HC Deb 28 April 1960 vol 622 cc365-6
12. Miss Herbison

asked the President of the Board of Trade what stage the extension of Cummins Diesel Engine Company's factory, Shotts, has reached.

Mr. Maudling

Missives have been exchanged for the acquisition by the Board of Trade of the necessary land. Detailed plans are still under discussion between the Cummins Engine Co. and the Industrial Estates Management Corporation for Scotland.

Miss Herbison

Is the right hon. Gentleman aware that it was in November, 1958, that this firm first applied for land for extension? Does he not realise that there has been undue delay? What promise can he give us that very soon the people of this stricken area will see another industrial building going up?

Mr. Maudling

I understand that "missives have been exchanged" is the Scottish equivalent of a signature of contract, so that the Board of Trade has signed a contract for the acquisition of land. I agree that there have been delays, but there have been reasons for them, and I think that the scheme will now go ahead.

13. Miss Herbison

asked the President of the Board of Trade when a decision will be given on financial assistance to the hosiery firm which proposes setting up business in Shotts.

Mr. Maudling

I hope that the Board of Trade Advisory Committee will be in a position to consider this application for assistance at its meeting next month

Miss Herbison

Is the right hon. Gentleman aware that for years Tory Presidents of the Board of Trade have been telling me that they appreciate the very great needs of this area? Is he aware that this is a firm which, because of its associations with the area, was desperately keen to get to it? Is he not afraid that the long delay might put this firm off?

Mr. Maudling

I do not think that the delay has been any fault of ours. The firm made its preliminary inquiry on 25th July last. On 5th August, it was asked to fill in the normal questionnaire which it returned to the Committee on 2nd December. Information for the accountant's investigations was not received from the firm until 26th March. I think that we can go ahead now, but the Board of Trade cannot accept blame for the delay in this case.

Mr. C. Osborne

As practically all Scottish hosiery firms are extremely prosperous and extremely well off, why should this firm require public assistance? How much does it want? How many people will it employ? What sort of production will it indulge in? Why does it want public money when the industry is in such a prosperous state?

Mr. Maudling

No doubt those are matters which the Committee will consider, but the principle of the Local Employment Act is that the provision of assistance to firms which will go to these areas is not confined to companies in a needy or impoverished state. The principle of the Act is that if people go not to areas of their own choice but to areas of substantial unemployment, they are entitled to some State assistance in the process.

Mr. Jay

Will the right hon. Gentleman make it clear to his hon. Friend the Member for Louth (Mr. C. Osborne), who seems to be ill-informed, that this assistance will be by way of loan, which will be an investment from the Government point of view and not an outright grant of public money?

Mr. Maudling

I cannot anticipate what form the assistance will take until I get the recommendations of the Committee.

Miss Herbison

Will the right hon. Gentleman inform his hon. Friend, who is extremely ignorant about this matter, that this is a small firm and that two brothers have shown very great initiative and any help that can possibly be given to them will be serving a very useful purpose?

Mr. Maudling

I do not want to enter a discussion about the affairs of a particular firm. I think that my hon. Friend can take care of himself. He usually does so very well.