Bank bail out makes A1 dualling look cheap

THE cost of dualling the A1 would be “small change” for ministers who have spent a staggering £500bn propping up failing banks, a senior Tory has declared.

Lord Michael Bates, deputy party chairman with responsibility for the Tories’ Campaign North, said infrastructure investments were vital to boosting the North East economy.

“The dualling of the A1 north of Newcastle to Berwick and the upgrading of the Western by-pass would amount to just £650m. You could have all that done, and when you are throwing around £500bn, that seems like small change.

“If the Government could slip that in along with the other invoices, I am sure that the North East would be very grateful,” said the peer, who is involved in three small regional businesses.

His comments come after Tory leader David Cameron earlier this year said major improvements to the Western by-pass were likely to be among key transport schemes that could be “green-lighted” if he becomes Prime Minister.

Speaking in the Lords, Lord Bates also called for action to help small North East firms, with 365 going out of business so far this year amid rising unemployment.

“There are two suggestions that would really benefit small businesses. First, there is the idea of the VAT holiday for two quarters – six months.

“That is practical credit that, for a small business, might mean an extra £50,000 or £100,000 of credit coming at a time when it really needs it.

“Secondly, there is the idea of a review of the insolvency law to see whether there is scope for some British equivalent of chapter 11 that one might have in the North East, so that good businesses are not unnecessarily forced to the wall.”

And Lord Bates urged ministers to locate one of the Government’s planned enterprise academies in the region. Anne-Marie Trevelyan, founder of the cross-border A1 campaign group, said the Government should show “faith” in the region by investing in its infrastructure.

“It is small change in the bigger scheme of things.

“It is about getting a political commitment that the North East is an area of the country that needs more investment to be able to compete on a level playing field economically with the rest of the nation.

“We are improving a lot and we have superb businesses, but we are still behind,” added Mrs Trevelyan, who is the Tory Parliamentary candidate for Berwick.

Ross Smith, head of policy at the North East Chamber of Commerce, said: “In terms of transport infrastructure, there is no doubt that the Western Bypass would be a major project. There are schemes ready to go ahead on the A19 and A1 in Northumberland, which could be progressed quickly and would fit in quickly with a strategy that prioritises good north-south links through the North East. And we would certainly support accelerating those upgrades.”

He welcomed Lord Bates’ comments on helping business, but added it was important the public sector played its part by buying goods and services and being prompt in payments.”