HC Deb 18 January 1971 vol 809 cc492-4
6. Mr. Kinsey

asked the Secretary of State for Trade and Industry whether in view of the loss of employment opportunity in the motor industry, he will reconsider his policy for the issuing of industrial development certificates in the city of Birmingham area.

The Minister for Industry (Sir John Eden)

In considering applications for industrial development certificates in Birmingham, I shall take full account of the situation there, but the needs of the development and intermediate areas must continue to have priority.

Mr. Kinsey

I hope that my hon. Friend will bear in mind the need to be flexible in his approach, because there is a changing pattern in industry all the time and it is beginning to affect employment in the Birmingham district, particularly among the 50 to 60-year old workers, and thriving industries must be allowed to develop to contain this amount.

Sir J. Eden

We shall certainly continue to operate this policy with the maximum degree of flexibility, but the fact remains that the unemployment figures in Birmingham are well below the national average.

Mr. Blenkinsop

We welcome the Minister's statement, but does he realise that there is deep anxiety in the development areas about what is the Government's policy about development certificates?

Sir J. Eden

Yes, but the hon. Gentleman knows that the whole question of our policy on regional areas has been under close study.

7. Mr. Douglas

asked the Secretary of State for Trade and Industry if he will make a statement on the representations made to him by the Confederation of British Industry regarding industrial development certificate policy.

Sir J. Eden

My right hon. Friend attended a meeting with the C.B.I. on 19th November when industrial development certificate policy, particularly in relation to small businesses, was discussed. He agreed to bear in mind the points made.

Mr. Douglas

I thank the hon. Gentleman for his reply, but would he not concede that there is considerable disquiet, particularly in Scotland and in other development areas, about the change in industrial development certificate policy? The growing level of redundancies in Scotland necessitates stringent control of factory development in the South-East and the Midlands, and the Government's more flexible policy is destroying the incentives to go to the development areas. Will he take urgent action to reverse the process?

Sir J. Eden

As the hon. Gentleman knows, the I.D.C. exemption limit was kept reasonably low, especially in the Midlands and South-East. In Scotland the revised system of financial assistance should continue to encourage the provision of new jobs there.

Mr. Varley

The Minister referred to the needs of the development areas and intermediate areas, and to the need for strict observation of the I.D.C. practice. Can he say why it was decided to raise the square footage of industrial development certificates in advance of the review which the Government have got going? Is not there undue haste in this matter?

Sir J. Eden

I do not think that there is any question of undue haste. There was a self-evident need to reduce the burden on Government and industry without significantly affecting the movement of industry to the development and intermediate areas.