§ 45. Mr. Shortasked the Prime Minister how many new factories are likely to be established in the North-East as a result of Government plans made in the light of evidence submitted to him during his recent visit to the area.
§ The Prime Minister (Mr. Harold Macmillan)My visit was not intended to make specific proposals but to inform myself. I should add that twenty-nine extensions to Government factories in the North-East Development Area have been authorised in the last few weeks and one 1349 further case is still under consideration. There is also a considerable amount of privately-financed industrial building going on, and further work is expected lo start soon.
§ Mr. ShortIs the Prime Minister aware that there has been a considerable deterioration of the situation since he visited the North-East? Is he aware that in the four towns he visited, Newcastle has 2,600 unemployed, Middlesbrough more than 3,000, Sunderland 2,200 and even Stockton, his old Parliamentary seat, 1,500? Further, is he aware that there are 50,000 people unemployed in the North-East now and that this is a matter of some importance? Is he aware that 4.3 per cent. of our men are unemployed, and does not he feel that these steps that the Government have taken to meet the situation are totally inadequate? Why does not the Prime Minister use the information he got when lie was in the North-East to take action to alleviate the situation?
§ The Prime MinisterIn addition to the twenty-nine extensions to which I have referred and which will provide work for 2,700 people, 74 privately-financed industrial buildings, totalling 4.7 million sq. ft., are under construction, which will create approximately 1,800 additional jobs. In addition, two large schemes, the South Durham scheme and the Vickers-Armstrongs (Shipbuilders) Ltd. scheme, are under construction, with about 3,000 jobs likely. Also, 53 private schemes, to employ an additional 2,000, have been given location approval but construction has not yet started.
§ Mr. P. WilliamsDoes not my right hon. Friend agree that the most important thing both for the North-East and the whole country is that international trade should recover to the extent that basic major industries can recover, and therefore that the first priority should be existing industries rather than the encouragement of new industries?
§ The Prime MinisterThat is why we are doing all we can, both by international methods and the extension of our export credits, to improve international trade.
§ Mr. ShinwellWhile we on this side of the House and everybody concerned welcome any steps taken by the Government 1350 to alleviate the position, does not the Prime Minister understand that what has already been suggested touches only the fringe of the problem and that a great deal could be done by the provision of finance for constructing hospitals and schools and reconstructing the roadways in the North-East? Could not something more be done in that direction in order to mitigate the harsh evils of unemployment?
§ The Prime MinisterSince about July last year continual increases have been made in the public sector of expenditure. When we come to discuss what is proposed for public expenditure for next year, the right hon. Gentleman should be satisfied that that, too, will have very substantial increases.