HC Deb 10 June 1992 vol 209 cc305-6
21. Mr. Byers

To ask the President of the Board of Trade if he will make a statement on his Department's plans for regional policy.

Mr. Sainsbury

The Government remain committed to an effective, well-focused regional policy. I announced to the House yesterday a review of the United Kingdom assisted areas map.

Mr. Byers

Is the Minister aware that, since 1979, unemployment in the northern region has increased by 58 per cent. and that bankruptcies have increased by more than 200 per cent? Will he explain why, at a time of rising unemployment and record bankruptcies, the Government have cut regional assistance to industry in the north by 85 per cent. in real terms? When will the Government discharge their responsibilities to the people of the north by investing in the north so that it can bring real jobs to the people living there?

Mr. Sainsbury

The hon. Gentleman will recall that I said in my answer that the Government remain committed to an effective, well-focused regional policy. The focus, of course, can be improved by reviewing the assisted area map to take into account changes in employment, employment opportunities, industry and other factors in the region since the map was last drawn in 1984. The hon. Gentleman refers to the overall volume of expenditure. He will recall that there was a grant called regional development grant—RDG—which was remarkably unfocused, as I believe is generally agreed. Much of what was spent went on paying companies to do things that they were going to do anyhow.

Mr. John Greenway

Does my right hon. Friend agree that his Department is uniquely placed to consider which regions of Britain are best placed to have more Government Departments relocated there from London? While the whole House and, indeed, the whole country looks forward to the demolition of Marsham street, can my right hon. Friend ensure that only those jobs which need to remain in London will remain here and that as many as possible will be relocated to the regions, especially Yorkshire?

Mr. Sainsbury

I cannot give a guarantee to my hon. Friend, who is a great supporter of Yorkshire, but I can assure him that it has long been the Government's policy to relocate as many Government jobs as appropriate. I am sure that what my hon. Friend has said about the attractions of Yorkshire will have been carefully listened to by the Departments and will be taken into account when they come to make decisions about how many of their employees can be relocated and where they might best be relocated.

Mr. Wigley

Does the Minister accept that if regional policy is to be more effective in the future than it has been in recent years it needs not only a commitment of resources but an ability to fine tune so that assistance can be given in areas where there may be substantial closures of companies? Will he give an undertaking to the House both that the resources will be available and that flexibility will be built in to do a real job?

Mr. Sainsbury

I do not accept that regional policy has not been effective in the past, but I recognise the need for the policy to respond to changing circumstances. Indeed, that is why we are redrawing the map. Several of the instruments of regional policy, such as regional selective assistance, can take account of circumstances at any given moment in any given area.