HC Deb 07 December 1981 vol 14 cc574-5
15. Mr. David Watkins

asked the Secretary of State for Industry if he will take further steps to assist industry in the Northern region.

Mr. MacGregor

The Government have to consider the needs of all parts of the country, and there must be a limit to the assistance that can be given to a particular region. The Northern region, as the hon. Gentleman well knows, is already eligible for the whole range of regional financial and other assistance and is a substantial beneficiary of the policy.

Mr. Watkins

Although I appreciate the Minister's answer, has he seen the recent Central Statistical Office figures which show that the Northern region now has the slowest industrial growth when it once had the fastest? Therefore, is there not a need for radical change and a more positive approach to regional policy?

Mr. MacGregor

I should like to study the Central Statistical Office's figures in more detail before commenting or giving an analysis. As I said, the hon. Gentleman is well aware that a battery of Government assistance is concentrated on the Northern region and in particular on his constituency, where we have undertaken a large-scale programme of various aids. I visited the hon. Gentleman's constituency again in October and was encouraged by the progress made there. I pay tribute to all who are dealing with matters there. The local industrial committee is dealing with over 38 active industrial inquiries, many of which are reaching maturity, which is a good record in a short time. One must always be hesitant about predicting job potential, but possibly about 2,600 jobs are attached to the progress that is being made.

Mr. Wrigglesworth

As the Northern region has the biggest problem, does it not need the boost that extra demand in the economy can give by bringing jobs back? How did the mini-Budget last week help the growth of jobs?

Mr. MacGregor

Aid for the Northern region is a continuing and continuous process. Since May 1979, £362 million estimated total regional aid has been offered or accepted in the Northern region, which shows what the Government are doing.

Sir William Elliott

Would not hon. Members on the Opposition Benches do well to visit the headquarters of English Industrial Estates Corporation in Team valley, as I did last Friday, where they would learn that the interest being shown in the enterprise zone on Tyneside and in other trading estates, particularly smaller factories, is encouraging?

Mr. MacGregor

I am grateful to my hon. Friend. I had a meeting with the English Industrial Estates Corporation board on Wednesday, and what my hon. Friend says is entirely correct.

Mr. Dormand

. Is not the Central Statistical Office's report supported by the unemployment figures in the Northern region, which remain the highest in the country and which have increased every month since the Government came to power? Does the Government's regional policy, introduced more than a year ago with a great fanfare of trumpets, not urgently need to be revised?

Mr. MacGregor

As the hon. Gentleman knows, the Northern region stands to benefit most from our new emphasis on concentration aid in the areas of greatest need. When the policy takes full effect next August, nearly 90 per cent. of the working population in the region will still be in assisted areas.