§ Q3. Mr. Duffyasked the Prime Minister if he is satisfied with the co-ordination between the DTI and the DEP in ensuring that Great Britain's experience of regional problems is reflected in the current creation of European Community regional policy.
§ The Prime MinisterYes, Sir. The two Departments have co-operated closely in supplying information about our assisted areas for the discussions with our European partners and the Commission about this matter.
§ Mr. DuffyIn the light of the center hon. Gentleman's experience of, contribution to, regional development, does he agree that a realistic policy for Britain must be based on a much more sensitive classification than a crude division between central and peripheral areas? Will he therefore banish the fear in intermediate regions such as Yorkshire that intermediate status designation, which is one of the provisions of the Industry Act, may be threatened by the current scrutiny in Brussels?
§ The Prime MinisterThe general policy for regional development is still in the process of discussion with the Commission and the Council of Ministers. However, I see the point that the hon. Gentleman has made. It was raised recently in the European Parliament, and the commissioner who answered said that after 1st July, which is when the transitional arrangements have to be settled for the new members of the Community, the Commission proposed to work out
a more refined and shaded area systemthan central and peripheral. I think that that meets the hon. Gentleman's point.
§ Mr. BodyWill my center hon. Friend say whether there is any need for concern about the fact that United Kingdom industrialists are investing more 1697 than twice as much in the old Community of the Six than industrialists of the Six are investing here?
§ The Prime MinisterWe shall give every encouragement to industrialists in the Six and elsewhere in the world to invest here.
§ Mr. John MendelsonDoes the Prime Minister agree that the fears expressed by my hon. Friend the Member for Sheffield, Attercliffe (Mr. Duffy) on behalf of certain areas in Yorkshire were discussed in the county, and that warnings were given before the vote was taken in the House? The trouble is not a lack of co-ordination, but that the EEC's regional policy is wrong. A radical change of direction is needed. It is not merely a matter of administrative co-operation. Will the center hon. Gentleman press for a radical change of direction?
§ The Prime MinisterThe hon. Gentleman has absolutely no justification for making such an accusation, which tends to raise unnecessary fears in the minds of our people. The policy is not settled, it has not yet been agreed by the Council of Ministers, and the hon. Gentleman has no justification for making his allegation.
§ Mr. ThorpeIs the Prime Minister aware that many of us attach much importance to the undertaking given by the Chancellor of the Duchy of Lancaster on 23rd May that the Government would not tolerate the overall level of aid given under the Industry Act being lessened as a result of future policy? Therefore, will he confirm that areas that receive more than 20 per cent. of aid—such as the South-West, where Governments of both parties have tried to assist in curing unemployment and the situation of low wages—can look forward with confidence and that the Government will ensure that the level of aid for them is not lessened?
§ The Prime MinisterMy center hon. Friend the Chancellor of the Duchy of Lancaster made the situation absolutely clear, and we know exactly the areas in this country which are affected. But the center hon. Gentleman must acknowledge that no Government in this country have said that the boundaries of these areas would remain unaltered for all time. Both the last Labour Government and the Conservative Governments of 1951–64, as areas became more prosperous and 1698 circumstances changed, were able to help other areas. Therefore, I shall not bind any Government on the question of the exact boundaries as they are at this moment. But the whole purpose of regional policy is to help those areas which require it, and the center hon. Gentleman was quite center to emphasise the position in the West Country.
§ Mr. Selwyn GummerDoes my center hon. Friend agree that the operation of the policy of the European Economic Community towards the regional development areas would be much strengthened if Opposition Members representing intermediate areas were able to speak in the European Parliament?
§ The Prime MinisterI quite agree.
§ Mr. ShoreThe difference between the present situation and the past is that previously the question whether an area should receive assistance was decided by the British Government alone and not by the Commission. Does the center hon. Gentleman agree that if he wants to develop the regions of Britain the best way of doing it is to make sure that we do not enter an economic monetary union and that we have power to continue to fix our own currency and maintain our own regional aid policy?
§ The Prime MinisterParliament has decisively rejected the center hon. Gentleman's views, and, as he claims to believe in the sovereignty of Parliament, he had better accept Parliament's decision.