HC Deb 10 April 1978 vol 947 cc964-6
17. Mr. Kenneth Clarke

asked the Secretary of State for Industry whether he intends to have further discussions with the European Commission on the future of the European Regional Development Fund.

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

Discussions are still continuing at official level in order to resolve outstanding questions concerning the allocation and administration of the fund for the period 1978 to 1980.

Mr. Clarke

Does not the Minister agree that this fund would have been developed very much further to the great advantage of the British regions if the British Government had adopted a Community approach to this problem and, for example, ceased to insist that all payments should be made to the Government and not to the industries concerned? Will he say what steps are being taken to speed up the present discussions and whether the Government intend to support the proposal that some of the funds should be outside the national quota system, with direct payments by the Commission to industrialists who want to make the investments?

Mr. Williams

I do not accept the hon. Gentleman's interpretation. Before we allow a non-quota section to be set up, which would be outside the control of individual Governments, it is extremely important that we should ensure precisely for what purpose the money will be used and by what criteria it will be allocated.

Mr. Hoyle

Does my right hon. Friend agree that it is not much use having regional funds if our industry is undermined by foreign imports? What talks did he have in Japan with Japanese industrialists? Did he have talks about the GEC-Hitachi talks and the Rank-Toshiba merger talks, in view of the crisis in the electrical consumer industry?

Mr. Williams

My hon. Friend will appreciate that it is not the practice of the Department to reveal details of discussions with individual firms. I am sure that he will understand the circumstances. However, I took every opportunity to emphasise to the Ministry of International Trade and Industry, to business men and to the Japanese equivalent of the CBI the importance that we place on the Japanese recognising that trade has to be a two-way system and that if they want continued access to our markets they have to ensure that we get extra access to theirs.

Mr. Dykes

Will the right hon. Gentleman reconsider his rather negative answer to my hon. Friend the Member for Rushcliffe (Mr. Clarke)? Should not the fund be much larger to enable it to make a significant impact in co-ordinated European terms to the less developed areas of all the countries, including Britain, and should not companies and local authorities be allowed to apply direct?

Mr. Williams

I do not wish to be offensive, but the hon. Gentleman seems to misunderstand. The fund's total size has already been decided, and within the fund will be incorporated the non-quota section. Even if we had agreed to a non-quota system at this stage, the sum would not be any larger. As I have said, the total sum has been agreed. There is still the critical question of sovereignty in regional policy, and regional policy has for far too many years dominated the thinking of British Governments. I shall not surrender power over regional policy, and I want to be sure that the House controls the regional development fund.