HC Deb 25 February 1987 vol 111 cc268-70
18. Mr. Lawler

asked the Secretary of State for Trade and Industry what measures are being taken by the Government to foster economic growth and industrial expansion in the north of England.

Mr. Giles Shaw

Recognising its problems, we redesignated many parts of the north of England as assisted areas following the 1984 review of regional industrial policy. Taking the north as the north-east, north-west and Yorkshire and Humberside regions, 70 per cent. of its working population are within assisted areas. Since 1979 firms in the north have benefited from nearly £2 billion of regional assistance, creating or safeguarding around 219,000 jobs.

Mr. Lawler

I am grateful to my hon. Friend for that answer, which shows that he is only too well aware of the problems in the northern cities. Does he agree that constant talk of the north as a depressed region only perpetuates its negative image? Instead, will he support Bradford's approach, which, through its "Bradford's Bouncing Back" campaign, highlights the positive aspects of economic life in that city?

Mr. Shaw

I totally agree with my hon. Friend. It is ridiculous that we should, as it were, attempt to paint the north as an area where there are clogs and cloth caps and nothing else. "Bradford's Bouncing Back" is assuredly an exceptionally fine slogan. If Bradford bounces back, Pudsey will prosper too.

Mr. Gordon Brown

Given the catastrophic fall in the real value of manufacturing investment in the north of 41 per cent. since 1979, what is the sense of the 50 per cent. cut over the coming year in the value of regional development grants, especially as they have been halved since 1979? If the Minister will not support the Labour party's proposals for a northern development agency, will he at least listen to the proposals from the unholy alliance of the right hon. Member for Henley (Mr. Heseltine) and the right hon. and learned Member for Richmond, Yorks (Mr. Brittan), who now support, outside the Cabinet, proposals for development agencies which they did not support when they were in the Cabinet'?

Mr. Shaw

I cannot disagree more with the hon. Gentleman. It is a fact that we are engaged in developing a number of agencies which can promote beneficial investment in the regions. As the Northern Development Company is one of those, he will be aware that it is a substantial recipient of Government funds. The budget proposition made by the company is currently under discussion and I hope to make an announcement very soon.