HC Deb 15 June 2000 vol 351 cc1085-6
1. Ms Hazel Blears (Salford)

What assessment he has made of the report from Manchester business school on the impact of Granada on the north-west; and if he will make a statement. [124579]

The Minister for Competition and Consumer Affairs (Dr. Kim Howells)

I understand that the report commissioned by Granada provides a positive picture of the company's contribution to the economy of the north-west.

Ms Blears

I am grateful to the Minister for that reply. The Department is on record—somewhat courageously perhaps—as acknowledging that there is a real difference in the performance of our different regional economies. It is a fact that gross domestic product in the north-west is only two thirds of that in London and the south-east. Granada supports 4,000 jobs in the region, and has invested £1 billion in production facilities. It is a flagship for success in our region. Will the Minister take into account the strong feelings of many hon. Members that if there were to be a merger between United and Carlton it could damage the regional diversity of the ITV network? It is crucial that regional diversity be maintained, and that we do not have southern domination, which could damage the industry as a whole. I ask my hon. Friend to take those feelings seriously into account.

Dr. Howells

As high-technology companies employ people with valuable skills, ITV companies are likely to have a significant impact on the economies of their regions, no matter where they are in Britain. We shall certainly take into account all the factors that my hon. Friend has outlined for us.

Mr. Graham Brady (Altrincham and Sale, West)

May I further urge the Minister to take into account the importance of maintaining Manchester's position as the second city in the United Kingdom for the media industry? I stress that it is vital, particularly for news and regional programming, that the regional diversity of the ITV network should be maintained.

Dr. Howells

I can certainly give the hon. Gentleman that assurance.