§ 11. Mr. Tony Lloydasked the Secretary of State for Trade and Industry if he will make a statement on his policies for the regeneration of industries in inner city areas.
§ Mr. ButcherMy Department fully supports and participates in the Government's initiatives in the inner cities, such as the city action teams and the new initiative in the eight inner city areas led by my right hon. and learned Friend the Paymaster General. We are keen to ensure that the inner cities obtain the maximum possible benefit from a number of national and regional schemes in support of industry and commerce operated by my Department.
§ Mr. LloydHow can the hon. Gentleman sound so complacent about the problem when the male adult unemployment rate in and around my constituency is 60 per cent.? Perhaps I should have asked about policies for the reincarnation, rather than the regeneration, of industries. In view of the Government's policy, there is now an industrial desert in our inner city areas. What will the Government do to ensure that there is either public sector or private sector investment in those areas to mop up that great pool of unemployment?
§ Mr. ButcherThe Government cannot be accused of complacency on inner city programmes. Those programmes are operated by a number of Government Departments. If the hon. Gentleman had done his homework a little better, he would have known that, since the launch of city action teams — they are the main weapon of regional selective assistance—115 companies have been visited by CAT officers in his area with the objective of stimulating RSA applications.
§ Mr. ButcherTo date, 24 applications have been approved and assistance totalling £1,815,000 has been offered. To answer the hon. Gentleman's specific question, that will create 504 jobs and safeguard 21 more.
§ Mr. BudgenDoes my hon. Friend not understand how deeply disappointing his answer is to those who hear him encouraging central and local government to spend more money? Would it not be better if my hon. Friend emphasised that lower expenditure in the inner city areas will lead to lower taxes, lower rates and thus lower costs, which may help a few manufacturing industries to survive?
§ Mr. ButcherTwo policies are relevant in answering my hon. Friend's question. First, there is no point in Governments getting involved in inner city programmes if the cities are politically dominated by those who continue to impose massive rate increases. That would be self-defeating. Secondly, it is surely right that, if the Department of Trade and Industry brings its policies into this initiative, it should ensure that the projects it backs are viable, commercial and geared to promoting employment in jobs with a future. To that extent, that level of public expenditure is working with the grain of market forces and not against it.
§ Mr. LitherlandIs the Minister aware that one of the last major employers in the inner city area of Manchester, Central—GEC Switchgear—has announced that it will 930 make 300 people redundant and that, in addition, the area has lost 19,000 jobs since the early 1970s? One of the reasons for that is that our industry cannot compete with foreign competitors, which receive advantageous credit and subsidies from their Governments. When will the Government do something for British industry?
§ Mr. ButcherIf the hon. Gentleman examines the Government's support for that type of major contract business, certainly in terms of export support, he will find that we have a good record. I appreciate that the hon. Gentleman was speaking about another GEC company, but I am sure he will have noticed that GEC Traction at Trafford Park has secured an order worth £35 million to provide 31 high-speed locomotives. That is an example of enlightened public purchasing working towards objectives which the hon. Gentleman should share.