HC Deb 25 May 1994 vol 244 cc327-8
10. Dr. Bray

To ask the Secretary of State for Scotland what provisions he has made in Government expenditure plans for the redevelopment of the Ravenscraig site in excess of those costs that will fall to British Steel and the European Union.

Mr. Stewart

My right hon. Friend the Secretary of State has made very substantial resources available to Scottish Enterprise for economic and environmental development and has taken the needs of Lanarkshire and, in particular, the redevelopment of the Ravenscraig site, into account in so doing.

Dr. Bray

Is the Minister aware that there is a gap between the reclamation of the Ravenscraig site, which British Steel will carry out, and a site with infrastructure on to which developers can move and that that gap must be filled by European Union and United Kingdom Government funding? Unfortunately, European funds cannot be committed until the site is in public ownership and British Steel cannot sell until the deal is completed. Will the Secretary of State write such into his plans provision for public expenditure in 1995–96 specifically to trigger the physical work on the redevelopment of the Ravenscraig site?

Mr. Stewart

The House will appreciate the hon. Gentleman's knowledge and expertise on this matter. British Steel will of course meet its obligations, especially those relating to surface contamination. As the hon. Gentleman will know, a consultancy study will be completed in the near future and will go to the Lanarkshire development agency, British Steel and the local authorities. I accept that there may then need to be a sensible additional use of public resources and I shall be happy at an appropriate time to meet the hon. Gentleman to discuss the details.

Dr. Reid

With respect, I think that the Minister has missed the point—that there will be a period when bridging finance will be necessary to trigger the redevelopment of the Ravenscraig site and that that money cannot come from the European Union because the site will not at that stage be in public ownership as it will not be sold by its private owners until the development has started. The vicious circle can be broken only if the Government are prepared to provide finance as a mechanism to trigger the development. Will the Minister consider that point and raise it with his colleagues with a view to writing it into the 1994–95 economic plans?

Mr. Stewart

I cannot at this stage give specific commitments in relation to future public expenditure, but the hon. Gentleman will know that the Government have fully supported the Lanarkshire development strategy. I believe that the strategy will provide options over a fairly long time scale. The hon. Gentleman will also know that substantial resources have been made available to Lanarkshire through Scottish Enterprise. I believe that those resources are paying off in terms of regeneration and I assure the hon. Gentleman, as I assured the hon. Member for Motherwell, South (Dr. Bray), that I shall keep closely in touch on the detailed matters that he has raised.

Mr. Salmond

As Ravenscraig was probably sacrificed by British Steel as its entry price into a European cartel on other steel products, would it not be outrageous if British Steel escaped any of its obligations or if the site remained undeveloped because of a lack of political will and initiative from the Government? In view of the behaviour of British Steel and British Gas towards their customers and work forces in Scotland, what does the Minister think is the common factor—the fact that both were privatised or the fact that both were British?

Mr. Stewart

The hon. Gentleman may have missed my earlier reassurance. I reassured the House that British Steel would meet its obligations, especially those in relation to surface contamination. However, there are positive proposals for the regeneration of the area, such as that from St. Andrews university for a university college. That is a positive proposal from an excellent university which has outstanding graduates such as the hon. Gentleman as well as the hon. Member for Hamilton (Mr. Robertson) and others.