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.

JOBS, MAYORS AND WIRRAL IN A WHIRL

Who’s going to pull us out of this economic mess? Big companies, SMEs, or the North West’s answer to Mark Zuckerberg lurking on one of our university campuses like Lancaster or UCLAN?

Unemployment might top three million by year end according to some forecasters.

Certainly last week’s jobless figures did nothing to raise spirits in manufacturing areas like Lancashire.

Hard on the heels of the unemployment statistics came news of disappointing sales results at BAE Systems. That’s a big company employing thousands of people at Warton, Salmesbury and Chorley.

They’ve been hit by falling defence orders and may lose a major contract for Eurofighter Typhoons for the Indian air force to the French. It should be pointed out however that Dassault Aviation is only the preferred bidder and frantic efforts are being made to ensure all is not lost.

Then there’s AstraZeneca employing three thousand people at Alderley Park in Cheshire. There’s another giant in the job cutting business because producing new highly profitable drugs is getting more difficult.

Finally in this catalogue of tottering titans, we have General Motors which owns the Vauxhall plant at Ellesmere Port. Despite a highly efficient and cooperative workforce, the American based management is reported to be contemplating cuts in its European operations here and in Germany.

So what’s to be done? BAE, AstraZeneca and Vauxhall are big potatoes in the North West economic stew. If they are downsizing, where are the jobs to come from?

The Institute for Public Policy Research North published a report last week that might provide part of the answer.

The document “Beyond bricks and mortar boards: universities and the future of regional economic development”, points out that knowledge-based industries employing staff with high level skills will see the most significant growth in job creation by the end of the decade.

So universities like UCLAN will be central to skill creation, but the report says there needs to be wider recognition of the role universities can play in the North West economy.

As well as producing highly skilled people, the report identifies their economic impact in university towns like Lancaster where high incomes are generated and the institution is a significant employer.

Like everyone else, universities have had to adjust to the new regional policy landscape which has seen the Regional Development Agency and North West Universities Association swept away.

The report challenges the new Local Enterprise Partnerships to make the best use of the universities in this region.

At the launch of the report in Manchester there was an acceptance of this approach, but efforts by a few attendees to trash the reputation of the RDA were resisted. The Vice Chancellor of Manchester Metropolitan University, Prof. John Brooks, was not alone in criticising the lack of regional focus in the new arrangements.

From the rarefied company of academics in Manchester I was quickly back to low politics on Merseyside.

First I dropped in on Alec Salmond charming an audience in St George’s Hall with his demand for Scottish independence. The First Minister is a clever politician lacing his address with references toLiverpooland all the fine football managers his country has bequeathed the city.

I wanted to ask him a key question but wasn’t lucky enough to be called so I’ll ask it here. “Mr Salmond, you have a mandate for a yes/no referendum on Scottish independence. What you don’t have is a mandate to ask a question about ‘ devo max’ which could muddle the answer and would show your lack of confidence that you can get full independence. What’s your answer?’’

Then it was on to Wallasey Town Hall to see the latest chapter in the soap that is Wirral politics. Steve Foulkes has been deposed as Labour leader after just nine months back in office by a coalition of Tories and Lib Dems which may only have three months in power before Labour sweeps back in the May elections.

Wirral was one of the councils most opposed to a city region mayor. I fear they will become increasingly marginalised conducting their power struggles whilst Liverpool benefits from the cash that will follow the election of a mayor.

On that subject I have only one thing to say this week and it is to Phil Redmond. In a Liverpool newspaper, the Tarporley resident tells us he wants to be provided with a series of answers before he deigns to tell us if he’s a candidate or not.

Find out for yourself Phil, and then decide one way or the other. Unlike arty seminars, politics requires decisions.