HC Deb 17 April 1972 vol 835 cc16-7
16. Sir G. Nabarro

asked the Secretary of State for Trade and Industry what estimate he has made of increased industrial activities in regional development areas, following the 100 per cent. free depreciation facilities announced in the Budget on 21st March, 1972.

Mr. Chataway

While no precise estimate is possible, we expect the extension of free depreciation countrywide to stimulate demand for plant and machinery supplied by firms in all parts of the country, including the development areas.

Sir G. Nabarro

When does my right hon. Friend expect to see some signs of resuscitation of orders in the capital goods industries, as, for example, in the Midlands, where the Budget appears under this head to have made no impact at all?

Mr. Chataway

My hon. Friend should not expect to see the effects of the Budget already. But it will be clear to him that the package of measures contained in the Budget and the White Paper will be a very substantial stimulus.

Mr. Alan Williams

Does not the Minister realise that, as in 1969 two and a half times as much new industrial space was approved in Wales as was approved in 1971, we need an absolutely massive improvement before the country can be satisfied? If he considers that the future is so promising, will he explain why the Government did not introduce these measures earlier and before, through their economic ineptitude, they threw an extra half a million people on the dole queues?

Mr. Chataway

I believe that people who take a more unbiased approach to these problems will recognise that the Government are having to tackle difficulties which have their roots spread over many years, and that the measures contained in my right hon. Friend's Budget amounted, perhaps, to the most substantial attempt ever made to solve problems of the development regions.