Confederation of British Industry

HC Deb 14 March 1973 vol 852 cc1286-8

23. Mr. John Smith

asked the Secretary of State for Scotland if he will seek to arrange an early meeting with the Scottish Council of the Confederation of British Industry to discuss the most recent developments in the Scottish economy.

Mr. Gordon Campbell

My hon. Friend the Under-Secretary of State for Development has already arranged a meeting for Friday 16th March. This is part of the close and regular contact which I and my colleagues maintain with bodies representing all aspects of industry in Scotland.

Mr. Smith

Will the right hon. Gentleman cast his mind back to an occasion during Question Time last month when he maintained that few people favoured the continuance of the regional employment premium? Does he recall that on that very day the CBI made representations to the Government to continue REP until 1978 and predicted unemployment of 20,000 to 50,000 if REP were not continued?

Will the Secretary of State promise to listen to the CBI, amongst others, in its advocacy of the continuation of REP? Does he intend to put up any fight to stop Scotland from losing £40 million?

Mr. Campbell

Since the Question Time at which this matter last arose it has been announced in the Press that the CBI has changed its mind. However, I have had no representations direct from the Scottish CBI on this matter. The hon. Gentleman misrepresented what I said, because I said that there were differing views. For example, some people in the service industries, which are important industries for Scotland, are critical of a system which discriminates against them. [HON. MEMBERS: "Who?"]

Mr. Bruce-Gardyne

Will my right hon. Friend nevertheless bear in mind that the abolition of REP will slant still further the present system of incentives in favour of capital-intensive industries? Many of us think that the balance is already too far that way. If there are difficulties from a Community point of view about continuing REP, will my right hon. Friend give careful thought to the possibility of imposing a congestion tax on employment in areas of over-congestion which would do much more good to the economy in Scotland than anything in the Industry Act?

Mr. Campbell

These views have been advanced but they are for my right hon. Friend the Chancellor of the Exchequer. I will ensure that my hon. Friend's views, which he has had opportunities to put on other occasions, are brought to my right hon. Friend's attention.

Mr. Ross

Does the Secretary of State recollect that on the last occasion I asked him who was against REP in Scotland and he said that he could not answer without notice? Now that he has had about one month's notice, will he tell us who they are?

Mr. Campbell

Does the right hon. Gentleman recollect that on that occasion I said that if the Opposition had not heard businessmen discussing the pros and cons of REP, they were completely out of touch?

Mr. Grimond

Will the Secretary of State undertake that the effects of the abolition of REP will be considered at the meeting on the 16th and that the effect of levying VAT on transport and freight under the new policies which will come into being consequent upon our entry into the Common Market will also be considered?

Mr. Campbell

It is extremely useful that in two days' time my hon. Friend will be seeing the Scottish Council of the CBI, whose members will no doubt avail themselves of that opportunity to raise these matters. If they do not, I am sure that my hon. Friend will.