§ 12. Mr. Fairgrieveasked the Secretary of State for Scotland whether he has any plans to alleviate some of the difficulties currently facing the paper-making industry in West Aberdeenshire.
§ Mr. Gregor MacKenzieThe Paper and Board Sector Working Party has, in its latest report, referred to difficulties which companies in the Aberdeen area have experienced in recruiting and holding labour in competition with the oil-related industries. I shall be pursuing this matter through my own Department and the Manpower Services Commission.
§ Mr. FairgrieveDoes the Minister appreciate that, apart from the problem of the wages being paid to incoming oil-related industries, which he mentioned in his reply, the industry has been doubly hit by the reduction of the Aberdeen travel-to-work area to a lower grade? Will he 439 consider restoring that status or taking other measures?
§ Mr. MacKenzieI understand the difficulties of the paper-making companies in the hon. Gentleman's constituency. He may recall that I lost two paper mills in my own area in the early 1970s, so I am conscious of the problem. I can assure him that the Government will do everything they can to help. Although companies in the area are no longer eligible for regional development grant, they can still receive selective financial assistance under the Industry Act. My officials will be only too happy to discuss the question with any company. One company in the hon. Gentleman's constituency has already had assistance in this way, and we are in discussion with one or two others about this matter.
§ Mr. WattWill the Minister now admit that the removal of development area status from Aberdeen has been an absolute disaster, and that many companies, such as paper-making companies and textile companies, are suffering permanent damage? Where there definitely is a case for removing oil-related industries from eligibility for grants, does not the right hon. Gentleman think that the grants should be allocated or withdrawn on an industry basis and not on an area basis?
§ Mr. MacKenzieI am not prepared to accept what the hon. Gentleman says. In the nature of things, regional policy means that after it has been in operation for some time some areas must be upgraded and some downgraded. We all recognise that there has been success in the North-East of Scotland—something that I would have thought the hon. Gentleman would appreciate. There are still many benefits to the North-East in remaining an intermediate area. It can still benefit from selective financial assistance under Sections 7 and 8 of the Act.