HC Deb 20 January 1993 vol 217 cc359-60
1. Mr. Mandelson

To ask the President of the Board of Trade if he will make a statement on the Government's policies to bring new industry to the north.

The Minister for Energy (Mr. Tim Eggar)

We seek to ensure that the north and all other regions in the United Kingdom benefit from the prosperity which new industry brings.

During the past six years our policies and grant incentives have enabled the north to attract £2 billion of inward investment creating or safeguarding 15,000 jobs.

Mr. Mandelson

To everyone listening in the northern region that will seem a pathetic reply, especially when regional assistance to it has been cut by 78 per cent. since 1979, unemployment has been higher there for each of the past 20 years and when the recovery was weaker in the second half of last year than it was in the first

Will the Minister give an assurance that, when he makes his announcement on regional assistance, there will be no reduction in assisted area status for any locality in the northern region? Will he give a commitment that the funding of the Northern Development Company will be maintained in real terms? When will the Government create the one-stop business advice centres, a network of which they promised us last year?

Mr. Eggar

The hon. Gentleman has not managed to improve on his record when he was advising the previous Leader of the Opposition. He does not appear to know the unemployment figures in his constituency, which have fallen sharply since 1986, and he completely downgrades the tremendous success of the northern region in attracting companies such as Nissan and Fujitsu. I am suprised that he, as a new Member, does not spend more of his time praising the people of the north, the Northern Development Company and other organisations on their spectacular success in attracting inward investment to the north.

Mr. Devlin

Has not the hon. Member for Hartlepool (Mr. Mandelson) just quoted figures that were bloated in 1978 by the massive subsidies paid to loss-making industries, particularly steel and shipbuilding? Is not it the case that, since then, we have diverted much of that money more profitably and usefully into Teeside development corporation, Tyne and Wear development corporation and the Northern Development Company as well as a host of other agencies that have brought new investments to the north and are currently constructing several new advance factories, one of which I shall have the honour of opening on Friday?

Mr. Eggar

I agree completely with my hon. Friend. I very much hope that inward investors will look to the messages delivered by my hon. Friend rather than to those of Opposition Members.

Mr. Fatchett

The Minister would be better advised to use his energy to answer the questions specifically put by my hon. Friend the Member for Hartlepool (Mr. Mandelson) rather than simply trading in personal abuse.

I put the same question to the Minister. Against the background of rising unemployment in the north of England in the past two years, the loss of jobs in manufacturing industry and the fact that much industry in the north of England is dependent upon regional assistance, will the Minister give the House a clear commitment that no area in the north will lose under the review of the assisted areas map?

Mr. Eggar

I am delighted to be exchanging pleasantries once again across the Dispatch Box with the hon. Gentleman now that he has followed me from education. Obviously he has not done his homework in this new area of responsibilities. He knows perfectly well that we await decisions on regional assistance in the light of the current overall look at the map.

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