HC Deb 31 July 1972 vol 842 cc21-2
23. Mr. Denzil Davies

asked the Secretary of State for Wales whether he remains satisfied with the operation, in relation to the Welsh economy, of the system of granting industrial development certificates; and if he will make a statement.

Mr. Peter Thomas

Yes.

Mr. Davies

I am rather surprised at the right hon. and learned Gentleman's answer. Does he realise that in the first quarter of this year almost 10 times as many IDCs and consents have been granted for London and the South-East as compared with Wales, whereas the figure in previous years has been five or six times as many? Does the Secretary of State agree that this is out of all proportion to the unemployment problems in the two areas, and has not the time come for the Welsh Office to exercise much greater control over the issue of the certificates?

Mr. Peter Thomas

As the hon. Member appreciates, a change in IDC policy was announced by my right hon. Friend the Secretary of State for Trade and Industry when he introduced the Industry Bill. The hon. Gentleman will also appreciate that IDC control, which is an essential part of our regional policy, is complementary to the Government's policy of incentives for investment in the assisted areas and that once the Industry Bill goes through those incentives will be more generous than ever before.

Mr. George Thomas

Is the Secretary of State aware that there is grave an- xiety at the weakening of the IDC policy by the Government; that there has been a fall in the number, although an increase in terms of sq. ft., this quarter compared with the corresponding quarter last year? Is he further aware that unless he is able within the Cabinet to get a much tigher control of IDCs for Wales, our unemployment figures will get worse?

Mr. Peter Thomas

I do not agree with the hon. hon. Gentleman that there has been what he describes as "grave anxiety". I agree that misgivings have been expressed. The Government have made it perfectly clear that the change in IDC limits will be looked at, and in the light of what one discovers in conjunction with the new regional policies one can decide whether they should remain or be changed.

Mr. Gower

Is not encouragement to be derived from the fact that while there is heavy unemployment in some areas like the Midlands, the Welsh economy, and particularly the smaller and newer companies, has remained remarkable resilient in all the circumstances?

Mr. Peter Thomas

On Second Reacting my right hon. Friend made the Government's IDC policy quite clear. He said that what the Government are trying to do was to balance the need for a tough IDC policy against the risk of excessively strict control for prosperous areas which might shut out new projects or encourage their removal abroad.