HC Deb 23 March 1994 vol 240 cc265-6
4. Mr. Eric Clarke

To ask the Secretary of State for Scotland when he will meet the Scottish Trades Union Congress to discuss the Scottish economy.

Mr. Lang

My ministerial colleagues and I have frequent contacts with the STUC on a range of matters concerning the Scottish economy. We look forward to a continuing exchange of views.

Mr. Clarke

Has the Secretary of State drawn up an emergency plan to alleviate the situation when the tax increases hit the Scottish economy?

Mr. Lang

I confidently anticipate that the recovery in the economy that is now strongly evident will continue, based on low inflation, competitive exchange rates and low interest rates. All forecasters are contemplating expansion this year—including the estimates from the CBI and chambers of commerce. I do not think that the situation that the hon. Gentleman anticipates will arise.

Mr. Bill Walker

Does my right hon. Friend agree that the reason why the Scottish economy today is much better than it was in the 1978–79 winter of discontent, and why the Scotch whisky industry is exporting at massive levels is that, as a result of trade union legislation passed by the Government, Scotland's unit labour costs have made us the most competitive country in the European Union?

Mr. Lang

My hon. Friend is absolutely right. He might like to know that our manufactured exports last year reached a record level and achieved a growth of 12.6 per cent. during the year.

Mr. Donohoe

The Secretary of State will no doubt have been well briefed on the report just issued by the Select Committee on Transport in connection with bilateral agreements and in particular the way in which they affect air freight. Does the Scottish Office intend to make any representations to improve the business of Prestwick airport?

Mr. Lang

The hon. Gentleman will know that the Government responds to Select Committee reports in the conventional way. I welcome the commitment of the private sector to help Prestwick airport grow. The importance that the Government attach to infrastructural projects of all kinds is evidenced by the allocation of resources under the Scottish Office spending programme.

Mr. Raymond S. Robertson

Has my right hon. Friend had time to read Monday's report, which predicts that up to 5 billion barrels of oil are still to be discovered and exploited off the west coast of Shetland? Does he agree that, with the expertise that we have in Aberdeen and throughout Scotland, that presents a tremendous opportunity for the entire Scottish economy?

Mr. Lang

My hon. Friend is absolutely right. The sympathetic tax regime and licensing system that the Government have applied to the offshore industry have stood us in good stead for many years now, and I expect that they will continue to do so as those exciting new projects are developed.

Mr. George Robertson

Does the Secretary of State accept that as the Government move from deceit to defeat, their broken tax promises will do immense damage to the Scottish economy? Does he accept that the price of their economic failure will be paid by Scottish families, who will have to pay an extra £10 a week in new taxes after April, and probably a further £8 a week as the price of butchering Scottish councils? Will the Government ever be trusted on tax again?

Mr. Lang

If the Labour party understood anything, it would realise that it is occasionally necessary to have temporary increases in taxation in order to maintain confidence in the continuing recovery of the economy—a recovery which will continue the trend of rising employment and falling unemployment in Scotland. Scotland now has the lowest unemployment of all the countries in the United Kingdom—almost two points below the European average. I have confidence that that recovery will be sustained and that in 1997 Scotland will say no to the Labour party.

Mr. Gallie

May I draw my right hon. Friend's attention to the 4.3 per cent. reduction in Scotland's jobless over the past 12 months? Is he aware that, in my constituency, in the Ayr travel-to-work area, the figure is 8 per cent? Will he say what he can do to sustain such progress, given the current difficult world situation?

Mr. Lang

I assure my hon. Friend that we shall stick to the policies that have delivered that success—policies that have increased employment in Scotland over the past decade by 183,000 jobs, with self-employment now at its highest ever recorded level.