HC Deb 23 May 1968 vol 765 cc844-5
5. Mr. Fletcher-Cooke

asked the Secretary of State for Economic Affairs what information he has about the effect of present Government policies on the expansion of existing industries in the North-West of England outside development areas; and if he will make a statement.

Mr. Shore

Given the extremely liberal and flexible I.D.C. policy being pursued there a substantial expansion of existing industry is continuing. The longer-term problems of the area are being examined by the Hunt Committee.

Mr. Fletcher-Cooke

Is the right hon. Gentleman aware that this area neighbours two development areas which are liable to draw any possible expansion from this area? Will he at least make sure that the advertisements which have so troubled Yorkshire and Humberside will not also trouble North-East Lancashire, which is in much the same position?

Mr. Shore

I am sure that the needs and particular problems of North-East Lancashire are known to the development councils. I am glad to say that there is considerable evidence of an increase in the number of I.D.C.s approved last year and the beginning of this year.

Mr. Selwyn Lloyd

Will the right hon. Gentleman consider giving the House more information about the number of cases where firms have either left the area for development areas or have shut down altogether?

Mr. Shore

I have been attempting to get information on this point, which I know is of great concern. Concerning the North-West Region, outside the greater Manchester area we have evidence of only four firms which have moved from the non-development area to the development area. Obviously we will be watching this trend.

Mr. Ronald Atkins

Is my right hon. Friend aware that in the textile industry the new textile factories which would normally have been built in the non-development cotton areas are being set up in development areas outside the region?

Mr. Shore

I am aware of one very important example of this trend, but I have not had evidence that this is a significant development.

Mr. Patrick Jenkin

The Minister mentions "this trend". Is this trend not likely to be severely accentuated by the withdrawal of the S.E.T. refund and by the 50 per cent. increase? Does not this accentuate the differences between these grey areas and the development areas?

Mr. Shore

It is self-evident that any increase in inducements on behalf of the development areas discriminates against other parts of the country. During the last year we have set up a Committee to examine intermediate areas and to report on their problems. I think it is a pity that this was not done several years earlier.