§ 12. Mr. Robert Hughesasked the Secretary of State for Scotland what representations he has had against public expenditure cuts in Scotland; and what replies he has sent.
§ Mr. Gordon CampbellNone, Sir.
§ Mr. HughesIs it not a fact that every area in Scotland is suffering severe cuts in terms of expenditure on hospital 400 development and on the development of services for the elderly, following his circular advising authorities not to put any further work out to contract? Is the Minister aware that many people in Scotland feel that things will be held back even more? Will he give an assurance that local authorities will lift the embargo on new contracts from 1st January?
§ Mr. CampbellThe answer to the first part of the question is "No"; this is not a question of severe cuts in different parts of Scotland. Because of the overheating of the construction industry, it was arranged that there should be a re-phasing in the last quarter of this year. Projects will go forward in the New Year under arrangements to be made.
§ Mr. DouglasWill the right hon. Gentleman, without anticipating the Government's White Paper on public expenditure, pay regard to the fact that the philosophy of public expenditure has been related to a high and sustained growth rate? Will he bear in mind the worry of many people that high and sustained public expenditure may be endangered if we move into a zero or negative growth situation? What, in the circumstances, would be the right hon. Gentleman's attitude in the Cabinet?
§ Mr. CampbellThat would be breaching the confidentiality of Cabinet proceedings—and I cannot answer a question concerning a hypothetical situation, although it is an interesting one. We recognised that in many areas the construction industry was not able to meet the dates which were in view, and to make sure that tenders were reasonable it was necessary to carry out a rephasing.