HC Deb 25 June 1979 vol 969 cc11-3
10. Mr. Gwilym Roberts

asked the Secretary of State for Industry what study he has made of fundamental industrial decline in the West Midlands; and what plans he has for counteracting this decline.

Mr. David Mitchell

The Government are promoting industrial development by restoring personal incentives, encouraging efficiency and creating a climate in which industry and commerce can flourish.

Mr. Roberts

Does the hon. Gentleman agree that by almost any criterion the rate of industrial decline in the West Midlands over the last decade is probably greater than that which has occurred in most other parts of the country? Does not he agree that if we are to see economic recovery it is vital that the Government stimulate the development of growth industries in the West Midlands?

Mr. Mitchell

I am grateful to the hon. Gentleman for his condemnation of the record of the previous Government. I assure him that it is the present Government's policy to pursue policies which will stimulate growth and job creation.

Mr. Budgen

Does my hon. Friend agree that the best way to help the West Midlands is to improve the general economic climate of the whole country, to reduce the subsidies which are given to other areas, and not to think up new subsidies for the West Midlands?

Mr. Mitchell

The whole matter of regional policy is currently under review. My hon. Friend's comments will be borne in mind by my right hon. Friend during the review.

Mr. Terry Davis

When shall we see the results of the Government's policies in the West Midlands—this year or next?

Mr. Mitchell

A start on the policies of encouraging incentive, enterprise and growth was made with the Budget. To some extent we shall see those coming through during this year. More will follow later.

Mr. Michael Spicer

Will my hon. Friend consider the possibility that the undoubted decline in the West Midlands is a direct result of the massive amount of taxpayers' money which has been poured into other regions?

Mr. Cryer

Nonsense. Absolute rubbish.

Mr. Mitchell

Following the comment made by my hon. Friend the Member for Wolverhampton, South-West (Mr. Budgen), I assure my hon. Friend that that is one of the points that we shall be bearing in mind.

Mr. Les Huckfield

Is the hon. Gentleman aware that his replies so far have given scant comfort to anyone representing a West Midlands constituency? Is he further aware that because of actions by the previous Labour Government some 250,000 jobs in the West Midlands were either saved or rescued?

Mr. Budgen

They were not saved.

Mr. Huckfield

Is the Minister further aware that in the West Midlands alone at least 120,000 jobs depend on the future of the NEB? Will he look into the possibility of making a statement as soon as possible, in view of the great concern that his replies so far have caused?

Mr. Mitchell

My answers so far will have given considerable encouragement to those in industry and commerce who are concerned about the real long-term creation of jobs and the growth of businesses. Indeed, the hon. Member will know that, looking around the country's economy as a whole, one finds that the impact of the general economic situation on the regions is the largest single cause for change and hope for the future.