Civil Engineering Industry (Hansard, 11 March 1981)

§ 12. Mr. Maxton
asked the Secretary of State for Scotland when he next intends to meet representatives of the civil engineering industry in Scotland to discuss the current situation in that industry.

§ Mr. Rifkind
My right hon. Friend and I met the newly formed Scottish Construction Industry Group, on which the civil engineering industry is represented, last month to discuss the state of the industry, including civil engineering aspects. We undertook that further meetings would be arranged as necessary.

§ Mr. Maxton
Did the industry inform the Minister that 95 per cent. of its work depends upon public sector spending? Is he aware that if there is not a dramatic increase in the amount of money that the Government are prepared to spend on civil engineering projects there will be increasing unemployment and redundancies, and the physical structure of the country in terms of sewerage, water works, roads, railways and so on will be on the verge of collapse within the next two or three years?

§ Mr. Rifkind
It is generally accepted that when there is a recession the construction industry is one of the first to feel the effects, but, equally, when the recession is over the construction industry tends to benefit sooner than other sectors of the economy. I have no doubt that that will happen now in the way that all hon. Members would wish to see it happen.

§ Mr. Allan Stewart
Will my hon. Friend congratulate the industry on its initiative in setting up the Scottish Construction Industry Group, and does he agree that yesterday's announcement about changes in development land tax and the industrial building allowance will be of substantial benefit to the industry?

§ Mr. Rifkind
I agree with my hon. Friend that the new group will be a great advantage in the industry's relations with the Government and local authorities. I agree that the changes in the Budget will have a desirable effect, as will any change in the mortgage rate. That will have a significant and beneficial effect on potential house building in Scotland.

§ Mr. Maclennan
Has the Minister noticed the estimate of Mr. Sandy Shand, the president of the Federation of Civil Engineering Constructors, that 274,000 employees of the construction industry are out of work at present? In the light of the need to improve the basic infrastructure of our country to provide for the ultimate industrial revival, will the Government now initiate a major public investment programme?

§ Mr. Rifkind
As the hon. Member for Glasgow, Cathcart (Mr. Maxton) said earlier, the construction industry depends to a large extent upon public expenditure. It is inevitable that at any time when public expenditure has been reduced, such as under the Labour Government, or under the present Administration, the construction industry will not benefit as a consequence of that policy. That cannot be avoided at a time when the general economic interests of the country require constraints on public expenditure.