HC Deb 06 April 1981 vol 2 cc680-1
19. Mr. Dormand

asked the Secretary of State for Industry what estimate he has made of the aid given to industry in the Northern region since May 1979.

Mr. MacGregor

In the financial year 1979–80, and the first nine months of the current financial year, aid to industry in the Northern region from central Government sources is estimated to have totalled £255 million. This figure covers regional assistance of all kinds and payments under section 8 of the Industry Act.

Mr. Dormand

Is the Minister aware that in spite of the figures that he has given unemployment in the Northern region still remains the highest in the country? In view of the manifest failure of the regional policies introduced by his right hon. Friend the Secretary of State in 1979 and his refusal to establish a northern development agency, will he now undertake a complete reappraisal of his policies? Finally, will the Secretary of State accept my personal invitation to meet hundreds of Northern trade unionists who will be lobbying Parliament tomorrow, who are incensed by his policies? Will he explain to them why he thinks his policies are so good?

Mr. MacGregor

I am aware that the Northern region is facing great difficulties because of the problems of structural industrial change. I have already visited parts of the area. I do not think that the hon. Gentleman can deny the heavy concentration of Government aid on the region. Regional aid per head last year was nearly £48 in the North compared with £36 in Wales, £23 in Scotland and a good deal less per head in all other areas. Those figures demonstrate that a much higher priority is being given to the area despite there not being a northern development agency. If such an agency were introduced, that might lead to other areas demanding similar agencies for themselves and demanding more Government aid to take account of Government aid to the North. That would not necessarily help the Northern region.

Mr. Wrigglesworth

Is the Minister aware that comments have been made recently to the effect that investment in the Northern region of funds from the Common Market are being delayed by hold-ups in Whitehall? Will he look into those suggestions and see whether the hold-ups can be overcome?

Mr. MacGregor

I am not aware of any hold-ups, but if the hon. Gentleman writes to me with details I shall have them examined.

Mr. Radice

Is the Minister aware that Washington new town, started by the Conservative Government in 1964, and the white hope of the Northern region, has lost over 2,000 jobs in the past 14 months? Is it not time the Government revised their whole regional policy?

Mr. MacGregor

The point of the change in regional policy was to concentrate the aid much more specifically on a much smaller number of parts of the country which face particularly heavy difficulties. I am sure that that will be to the Northern region's long-term benefit.