HC Deb 20 December 1962 vol 669 cc1421-2
10. Mr. Wise

asked the President of the Board of Trade whether it remains the policy of Her Majesty's Government that trading arrangements can be made with the Commonwealth equal or superior to those which might be made by adherence to the Treaty of Rome.

Mr. Erroll

It remains the Government's policy to make every effort to bring our negotiations with the European Economic Community to a successful conclusion.

Mr. Wise

Will my right hon. Friend bear in mind, and, if possible, now publicly endorse, the word of one of his predecessors in office not so very long ago, who, when speaking for the Government, said: The example of the Common Market in Europe has prompted us to re-examine our"—

Mr. Speaker

Order. A verbatim quotation is out of order in a Question.

28. Mr. G. M. Thomson

asked the President of the Board of Trade what action he is taking to persuade firms from the countries of the European Economic Community to set up factories in areas scheduled under the Local Employment Act.

Mr. Erroll

As a first step I have sent personally to leading industrial firms in Western Germany a booklet in German describing the desirability of manufacturing in Britain and stressing the special advantages of development districts. Other copies have been distributed by the Embassy and Consulates.

Mr. Thomson

Is the right hon. Gentleman aware that when local authorities in development districts try to attract foreign firms to their areas they are told that the firms are waiting for a decision on British entry into the European Economic Community? Unless the Government tackle safeguards on a European scale in order to ensure proper distribution, new industry, if Britain goes into the Common Market, will be concentrated not in the development districts but in the golden triangle between the English Midlands, Paris and the Ruhr.

Mr. Erroll

There is nothing incompatible between the Local Employment Act and the Treaty of Rome. We will be able to continue to operate the Act as at present whether we are in the Common Market or not. If we join the Common Market I believe that we shall be able to encourage a considerable expansion of industry in many parts of Britain.

Mr. Wise

What prospect will my right hon. Friend have of attracting any such firms into development districts when our very modest protective duties have been removed?

Mr. Erroll

Development districts will be attractive by reason of financial and other inducements that I am empowered under the Act to give to them.

Mr. Marsh

Is the right hon. Gentleman aware that it is impossible to encourage any firms to come to this country, or to promote any major industrial development here, until the outcome of the negotiations is known? Is it not essential that they should be either speeded up or ended?

Mr. Erroll

The negotiations are proceeding as quickly as practicable. Some foreign firms are currently interested in development in this country without waiting for a Common Market decision.