HC Deb 02 August 1976 vol 916 cc1201-2
17. Mr. Stan Crowther

asked the Secretary of State for Industry what steps he proposes to take in order to use the National Enterprise Board as an instrument of regional policy, with particular reference to the establishment of industrial undertakings with long-term growth potential in areas of high unemployment.

Mr. Varley

The draft guidelines for the board require it, wherever possible, to expand and develop its operations in areas of high unemployment. The board is particularly concerned to establish undertakings with long-term growth potential. The additional funds that we shall be making available to it next year will be useful for this.

Mr. Crowther

I hope that my right hon. Friend will accept from me that that announcement will be very welcome in my constituency. Does he agree that this type of operation, with the NEB directly involving itself as a public enterprise in manufacturing industry, as distinct from merely propping up derelict private enterprise firms, will not only greatly assist in solving the unemployment problem in areas like mine but may also contribute to reducing the balance of payments deficit by producing goods that are now being imported?

Mr. Varley

I agree with a great deal of that. In the seven months that the National Enterprise Board has been in existence, it has made a very good start. It is seizing all the promising opportunities to get into partnership with new ventures. It is certainly our intention, as the Labour Party document "Labour in Industry" said, that it should not become the repository of "lame ducks".

Mr. Heseltine

As the Secretary of State constantly tells us that he does not know what additional funds will be available for the NEB next year, how can he know that these funds will be of help to the regions?

Mr. Varley

The hon. Gentleman is extremely schizophrenic. First of all he tells us that the NEB should be abolished and should have no further funds, and then he says that it should have funds but complains that we are not being precise about the matter. The NEB will have funds and in due course we shall tell the hon. Gentleman and the House what they will be.