TNAG-1158-FCO40-1438-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 125

THE NORTH EASTERN REGION

GENERAL NOTE

The North Eastern Region of the Departments of Trade and Industry has a popu- lation of approximately 2.6 million and consists of the counties of Northumberland, Durham, Cleveland and Tyne and Wear. Industrial activity is concentrated mainly on Tyneside, Teesside and Wearside. The Region has for much of the twentieth century experienced an unemployment rate significantly higher than the national average. The unemployment rate in the North Eastern Region is currently

(January 1982) 16.8% (20.0% male), compared to the national rate of 12.5% (15.2% male). The area is also characterised by a relatively low Gross Domestic Product per head (93.0% of the national average GDP per head, 1980 estimate). To a declining but still significant extent the industrial structure of the Region is based on traditional heavy industries. About a quarter of male jobs in the Region still depend on coal-mining, metal manufacture, chemicals, ship- building and repairing and marine engineering.

However, light engineering, electronics and electrical goods industries, fine chemicals and pharmaceuticals and other manufacturing industries are providing an increasing proportion of the Region's employment largely through the introduction of new firms. From 1966 to mid 1981 over 180 firms with outside origins established manufacturing units in the North Eastern Region, currently estimated to be providing 28,900 jobs. In addition development of North Sea oil work has played an important role in the Region's economy and is estimated to support about 4,000 jobs in the Region.

Important developments for the Region in recent years include

1. the construction of the UK's first 10,000 tonnes per day blast furnace

for the BSC works on Teesside at Redcar;

2.

3.

the Kielder Reservoir project, now almost completed, which will provide much needed water supplies for industry on Tyneside and Teesside;

the Tyne and Wear Metro, now under construction, is Britain's first major underground project outside London. Completion of this multi-million pound rapid transit system is due in the early 1980's. The first stage of the project, linking Newcastle with the coast via the northern suburbs of Tyneside was opened in August 1980; the second stage linking Newcastle with Gateshead and South Tyneside was opened on November 15, 1981.

The whole Region is currently designated at Special Development Area, Development Area or Intermediate Area status. Financial incentives under the Local Employment Acts and the Industry Act 1972 are at present available, subject to certain conditions, to manufacturing firms moving to the Region or expanding or modernising an existing operation. These include rent free periods in Government factories. Regional Development Grants (SDAS and DAs only) towards capital expenditure on providing new buildings, on adaptations of existing buildings or on new machinery and plant, and Selective Financial Assistance in the form of a discretionary grant for new projects providing, maintaining or safeguarding employment.

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