Inward Investment (Hansard, 31 October 1984)

§ 1. Mr. Hirst
asked the Secretary of State for Scotland what is the aggregate value of the inward investment attracted to Scotland up to the latest practicable date by Locate in Scotland; and if he will make a statement.

§ The Parliamentary Under-Secretary of State for Scotland (Mr. Allan Stewart)
As my right hon. Friend the Prime Minister announced on her visit to Scotland last month, the aggregate value of planned investment by overseas companies which we have helped to secure since we set up Locate in Scotland in 1981, now exceeds £1,000 million. This investment is expected to create or safeguard directly some 25,000 jobs and to provide many more opportunities in other enterprises throughout the United Kingdom.

§ Mr. Hirst
I thank my hon. Friend for that reply. Is it not a most impressive record on the part of Locate in Scotland in attracting inward investment? Will he pass on to the officials of LIS the congratulations of the House on their continued success and our hopes that they will do still better? How many of these companies have set up marketing and research and development functions in Scotland? Are not these functions fairly critical in guaranteeing a long-term future for the companies that LIS has attracted to Scotland?

§ Mr. Stewart
I am grateful for my hon. Friend's sentiments on LIS, which I am sure will be widely shared. Locate in Scotland is in the present year on target for investment. Since April some £500 million has gone into Scotland, which will involve new or safeguarded jobs for about 6,000. My hon. Friend makes an important point on research and development and marketing, which are critical functions. One of our great advantages in attracting such activities is the strength of our higher education system.

§ Mr. Bruce
I echo my appreciation of the success of Locate in Scotland, but will the Minister acknowledge that, with the present review of assisted area status in Scotland about to be published, some non-assisted areas could lose out, especially under section 8 of the Industry Act, which could affect the future performance of LIS? Will the Scottish Office recognise the need to press for more approvals of section 8 applications in non-assisted areas?

§ Mr. Stewart
I am happy to assure the hon. Gentleman that the White Paper explicitly recognises the importance of regional centres in enabling Scotland, and the United Kingdom as a whole, to complete effectively for internationally mobile projects.

§ Lord James Douglas-Hamilton
Will my hon. Friend confirm that the success of the Locate in Scotland unit is likely steadily to continue, and that there has been a lot of American investment recently, as was shown by W.L. Gore Associates?

§ Mr. Stewart
I met Mr. Gore during my recent trip to America. I am convinced that the climate is now excellent for further inward investment in Scotland. We have established our reputation as silicon glen. Overseas businessmen have high confidence in the policies of the Government, and were particularly impressed by the decision of my right hon. Friend the Chancellor to reduce corporation tax.

§ Mr. Dewar
Has the review by the Department of Trade and Industry into the future of LIS been completed? If so, will the Minister give us a full statement about the results and about LIS's continuing success? Is he aware that any reduction in the scope and independence of LIS will be unacceptable to the Opposition, however skillfully it may be disguised as integration and co-operation with the Department of Trade and Industry and the Invest in Britain bureau? It is particularly important to get this fact established because of the continuing rumours that at least one of the North American operations of Locate in Scotland is threatened with closure.

§ Mr. Allan Stewart
I note with interest that the hon. Member for Glasgow, Garscadden (Mr. Dewar) has refrained from commenting favourably on the inward investment successes to which my hon. Friends have referred. The Government have been considering the future of inward investment promotion for the whole United Kingdom, as was announced a couple of years ago. I can assure the hon. Gentleman that our only concern is to increase the effectiveness of our efforts.