HC Deb 17 January 1972 vol 829 cc8-10
11. Mr. Strang

asked the Secretary of State for Trade and Industry what further representations the Government have had regarding regional policy; and if he will make a statement.

Mr. John Davies

Representations have been received from a number of interests. Statements are made on these whenever appropriate.

Mr. Strang

Is the Secretary of State aware that the present appalling waste of human resources in the regions cannot be attributed solely to the high national level of unemployment and that economic expansion alone will not solve this problem? Will he assure the House that the Government are studying the situation with a view to bringing forward new regional policy measures within the next few months?

Mr. Davies

On several occasions I and my right hon. Friend the Prime Minister have made it clear that these matters are under urgent and continuous study by the Government.

Mr. Edward Taylor

Is my right hon. Friend aware that the Common Market's regional rules prevent and forbid grants of more than 20 per cent. in areas designated as central by the Common Market Commission? Has he had any communication from the Commission as to the areas of Scotland, and Britain as a whole, that the Commission would wish to designate as central? If so, when may we have information about this?

Mr. Davies

No. This is a matter which will require further discussion with the Community. It will be, perhaps, of interest to my hon. Friend to know that, at present at least, I am sure that the 20 per cent. to which he has referred would not impede the incentives available in intermediary areas, even if those intermediary areas were characterised as central areas.

Mr. Heffer

Is it not clear that the Government's regional policy has failed totally? Is the right hon. Gentleman aware that in certain areas such as Merseyside, Scotland and North Wales—all areas of growing and high unemployment—the workers are now not prepared to accept unemployment and are now, in certain cases, occupying factories in order to oppose the Government's policy? Is not this an indication that at the earliest possible moment there must be a reversal of Government policy, in order to create employment in those areas?

Mr. Davies

I agree with the hon. Gentleman in this: that over perhaps the whole of the post-war period regional policies have not been able to create the number of employment opportunities in many parts of the country which we all would have wished. The Government have worked hard to try to develop the right policies to counter this very damag- ing effect, and will continue to do so. But that the present Government's policies are themselves responsible for a more serious situation is something to which I would not accede.

Mr. Leadbitter

Despite the Secretary of State's assurance that this matter is under continuous examination in the Department, is it not time that the House was informed of the results of the review and of the Government's policy? The Northern Region, in particular, as well as the areas mentioned by my hon. Friend the Member for Liverpool, Walton (Mr. Heffer), is running at the rate of 2,000 redundancies a month. In my constituency there is one vacancy for every 137 males unemployed. In view of this, and because of the right hon. Gentleman's concern, would it not be proper for the House to have the information arising from this examination, perhaps in the form of a White Paper on regional policies?

Mr. Davies

The House will clearly wish to discuss these matters. Surely it would be best to discuss them against clear propositions which seek to amend and improve the situation.

Mr. Varley

Can the right hon. Gentleman confirm the assurance given on 20th December by the Minister for Industry that, when this current review is complete, the results will be announced to the House and there will be an opportunity for the House to debate these issues, perhaps on the publication of a White Paper?

Mr. Davies

That is a matter for my right hon. Friend the Leader of the House and not for me. I am sure that my right hon. Friend will be prepared to recognise the clear desire of the House to debate these matters.