HC Deb 27 January 1988 vol 126 cc294-5
4. Mr. Fallon

To ask the Secretary of State for Scotland what information he has as to how much is spent on industrial support per capita in Scotland compared with England.

The Minister of State, Scottish Office (Mr. Ian Lang)

In 1986–87, identifiable public expenditure on the industry, energy, trade and employment programme in Scotland was £178.2 per head compared with £81.4 per head in England.

The difference partly reflects the fact that the share of the Scottish population in assisted areas is more than twice that in England.

Mr. Fallon

Does not the fact that Scottish business now needs twice as much help as English business illustrate the dangers of overdependency of the "suppie" culture on the English taxpayer? Will my hon. Friend reassure the House that we are getting better value for money for this industrial support?

Mr. Lang

My hon. Friend is absolutely right to stress the importance of value for money. Value for money is an important criterion in judging the value of regional assistance. My hon. Friend might like to know that in 1986–87 regional assistance in Scotland was £40 per head, whereas in the north of England it was £39 per head. In addition, Manpower Services Commission schemes provided £179 per head in the north compared with £143 in Scotland.

Dr. Bray

Is the Minister aware that under the current reorganisation of the Department of Trade and Industry — "DTI — the department for Enterprise" — the management of the consulting and advisory services for the engineering industry is being transferred from the National Enginering Laboratory in East Kilbride to the Production Engineering Research Association in Melton Mowbray? Is the Minister aware that that is part of the continuing pattern of draining industrial resources and activities from Scotland to the south?

Mr. Lang

The hon. Gentleman is wrong in his general conclusion. The whole purpose of regional assistance is to enable the delivery mechanism to be located in Scotland. The Scottish Development Agency will be providing a major part of that delivery mechanism.

Mr. Neil Hamilton

Is my hon. Friend aware that many people in this country think that, overall, policies of industrial support have destroyed rather than saved jobs? At the risk of being accused of being gratuitiously offensive by The Scotsman, as I was, will my hon. Friend comment on the Labour party's proposals for regional aid? Those proposals would translate the regional aid budget from my hon. Friend's Department into the Department responsible for the arts, because all that the Labour party seeks to do is to convert Scotland into a museum of industrial archaelogy.

Mr. Lang

My hon. Friend makes an interesting point. In the context of regional selective assistance, the House might like to know that a recent document produced by the TUC said that to make regional and local planning bodies effective the amount of selective assistance would be progressively increased until all assistance became selective.

Mr. Salmond

When will the Minister educate his English Back-Bench colleagues in the realities of public finance in the United Kingdom? For example, will he tell them that industrial support through the medium of defence procurement, which is concentrated in certain areas of the country, results in a £2,500 million subsidy to the English economy–10 times the entire regional aid budget for Scotland?

Mr. Lang

I am happy to welcome that part of the defence budget that goes to Scotland. More particularly, I am glad to welcome the fact that Scotland shares in the general defence of the United Kingdom.