:01:23. > :01:25.His transport policy stuck in And in the Midlands, if Whitehall
:01:25. > :01:28.can't deliver economic growth, would our local leaders do better?
:01:28. > :01:38.They bet they would. Roll the dice, pass go, collect a billion-pound
:01:38. > :01:38.
:01:38. > :37:26.Apology for the loss of subtitles for 2147 seconds
:37:26. > :37:28.Hello once again from the Midlands. I'm Patrick Burns. And with us here
:37:28. > :37:38.today, two former Government ministers, better known these days
:37:38. > :37:38.
:37:38. > :37:40.for saying it as they see it. Digby, Lord Jones of Birmingham, was a non
:37:41. > :37:43.party political trade minister under Gordon Brown. Gisela Stuart,
:37:43. > :37:45.the Labour MP for Birmingham Edgbaston, was a health minister
:37:45. > :37:47.under Tony Blair. Let's begin with Jaguar Land Rover
:37:48. > :37:50.where the unions are seeking reassurances over jobs here
:37:50. > :37:53.following confirmation that the firm are not only setting up a
:37:53. > :37:59.joint venture to produce vehicles in China, they're also considering
:37:59. > :38:08.opening a plant in Saudi Arabia. JLR have so far declined the BBC's
:38:08. > :38:12.repeated invitations to put someone up to talk about it. You act as an
:38:12. > :38:17.ambassador for Jaguar Land Rover, but makes you the next best thing.
:38:17. > :38:22.You can understand why the unions are anxious. I can understand
:38:22. > :38:28.anxiety. My job is very much external and flying the flag. The
:38:28. > :38:34.first I knew about it was when you knew about it. I know no more. But
:38:34. > :38:41.they are such a global success, JLR. They have not got enough capacity
:38:41. > :38:50.to make enough of the stuff. If you are in a market... Saudi Arabia is
:38:51. > :38:55.a good example. They buy lots of Land-Rovers. Looking ahead 10, 15
:38:55. > :39:01.years. If there is going to be extra growth, you really do score
:39:01. > :39:08.hugely if you build near your market. Not one person making them
:39:08. > :39:12.or selling them in Britain should worry about this at all. This is
:39:12. > :39:18.not substitution. Are you satisfied with this as someone who represents
:39:18. > :39:22.Birmingham? I want some kind of reassurance because it is quite
:39:23. > :39:29.right that the closer you produce to the market, the better. But part
:39:29. > :39:33.of the Saudi deal is aluminium. Energy costs for any aluminium
:39:33. > :39:37.production is very important. I want reassurances that the
:39:37. > :39:43.aluminium smelters, and we have got them from the government... The
:39:43. > :39:47.unions are right to be worried. We want the technological developments
:39:47. > :39:49.that go with production. One leading motor-industry expert
:39:49. > :39:58.is certainly bullish about Jaguar Land Rover's overseas prospects
:39:58. > :40:03.which he says should hold no fears for workers here. They have to
:40:03. > :40:09.expand abroad. That is where the markets are. They're going to build
:40:09. > :40:13.a market -- factory in China. If anything does happen in Saudi
:40:13. > :40:18.Arabia, it will not be for many years. But the jobs here are very
:40:18. > :40:23.safe. In fact, because of expansion aspirations, there could be even
:40:23. > :40:26.more good news for jobs going forward. Sounds good enough. But
:40:27. > :40:31.the crux of the issue is that if production in these overseas
:40:31. > :40:34.locations really is tailored to growing markets, we are stuck with
:40:34. > :40:40.the markets that are more sluggish. If they produce them more cheaply
:40:40. > :40:48.and efficiently, there is a worry. This is an enormous long-term
:40:48. > :40:51.Capital Investment Game. You're right in saying that the
:40:51. > :40:57.aluminium... They're going to build and Saudi Arabia the biggest
:40:57. > :41:01.aluminium smelter in the world. That seems a good idea. The 4th
:41:02. > :41:05.biggest market for Jaguar cars is Russia. No one is talking about
:41:05. > :41:09.building factories there. America is still an enormous market for JLR
:41:09. > :41:14.but nobody is talking about building factories there. We in the
:41:14. > :41:18.Midlands have got a fabulous global product that everyone wants to buy.
