HC Deb 14 March 1973 vol 852 cc1269-70
5. Mr. Sillars

asked the Secretary of State for Scotland if he is satisfied with the rate of progress in the Scottish economy; and if he will make a statement on the further action which he proposes to take.

Mr. Gordon Campbell

As I told the hon. Gentleman on 13th December—[Vol. 848, c. 137–8]—and the hon. Member for Lanarkshire, North (Mr. John Smith) on 21st February—[Vol. 851, c. 454–5]—there has in recent months been a marked improvement in the economic outlook for Scotland. But in the longer term the health of the Scottish economy will depend upon the success of our counter-inflation measures and the maintenance of a high rate of growth.

Mr. Sillars

Is the right hon. Gentleman aware that when we measure the progress of the Scottish economy by the number of new jobs created per 100 persons unemployed it is seen that, in relation to the rest of the United Kingdom, Scotland is progressing the least satisfactorily of any region except Northern Ireland, which has its own peculiar problems? Can the right hon. Gentleman say, if he is satisfied at the moment, whether we shall get Scottish unemployment below 100,000 in the coming year?

Mr. Campbell

I repeat what I have said before. I shall never be satisfied with any results, and I am not satisfied now. However, the hon. Gentleman ought to welcome the change in the unemployment trends compared with a year ago, because they have improved ever since then. He ought particularly to welcome the last figures which show a drop in the number of wholly unemployed in Scotland of nearly 10,000.

Mr. Edward Taylor

As some Scottish industrialists take the view that the maintenance of the welcome improvement in the economy will depend on the continuance of the regional employment premium, has it been established whether the Common Market will allow us to continue it, assuming that the Government wish to do it?

Mr. Campbell

At present there is no question of our infringing our obligations to the Common Market in any way. The Government's policy, stated before we came to office, was that before being phased out REP should run for the full length of seven years arranged by the Labour Government. In doing that we shall not infringe our obligations to the Common Market.

Mr. Ewing

On the subject of the allocation of advance factories to Scotland, is the right hon. Gentleman satisfied that the allocation of 10 out of a total of 50 advance factories is adequate to meet the future needs of the restructured economy of Scotland, in view of the fact that there are vast areas of Scotland where no advance factories have been allocated? I have in mind Stirling, for example.

Mr. Campbell

I recognise the hon. Gentleman's plea for his constituency. The last programme of advance factories announced only a few weeks ago produced the largest single amount of advance factories in any announcement for Scotland that there has ever been.