HC Deb 02 August 1976 vol 916 cc1195-6
12. Mr. MacGregor

asked the Secretary of State for Industry whether he will review the classifications for intermediate areas and unassisted areas, in view of the fact that there is now higher unemployment in some of the latter than in some of the former.

Mr. Alan Williams

Regional policies are concerned with long-term structural unemployment and associated problems. Recession has had different effects in different parts of the country, and these effects have obscured the underlying problems in particular areas.

Mr. MacGregor

In view of the large fluctuations in unemployment, will the Minister be prepared to consider a more flexible system for dealing with proposals in unassisted areas, where this may have an important but very local employment connotation? Is he aware that other things, apart from regional development assistance, hang on development area status, such as grants for tourism? Will he look more flexibly on these matters as a whole?

Mr. Williams

It is difficult to answer Opposition Members when they say that they want public expenditure cuts and at the same time say that they want to extend the areas where expenditure will be applied. I realise that there is a real concern in many parts of the country that are experiencing unprecedented levels of unemployment. For that reason we are operating the IDC policy flexibly and using our selective powers as sensibly as possible. In general terms, I do not envisage any major change of boundaries, as intimated in the Question.

Mr. McNamara

Is my hon. Friend aware that for "intermediate and unassisted areas" one could say "intermediate and development areas"? That is particularly true in the Humberside area. Is my hon. Friend aware that in many parts of the intermediate areas there is chronic, persistent and structural unemployment that is higher than in the development areas? Is any of the assistance that is going to the development areas, in terms of REP, for example, likely to go to the intermediate areas? When does he hope that his Department's review of regional policy will be completed, so that we can see where we stand?

Mr. Williams

My hon. Friend is aware that recently I announced measures to help Humberside, where several major projects are going ahead that will provide a massive increase in jobs in the construction industry. It must be borne in mind that Humberside's fundamental difficulty has not been that it is intrinsically unattractive to industry but that it has been remote from the major transport networks. The changes that have taken place, in terms of access to the motorways, as a result of bridge construction, and so on, will substantially improve the position of the area.

In view of the new situation that arose as a result of the fisheries decision, after consultations with those of my hon. Friends who represent constituencies in Hull and Grimsby I have had further discussions with my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs and my right hon. Friend the Minister of Agriculture, Fisheries and Food. I hope to be able to announce one or two minor additions to our programme in the near future.