HC Deb 18 July 1977 vol 935 cc1127-8
7. Mr. MacGregor

asked the Secretary of State for Industry whether he is satisfied that the present Government schemes for industrial and regional development grants enable the United Kingdom to obtain maximum benefits from membership of the European Economic Community.

The Minister of State, Department of Industry (Mr. Alan Williams)

Yes, Sir.

Mr. MacGregor

Is the right hon. Gentleman aware that some companies—I know of at least two in Norfolk—are unable to get EEC grants, for which they would otherwise be eligible, because they are currently excluded from all British Government schemes? Can he say whether any consideration is being given to a national back-up scheme to overcome this problem?

Mr. Williams

I am aware of the problem. The hon. Member will know that two of the Section 8 schemes—the red meat and the poultry schemes—have made this possible for certain affected sectors of the industry in his area. I am sure that he will also have seen the statement on 15th July by the Minister of Agriculture which forecast such a proposal.

Mr. Blenkinsop

While I welcome the grants and loans which have come from the EEC under these schemes, particularly to the North-East, may I ask my right hon. Friend to give an assurance that such assistance does not simply result in a cut-back of Government grants which would otherwise be available?

Mr. Williams

As my hon. Friend is aware, many of the items we have been able to announce in the past three programmes have been financed from the funds we received from the EEC. My hon. Friend will also note that there is to be a debate later today which is of considerable significance because of the possible impact on regional policy.

Mr. Ridsdale

Why cannot the industrial grants be channelled into North-East Essex, where at present there is an unemployment rate of 10 per cent.? Does the Minister realise that some industry is being tempted away from the area, yet Harwich is one of the most prosperous ports in the country?

Mr. Williams

I suspect that the hon. Gentleman is guilty of what his hon. Friend the Member for Oswestry (Mr. Biffen) called "grubby regional lobbying". May I say how amusing it is for Labour Members to note that while every Tory is against public expenditure in general they all want more of it in their own constituencies.

Mr. Kenneth Clarke

Will there he a quick decision one way or the other on the Commission's proposals to give some regional industrial aid outside the national quotas and outside the constraints set by national schemes? In particular, may we have a quick decision on the Commission's proposals to give special aid to shipbuilding and steelmaking areas and to areas dependent on industries affected by Community policy decisions, such as the fishing industry?

Mr. Williams

The non-quota proposals raise a great many points. I hope to be able to outline them to the House during today's debate. I would like to hear from hon. Members in that context. The House will be aware that these are proposals which have to be discussed and considered by Ministers. The aim is to reach a decision by the end of the year.