Regional Policy (Hansard, 28 June 1976)

§ 1. Mr. Ashley
asked the Secretary of State for Industry if he is satisfied with the operation of his regional policy.

The Minister of State, Department of Industry (Mr. Alan Williams)
Yes, Sir. Regional policy has proved itself to be an effective instrument for tackling the problems of structural unemployment in the assisted areas.

§ Mr. Ashley
Does my hon. Friend realise that he caused great resentment by his attempt to dissuade Staffordshire from seeking investment abroad? North Staffordshire has special problems of economic development for which Government assistance is required. If that assistance is not forthcoming, it must feel free to look to other quarters for investment.

Mr. Williams
I am surprised that it causes resentment because, as I pointed out, in cost benefit terms it seems bettter to concentrate expenditure—especially at a time of public expenditure constraint—on promotional work within this country rather than abroad. The Department's experience is that areas get better results from such expenditure in this country, and that was the advice that was given. The regions were not instructed.

§ Mr. Hugh Fraser
Will the Minister publish the letter which was sent to him by the Chairman of the North Staffordshire Development Association saying what success it had had, and will he apologise to the association for one of the stupidest comments ever made by any Minister in this Parliament?

Mr. Williams
I am surprised that the right hon. Gentleman should take such a peculiar line and get so heated about it. All I said was that, when hon. Members on both sides of the House are asking for good value for public expenditure, it is better to spend money in this country than abroad, and that is what our experience shows. But the decision is left to the regions. I do not understand why the right hon. Gentleman is so irritable—I must put it down to the temperature.

§ Mr. Madden
Does my hon. Friend agree that our regional policy needs to be more selective and that in giving assistance account should be taken of 3 factors other than unemployment, including the migration of population and the decline of traditional industries such as the textile industry? Does my hon. Friend also agree that the National Enterprise Board should have a more positive role in regional policy, particularly in the creation of new areas of economic activity within the regions?

Mr. Williams
My hon. Friend is correct in saying that there is no single objective for regional policy. Unemployment is the most obvious criterion by which need is judged, but it is not the sole criterion used by the Government. At different times other objectives could be even more important than the employment objective. Hon. Members will recognise that, in the present context of recessional unemployment superimposed on structural unemployment, the Government's policy has to be to eliminate the unemployment problem.

§ Mr. Tom King
In considering a more selective approach to regional assistance, the Public Expenditure White Paper stated that the regional employment premium was under review. Is the purpose of the review to consider a more selective application of the regional employment premium?

Mr. Williams
I am sure that the hon. Gentleman will appreciate that that supplementary question is for my right hon. Friend the Secretary of State for Employment. I shall draw it to his attention.