§ 11. Mr. John Smithasked the Secretary of State for Scotland if, in the light of the latest information on employment trends and the attraction of industry, he will make a statement on the future development of the Scottish economy.
§ Mr. Gordon CampbellAs I told the hon. Member for South Ayrshire (Mr. Sillars) on 13th December, there has in recent months been a marked improvement in the economic outlook for Scotland. Oil developments in the North Sea and our entry to the EEC are particular reasons for optimism. But in the longer term the health of the Scottish economy will be largely determined by the success of our counter-inflation measures.
§ Mr. SmithIs the Secretary of State aware that one cause of pronounced pessimism will be the withdrawal of the regional employment premium in 1974, with a loss to the Scottish economy of £40 million a year? How is the Scottish economy supposed to sustain the sudden loss of £40 million?
§ Mr. CampbellThere are differing opinions about the usefulness of that particular measure—[HON. MEMBERS: "Rubbish."] I hear that, too, in Scotland, but the regional employment premium is not due to be phased out until September 1974. The Government have introduced this year a new and very successful combination of incentives, and we shall be continuing to watch for what is likely to be most needed as September 1974 approaches.
§ Mr. BrewisWould it not be a good idea for Scottish Labour Members of Parliament to be represented in the European Parliament and to back up their Conservative colleagues in trying to get money for Scotland from the EEC regional programme?
§ Mr. CampbellThat is a very relevant question. It is one not for me but for the Labour Party.
§ Mr. EadieAs the right hon. Gentleman has told us that he is apprised of the employment prospects in Scotland and is optimistic, will he say what the reduction in unemployment is likely to be in the next two or three months?
§ Mr. CampbellI was speaking of the economic situation when I said in my original answer that the signs were optimistic. I have already said today, and I repeat, that the unemployment trend has been favourable since last March, and I hope that it will continue to be.
Mr. Edward TaylorHas my right hon. Friend established from the Common Market whether, in the event of our wanting to discontinue REP, the Common Market will permit us to do so?
§ Mr. CampbellThat is one point that would have to be considered—whether it would be appropriate. What we have already announced certainly is consistent with our Common Market obligations.
§ Mr. RossWill the Secretary of State take us into his confidence and tell us who, or which body, in Scotland is in favour of the withdrawal of REP?
§ Mr. CampbellNot without notice. [HON. MEMBERS: "Shame."] Opposition Members are simply playing politics.
§ Mr. DalyellName one body.
§ Mr. CampbellIf hon. Gentlemen opposite are in touch with people in industry and commerce in Scotland and those who are thinking of moving in, they will know that opinions have been expressed that that £40 million could be spent much more beneficially in other ways.