HC Deb 31 October 1984 vol 65 cc1286-7
8. Mr. Henderson

asked the Secretary of State for Scotland if he will make a statement about commercial and industrial investment in Scotland since June.

Mr. Allan Stewart

In the period 1 June to 30 September 1984, 92 offers of selective financial assistance were made under the Industrial Development Act 1982, with a value of £14.3 million. Total project investment associated with these offers was £197 million. Since June a number of North sea oil-related contracts have been announced, and over the past year Scotland has been particularly successful in attracting electronics industry investment.

Mr. Henderson

Is my hon. Friend aware that the figures will be encouraging? Will he say something more about his impressions of, and the possible benefits which may flow from, his visit to the United States during the recess? What steps have been taken to encourage existing Scottish firms to supply goods and services, particularly components, to the companies which are now settling in Scotland from elsewhere?

Mr. Stewart

My hon. Friend is right. Inward investment means opportunities for equipment suppliers from domestic industry. Building up the whole electronic sector is an essential part of our strategy and of the SDA's detailed work on the Scottish economy.

I assure my hon. Friend that my trip to the United States proved encouraging in relation to prospects for further inward investment. As he knows, I am fairly cautious by nature in making forecasts, but I certainly hope that as a result of the detailed talks that I had with a number of companies, projects involving 1,000 new jobs will be announced in the next two or three months.

Mr. Buchan

Will the Minister explain why, each time he makes an optimistic forecast about industrial or commercial prospects for Scotland, the unemployment figures increase?

Mr. Stewart

My forecasts are always cautious and I am not aware of having made any forecast that was not subsequently fulfilled. As the hon. Gentleman is very well aware, and as my right hon. Friend has told the House, the total number of jobs in Scotland is increasing.

Mr. Home Robertson

Has the Minister noted that most Scottish health boards do not want private commercial investment in their catering and cleaning services within the integrated NHS? Will he now accept that the intrusion of "fast-food, fast-buck" merchants into the NHS is entirely undesirable, and will he therefore tear up the Scottish Office circular on this subject?

Mr. Stewart

I am not clear about the precise relevance of the hon. Gentleman's point in relation to investment, but as my hon. Friends will be aware, he is talking rubbish.

Mr. Bill Walker

Does my hon. Friend agree that the disappearance of jobs has been historically due to the problems of the past and that the jobs that are now coming in are jobs for the future? Tomorrow in Aberdeen there will be an announcement about some jobs that are coming from inward investment. In fact, a Scot is organising it.

Mr. Stewart

The House will be delighted to hear what my hon. Friend has said. It is essential for the Scottish economy to be competitive and to develop the industries that will compete, prosper and expand in the future. That is what our economic strategy is all about.