Employment Prospects (Hansard, 14 March 1984)

§ 3. Mr. MacKenzie
asked the Secretary of State for Scotland if he will make a statement on employment prospects in Scotland.

§ Mr. Younger
The growth now evident in the national economy and the measures—particularly the abolition of the national insurance surcharge—announced yesterday by my right hon. Friend the Chancellor of the Exchequer will enhance employment prospects in Scotland.

§ Mr. MacKenzie
Did the Secretary of State listen last night to the president elect of the CBI, who, whilst welcoming the abolition of the national insurance surcharge, was unable to give any specific figure as to how it would affect employment? Although some of us do not expect the Secretary of State to give specific figures, we do not see in the Budget, which taxed fish suppers, petrol and the rest of it, any stimulation for growth and for jobs. We do not see the Budget as the means of getting more than 300,000 people in Scotland off the dole queue.

§ Mr. Younger
I appreciate the right hon. Gentleman's remarks. I agree that it is probably difficult to make a precise estimate of the number of jobs affected by the abolition of the national insurance surcharge, but one does not need to be very brilliant to realise that a Government who put a tax on jobs are likely to discourage employment, while a Government who abolish such a tax are likely greatly to encourage it.

§ Mr. Malone
Does my right hon. Friend agree that one of the most heartening aspects of yesterday's Budget for the North sea oil industry was the Chancellor of the Exchequer's undertaking to look at a change of tax regime on incremental oilfield development? Does my right hon. Friend further agree that within the next few years that should provide substantial additional employment in Scotland, particularly in the north east?

§ Mr. Younger
I appreciate that point and very much hope that a change would have that effect. One of the most encouraging factors in many parts of Scotland is the new activity in the oil-related development sector and the extra jobs that that is beginning to create.

§ Mr. Donald Stewart
Is the Secretary of State aware that the Fraser of Allander Institute has found that there is less reason for optimism about the future of Scotland than about that of other parts of the United Kingdom? Why does the right hon. Gentleman not fight against Scotland's percentage of the national cake being reduced year by year?

§ Mr. Younger
I do not agree with the right hon. Gentleman's latter point. The Scottish share of national expenditure has increased from 9.8 per cent. in 1979 to 10.4 per cent. The right hon. Gentleman may find, as no doubt others will, that a Budget that generally concentrates on helping industry is bound to help to create jobs, particularly in Scotland.

§ Sir Hector Monro
Will my right hon. Friend take this opportunity to read out to the doom and gloom brigade opposite some of the recent announcements that add up to such good job prospects in Scotland? I think of electronics and Imperial Chemical Industries, which my right hon. Friend is to see on Friday.

§ Mr. Younger
The past few weeks have certainly been remarkable for inward investment in Scotland. In the past four weeks we have had the big new development Hewlett Packard, the Shin-Etsu Handotai development at Livingston and the giant National Semi-Conductor at Greenock. Only today a small but nevertheless important addition has been made to the electronics industry in Scotland with the announcement of yet another new development in Cumbernauld by a firm called Berkeley Glasslab, which is providing a new manufacturing unit.

§ Dr. Godman
Will the Secretary of State confirm a report on Radio Scotland, which was heard this morning by my wife, to the effect that an announcement is to be made later this week about an order by Caledonian MacBrayne for a passenger ferry being placed with a yard south of the border which has no experience of building such a passenger ferry? If he confirms that report, will he explain why the Scottish Office was so unsuccessful in dissuading a Scottish company from placing such an important order outwith Scotland?

§ Mr. Younger
I cannot confirm that report. Caledonian MacBrayne has put out to tender a replacement for the Hebrides and is evaluating tenders from various firms. It is for that company to decide which is the best tender.

§ Mr. Johnston
Does the Secretary of State remember that he was last in Fort William during the election to promote the Conservative cause? When can we expect him back, given that unemployment in Lochaber has risen steadily since his visit? What hope can he give to the people there of improved prospects?

§ Mr. Younger
I have been very concerned about unemployment in Lochaber for a number of years. The people of Lochaber will find, as will people in other parts of Scotland, that the measures announced yesterday will be of great benefit in helping to improve employment prospects.

§ Mr. Bill Walker
Does my right hon. Friend agree that the Government's policy on aerospace and other high technology projects, such as the A320 and the European fighter, mean a lot to Scotland, particularly to companies, such as Ferranti, which are engaged in high technology?

§ Mr. Younger
That is correct. The part that Scottish industry plays in many high technology industries throughout Britain is an important factor in employment throughout Scotland.

Mr. Ron Brown
Is it not ironic that the Scottish Office did nothing to save the Henry Robb yard which was in the running for building the Cal Mac ferry?

§ Mr. Younger
I was also sorry about the closure of that yard, which I knew well in years past. The matter was for British Shipbuilders to decide, taking into account a proper balance between its activities and the market that it has to serve.

§ Mr. Dewar
Does the Secretary of State accept that many people in Scotland believe that yesterday's Budget showed a lack of courage and imagination? According to the Chancellor's projections in the White Paper on public expenditure, we may expect the present tragically high levels of unemployment to continue during the next two or three years. Does the Secretary of State accept that the slogan "Steady as you go" makes no sense at all if the economy is on the wrong course? Does he agree that a neutral Budget is a betrayal of the 350,000 Scots on the dole queues?

§ Mr. Younger
Of all the criticisms that one might make of yesterday's Budget, even if one disagreed with it, the last would be that it lacked courage and imagination. It was full of both. It is widely accepted as helpful that the Chancellor was able to look further ahead than just one year.
The hon. Gentleman mentioned dole queues. Anyone in Scotland who reflects upon what it would be like if we went back to the rates of national insurance surcharge which the Labour Government introduced and kept will understand that it would be bad for employment in Scotland and be glad that we have abolished it.