HC Deb 21 November 1977 vol 939 cc553-4W
Mr. Woof

asked the Secretary of State for Industry what further progress he expects to make in 1978 with the EEC Commissioner for Regional Policies on the Regional Fund.

Mr. Alan Williams

I hope that agreement will be reached by the end of this year on proposals for a Community regional policy and for amendments to the European Regional Development Fund Regulation.

Mr. Woof

asked the Secretary of State for Industry how many inquiries his Department has received since January 1975 from companies in the EEC contemplating new projects in the development areas of the North Region.

Mr. Cryer

Since 1st January 1975 an estimated 100 EEC firms made specific inquiries of my Department about the possibility of setting up manufacturing projects in the Northern Region. Officials in my Department and of the Foreign and Commonwealth Office in posts in EEC countries are also in regular contract with foreign firms, discussion with which may lead at a later date to investment in the Northern Region. In addition, my Department makes a grant in aid of £1 million annually to the North of England Development Council to support its own promotional work on inward investment.

Mr. Woof

asked the Secretary of State for Industry what was the amount of public money expended during the years 1974, 1975 and 1976 to the latest available figures to encourage the movement of industry to the North-East development area.

Mr. Cryer

I regret that information is not available in the form requested, but the estimated annual amounts of expenditure on regional assistance to industry in the northern development area for the years 1974–75–1976–77 are as follows:

(Units = £ million)
1974–75 … … … 122
1975–76 … … … 185
1976–77 … … … 237

All expenditure is gross and includes payments to nationalised industries. The figures include regional development grants, regional selective financial assistance, expenditure on Government factories, investment grant differential—estimated—in favour of the assisted areas, residual expenditure under the Local Employment Acts and regional employment premium.

In addition, the following grants were paid to the North of England Development Corporation:

(Units = £ thousands)
1974–75 … … 100
1975–76 … … 106.6
1976–77 … … 106.6

These grants are made to supplement funds raised locally to enable the Corporation to seek out new industry for the region by promotional activities elsewhere in the United Kingdom and overseas.