Regional Policy (Hansard, 18 April 1983)

§ 2. Mr. Dormand
asked the Secretary of State for Industry if he will make a statement on the progress being made on the Government's review of regional policy.

§ The Minister of State, Department of Industry (Mr. Norman Lamont)
As I have already said, officials have completed the first stage of a review to examine the working of current regional economic policies and to identify ways in which regional policy might be made more effective. I cannot say more, but I assure the House that we do not envisage any further substantial changes in the lifetime of this Parliament.
The Government are firmly committed to promoting industrial and economic development in the regions.

§ Mr. Dormand
As it is evident that the Government do not intend to complete the review this side of the general election, will the Minister say what immediate action he will take in rapidly deteriorating areas such as the northern region, where the present regional policies are manifestly failing? Is there not a case for emergency programmes in the worst-hit areas?

§ Mr. Lamont
If regional policies have manifestly failed, that is an argument for re-examining them. I did not say that we would not complete the review before the election. I said that we intended no substantial change before the election.
The northern region already receives more assistance per head of population than any other region in England —97 per cent. of the population are in assisted areas.
We regret that our innovation schemes have not had a bigger take-up in the northern region, but we shall look sympathetically at anyone who wishes to use those schemes or the ones designed to help small businesses.

§ Mr. Beaumont-Dark
Is it not better to support individual industries than to try to act like God in various 4 regions? Does my hon. Friend agree that the midlands region has suffered since the war from various Government policies which have tried to shift prosperity from one end of the country to the other?

§ Mr. Lamont
I certainly would not want to act like God in the regions. I agree that the west midlands has suffered enormously from discrimination against it. That is why we have concentrated regional policy more narrowly on the worst-hit areas and taken measures such as lifting the IDCs, which did such damage to the west midlands in the past.

§ Mr. Ioan Evans
If the Minister is to do nothing about regional policy before the general election, is that not a very good reason for having a change of Government? Does the Minister realise that many regions which had special development status have been deprived of it by the Government? They have seen unemployment more than doubled, so that in those areas it is at the highest level in their history.

§ Mr. Lamont
I am fascinated by the consensus that regional policy has not been working. I am grateful for support for the idea that we should rethink the policy.
As for narrowing the areas receiving assistance, it makes no sense to have half the country covered by regional policy. In what way can that assist the worst areas?

§ Mr. Lennox-Boyd
When my hon. Friend considers regional policy in relation to areas such as north Wales, does he agree that it is far more effective to have assistance in building up the infrastructure of an area than to have assistance by way of direct grants to individuals and businesses which in some cases do not need to take advantage of them?

§ Mr. Lamont
I think that that is to some extent the case. Infrastructure is extremely important in developing the economy of a region. The north-west and the north-east have done very well out of infrastructure and have made a great contribution to those areas.

§ Dr. John Cunningham
Given the appalling unemployment in the north, the devastation in the west midlands, and the very high unemployment in Wales and Scotland, in which region does the Minister think Government policies are working?

§ Mr. Lamont
The upturn that we are about to see—[Interruption.] There is firm evidence that an upturn is about to happen — indeed, not just about to happen. Industrial production has risen markedly as Opposition Members should know, in the past few months. All our regions stand to gain as a result of the gains in competitiveness by British industry in the past few months.