HC Deb 06 February 1962 vol 653 cc208-9
11. Mr. Watkins

asked the Chancellor of the Exchequer what assurances he has had from the Board of Trade that it will give publicity, in its literature to industrialists, to the fact that financial assistance is available from the Development Commission in his Department, so as to encourage the provision of industries in rural areas, and particularly Mid-Wales, as promised on 4th July, 1961.

The Financial Secretary to the Treasury (Sir Edward Boyle)

I am assured by my right hon. Friend that the Board of Trade brings the possibility of obtaining assistance from the Development Fund to the notice of any industrialist who is prepared to set up in business in Mid-Wales once it is satisfied that he cannot go to a development district. In Mid-Wales during the last four years two factories have been built and the building of four more has been approved during the past year.

Mr. Watkins

I do not accept all of that Answer. May I point out to the Chancellor of the Exchequer and to the Financial Secretary that there has been much publicity of the fact that the Development Commissioners last week refused a grant of £350,000 for a factory in Mid-Wales? What is the reply of the hon. Gentleman to that?

Sir E. Boyle

I thought that the hon. Gentleman might raise that matter. My answer is that under the 1909 Act the Treasury has no power to override the Development Commissioners.

Mr. Callaghan

If that is the case, can the Financial Secretary tell us why the Mid-Wales Industrial Association, which sponsored this application, was not given the reason for its refusal? Does not it make a mockery of the Government's plans if a firm situated in Birmingham which wishes to move out of an overcrowded area into an area which the Government say that they want to help is refused a grant to assist in that aim?

Sir E. Boyle

I do not agree with the last part of the hon. Gentleman's supplementary question. In answer to the first part, it has not been the habit of the Development Commissioners to give reasons for refusing applications. That has been the consistent practice ever since the 1909 Act was put on the Statute Book.

Mr. J. Griffiths

Will the hon. Gentleman and the Chancellor of the Exchequer reconsider this matter? Does not the hon. Gentleman know that this area in Mid-Wales has been losing young people and still continues to do so? Here is a firm which is ready to establish a new factory in the area and to bring new hope to it, but it is prevented from doing so because no assistance is to be given to it. Does not the hon. Gentleman realise that there is very strong feeling about this in Wales? Will the Chancellor of the Exchequer reconsider the matter immediately?

Sir E. Boyle

As I have explained, the Treasury has no power to override the decisions of the Development Commissioners. However, the right hon. Gentleman has done a service by drawing attention to the fact that the problem of Mid-Wales is essentially one, not of unemployment, but of depopulation. I assure the right hon. Gentleman and the House that that matter is much in our minds.