HC Deb 26 July 1971 vol 822 cc27-8
35. Mr. David Reed

asked the Secretary of State for Trade and Industry how many firms to date have notified him of decisions to withdraw or substantially to alter investment projects in the Northern Region following the change in investment incentives; and if he will make a statement.

Sir J. Eden

Only one was attributed by a firm to the change in investment incentives.

Mr. Reed

Notwithstanding that figure, will the hon. Gentleman accept that there is growing concern in the Northern Re- gion and other development areas about the low level of new investment projects? Will he therefore consider introducing an emergency programme of investment grants to do something positive to tackle unemployment this winter? Is the Minister aware that if these were somehow linked with the occupation of advance factories, it would enable the Government to tackle unemployment in areas which need help at a time when they need it most?

Sir J. Eden

I think that the recent proposals announced by my right hon. Friend the Chancellor of the Exchequer fully meet the hon. Gentleman's points.

Dame Irene Ward

Apart from the argument which is now going on about investment grants, will my hon. Friend bear in mind that the northern area requires new investment? The Chancellor's mini-Budget may help, but it is real, sound, good, developing new industry that we want. What are the Government proposing to do about getting investment into the northern area?

Sir J. Eden

A great deal has been and is being done, as my hon. Friend well knows. There has been greatly improved L.E.A. assistance. S.D.A. status has been given to both Tyneside and Wearside. There has been additional expenditure for improvements to economic and social infrastructure, the extension of free depreciation on all immobile plant and machinery, and action to stimulate demand generally. All these actions show that we are tackling the problem with great vigour.

Mr. Dan Jones

May I ask whether precisely the same principle applies to intermediate areas, particularly those in North-East Lancashire?

Sir J. Eden

We are concerned to see that expansion takes place generally. The purpose of giving different categories for particular areas is to ensure that where mobile new jobs can be created they go to the areas where the needs are greatest.