Regional Development Areas (Hansard, 11 March 1992)

§ 9. Mr. Hind
To ask the Secretary of State for Trade and Industry when he last discussed with his EC opposite numbers revision of regional development areas; and if he will make a statement.

§ Mr. Leigh
Our intention is to review the map early in the next Parliament after we have won the election.

§ Mr. Hind
When my hon. Friend returns to his desk after the next election has been won by the Conservatives, will he bear it in mind that in the past 10 years west Lancashire has benefited greatly from being a development area? It has attracted inward investment, there are new factories and jobs, and unemployment is now 22 per cent. lower than it was when I was elected in June 1987. In the negotiations, will my hon. Friend especially ensure that 843 west Lancashire and Skelmersdale are adequately supported with European and regional selective assistance through his Department?

§ Mr. Leigh
When my hon. Friend has been returned with an increased majority in his marginal seat, he will no doubt wish to make representations to me as I carry on with my present job. Our review will be objective and it will be based on supporting areas in which there is a disparity in unemployment rates. Of one thing I am sure: the last thing that business in west Lancashire wants is the election of a Labour Government, who will put up business taxes, put up costs and impose a minimum wage.

§ Dr. Kim Howells
As the Minister knows, regional development grants have played an important part in helping to replace some of the jobs lost in mining and steel in south Wales. Is he aware that many of us are concerned because the next generation of inward investment will be attracted not by a low-wage economy or a low-wage work force, but by the best trained and educated work force in Europe? Day by day, the Government are unwilling to put more money into training. Indeed, the Department of Trade and Industry actually agrees with cuts in training imposed by the Department of Employment. Those cuts mean that regions such as south Wales will be less able to compete with other regions in Europe than they are now.

§ Mr. Leigh
That was a very moving speech. If it is true, why is this country the No. 1 location for inward investment? Why do we account for 41 per cent. of Japanese investment in the EC and 36 per cent. of American investment in the EC? The reason is that foreign companies want to come here for a highly trained and highly motivated work force who work for good British companies. That is the truth.