:41:18. > :41:25.You have said that eventually we are going to leave the EU, at least
:41:25. > :41:29.they are looking beyond to the a while -- the wider world. I said
:41:29. > :41:34.the EU is leaving us. It is no longer primarily with Europe, trade,
:41:34. > :41:39.it is looking the other way. But we still need reasons for people to
:41:39. > :41:46.buy from us and our competitive on frontage will continue to be new
:41:46. > :41:48.products. That is what I want -- our competitive advantage will
:41:48. > :41:49.continue. Coming up a little later, we're
:41:49. > :41:52.playing the billion-pound investment game. Christmas, so
:41:52. > :41:56.often a time for settling down over board games. It's our business
:41:56. > :42:00.leaders who're hoping the roll of the dice brings glad tidings for us
:42:00. > :42:03.all. Find out who wins in a few minutes.
:42:03. > :42:07.Before that, dairy farmers will soon be able to join forces to give
:42:07. > :42:10.themselves some extra clout in the marketplace. It follows months of
:42:10. > :42:17.angry protests which started in Staffordshire against cuts to the
:42:17. > :42:20.prices they're paid by milk processors and supermarkets. Here's
:42:20. > :42:23.Jackie Kabler. The robot milking machine at this
:42:23. > :42:27.Shropshire farm means the cows decide when they want to be milked
:42:27. > :42:30.and when they want to eat. But life has been less certain for dairy
:42:30. > :42:38.farmers. The summer saw votes for direct action against cuts in milk
:42:38. > :42:44.prices. But now a step forward. The UK currently imports more dairy
:42:44. > :42:48.produce better exports to the tune of over �1.2 billion a year. After
:42:48. > :42:51.the summer of protests, is seen to the British dairy industry could be
:42:51. > :42:55.in real trouble. With the announcements this week, it seems
:42:55. > :42:59.the government has finally got the message. Farmers will now be able
:42:59. > :43:04.to form producer groups to give them a louder voice in the industry.
:43:04. > :43:07.You have a lot of individual producers operating separately,
:43:07. > :43:11.negotiating their own contracts with the processors, the
:43:11. > :43:15.supermarkets. What this means is that they will be able to get
:43:15. > :43:18.together and have a single entity which I think is going to hugely
:43:18. > :43:20.help their competitiveness. Tuesday night again saw farmers
:43:21. > :43:27.protesting outside Muller's dairy in Droitwich, still unhappy about
:43:27. > :43:31.the prices they're getting. Unfortunately we are still in a
:43:31. > :43:35.position when we set up on this campaign to get the industry on a
:43:35. > :43:38.cost of production as a minimum figure for the milk by the
:43:38. > :43:41.beginning of the winter. Dairy UK, which represents processors such as
:43:41. > :43:44.Market Drayton based Muller, described the proposals as a
:43:44. > :43:48.constructive way forward for the industry. Producer organisations
:43:48. > :43:54.are already widespread in Europe. When set up, they'll give farmers
:43:55. > :43:58.here more clout too, but there may still be a long way to go.
:43:58. > :44:02.Jackie Kabler. And we're also joined here today by the West
:44:02. > :44:11.Midlands Liberal Democrat MEP, Phillip Bennion. He's a farmer
:44:11. > :44:16.himself and a former member of Lichfield District Council. This
:44:16. > :44:21.agreement has been hailed by Derry UK representing principally the
:44:21. > :44:25.processors as a constructive way forward. Do you agree with them?
:44:25. > :44:29.do. Considering they are representing the purchasers, I
:44:29. > :44:35.think it is positive. This measure will actually help the producers.
:44:35. > :44:40.It is very important for the producers to have the strength in
:44:40. > :44:46.numbers to be able to negotiate on an equal term with the buyers. This
:44:46. > :44:52.will give them a right to form the organisations that they need to
:44:52. > :44:57.form to be able to have that power. I understand it is modelled on a
:44:57. > :45:00.dairy farmers' co-operative on the Isle of Wight. 17 have come
:45:00. > :45:04.together to work in the dairy industry. Is that the model? What
:45:04. > :45:11.does it take to make a co-operative in your view? That is probably
:45:11. > :45:19.going to be one of the smaller ones. To really have the negotiating
:45:19. > :45:22.power, I think we need far bigger co-operatives, far bigger producer
:45:22. > :45:28.organisations. For geographical reasons, the one on the Isle of
:45:28. > :45:30.Wight would be smaller. There was a �5 million fund to exploit new
:45:30. > :45:36.markets, new technologies. What sorts of things are we talking
:45:36. > :45:42.about? I am not exactly sure. That is up to the industry. It is only a
:45:42. > :45:47.small amount of money but certainly there are dairy products...
:45:47. > :45:51.import far more than we export. The worry I suppose is that there is
:45:51. > :46:01.still in negotiation under way over the price the farmers are getting.
