Gateshead Council's Reform administration has defended its search for a potential site for a proposed Defence Enterprise Zone, following criticism from the Labour group leader who called for a "reality check".
Proposal details
ChronicleLive reported that Gateshead Council's leader and Reform UK councillor Nick Allan backed the Adam Smith Institute's (ASI) call for a new defence-based enterprise zone on 125 hectares of land adjacent to Blaydon Quarry. Coun Allan said the council's economic development team would conduct an initial scoping exercise into the possibility.
Since then, Gateshead Council's Labour group leader Coun John Adams has critiqued the possible zone, along with four others across the North East, as "particularly optimistic", but said developments of this nature need "rigorous" co-operation with both the government and industry.
Labour leader's concerns
Coun Adams said: "I would like to study the full report carefully, but while there are things to support, I worry that the whole idea needs a reality check.
"Enterprise zones are nothing new to Gateshead. They helped bring major employers including IKEA and Amazon to the borough, and they can be a powerful tool for attracting investment and creating jobs. I'm not sure many people would oppose another Enterprise Zone in Gateshead.
"But this proposal has no Government backing. It depends upon putting challenging terms and conditions in major defence contracts and persuading multinational companies to become anchor tenants. Having worked for think tanks, I know that publishing an eye-catching proposal is the easy part; turning it into real action is much rarer.
"The suggestion that five separate North East sites could all attract the major defence companies needed to get them off the ground looks particularly optimistic."
The Labour group leader also suggested other areas of Gateshead should be examined, including Tyne Marshalling Yard, beside Team Valley, and land around Follingsby.
Reform leader's response
The ASI's report states it aims to recreate the successes of the Nissan Sunderland project, which at its peak directly employed 7,000 workers and invested billions into the local economy.
Coun Allan said: "From the outset, this Reform administration has made clear our determination to bring new prosperity to the borough. Given the precarious state of national defence, following decades of cuts and attrition by Labour and Conservative governments, the nation now realises the need to bolster our defensive capability and the government is now committed to see that through (although by an amount yet to be made clear).
"The role of Enterprise Zones in generating industrial and commercial growth is well recognised and it make sense to bring both aspirations together, if at all possible. The benefit of a Defence Enterprise Zone, focused on the technological aspects (drones, space, cyber etc.) is powerful.
Coun Allan cited job creation, attracting major companies, and the restoration of industry as major boosts such a zone could bring.
"The authors of the report had proposed an area around Blaydon Burn as a potential site. We have since quickly determined that that location will not be suitable for a variety reasons, not least contamination and settlement from previous usage.
"Please note that the Reform administration has not pushed the site to the expense of others. Indeed, the authority is currently searching for alternative possible locations. We are determined to exploit such an opportunity for the benefit of the borough and its residents.
"Whilst we regret the pessimistic and begrudging attitude of the Labour Party (who have decimated our local economy over decades), we are working positively, urgently and with commitment to develop the industrial and commercial base of the borough."
