HC Deb 15 March 1985 vol 75 c319W
Mr. Neil Hamilton

asked the Secretary of State for Trade and Industry what assessment he has made of the effect of his regional aid policy upon net employment in those industries to which the policy is directed; and if he will make a statement.

Mr. Trippier

Until the recent changes in regional industrial policy, the policy was broadly directed at manufacturing industry in the assisted areas, although assistance was provided to some service sector projects. The available evidence suggests that by 1981 there were between 250,000 and 445,000 more manufacturing jobs in the assisted areas than there otherwise would have been if regional policy had not operated throughout the period since 1960. In addition to the effect on manufacturing industries directly aided, it is estimated that a further 100,000 to 185,000 jobs were indirectly created in the assisted areas in other industries.

It is too early to make an estimate of the employment effects of the changes in regional industrial policy introduced late last year.

Mr. Neil Hamilton

asked the Secretary of State for Trade and Industry what representations have been made to him regarding the effect of regional and other aid given to companies and persons where there is already over capacity in that particular industry; and what checks his Department makes on these matters before making grants to new firms.

Mr. Butcher

I shall reply to my hon. Friend as soon as possible.

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