§ Q5. Mr. BatesTo ask the Prime Minister what assessment he has made of the impact of the social chapter on inward investment in the northern region; and if he will make a statement.
§ The Prime MinisterThe northern region has an excellent record for attracting inward investment and 135 creating jobs. Since 1985 the Northern Development Corporation has secured 36,000 jobs for the region. By piling on costs to business, the social chapter would destroy jobs in the northern region, as it would across the country.
§ Mr. BatesIs my right hon. Friend aware of the decision by Black and Decker to close its production plant in Limburg in Germany and move to Spennymoor in county Durham because of the excessive level of non-wage labour costs in Germany? Does that not clearly demonstrate that the best way to keep manufacturing jobs in the north-east is to keep Britain out of the social chapter?
§ The Prime MinisterI entirely agree. What is clear when one looks across Europe is that the social on-costs of every country other than the United Kingdom are rendering those countries progressively uncompetitive with Japan, the United States and the Pacific basin. What the social chapter would mean is the loss of jobs in the United Kingdom. I very much welcome the news for the people of Spennymoor. The Durham plant has a very high and very well-deserved reputation for quality. Black and Decker knows that high costs destroy jobs and that, for that reason, Britain is the best place in the European Community in which to do business and in which to invest.