§ 1. Mr. Home RobertsonTo ask the Secretary of State for Scotland if he will make a statement on the level of defence-related employment in Scotland.
§ The Parliamentary Under-Secretary of State for Scotland (Mr. Allan Stewart)Direct employment in Scotland associated with Ministry of Defence expenditure on equipment stood at around 14,000 in 1989–90. This was the equivalent of 9.5 per cent. of such employment in the United Kingdom, a proportion which has been constant since 1987–1988. In addition, at 1 July 1990, a total of 19,300 service personnel and 12,300 Ministry of Defence civilian employees were deployed in Scotland.
§ Mr. Home RobertsonHow does the Minister intend to protect employment and help diversification at GEC-Ferranti and Yarrow? Will he focus on the Ministry of Defence decision to do away with 2,000 infantry soldiers' jobs in Scotland? In particular, will he reflect on assurances given by the Secretaries of State for Scotland and for Transport that the amalgamations of the King's Own Scottish Borderers, the Royal Scots, the Gordon Highlanders and the Queen's Own Highlanders will be further reviewed? Now that both the Secretary of Stale for Defence and the Prime Minister have comprehensively rubbished those assurances, will the Secretary of State for Scotland have to eat humble pie again or will he stand up for Scotland and make this a resignation issue?
§ Mr. StewartMy right hon. Friends the Secretaries of State for Scotland and for Defence have spoken in complete unison on this. [Interruption.] The position is 1062 perfectly clear. There is no intention to review the proposals that have been announced, but there are at least two years before the first amalgamations and if military circumstances change, there is time for a reassessment of present plans.
On the hon. Gentleman's other point, it is worth saying that with 9 per cent. of the United Kingdom population, Scotland will retain 15.8 per cent. of the infantry, 13.6 per cent. of the armoured forces and 18.8 per cent. of the artillery. On the readjustment of industry, at my right hon. Friend's request Scottish Enterprise has established a defence industries initiative to help businesses and local enterprise companies exploit existing defence markets and develop diversification strategies. I hope that that move will be welcomed by the entire House.
§ Mr. Bill WalkerMy hon. Friend will be aware of the concern of my constituents who work at the Royal Navy workshop at Almondbank because of the present review of helicopter servicing. Will my hon. Friend assure my constituents and the House that the Conservative party and Ministers in Scotland are fighting to ensure that that workshop, which has a record of excellence and can carry out plating work which saves the Government millions of pounds on buying replacement parts, will continue because of its record and not for sentimental reasons?
§ Mr. StewartI am aware of my hon. Friend's expertise on this subject and his concern about it. My hon. Friend the Parliamentary Under-Secretary of State for Defence Procurement is present on the Front Bench and will have noted what my hon. Friend has said.
Almondbank is one of a number of helicopter facilities. A Cabinet Office efficiency scrutiny team is examining the structure of those facilities and will report early in the new year. I can assure my hon. Friend that I shall take a close interest in this matter. I shall also ensure that the merits and advantages of Almondbank, to which my hon. Friend rightly referred are taken fully into account.
§ Mr. DewarI thank the Minister for clarifying the Scottish Office position. I now understand that there will be no review of the future of the Scottish regiments unless there is a dramatic change in circumstances or a change in the strategic requirements of the country. How does he reconcile that with the rather desperate hints given by the Secretary of State in recent weeks as he vainly tried to rally his troops in the recent by-election? Is it not the case that after all the hype and hopes that were insinuated in the debate, the Scottish Office is toeing the Ministry of Defence line?
Does the Minister accept that there is an atmosphere of crisis within the defence contracting industry in Scotland? Does he accept the make-or-break significance of the next round of type 23 frigate orders for Yarrow and the central importance of GEC-Ferranti? Will we have regular reports of what the diversification unit set up by Scottish Enterprise is doing, its remit and the kind of results it is recommending?
§ Mr. StewartFirst, as I understand Labour party policy, which is a matter of some difficulty, the hon. Gentleman's party would cut defence expenditure by about £5 billion per year.
On the hon. Gentleman's first question, I am not responsible for what the press say about particular matters. I repeat our position, which has been made 1063 absolutely clear by my right hon. Friends. There is no intention to review the announcement on the Scottish regiments, but there is at least two years until the first amalgamations and the hon. Gentleman will be aware that the Scottish ones will take place at the end of the process. If military circumstances change, there is time for a reassessment of the present plans.
I fully appreciate the importance of GEC-Ferranti as an employer in Edinburgh and Lothian. Yarrow is also a major employer, not only in the constituency of the hon. Gentleman but throughout the west of Scotland. The hon. Gentleman will be aware—[HON. MEMBERS: "Get on with it."] that I have discussed the frigate orders with the shop stewards. I believe that a meeting has been arranged between the hon. Gentleman and the Secretary of State.
§ Mr. SpeakerI realise the importance of such matters in Scotland, but may I ask for crisper questions?
§ Mr. SpeakerAnd answers.