:46:01. > :46:01.
:46:01. > :46:08.They get something like 16p out of the 46p per upright. It is roughly
:46:08. > :46:12.a 26p up to 30p. But his for the litre. It is a small proportion
:46:12. > :46:17.considering they seem to do most of the work. This is giving them the
:46:17. > :46:24.right to move forward. The current contracts still exist. So what is
:46:24. > :46:27.going to be a few months down the line before we see the prices
:46:27. > :46:31.change. There is a European model in this. German farmers and
:46:32. > :46:36.particularly have responded in the same way after serious problems
:46:36. > :46:44.there. You may not know this, I am a Bavarian farmers daughter and I
:46:44. > :46:52.can milk a cow! We will not ask for a demonstration of! The model is
:46:52. > :46:56.the kind of co-operative and that gives them a much bigger clout. One
:46:56. > :47:01.of the problems of milk production is that the big supermarkets have
:47:01. > :47:05.imposed purchasing models which make their work and sustainable.
:47:05. > :47:11.When I saw that, I thought, great. I was just surprised it has taken
:47:11. > :47:16.so long. One of the problems is that it is a commodity and so it is
:47:16. > :47:21.all about price. It is not like making a Jaguar. There is value-
:47:22. > :47:28.added and brand. Milk is milk is not. You are exploited by the
:47:28. > :47:34.person who has the money. Coming together to give yourself something
:47:34. > :47:39.which the supermarkets need which is folly in which has got to be the
:47:39. > :47:43.right thing -- his volleying. The only worry is do you remove the
:47:43. > :47:48.competitive impetus to become more competitive? Because your market is
:47:48. > :47:54.more guaranteed, you do not need to invest or trained in people.
:47:54. > :48:00.Possibly. But you might be overplaying the worry. The cost of
:48:00. > :48:06.production contracts, they only take account of the input variables,
:48:06. > :48:10.the feed costs, the fertiliser costs, they are extremely volatile.
:48:10. > :48:16.You can see feed costs doubling and then two years it later they might
:48:16. > :48:20.be half of that. If you are in a long-term contract... Farmers are
:48:20. > :48:28.not big businesses that can write out years of losses. Not can also
:48:28. > :48:31.Bee Gees. That is value-added. do not see a situation where that
:48:32. > :48:35.factors in and do get a squeeze on the cheese price in order to cope
:48:35. > :48:38.with rising prices of milk? That makes the fact that we are
:48:38. > :48:45.importing even more bizarre. We ought to be able to produce enough
:48:45. > :48:49.in this country. I think this balance came in when you had the
:48:49. > :48:53.huge purchasers. The supermarkets took the leading role and... If you
:48:53. > :48:57.squeeze the supply chain, the farmer is not left with any profit
:48:57. > :49:03.and therefore he cannot invest in teas which is value-added and
:49:03. > :49:09.butter and yoghurt. It is a vicious circle. Because the dairy industry
:49:09. > :49:14.is very difficult to enter. Once you have lost the supply, it does
:49:14. > :49:18.not come back. We have heard fears about the dairy industry as we know
:49:18. > :49:22.it under an existential threat potentially. We have heard that but
:49:22. > :49:26.I think we have such good conditions in this country and
:49:26. > :49:31.farmers know what they're doing, we can produce a grass particularly in
:49:31. > :49:40.the west of the country with rainfall and cows on grass of the
:49:40. > :49:45.most economic for of producing -- form of producing... I do not think
:49:45. > :49:49.in the long term we will be under an existential threat. It is
:49:49. > :49:53.specifically now that we have the farmers on a level playing field.
:49:53. > :49:56.For the moment, thank you very much indeed.
:49:56. > :50:00.Could we, here in the Midlands, be about to scoop a billion-pound
:50:00. > :50:02.regeneration jackpot? Our biggest Local Enterprise Partnership
:50:02. > :50:05.covering Greater Birmingham and Solihull is increasingly hopeful
:50:05. > :50:08.that it will be chosen to pilot the regional growth strategy unveiled
:50:08. > :50:10.six weeks ago by the former Deputy Prime Minister, Lord Heseltine. Our
:50:10. > :50:20.business correspondent Peter Plisner has been following the
:50:20. > :50:26.
