HC Deb 17 May 1978 vol 950 cc453-5
10. Mr. Fairgrieve

asked the Secretary of State for Scotland if he will make a statement on the prospects for the Scottish economy over the next six months.

Mr. Millan

The results of the latest CBI industrial trends survey for Scotland were considerably more encouraging than those reported in January, and unemployment has fallen in recent months. As in the United Kingdom economy, I expect some recovery in activity in Scotland during the present year.

Mr. Fairgrieve

In spite of what the Minister said, may I ask him whether, despite the appointment of the Chancellor of the Duchy of Lancaster to look after small businesses, anything has been done for small businesses, which are the one area which could provide more employment for Scotland, to remove the frustrations and restrictions with which they continually have to deal and which are stopping them from taking on more people?

Mr. Millan

I do not know why the hon. Gentleman should overlook the measures announced in the Budget, which are included in the Finance Bill which is now going through the House.

Mr. Donald Stewart

Is the right hon. Gentleman aware of the recent meeting in Dingwall of Highlands and Islands local authorities and attended by four Members from four different parties in the House at which it was agreed to press the Secretary of State for an extension of the job creation programme which has been so beneficial in the Highlands and Islands area in terms of employment and amenities that have been missing for a long time? Will he press his colleagues to see whether it is possible to answer that request in an affirmative way?

Mr. Millan

The right hon. Gentleman will know that, as a special dispensation, the job creation programme was carried on for a little longer in his constituency, I think uniquely in the United Kingdom. We tried to deal with the particular situation there. However, the job creation programme has been replaced by the special temporary employment programme from 1st April. That is working now with local committees, which have had funds allocated to them. I believe that it will do a better job than we got under job creation. The funds available to the new programme are considerably increased, and will increase over the next couple of years.

Mr. Buchan

Is it not hypocritical for the leader of the Scottish National Party to ask for proposals that would involve additional public expenditure a week after his party savagely cut tax-raising in the Budget in the interests of a handful of the rich? Is it not even more astonishing, in view of the earlier question from the hon. Member for Aberdeenshire, East (Mr. Henderson), that the SNP seems to object to capitalists in clogs but not to capitalists in kilts?

Mr. Millan

My hon. Friend has made a number of fair points. It is true that not only the SNP but others in the House have been anxious to reduce taxation but are simultaneously extremely anxious to increase public expenditure, particularly when it affects their own constituencies. I do not know one Member of the Opposition who ever comes to me and asks me to spend less money in his constituency.

Mr. Russell Johnston

If the Government's policy works as well as possible, what is the most reasonable forecast that the Secretary of State can make of unemployment a year from now?

Mr. Millan

I cannot make a forecast. The hon. Gentleman will know that it has never been the practice to make forecasts of unemployment. However, he will have seen what has happened over the past few months, which, as far as it goes, is very encouraging. There was a substantial reduction of unemployment in Scotland on the seasonally adjusted figures for last month. I hope that that progress will continue.

Mr. Teddy Taylor

Was the survey to which the Secretary of State referred taken before or after the recent sharp rise in interest rates, which have fundamental consequences for jobs? Does he admit that after four years of his Administration he should feel thoroughly ashamed that a Government elected on a slogan of "Back to work with Labour" have created a higher rate of unemployment than at any time since the Second World War?

Mr. Millan

That is not true. If one compares the relative position in Scotland today with what it was when we took over at the beginning of 1974, one sees that there has been a considerable improvement.

The relative Scottish position compared with that in the United Kingdom is 134 now, compared with 157 in the first quarter of 1974, which was the inheritance that we had from the Conservative Party. The CBI is reasonably optimistic about the prospects for unemployment in Scotland at present, unlike the hon. Member for Glasgow, Cathcart (Mr. Taylor), who has the most miserable attitude towards everything.

Mr. Heffer

Does my right hon. Friend agree that my hon. Friend the Member for Renfrewshire, West (Mr. Buchan) was slightly unfair to the leader of the SNP, whom I regard as a decent, harmless sort of chap? Does he agree that it is some other SNP Members with whom he should concern himself?

Mr. Millan

I do not think that there is any answer to that.