HC Deb 14 May 1973 vol 856 cc1010-2
19. Mr. Tilney

asked the Secretary of State for Trade and Industry if he has completed his consideration of whether to make Merseyside a special development area; and whether he will make a statement on what criteria are needed.

Mr. Anthony Grant

The application is still under consideration. The criteria are set out in the Industry Act.

Mr. Tilney

With the Common Market likely to come to a decision in the near future about regional aid, will my hon. Friend bear in mind that Merseyside has a higher unemployment percentage than five out of the seven special development areas, that the rate of decrease of its unemployment is less and that, in an area of old and /or purpose-built factories, we on Merseyside have had only 30,000 square feet of advance factory space provided, as against 140,000 square feet in the North-East?

Mr. Grant

I accept what my hon. Friend has said, that Merseyside has certain special problems and has responded less quickly to the improvement in the regional situation than other parts of the country, but I do not think that this is a matter for Government decision in a European context. My hon. Friend will accept that we will have to have regard to the possible effect of a change in status upon other neighbouring districts.

Mr. Dell

In view of the current proposed redundancies at Cammell Laird dry docks and the general level of unemployment on Merseyside, as well as the factors to which the hon. Member for Liverpool, Wavertree (Mr. Tilney) referred, such as the failure of Merseyside to respond to the Government's current measures, is it not absurd that Merseyside should be at a disadvantage compared with other development areas?

Mr. Grant

All these matters are being considered, but it is misleading for the right hon. Gentleman to say that Merseyside is at a disadvantage. In fact, under the Industry Act Merseyside is entitled to higher benefits than ever before; this is acknowledged in the submission by the Merseyside representatives.

Mr. Heffer

Would not the hon. Gentleman agree that one of the problems which is developing is the so-called bad image of industrial relations on Merseyside? Has his attention been drawn to the fact that, at the ex-Fisher Bendix factory, which had a sit-in earlier last year, the new management says that these workers are the best it has ever had in any part of the country? Is it not a lot of rubbish to suggest that bad industrial relations are responsible for the bad management, when, in certain industries, on Merseyside, it is the management that has caused industrial relations problems?

Mr. Grant

There is no doubt that Merseyside suffers from a bad image over industrial disputes. The Government would like to see this corrected by a co-operative effort among Government, management and employees. I am certain that the hon. Gentleman will be anxious to co-operate in this respect.

Mr. Benn

When he gives consideration to this problem, will the Minister also consider the problem of part-time chairmen of companies on incomes of £38,000 who live in Streatham?

Mr. Grant

I appreciate that the right hon. Gentleman for Bristol, South-East (Mr. Benn) is suffering some difficulties at the moment, but I must say that that is not the sort of remark which will help to improve industrial relations.

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