Member Article

North East Northern Powerhouse insight: Steve Guest, MD of Techconsult

In an ongoing series, Jamie Hardesty is talking to North East business leaders in an attempt to understand the region’s feelings towards the government’s Northern Powerhouse initiative.

Today we present the views of Steve Guest, MD of Wilton-based Techconsult UK, which specialises in finding candidates for highly specialised roles in science and industry.

What does the Northern Powerhouse mean to you?

The Northern Powerhouse is high on the political agenda and there’s a lot of discussion around it, but at the moment I don’t think it’s especially clear what it means for the North East.

Driving investment and growth has never been more important, especially in light of the closure of the Redcar steelworks, the downturn in oil and gas and the industries that serve them, but whether the Northern Powerhouse is going to provide the solution needed for the North East economy to recover remains to be seen.

Questions remain around who will hold key decision making powers and my concern would be that the North East will lose out to bigger centres of influence such as Manchester and the North West.

Are there signs of the Northern Powerhouse starting to bear fruit in the region?

I’m yet to see any direct evidence of what the Northern Powerhouse has achieved here in the North East. Devolution and the transfer of any real decision making powers to the region is central to any real progress being made.

Whether a devolution deal will be struck given that the decision has been pushed back until May to allow for further concessions, is still to be determined.

Has the government done enough to convince you of its commitment to Osborne’s vision?

Commitment to Osborne’s vision is not really the issue here, the proof will be in how it works in practice and that’s a more difficult one to call. The political in-fighting and fragmented policy initiatives could well jeopardise any real progress from the off.

However, businesses in the region can’t just sit back and let the politicians do the talking, we need to come together as one unified voice to see any real progress.

Transport improvement is intrinsic to the Northern Powerhouse. Do you believe that spending billions of infrastructure will improve Northern productivity?

There’s been a lot of noise made about the potential of so-called HS3 from Leeds to Manchester but it’s absolutely crucial that investment moves out of these cities to ensure that the North East and other areas can also benefit.

The North East already boast some excellent transport links with Port of Tyne, Newcastle Airport, Tees Port and Port of Sunderland, however improvements such as the planned £1.2bn investment in world-class rail services will certainly be welcomed.

Working in recruitment sector placing senior level roles in science and industry, we need to ensure that we get the right talent into potential growth areas such as biotechnology and science, so it’s vital that the area is seen as a really attractive place to come to live and work.

Transport infrastructure certainly plays an important role in this but the Government spotlight needs to focus on investment in skills to support key growth sectors, so that we’re less reliant on drawing upon external expertise and that more opportunities are available to people here in the region.

Are there any other areas which you believe money should be spent on, ahead of transport?

As I’ve already eluded to, a focus on skills is vital to fill the gap left by the demise of once flourishing industries here in the North East such as steel and historically ICI and mining. The Government needs to ensure we are geared up to take advantage of opportunities in areas such as manufacturing, automotive and the areas of science I’ve touched on.

There are some very innovative businesses here in the North East developing novel technologies which should be celebrated, however the situation at the moment is that the people who fit these businesses by and large don’t exist in the North East.

Does the North East need a mayor? If so, who should it be?

Having an elected mayor in place is essential to the Government’s devolution deal so in short, yes. Who this should be is a different matter. It needs to be someone with the personality to get us noticed and really bang the drum for the North East, but who has a real understanding of the industry landscape and what needs to be done to drive growth in key sectors.

Will the Northern Powerhouse be realised in the North East?

It’s too early to say given the questions that still remain around the devolution deal; until we have some clarity I don’t feel as though I’m in a position to say one way or another.

I certainly hope that it is realised as we need a solid vehicle to push forward our economic agenda and drive jobs and investment in the North East.

Thanks Steve.