HC Deb 04 November 1974 vol 880 cc675-6
11. Mr. Hal Miller

asked the Secretary of State for Industry whether he will raise the limit for industrial development certificates in the West Midlands.

Mr. Heffer

No, Sir. The Government have strengthened the IDC control in order to ensure that the needs of the assisted areas receive first priority. Nevertheless, each application for an IDC is considered on its merits.

Mr. Miller

Is the Minister aware that there is no prospect of assisting the regions if the industrial heart of the West Midlands is allowed to decline? I hope that I may draw the hon. Gentleman's attention to the report of the West Midlands County Council entitled "Time for Action".

Mr. Heffer

I have seen that report. It is being studied by officials in my Department and we shall give a reasoned reply to it at the earliest possible moment. We in the Department understand very well that there are problems also within areas that are not part of the region, and we are considering the position.

Mr. Golding

Is my hon. Friend aware that many Members on this side of the House are concerned about the change in IDC policy? Is he also aware that concern is expressed in the West Midlands that unemployment is rising? We fear that we shall face great problems if these matters are not dealt with shortly.

Mr. Heffer

The Government have brought back the IDC levels to what they were between 1970 and 1972. We have not gone as far back as the position that existed prior to that date. We have kept a moderate position between both levels, but we stress that our greatest concern about regional policy is to get various industries into the regions. On the other hand, we recognise that there are growing problems in areas like that of my hon. Friend, and we are taking them into consideration.

Mr. Anthony Grant

If, as the Minister says, the object of the exercise is to encourage firms which have IDCs refused to go to the assisted areas, is he aware that all the evidence shows that the small firms do not move at all? Therefore, the purposes is defeated. Will the hon. Gentleman have a complete review made of this situation, not only in the West Midlands, but throughout the country?

Mr. Heffer

I do not think that the hon. Gentleman is correct in saying that there is no evidence that firms which do not get IDCs do not go into the regions. If the hon. Gentleman knows of a particular case where there has been refusal of an IDC and therefore there has not been any development, will he raise the matter with me?