HC Deb 22 March 1995 vol 257 cc343-5
12. Mr. Macdonald

To ask the Secretary of State for Scotland if he will make a statement on the economic prospects of the highlands and islands in the coming financial year. [13637]

Lord James Douglas-Hamilton

The prospects for continuing growth towards long-term economic prosperity in the highlands and islands look very encouraging. This is due in no small measure to the continuing success of the Government's economic policies.

Mr. Macdonald

Given that land is the basic economic resource of the highlands, is it not profoundly wrong that large estates continue to be sold on the open- market to the highest bidder without any consultation or agreement with the local communities who live and work on the land? That is especially wrong, particularly when the local communities have expressed a preference to take on the ownership and management of the land. Given the uncertainty over the sale of the Isle of Eigg, will the Scottish Office explore with local communities ways in which the goal of community ownership can be realised, perhaps with the help of the National Trust or other similar organisations?

Lord James Douglas-Hamilton

I understand the concern of local residents on the Isle of Eigg, but interference in land sale would paralyse the land market and deny large areas of Scotland the benefits that many far-sighted landowners bring to the land they own. We believe that the way forward is through partnership, as recently evidenced by the Cairngorms Partnership, involving owners, local authorities, conservation bodies and community councils. I piloted the Natural Heritage (Scotland) Act 1991 through the House to protect the Scottish countryside and wildlife, but excessive regulation would be as inadvisable as the EC directive to bring back wolves to the wilds of Scotland.

Mr. Charles Kennedy

Does the Minister acknowledge that the economic prospects of the area are hardly likely to be improved by the cancellation decision that the highland region is facing in respect of the jobs and enterprise training units, or JET units, as a direct result of the capital squeeze by the Scottish Office? Following the discussions that have taken place between the three Members of Parliament representing the highland seats, the trade unions involved, the regional convener of Highland regional council and the chief executive of Highlands and Islands Enterprise, will the Minister back the call that at the next meeting next month, when the matter is to be especially considered by the regional council, there should be a one-year moratorium on a decision? In tandem, is he prepared to meet a delegation from the area to discuss the problem in detail to see whether a way through the funding impasse can be found in the next 12 months? Will he agree to do that and does he support that approach?

Lord James Douglas-Hamilton

I will certainly see a delegation led by the hon. Gentleman. This year's Highlands and Islands Enterprise budget has increased to £77.4 million. The hon. Gentleman might not think that relevant, but it helps a lot with training, and we want the best possible training in the highlands and islands. The hon. Gentleman appears to agree.

Mr. Wilson

Does the Minister accept that Labour wants increased rail investment in every part of Britain because we acknowledge that that will mean better communications for Scotland and manufacturing jobs in Scotland? That is just common sense. As to the specific issue of sleepers and Motorail, does the Minister accept that all hon. Members realise that consultation after services have been withdrawn is a fraud? Is not he aware that anyone who knows anything about the subject realises that figures adduced to prove a ludicrously high subsidy for sleepers and Motorail are also a fraud? Will the Minister use Scottish Office powers to provide whatever subsidy is necessary only for the short period that would allow full and proper consultation? It is within the power of the Scottish Office to ensure real and honest consultation, but it is also within its power to condemn services without a trial. Which will the Minister do?

Lord James Douglas-Hamilton

I cannot agree to divert funds from education, health or social work for the purpose that the hon. Gentleman mentioned. As to the figures, the subsidy for highland sleeper and Motorail services in 1993–94 was £2.6 million excluding infrastructure, or £6.6 million including infrastructure—a subsidy met by the taxpayer of £180 and £450 respectively. The regulator made it clear that any final decision on minimum service level is for the franchising director after his consultation on ScotRail's public service requirement later this year. Before the hon. Gentleman dismisses that consultation, I emphasise that the franchising director has undertaken to examine timetabling flexibility in daytime connections. That will be important for day services to Fort William, which will tie up with other services, including the new sleeper service between Glasgow and Paris early next year.