HC Deb 29 June 1995 vol 262 cc1073-5
6. Mr. McGrady

To ask the Secretary of State for Northern Ireland what is his current assessment of potential inward investment to Northern Ireland. [29806]

Mr. Ancram

The climate for investment in Northern Ireland from overseas has been greatly enhanced by a sustained absence of violence. It is expected that a continuation of peace will result in an increased flow of inward investment.

Mr. McGrady

I thank the Minister for his reply but, in the context of his earlier reply to the hon. Member for Bury St. Edmunds (Mr. Spring), is he not deeply concerned about the gross inequality in the distribution of job creation in Northern Ireland? The southern part of Northern Ireland has been neglected by inward investment projects. He will be aware that, for the years 1990 to 1995, 39 projects were created, but none in my constituency of South Down; in fact, only 3 per cent. of the inward investment visits of the past 10 years have come to South Down. Will the Minister take direct action to redress that inequality through a new inward investment strategy, allied perhaps to a decentralisation of jobs from Government Departments to the more rural areas?

Mr. Ancram

The hon. Gentleman knows that I am not responsible for that particular aspect, but I shall certainly ensure that Lady Denton is made aware of his remarks. He will have heard me say that it is very much the intention of the Government to ensure that the benefits in terms of inward investment which will, we hope, flow from a sustained peace will be shared by all parts of the community in Northern Ireland. That deals with the sort of points that he raised.

Rev. William McCrea

Surely the Minister can understand the feelings of a number of hon. Members considering the inequality of the distribution of prosperity and jobs, bearing in mind the fact that very little has been directed towards the likes of Mid-Ulster. Prosperity and jobs have been directed to the Foyle constituency or to Belfast, West, to the neglect of Belfast, East and the constituency that I have the privilege to represent. Surely there should be proper equality of distribution. Bearing in mind the shots that were fired in Downpatrick last night, does the Minister agree that it is only with a clear renunciation of violence and the proper decommissioning of weapons that we shall make real progress in the Province?

Mr. Ancram

The hon. Gentleman has already heard what I had to say about the importance of peace in terms of achieving the type of inward investment that we want. I hear what he says and he has heard what I have to say about trying to ensure that the benefits of peace are enjoyed across the community. Clearly, in terms of inward investment, there has to be some recognition of the fact that those coming to invest will be attracted to certain areas. The job of the Government is to ensure that, as far as possible, the areas that require investment are given sufficient exposition to make them attractive to investors.

Mr. William Ross

Does the Minister agree that, although inward investment in the retail industry is welcome in that it increases choice, what Northern Ireland really needs is more investment in manufacturing industry? Will he therefore support the efforts made recently in Washington and at the earlier conference in Belfast to ensure a significant increase in investment in manufacturing industry, not only from the United States but from Great Britain and further afield?

Mr. Ancram

We are as aware of the importance of trying to attract manufacturing industry, with its export potential, as of the other basic industry which is clearly going to flourish—tourism. There has to be a balance to ensure that the benefits of the prosperity that can be achieved through peace are spread as widely as possible.

Mr. John Marshall

Does my hon. Friend agree that inward investment in Northern Ireland is greatly encouraged by the fact that we have not signed up to the social chapter or the minimum wage?

Mr. Ancram

I could not have put it better myself.

Mr. Spellar

Does the Minister agree that job retention and job creation are a crucial part of economic development in Northern Ireland? In that context, is he aware that the recent round of compulsory competitive tendering in the Down Lisburn health and social services trust resulted in the loss of 55 jobs and that more than 80 per cent. of those affected were women? That is a pattern repeated in trusts all over Northern Ireland and is a direct result of the Government's policies. Is the Minister aware that we have recently been advised that the policy appraisal and fair treatment guidelines, which are intended to ensure that departmental policies have no adverse impact on, among other things, one gender as compared to another, do not apply to market testing in the health service? Does he accept that it does not help—

Madam Speaker

Order. The question is about inward investment. Will the hon. Gentleman relate his question more to inward investment, which is what it is all about?

Mr. Spellar

Does the Minister accept that it does not help inward investment policy for the Government to be seen to be ignoring their own PAFT guidelines?

Mr. Ancram

I find it difficult to relate the hon. Gentleman's question to inward investment, so I can reply only that the inward investment in health goes to patients, to ensure that they get the best care possible.