Assisted Area Status (Hansard, 24 February 1982)

§ 13. Sir Hector Monro
asked the Secretary of State for Scotland what consultations he is having with the Scottish Development Agency and the local authorities about the changes in assisted area status later this year.

§ Mr. Younger
There is close contact with the Scottish Development Agency on matters of this sort, and the proposed changes have been discussed on a number of occasions with local authorities. The points made in discussion will be taken into account in the review of those areas which are due to become non-assisted on I August as a result of being downgraded by more than one step.

§ Sir Hector Monro
Does my right hon. Friend agree that it is most important that he has discussions this summer, before a final decision is taken, with the local authorities so that they can explain their local problems and bring to his notice their wish to retain their present status?

§ Mr. Younger
I appreciate my hon. Friend's remarks. Of course I shall be anxious to hear any views that local authorities or others wish to put to me on those points.

§ Mr. David Steel
Is the Secretary of State aware that there is now some evidence that firms may be considering moving out of places such as the Borders to areas where development assistance will continue? Would it not be cheaper for the taxpayer, and more sensible in the long run, for the Secretary of State to come up with a scheme before 1 August to encourage industry to expand where it already is in Scotland?

§ Mr. Younger
I agree that encouraging industry to expand is desirable, wherever it is. However, the right hon. Gentleman must recognise that the point of regional policy is to concentrate resources where they are most needed. A regional policy that fails to do that is not doing the best possible job for the areas in greatest need.

§ Mr. Harry Ewing
Is the Secretary of State aware that the hon. Member for Dumfries (Sir H. Monro) was a member of the Government that took the decision about which he now complains? If the hon. Member for Dumfries feels that the Government of which he was a member got that decision wrong, does it not concern the Secretary of State that the decision is wrong, and does he agree that the question of assisted area status should he examined in more detail before irreparable damage is done to what is left of a very depressed Scottish economy?

§ Mr. Younger
The hon. Gentleman did not listen to my hon. Friend's question. My hon. Friend was part of the Government who decided to make the changes and also to have a review this year. My hon. Friend was asking for information to be received as part of that review, which he was right to do.