Industrial Development Certificates (Hansard, 20 October 1975)

§ 15. Mr. Tomlinson
asked the Secretary of State for Industry if he has any plans to review industrial development certificate policy; and if he will make a statement.

§ 18. Mr. Moate
asked the Secretary of State for Industry if he has any plans to review his policy on industrial development certificates.

§ Mr. Gregor Mackenzie
I have no plans for general alterations in the basis of operation of the control. As I said in a written reply to my hon. Friend the Member for Newham, South (Mr. Spearing) on 13th October, I am considering a limited modification of the policy in relation to speculative replacement developments.

§ Mr. Tomlinson
In the review, will my hon. Friend bear in mind the special problems of the West Midlands at this moment? It has always been accepted that the West Midlands is an area of great prosperity, with relatively low unemployment, but the region is going through a period of severe recession, which is affecting unemployment figures far more severely than in many other parts of the country. Is my hon. Friend aware that IDC policy in its present form will do nothing to help?

§ Mr. Mackenzie
My hon. Friend may know that I had some useful discussions last week with a number of people in the West Midlands. The matter that he has raised was one of the subjects raised with me on that occasion. I think that it would be wrong completely to scrap IDC policy as is suggested by many people throughout the country. To do so would be foolish. However, we have always exercised IDC policy with a degree of flexibility. If my memory serves me right, in the West Midlands only four such applications have been refused in recent times.

§ Mr. Moate
Does the Minister not consider it unfair that in the South-East the IDC limit is set at 5,000 square feet? Does he recall that in part of my constituency there is an unemployment rate of 7.8 per cent., as a result of the problems of the paper industry and other industries? Would it not be better to have a fair system of IDCs applied equally throughout the whole country?

§ Mr. Mackenzie
We try to follow an IDC policy which is fair throughout the country. When we are discussing regional policy, be it IDCs or assisted areas, we must bear in mind that we have to deal with fundamental questions rather than job difficulties created by the current recession.

§ Mr. Tinn
However sympathetic my hon. Friend may be to areas which are bearing the brunt of unemployment for the first time, does he recognise that his reply is welcomed by those of us who would wish to impress upon him the importance of not forgetting the long-term problem of unemployment in areas which have hitherto always borne a heavy burden? We welcome the indication that the Government will not weaken their resolve to assist such areas.

§ Mr. Mackenzie
I think I said earlier that there was no intention to abandon the control which has existed over the years. That would be detrimental to assisted areas, and, in particular, the sort of area represented by my hon. Friend.

§ Mr. Eyre
Reverting to the remarks made about Meriden, will the hon. Gentleman remember that unemployment in the Birmingham area is now more than 7 per cent.? That being so, the West Midlands represents the area with the most rapidly growing unemployment. It is acknowledged by both sides of industry—the trade unions are joining strongly in this view—that it is essential that new industrial investment be attracted to the area if we are not to suffer serious and growing unemployment in the future. Will the hon. Gentleman bear all those points carefully in mind in his review?

§ Mr. Mackenzie
I indicated that I had a series of useful meetings last week with a number of people in the West Midlands. The whole question of IDCs was put to me. I indicated that uppermost in our minds must be the assisted areas. We are conscious of the problems of the West Midlands, and we are operating our policy with a degree of flexibility which I hope will find acceptance throughout the House.