Northern Development Area (Hansard, 8 March 1971)

§ 37. Mr. David Reed
asked the Secretary of State for Trade and Industry how many firms contemplating new projects in the Northern Development Area have now told him they are reconsidering their plans following the change in investment incentives announced in October, 1970.

§ Mr. Anthony Grant
Twelve, but only one small firm has told us that it is postponing its project. The number of firms who notify us that they are reconsidering plans is, however, of little significance as I expect firms at all times to keep their plans under review.

§ Mr. Reed
Is the hon. Gentleman aware that the argument which he has given me in answer to similar questions during the last six months no longer holds water, and that firms have now had time fully to review their investment plans for the development areas? Could he say when the present Government will be prepared to accept that it is the result of their policies alone which is causing the dearth of industrial inquiries in the Northern Region at this time?

§ Mr. Grant
The hon. Gentleman is quite wrong in his rather wild preliminary. In fact, only one Question has been asked, and that was on 18th January. The answer that I give now is exactly the same as it was before. Firms are always reviewing their position. They did so under the previous Administration. One of the factors which they may have to take into consideration is that of wage inflation.

Mr. Bob Brown
Is the hon. Gentleman aware that the Tory leader of Newcastle City Council and chairman of the North-East Development Council has already condemned as planning measures the Department's recent announcements? In view of the abysmal ignorance revealed by his right hon. Friend at the Dispatch Box today, and notwithstanding the answer to Question No. 29, may I suggest that the Minister hires a mini-coach so that all Ministers may make a tour of the development areas?

§ Mr. Grant
On the contrary, it emerged clearly from the debate on the Northern Region the other week—in which, if I may say so, the Opposition were routed—that Alderman Gray, if that 31 is the gentleman to whom the hon. Member refers, welcomed the Government's new measures in the Northern Region.