HC Deb 20 July 1981 vol 9 cc16-7
16. Mr. Radice

asked the Secretary of State for Industry if he is satisfied with industrial progress in the Northern region.

Mr. MacGregor

No. The international recession has had its effect upon the Northern region, as elsewhere. That is why it is important that the Government continue with their policies to encourage enterprise and to reduce inflation, Government spending and interest rates, and for those in industry at all levels to increase our industrial competitiveness.

Mr. Radice

In view of the appalling increase in unemployment—over 90,000 in the Northern region since the general election—and in view of the collapse of many of our industries, and the riots that have taken place in our streets during the past fortnight, is it not time that the Government announced the abandonment of their faith in Adam Smith, and gave a great deal more help to the regions? Will the Government send a team of Ministers during the recess to the Northern region to see what is happening?

Mr. MacGregor

We must face the fact that, just as Britain's insidious but persistent decline has taken place over many years, so it is bound to take time to bring about a turnaround and deal with the chronic problems of uncompetitiveness, and so on. It should not, therefore, surprise the hon. Gentleman that there has not been a rapid improvement in progress. It will take time. His remedy of further increasing aid to the Northern region which, as he well knows, benefits more than any other region, can only be at the expense of higher Government spending, which inflicts harm on industry and on more profitable firms throughout the country. In answer to the hon. Member's question about sending a team of Ministers, although he may not regard me as a team, I shall be visiting the Northern region during the recess.

Mr. David Watkins

While I appreciate the Minister's little lecture, can I ask him to say when we shall see the much forecast upturn in the national economy, which is supposed to do so much for the Northern region in the absence of any coherent Government policy?

Mr. MacGregor

As my right hon. Friend has made clear today, and as is clear from international reports that are before the nation today, the problem is world-wide. There is a world-wide recession, and that is bound to have an impact on our own economic recovery.

I hope that the hon. Gentleman will not ignore the fact that, in so many parts of the country and in so many industries, as output recovers, the potential productivity improvements that have been gained over the past two years will be immensely beneficial.