Merseyside (Hansard, 13 November 1978)

§ 11. Mr. Kilroy-Silk
asked the Secretary of State for Industry what further steps he is taking to regenerate industry on Merseyside.

Mr. Alan Williams
Industrial investment on Merseyside qualifies for regional assistance at the highest level in Great Britain since we made it a special development area in 1974. I shall continue to do everything practical to promote industrial development on Merseyside.

§ Mr. Kilroy-Silk
Does my right hon. Friend realise that we welcome the additional funds that have been made available to the Welsh Development Agency and the Scottish Development Agency? Nevertheless, given that the level of unemployment on Merseyside is far higher than that in either of those two countries, will he now say what extra resources will be provided for Merseyside through the National Enterprise Board? Further, will he say what would be the economic impact on Merseyside if the Opposition's policies for withdrawing subsidies and other measures were to be introduced?

Mr. Williams
First, I give my hon. Friend an assurance that I shall guarantee that Merseyside is not disadvantaged in regard to resources, and nor will any of the other English regions. The Government 11 have provided £60 million of selective support for Merseyside which has generated nearly £400 million worth of investment in the area in firms such as Ford, YKK, Schreiber, the Co-operative Bank and so on. There is, therefore ample evidence of the Government's willingness to support new ventures in that region.
With regard to the wider issues, I draw the attention of all hon. Members who represent assisted areas to the furtive plans being prepared by the Opposition for the virtual destruction of regional policy. According to a report in the Financial Times and an interview published in the Western Mail, the Conservatives intend so to dismantle the regional development grants that the system will virtually cease to exist. They intend virtually to abandon the IDC policy and the office development permit policy, and they intend, after they come to office—but they will not specify this in advance—to deschedule large areas of Britain.

§ Mr. Heffer
Has my right hon. Friend had discussions with Dunlop Rubber about press statements to the effect that 2,500 jobs at its premises on Merseyside are likely to disappear? Is that a correct statement of the position? If not, what steps are the Government taking to ensure that that does not happen? We cannot afford any further redundancies on Merseyside.

Mr. Williams
Obviously, such a job loss would be a disaster for the area. My officials are in touch with that company at the moment and are trying to establish the precise position. Needless to say, if there is anything which the Department can do to help the company or, indeed, any other company in need in the area, within the guidelines, that we shall do.

§ Mr. Kenneth Clarke
Does the Minister realise that, as he is now obviously interested in studying Conservative policy proposals, he will find that we are prepared to maintain a strong and effective regional policy? Has not the Minister's own experience shown him that a policy based merely on the pouring of public funds into industry when the climate for enterprise is as bad as it is at present is singularly ineffective on Merseyside, in Wales, in Scotland and elsewhere?

Mr. Williams
Is it not fascinating that the hon. Gentleman does not deny the fact—[HON. MEMBERS: "Answer the question."]—that the Conservatives are considering dismantling the financial incentives? The report in the Financial Times makes it clear that they are talking of cutting back as much as £300 million from the £400 million that currently goes on regional development grants. If they get back to office they intend to repeat the criminal error which they committed when they came to office in 1970 and destroyed regional policy.

§ Sir K. Joseph
Is not the Minister part of a Government who withdrew the regional employment premium, against all their declaration and intentions? Is it not true, as my hon. Friend the Member for Rushcliffe (Mr. Clarke) says, that a climate for enterprise will do far more for jobs than the incessant pouring out of taxpayers' money?

§ Mr. Heffer
The right hon. Gentleman must be joking.

§ Sir K. Joseph
Does not the Minister agree that taxes in this country are far too high? Do the Government have any ambition to reduce taxation?

Mr. Williams
I point out to the right hon. Gentleman that the removal of the regional employment premium withdrew £2 per head from firms in the assisted areas and made available £20 per head to the firms that were really in need. Conservative Members say that they want selection. That is selective assistance. I shall not be lectured by the right hon. Gentleman on withdrawing grants. He was a member of the Government who cancelled investment grants in 1970 and had to bring them back again in their Industry Act 1972 because they realised that they had destroyed the policy.