HC Deb 12 June 1956 vol 554 cc218-9
11. Mr. Jay

asked the President of the Board of Trade at what date the Government decided to defer consideration of all proposals for the provision of new Government-financed factories in Development Areas.

Mr. P. Thorneycroft

No decision to defer all these cases has been made. As indicated, however, by my hon. and learned Friend the Parliamentary Secretary in a reply to the right hon. Member for Huyton (Mr. H. Wilson) on 5th June, the Government have over the past few months been considering their policy with regard to the rate of expenditure on factory building under the Distribution of Industry Act and have arrived at the conclusions which my hon. and learned Friend stated.

Mr. Jay

Can the President tell us when they arrived at that conclusion, and why they did not announce it to the House? Can he really assure us that in the case of important new schemes for public investment in new factories in areas which really require new industries he is not going to veto it just to show a financial saving?

Mr. Thorneycroft

The Government announced their policy properly through my hon. and learned Friend the Parliamentary Secretary on 5th June. If economies are to be made, as I believe they must be, then that means some adaptation in policy in order to achieve those economies.

Mr. Jay

Does the right hon. Gentleman really say that it is an economy to refrain from building a new factory for some important industry in an area that needs it?

Mr. Thorneycroft

In the Board of Trade the principal expenditure is in the form of materials for all types of building. If economies are to be made, alterations or adaptations of policy must also be made, and I make no apology for economising in Board of Trade expenditure.