§ 3. Mr. Horamasked the Secretary of State for Trade and Industry if he intends to make any changes in regional incentives, in the light of the recent OECD report.
§ Mr. HoramIs not the right hon. Gentleman aware that the OECD report specifically accused Her Majesty's Government of diluting investment control and said that, combined with the abandonment of the regional employment 8 premium, it would mean a progressive drift to the South-East just at a time when we have an excellent chance in regional policy?
§ Mr. ChatawayI have read the report and I do not recognise what the hon. Gentleman has said as a fair summary of its findings. Our intention is to pro duce self-sustaining growth in the regions and not have a situation in which many industries have to be permanently subsidised.
§ Mr. FernyhoughIs it not the case that when officials of the right hon. Gentleman's Department gave evidence before the Select Committee on Expenditure recently, they said that they expected a job loss of between 20,000 and 50,000 as a consequence of the withdrawal of the regional employment premium? Does the right hon. Gentle man agree that, far from withdrawing it, the Government should be lending all possible aid to Dr. Hillary, who, speaking as an EEC Commissioner, has said that this is one of the incentives that ought to be retained for development areas?
§ Mr. ChatawayNo, Sir. The right hon. Gentleman will recall that when the regional employment premium was introduced in 1967 the then Chancellor of the Exchequer, the right hon. Member for Cardiff, South-East (Mr. Callaghan), said that he thought it should run for seven years and then be phased out. That is the present Government's position, also.