HC Deb 10 July 1978 vol 953 cc1017-8
16. Mr. Radice

asked the Secretary of State for Industry whether he is satisfied with industrial progress in the Northern region.

Mr. Cryer

We shall continue to do everything practical to promote industrial investment and employment in the Northern region. The north's share of the United Kingdom's investment in manufacturing has increased during the past eight years and regional policy has made a useful contribution to this increase.

Mr. Radice

I thank my hon. Friend for that reply. I accept the difficulties of running a regional policy at a time of recession, but does he agree that there is now a case for a new ingredient in regional policy in the Northern region? Does he agree that there is a strong argument for a northern regional development agency matched by regional, democratic control?

Mr. Cryer

That view has been promoted by representatives of the Northern Region. But we are satisfied with our regional policy. It represents an intervention in the economy against the private enterprise doctrines of the Opposition, who would seek to abandon regional policy. We have made the whole of the region either a special development area or a development area. In 1976–77 £237 million was spent in the Northern region. But we are satisfied jobs and retain manufacturing industry there. We are always open to further representations.

Mr. Anthony Grant

Before the Minister castigates private enterprise too much, will he say whether it is his policy to encourage private enterprise small firms in the Northern region?

Mr. Cryer

We are encouraging small firms in the Northern region, as we are in every assisted area, by a variety of means. On 1st July we introduced the small firms employment subsidy to encourage small firms to take on new employees. The point that I was making earlier was in direct contrast to the view of the Conservative Party—that private enterprise should be left totally alone. If that happened, the regions would be totally denuded because private enterprise would almost certainly drift away from the regions towards London and the south-east. Only through Government support measures has industry developed in the regions with traditionally high unemployment.