HC Deb 23 October 1968 vol 770 cc1286-7
58. Dr. John Dunwoody

asked the President of the Board of Trade if he will give the criteria by which special development areas are designated.

Mr. Dell

The areas selected are in general those where, in the absence of special measures, colliery closures are likely to cause very high and persistent unemployment.

Dr. Dunwoody

Would my hon. Friend not agree that a precedent has been created in the last few weeks in that for the first time a non-coal mining area has been designated as a special development area? Can he assure the House that in future other non-coal mining areas will be considered on their merits for special development area status?

Mr. Dell

I think that my hon. Friend is referring to the case of Millom, which was regarded as a special case because of the very high unemployment expected to result there from the closure of the Millom Hematite Company. Of course, the Government would examine other cases on their merits. Nevertheless, the main intention in creating special development areas was to deal with problems of colliery closures in areas where other employment opportunities were lacking.

Mr. Patrick Jenkin

Is not Millom a case in point which shows the folly of the Government's policy? Here was a private enterprise firm which could have been kept going if the Government had been prepared to assist. Is it not true that the Government refused to help the firm?

Mr. Dell

In the case of Millom the Government acted on the advice of the Board of Trade Advisory Committee. If the hon. Gentleman is saying that the Government should invest money in these cases irrespective of the likely outcome for public money of that investment, all I can say is that the Government do not agree with him. If the Government are to place money in private enterprises they must have a prospect of viability.

Mr. Barnett

In view of the current more favourable prospects for machine tool investment, will my hon. Friend confirm that it is the Government's intention to reduce the investment grants for development areas on 1st January from 45 per cent, to 40 per cent.?

Mr. Dell

As my right hon. Friend the President of the Board announced in July, it is the intention of the Government to revert to the previous rates for investment grants on 1st January, 1969. That is 20 per cent, outside development areas and 40 per cent, inside.

Mr. George Jeger

In view of the criteria laid down in the original reply, will my hon. Friend get the Department to look again at Thorne in my constituency, where a coal mine has been closed and the unemployment percentage is now over 11 per cent.?

Mr. Dell

My hon. Friend informs me that the Department has already looked at this case. I am prepared to look at any case again, but if it has already been rejected I cannot hold out any great hope to him.