HC Deb 04 July 1979 vol 969 cc1346-7
2. Mr. Dewar

asked the Secretary of State for Scotland if he will make a statement on the funding of the Scottish Development Agency; and what effect the reduction in its budget will have on the agency's activities and terms of reference.

The Under-Secretary of State for Scotland (Mr. Alexander Fletcher)

As I told the hon. Member for Glasgow, Maryhill (Mr. Craigen) on 19 June, it is intended to achieve a reduction in the agency's published Supply Estimates for 1979–80 of about £20 million. This will still leave the agency with about 25 per cent. more available to it than it spent last year.

Mr. Dewar

Does the Under-Secretary of State accept that that is almost certainly a cut in real terms, given the high rate of inflation that we can expect from the Conservative Government? Will he accept that it is the worst type of ideological prejudice to restrict the operation of the Scottish Development Agency at a time when we can expect cataclysmic unemployment as a result of the Government's policies? Will the Minister please undertake to guarantee that there will be no cut in the type of investment that the agency can make or in the range of its interests, even if he is being mean about the money?

Mr. Fletcher

There is no question of the Government being mean about money for the SDA. It was seriously over-funded. The provisions that are being made for the future of the SDA will be in no way restrictive. They will help to make it more efficient and effective in its future operations.

Mr. Gordon Wilson

If the Minister feels that the SDA is over-funded, why did he not transfer that over-funding to help Scottish shipyards or, indeed, to maintain its interest scheme for the construction of oil rigs in order to maintain employment in Scotland? Is the hon. Gentleman really satisfied with the co-ordination of economic policy as it affects Scotland? How are his policies likely to create employment in Scotland?

Mr. Fletcher

The most important need of the Scottish shipbuilding industry is orders for ships. It is not a matter of funding the SDA or anything else.

Mr. Lang

Does my hon. Friend agree that, useful though the SDA is, like its predecessor, the most important role that the Government can play in creating new jobs in Scotland is to encourage incentives amongst individual men and women? Will he reaffirm the commitment to give all the help that he can to small businesses?

Mr. Fletcher

Yes. We are committed fully to giving help to small businesses. In that respect we believe that the SDA has a useful role to play.

Mr. Mlillan

Since all the SDA's activities—whether industrial development, factory building or clearing derelection—are connected with the provision of jobs, is it not inevitable that a cut of £ 20 million in the planned budget for next year will result in the loss of thousands of jobs in Scotland?

Mr. Fletcher

That is a gross exaggeration. I am surprised that the right hon. Gentleman should make it. He must know better than anybody the extent to which his Government over-funded the SDA's operations. The SDA will still have 25 per cent. more funds available to it this year than it had last year, despite the cuts.