HC Deb 24 October 1979 vol 972 cc404-5
8. Mr. James Hamilton

asked the Secretary of State for Scotland what is his estimate of the reduction in expenditure which will be effected as a result of his cuts in public support for industrial and commercial development in Scotland.

Mr. Alexander Fletcher

In discussing public expenditure savings it is necessary to distinguish between planned expenditure and actual expenditure. In terms of planned expenditure, Scotland's share of the savings resulting from the announcement made by my right hon. Friend the Secretary of State for Industry on 17 July could amount to £45 million over the next three years. In terms of actual expenditure on programmes under the control of my Department, substantially more public support is available for industrial and commercial development in Scotland in real terms this year than was actually spent last year under the previous Administration.

Mr. Hamilton

Does the Minister remember that in the past three months we have had an increase of 1,000 unemployed in Scotland? The figure now stands at 278,468. Will he bear in mind that the cuts in public expenditure will have an adverse effect in the public sector, particularly the steel industry, quite apart from the increase in VAT? Will he also bear in mind that the gloom in Scotland is being spread not by Labour Members but by small industrialists, who now find that those who claimed to be the champions of the small industrialists have departed from them? Will the Minister take his finger out and do something about it?

Mr. Fletcher

I have already told the hon. Gentleman that in real terms we shall be spending more this year on commercial and industrial development in Scotland than was spent last year. That should go some way towards satisfying his points.

Mr. John Mackay

Would my hon. Friend like to tell the House what is the expenditure of the Highlands and Islands Development Board in this year, and whether it represents an increase or a decrease?

Mr. Fletcher

I am happy to say that this year the Highlands and Islands Development Board will be able to spend £2½ million more than last year, because its budget has been increased to that extent.

Mr. Harry Ewing

In relation to industrial development in Scotland, why has the Scottish Economic Planning Department decided to give up the agency work on behalf of the European Investment Bank? Why is it that the small companies, with which the Minister professes to be so concerned, are now finding, when they make application to the Scottish Economic Planning Department, that their applications will not be considered because the Department is not taking any more applications? They are also being told that the Scottish Economic Planning Department does not know who will be doing the agency work on behalf of the European Investment Bank. What is going on in the Scottish Office at the moment?

Mr. Fletcher

The hon. Gentleman is raising a specific matter about which he should give the House notice, or certainly write to me, if he wants me to consider it.