HC Deb 25 April 1977 vol 930 cc693-5
2. Mr. MacGregor

asked the Secretary of State for Industry what is the total sum paid out to date under the Industry Act 1972 and the Industry (Amendment) Act 1976; and, of this, what proportion has gone to areas other than development areas, special development areas and intermediate areas.

The Under-Secretary of State for Industry (Mr. Bob Cryer)

Because of the differing nature of assistance measures and the wide geographical spread of undertakings assisted, no precise breakdown between assisted and non-assisted Areas is feasible. Payments under all the measures defined by the Industry Act 1972 total some £1,975 million. The shipbuilding industry, through loans under the home credit scheme, construction grants and other forms of assistance, accounts for more than £600 million, the benefits of which will be available mostly for the assisted areas. Of the remainder some £1,025 million has been paid in regional development grants and £170 million under Sections 7 and 8 towards investment wholly in the assisted areas. For projects wholly outside the assisted areas, the total assistance paid of all kinds has been £60 million. But some £110 million has been paid under Sections 7 and 8 to assist undertakings with activities in both the assisted and non-assisted areas.

Mr. MacGregor

Is the hon. Gentleman satisfied that we are making the most effective use of these vast sums, particularly in relation to the overall benefits to be gained from the now almost exclusive concentration on the assisted areas? What studies has his Department undertaken into the costs and benefits experienced on these matters? If none has been done to date, is not now an appropriate time to start?

Mr. Cryer

The benefit which is going out to private enterprise and public industry is examined and scrutinised constantly. But it is not true, as the hon. Member suggests, that the non-assisted areas are not gaining benefit. Although the assisted areas still have the gravest problems, as I am sure the hon. Member will recognise, in that they have the highest levels of unemployment, the fact is that large amounts of money have been going to both assisted and non-assisted areas. For example, the accelerated project scheme produced a total promised investment of £640 million for grant aid of £84 million, and this, of course, applies to both assisted and non-assisted areas.

Under Section 8, which applies to both assisted and non-assisted areas, assistance has been going at the rate of something like £3 million a week, and the bulk of that assistance probably has effect in the non-assisted areas. Therefore, this considerable amount of money, as the hon. Member has pointed out, has been saving jobs to a considerable degree.

It would be of great interest—[HON. MEMBERS: "Too long."]—to the House to know whether the Conservative Party intends to produce a policy of cutting this assistance.

Mr. Speaker

We are going rather slower today. We had better try to do better.

Mr. Henderson

What estimates were made of the changes in employment that would result from the Government's decicision to downgrade Aberdeen from development area status?

Mr. Cryer

There was a very careful review by the Government of the alteration to the recent changes in development area status and the downgrading to intermediate area status. The hon. Member can rest assured that the interests of all parts of the United Kingdom are taken very carefully into account in making these assessments.