HC Deb 17 October 1968 vol 770 cc570-2
31. Mr. Leadbitter

asked the Secretary of State for Economic Affairs what proposals he now has to reduce the levels of unemployment in the Northern Region and to phase redundancies in the traditional basic industries, and in the mining industry in particular, with the introduction of new labour-intensive industries.

The Chancellor of the Duchy of Lancaster (Mr. Frederick Lee)

We have introduced a wide range of measures designed to encourage the build-up of new jobs to replace those lost in the older industries, particularly in coalmining. One of these measures, the Regional Employment Premium, is expressly intended to encourage the setting up or expansion of labour-intensive industry.

Mr. Leadbitter

Will my right hon. Friend bear in mind that, while we in the Northern Region are very grateful for the amount of work that has been done in order to deal with the serious problem of unemployment, the proportion of national public investment in the region is considerably less than that required by the proportion of national population in the region? Will he remember that the amount of research done in the region is considerably less than elsewhere, and will he consider discussing with his right hon. Friends these areas where we might have some more sympathetic treatment as compared with other regions?

Mr. Lee

My hon. Friend's figures are rather dated now. He will be glad to know that there has been a very big increase both in public expenditure and in the amount of I.D.C.s now going into the Northern Region. I think that soon we will have other regions jealous of the Northern Region. It is significant to note that approvals for new factory space in the Northern Region have already exceeded the figure for the whole of 1967, by close on three million square feet.

Dame Irene Ward

Will the Minister say whether he has seen the report submitted by the Director to the North-East Development Council recently showing that a great deal more should be done to encourage new industries into our area? Is he taking any extra action as a result of that statement, with which I am in complete accord?

Mr. Lee

I doubt whether the problem is that we are not bringing new industry in. I agree with the Director; we would like more, but the problem is the pace of the rundown of the coal industry. As I pointed out, the figures for the first eight months of this year are very encouraging in comparison with any other area.