HC Deb 08 February 1971 vol 811 cc5-8
10. Mr. Kaufman

asked the Secretary of State for Trade and Industry when he expects to complete his study into all aspects of regional policy; what form it is taking; and whether he will invite non-governmental bodies to submit evidence.

67. Mr. Armstrong

asked the Secretary of State for Trade and Industry whether he has now completed his review of regional policy; and if he will make a statement.

69. Mr. James Hamilton

asked the Secretary of State for Trade and Industry whether he has now completed his review of regional policy for Scotland; and if he will make a statement.

75. Mr. Blenkinsop

asked the Secretary of State for Trade and Industry whether he will make a statement on the result of his review of regional policy.

Mr. John Davies

Statements about the Government's regional policy review will be made shortly. The Government are taking full account of the views expressed by a wide range of organisations.

Mr. Kaufman

In view of authoritative statements that unemployment will rise this winter to one million, and since firms are pulling out of development areas, instead of going into them, because of the Government's policy, and since incentives are being withdrawn, should not the Government take action, instead of leaving it to the development associations despairingly to try to get together to do the job which the Secretary of State's Department is there to do?

Mr. Davies

The hon. Gentleman quotes conjectural statements as justification for doing something which the Government are already doing, which is to try to find exactly which measures would be the most appropriate, not only to cope with short-run problems in the regions but also to provide a sound future for the regions and to meet the need for industrial growth in the areas concerned.

Mr. Armstrong

Does not the Secretary of State agree that it was foolish and irresponsible for the Government to announce changes immediately they came to power, costing, according to the North-East Development Council, £38 million a year in aid to the Northern Region, and to create a complete crisis of confidence in all sections of the community in the North before the review policy has even been decided?

Mr. Davies

The position of the Government was reviewed most carefully whilst in Opposition, and the decisions which were announced on 27th October were the result of mature study of the problems concerned. It would therefore be quite unnecessary to suggest that any longer period of study was required. The underlying problem is the poor response of the economy generally, which largely was engendered by the weak economic policies of the Opposition.

Mr. Blenkinsop

Is the right hon. Gentleman aware that in areas like ours male unemployment is now over 13 per cent. and that the position is getting steadily worse, with firms contracting because of Government policy?

Mr. Davies

The policies which are responsible are those of the last Administration. The policies of the present Government will bring back economic welfare.

Sir H. Legge-Bourke

Will my right hon. Friend, when considering regional policy for the East of England, pay particular attention to the fact that in the Borough of Wisbech, in my constituency, we are appoarching all too fast a rate of unemployment of nearly 7 per cent., so that it is important that boroughs of that size should get consideration?

Mr. Davies

In the course of the review which we are carrying out, all areas of the country are being carefully considered. For this reason it will take some time to come out with well-reflected policies in this field.

Mr. Benn

Will the right hon. Gentleman deal more satisfactorily with the question, why did he change existing policy before the review was complete or, alternatively, if the review had been done before the election, why is he now continuing with a review when his policy has already been announced?

Mr. Davies

The reason for the change of policy was that quite evident failure of the policies pursued by the last Administration to attain an effective industrial superstructure throughout the country. The faults were quite evident to us all. The changes were, therefore, urgent and were carried out urgently. As a longer-term measure, the whole review of the structure of regional policy is being carried through.

Dame Irene Ward

Is my right hon. Friend aware that the North of England would be better served if grants could be paid quickly? There is a great deal of criticisms about the length of time it takes for the Government to pay the grants they have decided to give. Could he perhaps get on with paying what is our due?

Mr. Davies

I, of course, take due note of the point made by the hon. Lady—

Dame Irene Ward

"Hon. Friend", please.

Mr. Davies

I say so with absolute justice—"my hon. Friend". I will up-braid my Department suitably on her account.

Mr. Heffer

Is not the right hon. Gentleman aware that it is impossible for the Government constantly to hide behind the argument that the level of unemployment has increased because of the previous Government' policy? Is he not aware that the so-called changes carried out by his Government have led to a rapid increase in unemployment in every development area? It is not a review we want, but action now to bring down the level of unemployment in Liverpool, on the North-East Coast and in similar areas.

Mr. Davies

I am not clear, Mr. Speaker, what the question was in that speech. However, the undoubted responsibility of the Labour Party for the extent of wage inflation has played a major part in the damage to the economy.

Mr. Blenkinsop

In view of the unsatisfactory nature of the answer, I beg to give notice that I shall raise the matter on the Adjournment as soon as possible.