HC Deb 22 October 1973 vol 861 cc680-2
15. Mr. Marten

asked the Secretary of State for Trade and Industry how many new jobs have been created as the result of Common Market investment in the United Kingdom since 1st January 1973; in which areas the investment has been made; and what grants have been paid in respect of such investment.

Mr. Peter Walker

The Department is aware of 39 firms with parent companies in other Common Market countries which, since 1st January 1973, have taken decisions to set up or expand operations here. These plans could eventually provide about 5,000 new jobs. I will circulate a regional analysis in the OFFICIAL REPORT. They represent, however, only a small part of total investment in the United Kingdom stimulated by our entry into the EEC. Information about regional development grants is not available in the form requested.

Mr. Marten

But were all those investments actually from the Common Market into this country? My right hon. Friend mentioned subsidiaries. Will he clarify that point? Secondly, will they receive the same grants as the British businessman investing here receives?

Mr. Walker

The answer to my hon. Friend's question about grants is, "Yes". In respect of the firms, these are 39 firms with parent companies in the Common Market. I am sure that hon. Members on both sides will be delighted at the announcement by Hoover last week, for example, that it is creating many new jobs in this country, which would not have been the case had we not been a member of the Community.

Mr. Baxter

Will the Minister make a statement at an early date, in view of the answer given to Question No. 9? The right hon. Gentleman's colleague said that the banks would not receive any interest on certain deposits with the Government. Under what regulations or statute is such a policy being pursued? In view of the disquieting nature of that statement, will the Minister take an early opportunity to present the Government's policy on the whole question of investments?

Mr. Walker

I am sorry that the hon. Gentleman was not called for a supplementary question on the earlier Question, but his remarks have nothing to do with the Question before us.

Mr. Scott-Hopkins

Does not my right hon. Friend agree that the regional policy to be brought in by the Common Market on 1st January next will do a great deal to stimulate investment both from this country and from Common Market countries in Britain, to the great benefit of people in such development regions as Scotland, the North-West, the North-East, Wales, and so on?

Mr. Walker

There is no doubt that as a result of our membership of the Common Market there is far more interest in investing in Britain than would otherwise have been the case, from countries both inside and outside the Community. It is also true that the regional policy will be of assistance in that respect.

Mr. Benn

Is it not a fact that overall investment has dropped 17 per cent. since 1970, though investment intentions are supposed to be moving upward? Second, does the Secretary of State intend to seek the views of Parliament on the proposed Common Market regional policy before final agreements are reached on it by British Ministers?

Mr. Walker

It is certainly true that investment was dropping fast in about 1970. No one contributed more to that trend than did the right hon. Gentleman. I am pleased to say, now that we are three years away from the right hon. Gentleman's endeavours, that there is, as he says, a considerable upturn of confidence.

Following is the information:

Regions New Jobs
Scotland 2,700
Wales 450
Northern 420
Yorkshire and Humberside 450
North Western 60
West Midlands 70
Eastern 860
London and South Eastern 85
South Western 15