Recession (Hansard, 10 June 1992)

§ 2. Mr. Gapes
To ask the President of the Board of Trade when he next plans to meet representatives of the south-east CBI to discuss the effects of the recession on industry.

§ The President of the Board of Trade and secretary of State for Trade and industry (Mr. Michael Heseltine)
I have no meetings planned with the CBI's south-east regional council in the immediate future, although I met the CBI's national manufacturing council on 29 April and I often meet individual CBI member companies.

§ Mr. Gapes
Why, given the jobs crisis in the south-east, has the Minister no such meetings planned? In view of the crisis in docklands and especially in Canary Wharf, the difficulties with the channel tunnel project and his so-called initiatives for east London corridors—we do not hear much about them at the moment—why is he doing nothing to deal with the serious jobs crisis in my constituency, where 4,600 people are out of work and the total is rising every month? One in nine people is out of work and we want jobs now.

§ Mr. Heseltine
I think that the hon. Gentleman misstates the contribution that the Government have made. We have brought down interest rates by 5 per cent. over the past 12 months and secured a level of inflation that is extremely attractive compared with that of our competitors. Above all else, to help the recovery of our economy we have kept the Labour party out of power.

§ Dr. Hampson
Does my right hon. Friend intend to explain to the CBI the significance of his adopting the title President of the Board of Trade? Does the board, which is potentially the most powerful of all Cabinet Committees, now meet?

§ Mr. Heseltine
The Board of Trade has not met for many decades, except in a celebratory mode to commemorate its 200 years of success. If it were to meet, it would be attended by the Archbishop of Canterbury, who would doubtless give inspiration to those Opposition Members who are looking for an industrial strategy.

§ Mr. Gordon Brown
I welcome the Minister to his new post. Will he confirm that, despite what he says, his Insolvency Service is predicting that insolvencies will rise to 35,000 this year? That will represent an appalling 60 per cent. increase in the number of business failures. Will the right hon. Gentleman confirm that the industrial policy that he once supported included investment in a research tax credit, a training levy, strengthened regional policy and reorganised export services, all measures that should be implemented immediately? Will he explain why action man is failing to act? Has the right hon. Gentleman exchanged his principles for his presidency?

§ Mr. Heseltine
I have merely exchanged the Department of the Environment for the Department of Trade and Industry. The hon. Gentleman is fully aware that his ideas were very much the discussion basis of the recent general election. Having failed to persuade the country, it is extremely unlikely that he can persuade the House.

§ Mr. John Marshall
I congratulate my right hon. Friend and his colleagues on the reductions in interest rates that have already taken place. May 1 humbly suggest to him that a further reduction may well be necessary?

§ Mr. Heseltine
I shall take the liberty of passing on my hon. Friend's views to my right hon. Friend the Chancellor of the Exchequer.