Keynote address at the launch of the Regional Economic Framework

The North West has also been a significant structural shift in employment away from manufacturing towards services - diversifying from its traditional strengths in the textiles, shipping and engineering to develop and benefit from modern, hi-tech sectors including digital & creative, biotechnology, chemicals, pharmaceuticals, aerospace, telecommunications and financial & business services.

This shift means the region’s economy is very different in structure than when it faced the economic downturn of the early 1990s.

 The Northwest’s share of England’s output (in terms of Gross Added Value) is only behind that of London and the South East – and in excess of 247,000 businesses are based within the five sub regions of Cheshire, Cumbria, Greater Manchester, Greater Merseyside and Lancashire.

As Minister for the North West I don`t underestimate the impact of changing economic circumstances. Challenges and difficulties for businesses and the people that work for them. But both the NWDA and I pick up messages from the business community that we must avoid talking down the region.

So I think we need to get the balance right between short term challenges and work in partnership to ensure medium to long term prospects for the region are positive.

I am confident that businesses that are innovative and invest in the skills of their people will continue to have a bright future. That is why I will be working with the business community to make sure they have the skills to meet the challenges in the global economy. And to make sure that vulnerable communities are given the support that they need.

 There is no magic formula to remaining competitive and profitable through difficult times. But I believe businesses that innovate, adopt best practice and see a highly skilled workforce as a priority hold the key to our future prosperity.

I think that is enough from me to help set the scene for the seminar this morning. We look forward to discussing the key issues with you and doing our best to answer any questions you may have.