HC Deb 26 June 1972 vol 839 cc979-81
8. Mr. David Watkins

asked the Secretary of State for Trade and Industry what measures he is taking to assist in the provision of alternative employment at Consett and Stanley, County Durham, to offset the current loss of jobs at the Lead-gate Engineering works, at the Medomsley Colliery, at the Morrison Busty Colliery and at the Ransome Hoffmann Pollard works.

Mr. Chataway

I am confident that the extensive measures to stimulate the economy and those foreshadowed in the Industry Bill will go a long way to reduce unemployment in Consett and Stanley, as elsewhere.

Mr. Watkins

Is the Minister aware that in the four establishments mentioned in my Question more than 1,000 redundancies have been announced within the space of a few weeks, and that, with an unemployment rate hovering consistently at around 7 per cent., that is a shattering blow to the area? Is it not time that instead of giving the sort of complacent answer he has given he gave some evidence of positive, urgent action?

Mr. Chataway

The facts are that unemployment dropped from 7.8 per cent. in April to 6.5 per cent. in May and that a further reduction will follow in June. Moreover, special development areas like this are getting greater assistance than they have ever had before. On top of that, we are introducing a rate of growth in the economy faster than ever before, and that will be of assistance to areas such as the hon. Gentleman's.

Mr. Alan Williams

Does the right hon. Gentleman think that improvement in areas such as this has been such that he need not reconsider withdrawing the regional employment premium?

Mr. Chataway

If the hon. Gentleman wants to put down a Question about the regional employment premium, I shall be happy to deal with that point. I was answering the Question on the Paper, and saying that with special development area status this area is getting greater incentives than ever before.

Mr. Armstrong

Is the Minister aware that neither industrialists in the area nor workpeople share his confidence? Is he also aware that special development area status now means very little in west Durham because of the very silly extension of it by the Government to such a large area in the Northern Region? The truth of the matter is that in west Durham the general opinion is that this Government have written off that part of the world from industrial activities. When will he take urgent, positive measures instead of talking about the Budget incentives working through? There is no sign of that in west Durham, I can assure him.

Mr. Chataway

The unemployment figures show a marked improvement and the new incentives are greater than ever before. I do not think the hon. Gentleman is doing a great deal to attract new industry into the area if he paints so black a picture as that.

Mr. Watkins

In view of the very unsatisfactory nature of the answer, I beg to give notice that I shall seek to raise the matter on the Adjournment at the earliest possible opportunity.

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