HC Deb 27 July 1961 vol 645 cc592-4
29. Mr. Gresham Cooke

asked the President of the Board of Trade whether, in view of the urgency of increasing exports and of providing inducements to industrialists to re-equip and reorganise their factories to this end where necessary, he will now arrange to reduce the difficulties which are imposed by his Department on various firms with a large export potential which have plans for rebuilding and modernising their factories on new sites.

Mr. Maudling

Applications for industrial development certificates from firms wishing to modernise and re-equip their factories without additional labour requirements are considered sympathetically, as the statistics indicate. But I must also have regard to the consequential effects on the labour position in the district if rebuilding on a new site leaves the former building available for additional production.

Mr. Gresham Cooke

Is my right hon. Friend aware that several cases have been brought to my notice of bad results coming from his inflexible policy over these I.D.Cs.? Is he aware that The Times had an article stating that investment could be distorted, and that there is a real risk that if a company does not get a new factory in the area of its choice it may go abroad?

Mr. Maudling

I agree that there is a risk, but it must be faced. I do not accept the view of The Times on this point. It seems to me to be a good thing both economically and socially to try to guide industrial developments into areas where people are available for employment, rather than increasing the shortage of labour in other districts.

Mr. Lawson

Is the Minister aware that he will have very strong support from hon. Members on this side of the House—and I am sure from many of his hon. Friends—if he sees to it that those parts of the country that most need development are given development? We are very much behind him in his efforts to see that this process of getting more and more industry into the south does not continue.

Mr. Maudling

I propose to follow policies that best serve the economic as well as the social structure of the country.

Mr. Hirst

Is my right hon. Friend aware that his approach to this subject in this context is a little academic, and that we must be prepared to back success if we are to get our export trade really going?

Mr. Maudling

I agree about backing success, but it is not necessarily wise to let people extend industry in areas of labour shortage. They might get the people they wanted, but they might take away people from other firms also engaged in export trade.

Sir Harmar Nicholls

Will my right hon. Friend look again at the question of helping exports not only by removing difficulties at home but by giving tax concessions to that part of industry which engages in export?

Mr. Maudling

I feel that that question is not for me.