HC Deb 12 January 1981 vol 996 cc737-9
8. Mr. Sheerman

asked the Secretary of State for Industry what plans he has to increase industrial expansion in West Yorkshire.

The Under-Secretary of State for Industry (Mr. John MacGregor)

Industry, in West Yorkshire and elsewhere, has been affected by the world-wide recession. As this clears, industry will expand provided that workers and management together improve competitiveness by raising productivity and keeping down costs. The most important contributions which the Government can make are to bring down inflation, which is happening, and to contain the Government's own costs.

Mr. Sheerman

Will the Minister consider encouraging his right hon. and hon Friends to cease their war on working men and women in such places as West Yorkshire and my own constituency of Huddersfield and bear in mind that people in textiles face a country such as the United States which imports oil at $35 a barrel and exports it in synthetic fibres at $15 a barrel? Will he also bear in mind that a firm in Bradford was referred to in the Financial Times this morning as having taken a 10 per cent. cut in wages a year ago but it still has 100 people unemployed today? Will he stop this war on working-class men and women, who make every effort in productivity terms?

Mr. MacGregor

There is no war, contrary to what the hon. Gentleman says. What concerns us all is the industrial decline in Britain over many years, for the reasons which my right hon Friend gave, which bears so heavily on us all. It is to that that all our endeavours are directed to put matters right. I take the hon. Gentleman's point entirely about firms whose workers accept low wages. This is an unhappy state of affairs. But it is because there has been decline elsewhere in the economy so often that they are unable to sell their products. It is in that direction that we are devoting all our efforts. The hon. Gentleman referred finally to textiles. There is a later question on that subject.

Dr. Summerskill

Will the hon. Gentleman bear in mind that, pleased as we are to see him in his new post, he is giving the same complacent replies as his predecessor, the hon. Member for Basingstoke (Mr. Mitchell), who made a name for himself in West Yorkshire by never giving any help to the area? Will the hon. Gentleman come to Halifax, where I do not suppose he has been, and see for himself the circumstances created by this Government's decision to deprive the area of assistance? The above average unemployment and the severe difficulties facing all industry as a result of the Government's policies should be given urgent attention by him in his new post.

Mr. MacGregor

I am grateful for the hon. Lady's remarks. I was often struck as I sat silently on this Bench by the ready assumption of the Opposition that indiscriminate further spending of the taxpayers' money was the simple answer to our problems, yet the period of our greatest decline was one in which Government spending to industry was on a vast scale. The hon. Lady will know that one of the widest demands from industry as a whole at present is for a reduction in the Government costs and of the public sector borrowing requirement. I remind the hon. Lady that this Government are spending more than £400 million on regional aid directed, we believe, to areas which most need assistance. Once I get my feet under the table, I shall look at the possibility of visiting Halifax.

Mr. Ward

Will my hon. Friend remind the Labour Party that every penny provided in aid for some areas and for nationalised industries can only come out of taxation on successful industries that have coped with the demands of the industrial situation? Will he appreciate that firms in my constituency that are fighting for survival cannot go on providing charity for the nationalised industries on the present scale?

Mr. MacGregor

My hon. Friend has a fair point. I know that many hard-pressed firms in my part of the country feel this strongly and believe that, in some cases, it amounts to unfair competition. That is why we have to make sure that Government money is effectively and correctly spent and does not go towards encouraging unfair competition.

Mr. Woolmer

Does the Minister realise that unemployment in West Yorkshire has now reached 90,000, exactly double the figure that existed when his Government took over? Will he stop perpetrating the myth that the decline in manufacturing industry is due to problems in export markets? All outside commentators say that our export markets have been growing substantially. Will he not recognise that it was a gross mistake by the Government to destroy our manufacturing industry? Is it not time that they reversed their mad policies on interest rates and the exchange rate and sought to bring jobs back to our manufacturing areas?

Mr. MacGregor

On the position of West Yorkshire as a whole, the hon. Gentleman may know that my right hon. Friend the Secretary of State is considering further representations from the county council about a change in status, although I am bound to point out that in doing so he has to take account of the relative needs of all parts of the country including those with higher rates of unemployment than West Yorkshire. The hon. Gentleman refers to interest rates. He will know that one of the main reasons for the present high level of interest rates is the present high level of the Government's borrowing requirement. That is a major reason why we wish to contain Government spending.