HC Deb 29 June 1988 vol 136 cc354-5
9. Mr. McLeish

To ask the Secretary of State for Scotland if he will make a statement on the implementation of regional industrial policy since the abolition of regional development grants on 31 March.

Mr. Lang

My right hon. and learned Friend considers that regional policy will be more cost-effective following changes which included the ending of the regional development grant scheme. Planned spending on regional assistance is being maintained but, through selective schemes, support will be directed to where it is needed.

Mr. McLeish

Is the Minister of State aware that, because of the rush to beat the 31 March deadline for RDG, there is now a considerable backlog of applications and that that could take between one and two years to work through? Is he further aware that, as a consequence of that, business men in Scotland are not getting grants through as quickly as they should, with the result that there is now some doubt about the total budget available for regional selective assistance and regional development grants? Will the Minister look into those matters and report back to the House about the gravity of that situation, which has been caused by the incompetent decision to phase out regional development grants far too quickly?

Mr. Lang

I believe that that decision was correct. It is certainly the case that the number of RDG applications increased before the deadline, as one would expect. The hon. Gentleman underrates the capacity of my Department to handle those applications. My officials are giving them as much close and effective attention as they can. The hon. Gentleman will be aware from the public expenditure White Paper that net provision for industrial support over the three years covered in the White Paper remains largely unchanged.

Mr. Wallace

Will the Minister take this opportunity to clarify the position of the Highlands and Islands with regard to the European regional development fund? Several weeks ago the Foreign Secretary said that a deal had been clinched, although I suspect that that has subsequently been clouded by word from Europe and that that is not the case. Will he clarify the position?

Mr. Lang

As the hon. Gentleman knows, negotiations are continuing. I am under the clear impression that agreement has been reached that the Highlands and Islands will be covered under objective 5 of the European regional development fund, which relates to rural areas.

Mr. Fallon

Is not the biggest single threat to overseas investment in Scotland the regional policy of Mr. Ron Todd, who puts the lads at Dagenham before jobs in Dundee? Would not the Labour party be a little more credible if there was any evidence that it made these points to Mr. Todd?

Mr. Lang

My hon. Friend is absolutely right. The contrast in the successful generation of employment during the period of this Government with that of the previous Government is a dramatic illustration of the Labour party's inability to control its trade union friends.

Mr. Canavan

In view of all the hard work by Central regional council in preparing an updated submission in support of enhanced development status for the Falkirk travel-to-work area, where more than 8,000 people remain out of work, why did the Minister refuse a reasonable recent request for a meeting with council representatives to discuss this important matter? Is it not treating my constituents with absolute contempt for this Minister to refuse even to meet local councillors, who received a better mandate to represent their people than did the Minister, whose Government were rejected by more than three quarters of the people of Scotland?

Mr. Lang

I often meet representatives from many different local authorities. I am sure that if an appropriate issue can be resolved only at a meeting, that, too, can be arranged. The hon. Gentleman will welcome, as I do, the fact that unemployment in Falkirk has fallen by 1,900 in the past year.