Scottish Development Agency

HC Deb 19 December 1979 vol 976 cc607-9

6. Mr. Norman Hogg

asked the Secretary of State for Scotland if he will define the responsibilities of the Under-Secretary of State for Scotland, the hon. Member for Edinburgh, North (Mr. Fletcher) in relation to the Scottish Development Agency.

Mr. Younger

The responsibilities of my hon. Friend the Under-Secretary of State concern the exercise by the Agency of those statutory functions which require ministerial approval under the Scottish Development Agency Act and the guidelines.

Mr. Hogg

The new guidelines require the SDA to refer certain investment proposals to the Under-Secretary of State. Will the right hon. Gentleman explain in what way the wisdom of his hon. Friend is greater than that of the collective wisdom of the board?

Mr. Younger

It is not a question of greater wisdom. It is more a question of both parties playing a specific role. My hon. Friend and I have the role of checking investment above a certain level by the Agency. That is to the mutual benefit of the Agency and the Government.

Mr. Gordon Wilson

Does the right hon. Gentleman accept that one real problem facing the Agency is the low level of regional incentives compared with those in the Republic of Ireland? In view of the fact that, so far, the Agency has displayed all the dynamism of a tortoise in relation to industrial investment in my constituency, does the right hon. Gentleman agree that urgent action is vital in view of the rising trend in unemployment?

Mr. Younger

I am always anxious to hear suggestions on this matter from all hon. Members. Regional incentives in the areas where they are concentrated—particularly in West Central Scotland—are as high as any in Western Europe. As far as a comparison with Ireland is concerned, we have to make a careful comparison of all facets of investment. When that is done, little difference can be found.

Mr. Sproat

Does my right hon. Friend appreciate that all sensible people in Scotland warmly welcome the firm new guidelines that have been put forward? Until he and the Government took a grip on the SDA, it showed a net return on investment of minus 14.3 per cent. under the previous Administration.

Mr. Younger

I am grateful to my hon. Friend for his remarks. The Agency has welcomed the guidelines and believes that they will lead to an improvement.

Mr. Harry Ewing

Is the Secretary of State aware that there is grave public concern about the way in which his hon. Friend the Under-Secretary of State has interfered in the Agency's work? That public concern has been expressed in the national press by a host of bodies. Will the right hon. Gentleman give the Agency an assurance that his hon. Friend will stop interfering? Economics taught at Greenock high school are no better than those taught at any other school in Scotland.

Mr. Younger

The hon. Gentleman is wrong in the implication of the last part of his question. Apart from the Labour Party in Scotland, nobody has suggested that my hon. Friend has done other than carry out his duties in an excellent manner. It is interesting to note that what he has done so far has been under the guidelines set by the previous Administration.