§ 23. Mr. David Watkinsasked the Secretary of State for Industry what initiatives he is now taking to stimulate the growth of industry in the Northern region.
§ Mr. MacGregorIndustrial growth in the Northern region, as in any other region, can only really be achieved by tackling the underlying causes of its deep-seated problems. The measures that we are taking nationally will help create the climate in which this can be achieved, but much will also depend on the attitudes of local 14 management and work force. The hardest-hit areas of the North will continue to benefit from regional aid to help encourage the necessary process of change, and the hon. Member will be aware of the special efforts that we are making in this regard in specific areas like Consett.
§ Mr. WatkinsIs the Minister aware that the number of new jobs in prospect in my constituency can be numbered in dozens, when the number needed is 10,000? This is happening in an area where, as the Minister says, there is the greatest concentration of Government initiatives in the whole region. What hope exists for the Government's policy and philosophy in Consett, Stanley or the whole of the Northern region?
§ Mr. MacGregorThe hon. Gentleman must recognise that it takes time to bring about industrial restructuring. It is especially difficult at a time of world recession when a large number of companies, including international companies, are not looking to move elsewhere. The hon. Gentleman will be aware, however, that the local industrial committee is dealing with over 90 active industrial inquiries, many of which are now reaching maturity. We must hope that these will provide a substantial number of jobs.
§ Mr. BeithHow can the hon. Gentleman say that the hardest hit areas are protected by regional aids when areas such as Alnwick and Amble, with high levels of unemployment, have been denied that aid? This has implications for European grants as well as for British Government aid.
§ Mr. MacGregorWe have made it clear that it must be right to concentrate the Government's assisted area policy in areas of highest need. The North benefits a great deal. Following all the changes, nearly 90 per cent. of the working population of the Northern region will remain in assisted areas. In the North alone, over £250 million in regional aid has been spent to help with restructuring and new investment since the Government came to power.
§ Sir William ElliottWill my hon. Friend accept that many new businesses are coming to the Northern region and providing a great number of new jobs? [HON. MEMBERS: "Where?"] An equal number of jobs to those lost on the trading estates in the past 12 months have been provided. I wish that Opposition Members would examine the facts. Does my hon. Friend agree that the enterprise programme announced by the Chancellor of the Exchequer on 5 May, indicating to small business men and entrepreneurs a wide range of incentives available to those wishing to start their own businesses, is of the highest importance to the region? Will he ensure that the publicity associated with this programme is given the widest distribution?
§ Mr. MacGregorI agree with my hon. Friend. Small firms and new firms can play an important part, not only in providing jobs, but in changing the psychology and climate in the Northern region. My hon. Friend will know that under the Government's measures the North, has two enterprise zones and receives much assistance through the inner city areas programme, in which small firms often play a prominent part. I shall do everything that I can to help with publicity. I hope to chair a conference in the Northern region later in the year.
§ Mr. John GarrettDoes the Minister realise that the Opposition want action and not whistling in the dark? 15 Since the Government came to power, 80,000 jobs have been lost in the Northern region. It will end up, before long, as the most devastated industrial area of Western Europe. When will some positive action be taken?
§ Mr. MacGregorIf only some of the decisions to achieve industrial restructuring and produce competitiveness had been taken earlier, we would not be faced with the position that now exists. The hon. Gentleman calls for action. The hon. Gentleman must accept that £250 million of aid, a greater concentration of assisted area status and a range of other measures are real and positive signs of action. However, such support cannot be carried to the point where Government spending increases to too high a level, puts further pressure on the PSBR and so affects interest rates and hits existing firms in the region.