Scottish Economy (Hansard, 23 October 1968)

§ 22. Mr. Wolrige-Gordon
asked the Secretary of State for Scotland what action has been taken to accelerate the development of the Scottish economy during the past quarter; and if he will make a statement.

§ Mr. Ross
The Government have adopted a wide range of measures to accelerate the development of the Scottish economy. Their success is now beginning to be reflected in more investment and more industrial building, and in comparatively lower levels of unemployment and migration to England.

§ Mr. Wolrige-Gordon
Is the Secretary of State aware that that reply is far from specific? Of all the things which could most help to accelerate the development of the Scottish economy, a reduction in the rate of taxation, particularly the Selective Employment Tax, is surely the most important. Could not the right hon. Gentleman intensify his efforts in this respect?

§ Mr. Ross
Hon. Gentlemen should make up their minds. One minute they are asking for more to be done, which means expenditure. The next they ask that taxation be reduced. The results of the public expenditure in Scotland can now be seen to be the greatest drive Scotland has ever had to modernise our roads and to build new factories, hospitals and schools.

§ Mr. William Hamilton
To what extent is the development of the economy retarded by the shortage of skilled labour? To what extent is this being remedied by the increase in the training facilities available?

§ Mr. Ross
This is a relevant consideration. We may run into considerable difficulties arising from the absence of skilled labour. We have made considerable inroads into solving this problem by industrial training, by the retraining of people displaced from their jobs, and by grants for intraining in industry.

§ Mr. G. Campbell
As the job losses in Scotland for the last three years have been much greater than the targets predicted by the Government in the White Paper—resulting in minus 7,000 jobs a year instead of plus 10,000—will not the right hon. Gentleman take this very seriously and consider further measures?

§ Mr. Ross
Yes. The new jobs coming in have acceded to our targets. We are considerably stepping up our efforts to attract new industry. The high level of industrial development certificate approvals in the last few years has been well maintained in this year. This year we have already allocated 14 advance factories, a problem which was worrying the House last year.

§ 28. Mr. G. Campbell
asked the Secretary of State for Scotland if he will now issue a report on the first half of the period covered by his White Paper on the Scottish Economy, Command Paper No. 2864, namely, the three years ended 31st December, 1967.

§ Mr. Ross
The quarterly reports on Scottish economic development already give regular information on economic progress, and statistical indicators are given in the Digest of Scottish Statistics, the latest edition of which is about to be published.

§ Mr. Campbell
But since the White Paper was issued with a fanfare of publicity very shortly before the 1966 election, and since information now becoming available shows a massive gap between the targets and the results, is the Secretary of State not under an obligation now to make a special half-term report according to the principle recommended by the Minister of Technology?

§ Mr. Ross
No, I do not think there is any necessity for that, because our targets remain the same and I have already answered Questions about this. The actual figures of progress in relation to new factories, I.D.C.s and the rest, are all available to hon. Members if they want to pursue them.

§ Mr. Younger
Is not the Secretary of State aware that his complacency in this matter is alarming? What is the use of producing a plan if all its figures are not attained? As his colleague in England had to admit that their National Plan had to be withdrawn, why does he obstinately refuse to do the same about his own?

§ Mr. Ross
What I have said is that the aims in respect of improvements in the Scottish economy must remain the same. I have said in answer to Questions that it make take a little time longer to reach them, but that does not mean that we do not continue to make the effort.