HC Deb 23 January 1978 vol 942 cc963-5
21. Mr. Edwin Wainwright

asked the Secretary of State for Industry if he will take steps to offer greater inducements to private and nationalised industries to provide new manufacturing jobs in the South Yorkshire districts where large pockets of high unemployment have existed over a number of years.

Mr. Cryer

South Yorkshire already benefits from substantial Government assistance to industry, including selective financial assistance, regional development grants on buildings and advance factories. The latest advance factory programme, announced in November, included three units in Goldthorpe and one in Barnsley, which will help areas with high unemployment. The Government do not consider that an increase in the incentives already available would be justified.

Mr. Wainwright

Does my hon. Friend realise that, no matter what the Government have done over the past few years, there has been no help towards combating the large unemployment that exists in these pockets, especially in the Mex borough and district employment exchange area? If the present system cannot be of benefit in reducing unemployment in such areas, should the Government not consider South Yorkshire as a special development area? If that cannot be done, let us have mini-special development areas, such as Mexborough, where unemployment is very high.

Mr. Cryer

All parts of the country are experiencing higher levels of unemployment than are acceptable because of the general economic situation, and that is undoubtedly influencing the position in South Yorkshire. But the incentives available have done something to counteract the situation. In Mexborough, for instance, there have been 12 projects which have received offers of regional selective assistance and are expected to create some 800 jobs. We are constantly examining ways to combat the level of unemployment. It depends to some degree on private investment by private enterprise in an economy which is largely private enterprise, and our incentives and inducements are an attempt to provide that investment.

Mr. Budgen

Will the Under-Secretary agree that it is uncertain whether regional policies will do anything to help depressed areas such as South Yorkshire but that it is overwhelmingly certain that regional policies do a great deal of harm to once properous areas such as the West Midlands?

Mr. Cryer

The regional policies have been undertaken in this country for many years, and certainly since the last serious depression in the 1930s. It was because of the very high levels of unemployment which occurred in the regions—for example, on Merseyside and Tyneside—that successive Governments have introduced regional policies. There is no question whatsoever that if there had not been a progressive regional policy developed and maintained by the present Government unemployment in those areas would have been a great deal worse than is complained of at present.

Mr. Woodall

Did my hon. Friend see a BBC North programme on television last year called "No Jobs for Spanner", filmed in the South Kirkby area in my constituency, where young male unemployment is over 12.8 per cent.? It is all very well announcing advance factories but what is wanted is real assistance such as has been suggested by my hon. Friend the Member for Dearne Valley (Mr. Wainwright).

Mr. Cryer

I understand very well the representations of my hon. Friend the Member for Hemsworth (Mr. Woodall), and this is a very serious matter, but the fact is that already very large and significant sums of assistance are being given. South Yorkshire was rightly included in the advance factory programme, and we shall have to see just how well these situations work out and whether private enterprise answers the call which my hon. Friend and other hon. Members are making for investment to take place in order to provide jobs.

Mr. Tim Renton

On a point of order, Mr. Speaker. Is it not unfortunate that no Question has been reached on the subject of the steel industry and the great problems affecting the British Steel Corporation?

Mr. Speaker

The hon. Gentleman's point of order should be raised at the end of Question Time. I point out to him that we reached Question No. 21.