Member Article

North East Northern Powerhouse insight: David Cliff, MD of Gedanken

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.

Whilst awareness of the phrase has of course increased during this time, growing consciousness has not necessarily produced greater understanding of what the Northern Powerhouse actually is. Bdaily hopes to change this.

This investigation, surveying regional business opinion, hopes to add coherence to the concept and today we’re luck enough to present the views of David Cliff, Managing Director of Gedanken.

The company offers individuals, businesses and public services, approaches to: support, grow and develop people and organisations.

With 30 years’ experience in coaching, counselling and development, David is also Vice-Chairman of the Institute of Directors in the North East and a member of the Entrepreneurs’ Forum.

What does the Northern Powerhouse mean to you?

In common with a lot of people it doesn’t mean a lot at present. It is a well-intended concept, being treated as a normalisation, which people with particular interests use like a noun.

We have to be clear the Northern Powerhouse is what we make of it as much as what government makes of it. We also have to be clear about where it’s true geographical focus is, and I’m not convinced everyone is clear on that.

Meaning derives from true experience, in the human psyche, not from simple concept space and I am concerned about the number of people building castles in the air around this concept, without the levels of inclusive debate that are needed to bring it to life.

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

I think we’re beginning to see the debate, but the problem is perhaps the Government putting ideology before pragmatism. What drops through the cracks between the idea and the process is the acid test of a decent policy framework, all else is “faith without works”.

At the risk of sounding mildly cynical, hope springs eternal, but rarely affects the bottom line particularly in times when there is still a deficit mountain to climb. It is however encouraging to see member organisations in the region beginning to work together with increasing closeness to respond to the challenge.

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

Glass half full, George Osborne is trying for the first time to put the North on the map. My concern is there is no universally accepted geographical concept as to just where that is. The end result is often that the North East can be left out.

While I think there are sterling attempts to ensure our inclusion, there is a danger that we in the North East will have to fight to ensure that we are not side-lined as a rural suburb of Manchester and Leeds. In the same sense, we need to maintain a holistic view of our region, not one centred around Newcastle alone.

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

We certainly need improved infrastructure and I’ve always campaigned for balancing the gap that HS2 creates. We also need to carefully balance our need for growth against conflicts of interest in certain sectors.

An increase in infrastructure and manufacturing, for example, may detract from the reality of some areas and their cultural and tourist trade appeal. This is a beautiful area of the country, we don’t want to go back to something akin to our grimy industrial past.

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

Education has to be a priority. There are still just too many young people with insufficient hope for the future, extraordinary low aspirations and a sense that living or remaining in the North East is either their fate or career blight. We need to be careful that we don’t create the roads for our young people to simply exit the area more quickly.

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

I suspect whether we need one or not, we’re getting one. It’s not for me to comment on the successful incumbent. My sadness for our democracy is very few ordinary people get into office, those who do are usually either politically well-connected or heavily personally resourced.

That said, and implying no direct endorsement at all, I believe Jeremy Middleton may be offering a vision that challenges some of the usual tribal centres of power we appear to have in the North East, and it is equally refreshing that he challenges his own political affiliations in his manifesto.

Mayoral incumbents need to be distanced from their political roots so they are able to create necessary systemic tension to promote change. Whoever gets it, it will be a tough job in an imperfect system, administering funds radically cut by the austerity process.

The key challenge will be to ensure inclusiveness, rather than just listen to the shouts of the powerful in our communities. This is a great opportunity, but it needs to be grounded in reality.

Will the Northern Powerhouse be realised in the North East?

I am reminded of the hymn verse that ends “and was Jerusalem builded here?” when hearing this question. “Realisation” is a relative term when dealing with concepts, as we are at present, rather than fully formed plans. In short, it’s just too early to say.

Thanks David.