What a Northern Powerhouse in Yorkshire means to: Jonathan Oldfield, MD of Riverside Waste Machinery

As Bdaily’s Northern Powerhouse series continues to give the business people of Yorkshire the opportunity to voice their opinions on the the government’s Northern Powerhouse initiative, we speak Jonathan Oldfield, MD of York-based Riverside Waste Machinery.

Jonathan shares what he feels are the next steps necessary to achieve Northern Powerhouse progress in Yorkshire, especially if the county is to avoid getting left behind by Manchester.

Hi Jonathan, so what do you think the Northern Powerhouse will do for Yorkshire?

For me, the current ‘hub’ of the Northern Powerhouse is Manchester. I can see the success that the city is already experiencing and I think Yorkshire needs to act fast so that we can become a part of it. I’d hate to think that Manchester will become the ‘London of the North’, to the detriment of surrounding areas.

With leadership, and collaboration, Yorkshire can thrive under this initiative. We can mirror the wealth creation that has already been seen at the opposite end of the M62, and consequently bring more opportunities to local people, in a better connected region.

What will the Northern Powerhouse do for Riverside Waste Machinery?

I think businesses that operate on a national level could be forgiven for thinking the Northern Powerhouse will have little impact on their organisations. But an enriched local economy, with more potential customers and talented employees on our immediate doorstep, can only be a good thing.

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

Unfortunately no, far from it. Last year, conversation surrounding the Northern Powerhouse really seemed to rev up, but, like many economic subjects, it has been completely overshadowed in recent times with talk of the EU Referendum.

It’s encouraging to read lots about the Northern Powerhouse in reputable regional business media, but real direction, communication and action from the Government, on the other hand, is comparatively lacking.

Connectivity has been a major driving force behind the Northern Powerhouse. Do you believe that spending billions on infrastructure will improve the economic climate in the North?

If you were to ask me if I think spending billions on a venture such as HS2 will improve the economic climate in the North, I’d say no. I think we will reap very little benefit, considering the scale of the investment. What’s more, if an increasing number of people travel to the North by train, they still need to get around via the roads. Yes money is being spent on the road network, but I fear it’s a drop in the ocean compared to what is needed.

I think there’s more value in ‘inter-region’ connectivity investment. Those of us who live close to the M1 or M62 for example, may fare OK – although I bet the majority of us would rather our journeys be quicker. For people that live or work further afield, travelling is even more of a headache. Of course we don’t want to spoil the beautiful countryside for which Yorkshire is renowned, but surely improvements can be made to the existing road and rail networks throughout the county.

What, if any, other sectors/industries should the government key in on to achieve a Northern Powerhouse?

If London epitomises the success of the British economy, I think we should look at what has succeeded there. I’m not suggesting we copy everything that London does, but there are surely things to be learned.

Financial and professional services have flourished in Canary Wharf for example, and I see no reason why Leeds could not become equally as renowned for such aptitudes, with time.

We also cannot neglect the manufacturing talent that Yorkshire has held for such a long time, but it would be great to develop a blend of successful industries to mitigate the risks that come with an unforeseen loss of a particular ‘trade’. The demise of mining went on to cripple parts of Yorkshire for years for instance, and the recovery, for people in the mining towns, has been slow. We need to ensure this doesn’t happen again.

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

I’d love for the Government to commit a greater level of funding to help small, medium and large businesses to help themselves.

We each play a role in the economic success of our region and, if there could be some concessions or tax breaks to encourage reinvestment, this could prove the key that unlocks further growth. We would each be contributing to further investment in Yorkshire then, not just the Government.

As with the Sheffield, should the other regions in Yorkshire try to strike a devolution deal with the government?

It’s easy to say yes as, in theory, devolution is a great idea. But it depends how devolution is defined and how far it all goes in practice.

In the waste and recycling sector, for example, I’ve seen some local authorities achieve great things from the initiatives they’ve spearheaded within their individual constituencies. Other councils, elsewhere, have utilised their budgets differently and therefore lag significantly behind as a result. Perhaps they’ve been forced to spend their limited financial resources on more pressing matters. Or maybe they’ve lacked the foresight to drive progress. Who can say with any real certainty?

I think there are some real benefits to be had with more localised power but there are risks too. Scotland was teetering on distancing itself from Westminster, to the point it could have become somewhat isolated. I would hate for this to happen to towns and cities throughout the UK, as a result of the devolution deals that are struck. For me, there needs to be a clear line on where the central Government will retain its control, so that joined up thinking and collaboration also takes place. I’d hate for a postcode lottery to emerge.

All of these points aside, I don’t think the time is necessarily right, just now, to think about devolution. There is so much uncertainty surrounding the EU Referendum that we don’t even know what’s happening on a national level, let alone locally.

Will the Northern Powerhouse be realised in Yorkshire?

Manchester’s traction to date shows that the vision of a Northern Powerhouse has the potential to become a reality. However, I think that anywhere within a one hour radius of Manchester needs to start to act, and quickly, to ensure they become a part of this vibrant movement, not simply a poor relation.

Thanks Jonathan.