HC Deb 24 March 1982 vol 20 cc923-4
11. Mr. Home Robertson

asked the Secretary of State for Scotland what representations he has received about the current review of industrial development areas in Scotland.

Mr. Alexander Fletcher

My right hon. Friend has received many representations from local authorities and others in areas affected by the changes in assisted area status due to take place on 1 August. The points put to him will be taken into account in the review of those areas that are due to become non-assisted as a result of being downgraded by more than one step.

Mr. Home Robertson

Is the Minister aware that both parts of my constituency have suffered from exceptional increases in unemployment since the announcement that they were to lose development area status? Has the hon. Gentleman read the representations from local authorities on this situation? More importantly, has he any means of ensuring that his right hon. Friend the Secretary of State for Industry also reads those representations and takes them into account before a final decision is made?

Mr. Fletcher

My right hon. Friends and I have read and received representations and have met delegations from various parts of Scotland on this important issue. I have already stated that we shall take these matters into account in the review that is taking place, particularly in respect of the areas that are being downgraded by more than one step.

Sir Hector Monro

Will my hon. Friend give the assurance that the Government will have discussions with each regional authority in Scotland before any changes are made in assisted area status? If I may digress for a moment, is he also aware that by tomorrow night the Scots will have defeated the Welsh twice in a week?

Mr. Fletcher

My hon. Friend is always giving helpful information to the House. We are currently carrying out the consultations to which my hon. Friend refers. The matters that he mentions will be taken into account. It is important for areas affected by these changes to bear in mind that although the European Community, through the ERDF, follows Government areas for aid, other aspects of European aid policy, particularly the agriculture fund—an issue that I know interests my hon. Friend—will still be available even if the downgrading takes place. The Scottish Development Agency has authority to operate throughout Scotland regardless of the Government's regional policy. There are other aspects of aid that will still be available to the areas that are being discussed, even in the event of the downgrading taking place.

Mr. Millan

Will the Government examine the whole matter again? We criticised the proposals when they were announced. Unemployment is twice as much as it was then and the matter needs to be re-examined now.

Mr. Fletcher

We are looking at the proposals again, but the right hon. Gentleman should bear in mind that we have given three years' notice of the changes in regional policy that are taking place, unlike the right hon. Gentleman, who stood up at no notice at all and removed such measures as regional employment premiums.

Mr. McQuarrie

While I am grateful for my hon. Friend's comment to the effect that he has been having discussions with regional authorities, may I ask whether he is aware that in Grampian region, where gas and oil have been of great benefit to the nation, the indigenous industries are suffering severely? If the report does not come out until August, when the House will be in recess, it will not give us much opportunity to discuss it in advance and make representations, if necessary, to the Minister.

Mr. Fletcher

I assure my hon. Friend that a statement will be made while the House is still sitting. I am sure he will also recollect that my right hon. Friend took the initiative some time ago and introduced a survey of the areas in Grampian so that we should have a better understanding of the impact of North Sea oil and gas in reaching the decisions that are due under regional policy.