HC Deb 28 April 1980 vol 983 cc951-3
7. Mr. Dormand

asked the Secretary of State for Industry if he is satisfied with the progress being made in attracting industry to the Northern region; and if he will make a statement.

The Minister of State, Department of Industry (Mr. Adam Butler)

I am confident that the Government's regional and other policies will succeed in promoting industry and employment in the North as elsewhere.

Mr. Dormand

Is the Minister aware that in spite of all the fine promises during the election campaign last year the rate of unemployment in the Northern region, at 9.5 per cent., is the highest in the country? In those circumstances, will his right hon. Friend reverse his monstrous decision to slash the grant to the North of England Development Council? Is he aware that that was the biggest cut of its kind? When will the Government take the problems of the North seriously?

Mr. Butler

The hon. Gentleman makes a serious point about unemployment in the Northern region. However, if he is fair he will draw the attention of his constituents to the position as it developed during the final years of the previous Administration. Nevertheless, there is a problem, and that is why, particularly, we have concentrated more development aid potential on the North.

I think that the hon. Gentleman will know that after 1982 about 90 per cent. of the Northern region will still be anassisted area. That will be the highest concentration of any region in England and will be of immense benefit. I think that the hon. Gentleman has received a letter about the North of England Development Council from my noble friend Lord Trenchard, explaining the circumstances of the Government's attitude. The grant, of course, will continue for at least three years, subject to some agreement on arrangements between the Government and the local authorities.

Dr. John Cunningham

If the Minister means what he says about the Northern region, why have the Government decided to end the cost escalation scheme for British Shipbuilders, which plays such a crucial part in employment throughout the Northern region? There is no evidence of any opposition from the EEC. France is continuing such a scheme for its merchant fleet. British Shipbuilders has been singled out for a further reduction in assistance. Why was not the Minister more candid about that decision in the debate a few days ago?

Mr. Butler

I do not think that I was lacking in candour during that debate. The point is that the amount of assistance to the British shipbuilding industry is considerable, as was noted in that debate. The intervention fund is being used to its maximum and the home credit fund is continuing to be used strongly. Therefore, the largest part of assistance is still available to help a situation which is, thank Heaven, improving marginally.

Mr. Robert C. Brown

If the Minister is not lacking in candour, he has certainly been badly briefed. Is he aware that last week 2,300 redundancies were announced in the Northern region? That is not a phenomenon. It is becoming a regular weekly event. Despite what the Minister might say about what happened during the previous Labour Administration's term of office, the period since last May has been disastrous for employment in the North.

Mr. Butler

I thought that I had been extremely candid in recognising the seriousness of the problems. Of course they are there. However, they will not be wished away. Some assistance through the regional development grant will develop employment in the region. That will help, particularly, the establishment of new businesses. I am glad to say that in that respect there are encouraging signs in the starting up of small businesses. The position is not entirely bad. The hon. Gentleman will know, I am sure, that new jobs have been created in recent years, thanks to the incentives that are available. The future growth prospects of the region depend upon those new businesses.