HC Deb 06 December 1971 vol 827 cc920-2
15. Mr. William Hamilton

asked the Secretary of State for Trade and Industry what plans he has to designate further areas for special development area status.

Mr. John Davies

I have at present nothing to add to what I told the House in the debate on the Address.

Mr. Hamilton

Is the Secretary of State aware that the unemployment figures in areas outside the S.D.A.s are in many instances worse than they are inside the S.D.A.s? Will he therefore look at that criterion with a view to extending the special incentives given to areas within the special development areas?

Mr. Davies

Yes; I am kept in day-to-day touch with the statistics involved and with the facts. The hon. Gentleman will realise that extending the areas tends to dilute the incentive, which is a serious problem. Equally, too frequent changes in the deployment of regional incentives causes confusion. The need is to try to keep a balance of mind on the problem and seek to get the best possible arrangement.

Mr. Heffer

Is it not clear that areas like Merseyside ought now to be special development areas? We now have 53,000 unemployed—7 per cent. of the working population and over 11 per cent. of the male population. Is it not clear that development area status itself is not sufficient and that we need to go further to endeavour to get to grips with this very serious problem?

Mr. Davies

This is a matter of judgment. I am closely in touch with the position in the North-West generally and on Merseyside in particular. I still take the view that the prospects for Merseyside are more attractive, perhaps, than those in some of the worst hit areas, such as the North-East and Central Scotland.

Mr. Edward Taylor

Without extending the special development areas, could not my right hon. Friend greatly assist employment in areas like the West of Scotland if he would extend to home firms considering expansion the same S.D.A. facilities which are available to incoming firms?

Mr. Davies

I am very well aware of the strong pressure exercised by my hon. Friend to bring this about, but it must be remembered that these measures were devised specifically to overcome the clear handicap which incoming firms must overcome in arriving for the first time in a new area. The benefit to be gained from any extension of those facilities to existing firms must be compared with the cost of so doing.

Mr. Varley

The right hon. Gentleman referred to the dilution of measures. Is he aware that in manufacturing investment his Government have been responsible for a certain amount of dilution? Will he answer this specific question on S.D.A.s? He must have this information in his notes. How many new jobs have been created since the new areas were designated in February of this year—that is, specifically related to the new designation?

Mr. Davies

It would have to be a very much more precise question before it could be answered. I am unclear whether the hon. Gentleman is referring specifically to West-Central Scotland or to the wide field of special development areas. I will certainly answer a specific question if he cares to table one.