HC Deb 23 February 1970 vol 796 cc786-90
4. Mr. Michael Shaw

asked the Minister of Technology what steps he is taking to stimulate industrial expansion in the Yorkshire and Humberside region in view of the fall in employment that has occurred since 1966.

1. Mr. Willey

asked the Minister of Technology what steps he is taking to improve the current employment difficulties in Sunderland.

15. Mr. Fry

asked the Minister of Technology what steps he is taking to stimulate industrial expansion in the East Midlands region in view of the fall in employment that has occurred since 1966.

21. Mr. Mawby

asked the Minister of Technology what steps he is taking to stimulate industrial expansion in the South-West region in view of the fall in employment that has occurred since 1966.

25. Mr. Blaker

asked the Minister of Technology what steps he is taking to stimulate industrial expansion in the North-Western region in view of the fall in employment that has occurred since 1966.

30. Mr. R. W. Elliott

asked the Minister of Technology what steps he is taking to stimulate industrial expansion in the Northern region in view of the fall in employment that has occurred since 1966.

31. Sir J. Langford-Holt

asked the Minister of Technology what steps he is taking to stimulate industrial expansion in the West-Midland region in view of the fall in employment that has occurred since 1966.

The Minister of State, Ministry of Technology (Mr. Eric Varley)

The Government have taken a great number of important steps over the country as a whole to reduce the hardships and difficulties of redundancies and unemployment. We have now developed a wide and flexible range of measures of assistance to industry, from which the less prosperous areas of the country are now benefiting.

Mr. Shaw

Does not the hon. Gentleman recognise that the overriding need is for action to get rid of the continued stagnation of the economy of the country as a whole and the widespread lack of confidence by industry, which now restrains industry from making investment and is the real cause of the stagnation in the regions?

Mr. Varley

I could not accept any of that. The hon. Member oversimplifies the matter. He fails to understand some of the factors and forces which have been having an influence. We now have a healthy economy and a balance of payments surplus, something that hon. Members opposite did not experience in their last years of office. On the other hand, we have in every region of Britain a structure of industry, and, therefore, employment which is much more soundly based.

Mr. Fry

Does not the hon. Gentleman agree that the regional employment situation, plus his recent inability to grant an i.d.c. in Raunds and Wellingborough—where one firm says that orders will now go to Belgium—will not only hinder much-needed diversification of industry in my constituency, but reflects the complete lack of confidence by the business community in the Government?

Mr. Varley

I cannot discuss individual i.d.c. cases, because to do so is not our practice. The hon. Member does a disservice to the East Midlands region, which I, too, represent, by suggesting that it is a depressed area. It is of course, not a depressed area, but a very prosperous area. Although there are difficulties in certain sections, by and large it is healthy.

Mr. Mawby

As unemployment in the South-West is about three times greater than it was in 1966, and as all the talk has been not about unemployment but about redeployment, can the Minister say where these jobs have been redeployed to?

Mr. Varley

I do not deny that there are problems in the South-West. I know that the hon. Member and some of my hon. Friends who represent that part of the country are continually making representations to us, but this is really a very difficult matter. As I understand it, some hon. Members opposite would like to cut back on assistance to industry in development areas, and if that were done the position would be even worse than it is.

Mr. Blaker

As so-called incentives to industry now cost the taxpayer nearly 18s. a week for every family in the country, how does the Minister explain the fact that in the North-West region there are more than 100,000 fewer people in employment than there were three years ago?

Mr. Varley

The hon. Gentleman is over-simplifying the changes which have taken place. There are several changes. More people are remaining in full-time education than was the case a few years ago; certainly more people are retiring before what we regard as the normal retiring age; and there have been tremendous increases in productivity. In the North-West generally we refused to accept the Hunt Committee recommendation that Merseyside should be rescheduled. We are about to designate North-East Lancashire as an intermediate area.

Mr. Elliott

Is the Minister aware that the measures of which he is speaking have failed in the Northern region, where we have double the normal national unemployment? Can he say anything about the inquiry which his Department is making into the effectiveness of grants to development areas?

Mr. Varley

The investment grant scheme is under review. I think that the hon. Gentleman to some extent is anticipating the debate in which, no doubt, he will take part later today. I have no doubt that had it not been for our development area policies and vast assistance to industry, the North-East would be in a much more difficult position.

Sir J. Langford-Holt

I understood the hon. Gentleman to say that for some five years the present Government have been taking steps to bring about a rise in the level of employment, which in fact for six years exactly the opposite has been taking place. Can the hon. Gentleman tell us when the process will be reversed?

Mr. Varley

The hon. Gentleman's Question specifically mentions the West Midlands. That is a very prosperous region. However, the hon. Gentleman is over-simplifying the matter. What is really happening is a massive structural change in industry, and as a consequence the employment prospects are much more soundly based in that region than was previously the case.

Mr. Ford

Would my hon. Friend convey to his right hon. Friend the Minister of Transport that in order to improve and assist the industrial environment, and thereby employment, in Bradford, it is necessary to push on with the greatest urgency with the improvement of road communications, particularly from the North-West?

Mr. Varley

The question of road communications is one for my right hon.

Friend the Minister of Transport, but I hope to go to Bradford later this week and perhaps I shall have an opportunity to look at the situation for myself.

Mr. Ridley

How can the Minister be so complacent when the record of the present Government is that they have spent £300 million a year on development area policies, there have been 300,000 fewer jobs in the development areas as a result, and the rate of unemployment has doubled?

Mr. Varley

I should like to know from the Opposition exactly what their policy is. It is not a question of complacency by the Government about the development areas. I know what would happen if hon. Members opposite had their way: there would be a vast reduction in aid to the development areas.

Mr. McNamara

Is my hon. Friend aware that on the north bank of Humberside we are grateful for having been designated as an intermediate area? May I ask what steps are being taken by local business men generally to take advantage of this new situation to promote employment in the area, in view of our heavy unemployment?

Mr. Varley

I am grateful to my hon. Friend. As he says, we are taking steps to designate certain parts of Yorkshire and Humberside as an intermediate area. Inquiries are coming through, and they are encouraging.