HC Deb 08 December 1993 vol 234 cc305-7
8. Mr. Riddick

To ask the Secretary of State for Scotland what steps he is taking to encourage further inward investment.

Mr. Stewart

My Department, through the work of Locate in Scotland, is continually promoting Scotland as a location for inward investment. My right hon. Friend and I have recently undertaken inward investment missions to the far east and the United States, respectively, where discussions were held with existing and potential investors.

Mr. Riddick

Will my hon. Friend confirm that inward investment has created many thousands of jobs in Scotland and will contribute to the continued regeneration of the Scottish economy? Does he agree that one of the main reasons why overseas investors come to Scotland and, indeed, to Britain as a whole is because the British Government have refused to sign up to Labour's two job destroyers—the social chapter and the minimum wage?

Mr. Stewart

My hon. Friend is absolutely right on both points. Even President Jacques Delors has admitted that there is no question but that the sensible Government decision not to sign up to the social chapter makes the United Kingdom an attractive place for inward investment from Japan and the United States as company after company confirmed to me on my recent visit.

In relation to my hon. Friend's second point, I can confirm that, since its formation in 1981, Locate in Scotland has recorded planned inward investment of £5 billion, which is associated with the expected creation or safeguarding of more than 96,000 jobs in Scotland. That is a considerable record, which I hope that the whole House will welcome.

Dr. Bray

Has the Minister read the recent report by the electronics industry in Scotland, which points out its vulnerability to the fact that it consists largely of screwdriver assembly plants, with little research and development, little marketing and little worldwide product responsibility? Has he further read the report by Scottish Enterprise and its chief executive, documenting the lack of entrepreneurship in Scottish industry? Has the Minister any comment on that after 14 years of Tory government?

Mr. Stewart

I am aware of the hon. Gentleman's interest and expertise in those subjects, and I have read the reports to which he refers. About 47 per cent. of all overseas-owned manufacturing companies in Scotland undertake some form of research and development. The Scottish electronics forum, which was addressed by my right hon. Friend earlier this week, is addressing those challenges. Of course there are challenges—let us not be in any doubt about that—but we must not, and I do not suggest that the hon. Member did, underestimate the huge successes that Scotland has had and is continuing to have in the electronics industry.

Mr. Gallie

Does my hon. Friend welcome, as I do, the Budget statement announcing the investment of about £200 million in the new air traffic control centre at Atlantic house in Prestwick in my constituency? Does he accept that my constituents express relief and enthusiasm that the service that they provide to the airline industry will continue, and does he agree that that gives an almighty boost to the economy of south Ayrshire and the surrounding area?

Mr. Stewart

My hon. Friend is right to welcome that important announcement by my right hon. and learned Friend the Chancellor in his Budget statement. In addition, as my hon. Friend knows extremely well, because he was very much involved, the decision by Digital to centre its European operations in my hon. Friend's constituency—[Interruption]—well, close to the border of the constituency of the hon. Member for Carrick, Cumnock and Doon Valley (Mr. Foulkes)—is a good example of Locate in Scotland's immense success not only in attracting but in retaining key overseas investment of the highest quality in Scotland.

Mr. Beggs

Does the Minister agree that, in addition to his efforts to attract investment to Scotland, the Government must support existing industry in promoting and exporting services and goods overseas? Will he confirm the work of Scottish Enterprise and congratulate it on identifying excellent potential hydro-electricty sites in Vietnam? Is he aware that approval for those projects can create employment in Scotland and Northern Ireland? Will he urge the Overseas Development Administration to approve those projects so that work can proceed?

Mr. Stewart

I know of the hon. Gentleman's close personal interest in this matter, and I regard those projects as having considerable potential for Northern Ireland and Scotland. I had the opportunity to discuss the projects briefly with the Prime Minister of Vietnam when he visited Scotland, and I can assure the hon. Member that Scottish Enterprise is doing everything possible to put forward a positive case for the developments to which the hon. Gentleman refers.