HC Deb 05 December 1984 vol 69 cc340-1
7. Mr. Ewing

asked the Secretary of State for Scotland if he will make a statement on the anticipated effect of the Government's regional assistance policy on the Scottish economy.

Mr. Younger

The measures announced on 28 November maintain a strong regional policy in Scotland and extended regional development grants to service industries for the first time.

Mr. Ewing

I should like to ask the Secretary of State about the economy of the central region. Does he realise that three of the areas in Scotland granted special development area status have unemployment rates below that of Falkirk, and that five of them have unemployment rates below that of Alloa? Why has the Secretary of State totally ignored the representations both of Central regional council and Falkirk district council about the need for development area status for the Falkirk area? Will the right hon. Gentleman consider meeting the local authorities, or at any rate the Labour Member of Parliament, to discuss the seriously deteriorating situation in the Central region?

Mr. Younger

I appreciate the hon. Gentleman's concern. I shall be glad to see any hon. Member who wishes to see me about any such matter. It is not a straight matter of slotting an area into a category on the ground of the unemployment level. We also take into account other factors such as the industrial structure in the area. I fully appreciate the hon. Gentleman's concern about the central area—a considerable part of which is still an assisted area—but I still believe that the best way to look at the matter is in the broadest sense, taking into account other factors as well as unemployment.

Mr. Corrie

Is my right hon. Friend aware that 200 steel workers in my constituency are under threat of redundancy? Will he assure us that the area will be given any aid that can be given under the scheme, to try to alleviate unemployment?

Mr. Younger

I was glad to see the deputation from the area that my hon. Friend brought to see me, and I am considering very carefully everything that the members of the deputation said to me. The decision is one for the general management of the British Steel Corporation, and rightly so, but I am glad that, under the regional changes, the area will be in the top tier for regional policy assistance.

Mr. Home Robertson

Some areas of very high unemployment in Scotland are located in places that are no longer assisted areas, and which—as in the case of my own constituency—may not have been assisted areas for some time. What hope is there for development and job creation in such areas?

Mr. Younger

Any properly planned regional policy is bound to concentrate on the very worst areas. Under all Governments, small pockets of high unemployment can occur in areas where the general level of unemployment is not very high. I can assure the hon. Gentleman that there are still powers available to the Scottish Development Agency, and other powers, that can be used even for areas that are not assisted. No doubt those powers could be used in appropriate cases.