Member Article

Region sold short by transport cuts says NECC

The North East economy will be dealt a tough blow if transport links are not improved, according to the North East Chamber of Commerce (NECC).

In a letter sent to Transport Minister Philip Hammond, the organisation says that the North East’s ageing roads will soon be unable to cater for a growing economy, and will prevent businesses from forming new economic links in the UK and beyond.

The letter was sent following a meeting of the NECC Council, in which the cancellation of the Leeming to Barton upgrade of the A1 was criticised.

James Ramsbotham, chief executive of NECC, said: “The Government’s backtrack on its commitment to improve a vital artery linking the region to the rest of the UK means that for the foreseeable future the North East will remain the only English region not connected to the strategic motorway network, and one of the few regions in the UK not seeing any major upgrades to its strategic road network before 2015”.

“This is added to the fact that per capita investment in North East transport infrastructure is still below the national average, and also keeping in mind that congestion costs the North East economy - as a percentage of gross value added - more than any other English region.

“While the case for deficit reduction has been made absolutely clear, the case for widespread cuts to expenditure on North East roads has yet to be explained.”

As the only English region with a positive balance of trade driven by exports across all sectors, NECC believes that the North East can only continue to successfully grow its presence in foreign markets if connections to them are world class.

Mr Ramsbotham added: “The North East economy has been dealt a poor hand in recent announcements on road infrastructure funding by the Department of Transport.

“Deficit reduction should not mean cuts to investment in projects that support economic growth and can clearly prove value for money and we are in no doubt that this would add significant value to the region’s businesses.”

With much of the preparation and design work for the road already paid for, NECC claims that cancelling plans has been a waste of public funds.

Mr Ramsbotham added: “As a result of the project’s cancellation, land that has been procured as part of the upgrade to this stretch of the A1 will be released following a protracted negotiation and purchasing schedule.

“The time consuming process of re-acquiring this land, potentially at an inflated rate, would be another example of an unnecessary waste of time, as well as public funds.

“In light of all of this, we would urge the Transport Minister to review recent spending decisions and reconsider whether the cuts he has outlined are fair to a region that needs every economic stimulus possible to balance the vacuum created by significant public sector cuts.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .

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