HC Deb 06 July 1994 vol 246 cc309-11
9. Ms Rachel Squire

To ask the Secretary of State for Scotland if he will make a statement on the Konver initiative; and what funding he proposes to make available to local authorities to progress economic development.

Mr. Stewart

Scotland received more than £1.7 million from the first Konver initiative, which ran as a one-year programme in 1993. The European Commission is in the process of issuing guidelines for the next round of Community initiatives, including a second Konver programme.

Ms Squire

Does the Minister agree that the Government should introduce a national strategy for defence diversification if any progress is to be made in economic development in areas that depend heavily on defence-related activities, such as Fife, which has the highest unemployment rate in Scotland and where we have lost 4,000 jobs at Rosyth in the past three years? Does he further agree that no EC initiative could replace the 8,000 jobs that depend on Rosyth's future? Will he say clearly today that he supports Rosyth and will he link his future to that of the naval base and to those 8,000 jobs?

Mr. Stewart

On the second question, the hon. Lady knows that no decision has been made on the future of the naval base, as well as the other establishments being reviewed under "Front Line First". She will know that my right hon. and learned Friend the Secretary of State for Defence is to make a statement before the House rises for the summer recess.

As for the hon. Lady's main question on a defence initiative, we do have a Scottish defence initiative which has been implemented in particular by two local enterprise companies—Fife Enterprise and the Glasgow Development Agency. They have developed several programmes to reduce the impact of defence reductions, aimed mainly at diversification and support for redundant workers. For example, under the new product development programme they have assisted more than 850 people from more than 50 companies. I assure the hon. Lady—indeed, she may know this from her own contacts—that Fife Enterprise has close relationships with important key companies in the sector and is developing a range of specific initiatives.

Mr. Fabricant

My hon. Friend is to be congratulated on the Locate in Scotland programme, which has attracted firms such as Hoover, Motorola and Mitsubishi. But does he agree that the distance between Scotland and the centre of gravity of Europe puts it at a great disadvantage? Is it not therefore even more amazing that freight transport from Scotland to the rest of Europe is being disrupted today by the rail strike—[interruption.]—and is it not even more surprising that the Opposition Front Bench—

Madam Speaker

Order. The hon. Gentleman must relate what he says more to the original question. Will the Minister answer the first part of the hon. Gentleman's question?

Mr. Stewart

rose

Mr. McLeish

Does he remember it?

Mr. Stewart

Yes, I remember it. My hon. Friend is right to stress the importance of transport links between Scotland and Europe. That is why the Eurofreight terminal in Mossend is important, as is the open skies policy pursued by the Government. My hon. Friend is also right to say that Scotland is an extremely attractive location for multinational companies, which make their decisions wholly objectively. The recent figures from Locate in Scotland amply prove that.

Dr. Reid

In keeping with the spirit of the times, would any of the candidates at the hustings for the post of Secretary of State for Scotland like to dissociate himself from the treacherous betrayal of Rosyth by the two previous Secretaries of State? The present Secretary of State—the incumbent for the time being—has failed to lift a finger for Rosyth, and the previous Secretary of State, now Secretary of State for Defence, has physically presided over the impending closure of Rosyth? Why should anyone in Rosyth or in the rest of Scotland who is interested in jobs or in the defence of Scotland and the rest of Britain ever trust whoever succeeds the present incumbent?

Mr. Stewart

Such personal attacks are unbecoming to the hon. Gentleman and are wholly without foundation. I suggest that he awaits the statement by the Secretary of State for Defence.

Mr. George Robertson

Is it just possible that the Secretary of State might manage to take time out from the royal pageant in Edinburgh to consider the future of Her Majesty's naval base at Rosyth, or has he completely given up the fight to save it? May I tell the Minister, who seems to be standing in for the absent Secretary of State today, that if the Government do not listen to the defence case and the human case for—[HON. MEMBERS: "He is taking some advice."] Obviously the parliamentary private secretary is giving the Minister advice. Let us hope that it is the right advice—although if I were the Minister I would rather accept advice from somebody else. If the Government do not listen to the defence case and the human case for the Rosyth naval base, and act on it, they will be roundly condemned all over the country. If they do not fight for the base, they will betray the defence of Britain and the thousands of people whose livelihoods depend on Rosyth. If they do not care about Rosyth and the people connected with it, they will be swept away—and swept away for a generation.

Mr. Stewart

Of course, the Secretary of State for Scotland is in touch with the Secretary of State for Defence on matters affecting Scotland. Naturally, there is constant communication on such matters. I must tell Opposition Members that I find it astonishing that a party that historically has favoured cutting defence expenditure year after year, with manifesto commitment after manifesto commitment, now wants very high expenditure on defence. But of course the matter is of concern. That is why, for example, I understand that yesterday my right hon. and learned Friend the Secretary of State for Defence met a delegation from Fife accompanied by my hon. Friends the Members for Ayr (Mr. Gallie) and for Tayside, North (Mr. Walker)

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