HC Deb 15 January 1979 vol 960 cc1301-2
5. Mr. Canavan

asked the Secretary of State for Industry how many planning agreements have now been reached (a) in the public sector and (b) in the private sector.

11. Mr. Hoyle

asked the Secretary of State for Industry how many planning agreements have been signed ; and how many are in the process of negotiation.

Mr. Varley

Progress in establishing voluntary planning agreements, as announced by my predecessor at the time of the Second Reading of the Industry Bill 1975, has been disappointing.

Mr. Canavan

As it is obvious that most companies are dragging their feet by failing to negotiate planning agreements, which are essential for our industrial strategy and for the extension of industrial democracy, will the Government make planning agreements compulsory, as was the original intention of Labour Party policy in 1974?

Mr. Varley

There has been hostility to planning agreements from the CBI and others, and the time will come when the Government will have to review the situation.

Mr. Nelson

Is the Secretary of State aware of the uncertainty caused by the report in the Financial Times last week that the Prime Minister is moving in favour of introducing compulsory planning agreements? Will the right hon. Gentleman answer his hon. Friend the Member for West Stirlingshire (Mr. Canavan) and state clearly whether the Government intend to introduce such agreements? Surely compulsory agreements are not only a contradiction in terms, but will be extremely damaging to British industry.

Mr. Varley

I am not sure that they would be damaging to British industry. I am prepared to concede that they will not be a panacea, but if, as I am often told by Conservatives, we shall get the best from our investment and technology only by winning the support of trade unionists and workers, an important element would be an approach to the planning agreement arrangements. I hope that, even at this late hour, the CBI and others will review their policy and reduce their hostility . All I am saying is that if they do not it will be within the scope of the next Labour Government to decide whether they should take measures to strengthen that part of their industrial policy.

Mr. Kenneth Clarke

Does the Secretary of State accept that industry has voluntarily rejected the entire concept of planning agreements? Will he now answer the question and say whether it is the Government's policy, as it is the official policy of the Labour Party, to make planning agreements compulsory?

Mr. Varley

The CBI has rejected the policy, and I believe that it is mistaken in doing so. Although it will not be possible within the current Session of Parliament to make planning agreements compulsory—though perhaps there is support in the House for such a measure—I assure the hon. Gentleman that it is an aspect of our policy which will have to be strengthened and that one day we shall come before the House to strengthen it.