§ 39. Mr. Woodburn
asked the Chancellor of the Exchequer whether he will include in the restraints imposed to deal with inflationary tendencies in areas of over-active trade, provisions to stimulate development in areas of under-employment.
Fiscal and monetary measures tend inevitably to be general in their effects. But provisions already exist under the Local Employment Act 878 which enable the Government to stimulate development in areas of under-employment and these powers are being vigorously exercised by my right hon. Friend the President of the Board of Trade.
§ Mr. Woodburn
Is the Chancellor aware that the proof of the pudding is in the eating, and the fact is that these measures have not been successful in areas of unemployment? There is a great danger from his new measures being applied generally that they will bring further unemployment and further contraction in the areas that require development. Is he not prepared to look into measures that would discriminate between those needing curtailment and those needing development?
I agree with the right hon. Gentleman that the proof of the pudding is in the eating, but I should have thought he was too depressing. I should have thought that considerable progress was being made in finding new employment for those areas.
§ Mr. Jay
As the Chancellor is again squeezing bank credit, have the Government explicitly drawn the attention of the banks to the list of development districts under the Local Employment Act so that they may take account of this in making advances?
I think the banks are aware of the areas concerned. I will look into that point. I have not squeezed the Bank Rate.