§ 3. Mr. Knoxasked the Secretary of State for Scotland how many individuals and organisations have made representations to him concerning the payment of financial assistance to industry; and whether he is satisfied with the organisation of the present system of paying grants.
§ The Under-Secretary of State for Scotland (Mr. Alexander Fletcher)My right hon. Friend has had no representations concerning the payment of financial assistance under section 7 of the Industry Act 1972 for which he is responsible.
§ Mr. KnoxIs my hon. Friend aware that some confusion and uncertainty are caused by the fact that regional development grants are the responsibility of the Department of Industry, while other financial assistance is the responsibility of the Scottish Economic Planning Department? Will he have discussions with the Department of Industry to improve co-ordination?
§ Mr. FletcherI am not sure that that is so. There may be some confusion in the minds of some hon. Members, but I think that industry in Scotland is fully acquainted with the position, in that the regional development grant office, which comes under the Department of Industry, as my hon. Friend suggests, is virtually next door to the industrial development office, which handles section 7 assistance.
§ Mr. David SteelIs the Minister aware that I have just received a letter 497 from a major employer in my constituency which suggests that the guidance that the Government are giving to the Scottish Development Agency will adversely affect that employer's planned expansion of a factory in my constituency, contrary to the agreements in principle that have been arrived at with the SDA? Will the Minister come clean about what is happening in inhibiting industrial development by the Government's policies?
§ Mr. FletcherI am unaware of that case. The SDA is free to exercise its discretion on matters of this kind throughout Scotland. It is not being inhibited by the Scottish Office in this respect.
§ Mr. Bill WalkerDoes my hon. Friend agree that a more positive way of the Government giving aid to industry is for Government Departments to place orders with Scottish firms? I have in mind one in particular, the Jetstream order. We should like to see a decision on that fairly soon.
§ Mr. FletcherI understand my hon. Friend's point. The Government are most anxious to encourage their own Departments and nationalised industries to buy British. In this respect, I hope that my hon. Friend's sentiments will soon become reality.
§ Mr. John Home RobertsonDoes the Minister recognise the value of incentives to industry in many parts of Scotland? What representations has he made to the Secretary of State for Industry about the withdrawal of development area status from many regions of Scotland, in particular the Lothians and the Borders?
§ Mr. FletcherRepresentations about regional development policy are made direct to my right hon. Friend the Secretary of State for Industry, who deals with them.