§ 6. Mr. GillTo ask the Secretary of State for Trade and Industry how many people are employed in his Department dealing with grants to industry; and what is their estimated annual cost.
§ The Minister for Industry (Mr. Douglas Hogg)The Department's main schemes involving grants to industry are regional selective assistance, regional development grants, regional enterprise grants, the consultancy initiative and support for R and D and innovation. Some 850 of the Department's staff work on the development of policy and administration of these schemes at an estimated annual cost of £19 million. That represents some 7 per cent. of the Department's total manpower.
§ Mr. GillDoes my hon. and learned Friend agree that all the human and financial resources currently targeted at individual commercial projects would be better spent on infrastructure for the benefit of all taxpayers and that, in conjunction with the lower wage rates and property values in the regions, that would be the best way of stimulating permanent and sustainable employment in those areas?
§ Mr. HoggMy hon. Friend makes two valuable points. Most certainly the Government should invest in infrastructure and most certainly the regions can do a great deal for themselves. But regional assistance through Government grant is also important. I am glad to say that since April 1987 regional selective assistance is estimated to have created or safeguarded about 185,000 jobs in Great Britain.
Mr. John D. TaylorIn view of the large number of people employed, do the British taxpayers of Northern Ireland contribute to their salaries?
§ Mr. WardDoes my hon. and learned Friend agree that it seems that an astonishingly large number of people distribute the money? Would not it be better to get rid of them and of the grant and cut taxes?
§ Mr. HoggI am glad to say that the Government have an unequal record in cutting taxes. We have done better than any Government at any time. Regional selective assistance and regional policy are also important and should be pursued.
§ Mr. Gordon BrownOn the question of grants to industry and the European Commission's extended consideration of industry grants given in the Rover deal, will the Minister admit to the House the extent of not only the hidden subsidies given in grants to British Aerospace but the hidden subsidies in the form of tax concessions, which Lord Young has admitted could be worth millions of pounds? Will the Minister take this opportunity to admit to the House, to which he should have reported months ago, that in offering hidden subsidies which should have been declared, the Government were guilty of not only incompetence but deception?
§ Mr. HoggThere are several unpleasant features about the hon. Gentleman. One of them is that he is doing his best to persuade the Commission to penalise British Aerospace more than it should. That is a disreputable policy of which he should be profoundly ashamed.