HC Deb 09 April 1973 vol 854 cc922-3
18. Mr. Horam

asked the Secretary of State for Trade and Industry what is his estimate of the number of jobs in the service industries which have been created under the Industry Act grants to date.

The Under-Secretary of State for Trade and Industry (Mr. Anthony Grant)

Many new job opportunities in the service industries arise indirectly from regional development grants provided to manufacturing, mining and construction industries, although service industry projects themselves are not eligible for such grants.

Mr. Horam

Is the hon. Gentleman aware that the service industries have been expanding at a much faster rate than manufacturing industries over the last year or two and that they are more labour intensive, yet the Government's regional incentives remain biased towards industrial investment? Will the Government do something about this imbalance?

Mr. Grant

The majority of service industries tend to follow increased manufacturing industrial activity, but mobile service projects which make a significant contribution to satisfying the employment needs of the assisted areas are eligible to be considered for regional selective assistance.

Dame Irene Ward

Is my hon. Friend aware that that is not a very satisfactory reply? We could do with much more help in respect of the service industries. I am very pleased about help given to industrial development, but service industries are very important to the consumer and people would like more attention to be paid to them. May I have an assurance that whatever policy is necessary will be immediately put into operation by the Government?

Mr. Grant

I assure my hon. Friend that if a service project is capable of being mobile and can be attracted from a non-assisted area to an assisted area it is eligible for assistance. The criteria laid down are more liberal than they were under the old Local Employment Acts.

Mr. Millan

The hon. Gentleman says that service industries are eligible for selective assistance under the Industry Act. What we want to know is whether any projects have been helped under the Industry Act, because my impression is that absolutely nothing has happened in the last year or two.

Mr. Grant

Certain applications are being considered. If the hon. Gentleman wants further details, I can give them on another occasion.