Scottish Council (Development and Industry) (Hansard, 31 October 1984)

§ 3. Mr. Kirkwood
asked the Secretary of State for Scotland when he next plans to meet the Scottish Council (Development and Industry) to discuss the Scottish economy.

§ Mr. Allan Stewart
My right hon. Friend has no specific plans to meet the Scottish Council (Development and Industry) in the near future, although my right hon. Friend and I meet the council from time to time to discuss a wide range of subjects.

§ Mr. Kirkwood
Following the question asked by the hon. Member for Dundee, East (Mr. Wilson), will the Minister assure us that he will pay close attention to the Scottish Council's view of the current industrial review in relation to the rates applicable to the tiered structure and—most important of all — the automatic grant versus selectivity? Will the Minister also assure us that if he is subject to menacing threats from the Treasury he will consider the possibility of keeping the area cover wide, but going for selective rather than automatic grants?

§ Mr. Stewart
My hon. Friend the Minister of State, Department of Trade and Industry and I met the 1282 representatives of the Scottish Council on 26 June to discuss their response to the White Paper. The representatives made some of the points to which the hon. Gentleman has referred. We assured them that the points made in their written and oral submissions would be taken into account in deciding the outstanding issues of the review.

§ Mr. Henderson
Has my hon. Friend observed that many sunrise industries prefer to develop in rural towns than in traditional industrialised areas? Will he ensure that such developments will not be prevented by regional policy?

§ Mr. Stewart
I note my hon. Friend's point. Rural areas have proved attractive to some companies in the industries to which he referred.

§ Mr. Ewing
What response has the Minister given to the Scottish Council (Development and Industry) about its view that assistance should not be based entirely on the number of jobs that would be created by investment? If the Government's approach, were the reverse, capital intensive industries such as the petro-chemical industry in my constituency, which needs to create new investment, reinvest and modernise plant, would be seriously at risk.

§ Mr. Stewart
As I said to the hon. Member for Roxburgh and Berwickshire (Mr. Kirkwood), my hon. Friend the Minister of State and I assured the Scottish Council that its views on that matter and others would be taken into account. As the hon. Gentleman knows, the object of the review is to make regional policy more cost-effective in terms of jobs.

§ Mr. O'Neill
In regard to replacement investment, is the Minister aware that the Minister of State, Department of Trade and Industry said that exclusion of replacement investment would save £70 million and that exclusion of non-job-creating modernisation would save £100 million? Of that £170 million, about £50 million could legitimately be expected to come to Scotland. Did he say how much of that money will still come to Scotland after the review? Did he give the Scottish Council any assurances? If not, is it any wonder that the Scottish Council despairs of the Government's attitude to regional policy?

§ Mr. Stewart
My hon. Friend and I assured the Scottish Council that its views would be considered fully. The exclusion of replacement investment is a requirement of membership of the Common Market and brings our system into line with every other European country.