HC Deb 08 December 1983 vol 50 cc452-3
5. Mr. Molyneaux

asked the Secretary of State for Northern Ireland to what other services he proposes to allocate any estimated underspending on the Northern Ireland Assembly for the current year.

Mr. Prior

I do not at present expect Assembly expenditure for the current financial year to be significantly different from that originally estimated.

Mr. Molyneaux

Whether the expenditure savings will be great or small, and given the point made by the hon. Member for Rutland and Melton (Mr. Latham), will the Secretary of State ensure that financial considerations will in no circumstances impair the operational efficiency of the security forces? Will the Government give the highest possible priority to the elimination of terrorism, which must be a prerequisite for any form of political process?

Mr. Prior

I confirm that the Government will give the utmost priority to the elimination of terrorism and provide the resources necessary to do so. I have never been asked by my colleagues to cut back on anything required for defence or law and order, and I am certain that they would not ask me to do so now.

6. Mr. Fatchett

asked the Secretary of State for Northern Ireland whether he will indicate the likely impact of the Chancellor's statement of 17 November on the Northern Ireland economy.

Mr. Butler

My right hon. Friend's statement of 17 November reflected the Government's strategy of creating a sound base for sustained economic recovery which will benefit all regions of the United Kingdom. The Chancellor's statement included a planning figure for public expenditure in Northern Ireland next year of £4,020 million; in line with the planning total for 1984–85 published in the last public expenditure White Paper. My right hon. Friend the Secretary of State will be making a statement shortly giving details of the allocation of this Northern Ireland total.

Mr. Fatchett

Given the cuts that are being imposed on the Health Service in Northern Ireland, and recognising the CBI's view that employers in Northern Ireland will continue to shed labour, does the Minister now agree with his right hon. Friend the Secretary of State that it is important that the Government should show greater determination in fighting unemployment? Does he agree also that if the number of people unemployed is reduced that may make some contribution to reducing the number of potential terrorists?

Mr. Butler

I have already agreed to the point about reducing the number of potential terrorists. If the hon. Gentleman had listened to what my hon. Friend the Under-Secretary of State said a few moments ago, he would know that my hon. Friend repudiated the suggestion of cuts in the Health Service in Northern Ireland. The House must wait for the statement by my right hon. Friend the Chancellor of the Exchequer about the allocation of expenditure for next year. The figure that I gave will be very near the total that will be announced. That represents an increase in spending in the Province which will be reflected in almost all Departments.

Mr. Hume

Does the Minister agree that Northern Ireland is now the only area in Western Europe where the unemployment figures are higher than for those employed in manufacturing industry and that that qualifies it to be described as "an economic disaster area"? Does he agree also that the seriousness of the economic problem is now seriously interacting with the security problem? What special measures have the Government in mind to deal with that difficulty?

Mr. Butler

It is a matter of fact that the numbers out of work exceed those employed in manufacturing. I cannot say how the Northern Ireland position compares with that elsewhere. More serious from the point of view of the economy of the Province is the narrowness of the manufacturing base, which is represented by approximately 1,000 people. I believe that the hon. Gentleman is well aware of the incentive package which we introduced in the spring of this year, which is having an effect. I hope that the hon. Gentleman will share my satisfaction in, for instance, the success which the Industrial Development Board is having in attracting would-be investors to Northern Ireland. There are about five times the number of such investors now visiting the Province compared with last year, and some investment will flow from those visits. I can confirm that from my experience last week in North America, and we must take encouragement from that.

Mr. Budgen

Further to the suggestion of my hon. Friend for an investment bank — presumably partly funded by the taxpayer—what is the point of such a bank if it is run on commercial lines?

Mr. Butler

The plans for such a bank are being investigated by the Industrial Development Board and other financial institutions. The Province is looking for an investment bank because it is short of private sector funds for this purpose. It is short of vehicles for private sector investment. As I said earlier, it is my understanding that if an investment bank were set up it would be entirely commercial, but it would operate in parallel with the Industrial Development Board.

Mr. Soley

If these extra Government incentives in the economy are so valuable in Northern Ireland, why are they not used here?

Mr. Butler

The hon. Gentleman has always believed that money grows on trees. It is taxpayers and the more prosperous parts of the country — whether they are personal or industrial taxpayers—that are having to put down money from their pockets to help Northern Ireland. I believe—I hope that the hon. Gentleman does as well —that they are ready to do so because of the special problems. It would be nonsensical if every part of the country were helped in that way.