§ 2. Mr. John Smithasked the Secretary of State for Scotland if he will cause the Scottish Development Department to initiate a study of the effect of regional development policies in Scotland on the rate of redundancies.
§ 23. Mr. Sillarsasked the Secretary of State for Scotland what action the Scottish Office is taking to monitor the effects of the most recent set of Government policies on the Scottish economy.
§ The Secretary of State for Scotland (Mr. Gordon Campbell)The Scottish Economic Planning Board, on which are represented all the Departments concerned, keeps a continuing close watch on all aspects of the Scottish economy.
§ Mr. SmithIs the right hon. Gentleman aware that, so far, the present economic development policies do not seem to have had very much effect on the rate of redundancies? More important, will he arrange for the Government to make an early statement on the future of the regional employment premium which, as he knows, is worth £40 million to Scotland and is supposed to be phased out after 1974? Will he look at this so that incoming industrialists can be given some guarantee that this £40 million will not be taken away from Scotland after 1974?
§ Mr. CampbellOn the first point, I am sure that the whole House will have been pleased to see the improvement in the unemployment figures, particularly last month. On the second point, REP is due to run the course—seven years—set for it by the previous Government. Industrialists know that it is due to be phased out after September, 1974, but it is still too early to know exactly what conditions there may be then.
§ Mr. SillarsIs the right hon. Gentleman aware, from the information he has been given, that as regards male unemployment Scotland's progress is much 1259 poorer than that of the Midlands? Does he not agree that this is because the Government have effectively demolished IDC policy as a relocation instrument during a period of growth?
§ Mr. CampbellNo, I utterly refute that. The IDC policy is still a mainstay of the system. All that has been done is to change it to suit present circumstances.
Mr. Edward TaylorWould my right hon. Friend agree that one of the greatest dangers to employment and prosperity in the west of Scotland is the reorganisation plans of the British Steel Corporation? Can he give a clear assurance that he will be fully consulted before any decision is made by the Government on this matter?
§ Mr. CampbellThe British Steel Corporation has placed its long-term investment plans before the Government and these are being considered. The chairman of the corporation has made certain statements about redundancies, which the House knows about.
§ Mr. RossExactly what advice has the right hon. Gentleman had from his advisory council? Had it anything to say about the relaxation of IDC policy or the likely loss, from the point of view of attracting and assisting labour-intensive industry, caused by the disappearance of REP?
§ Mr. CampbellI presume that the right hon. Gentleman is referring to the Scottish Economic Council. There, all these matters are discussed and different views put forward, but the result is that I get advice from distinguished and leading Scots in different sectors of industry, trade and the unions.