:50:26. > :50:29.Imagine playing a board game that requires money to buy things. But
:50:29. > :50:32.the difference here is, you haven't got any. A serious handicap if you
:50:32. > :50:37.want to invest and grow. But that's exactly the situation the Local
:50:37. > :50:39.Enterprise Partnerships have found themselves in. The LEPs have
:50:39. > :50:43.effectively taken over from the Regional Development Agencies. But
:50:43. > :50:45.unlike the RDAs, they don't have a pot of money to invest. Instead, to
:50:45. > :50:52.fulfill their remit of driving economic growth, they have to bid
:50:52. > :50:55.for money from the Government and other agencies. But that might be
:50:55. > :50:57.about to change because of this former Tory Minister. Lord
:50:57. > :51:05.Heseltine is suggesting that the Government devolves money and some
:51:05. > :51:08.powers down to the LEPs. While the idea is still in the embryonic
:51:08. > :51:14.stage, it's becoming clear that the LEP, based here at Birmingham's
:51:14. > :51:24.Baskerville House, could be about to pilot the concept. Around the
:51:24. > :51:25.
:51:25. > :51:29.city, many business leaders think the idea makes perfect sense.
:51:29. > :51:32.talking to Lord Heseltine weakly at the moment. He is revelling to come
:51:33. > :51:36.up to Birmingham as soon as the Prime Minister says yes. If there
:51:36. > :51:40.is one thing he could achieve is speeding up the availability of the
:51:40. > :51:48.money and making it work more effectively. Too often we see it
:51:48. > :51:53.being wasted or duplicated. Music to the ears of this technology firm.
:51:53. > :51:59.They have benefited from government cash but Whitehall red tent meant
:51:59. > :52:02.it took months to materialise. -- red tape. There would be less
:52:02. > :52:06.bureaucracy and the people involved in the process would be able to
:52:06. > :52:10.make informed decisions about where to place the money. They would know
:52:10. > :52:20.the businesses and how great the need is. In Wales where they have a
:52:20. > :52:24.
:52:24. > :52:27.devolved budget, they can move quickly went need is most important.
:52:27. > :52:32.But some are concerned that in the pursuit of growth and jobs, the
:52:32. > :52:40.LEPs aren't doing that much to help the unemployed. I would want
:52:40. > :52:44.funding to go to the old most needed. -- go to the most needy.
:52:44. > :52:47.The focus should go on the unemployed. Giving leading players
:52:47. > :52:50.in the regions the chance to roll the dice and decide where to invest
:52:50. > :53:00.is something successive governments have tried but failed to do in the
:53:00. > :53:02.
:53:02. > :53:06.past. Now in Birmingham it could be about to happen. You have expressed
:53:06. > :53:10.frustration at the way successive governments have done regeneration
:53:10. > :53:17.including the one in which you served. Does there seem to you like
:53:17. > :53:22.a way forward? I think it is the only act in town. Really, it is not
:53:22. > :53:26.for you and I to say that it is not good enough. This is happening. You
:53:26. > :53:30.play the hand you are dealt. In that respect, this money is up for
:53:30. > :53:34.grabs and if it is not coming here it will go somewhere else in
:53:34. > :53:39.Britain. I would rather it came to my city and I would rather it was
:53:39. > :53:42.done this way. People like me who... I really regret the Regional
:53:42. > :53:48.Development Agency is going. I thought they were excellent. You
:53:48. > :53:53.could have cut cost out of it. They did not need them in the south.
:53:53. > :53:58.They need them in the north. Why is it that... Politicians always have
:53:58. > :54:03.to do it all at one. I am optimistic that what we are offered
:54:03. > :54:06.now is right. My biggest worry today is that if you sat in the
:54:06. > :54:11.boardrooms of investors, they do not think of Birmingham and
:54:11. > :54:15.Solihull anymore than they think of Coventry and Warwickshire. They
:54:15. > :54:21.think of this as the Midlands. Any of that money going anywhere near
:54:21. > :54:27.Birmingham Airport... The engine plant in Wolverhampton, that is not
:54:27. > :54:32.in Birmingham. But is the problem. You have lamented the passing of
:54:32. > :54:36.advantage West Midlands, but these represent a targeted initiative and
:54:36. > :54:44.you can have targeted local leadership running the show. That
:54:44. > :54:49.is true. We are very lucky in the West Midlands. They will have to
:54:49. > :54:54.work together and create a city- region structure and that is the
:54:54. > :54:59.real challenge. Absolutely. missed opportunity would have not
:54:59. > :55:03.just being a City mayor, it would have been a regional mayor. What
:55:03. > :55:10.troubles me is that this money is coming out of other departments.
