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Development Areas (New Industry)

Volume 807: debated on Monday 30 November 1970

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48.

asked the Secretary of State for Trade and Industry how many firms have withdrawn their intention to set up in development areas since June, 1970; and if he will give the number in each area.

Five such cases have been notified to me: one each in Scotland, Wales and the Northern Development Area, and two in Merseyside. The reasons for withdrawal are not connected with investment incentives.

asked the Secretary of State for Trade and Industry what steps he is taking to advertise through the mass media the incentives offered by the Gov- ernment to firms to set up in special development areas, development areas, and intermediate areas; and if he will place a specimen of the material to be used in the Library of the House.

I expect shortly to resume Press advertising. I will arrange for a specimen of the material to be put in the Library when it is available.

asked the Secretary of State for Trade and Industry what was the annual expenditure for the three years 1967 to 1970 on publicity aimed at attracting new jobs to the development areas; and what is the proposed annual expenditure for the years 1970 to 1973.

Government expenditure on publicity to attract industry to the assisted areas was £179,000 in 1967–68; £201,000 in 1968–69; and £185,000 in 1969–70. The provision for 1970–71 is £194,200. Figures cannot yet be given for subsequent years.

asked the Secretary of State for Trade and Industry if he will enumerate the number of firms who have so far responded to the Government's new proposals for development areas and intermediate areas since 27th October, 1970.

It will take time for the new incentives to be reflected in investment decisions by firms and it is too early to make an assessment of the kind suggested.

asked the Secretary of State for Trade and Industry if he plans to continue grants to the North-Eastern, Cumberland, Welsh and Scottish Development Councils in 1971–72.

The previous Administration made clear to the North-East and Cumberland Development Councils that these grants would not be renewed after the current financial year. The grants to the Scottish Council (Development and Industry) and the Development Corporation for Wales are matters for my right hon. Friends the Secretaries of State for Scotland and Wales.

asked the Secretary of State for Trade and Industry how many of his headquarters staff are specifically and exclusively employed to promote the development areas and to contact firms directly who have expansion plans.

The whole of the Distribution of Industry Division, with a staff at headquarters of 176, is concerned to promote the development and intermediate areas. Six of them are specifically and exclusively engaged on publicity work and on the preliminary discussions with firms enquiring about locations for new developments.