HC Deb 13 October 1969 vol 788 cc42-4

1. The main changes in the Machinery of Government, announced by the Prime Minister today, are as follows:—

  1. (i) The Ministry of Technology will take over the responsibilities of the Ministry of Power, and will become a single Department under the Minister of Technology.
  2. (ii) The exanded Ministry of Technology will assume responsibility for certain additional functions in relation to industry which were previously in the Board of Trade and the Department of Economic Affairs.
  3. (iii) The work of the Board of Trade will be concentrated upon exports and overseas trade, and trade and commerce in the United Kingdom.
  4. (iv) A Secretary of State for Local Government and Regional Planning is appointed.
  5. (v) The allocation of the functions of the Department of Economic Affairs is as set out in detail below.

TECHNOLOGY, INDUSTRY AND TRADE 2. The Ministry of Technology becomes the Government Department with the main responsibility for industry both in the public and private sectors. 3. The merger with the Ministry of Power will bring together in one Department responsibility for all primary fuels and plant industries for electricity generation, together with other power and energy supply and plant industries. 4. The expanded Department will also be concerned with the structure of industry and with industrial productivity. It will therefore assume responsibility for the Industrial Reorganisation Corporation. 5. The industries concerned with mineral development in both the public and the private sectors (except those which are closely linked with the construction industry) will also be brought together under the Ministry of Technology. The Ministry will thus have the main responsibility for all general questions relating to mineral development. 6. The Ministry of Technology will assume the Department of Economic Affairs' responsibilities in the field of regional economic development and also the related distribution of industry functions of the Board of Trade. The regional organisations of the Ministry of Technology and of the Board of Trade will be adjusted so as to reflect the new division of responsibilities between the two Departments. 7. The Ministry of Technology will assume responsibility for investment grants. 8. In addition, the Department of Employment and Productivity will assume responsibility for a number of bodies concerned with the provision of certain of the productivity services to industry hitherto handled by the Board of Trade. 9. The Board of Trade will concentrate on overseas trade and export promotion, including the many activities which contribute invisible earnings to the balance of payments. Thus, in addition to its responsibilities for external commercial policy (including tariff policy) and export policy and services, the Board of Trade will retain responsibility for civil aviation, shipping, tourism, hotels and insurance. 10. The Board of Trade's other field of responsibility will relate to trade and commerce in the United Kingdom. It will continue to be responsible for the distributive and service trades, including retail distribution, newspapers, printing, publishing and films. It will also retain a number of general responsibilities in relation to commerce including the administration of the Insurance and Companies Acts, Patents and Copyrights. 11. As has been announced, the Government is urgently reviewing the question of the public accountability of firms in industry, including the role of the Monopolies Commission and the National Board for Prices and Incomes. The future departmental responsibility for monopolies, mergers and restrictive practices will be decided in the light of the Government's decision which will be announced shortly.

N.E.D.C. AND THE NATIONAL ECONOMY 12. The Prime Minister will remain Chairman of the N.E.D.C. Responsibility for co-ordinating advice on the content and priorities of the Council's business and for supervising the Vote and staffing of the N.E.D.O. will pass to the Cabinet Office. The Government's consultations with the "little NEDDYs" will now pass to the relevant sponsoring Departments. 13. Responsibility for medium and long term economic assessment will pass to the Treasury as part of the reorganisation; and that Department will assume co-ordinating responsibility for those aspects of the work of the N.E.D.C. which relate to the continuing process of preparing, producing and following up planning documents and for co-ordinating the consultations between Departments and industry on these.

LOCAL GOVERNMENT AND REGIONAL PLANNING, AFTER THE MAUD REPORT 14. The new Secretary of State for Local Government and Regional Planning will co-ordinate the work of the Ministries of Housing and Local Government and Transport. He will be particularly concerned with following up the recommendations in the Maud Report. He will take personal charge of the negotiations for carrying through the reform of Local Government in England. Responsibility for the Regional Planning Councils and Boards will pass, with their staffs in the regions, from the Department of Economic Affairs to the new Secretary of State. 15. The Secretary of State will also have special responsibility in relation to all aspects of environmental pollution. He will co-ordinate the activities of the executive Departments in this field. The Prime Minister has asked him as a matter of urgency to submit recommendations for improving the machinery for dealing with pollution problems. The Secretary of State's responsibilities in this field cover England. but he will have the task of securing co-ordination with the Secretaries of State for Scotland and for Wales, whose responsibilities and statutory functions remain unchanged in this and in all other matters.

TRANSFER OF FUNCTIONS ORDER 16. The creation of the new post of Secretary of State for Local Government and Regional Planning and the re-distribution of the functions of the Department of Economic Affairs take effect at once; and the Minister of Technology will for the time being become Minister of Power. But the actual merger of the Ministries of Technology and Power, and the transfer of functions from the Board of Trade, as well as the transfer of responsibility from the Department of Economic Affairs for the I.R.C., have to be effected by an Order in Council. which requires Parliamentary authority. For this purpose it is intended to lay a draft Transfer of Functions Order as soon as possible after the two Houses resume.

10, Downing Street,

Whitehall. S.W.I.

5th October, 1969