HC Deb 18 October 1989 vol 158 cc136-8
14. Mr. Favell

To ask the Secretary of State for Scotland when he last had discussions with the Scottish Confederation of British Industry; and what matters were discussed.

Mr. Lang

My right hon. and learned Friend is in frequent touch with the Confederation of British Industry in Scotland on matters affecting the Scottish economy and industry. He looks forward to a continuing exchange of views.

Mr. Favell

With Scottish employment up, Scottish manufacturing output up and Scottish exports up, is it not clear to the Scottish CBI that free enterprise suits Scotland very well, just as it suits the rest of the United Kingdom very well? Is it not a fact that the Socialists on the Opposition Benches have been prophesying imminent disaster for Scotland for years, yet the opposite is the case? Would not the biggest disaster for Scotland be a Socialist assembly in Scotland?

Mr. Lang

My hon. Friend is absolutely right and has made the point extremely well. He was correct to put his finger on the point that a Socialist Government would be the most damaging thing from which the Scottish economy could suffer, bringing, as it would inevitably, high taxation.

Mr. Ernie Ross

What discussions has the Minister had with representatives of the Scottish CBI about the formation of enterprise companies to ensure that local authority representation is included in any companies that are established? Will he assure the House that representatives from district and regional local authorities will be included in the enterprise companies?

Mr. Lang

Many member of the CBI are taking a very active part in the formation of local enterprise companies. I cannot give the hon. Gentleman the assurance that he seeks about the representation of local authorities on local enterprise company boards because individuals will be appointed on their merits. However, the opportunity exists for local authorities to become closely involved—as many wish—with local enterprise companies through mem-bership of the companies.

Mr. Andrew Welsh

Will the Minister discuss with the CBI how the real economic needs of the Scottish people can be met? What can the Minister say to one of my constituents who faces hard times because of the crisis in the fishing industry? The Government have not addressed that problem. My constituent is running a small business which is being hammered by a high interest rate policy designed to suit not Scotland, but the narrow selfish interests of the south-east of England. Is that not yet another example of a Scottish Minister who can do nothing being overruled by a British Minister who will do nothing for Scotland?

Mr. Lang

The hon. Gentleman seems to be remarkably unaware of the present circumstances of the economy in Scotland. Of course, there are issues of great concern to the fishing industry, which has experienced several very good years. My noble Friend the Minister responsible for fishing matters at the Scottish Office is giving those issues his very close and urgent attention.

Mr. Bill Walker

Does my hon. Friend agree that business decisions—as the CBI is well aware—are made on the basis of confidence in the future and that the flawed and probably fraudulent proposals for various forms of devolution, and the separatism on order from the nationalists, remind us of what happened in Quebec when capital flowed from that area at an alarming rate? We do not want that to happen in Scotland.

Mr. Lang

My hon. Friend is absolutely right. Confidence is critical to the success of an economy. The business community's confidence in this Conservative Government is reflected in the strong investment enjoyed by the Scottish economy in recent years.

Mr. Wallace

Has the Minister of State discussed with the Scottish CBI recently the proposals for electricity privatisation and in particular the implications for Scotland of announcements made by the Secretary of State for Energy during the recess which would appear to limit the scope of the Scottish boards to export surplus capacity to England? Will the additional costs arising as a result of that be borne by Scottish consumers, including industrial consumers, or by potential shareholders?

Mr. Lang

I am glad that the hon. Gentleman recognises the potential advantage to the privatised industry of increased competition through the sale of electricity down the interconnector to the markets in England. That matter is being examined closely by interested parties north and south of the border, and it would provide a considerable advantage to the Scottish consumer as well as to the electricity companies.

Mr. Harris

Will my hon. Friend confirm that employment in Scotland is at its highest level since 1980? Has my hon. Friend discussed with the CBI the possible effects of a tax-raising assembly on the Scottish economy and the employment prospects for Scotland?

Mr. Lang

I am happy to confirm that the civilian work force in employment in Scotland is at its highest level since 1980 and that, in recent months, almost all the indicators in the Scottish economy have been very encouraging. One thing that would certainly destroy confidence and, therefore, the success of the economy would be the increased tax burden that would flow from a Labour Government with all their high-spending policies and constitutional paraphernalia.

Mr. McLeish

Will the Minister explain to the chairman of the CBI in the next few weeks the thinking behind the recent very public attack on the integrity and competence of the chief executive of the Scottish Development Agency, Mr. Ian Robertson, in a Scottish newspaper? Does the Minister accept that such an assault will further damage the credibility of the SDA, which is already shaken by Government policy, and in which there is a real morale crisis because of the present membership of the Government Front Bench? More importantly, will the Minister tell the House that Mr. Ian Robertson's job is secure and that the Government have every confidence in his ability to carry out the future work of the SDA? Can we expect the exchange of correspondence between Sir David Nickson and the Minister to be made public at an early date so that we may see what is happening in what is fast becoming a very shabby affair in Scotland?

Mr. Lang

As the hon. Gentleman's question is founded on a myth, it hardly calls for an answer. The Scottish Development Agency is enthusiastically embracing the Government's plans for the development of Scottish Enterprise. It is the most exciting initiative to have been brought into the Scottish economic scene in many a year, and it will build on the success that we have already achieved in Scotland.