability to sustain local government from a shrinking pool of tax revenue. It says that North Sea oil is in decline and countries are engaged in a race to the bottom in slashing Corporation Tax.

 

The report analyses the claim that northern councils are doing worse than their southern counterparts in the current settlement. They find that it is so and point out that the New Homes Bonus is benefiting southern councils that would have built new houses anyway.

 

Mr Ward called on councils to use technology to cut costs so they could concentrate on personal services for children and the old. John Pugh, the Lib Dem MP for Southport, said it was not a good time for council’s to be visionary. His authority, Sefton, was totally preoccupied with coping with the cuts.

 

Mr Ward ended with a rallying call for a Constitutional Convention for England to debate his proposals. Perhaps he will join Downtown’s Northern Revolution.

WILL MANCHESTER VOTE YES TO ELECTED MAYOR?

MANCHESTER REFERENDUM

A very senior contact within Manchester Town Hall told me this week that there would be a three to one vote against having an elected mayor in Thursday’s referendum. But is that right?

With Liverpool set to elect Joe Anderson to this powerful post, will its big rival want to be left behind?

Most people thought Salford would reject the concept in its January referendum but although the turnout was small, I understand that in every ward there was a yes vote. That shows widespread though limited support for the idea.

That Salford is to get its local champion might be a good reason for Manchester to follow suite. The ten councils of Greater Manchester have come together in a Combined Authority sinking their local differences in the interest of all. There is concern that the Salford mayor waving his mandate from the people could destabilise things. Better then that Manchester has an elected mayor too.

Now let’s look at the candidates on offer in the two cities that are having mayoral votes on Thursday.

 

SALFORD MAYOR ELECTION

In Salford Labour’s candidate Ian Stewart was not a happy bunny when he lost his Eccles parliamentary seat in boundary changes in 2010. But he benefited from internal opposition to council leader John Merry to gain the nomination. He is almost certain to win and will be a doughty fighter for Salford, although his complete lack of local government experience is causing anxiety.

The two other major parties have good candidates who have served Salford well over the years. Norman Owen for the Lib Dems put a big dent in the Labour majority some years ago, but faces the problem that good work on the ground may count for little when set against his national party’s unpopularity.

Being a Conservative in Salford is never easy but Karen Garrido has battled on, often being a lone voice on the council. Her slogan in this campaign is “Trust the People”. They are unlikely to give her the answer she wants.

UKIP was ahead of the Lib Dems in one recent national opinion poll. In Salford its candidate, Bernard Gill, is claiming the money spent on regenerating The Crescent gateway to the city is a waste of money. Meanwhile the Green’s Joe O’Neill wants to cut the number of Salford councillors by a third, a policy that has merit with an elected mayor in place.

Of the other candidates, the independent Paul Massey stands out. He’s served time for a serious assault but claims his experience of the criminal world will serve the people of Salford well. David Cameron said he wanted a different type of person to come forward for elected mayor rather than the usual suspects. It’s unlikely he had Mr Massey in mind.

 

LIVERPOOL MAYOR

In Liverpool Labour’s Joe Anderson has dominated the mayoral race. He swept to power two years ago and as the Liberal Democrats have collapsed,Anderson has forged ahead with a business friendly agenda to promote the city’s economy for too long dependent on the public sector.

He has bitterly criticised the government’s cuts but readily embraced a city deal which he claims will restore some cash to the city as well as giving the elected mayor power over new improvement zones.

So keen was he to gain the fruits of the city deal that he got the council to scrap a mayoral referendum and move straight to a vote for mayor.

Anderson may win on the first ballot but it is worth mentioning that these elections are being run under a system called the supplementary vote. People can put an x in the first column of their ballot paper for their first choice and an x in the second column for their second choice.

If a candidate gets 50% of the first preference votes he is elected. If not the second choice votes for the top two candidates are counted. In theory the second candidate could overtake the first candidate in the run off.

The problem with this system is that to make your second choice count you have to guess who the top two candidates are going to be.

It is quite hard to work out who is going to finish second to Joe Anderson.

The Lib Dems have the highly experienced councillor Richard Kemp who could credibly run the city. The Conservatives have  businessman Tony Caldera. He won’t win this race but if David Cameron wants to do something about the “posh boy” image of his party then he should get  Tony into parliament double quick. From a market stall in Kirkby, he now runs a multi million pound soft furnishing business. His friendly and articulate manner will take him far.

Then there is my former BBC producer and friend Liam Fogarty. He has campaigned for ten years for an elected mayor against entrenched opposition to the idea from the political establishment. He is passionate about Liverpool and would seek consensus from a whole range of people about the city’s future direction. The question is would he have the stomach for the rough and tumble of city politics? He certainly merits consideration for a second choice vote.

There are two other candidates with good Town Hall experience standing. John Coyne for the Greens and Steve Radford for the Liberal Party.

Even with 12 candidates standing there isn’t a single woman. The last I would wish to highlight is Tony Mulhearn. The Trade Unionist and Socialist Coalition candidate has stuck to his principles ever since he was expelled from the Labour Party for his membership of Militant in the eighties. I admire him for that and his vote may be stronger than people imagine in the light of George Galloway’s success in Bradford.

EUROFIGHT ON AND MANCHESTER “YES” TO MAYOR?

The aerospace industry is vital to the North West economy, so the chance to partly assemble 126 Eurofighter Typhoon jets for the Indian Air Force must be fought for.

On a visit to Westminster this week I gained evidence that much is going on behind the scenes even though preferred bidder status has been given to the French.

Ben Wallace, the MP for Wyre and Preston North, along with his colleague Mark Menzies (Fylde) met the Prime Minister on Monday. Eyebrows had been raised when news came through that the French had stolen a march on us, because David Cameron visited India with a big trade delegation soon after coming into office.

