Problems of the North-East

Part of Civil Estimates, 1964–65 – in the House of Commons at 12:00 am on 16 July 1964.

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Photo of Mr Fergus Montgomery Mr Fergus Montgomery , Newcastle upon Tyne East 12:00, 16 July 1964

Who can deny the influx of new industry into the North-East recently and also the expansion of firms already there? I.C.I. is spending more than £45 million on expansion in the Tees-side area. It is spending more, indeed, than at any other time on development. In the last quarter of 1963 the northern region headed all the regions in the total area of sq. ft. to be provided under I.D.C.s. Geographically, recovery in the North-East has started at both ends of the growth zone.

The hon. Member for Bishop Auckland criticised the growth zone because certain parts of the North-East were not included. But I agree with the view that as the zone becomes more prosperous this prosperity will spread to the areas just outside it. I believe that the North-East is beginning to show signs of the prosperity that we all want in that area. We have a number of component manufacturers settling in the area, which is convenient for the supply to Scotland and the Midlands as well as the Swedish motor car firms. Of course, there are still problems, and no one denies them, but they are very different from those facing us a year ago.

One important problem is that of skilled labour. There is a danger that, with the influx of new industry, there may be a shortage of skilled labour in the North-East and there is, therefore, urgent need for action to be taken for more industrial training. In some cases, firms which have moved to the North-East have had to bring in a nucleus of skilled workers from outside the region. Industrial training is a national problem, but it is particularly vital to the North-East. Much more needs to be done to train workers for the skills which they will need.

I wish to draw the attention of hon. Members opposite to a report this week from the Northern Regional Board for Industry. During the last quarter of this year 76 I.D.C.s were issued for 2,989,430 sq. ft. of production space. This should provide jobs for 8,048 people. I do not think there could be any better tribute to the work which this Government have done than is contained in the leader in yesterday's issue of the Newcastle Journal