HC Deb 07 July 1970 vol 803 cc474-6
10. Mr. William Hamilton

asked the Chancellor of the Exchequer what plans he has for reducing public expenditure in the development areas.

Mr. Maurice Macmillan

My right hon. Friend intends to see that public funds are used in the way that will contribute most effectively and economically to employment and long-term growth in the development areas.

Mr. Hamilton

Is the Chief Secretary aware that that is a lot of meaningless mumbo-jumbo? Will he give a categorical assurance now that he does not intend to reduce public expenditure in the development areas, because we, particularly in Scotland, are very concerned that the industrial development that has taken place in the last five or six years should continue? The degree of uncertainty that now exists is very damaging.

Mr. Macmillan

My right hon. Friend the Chancellor will announce his detailed proposals on this, as on other matters, when he has completed his current review of public expenditure.

Mr. Sheldon

Is it the Government's intention to reduce any of the more than £300 million at present being spent on regional development? Will the Chief Secretary answer "Yes" or "No"?

Mr. Macmillan

I am sorry to disappoint the hon. Gentleman, but he will have to wait until my right hon. Friend has completed his review.

Mr. Jay

Is the hon. Gentleman aware that the 40 per cent. investment grant in development areas has undoubtedly been a powerful incentive to industry to develop in those areas and that its removal or curtailment would be a serious blow to development areas?

Mr. Macmillan

That is one of the reasons why I said that right hon. and hon. Members opposite must wait until my right hon. Friend has completed his survey. They will then learn what steps the Government intend to take. I cannot anticipate my right hon. Friend's decisions.

Mr. Emery

Will my right hon. Friend bear in mind that, in the matter of decisions about expenditure for development areas, hon. Members on this side of the House will want to see very much better value for money from this Government than we had from the previous Government?

Mr. Macmillan

I am grateful to my hon. Friend. That, indeed, is the whole point of our having a more careful study than the previous Government gave to these problems, in addition to its being with a view to seeing that the money spent leads to fuller employment.

Mr. Roy Jenkins

Cannot the Chief Secretary give us a clear idea how long firms in development areas and those who might go to development areas or expand in development areas will have to remain in a state of complete uncertainty on this very important matter?

Mr. Macmillan

The right hon. Gentleman must await the statement by my right hon. Friend.

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