West Midlands (Hansard, 7 July 1980)

§ 13. Mr. Hal Miller
asked the Secretary of State for Industry what representations he has received about the state of industry in the West Midlands.

§ 20. Mr. Winnick
asked the Secretary of State for Industry if he will now take steps to reverse the industrial decline in the West Midlands.

§ Mr. Adam Butler
In addition to questions tabled by hon. Members, my right hon. Friend has received a number of representations from local authorities and other bodies about the industrial situation in the West Midlands. Industry in that region will benefit from the national measures that the Government are taking to put the economy on a sound footing.

§ Mr. Miller
Is my hon. Friend aware that in spite of the fillip to confidence given by the reduction in interest rates this week, there is a widespread feeling in industry in the West Midlands that it is competing on an unequal basis with many imports? Is he further aware that that feeling is aggravated by the suspicion that industry is bearing the brunt of the squeeze on the money supply while public expenditure goes unchecked?

§ Mr. Butler
My hon. Friend will know that his constituents' supposition is wrong in that the money supply is very much under control. However, he is right in pointing to the need for that control as a benefit to the private sector.

§ Mr. Winnick
Is the hon. Gentleman aware that hardly a day passes without news of further redundancies in the West Midlands, and that dole queues are becoming longer and longer in a once prosperous region? Bearing in mind the remarks made over the weekend by the Minister of Agriculture, Fisheries and Food at the Tory Reform Group, is that not an additional reason why the Secretary of State for Industry should be sacked to ensure some economic and industrial sanity?

§ Mr. Butler
The hon. Gentleman knows that the rate of inflation is the greatest enemy of business, whether it is in the West Midlands or elsewhere. It is that battle that the Government are starting to win.

§ Mr. Grieve
Does my hon. Friend agree that the salvation of industry in the West Midlands, as elsewhere, lies more than anything else in greater productivity per man and greater productivity at work? Does he further agree that, however much some may complain of imports from abroad, any protective measures would be disastrous for a 20 country that depends on free trade for its living?

§ Mr. Butler
There can be no doubt that import controls of the sort advocated by the Opposition would have an effect on productivity would reduce the progress that is being made and would increase prices.

§ Mr. Les Huckfield
Does the hon. Gentleman recollect that his hon. Friend the Under-Secretary of State for Industry, the hon. Member for Basingstoke (Mr. Mitchell), referred to growth industries in the West Midlands at the previous Industry Question Time and promptly failed to identify them? Is he aware that since then 1,300 employees of Alfred Herbert have been given their notice and that another large British Leyland closure somewhere in the Midlands is rumoured, apart from the closures forecast by Sir Michael Edwardes? Against that background, will the hon. Gentleman tell the House, especially West Midlands Members, what are supposed to be the growth industries in the West Midlands?

§ Mr. Butler
My hon. Friend did not have time to identify the growth industries in the West Midlands at the previous Industry Question Time. However, the hon. Gentleman will remember that during the debate on the West Midlands I drew special attention to two such areas. Many small businesses are expanding and businesses involved in high technology are also expanding.

§ Mr. Dudley Smith
Will my hon. Friend confirm his belief that a British car industry should be retained not least because of the thousands of jobs in the car component sector which are dependent on the industry and which are mainly located in the West Midlands?

§ Mr. Butler
We recognise the continuing dependence of the engineering component industry and other industries on the car industry in the West Midlands, although there has been an element of diversification in recent years. My hon. Friend is aware of the assistance that has been given to British Leyland.