North-West (Hansard, 7 July 1980)

§ 5. Mr. Straw
asked the Secretary of State for Industry whether he has any proposals to alleviate the economic and social consequences of job losses in industries, other than the steel industry, in those areas in the North-West where such losses have been concentrated and substantial.

§ 19. Mr. Arthur Davidson
asked the Secretary of State for Industry, in view of the economic and social consequences of the substantial and concentrated job losses in the North-West, what plans he has to alleviate the deteriorating situation.

§ Mr. David Mitchell
As money supply comes adequately under control and inflation declines, it will be seen that our policies have created the conditions for a sustained revival of wealth and job-creating enterprises throughout the United Kingdom, including the North-West.

§ Mr. Straw
Is the Minister aware that his answer will be found unconvincing in many areas of the North-West and that it runs wholly against the experience of that area over the last 12 months? Is he aware that, while the population of Blackburn is only 2 per cent. of that of the North-West, its increase in unemployment was so great last month that it contributed one in six to the increase in unemployment in the whole North-West region?
Is the Minister aware that, just as in the steel industry, there are in north-west Lancashire and in Blackburn concentrated areas of job loss which require urgent 8 Government attention? What prospect is there of this Government attention being given?

§ Mr. Mitchell
The hon. Member may consider my response to be unconvincing. Time will prove it to have been right. The hon. Gentleman is asking what we can do. In helping to encourage new businesses in the area, including small businesses, we have now entered into an arrangement with the Norwich Union which will ensure that its funds become available for small firms through the use of our counselling service.

§ Mr. Arthur Davidson
Is the Minister aware that, while the money supply is coming under control—if it ever does—thousands and thousands of jobs are being lost day after day, and the people who suffer the loss are not, oddly enough, monetarists? Will the hon. Gentleman say how long it will be before he will take some radical action to help an area which has never known as bad a time as it is going through at present?

§ Mr. Mitchell
I understand the problem to which the hon. and learned Gentleman is drawing attention, but he has to accept—I am sure he does—that inflation is the greatest destroyer of jobs that there is, and it is essential that the attack on the causes of inflation should be the Government's first priority.

§ Mr. Fletcher-Cooke
Has my hon. Friend had an opportunity to consider the case of my constituent, a small business man in Blackburn, who sought the help of the counselling service for his industry and was told by the Department that he would be able to get some assistance if he moved into a special area but that he could not now get it in Blackburn? Will my hon. Friend bear in mind that sort of case when he is considering how regional policy is to work?

§ Mr. Mitchell
The whole purpose of our regional policy is to concentrate help on the areas of greatest need. That inevitably means that there is less help concentrated on the areas of lesser need.

§ Mr. McNally
Has the Minister seen the letter from the Manchester chamber of commerce which suggests that the true crisis in the North-West is being masked temporarily by a cutback in investment, training and apprenticeships and stock? Is he aware that, unlike the hon. Member 9 for Knutsford (Mr. Bruce-Gardyne), many workers in my constituency, in Fairey, Ferranti, British Aerospace and ICL have every confidence in public investment to protect jobs and back winners?

§ Mr. Bruce-Gardyne
They should read the record.

§ Mr. McNally
They have.

§ Mr. Mitchell
If the. hon. Gentleman wants to do something constructive to help to prevent unemployment, he might care to go back to his constituency and explain that if workers ask for more wages for producing the same amount of goods, the goods will cost more and will become less competitive and jobs will be lost.

§ Mr. Trippier
Will my hon. Friend accept my thanks for successfully negotiating a deal with the English Industrial Estates Corporation whereby it will invest in small workshop units up to 2,500 sq. ft. and for negotiating terms with the Norwich Union whereby it will invest its money, not taxpayers' money, in small firms? What interest has been shown in these two schemes?

§ Mr. Mitchell
We are expecting to start over 1,000 small units of up to 2,500 sq. ft. in assisted areas during this year. The Norwich Union scheme, like the Post Office scheme, is in its early stages, but a good deal of attention has already been aroused.