HC Deb 26 October 1994 vol 248 cc882-4
8. Dr. Reid

To ask the Secretary of State for Scotland when he next expects to meet the chairman and chief executive of Scottish Enterprise to discuss the Scottish economy.

Mr. Lang

I plan to meet the chairman and chief executive of Scottish Enterprise next month.

Dr. Reid

When the right hon. Gentleman meets the chairman, will he tell him how disappointed we were that Samsung did not come to Lanarkshire? More importantly, will he tell him how disturbed we are by the reports now beginning to filter out that the package that attracted Samsung to the north of England was not the reported £58 million, but £71 million, the extra £13 million given in stealth being meant to counteract our enterprise zone status and financial assistance? Does he accept that if that was done at the behest of the President of the Board of Trade, it is an absolute scandal which counteracts completely the financial assistance given by the Government, and the implicit and explicit promises of the Prime Minister? Will the right hon. Gentleman give a guarantee that he will investigate the reports if I send him the information relating to them?

Mr. Lang

I share the hon. Gentleman's disappointment that Samsung chose not to come to Scotland. Nevertheless, I am sure that he will join me in welcoming the fact that this extremely important new inward investment was won for the United Kingdom in the face of worldwide competition, because of the competitiveness of the United Kingdom's economy. It is competitive because we resist, for example, such measures as the social chapter and the minimum wage.

I think that the hon. Gentleman will also agree that it is extremely satisfactory that Lanarkshire came so close to winning the Samsung project. That is a reflection of the progress that has been made in making Lanarkshire an attractive place in which to invest, just like the rest of Scotland. On the figures, the hon. Gentleman knows that the regional selective assistance scheme operates on a level basis across the whole of the United Kingdom, subject to standard criteria. If he can let me have details of any components of the package offered to Samsung which differ from what has been published, I will of course give them close attention.

Mr. Raymond S. Robertson

Can my right hon. Friend confirm that over the summer months there was a series of historic and massive boosts to the Scottish economy from massive inward investment in the central belt and new oilfields off the west coast of Shetland? Does he agree that under a tax-raising Scottish Assembly, all of that would be put in jeopardy and at risk? A tax-raising Scottish Assembly would drive out investment, force up unemployment and create misery for every taxpayer in Scotland.

Mr. Lang

My hon. Friend is absolutely right. One of the reasons why Scotland is so attractive to inward investors and so successful economically is precisely that it is within the United Kingdom, operating in the stable economic environment that exists right across the United Kingdom. Not only have we been extremely successful in inward investment, but we, as a Scottish nation, are now manufacturing more than ever before in our history and exporting more than ever before in our history.

Dr. Bray

Is the Secretary of State aware that the enterprise zone sites in Lanarkshire are not filling up rapidly with this inward investment? Will he not only investigate the positive discrimination about which my hon. Friend the Member for Motherwell, North (Dr. Reid) has informed the House, but examine whether there are positive measures which could be taken to get the investment flow going into the enterprise zones?

Mr. Lang

I am happy to assure the hon. Gentleman that last year inward investment coming to Scotland was at record levels in terms of the number of projects, the capital invested and the jobs created and protected. This year, the effort is even more successful, with Lanarkshire securing a substantial proportion. An example is the recent further expansion of Motorola at East Kilbride. I will, however, investigate further any specific points that the hon. Gentleman cares to bring to my attention.

Mr. McFall

When the Secretary of State next meets Scottish Enterprise, will he discuss with the chairman the question why that body put £4 million of public funds into one particular hospital and why Scottish Enterprise took £1.4 million in equity in the company involved? Is he willing to see a further £5.4 million poured into this black hole of a project, which is radically different from the one announced and welcomed in 1987? Is there not a question of bad judgment in this? What does the right hon. Gentleman intend to do about it?

Mr. Lang

The application for financial assistance was, of course, appraised in all the normal and conventional ways—and very thoroughly—before decisions were taken. The hon. Gentleman should reflect on the fact that enterprise of all kinds carries with it a certain amount of risk. It is to the great credit of Locate in Scotland that it has brought no fewer than 346 projects to Scotland in the past five years, the vast majority of which are now successfully established, and expanding and generating extra resources. I hope that the hon. Gentleman will support the prospects for Health Care International and will hope that it will succeed and continue to provide employment, which is badly needed in Clydebank.