HC Deb 13 July 1983 vol 45 cc867-9
7. Mr. James Hamilton

asked the Secretary of State for Scotland when he expects an upturn in the economy in Scotland and in Lanarkshire in particular; and if he will make a statement.

Mr. Allan Stewart

The level of economic activity in Scotland was already higher in 1982 than in 1981. Prospects in Scotland and in Lanarkshire depend on progress in the United Kingdom and world economies, and will be enhanced by the advances already made in productivity and competitiveness.

Mr. Hamilton

Is the Minister aware that his reply is not in accord with the sentiments expressed by many industrialists, both inside and outside my constituency, who state categorically that there is no light to be seen at the end of the tunnel? Is he further aware that 19 per cent. of the insurable population in Lanarkshire are unemployed? Will he ask his right hon. Friend to tell the House once and for all whether he has made any solicitations to Mr. Ian MacGregor about the negotiations that are taking place with a steel company in America, to ascertain what the outcome will be? If the negotiations are successful, will the right hon. Gentleman accept the outcome at Cabinet level? If the Cabinet does not accept them, will he resign?

Mr. Stewart

The issue which the hon. Gentleman raised in the last part of his supplementary question was referred to by the hon. Member for Monklands, West (Mr. Clarke) in his Adjournment debate on Friday. I refer the hon. Gentleman to the reply of my hon. and learned Friend the Minister of State, Department of Trade and Industry at c. 590.

No one denies that Lanarkshire has had deep and historic industrial problems. However, when the previous Conservative Government were in office 4,730 new jobs were created through selective financial assistance and almost 1,900 jobs were safeguarded. I believe that Lanarkshire will benefit immensely from the integrated projects that have been announced in Motherwell and Coatbridge, which will have budgets of over £80 million.

Mr. Milian

As Lanarkshire is dependent on the steel industry, as Mr. MacGregor's plan is going ahead, as far as he is concerned, in respect of the United States deal, and as Mr. MacGregor has said that the Secretary of State for Scotland has only to ask for details of the plan to be told what the details are, has the right hon. Gentleman bothered to ask?

Mr. Stewart

I have already answered that question by referring to the answer given by my hon. and learned Friend the Minister of State in the Adjournment debate on Friday. I confirm that no proposals for a deal with a United States company have been received by the Government. If and when they are received, my right hon. Friend will examine the implications for Ravenscraig with particular care.

Mr. Millan

I am not asking about the Minister of State's answer on Friday. I am asking whether the Secretary of State for Scotland has asked for details of the plan.

Mr. Stewart

I have already made the position crystal clear. No proposals for a deal with a United States company have been received. If and when they are received, my right hon. Friend will examine them with great care, especially the implications for Ravenscraig.