National Economic Development Council

HC Deb 03 November 1970 vol 805 cc830-2

11. Mr. Eadie

asked the Chancellor of the Exchequer what changes are proposed in the functions of the National Economic Development Council.

Mr. Barber

At its meeting on 20th July the Council agreed that its future rôle should be as defined in its original terms of reference.

Mr. Eadie

Is the right hon. Gentleman aware that the announcements made by his Department are causing a great deal of uncertainty in development areas about future economic activity? Will he make a categoric statement today that the Government will not reduce financial aid to areas such as Scotland, as the policies which the Conservative Government pursued in the past created 136,000 unemployed in Scotland in 1963?

Mr. Barber

The original Question was concerned with the functions of the National Economic Development Council. There is to be a meeting of that body tomorrow, which I shall be attending in the morning, and I have no doubt that these matters will be discussed. In answer to a previous Question, I dealt with the situation in the regions—in Scotland, the North-East and so on—and I explained why I believe that the value of the differential will be as great in the future as it has been in the past but will, in fact, be more effective.

Mr. Roy Jenkins

Will the right hon. Gentleman tell us what his original answer meant? He was saying what would be the future rôle of the National Economic Development Council, and that it would be defined in relation to its original terms of reference. Does this mean a change of rôle? What were the original terms of reference?

Mr. Barber

I think there is a misunderstanding. What I said was that it was decided at the Council meeting on 20th July, before I became Chancellor of the Exchequer, that its future rôle should be as defined in its original terms of reference.

Mr. Roy Jenkins

What does that mean?

Mr. Barber

It means this is what the Council decided. I am simply reporting to the House what the Council decided, which I understand to mean its original terms of reference. [Laughter.] I was not at the Council meeting. I am informed that this was agreed. This is not a matter for the Government; it is a matter for the three sides concerned, and they decided that the future rôle of the Council should be as defined in its original terms of reference. If the right hon. Gentleman would like me to, and if you will permit me to take up the time, Mr. Speaker, I will read out the original terms of reference which still apply.

Mr. Roy Jenkins

I do not wish to entice the right hon. Gentleman to take up too much time of the House, but will he tell us to what extent this new definition of the rôle marks or does not mark a change from the practice which existed heretofore?

Mr. Barber

The practice will be the same as heretofore. Since the N.E.D.C. was set up by the Conservative Government in 1962 and continued by the Labour Government during their period of office, it has proved extremely useful as a forum where economic policy can be discussed at the formative stage with both sides of industry, and this is its principal purpose.

Mr. Roy Jenkins

Is there, or is there not, a change as a result of the meeting on 20th July?

Mr. Barber

That is the whole point of what I was saying.