HC Deb 02 November 1983 vol 47 cc858-9
4. Mr. Craigen

asked the Secretary of State for Scotland what proposals he has to improve Scotland's industrial prospects.

The Under-Secretary of State for Scotland (Mr. Allan Stewart)

The Government have initiated a wide range of proposals to improve Scotland's industrial prospects. Although a number of serious problems remain, the indications are that the measures are having considerable success.

Mr. Craigen

I wish the Minister would say where these successes are. With his experience as director of the CBI in Scotland, will he tell us why Scotland continues to lag behind in terms of business confidence in the latest CBI trends? Bearing in mind the message from Aviemore about the inability of the new technology in Scotland to provide many jobs, where do the Government see future jobs for Scotland?

Mr. Stewart

There has been a marked improvement in the underlying trend in unemployment. The number of vacancies has also improved. I assure the hon. Gentleman that my experience before coming to the House taught me to read all the questions and answers in the CBI's industrial trend surveys. The most recent survey suggests that investment intentions are substantially up on last year. The results on prices and cost show that inflationary pressures are down, both of which are of the greatest importance for the prosperity of Scottish industry in the medium and long term.

Mr. Henderson

In considering Government policy in this respect, will my hon. Friend give more emphasis to the part that service industries can play in job creation and place less emphasis on narrow geographical lines, because the accident of geography results in some firms getting more help than others?

Mr. Stewart

My hon. Friend will know that the Government are reviewing regional policy. I assure him that we are fully aware of the importance of service industries, which, as he will know, account for more jobs in the Scottish economy than manufacturing industry.

Mr. Kennedy

May I direct the Minister's attention to Scottish indigenous traditional industries and ask when the Government will review their scandalous policy on the Forestry Commission in Scotland, which is being forced to sell more and more of its holdings, such as Glenelg and Glen Affric in recent weeks, because that can result only in increased unemployment and a loss of what should be a traditional concern and a basic reserve for the Scottish economy? When will the Government change that scandalous approach?

Mr. Stewart

I totally disagree with the hon. Gentleman's analysis on forestry. We are fully aware of the importance not only of forestry itself but of using the products of Scotland's forests for industry.

Mr. Hirst

Does my hon. Friend agree that yesterday's CBI survey showed that profitability in Scottish firms is increasing? Does he welcome that as a sign of future life blood for new investment?

Mr. Stewart

My hon. Friend is right. The survey pointed to increased confidence among Scottish industrialists on the export and investment fronts, both of which are fundamental to recovery.

Mr. James Hamilton

Will the Minister recognise that his statement is not in accord with those being made by industrialists in Lanarkshire, where there are massive redundancies every other week? Will he accept, for a change, the proposal in the booklet that was sent out by the Roman Catholic bishops of Scotland, entitled "Work and Employment", that we should embark on a programme of public expenditure? Is not the time ripe for the Secretary of State for Scotland to go to the Cabinet and for once fight for Scotland and jobs?

Mr. Stewart

My right hon. Friend fights for Scotland and for Scottish jobs with immense effectiveness, if I may say so.