HC Deb 08 March 1971 vol 813 cc16-8
11. Mr. David Watkins

asked the Secretary of State for Trade and Industry what consultations he is having with managements and trade unions on employment opportunities in development areas.

Mr. John Davies

I and the other Ministers in my Department have met representatives of trade unions and management on a number of occasions when discussions have taken place about steps to promote the growth of employment in the development areas. My Department will continue to keep in very close touch with both sides of industry.

Mr. Watkins

Is the right hon. Gentleman aware that every coal mine which remains open in the development areas is now short of labour and that these areas also have record numbers of unemployed? Does he expect his consultations to be productive in resolving that situation?

Mr. Davies

My fellow Ministers and I have close contacts with both the National Coal Board and the National Union of Mineworkers. We keep clearly in mind the problems of the areas concerned and the degree to which the industry can resolve some of them, but the terms of the Question overstate considerably the potential of these arrangements.

Mr. Blenkinsop

Could the right hon. Gentleman at least make a statement about the future of the shipbuilding and ship-repair industry since this has direct relevance to the whole question of the future rôle of the development areas?

Mr. Davies

I hope shortly to introduce a shipbuilding Bill. At that time I shall have an opportunity of ranging fairly widely in regard to this industry and there can be a widespread debate on the subject.

Mr. Benn

Has the right hon. Gentleman any idea how much the Treasury reckons it will save by the new development area policy which is being pursued, so that we may set it against his earlier Answer that he could not estimate what change in cash flow there would be in those areas?

Mr. Davies

Here again the right hon. Gentleman is seeking precision when he knows that none is possible. The truth is that there are ebbs and flows in this matter. In the initial phase it is probable that application of the policy will put more money into the regions than less. Later the opposite may be the case.

12. Mr. McBride

asked the Secretary of State for Trade and Industry what growth he expects in the engineering industry in development areas, in particular in Wales, as a result of the Government's regional policies.

Mr. Anthony Grant

The rate of expansion of the engineering industry in the development areas will depend largely on national economic growth. The Government's regional policy instruments are designed to promote the growth of all manufacturing industry in the development areas, including the Welsh development area.

Mr. McBride

Is the hon. Gentleman aware that his Answer will be received with dismay in Wales where his policy shows a lamentable lack of success? Is he also aware that the engineering and other allied industries in Wales are contracting, that closures are occurring with monotonous rapidity and that large and small engineering firms in Wales are suffering from the bankrupting policies being pursued by this inept and hopeless Government?

Mr. Grant

I am aware of those matters. The hon. Gentleman should be aware that the misfortunes from which, I recognise, the Welsh are suffering have occurred as a result of the economic policies of the inept and hopeless Labour Government. Of course we recognise the difficulties in Wales, but it is far too early to say that the policies proposed by the Government will not be successful. The matter takes time to work out. I ask the hon. Gentleman not to get too depressed, nor to talk his own constituency into depression.

Mr. Leadbitter

Is the hon. Gentleman aware that the rate of redundancies is gaining momentum, that there is increasing unemployment in the development areas, with particular concern in the engineering industry, that trade unionists and employers alike have expressed their views on this matter to the Government, that the North-Eastern Development Council in the northern area has also expressed concern, and that in development areas industrial inquiries have run down to a trickle? Does the situation not worry the Government?

Mr. Grant

Of course it worries the Government. It is precisely for that reason that my right hon. Friend the Chancellor of the Exchequer made a statement on 18th February making the hon. Gentleman's area a special development area. No doubt it has not escaped his attention that many people in his area have suggested that this is precisely the sort of shot in the arm which they require.

Mr. Alan Williams

Would the hon. Gentleman bear in mind that it is as important that he should lay down clear policy guide lines as it is that he should be contemplating realistic expenditure? Will he today give a categoric assurance that his Department will not agree to the construction of any new, large integrated steel plant other than in one of the development areas?

Mr. Grant

No. I will certainly not give any such categoric assurance.