North Public Sector Is Not Too Large

The Journal (Newcastle, England), September 20, 2010 | Go to article overview

North Public Sector Is Not Too Large


Byline: KEVIN ROWAN

NISSAN is to be among the beneficiaries to receive cash from the public sector with a share of pounds 52m of green technology funding to develop hybrid engines.

The public sector has a key role in moving the UK toward a low carbon future. It is now commonly accepted public funding should be used as a way of de-risking private investment in new areas of development and in forging larger scale private sector growth opportunities.

The coalition has been very clear: it seeks to change the balance between public sector and private sector roles in the economy more heavily toward the latter. There is a compelling argument in favour of growing the private sector economy here. The industrial dislocation that occurred from the 1960s to the 1990s has left the North East with a relatively weak economic base and renewing and replenishing employment is critical to the region's success.

We need, however, to do this without following the tired mantra that the public sector is awful and the private sector is brilliant - neither statement is true. That the region enjoys the benefit of a good number of decent quality, public sector jobs is to be welcomed, not condemned. …

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