§ Mr. Hefferasked the Secretary of State for Industry whether the Government have considered the report by PA Management Consultants Limited on inner Merseyside; and if he will make a statement.
Mr. Alan WilliamsThe report which the Government commissioned from PA 361W Management Consultants Limited on the economic regeneration of inner Merseyside is a valuable contribution to the public debate on how to tackle the severe problems of this area. I have arranged for copies to be placed in the Library of the House. I would like to acknowledge the assistance given the consultants during the course of their study by local bodies. Their comments on the report are being fully considered.
Co-ordination of the various bodies concerned with industrial development and promotion and possible new ways of promotion are subjects to which the report rightly devotes considerable attention. One of the main purposes of the Liverpool inner city partnership committee is to concert efforts to stimulate economic regeneration.
Accordingly, my right hon. Friend the Secretary of State for the Environment has written to the leaders of the Liverpool City Council and of the Merseyside County Council to propose consideration at the September partnership meeting of the establishment of a sub-committee of the partnership under the chairmanship of my hon. Friend the Under-Secretary of State for Industry. This sub-committee would consider the implementation of the appropriate recommendations of the consultant's report.
The consultants' recommendation of a charter for industrial relations is primarily for local employers and trade unions to consider. The Department of Employment is currently analysing certain aspects of industrial relations in Merseyside, and the results of this analysis will also be relevant.
The report considers that the regional and other incentives available for manufacturing industry are adequate. This reflects the effects of the increased free rental and interest-free periods announced for special development areas. Merseyside has benefited considerably from these and other measures since the present Government came into office. Offers of regional selective financial assistance up to 30th June 1978, amounting to £58.5 million have been made for 276 projects costing in total £360.2 million, creating or safeguarding 43,600 jobs. In addition, offers of assistance amounting to £2.8 million have been made under the various national schemes for investment for 32
362WUnder the Government's advance factory programme, 21 terraced blocks comprising 79 small units and 49 standard advance factories have been authorised for Merseyside. They are expected to provide 3,800 jobs when completed and in full production. A further factory-building programme was announced today providing Merseyside with an additional 230,000 sq. ft. of floor space.
Of the £11 million made available under the April 1977 construction package, £4.3 million has been devoted to industrial purposes. The drawing up of the first inner area programme has almost been completed. It will doubtless emphasise measures to regenerate the local economy and is being allocated £10 million a year initially for the three years from 1978–79.
The regional selective assistance available to mobile service industries in the assisted areas is under review to see whether improvements can be made. The consultants' views on this matter will be fully taken into account.
The Government are considering the recommendation of the consultants relating to the port of Liverpool in consultation with the Mersey Docks and Harbour Company.
The Government agree with the report that active steps must be taken to ensure that adequate land is available for industrial development. This is an important issue confronting the Liverpool inner city partnership committee. As the first step, the partnership is already reviewing holdings of vacant land, including that held by nationalised industries and statutory undertakers. The review also covers the problems of bringing these holdings into productive use.