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Durham E-Theses Local authority policies, industrial restructuring and the unemployment crisis: an evaluation of the formation and impacts of local economic initiatives in Cleveland 1963 - 1982 Etherington, David How to cite: Etherington, David (1983) Local authority policies, industrial restructuring and the unemployment crisis: an evaluation of the formation and impacts of local economic initiatives in Cleveland 1963 - 1982, Durham theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/7197/ Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in Durham E-Theses • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full Durham E-Theses policy for further details. Academic Support Oce, Durham University, University Oce, Old Elvet, Durham DH1 3HP e-mail: [email protected] Tel: +44 0191 334 6107 http://etheses.dur.ac.uk 2 LOCiL AUTHORITY POLICIES, INDUSTRIAL RESTRUCTURING AND THE UNEMPLOYMENT CRISIS: AN EVALUATION OF THE FORMATION AND IMPACTS OF LOCAL ECONOMIC INITIATIVES IN CLEVELAND 1963 - 1982 David Etherington The copyright of this thesis rests with the author. No quotation from it should be published without his prior written consent and information derived from it should be acknowledged. t1aster of Arts Thesis Submission, Department of Geography, University of Durham, January 1983 .. -.:.,. ABSTRACT L0CAL AUTHORITY POLICIES; INDUSTRIAL RESTRUCTURING AND·THE UNEMPLOYMENT CRISIS: AN EVALUATION OF·THE·FORMATION·AND·IMPACTS OF LOCAL-ECONOMIC 1NrtfATIVES IN ct~VELAND 1963 - 1982 Master of Arts Submission; Department of Geography, University of Durham There is a conspicuous absence in the literature on local authority economic policies of any wide searching analysis of local Government as an institution of the state and component of the overall State structure. This research on economic policy development in Cleveland has arisen from the need to undertake a more indepth critical approach to understanding the mechanisms of local economic policy formation in relation to State intervention in the economy. The major objectives of this research are: ( 1) Analyse and evaluate State economic policy initiatives in the Teesside and Cleveland economy with particular emphasis upon the development of local government policies; (2) From the above analysis, identify central constraints upon the formation and implementation of policies and consider the underlying reasons for there being a gap between policy objectives and outcomes as well as the existence of conflicts and tensions which arise in the course of policy development. The Study concentrates upon two major components of local government economic policy: industrial land allocation (in relation to steel and chemicals), industrial estate provision and urban renewal in Middlesbrough - the latter two policies forming a central plank in achieving objectives for diversifying the local economy. After discussing the emergence of consensus policies about perceived problems and solutions the Thesis concentrates upon the impacts of these policies. These impacts can be identified in the restructuring operations of ICI and BSC which have been facilitated by local authority infrastructural provision 7 land management policies and Regional Development Grant expenditures. The Thesis argues that with the failure to attract new service and other types of v growth v industry to compensate for job losses in the base manufacturing industry the local economy is undergoing a severe structural crisis giving rise to unemployment rates the highest in mainland Britain. The current situation owes much to the forces of international competition and changes in the international division of labour in petro-chemical production 7 the mobility of capital and general responses to the crisis in profitability (in the case of BSC, crisis in financial structure). This crisis has sharpened the conflict of interests over policy objectives - between the environmental lobby, interests representing 'capital intensive' industries, community groups 7 small businesses, central Government etc. The Thesis concludes by analysing how these developments raise critical questions about whether there is still a consensus around policy objectives and about the possibilities of local and central State economic planning. CONTENTS Preface Page No Chapter 1 AN INTRODUCTION AND BACKGROUND TO STAtE INTERVENTION IN TEESSIDE. 1.1 Introduction. 1.2 A historical overview of policy initiatives in Teesside. 1.3 Capitalist production, economic development and the State. 1.4 The UK economy and the post-war British State. 