HC Deb 19 March 1964 vol 691 cc1558-60
3. Mr. Bence

asked the Secretary of State for Industry, Trade and Regional Development what special inducements he now proposes to apply in order to attract manufacturers of consumer durables to Scotland.

Mr. Heath

Substantial financial and fiscal inducements are already available to manufacturers of consumer durables setting up in development districts in Scotland.

Mr. Bence

Is the right hon. Gentleman aware that there is grave concern in Scotland because the increasing prosperity and production, banner headlined in the national Press, are not being shared there? Is he further aware that the raising of the Bank Rate as applied to the need to expand capital investment is a serious setback for Scotland?

Mr. Heath

In the first three and a half years of the Local Employment Act, 1960, £21 million was offered to manufacturers on consumer durables to establish new projects in Scotland. A further £11 million was offered for expansion by manufacturers of consumer durables already there. A great deal has been offered to manufacturers, both those already there and those who might go there, and these inducements are the best in any Western industrialised country.

Mr. Bence

The right hon. Gentleman says that these are offers. What acceptances have there been?

Mr. Heath

If the hon. Gentleman wishes to have details he should put down a Question and I will give him the answer.

4. Mr. Bence

asked the Secretary of State for Industry, Trade and Regional Development what steps he is now taking to encourage industries now established in Scotland to remain there.

Mr. Heath

The comprehensive measures which the Government are taking to provide a favourable environment for industrial growth in Scotland will give the best possible encouragement to established companies to continue manufacturing there.

Mr. Bence

Is the right hon. Gentleman aware that in the last month two well-known industrial establishments in Scotland have contracted their production? One has done so completely—the firm is folding up. The other is limiting its production and taking it back to the parent company in Italy. Will the right hon. Gentleman try to do something, particularly with the Canadian Govern- ment, who seem to adopt serious restrictive measures on the import of many Scottish products?

Mr. Heath

We are bound to get this from time to time in the pressures of industrial change and decisions which may have to be made on the basis of commercial judgment. On the other hand, I think the hon. Gentleman knows that we have had some cases in Scotland where a firm has had to close, but a replacement has arrived in a very short time indeed because of the attractions offered by the estates in Scotland.

On the question of trade with Canada, as the House knows, I recently had conversations with the Canadian Minister of Commerce, and we are very glad to see that action has already resulted from that.

Mr. P. Williams

With regard to Board of Trade factories, whether in Scotland, in the North-East, or elsewhere——

Mr. Speaker

Order. The Question is confined to Scotland.

Mr. Williams

I shall confine my self to asking about Scotland. Will my right hon. Friend consider approaching the Treasury so that he may adopt a more positive policy in selling Board of Trade factories to occupants and using the cash income for financing further advance factories?

Mr. Heath

I am prepared to consider proposals from firms which are already in their factories.