:55:10. > :55:13.What is happening underneath it? The structure at the moment, the
:55:13. > :55:19.future job generation will not come from the big companies, it will
:55:19. > :55:23.come from the small ones. The creative industries, employers of
:55:24. > :55:30.fewer than 10. The big structures at this stage... This is worrying
:55:30. > :55:32.because I am agreeing with you. Some months ago you told me web
:55:32. > :55:37.ruling yourself out of the Birmingham elected mayor because
:55:37. > :55:39.the Civic limits were too small. There was talk of a city region
:55:39. > :55:45.agenda of an elected chief executive. I was wondering if that
:55:45. > :55:50.was the sort of thing... That is the sort of thing that will attract
:55:50. > :55:53.far more talent, you would widen the talent pool and make it more
:55:53. > :55:59.attractive for many more people because a city region is what it is
:55:59. > :56:05.all about. If this billion pounds is the first step for getting the
:56:05. > :56:12.Black Country working with Solihull and Birmingham, then you start to
:56:12. > :56:17.give a lot of people a reason to stand for it. At the end of your
:56:17. > :56:21.peace there, the principle of Bournville College talking about
:56:21. > :56:28.giving people skills... And not enough involvement for local people.
:56:28. > :56:31.This region has a dearth of skills and a young population. You need
:56:31. > :56:36.the Small Business... And the Birmingham baccalaureate. If you
:56:36. > :56:40.can employ a couple more people and get a small business to work with a
:56:40. > :56:49.college and take on apprentices and put the money into that. You will
:56:50. > :56:53.not bound... Quick final word on this. The TUC tweeted that there
:56:53. > :56:57.were not enough worker representatives will stop there are
:56:57. > :57:02.concerns that young people do not get enough of a look into it either.
:57:03. > :57:07.It is too much dominated by the big companies. But is why something
:57:07. > :57:13.like the city council with Birmingham baccalaureate and the
:57:13. > :57:16.responsiveness of that will respond to the job needs. But it is the
:57:16. > :57:19.only show in town and we have got to make it work.
:57:19. > :57:22.Now our regular round-up of the political week in the Midlands in
:57:22. > :57:28.60 seconds including some Christmas cheer from BBC WM's Breakfast
:57:28. > :57:33.presenter Pete Morgan. Moving out. The final patients have
:57:33. > :57:43.left the old North Staffordshire Royal Infirmary. All beds are now
:57:43. > :57:48.
:57:48. > :57:57.Ready for Christmas? Me neither. But the parliament choir is, led by
:57:57. > :58:00.a Midlands MP. Things like singing in the choir, you can cross the
:58:00. > :58:06.barriers between the parties so that you make friends with people
:58:07. > :58:09.even if you do not agree on policies. 250 staff have been laid
:58:09. > :58:12.off after Tamworth firm Drive Assist went into administration.
:58:12. > :58:22.Unions met the Government to try and keep manufacturing of the world
:58:22. > :58:25.
:58:25. > :58:27.famous black cab in Coventry. We would not be able to recruit the
:58:28. > :58:30.staff. And a public meeting heard how Stafford Hospital faces being
:58:30. > :58:34.broken up because it's effectively bankrupt.
:58:34. > :58:41.In spite of a �20 million bail out, Stafford Hospital will still be �10
:58:41. > :58:45.million in the red, even after another round of savings. Let us
:58:45. > :58:50.talk to the former Health Minister about this. What is the way around
:58:50. > :59:00.it? Is at a federation of hospitals? A share things between
:59:00. > :59:00.
:59:00. > :59:04.Volvo -- Wolverhampton... You have had problems of quality of care, it
:59:04. > :59:08.is not just money. I do not think money on its own will solve it. I
:59:08. > :59:13.am not sure whether the new commissioning system will respond
:59:13. > :59:17.to it. I am quite gloomy. But in a sense it is the local people who
:59:17. > :59:21.will have to make the decision as to where the priorities are. We are
:59:21. > :59:29.short of time but his Deraa business model which can crack this
:59:29. > :59:34.problem we have with hospitals? -- is there a business model? There is
:59:34. > :59:38.nothing about money in this. This is about a systemic issues. This is
:59:38. > :59:42.about the product, the system and secondly, management. The business
:59:42. > :59:47.model to lookout has to be management. So often you get good
:59:47. > :59:52.and bad businesses with the same amount of money in the same market
:59:52. > :59:56.and one succeeds and one doesn't. It is the quality of the management.
:59:56. > :00:01.You should look at what they do and where they do it. The money comes
:00:02. > :00:08.after that. This I regret to say it is where we have to leave it in the