§ 4. Mr. Roger KingTo ask the Secretary of State for Trade and Industry how many overseas-based companies have now established manufacturing facilities in the Birmingham area.
§ Mr. Douglas HoggTo date, some 50 companies have established manufacturing operations in Birmingham. Recent announcements include projects from two West German companies, Kirsten Automotive Ltd and Keiper Recaro, which will be located on the Woodgate business park in my hon. Friend's constituency.
§ Mr. KingIs my hon. Friend aware that the growing tide of foreign companies investing in Britain, certainly in Birmingham and the west midlands, is evidence of a strong resurgence of manufacturing capability in the region? Does he further agree that the role of the West Midlands development agency has been a spur to encourage much of that investment and that it is the wish of businesses in the region that that work should continue and increase?
§ Mr. HoggI entirely agree with my hon. Friend about the West Midlands development agency, and he will know that I have been able substantially to increase the money that goes to that organisation. It must be said that my hon. Friend has also made a considerable contribution to attracting industry to his area. I was extremely grateful to him for his support of the Keiper Recaro project. I greatly valued my hon. Friend's representations, which enabled me to form a clear view of the matter, following which I was able to give the project a grant.
§ Mr. HendersonThe Minister will know that, even with the inward investment in the west midlands, which we all welcome, manufacturing investment in the area is lower today than it was in 1979 and that even in high-tech industries, as defined by the Department of Trade and Industry, 10,000 jobs have gone since 1981. What will the Minister tell industrialists and workers in Lichfield in Mid-Staffordshire about Conservative economic policy?
§ Mr. HoggI will tell them the truth, and they will be mightily impressed by it. Between 1984 and 1988, more than 260 inward investment projects in the west midlands created or safeguarded about 36,500 jobs. While we are talking about investment, I should point out that manufacturing investment in 1989 was 5 per cent. higher than in 1988 and 34 per cent. higher than five years ago. That is the fastest rate of growth in any three-year period since the war. That is what I shall tell them and they will find it very persuasive.