HC Deb 29 January 1992 vol 202 cc933-4
3. Sir Teddy Taylor

To ask the Secretary of State for Scotland if he has received the permission of the European Commission to establish an enterprise zone in the Ravenscraig area of Lanarkshire; and if he will make a statement.

Mr. Lang

The Government gave formal notification, on 23 January, to the European Commission of our intention to create an enterprise zone for north Lanarkshire. We have stressed the importance of that proposal and must now await the Commission's agreement, which I hope will be forthcoming.

Sir Teddy Taylor

As the Government reacted swiftly and precisely to the tragedy of Ravenscraig and, as they want to proceed right away with their plans, which might involve 17,000 extra jobs and £50 million expenditure, is not it an insult to Scotland that Commissioner Millan, who knows all the facts, has not been prepared to give his approval and appears likely to wait for several months before doing so? As that is the same Commissioner who is damaging districts throughout Britain by withholding hundreds of millions of pounds of necessary aid for which our taxpayers have paid at least twice, will my right hon. Friend urge Commissioner Millan to cut the red tape and for once do something to help Scotland?

Mr. Lang

I understand my hon. Friend's anxiety about the apparent reluctance of Commissioner Millan to release to the United Kingdom funds that should come to us to help areas of particular deprivation where we have indentified need. As for Lanarkshire and the problems of the steel industry, only three wards in Motherwell would be eligible for RECHAR resources. Nevertheless, that would be useful. I am sure that Commissioner Brittan will consider the issue of the enterprise zone application promptly and, I hope, in a fair-minded and effective way.

Mr. McMaster

Is not the Secretary of State ashamed of the fact that the Conservatives have committed industrial genocide against Scotland since they have been in office? The closures affect not only Ravenscraig and Lanarkshire but have a domino effect in constituencies such as mine where, on the admission of the Minister with responsibility for Scottish industry—the hon. Member for Eastwood (Mr. Stewart)—76 per cent. of manufacturing jobs disappeared between 1979 and 1989 and a further 3,600 have been lost since. Does the right hon. Gentleman agree that urgent action is needed, not only to save jobs but to create them, or does he agree with the Prime Minister who, in a pathetic and complacent reply to me recently, said that he did not believe that economic initiatives were necessary?

Mr. Lang

The hon. Gentleman is giving a selective exposition of the facts. For example, he seems to be overlooking the fact that unemployment fell in Lanarkshire during the four years to November 1991 by almost 9,000. Unemployment has fallen throughout Scotland in four of the past five years. Employment has risen by substantial amounts and company registrations have increased dramatically. The Scottish economy is stronger and broader based than it has been for some time.

Mr. Bill Walker

Does my right hon. Friend agree that the option of an enterprise zone would not be available to an independent Scotland if Spain vetoed Scotland's part in Europe?

Mr. Lang

I have not speculated on such extreme developments because I do not think that anyone in the United Kingdom, least of all in Scotland, could contemplate such dire consequences for Scotland.