... for property causes prices to rise and labour shortages result in upward pressure on wage rates. National wage bargaining deprives regions of a natural advantage, which would enable wages to fall in depressed regions where land, labour and housing are cheaper and encourage greater regional job creations. External social costs such as congestion, overbuilding and pollution in expanding areas, deterioration of property stocks and public goods in areas which are declining. For example, an unimproved terrace house in a Northern town might sell for £25,000 as it stands and cost £20,000 to modernise, a total of £45,000 but because of the absence of local wealth its sale price when modernised might only be £40,000. The essence of regional strategy should be to create wealth by firstly correcting the market failure and secondly to achieve a greater degree of equity and fairness in the distribution of goods and services and finally to enable the ...

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