§ Mr. Duffyasked the Prime Minister if the public speech by the Secretary of State for Trade and Industry in Birmingham on 17th January, 1972, on regional policy represents Government policy.
§ Q4. Mr. Joel Barnettasked the Prime Minister if the public speech of the Secretary of State for Trade and Industry in Birmingham on 17th January on the economy represents Government policy.
§ Q11. Mr. Carterasked the Prime Minister if the public speech made by the Secretary of State for Trade and Industry to Birmingham Chamber of Commerce on 17th January, 1972, on economic matters represents Government policy.
§ The Prime MinisterYes, Sir. My right hon. Friend emphasised that, to take full advantage of economic growth and entry into the Community, industry should invest now in modern equipment, to improve competitiveness and increase capacity. He also explained the essential part that regional policies would continue to play in the overall management of the economy.
§ Mr. DuffyIs the Prime Minister aware that there is widespread criticism 670 from the C.B.I. and the Industrial Policy Group on the one hand and the trade unions on the other hand of the Government's current regional policy, including in some instances the use of industrial development certificates? Will he say what is the virtue in sticking rigidly to an outmoded regional policy when almost the whole country has been reduced to the needs of a development area?
§ The Prime MinisterI do not think that the hon. Gentleman can quote the views of the C.B.I. and the Industrial Policy Group in the same breath because the members of the C.B.I. dissociated themselves from the views of the Industrial Policy Group. On the question of I.D.C. policy, it is well known that there is always a conflict of interest between those who believe that to get what industry is available into the development areas the I.D.C. policy should be absolutely rigid and those who believe that it should be flexible, because there are areas such as the West Midlands conurbation and the North-West which have to replace industry that is fast becoming obsolescent. Obviously, to achieve a balance must be a question of judgment by the Ministers concerned.
§ Mr. BarnettIs the Prime Minister aware that the Secretary of State managed to make a speech on growth and investment which, remarkably, had no reference to unemployment? Would the Prime Minister care to confirm his promise—the 1972 one—that it is the Government's policy still to maintain full employment? Will he consider taking action to deal with unemployment and investment by considering, for example, a temporary investment incentive, preferably investment grants but some other method if he prefers it, to deal with the crucial problem of new investment in the next 12 months?
§ The Prime MinisterThe C.B.I. forecast showed that the outlook in the returns that it has received is much more optimistic than it has been, probably for the last two and a half years. This is an encouraging aspect of the survey. I would have thought that the whole purpose of my right hon. Friend's speech was to urge investment and thus to get growth, which is also a means of reducing unemployment.
§ Mr. CarterIs the Prime Minister aware that there is absolutely nothing in the Secretary of State's speech that will encourage a reduction of unemployment in the West Midlands? In view of that, will he give serious and urgent consideration to the proposals I have put to him on behalf of every facet of economic life in the City of Birmingham—proposals which would produce projects that would help in the reduction of unemployment in the city?
§ The Prime MinisterThe hon. Gentleman sent me a letter, which arrived on Tuesday afternoon, putting forward various proposals and giving me details of the group which had worked them out. This letter is now being examined by Government Departments to see which of these proposals can be implemented.
§ Dame Irene WardMay I thank my right hon. Friend on behalf of the North-East for the endeavours he makes to help our area? Can he let us know when we are to get an answer about the grants for old industries which want to expand? Is he aware that even if the grants are smaller than those given to incoming industries, we still need an answer urgently? Thank you very much for the effort you have made on our behalf.
§ The Prime MinisterI am gratified to have my hon. Friend's appreciation and I will endeavour to let her have the answer she requests as soon as possible.
§ Mr. BlenkinsopIs the Prime Minister aware that with a bit more of this kind of help the whole area will be utterly desolate? Is he further aware that the comments of his hon. Friend do not represent the views of the people in the area?
§ The Prime MinisterI do not know what good the hon. Gentleman thinks he is doing for the North-East by using extravagant language of that kind which bears no relation to the truth. If he wants industry to go to the North-East he had better stop talking about a desolate area.