NORTHERN REGION (Hansard, 3 November 1970)

§ Q6. Mr. Milne
asked the Prime Minister what proposals he has for dealing with the problems of the Northern Region, and if he will give consideration to the appointment of a Minister for the Northern Region with an office based in Newcastle.

§ The Prime Minister
We announced on 27th October measures to help all the development areas, including further substantial assistance under the Local Employment Acts. I do not propose to appoint Ministers for the Regions of England.

§ Mr. Milne
Is the Prime Minister aware that the replies of his right hon. Friend the Chancellor of the Exchequer earlier today have done nothing to allay the fears of those in the North-East about the future under this Government?
Is the right hon. Gentleman also aware that claims were made during the election that the appointment of a Minister for the North-East in 1963 by a Conservative Government was the means of improving the situation? That is not necessarily accepted. But why is the Prime Minister going back on his earlier statements? Why cannot we have a Minister for the North-East to deal with the pressing problems that confront us?

§ The Prime Minister
My noble Friend Lord Hailsham was appointed Minister for the North-East in 1963 with the explicit instruction to produce a plan for dealing with the problems of the North- 850 East. When he had completed that plan he relinquished the position, and it became the responsibility of the Secretary of State for Trade and Industry. The Minister for the North under the last Administration had no executive powers to deal with the North-East as such. I believe that the best way to deal with a particular area is through the Minister responsible for the country as a whole, because he has power to take executive action.

§ Dame Irene Ward
Will my right hon. Friend bear in mind that we have two very delightful north country Members in the Cabinet? Does he not think that it would be rather a good idea if one of these days we could have a special debate and those two delightful and active Members could give us a full report of what they have done inside the Cabinet to help the North-East?

§ The Prime Minister
I am sure that nothing would give my colleagues greater pleasure than the opportunity of telling my hon. Friend what they have been up to in the Cabinet. But I should also point out that so far in the short life of this Government there have been visits from 21 Ministers to the North-East and the northern part of England. I think, therefore, that my hon. Friend has little to complain about in that respect.

§ Mr. Harold Wilson
From the information that he has been given about the number of firms which were intending to establish new ventures or factory extensions in the area, since the decision to end investment grants and their replacement by the other measures listed by the Chancellor, which are much less attractive to a new firm with no profits behind it, how many have indicated to the right hon. Gentleman or to his colleagues that they are not now proposing to go forward in the Northern Region and other development areas?

§ The Prime Minister
I have no information to that effect. But I do not agree with the right hon. Gentleman's view that the measures are a less attractive incentive to firms to go to the development areas. Taking into account that they will get free depreciation again and indefinite building allowances, that these will extend to the service as well as to the manufacturing industries, that they will get 851 assistance under the Local Employment Acts, and also that we are continuing the regional employment premium until the date settled by the right hon. Gentleman—namely, 1974—I do not believe the right hon. Gentleman's allegation is justifiable.

§ Mr. Roy Jenkins
May we take it that the Government had at their disposal, before making these decisions, detailed information as to the discounted value of the new incentives to firms going to the development areas in manufacturing industry compared with the old incentives? Will the Prime Minister assure us—I do not ask him to give it now—that he will make this information available to the House if we question the Government?

§ The Prime Minister
When we were considering the best inducements to offer people to go to the development areas we took into account all the information that was available to us. [An HON. MEMBER: "Publish it."] I must examine whether that can be published. The former Chancellor of the Exchequer knows that often there are figures which the Government are not at liberty to publish, but we have adapted the system to give what we think will be the best inducements to firms to expand in the development areas.

§ Mr. Emery
Will my right hon. Friend assure us that he does not intend to give more special treatment to the North-East than to other development areas, particularly the South-West, which also deserves some consideration? In dealing with that region, will my right hon. Friend realise that the service aspect is of great assistance, and will he look into the possibility of having this applied to the hotel industry, which at the moment does not benefit to the same extent.

§ The Prime Minister
The arrangements that we have announced apply to all the development areas; so my hon. Friend's request in that respect is met. My right hon. Friend the Chancellor of the Exchequer announced that he is considering a plan for dealing specifically with hotels.

§ Mr. Bagier
Does the right hon. Gentleman realise that the development districts in the North-East and Northern Region are worse off than those in any other region? Will he follow the example 852 of the previous Government and appoint a senior Minister to co-ordinate efforts to deal with the serious problem in those areas? Does he recall that the main thing for which his noble Friend Lord Hailsham was remembered was his attempting to appear in the North-East disguised in a cloth cap, but he did not fool anyone?

§ The Prime Minister
I am sure that all hon. Members for the North-East will, in all fairness, recognise that Lord Hailsham's plan was the basis for the development of the North-East through both Administrations in the last seven years.

§ Mr. Roy Jenkins
There is certain information which the Government cannot publish, but surely the right hon. Gentleman is not trying to say that this would apply to a general provision, not related to individual firms, about the discounted value of the incentives now offered to manufacturing industry and those previously offered? Did he have this information available before him when he took the decision? If so, is he going to let the House know what it is?

§ The Prime Minister
I have said that I am prepared to examine what information can be published in this respect.