HC Deb 15 March 1989 vol 149 cc402-4
9. Mr. Pike

To ask the Chancellor of the Duchy of Lancaster if he will make a statement on his assessment of the causes of the relative performance of each region in terms of constant value manufacturing output since 1979.

Mr. Atkins

There are many factors underlying regional performance, including the state of the world economy and regional industrial structure. I am happy to say that recent indices show a continuing strong growth in manufacturing output in the regions.

Mr. Pike

When the Minister next returns to his constituency in the north-west, will he look at the real situation there instead of accepting what his civil servants tell him? Is it true that there is 38 per cent. less investment in manufacturing industry in the north-west now than there was in 1979? Is that why there are fewer jobs and 20 per cent. less output? Have not the Government failed manufacturing industry and the regions?

Mr. Atkins

The hon. Gentleman should know that no Minister receives much advice from his civil servants on constituency matters. He uses his own eyes, as I do. Representing the north-west as he does, the hon. Gentleman will know just how well the north-west is doing at the moment.

Mr. Pike

Rubbish.

Mr. Atkins

The hon. Gentleman does not serve his region well by talking it down and suggesting that things are so bad. We are doing extremely well and that is largely due to the Government's economic policy.

Mr. Dykes

Is it correct that in the past 10 years, taking all the regions together, total manufacturing industry output rose by 9.8 per cent.—less than ½ per cent. compound per annum? Britain's investment in the private sector is the lowest of all those on the OECD official list of countries with populations of more than 50 million. What are we to do to change that fundamental weakness?

Mr. Atkins

My hon. Friend is right to highlight the fact that there is always room for improvement. It is the Government's policy to ensure that that improvement continues. If my hon. Friend remains long enough, he will learn from an answer on OECD productivity figures that Britain's productivity is one of the highest within the OECD in terms of percentages.

Mr. Caborn

I congratulate the Minister on presenting an almost convincing fairy-tale this afternoon. The allocation of objective 2 of the new EEC structural fund is based upon unemployment and industrial decline. The EEC decided that from the 50 million people covered by that definition, 20 million are in the United Kingdom. To put it another way, 36 per cent. of objective 2 money will, under the new criteria of the structural fund, come to the United Kingdom. Is the Minister aware, therefore, that in the objective assessment of the Commission, the regions of this country are in greater industrial decline than any other areas in the EEC?

Mr. Atkins

It might interest the hon. Gentleman to know that as a result of pressure that we have been able to impose, we have managed to obtain objective 2 status for Burnley borough council, about which the hon. Member for Burnley (Mr. Pike) questioned me. That is an indication of the fight that we have put up against the Commissioner who, the hon. Gentleman will recall, was a Member of the Opposition and who is making life a little more difficult than we would wish it to be.