§ 1. Dr. ReidTo ask the Secretary of State for Scotland what further action he intends to take in connection with the announced closure of Ravenscraig.
13. Mr. RobertsonTo ask the Secretary of State for Scotland if he will itemise the assistance offered to north Lanarkshire since June 1991.
§ The Secretary of State for Scotland (Mr. Ian Lang)We have already taken action to strengthen and diversify the Lanarkshire economy. I have announced very substantial additional resources, through Scottish Enterprise, for the Lanarkshire development agency. Those resources are being deployed on a wide range of infrastructure projects, major environmental works and training and business development schemes, following the recommendations of the Lanarkshire working group. I have also announced that, subject to the agreement of the European Commission, the Government intend to set up an enterprise zone in north Lanarkshire.
§ Dr. ReidIt was obvious from that answer that the Secretary of State has nothing whatsoever to say about steel. Is he aware that next week my hon. Friend the Member for Motherwell, South (Dr. Bray) will visit the United States to look at the latest technological developments in steel production—thin slab casting? Is the Secretary of State aware that we welcome the fact—however small the step may be—that, with the approval of the Scottish Office, representatives of Scottish Enterprise will accompany my hon. Friend? Does the right hon. Gentleman realise that we need much more than that? We need a public commitment today from the Government that they will be prepared to give technical and financial assistance to any buyer that wished to develop thin slab technology at Ravenscraig. The Labour party has already given that pledge on behalf of a future Labour Government. Will the right hon. Gentleman publicly give that pledge?
§ Mr. LangAs the hon. Gentleman knows, Scottish Enterprise has already investigated thin slab casting in the United States of America. It would be naive of any Opposition Member to think that British Steel had not carefully considered the possibilities of that type of development, which requires a plentiful scrap supply and low energy costs. I am quite sure that British Steel will have considered that and will weigh it up as well as any other possible developments. British Steel must decide whether it is a sensible project on which to embark.
Mr. RobertsonI warn the Secretary of State for Scotland that, when it comes to the urgent task of providing resources for the regeneration of the Lanarkshire economy, he will not be able to hide behind the arrogant and imperious people who run British Steel. During the last couple of months that he holds that office, he will be judged harshly on what he does.
Will the right hon. Gentleman stop juggling and manipulating figures and pretending that large-scale 931 assistance has already been given to Lanarkshire? Will he exclude hospitals and existing road-building programmes from the calculations? Will he turn his mind to the serious short-term problems: first, the problem that will be caused for the existing development project by the delayed decision on an enterprise zone and, secondly, the problem that the Lanarkshire development agency and Scottish Enterprise will have because of the Government's obsession with annuality in the money that they give. If the right hon. Gentleman turned his mind to those problems, that would be a constructive contribution.
§ Mr. LangI am sorry if the hon. Gentleman does not think that there is a vast amount of economic development going on in Lanarkshire as a result of Government initiatives. It is time that he visited his constituency and had a look around. No fewer than 13 of the 16 sites identified by the Lanarkshire working group for development as locations for new industrial activity are already being developed as a result of the extra resources and the extra commitment of the Government. We are determined to help Lanarkshire to diversify to attract new jobs all the time.
§ Sir Hector MonroDoes my right hon. Friend agree that general anger was expressed in the House last week at British Steel's decision to close Ravenscraig? I welcome the many offers of support and the money available to various agencies in Scotland, as well as the fact that it is hoped to establish an enterprise zone in Lanarkshire. Will my right hon. Friend consider appointing a supremo to co-ordinate all those opportunities, to bring new jobs as quickly as possible to Scotland later this year?
§ Mr. LangAs my hon. Friend knows, the Under-Secretary of State for Scotland with responsibility for industry—my hon. Friend the Member for Eastwood (Mr. Stewart)—has co-ordinated the work of the Lanarkshire working group, which has brought together many local authorities, public bodies and private sector bodies. They produced an extremely effective report, which identified a large number of projects which could usefully be established to help Lanarkshire. Some 60 of those projects have now been implemented. Lanarkshire development agency now fulfils the co-ordinating role to which my hon. Friend referred. Of course, my hon. Friend the Under-Secretary is keeping in close contact with the agency, as is Scottish Enterprise.
§ Mr. Malcolm BruceWhat action has the Secretary of State taken to find a buyer for Ravenscraig? What assurances can be given about the future of Hunterston? Its existing responsibilities are somewhat in doubt, but it should be remembered that it will be a crucial strategic site for the steel industry of the next century. What action has been taken to ensure its survival?
§ Mr. LangAs for the possible sale of Ravenscraig, the chairman of British Steel has confirmed that the provision contained in the prospectus with regard to disposal has been triggered. I have commissioned a report on the long-term implications of the economic potential of the Hunterston site. It is an important one which we would not want to see wasted.
§ Mr. HindMy right hon. Friend will be aware that concern has been expressed throughout the country about the closure of Ravenscraig. Is he also aware that the 932 regional development aid available to Lanarkshire and the rest of Scotland is equivalent to £28.40 per head compared with £5.55 per head in England? That demonstrates the Government's commitment to redevelop and improve Scottish industry and commerce.
§ Mr. LangMy hon. Friend is absolutely right. The Government do identify need and direct resources towards it. Those needs in Scotland have been clearly identified and are fully met from the United Kingdom Exchequer. It may be that because of the Government's sustained commitment unemployment fell in the past four years by almost 9,000 in the Lanarkshire travel-to-work area.
§ Dr. BrayIs the Secretary of State aware that his reply to my hon. Friend the Member for Motherwell, North (Dr.Reid) shows that he does not understand the proposal for the new technology at Ravenscraig? It is not a proposal for an electric arc furnace, which would lead to scrap and high energy costs, but a proposal to put the new technology on at the end of the BOS—basic oxygen steel—route. Is the right hon Gentleman further aware that practical questions about the continued use of the plant, reclamation and redevelopment must be settled by September? In particular, is the right hon, Gentleman clear that a new operator would have to be indemnified well before September against reclamation costs, which fall to be settled between the Government and British Steel?
§ Mr. LangOn the question of possible contamination at the British Steel site, I have already asked Sir Robert Scholey to contribute in terms of resources and making the site available for visits so that the extent of contamination can he properly examined. The legislative position is much the same as it has been in past decades. No local authority planning requirements were imposed at the time of the planning consent. We wish to ensure that the site is restored to such a level, as has happened at all other British Steel sites, that it can be used for further industry.