Lib Dems call for regional investment fund to support North East businesses (Greg Stone)

Lib Dems call for regional investment fund to support North East businesses

November 23, 2009 1:28 PM

Lib Dem parliamentary spokesman for Newcastle East Greg Stone has welcomed Lib Dem leader Nick Clegg's call for new investment in infrastructure and in regional businesses as the best way to get Britain out of recession.

Speaking at the CBI conference, the Lib Dem leader called for reforms to the banking sector and a fairer tax system, along with a credible deficit reduction plan.

He suggested that public investment in major banks should mean that the Government used its shareholding to require banks to provide greater access to funding for small businesses, and proposed the establishment of a National Infrastructure Bank to lever private funding to support vital capital spending projects which will contribute to economic recovery, including investment in transport and renewable energy.

The Lib Dems will also support the Lambert Report's recommendation for the reintroduction of an investment fund comparable to the former Industrial and Commercial Finance Corporation, a public-private partnership that provided equity and debt backing to small and medium-sized businesses through a network of regional offices with strong local and sector knowledge.

Vince Cable will prepare plans to re-establish an ICFC-like investment fund to provide venture capital, including from private investors, potentially working in concert with a new network of regional stock exchanges offering a route for regional businesses to move into public equity.

Greg Stone said "There is an urgent need for investment in infrastructure and in providing equity for business growth. I very much welcome these proposals and believe they offer tremendous opportunities for growing the North East's economy out of recession. Regional business can only prosper with infrastructure fit for the 21st century and greater access to borrowing"