§ 10. Mr. Kennedyasked the Secretary of State for Scotland what assessment he has made of the prospects for the remainder of the current financial year for the construction industry in Scotland; what contribution he expects the oil-related sector to make in this context; and if he will make a statement.
§ The Parliamentary Under-Secretary of State for Scotland (Mr. John MacKay)Current assessments suggest that the construction industry's output this financial year will be similar to that in 1985 and thus maintain the substantial improvement made over the past four years or so.
§ Mr. KennedyDoes the Minister recognise that the oil-related sector of the construction industry is essential to the highlands of Scotland and that recently the Kishorn yard has gone into receivership? Is he aware that, using the Government's unemployment statistics, the development department for the Highlands region has calculated that when the receiver has seen over the finishing of the current contract in the Skye and Wester Ross travel-to-work area unemployment within the next two months will rise from 17 to 23 per cent.? Does the Minister recognise the devastating impact that that will have on the communities there, in addition to the deepening gloom in Easter Ross? What do the Government propose to do?
§ Mr. MacKayFabrication yards are regarded as being part of manufacturing industry, not of the construction 1158 industry. We share the hon. Gentleman's concern about the news from the Kishorn yard. We are watching the situation closely to see what develops. We hope that the receiver can achieve a satisfactory outcome.
§ Mr. DouglasDoes the Minister accept that in answer to a question tabled some time ago the Secretary of State requested the oil companies in the oil-related sector to take a long-term view? Are the present redundancies being announced in Aberdeen and elsewhere a result of the Secretary of State's overtures to the oil companies, or can we expect a continuing diminution of oil-related employment in Scotland, particularly in the light of the diminution of seafaring employment referred to in the excellent document submitted by the National Union of Seamen? Perhaps the Minister can give us his view when he has had time to consider.
§ Mr. MacKayThe hon. Member, who knows a great deal about these matters, knows that the oil industry's perception of oil prices in the 1990s and beyond will determine investment decisions and, hence, employment in those industries. Forecasting has always been a difficult business and in relation to the price of oil it must be the most difficult business of all. A wide range of estimates have been quoted. Future oil industry investment decisions will depend upon the perception of what is likely to happen.
§ Mr. HendersonIs it not the case that the present output of the construction industry is at record levels and that there has been a dramatic increase in expenditure for the construction of roads and on the Health Service?
§ Mr. MacKayMy hon. Friend is right. Since 1981 total construction output has grown by about 74½ per cent., with substantially faster growth in sectors such as private housebuilding, private commercial work and repair and maintenance work. My hon. Friend knows of my past involvement in the Health Service. I can confirm that a vigorous building programme is going on in the Health Service, and that will continue in future.
§ Mr. KennedyOn a point of order, Mr. Speaker. In view of the utterly unsatisfactory nature of the Minister's response, I shall seek to raise this matter on the Adjournment.