§ 11. Mr. Youngerasked the Secretary of State for Scotland what recent consultations he has had with the Scottish Development Agency concerning the high level of unemployment in Scotland.
§ Mr. Gregor MacKenzieMy right hon. Friend the Secretary of State and I frequently have consultations with the Scottish Development Agency on relevant aspects of Scottish economic development, including questions of employment.
§ Mr. YoungerHas the Minister of State seen the trenchant criticisms published yesterday by the Comptroller and Auditor General about the Agency's activities? Bearing in mind that in a number of cases—notably Scofisco—it has destroyed more jobs than it has created, will he now agree to our proposal to set up the Select Committee on Scottish Affairs to make a full investigation into its work, to enable it to do a better job in reducing the intolerable levels of unemployment created by this Government?
§ Mr. MacKenzieI read this morning what the Comptroller and Auditor General had to say. The sentence that I best remember is the one in which he said that he was now satisfied with the monitoring of the Agency's finances.
In regard to Scofisco, with which we dealt at some length last time, I have never heard such rubbish, even from the Opposition Benches. In its environmental, factory and industrial work, the Agency does a great deal in providing jobs for the people of Scotland, especially in the hon. Gentleman's own constituency of Ayr, where, on a 30-acre site, it has 900 jobs for Digital and 200 jobs for Prestwick Circuits.
§ Mr. SillarsIs the Minister of State aware that most people in Scotland regard the Agency as a most useful weapon for economic development? But does he not agree that it would be even more effective if the Government reconsidered their decision not to establish a Scottish oil 437 development fund? Is the right hon. Gentleman aware that oil company directors and Treasury officials do not live in areas of multiple deprivation, but that that is the fate of at least one in 10 children in the West of Scotland? Are not the Scottish people entitled to their cut of the oil profit as well?
§ Mr. MacKenzieThe matter of oil revenue is quite another question. We all recognise that much of the money we have received from the North Sea over the years has gone to the work of the Agency. It now has a good budget, which is now doing a great deal of useful work in Scotland.
§ Miss Harvie AndersonIs the Minister aware of the great difficulties that arise when the Agency subsidises a profitable firm and it thereby comes into commercial conflict with a neighbouring firm, which results in the loss of jobs somewhere and not in the retention of employment? This is a very serious aspect, which has happened on more than one occasion in recent months in the West of Scotland.
§ Mr. MacKenzieFor a start, I cannot think where it has happened recently. Secondly, it is well recognised that the whole purpose of setting up the Agency was for it to have an entrepreneurial role. That is precisely why it is an Agency and not just a department of the Government's activity. In any event, the guidelines that are laid down, which I am sure the right hon. Lady has studied, oblige the SDA to operate on normal commercial lines.
§ Mr. HendersonWhy do the Government persistently set their face against a Scottish oil fund, which has been called for by the STUC, the Scottish Council and many other responsible bodies of opinion in Scotland? Why are the Government taking up this stance?
§ Mr. MacKenzieIf the hon. Gentleman cares to put down a Question about the White Paper, we shall be very happy to answer it, but the matter does not arise on a Question about the Scottish Development Agency.
§ Dr. BrayDoes my right hon. Friend agree that the Agency should be encouraged to take a greater initiative than it is taking, and that if it does not occasionally have a failure it is not doing its job properly?
§ Mr. MacKenzieThe Agency has invested or lent money to the extent of about £17 million. Out of about 30 companies in which it has made investments there have been only three failures. What must worry anyone who is genuinely anxious about the Agency's work is that while it is constantly being sniped at, as it is, about the kind of investments it makes we shall never get any progress at all.
§ Later—
§ Mr. YoungerOn a point of order, Mr. Speaker. As you have so often told us, you have no responsibility for the answers that Ministers give. But can you help us with regard to the misrepresentation of reports made to this House? A few minutes ago the Minister of State indicated that the Comptroller and Auditor General had expressed the opinion that he was now satisfied with the procedures of the Scottish Development Agency. I have here the report of the Comptroller and Auditor General on that subject and I find that there is no such statement, or anything like it, in that report. Can you protect the House against such misrepresentations?
§ Mr. SpeakerThe hon. Gentleman has made his point. I deprecate the use of points of order to answer other statements that have been made. Other opportunities must be sought—not points of order.