Orders of the Day — Local Employment Bill

Part of the debate – in the House of Commons at 12:00 am on 5 November 1969.

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Photo of Mr Robert Elliott Mr Robert Elliott , Newcastle upon Tyne North 12:00, 5 November 1969

I have listened with great respect, as always, to the hon. Member for Oldham, East (Mr. Mapp) and agree with a great deal of what he says. It is strange in a sense that, when I sat on the Government back benches, I sat where he sits now and stood where he has just been standing and made the sort of speech he has just made, particularly about the doubtful effect of blanket aid to the areas of high unemployment. It is salutary to have heard such a speech from the Government back benches at this time.

I agree that there are big firms in certain areas which are not influenced at all by development area policy as we have it. The hon. Gentleman mentioned I.C.I. This is the second time that I.C.I. has been mentioned on the benches opposite this week. The hon. Member for Middlesbrough, West (Dr. Bray) is not here, so I apologise to him in his absence for not being able to give him notice that I would refer to him. I had not intended to mention him. He suggested earlier this week that the great I.C.I. complex in the North-East—where we are glad to have such a big employer—was wasting a good deal of the money forced on it by the Government's policy.

It is our contention, certainly mine, coming as I do from a development area, that a great deal of money—and, as the the hon. Gentleman has just said, it is a great deal of money—being poured into development areas might be poured into them to much greater employment effect than it is at present. That is one of our main criticisms of the Government's development area policy. We contend that it has been ineffective as far as the provision of employment is concerned.

The debates which have anything to do with local employment essentially become parochial. Many hon. Members on both sides have spoken about their own areas. We have just heard a strong and earnest appeal for Oldham. I have taken part in a number of debates over the years on the problems of local employment with particular reference to the North-East. I have said already that I believe Government policy for the development areas to be ineffective at present, and in support of my contention I will quote the present unemployment situation in the North-East.

In October, there were 61,727 people unemployed in the Northern Region—twice the national average. The North-East is still carrying 9·9 per cent. of our national unemployment although it has only 6 per cent. of the population. There can be no quicker or greater condemnation of the five years of Labour Government development area policy than these hard figures, which are of the greatest concern to all of us with responsibility in the North-East.

The right hon. Member for Belper (Mr. George Brown) has had to leave, but I told him that I would refer to his speech. It was, as usual, forceful. He referred to the North-East, as well he might. When I was sitting opposite, I remember how often we were told that our measures were ineffective and that we did not plan—which was the greatest criticism from the then Opposition.

The right hon. Member for Belper, on taking office, headed a new Department of State the recent demise of which is not mourned on this side of the House. And he was responsible for some time for development area policy. He mentioned the North-East, in his usual flowing style and said "that it looks different today." But, swinging round as he said that, his eye fell upon the hon. Member for The Hartlepools (Mr. Leadbitter), and he added, "in places", as indeed he might. The hon. Member for The Hartlepools, a conscientious Member, had been waiting to speak in the debate and no doubt, Mr. Deputy Speaker, he will catch your eye in due course and might well tell the right hon. Gentleman that there certainly are places in the North-East, including The Hartle-pools, which are considerably concerned at the high and persistent level of unemployment.

If one were to be ultra-parochial, coming from a development area where the level of unemployment remains at twice the national average, one would have misgivings about the Bill, but I suggest that those of us who do come from development areas with these persistent problems should try to see the picture as a national one and to find out and determine what it is that is causing our high level of unemployment.

First, I suggest that it is, of course, the failure of the Government to obtain economic growth. If any easing up of the I.D.C. policy is going to aid growth. then let us have it. I would add to what was sensibly stated by the hon. Member for Stoke-on-Trent, North (Mr. Forrester) that the grey areas of today may well become the development areas of tomorrow, and therefore I welcome the Bill, despite the problems which remain in my area.

There is an obvious great danger to the development areas in themselves by an over-emphasis on them, and if the economy of the country can be improved as a whole and strengthened by assistance to areas, especially those lying on the borders of development areas, then let us have liberalisation of I.D.C. policy.

I believe that blanket aid is wrong and always has been wrong. I agree with those who have bemoaned the fact that we have too much in the way of "areas". We have development areas, grey areas and intermediate areas. But whether we have grey or development or intermediate or any other sort of areas, let such aid as is available be given where it is most needed. That is no new policy. It is what we advocated when we were on the other side of the House. When we had high unemployment in the North-East it was our policy, based on the sensible suggestions of the Hailsham Report, to concentrate aid where it was most needed. The spreading of the jam thinly has not worked, and it is encouraging to realise that the Government are at last seeing the error of their ways and are gradually, all too slowly, moving towards the encouragement of industry where it is willing to be encouraged.

I will refer, as have others, to the Hunt Report. Why not have a complete review of development area policy? It has not worked for the past five years. Why should the Hunt recommendation that there should be a complete review not have been accepted? Why not deschedule Merseyside if its problems have been met and overcome? I like to think that I may stand in the House on a future occasion and ask why Tyneside should not be descheduled when its problems have been overcome. If the problems of Merseyside have been overcome, let us have it descheduled.

In other words, the appeal which I make with the utmost strength at my command is that from now on we should be more realistic, more intelligent and more sensible in our approach to development aid policy. Let us give such aid as is available where it is most needed.