§ 14. Mr. James Davidsonasked the Secretary of State for Scotland what action he has recently taken to alleviate the effect of current economic strictures upon the industrial economy of Scotland.
§ Mr. RossI would refer the hon. Gentleman to my replies to the hon. Member for Louth (Sir C. Osborne) on 9th November and to my hon. Friends the Members for Woolwich, West (Mr. Handing) and Glasgow, Govan (Mr. Rankin) on 21st December. Since then, the payment of investment grants has been speeded up, Bank Rate has been reduced three times, and the fixed ceiling on bank advances has been removed. The Government are considering a further programme of advance factories and have put forward for discussion a proposal for a regional employment premium.—[Vol. 735, c. 1281; Vol. 738, c. 1389.]
§ Mr. DavidsonIs the Secretary of State aware of the state of the paper industry in north-east Scotland at present, partly as the result of economic strictures, but also as the result of indiscriminate dumping by Austria and other countries? Will the right hon. Gentleman bring to the attention of the President of the Board of Trade how important this industry is to employment and to the holding of population in the north-east of Scotland?
§ Mr. RossThe hon. Gentleman makes a very serious allegation when he talks of "indiscriminate dumping". There are procedures for dealing with this, if it were proved. I will certainly bring what he says to the attention of my right hon. Friend the President of the Board of Trade. We are not unconcerned about the state of industry in north-east Scotland. The fact that in the North-East, in the area of Aberdeen and round about, the unemployment figure is less than the national average—it is about 2.3 per cent. —gives an indication that unemployment is less serious there than elsewhere.
§ Mr. Bruce-GardyneThe Secretary of State referred to the advancement of the payment of investment grants. Has not the demand for investment grants been far below the Government's expectations in Scotland? If the Secretary of State has any doubt about this, will he look up the reply he received from the Minister of State, Board of Trade?
§ Mr. RossI do not think that the Minister of State, Board of Trade, or, indeed, the Minister of State, Scottish Office, would always agree with the interpretation the hon. Gentleman places upon words.
§ Mr. G. CampbellDoes the Secretary of State recognise that the speeding up of investment grants can be of no assistance to the many parts of industry which do not qualify for them, although they previously got investment allowances?
§ Mr. RossI have heard the hon. Gentleman on this point before. What is happening, and what has been happening in Scotland, in 1965 and 1966 and in the first quarter of this year shows industrial development building at a higher rate than at any time during the comparable period of the early 1960s. The position is far less gloomy in the long term than hon. Members would have us believe.