HC Deb 22 July 1964 vol 699 cc465-6
21. Mr. Dempsey

asked the Secretary of State for Scotland if he will take steps, similar to those taken in north-east England, to ensure that main contractors for electricity plant in Scotland subcontract only to Scottish firms, in view of the unemployment situation; and if he will make a statement.

Mr. G. Campbell

As the hon. Member has been informed by my hon. Friend the Parliamentary Secretary to the Ministry of Power, the action to which he refers was taken in special circumstances by the Central Electricity Generating Board. In general, the placing of contracts for plant to be erected in Scotland is a matter for the commercial judgment of the Scottish electricity boards, which operate the Government's general contracts preference scheme for development districts.

Mr. Dempsey

The special circumstance to which the hon. Gentleman refers was a high rate of unemployment in the North-East. Does not he realise that there is a high rate of unemployment in Scotland and that, if these are special circumstances in the North-East, they should be more than special in Scotland? Why should we not receive the same treatment as the North-East? If it is good enough to confine employment contracts to firms in the North-East because of unemployment, why not give Scotland the same treatment?

Mr. Campbell

As I have said, the preference scheme operates in Scotland, and, as the hon. Gentleman will know from the letter which he has received, these were very special circumstances in the North-East and something was done, which the hon. Gentleman will, I am sure, approve, to help unemployment there. I am sure that the hon. Gentleman is keen on helping to relieve unemployment in the North-East as well as in Scotland. If special circumstances arise in Scotland, the electricity boards can, in their own judgment and discretion, take similar action.

Miss Harvie Anderson

Can my hon. Friend say whether any Scottish firms are being given electricity contracts?

Mr. Campbell

Yes. Scottish firms are also supplying to England. So far this year, Scottish firms have received contracts valued at about £11½ million from both the Scottish electricity boards.

Mr. Dempsey

Does not the hon. Gentleman understand that in Scotland now English firms are getting contracts on a carte blanch. basis, without even competing for them? Recent examples have been the training colleges and, now, the main London Road by-pass outside Hamilton. Is it not fair that our own factories and firms should receive exactly the same treatment as firms in the North-East are receiving, having regard to the need to provide more jobs in north Lanarkshire and other parts of Scotland?

Mr. Campbell

What the hon. Gentleman has said does not follow. There are some components and equipment which are not manufactured in Scotland and the boards have to buy from English firms in such cases, but, as I said a few moments ago, Scottish firms supply electrical equipment to England also.