HC Deb 01 March 1989 vol 148 cc267-8
7. Mr. Roger King

To ask the Secretary of State for Scotland when he last met the Confederation of British Industry in Scotland; and what matters were discussed.

Mr. Rifkind

I am in frequent touch with the Confederation of British Industry in Scotland on a range of matters affecting the Scottish economy. I look forward to a continuing exchange of views.

Mr. King

I am grateful for that reply. Will my right hon. and learned Friend confirm that the state of the Scottish economy is such that, in the past two years, there has been a 84,000 reduction in unemployment and that, in the past 10 years, the rate of productivity in the Scottish economy has been the highest of seven major OECD countries? Does my right hon. and learned Friend agree that, although it is pleasant for the Scottish people to bask in some kind of Socialist ideals, it is great to have the strength of Tory economics behind them?

Mr. Rifkind

That is so. It is interesting that the CBI's latest survey shows that business optimism in Scotland remains firm although it has diminished elsewhere in the United Kingdom. That is a mark of the growing strength of the Scottish economy.

Mr. Harry Ewing

The CBI may talk about business optimism, but will the Secretary of State discuss with it its attitude and his attitude to Shell's proposal to construct a pipeline from Grangemouth to the midlands of England to export the ethylene manufactured at Mossmorran? If Scottish jobs go down that pipeline are we not entitled to expect that the first Scottish job to go should be the Secretary of State's?

Mr. Rifkind

I am grateful to the hon. Gentleman for that helpful observation. As I understand it, there is a pipeline from Grangemouth to England already and the proposal is for a second pipeline. That proposal will involve a planning application and therefore it will be for the planning authorities to consider the merits of it.

Mr. Graham

When will the Secretary of State discuss with the CBI how many jobs it thinks will be lost as a result of the declared redundancies at the Bishopton Royal Ordnance factory? When will the Secretary of State offer a genuine lifeline to those folk who are desperate to work and who have sent letters to him asking for work? Will he ask the CBI to find out how many jobs will be lost as a spin-off from those redundancies?

Mr. Rifkind

We all share the hon. Gentleman's concern about the loss of jobs in Bishopton. The Scottish Office stands ready to make available the normal support in an area of high unemployment to assist those who wish to create new employment or to seek alternative employment in that locality.

Mr. Andy Stewart

Has my right hon. and learned Friend discussed with the Scottish CBI what would happen were there ever to be another Labour Government who implemented their alternative to rates—that is, a property tax and a local income tax—and how damaging that would be to Scottish industry?

Mr. Rifkind

Only the Labour party would propose to replace domestic rates, which is one unpopular tax, with two unpopular taxes.

Mr. McLeish

Does the Secretary of State agree with Mr. Bill Hughes, chairman of the CBI in Scotland and one of the Government's industrial advisers, who said at a recent meeting of Conservative students in Edinburgh that the Scottish Development Agency had failed to do anything about Scottish business?

Mr. Rifkind

During the past few years I believe that the SDA has made an important contribution to the Scottish economy and I believe that it has a continuing role to play in line with the Government's proposals in the recent White Paper.