HC Deb 26 October 1988 vol 139 cc277-9
2. Mr. Simon Hughes

To ask the Chancellor of the Duchy of Lancaster what further plans his Department has to revitalise the inner cities.

The Chancellor of the Duchy of Lancaster and Minister of Trade and Industry (Mr. Tony Newton)

We shall continue to build on the extensive range of initiatives which make up the Government's Action for Cities programme.

Mr. Hughes

I congratulate the Chancellor on his appointment, if not on that reply.

The right hon. Gentleman will know that I have written to him about the employment effects of urban development corporations, as evidenced in the third report of the Select Committee on Employment. Will he have urgent consultations with Ministers in other Departments to reverse the pattern of job losses for local people under the London Docklands Development Corporation? Will he take specific interest in the planning application for Bombay wharf and surrounding area, which now threatens 70 traditional jobs for local people? Will he give some sign that we will get jobs for locals, not just for people coming in from outside?

Mr. Newton

I recall my correspondence with the hon. Gentleman, in which he will remember I made two points. First, I am responsible for the programmes and keep closely in touch with my Government colleagues who are concerned with them, but, secondly, the specific issues the hon. Gentleman raised about the Select Committee's report are really matters for the reply of the Department of the Environment to that report. He will understand that I would not want to pre-empt that.

The hon. Gentleman somewhat overplays his hand on local jobs. I understand that it is thought that among the projects that the LDDC has promoted since 1981 a total of 1,560 local jobs have been preserved and 2,120 created by LDDC grants to 200 firms. That is part of a much wider job creation which everyone would agree has occurred as a result of the LDDC's activity.

As for the hon. Gentleman's specific planning point, he will understand that I have no information about it this afternoon, but I shall look into what he said.

Mr. Chapman

Does my right hon. Friend agree that environmental improvement schemes, often at very little cost, can frequently be the best initiatives to encourage people and businesses into derelict inner city areas? May I have my right hon. Friend's assurance that his Department is keeping in touch with ministerial colleagues at the Department of the Environment to promote initial environmental improvement schemes, often using local labour?

Mr. Newton

Yes, indeed, in general terms I can give that assurance. I add the hope that the various private sector initiatives, which are now becoming an important and useful feature of inner city action, will also take my hon. Friend's point.

Mr. Loyden

Can the Minister be satisfied with the levels of unemployment in most inner cities? Is he aware that the money that is now going through various Government agencies is having virtually no impact on hard core unemployment in those cities? When will the Government realise that unemployment will not be shifted off the agenda by their silence on these issues?

Mr. Newton

No, I am not satisfied with the level of unemployment in inner city areas. The purpose of a large number of our programmes is to reduce it. I am happy to say that they are doing so with increasing success against the background of general economic resurgence. I shall not weary the hon. Gentleman with a lot of statistics, but the task forces, for instance, which report direct to me, have already been responsible for the creation of significant numbers of jobs in inner city areas.

Mr. Roger King

Is my right hon. Friend aware of the enormous investment going into the city of Birmingham, almost all of it from private enterprise? About £1 billion is being spent to revitalise the city centre. Does my right hon. Friend agree that good and successful city centres have obvious repercussions for inner cities because they provide jobs and opportunities in the right environment for continuing investment?

Mr. Newton

I agree with my hon. Friend and would also put the point the other way around. There is now a much better climate of confidence for new investment in our economy, and that is a significant advantage for inner cities and one reason why I am glad to see the private sector beginning to come in behind so many of our initiatives.

Mr. Caborn

On the matter of financing, can the Minister explain the position in Europe about the integrated development operations programmes, especially in relation to article 15 and the local authority element that it contains? Does he not think it stupid that this row has been going on for so long while we are putting at risk hundreds of millions in regional development fund and social fund grants because of the Government's vindictive attitude to local authorities?

Mr. Newton

In no sense do the Government have a vindictive attitude towards local authorities. I have emphasised many times that where local authorities are prepared to work in a practical way with us, we are more than willing to work in a practical way with them. The matter that the hon. Gentleman raises will be looked at against that background.