HC Deb 01 March 1976 vol 906 cc891-2
3. Mr. Rooker

asked the Secretary of State for Industry if he will consider relaxing IDC control in the West Midlands.

Mr. Gregor Mackenzie

The industrial development certificate control continues to have an important part to play in the Government's regional policy, and a temporary suspension or relaxation of the control would not be justified.

Mr. Rooker

Will my hon. Friend accept that the control is almost nonexistent in the West Midlands, because the number of refusals is very small? Nevertheless, the fact that the controls are there stops business and industry from seeking to move into the West Midlands. Will my hon. Friend consider again the possibility of a temporary restriction—say, a two years' suspension—to give business men who are talking about not being able to go there a chance to put their money where their mouths are?

Mr. Mackenzie

It is often put to me that IDC control stops firms from making applications, but I have no evidence to support that. I ought to put the matter into perspective. In the West Midlands, only seven applications were refused, and 277 were approved. It is important to bear in mind that these certificates are dealt with on their respective merits, in relation to the area for which the application is made.

Mr. Hal Miller

Does the hon. Gentleman accept that unemployment in manufacturing industry in the West Midlands is now higher than it is in many of the development areas, including Scotland; that it is of longer duration; and that wages are lower than those paid elsewhere? Will the hon. Gentleman consider what assistance can be given to the region, if he is still unwilling to relax IDC control?

Mr. Mackenzie

My hon. Friends and I are concerned about unemployment in the West Midlands. I sometimes wish that Conservative Members were as concerned as we are about the problem. I say that because they have voted against proposals put forward in this House which would have saved a number of jobs. If Tory Members had their way, we should have lost about 56,000 jobs in the West Midlands alone.

Mr. Stonehouse

How many civil servants are employed in assessing these applications? As so few are turned down, as unemployment is so high, and as so many firms have been prevented from developing more efficient units in the past, should not this policy be scrapped?

Mr. Mackenzie

IDC policy is an integral part of regional policy, which is supported by both sides of the House. I know that when we are in the midst of a recession it is easy to say that we should scrap regional policy, because it does not of itself create jobs, but it would be foolish to scrap the policy in view of the successes that we have had with it over a period of years.

Mr. Heseltine

Is the Minister aware that regional policy is designed to help those regions that are in the most trouble, and that the West Midlands today is an area in more trouble than almost any other region? Will he accept that, far from saving jobs in the West Midlands, the number of jobs has been decimated by the restrictive policies which his Government have pursued?

Mr. Mackenzie

The policy advocated by the hon. Gentleman and his attitude to Chrysler and other firms would have reduced the number of jobs available.