HC Deb 07 May 1980 vol 984 cc264-6
7. Mr. Knox

asked the Secretary of State for Scotland when next he plans to meet representatives of the Scottish Confederation of British Industry.

Mr. Alexander Fletcher

My right hon. Friend and I have met representatives of the Scottish CBI several times since taking office and have made it clear that we are prepared to meet them at any time they wish.

Mr. Knox

When my hon. Friend next meets the members of the Scottish CBI will he discuss with them the effect that the current unrealistically high exchange rate is having on Scottish manufacturing industry? Does my hon. Friend agree that that makes it difficult to sell the exports of Scottish manufacturing industry abroad and that it is having a depressing effect on output in Scottish manufacturing industry?

Mr. Fletcher

The CBI has raised this matter—as have most people in industry in Scotland—and is fully aware of the reasons why the exchange rate is high. It is known that the rate must reach its level on market conditions. Incidentally, the most recent report of the CBI showed that Scotland's export performance is still above average for the United Kingdom.

Mr. Canavan

What are the CBI, or the Government, going to do about the problems facing the foundry and paper industries bearing in mind that in the Denny and Dunipace area of my constituency about 500 redundancies have been announced over the past three months alone? Will the Government look sympathetically at the request by the Central Region council to upgrade that area to special development area status?

Mr. Fletcher

We are aware of the difficulties facing the industry mentioned by the hon. Gentleman. They are the result of commercial and trading considerations which the Government are unable to help. As to an approach from Central region about development area status, that is a matter for my right hon. Friend the Secretary of State for Industry.

Mr. Allan Stewart

Will my hon. Friend discuss with the CBI its recent representations about the burden of rates on industry and commerce in Scotland? Is it not a fact that in Socialist areas rate increases have been such as seriously to threaten very large numbers of jobs, especially in smaller firms?

Mr. Fletcher

My hon. Friend is absolutely right. The CBI has made representations about the high level of rates in a number of Scottish areas which, of course, is affecting jobs. I am sure that my hon. Friend is also aware that delegations from those local authorities come to Ministers to complain about unemployment, then go back to the regions, increase rates by more than 40 per cent. and wonder why unemployment is increasing.

Mr. Harry Ewing

Will the Minister make clear to the CBI that, even in Scottish regions where local authorities have seriously cut services—for instance, in the Borders region—the level of rate increases are still of the order of 38 per cent. or 39 per cent.? Does he not accept that it is the Government's policies which are damaging industry in Scotland and that basically it has nothing to do with the local authorities?

Mr. Fletcher

The point is that rates increases in Conservative authorities are considerably less than rates increases in Labour authorities.