HC Deb 16 November 1967 vol 754 cc621-2
16. Mr. Willey

asked the Secretary of State for Economic Affairs what action he is taking pursuant to the visit of the Chancellor of the Duchy of Lancaster to Sunderland.

Mr. Frederick Lee

We are pursuing the matters raised during my visit with the Departments concerned.

Mr. Willey

Have the Government made any progress in one of the matters which he raised—the possibility of the Government placing direct orders for merchant shipping?

Mr. Lee

I cannot give a report to the House about that issue. The matters which I discussed in Sunderland will depend largely on the speed with which we can get the shipping firms themselves to act together on these matters, and obviously I am unable to report about that at this stage.

Mr. Bagier

Is it not obvious that the private sector in industry has failed to react in any quantity to the many financial inducements placed before it to move into the area? Does not this make out a case that the Government should use far more its sanction of Government purchasing power?

Mr. Lee

I hope that my hon. Friend heard my last Answer on this subject. It is far too soon to say that private industry has not accepted the added inducements of the last few weeks. As I have said, we shall do everything we can about procurement policy, and the nationalised industries are co-operating.

Mr. Patrick Jenkin

Have not the Government yet hoisted it on board that the effect of the inducements which they have introduced is substantially less than that of the inducements which they have replaced, and that, in particular, the loss of free depreciation in the development districts is a substantial loss which the Government have done nothing to make up?

Mr. Lee

That last inducement was not introduced until the winter of 1963. As a matter of fact, the Conservative Government gave no inducements. They deliberately ran down the development areas.