Seminar on revitalising the old industrial base of North East China
Check Against Delivery
Good morning and thank you for that introduction.
May I take this opportunity to publicly welcome Premier Wen to the United
Kingdom - and to offer him my good wishes for a very successful visit.
In the last 7 years, I have visited China 7 times, and during that period,
our countries have grown closer.
Premier Wen, it has been a privilege to work on the China Task Force which
has strengthened our relations.
It has shown that the UK and China can learn a great deal from each other.
Our nations have common interests, common issues and common aspirations.
I also want to congratulate the China-Britain Business Council on their
50th anniversary. I thank them and the China Council for the Promotion of
International Trade for building important economic links between our
nations.
I'm proud that the UK is the largest EU investor in China, with over
3,500 joint ventures and total investment pledged of over £10 billion.
The pace of development in China is phenomenal: In the last 7 years, trade
between the UK and China trade has tripled. Our exports to China increased
by 28% in just one year (2002-2003).
In this spirit of stronger friendship and closer economic ties, I want to
talk today about our experience of regeneration and how we want to create
sustainable communities.
These are places with jobs, homes, and an attractive environment.
They're high quality communities where people feel proud to live - and
want to live.
I strongly believe that China and the UK both want to create the economic
prosperity and social justice - which lie at the heart of sustainable
communities.
We both want all our regions to share in the nation's
wealth and make sure that it is distributed fairly.
We both have regions which are economically successful. But we also have
regions - coincidentally, in the North of our countries - which do not
fully share in the nation's prosperity.
Many towns and cities in the North of England were dependent on traditional
heavy industries which went into decline years ago.
At the same time, other regions - particularly London and the South East -
became richer and richer thanks to their new service economies.
This has resulted in a widening gap in GDP growth between the northern and
southern regions.
If the North of England could achieve the same rate of growth as the South,
it would mean an extra £30 billion of GDP or 200,000 more people in work.
So our challenge is to develop our English Northern regions at a faster
rate, rather than slowing the growth of the southern regions.
The Government has helped in a variety of ways:
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We've established the longest period of stable economic growth for
over 200 years.
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We've given a fairer distribution of resources and increased our
expenditure.
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We've encouraged better local leadership.
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We've set up regional development agencies to promote jobs and
growth.
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We're helping people to get the right skills for a fast changing
economy.
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And we've promoted an urban renaissance (by reusing old industrial
assets and brownfield land, and by offering people incentives to invest
in deprived areas).
From the start, we wanted to make the most impact on regeneration with the
money available. So we focused on special long term programmes to tackle
the worst aspects of industrial decline.
For instance, the coal industry has lost 96% of its jobs since 1984. So I
established our very successful £500 million initiative to clean up land
and reskill people in our coalfield communities.
I also prioritised the repair of publicly owned housing.
Last week I announced that we have reduced the number of inadequately
maintained homes in the public sector by one million.
That's one million fewer homes left neglected.
One million fewer homes in disrepair.
A good home is essential for a decent quality of life - but we also need
major investment in jobs and economic development.
The public sector on its own can't deliver the level of investment we
need. So we've encouraged partnerships between the public and private
sectors. Together, they are investing large sums of money in new roads, new
homes, and new hospitals.
Although we are by no means complacent, our policies are
working.
For instance, I've just published a report which shows why I'm so
proud of what has happened in our major cities.
For years, people moved out of the cities because of a deteriorating
quality of life. But now the people are coming back. They're attracted
by a cleaner, greener and safer living environment.
The major cities are also have a very significant role in increasing the
prosperity of their regions.
I realise in China that you are at the stage of rapid industrialisation
which means that declining urban populations are not problem. But
eventually, unless you achieve sustainable communities, it will lead to
your growing cities going through future decline - which will bring major
social problems.
Here in the UK, a lot's been done, but there's still a lot to do.
Last year I announced a major new programme - the £22 billion Sustainable
Communities Plan - which offers different solutions for different areas.
For example, we are spending £500 million to help parts of the North and
Midlands where industrial decline has caused a virtual collapse in house
prices.
On the other hand, we're planning new Growth Areas in the South East
and London to cope with serious housing shortages there.
Erik Sorenson will speak to you later about one of these Growth Areas - the
Thames Gateway.
Across the board, the Sustainable Communities Plan encourages new ideas,
new skills and new ways of working - especially between the public and
private sectors.
We've got a whole range of new initiatives to create sustainable
communities.
Recently, I launched a new idea which I call the Northern Way.
The economies of the 3 regions in the North of England have been
underperforming compared with the South of England. But they have
tremendous potential if they work together.
The Northern Way will promote new jobs and growth along existing transport
corridors across the North.
It involves the public and private sectors collaborating on new investment.
It means a new determination to create new jobs and to promote social
justice.
So we've got three Northern regions which we are helping to prosper.
I believe that, coincidentally, China has 3 Northern regions too!
Each of them is represented here today, and you are all very welcome.
I hope you will all agree with my remarks today - that China and Britain
have a lot in common and that we can learn from each other.
I've certainly not come here to tell the Chinese what to do. China will
find its own way to do things. But hopefully we can share our
experiences and our expertise.
I want to learn from China. My country wants to learn from China.
Premier Wen, I sincerely thank you for coming to the United Kingdom.
May our countries continue the excellent work we have begun together. And
may our friendship grow even stronger.
10 May 2004