1.5 The Development of the steel and chemicals Industries. 1.6 Issues for policy research. 1.7 Objectives and method of study. 1.8 Framework for policy evaluation. 1.9 Structure and focus of the Study. Chapter 2 THE STATE IN CAPITALIST-'SOCIETY A HISTORICAL 25 MATERIALIST PERSPECTIVE. 2 0 1 Introduction. 2.2 Concept of the State. 2.3 Functions of the State. 2.4 The State and Capital - contradictions and responses. Chapter 3 INDUSTRIAL RESTRUCTURING AND THE CLEVELAND 36 ECONOMY 1963- 77. Accumulation and geographically uneven development. 3.2 Uneven development and the Cleveland economy. 3.3 Developments in steel and chemicals production. 3.3.1 Chemicals. 3.3.2 Steel - The effects of the formation of the British Steel Corporation in Teesside. Page No Chapter 4 URBArJ AND REG~ONAL ECONO~IC POLICY 51 INITIATIVES : THE FORMULATION OF CONSENSUS POLITICS 1963 - 76. 4. 1 Regi9nal planning measures - The 0 Hailsham Strategy'. 4.2 Regional policy and National Economic Planning. 4.3 The emerging economic crisis and policy responses. 0 4.4 Some comments on the Local State 0 • Chapter 5 SPATIAL POLICIES AND INSTITUTIONAL CHANGE !ill 63 TEESSIDE 1963 ~ 74. 5.1 Urban planning and the new Structure Plan. 5.2 Local Government reorganisation. 5.3 Contents of plans - reformulation of consensus politics. Chapter 6 IMPLEMENTATION OF MODERNISATION POLICIES. 70 INDUSTRIAL LAND POLICES. 6. 1 Introduction. 6.2 The reclamation and development of Seal Sands. 6.3 Policies for employment generation and diversification : industrial estate provision and land reclamation. 6.4 Policy prescriptions. 6.5 Dynamics of town centre renewal - the 'ascendancy' of property capital. 6.6 Sub-regional Centre Strategy - urban renewal in Middlesbrough. Chapter 1 CONTRADICTIONS AND CONFLICTS OF URBAN POLICY 90 IMPLEMENTATION: THE DECLINE IN CONSENSUS POLITICS. 7. 1 Land zoning, capital intensive developments and environmental hazards. 7.2 A critical evaluation of industrial estate and small firm policies. 7.3 Politics of urban renewal and the Sub Regional Centre Strategy. Page No Chapter 8 INDUSTRIAL RESTRUCTURING AND UNEMPLOIMENT - CURRENT 131 PROSPECTS FOR THE TEESSIDE ECONOMY. 8.1 Introduction. 8.2 Background : restructuring, employment and unemployment. 8.3 Restructuring in Cleveland - an overview. 8.4 Crisis in petro-chemicals and the future of the ICI in Teesside. 8.5 British Steel : bleak prospects for Teesside. 8.6 Labour market trends and increasing unemployment. 8.7 Conclusion. Chapter ~ INDUSTRIAL RESTRUCTURING, UNEMPLOYMENT AND THE 147 FORMULATION OF LOCAL ECONOMIC STRATEGIES : THE LIMITS TO LOCAL INITIATIVES. Tables-appearing-in appendices Appendix 1 Map of the County of Cleveland. Table- International Comparisons with Performance of British Manufacturing Industry. Table 2 Aspects of the Development of the Manufacturing Sector and of Chemicals and Rubber Production in Industrial Western Europe, 1958-60 - 1976-9. Table-S National Labour Market Trends 1961-76. Table 4 Oxygen Steel Making Plants in the United Kingdom, 1965. Table 5 Classification of Openings of Establishments by Type and Origin in Cleveland. Table 6 Changes in Employment 1966 to 1975: Cleveland Northern Region and Great Britain. Table 1 Large Payments of Regional Development Grants: Great Britain, Northern Region and Cleveland, 1975/76 to 1978/79. Table 8 The Growth of Employment at Wilton, 1946-57. Table-9 Major Investment Projects in the Chemical Industry in Teesside, 1975. Table-1e Chemical Employment on Teesside 1971-77. Table i~ Regional Development Grants Received by Selected Chemical Companies in Teesside 9 ;974~79. Table 12 Regional Development Grant Payments by Individ~al Steel Plant. Table-13 BSC Closures in the UK since 1977. Table-14 Employment Changes by Plant in BSC. Table-~5 Reclamation of Derelict Land in Cleveland, 1974~78. Table-16 Grant Aid to Local Authorities in Cleveland from the EEC Regional Development Fund. Table-11 Employment Growth in Industrial Estates: 1972~77. Table 18 Employment Change in Industrial Estates: 1965 7 1971, 1977. Table·1~ Components of Employment Change in Cleveland. Table-2e Forecast of Employment in Teesside. Table 26a Changes in Employment in Teesside, 1965-91 Service Employment. Table-21 Employment Forecasts for Cleveland, 1981-1996. Table-22 Employment Change, 1961-1977: Middlesbrough Employment Exchange Area. Table-23 Capital Investment in Major Industrial Projects - Cleveland County 7 1974-81. Table-23a RDG Received and Net Jobs lost in ICI and BSC, Cleveland, 31.3.76 to 31.3.79. Table-24 Employment Structure and Unemployment
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