HC Deb 23 February 1994 vol 238 cc271-2
11. Sir Russell Johnston

To ask the Secretary of State for Scotland if he will make a statement on the allocation of funds for Highland region.

Mr. Lang

Subject to the House approving the Local Government Finance (Scotland) Order 1994, Highland regional council will receive aggregate external finance totalling just under £212 million next year.

Sir Russell Johnston

The Secretary of State will have heard his colleague—the grey-haired and worried Minister beside him—refer to the fact that there will be a great increase in the volume of road traffic. What, then, is the logic of cutting by £5.7 million Highland's grant aid for road maintenance? At a time when the Highland region has been defined by the European Community as a deprived area worthy of regional structural funds, what is the sense in cutting grants generally?

Mr. Lang

In other circumstances, I might have described the hon. Gentleman's question as hair-raising.

The allocation of resources for roads is, of course, a matter for the regional council. The capping principles that I have enunciated for next year will enable it, like most other regional councils, to increase spending by up to 1.75 per cent. The hon. Gentleman should not forget the substantial resources amounting to £240 million over a period of time which will be available to the highlands and islands under objective 1. Some of that could be used for roads.

Mr. Macdonald

Does the Secretary of State accept that the structural and economic disadvantages of the west highlands and the outer islands are among the most deep-seated and intractable in the whole United Kingdom and that that played a large part in the award of objective 1 funding for the highlands and islands? Does he agree that that is a powerful argument for siting the committee to administer the funds in the west highlands rather than the east highlands, because that is where the problems are greatest? Will he make a decision soon about the location of that committee?

Mr. Lang

Those are not entirely matters for me, but the hon. Gentleman's case will have been noted.