§ 3. Mr. Dormandasked the Secretary of State for Industry if he will convene a conference, to include invitations to the Northern Confederation of British Industry and the Northern Trades Union Congress, to discuss the attraction of industry to the Northern region.
§ Mr. MacGregorThe attraction of industry to the Northern region is already promoted in a substantial number of ways.
§ Mr. DormandThe Minister will not be surprised to learn that the Northern TUC is completely opposed to the Government's strategy, but is he aware that the Northern CBI has considerable doubts about certain aspects of the Government's regional policies? In view of the continuing rise in unemployment in the Northern region—still the highest in England—is it not clear that completely new thinking is necessary to deal with the region's problems—for example, the ridiculous position of the P & O cruise liner order being placed abroad? That ship could easily have been built in the Northern region?
§ Mr. MacGregorThe hon. Gentleman knows that the full battery of aid is available to about 90 per cent. of the Northern region. The North received the greatest amount per head of all regions in 1979–80 and was overtaken by Wales only in 1980–81, because, among other things, of the effect of the steel remedial measures. Substantial amounts of aid have gone into the Northern region.
On the question of awareness and the need for a conference, to which the hon. Gentleman addressed himself, the Invest in Britain Bureau in my Department and diplomatic service posts overseas promote the United Kingdom as a whole, including the Northern region. In addition, my Department provides grant-aid to the North of England Development Council for precisely the purposes that the hon. Gentleman outlined. The most helpful thing the hon. Gentleman can do to attract industry to the Northern region—I know that he wants to do this—is to persuade the Labour Party and his right hon. and hon. Friends to stop talking about withdrawal from the Common Market, because if that were to happen it would put off firms from coming to the Northern region.
§ Mr. TrotterDoes my hon. Friend agree that if the Datsun car company felt that Britain was likely to leave the EEC it would in no way be persuaded to bring several thousand jobs to the North-East? Does my hon. Friend also agree that it will be very sad if the future flagship of the British Merchant Navy is not built in Britain? It is small comfort that the reason given by British Shipbuilders is that there was so much work at Swan Hunter that it could not do it.
§ Mr. MacGregorMy hon. Friend is right about the Common Market and the Datsun company. There is much evidence that our withdrawal from the EEC would dry up the flow of inward investment to Britain.
As regards the P & O liner, the company could not meet the delivery dates because of the orders that it already has.
§ Dr. John CunninghamIs the Minister aware that it was not the EEC that closed the Consett steelworks or those in Workington who ran down regional support to a level below what it was in the early 1960s that allowed the largest cruise liner order ever placed by a British shipping; company to go to Finland? Does he accept that they are the deliberate responsibility and consequence of Government policies?
§ Mr. MacGregorI have already referred to the liner.
The hon. Gentleman will know that there is substantial over-capacity in the steel industry throughout Europe. Had the decision on Consett been taken earlier, it would have 671 been possible to restructure the Consett economy earlier, but we are now having to do it in difficult recessionary conditions.