Rural Economy, Fife (Hansard, 6 February 1991)

§ 4. Mr. Menzies Campbell
To ask the Secretary of State for Scotland if he has any proposals to sustain the rural economy in north-east Fife; and if he will make a statement.

§ The Parliamentary Under-Secretary of State for Scotland (Mr. Allan Stewart)
On the most recent available figures, between 1984 and 1987 total employment in the north-east Fife travel-to-work area increased by 2.2 per cent.; since 1987 unemployment has been declining sharply in north-east Fife; between 1981 and 1989 the population has grown by some 4.1 per cent.
The Government aim to build on those highly encouraging indicators of economic progress. Fife Enterprise, the local enterprise company for the Fife region, will be able to deliver the Government's economic development, training and environmental improvement programmes in a way which is best suited to the particular needs of the area.

§ Mr. Campbell
Does the Minister understand the contribution that the fishing industry makes to constituencies such as mine? Does he appreciate the resentment felt there and throughout fishing communities in Scotland at the folly of the eight-day tie-up rule? Was not that rule imposed on Scottish fishermen, at least in part, because of the culpable failure of the Government to produce an effective decommissioning scheme?

§ Mr. Stewart
I must point out to the hon. Gentleman that in negotiations the Government reduced the period from 10 to eight days. I must also point out the key need to conserve stocks in the North sea. I can reassure him on the general implications for the area. The business plan of Fife Enterprise emphasises the changing place of agriculture and fishing in the rural economy and gives a priority to the development of tourism and leisure. I hope that the hon. Gentleman will be reassured about the strength of the economy of north-east Fife by the figures that I gave him in my answer.

§ Mr. Andy Stewart
Does my hon. Friend agree that the Government's policy of providing a strong and diverse base for the Scottish economy helps all regions?

§ Mr. Allan Stewart
My hon. Friend is, of course, absolutely right. It is significant that Scotland is the only part of Britain where unemployment is lower than a year ago and that most commentators suggest that Scotland will have had one of the highest, if not the highest, rate of growth in 1990. NatWest has forecast that Scotland will have continuing growth in 1991.

§ Mr. McLeish
Is the Minister aware of the importance of Rosyth naval base to the whole of Fife, including north-east Fife? Is he also aware that the Prime Minister has said that he wants to examine closely the implications of closure of that base on Fife's economy? Will he give an assurance this afternoon that the Scottish Office will be fully involved in any such discussions and that the Secretary of State and all his ministerial team will take cognisance of what is happening? Will the Minister come back later and give an assessment of the implications for the Fife economy and the Scottish economy because there will be a dire effect on the local area as well as north-east Fife?

§ Mr. Stewart
I appreciate the importance of the hon. Gentleman's point for the whole of Fife. I can confirm that no decision has been made to close Rosyth or, for that matter, any other naval base. The Government fully recognise the implications that any such closure would have for the economy. Those implications would be fully considered and examined by my right hon. Friend the Secretary of State, along with colleagues before any such decision was taken—[Interruption.]

§ Mr. Dewar
I am grateful to you, Mr. Speaker, for calling me. My interest in the rural economy of north-east Fife is well known.
To follow up the important point that the Munster made, he will be aware that there are strong signs that a Ministry of Defence working party has been established, apparently with the specific remit of closing the Rosyth naval base within the shortest possible time scale. Does that exist and is that its remit? What is the Scottish Office doing to ensure that any review of naval bases examines every option on its merits and does not prejudge the issue by putting Rosyth on a hit list of one?

§ Mr. Stewart
I share the hon. Gentleman's obvious regret that the hon. Member for Edinburgh, Leith (Mr. Brown) has arrived just after his question was reached. May I assure the hon. Member for Glasgow, Garscadden (Mr. Dewar) that, while I clearly cannot comment on alleged leaked documents, my right hon. Friend the Secretary of State will he fully involved in any such discussions about Rosyth.