HC Deb 29 July 1974 vol 878 cc27-9
17. Mr. Radice

asked the Secretary of State for Industry on how many occasions since 1st March his Department assisted firms in the Northern Region under Section 7 of the Industry Act.

The Minister of State, Department of Industry (Mr. Eric S. Heffer)

Between 1st March 1974 and 30th June 1974, 59 offers of assistance totalling £29,000 in loans and £1,950,000 in grants have been made to firms in the Northern Region under Section 7 of the Industry Act. These offers involve about 4,000 additional jobs in projects estimated to cost in total £27 million.

Mr. Radice

I thank my hon. Friend for that answer. Does it not show that the Government are using their powers under the Industry Act in a progressive manner? Is my hon. Friend aware that the doubling of the regional employment premium is widely welcomed in the development areas?

Mrs. Kellett-Bowman

No.

Mr. Radice

Does he accept that it is recognised as a further indication of the Government's concern with regional policy?

Mr. Heffer

My hon. Friend is correct. The decision of the Government to double the regional employment premium has been welcomed in the regions. My hon. Friend will also know that we are deeply concerned to improve the employment position in the regions. We want to amend the Industry Act at the earliest possible moment to improve the scope for regional development.

Mr. Blaker

Does the Minister agree that more money will be available for that purpose when a regional development fund is set up within the EEC? Will he assure the House that his right hon. Friend recognises that a regional development fund is an essential part of the Community?

Mr. Heffer

Obviously the hon. Gentleman is not aware that no decision has been made by the EEC regarding the regional development fund. In any case, there is no guarantee that anything that we might get from such a fund would be in addition to what we are already doing. No decision has yet been taken on this matter. That is quite clear from an EEC instrument. The whole matter is under discussion.

Mr. Urwin

The Northern Region will accept with gratitude the information that has been given by my hon. Friend. What were the comparative figures in a similar accounting period during the time of his predecessor? Is he completely satisfied with the rate of progress that has been made since 28th February?

Mr. Heffer

Without notice I could not give the exact comparative figures, but I am not and never will be satisfied until we reduce unemployment in the regions to a very low level.

Mr. Heseltine

Surely the hon. Gentleman will agree that, as the figures he has given are all firm offers, every one of the applications involved must have been in before the last General Election within the framework created by the Conservative Government.

Mr. Heffer

No one is suggesting that we are not continuing with the Industry Act. We have made it clear that we are doing so. But we want to improve upon it and also improve the general situation even more than we are able to do now.

Mrs. Kellett-Bowman

Is the hon. Gentleman aware that while the doubling of regional employment premium may have been welcomed in parts of the North, it has been deeply deplored in parts of the North-West, such as my constituency of Lancaster, where unemployment has risen from 3 per cent. last month to 3.6 per cent. this month? Is he further aware that my constituents are even more concerned by his letter to me of 22nd July, in which he outlined clearly a distinct change of policy with regard to the granting of industrial development certificates? From now on they are to be biased virtually wholly in favour of development and special development areas, which makes it much more difficult for intermediate areas such as mine.

Mr. Heffer

The hon. Lady is not correct in suggesting that the IDC policy is not also directed towards helping intermediate areas. She ought to understand the position. She should read my letter. The IDC policy has been tightened up, but it is clear that there is need to assist other areas as well as development and special development areas. [Interruption.] I understand the hon. Lady's out-burst, but I assure her that the doubling of the REP has been fully supported, not only by the TUC but by industry itself.

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