HC Deb 26 January 1970 vol 794 cc974-5
2. Mr. Blaker

asked the Minister of Technology what investigation he has made into the effects of present investment incentives on the distribution of capital and labour intensive industrial development inside and outside development areas; and if he will publish the results.

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

As explained to the House on 16th October, the study we are making of the effectiveness of the investment grant scheme will assist an understanding of these effects. The question of publication will be considered when the study is completed.—[Vol. 788, c. 124.]

Mr. Blaker

Is the hon. Gentleman aware that there is growing concern at the fact that there are no means by which the country can know what value for money it is getting from Government expenditure in this field? As unemployment in each of the development areas is now higher than it was at the end of 1966, has not the time come, not simply for an interdepartmental inquiry, but for a full-scale independent inquiry into this matter?

Mr. Varley

I do not think that the hon. Gentleman has really understood the changes which have taken place in the employment position in some of the developing areas. There has been a rapid rundown in the coal industry, and in some of the other traditional industries, but there is no evidence to show that over a period investment grants would have cost more than the previous system of investment allowances operated under the Conservative Party.

Mr. Ford

Has my hon. Friend had his attention drawn to an article by Malcolm Crawford, in yesterday's Sunday Times, where it is clearly indicated that Conservative policy on investment incentives is still in a somewhat confused state?

Mr. Varley

I saw that report, and entirely agree with my hon. Friend. It shows that the House must know a lot more from hon. Gentlemen opposite about what they will do with investment grants if they ever get the opportunity.

Mr. Ridley

As there are 300,000 fewer people employed in the development areas now than there were in 1965, do the Government really think that they are getting value for money for their regional policies?

Mr. Varley

I am absolutely convinced that had it not been for investment grants the unemployment position in the regions would have been much worse than it is today.