O’Neill handed Powerhouse role in government
CHANCELLOR George Osborne has appointed star economist Jim O’Neill to a new role in government to lead the Northern Powerhouse initiative.
The Manchester-born O’Neill, was named Commercial Secretary to the Treasury during a visit to the city by the Chancellor, where he pledged more powers for cities to receive devolved powers like Manchester has already.
The Chancellor said of O’Neill: “He’s one of the world’s top economists. And he’s the man who invented the term ‘the BRICs’ and changed the way everyone viewed emerging economies.
“I’m very pleased to announce that the Prime Minister has appointed him to my department as the Commercial Secretary to the Treasury – right in the heart of government, in the department that historically fought tooth and nail to stop giving up power, we have a brilliant new Minister to help make devolution and the Northern Powerhouse happen.
“And he’ll work to deliver the big infrastructure investments and links to emerging economies our country needs.”
Born in Heaton Mersey and an avid Manchester United fan, On’ell was a former top economist with Goldman Sachs, and currently chairs the City Growth Commission.
Mr Osborne, speaking in Trafford Park, said of the Northern Powerhouse:”Within 40 miles of Manchester, you have Leeds, Sheffield and Liverpool, Lancashire, Cheshire and Yorkshire – a belt of cities and towns that contains ten million people – more than Tokyo, New York or London.
“Bring those cities together, connect Liverpool to Hull, the North West to Yorkshire and the North East – and the whole will be greater than the parts.”
He said there had been “huge cynicism in many quarters” about what could be achieved when the policy was unveiled less than a year ago, but “more progress than I dared hope possible” had been made.
“We’ve created with your help Transport for the North and started to develop detailed plans for high-speed rail east-west across the north.
“We are making record investment in transport which will see the key roads upgraded, and the north’s railways improved with new trains and electrification, ” he said.
Chris Fletcher, director of policy at Greater Manchester Chamber of Commerce, welcomed the Chancellor’s speech: “The appointment of Jim O’Neill to the Treasury team sends a very clear message that the Government means business and will put its money where its mouth is.
“While there is still more to be done about explaining the details of what is on offer, local businesses have outlined their support for devolution and the role of an elected mayor for Greater Manchester. They are keen to see the benefits of greater local control and devolved powers delivered on the ground and it is obvious that this issue will be a priority for this government.”
Chris Hallam, infrastructure partner at Pinsent Masons in Manchester, welcomed Jim O’Neill’s appointment as a significant step, but questioned on how major infrastructure investments, msot notably HS3, would be funded.
He said: “Jim O’Neill’s appointment as the Commercial Secretary to the Treasury is encouraging news in terms of long-term infrastructure strategy and planning for devolution and the Northern Powerhouse.”
On the question of funding, he added: “Longer term international finance conditions – including potential Chinese investment – would seem to offer good opportunities, but our policymakers need some innovative thinking in order to attract that cash to the North.”
Mike O’Connor, partner at Addleshaw Goddard in Manchester said: “The Chancellor’s announcement is another welcome statement about the Government’s intent to give Northern Cities the ability to make their own decisions about matters which have a direct bearing on their own citizens.
“The focus on the Northern Powerhouse and in particular the emphasis on encouraging investment in new methods of transport across the North (rather than just from the North to London) will allow the Northern cities to become more effective at generating economic growth in the region.”