Now more details are emerging about the situation which could have implications for the workforce at Salmesbury, Warton and beyond. The strength of the French bid apparently lies in their tie up with the Reliance Group, India’s largest private sector conglomerate. With annual revenues of $58bn it is far larger than Tata, the Indian company which owns the Jaguar plant at Halewood.

However this deal is far from done and with David Cameron on the case, efforts will be made to expose the weaknesses of the French position. I’m told Reliance has no track record in aerospace and there is very little detail on price which could be significant as the French are desperate to get a foreign order for their Rafale jet. 700 of the Eurofighters have already been sold.

Ben Wallace emerged from his meeting with the PM confident there was all to play for. Apparently in similar negotiations for these aircraft the preferred bidder has been overtaken on six occasions.

Wallace is a Conservative MP in the tradition of former members like David Trippier (Rossendale) and Malcolm Thornton (Crosby). They are Tories that believe that to be successful in the North West; it helps to come from the liberal One Nation part of the party.

Wallace has been in the House since 2005 but faces a brutal internal party battle to maintain his political career. Boundary changes are likely to see him, Mark Menzies (Fylde) and Eric Ollerenshaw (Fleetwood and Lancaster) competing for just two seats.

During our time together at the Commons  we bumped into Wallace’s neighbour Jack Straw (Blackburn). Jack seems to be almost equally concerned aboutIranand Blackburn Rovers these days. He feels his successor as Foreign Secretary, William Hague, is underestimating the growing crisis surrounding Iran.

On the crisis at Ewood Park Jack had made an unusual move for an MP, in calling for manager Steve Keen to go. He seemed unimpressed when I remarked that Rovers had been doing a bit better recently.

Around the Commons corridors much of the talk is about elected mayors and Police Crime Commissioners. Ben Wallace told me he’s lining up an ex-soldier colleague of his to contest the position for the Lancashire Police Authority.

On the mayoral front I had an interesting chat with former Labour Minister and Wythenshawe MP Paul Goggins. There has been a general feeling that Manchester will vote “no” in the May referendum on whether to have a directly elected mayor with council leader Sir Richard Leese being against the idea.

However Goggins does not rule out a “yes” vote in Manchester pointing out that in neighbouring Salford last month every ward voted “yes” in a referendum triggered by a local businessman. So although the turnout was low, support was consistent across that city.

Following the “yes” vote, candidates have piled in to be the Labour nominees. The former Eccles MP Ian Stewart, has been joined by Salford council leader John Merry and former Labour National Executive Committee member Peter Wheeler.

A TALE OF TWO CITIES

In the week when we are celebrating the two hundredth anniversary of Charles Dickens, I’m writing about two cities; not London and Paris but Manchester and Liverpool.

If you want to know the real issues facing business in Manchester city centre ask Pat Karney.

He’s the councillor responsible for the heart of the metropolis and everyone beats a path to his office.

At a major gathering of city centre employers this week, Cllr Karney gave them an insight into the diverse range of problems that came across his desk in just one morning. In addition to the uproar over charging for Sunday parking, one shop keeper came to complain about human excrement outside the Hidden Gem church and representatives of the gay community objected to a club being turned into a budget hotel.

Despite these minor inconveniences, Manchester seems to be surviving the recession very well. Indeed council leader Sir Richard Leese suggested that the city centre could accommodate a thousand new residential units a year for the next decade. There is 96% occupancy of the existing provision. Leese claimed that Manchester employment had returned to pre recession levels.

Leese does not want the city to vote for an elected mayor, he prefers the Combined Authority model that has been in place for nearly a year now. All the local authorities in Greater Manchester are working together to drive an impressive range of projects.

There’s the enterprise zone at Manchester Airport where the infrastructure for a major retail, leisure and warehousing scheme will be in place by next year. In addition there’s MediaCity and the Sharp Project in east Manchester for budding media businesses. So successful has the latter been that Sharp 2 is planned. Nearby Manchester City football club is developing the Etihad Project.

At Manchester University a government backed plan is underway to capitalise on the discovery of graphine (very thin and very strong). Are we going to make some money for once out of a product developed in Britain?

Salford’s soon to be elected mayor will inherit a city still struggling with some big social problems but with a number of infrastructure schemes including the Chapel Street gateway and a plan to open up a riverside route from MediaCity up to Salford University.

Meanwhile Liverpool Council took the formal decision to go for an elected mayor. Liberal Democrat opposition to scrapping the planned referendum was half hearted and the debate did not match some that I have witnessed in the historic council chamber.
Council leader Joe Anderson had the wind in his sails having just signed off the £130m deal with the government that he insists was only possible because the city was going to have an elected mayor.

One felt the politicians already had their eye on who was going to stand. Joe Anderson will clearly be Labour’s candidate. He might face ex leader and Lib Dem peer Mike Storey. The suggestion was certainly not denied by a senior party source. If Storey can’t be lured from the best club in London, then Cllr Richard Kemp might consider standing.

The Liberals will field Cllr Steve Radford who gave his support to the new post on Tuesday night, and there is likely to be a Conservative candidate.

But the campaign will be enlivened by independents. There are two at the moment and they make an unlikely couple. There’s former broadcaster Liam Fogarty who has campaigned for the last 10 years for an elected mayor. A clever man of substance, he cares passionately about his city. It will be fascinating to see how he stands up to the robust style of bruiser Anderson.

Then there’s celebrity hairstylist Herbert Howe who has promised to take no salary and to be independent of all party factions.

Before you dismiss his chances remember that Robocop got elected in Middlesbrough. H’Angus the Monkey won in Hartlepool and an English Democrat became mayor of Doncaster.