HC Deb 25 July 1963 vol 681 cc1757-9
16. Mr. W. Hamilton

asked the President of the Board of Trade if he will make a statement on the number of firm commitments which have now been made by industrialists to expand in Scotland as a direct result of the Budget proposals.

Mr. Erroll

Since the Budget the Board of Trade has received 136 applications for assistance under Sections 2, 3 and 4 of the Local Employment Act, 1960, and 54 preliminary applications for the new 10 per cent. grant on plant and machinery in respect of projects in Scotland. Over 90 per cent. of these are expansions by Scottish firms. I cannot say how many of these applications are firm commitments by the industrialists concerned.

Mr. Hamilton

Cannot the right hon. Gentleman be more specific? Is he aware that the situation is extremely serious in Scotland, which has still more than 90,000 unemployed of whom two-thirds have been unemployed for more than eight weeks? In other words, it is long-term unemployment, and the right hon. Gentleman should take this matter much more seriously and urgently than apparently he is doing.

Mr. Erroll

I am taking it seriously and I am dealing with it urgently. If it had not been for the seriousness of the situation we should not have introduced the Local Employment Act, 1963, which represents an opportunity for helping all development districts, including Scotland, in a way not previously possible. While I am in no way complacent, I am pleased to be able to announce these figures today.

Mr. Hector Hughes

Is the right hon. Gentleman in a position to state in what particular areas these expansions have taken place, or will take place, with particular regard to north-east Scotland and more particular regard to the City of Aberdeen, where there is considerable unemployment?

Mr. Erroll

I cannot give details about 136 applications without notice.

17. Mr. W. Hamilton

asked the President of the Board of Trade what estimate he has made of the extent to which the new measures announced in the Budget will provide more new jobs in Scotland than will be lost over the next three years.

Mr. Erroll

None, Sir. The success of the Budget measures will depend on the momentum in the economy generally, on the amount of steerable industry, and on industrialists' choice of location as between development districts over the country as a whole.

Mr. Hamilton

Should not the right hon. Gentleman and the Government have some estimate of the kind of target they set and the number of new jobs that they are likely to expect, and have a right to expect, from the Measures which they have recently introduced, and set this against the number of jobs that are likely to be lost? Is he aware that 750 to 1,000 jobs were recently lost in the linoleum industry in Kirkcaldy and that according to my hon. Friend the Member for Dunbartonshire, East (Mr. Bence) jobs are being lost in the shipyards? Can the right hon. Gentleman give a specific undertaking that more jobs will be created as a result of the Government's policy than will be lost through the decline of industries?

Mr. Erroll

The undertaking which I am prepared to give is that I shall do my utmost to steer steerable projects to the development districts, including Scotland.

Mr. Jay

How does the right hon. Gentleman explain the fact that after three years of the Government's Local Employment Act and all these new Measures there are now nearly twice as many people unemployed in Scotland as there were at this time of the year two years ago?

Mr. Erroll

Because the run-down in some of the older industries has been more rapid than the development of new industries. The achievements over the last three years are very substantial, as the right hon. Gentleman knows from his visit to the new motor works in Scotland.

Mr. Steele

Surely the right hon. Gentleman ought to have some assessment of what has happened. How accurate can his assessment be in view of the fact that Denny of Dumbarton has just indicated that it is going into liquidation? Surely after all the deputations and letters received from Dumbarton he will bear Dunbartonshire in mind?

Mr. Erroll

I am bearing Dumbarton in mind and I hope to visit Dumbarton before very long. [Interruption] If the hon. Gentleman who interrupted does, not want me to go to Dumbarton perhaps he will tell me so.