§ Q2. Mr. William Hamiltonasked the Prime Minister what prospects there are for the early establishment of publicly-owned industries in development areas.
§ The Prime MinisterI would refer my hon. Friend to the Answer I gave on 24th October to a similar Question by him.—[Vol. 751, c. 450–1.]
§ Mr. HamiltonIs my right hon. Friend aware that, since there is no immediate prospect of getting these publicly-owned industries, he should consider channelling public contracts to the advance factories which have been lying idle in these areas for six months or more?
§ The Prime MinisterMy hon. Friend will be aware of the Government's announcement about the aluminium smelter project. In regard to new industries based on scientific and technological research, whether public or private, it obviously takes time to set them up after the laboratory successes which have made 636 them possible. My hon. Friend is absolutely right about contracts. We are pursuing this question of public procurement with great energy, not least procurement by nationalised industries.
§ Q3. Mr. William Hamiltonasked the Prime Minister whether, as a means of immediately alleviating the unemployment problem over the next 12 months, he will take steps to initiate a public works programme in development areas, for the clearance of derelict sites.
§ The Prime MinisterMy hon. Friend will know of the successive steps the Government have taken to assist the development areas, including the emergency programme of stepping up public works as a means of reducing unemployment this winter. As to derelict land, my right hon. Friends the Minister of Housing and Local Government and the Secretaries of State for Scotland and Wales have pressed local authorities in the development areas to reclaim or improve such land wherever treatment is justified; and grants of up to 85 per cent. of the cost are normally available to assist them in this task. In certain circumstances the effective rate of grant could be as high as 95 per cent.
§ Mr. HamiltonI thank my right hon. Friend for that reply. Will he consider as a temporary measure—at least in the winter months or for the ensuing 12 months—increasing the grant to 100 per cent. to encourage local authorities to get on immediately with the work?
§ The Prime MinisterMy hon. Friend will be aware that, in terms of providing employment, site clearance, however desirable on other grounds, is not the best way, in relation to the cost, of finding additional jobs. What we have done in connection with mini-works—docks, transport, hospitals, health services and Ministry of Public Building and Works' Building—is related to immediate extra employment this winter. This is more relevant than pursuing site clearance as a winter relief project.
Mr. Edward M. TaylorIs the Prime Minister aware that there are now 13,000 unemployed building workers in Scotland? As three years ago the right hon. Gentleman promised to tackle this problem like a military campaign, is it not time he gave them some work to do?
§ The Prime MinisterI am also aware of the big increase in housing in Scotland. With the new turn in the economy and the fall in the seasonally corrected unemployment rate for the third month running in Scotland, we are right to look forward to increased factory building in Scotland, not least when one considers the number of I.D.C.s offered there. As for unemployment, the House will be glad to know that, for Scotland, the figures today are lower than they were in January, 1964, and lower than they were in the two last Novembers when the party opposite was in power.
§ Mr. Arthur DavidsonWould not my right hon. Friend agree that the problem of derelict sites is at least as severe in non-development areas such as Lancashire? Would he also consider giving the 85 per cent. grant to such areas so that they can get rid of these longstanding eyesores?
§ The Prime MinisterFrom the point of view of amenities, these sites are a problem wherever they may occur—development area or not. In many cases the proposal is for landscaping rather than removal. In development areas, they ought in a number of cases to be removed for the additional purpose of providing further factory space.