HC Deb 03 July 1996 vol 280 cc969-70
12. Mrs. Ray Michie

To ask the Secretary of State for Scotland if he will make a statement on the economic prospects of the Highlands and Islands enterprise area. [34182]

Mr. Kynoch

They remain excellent.

Mrs. Michie

Will the Minister confirm that the Scottish Office has at last made a decision on introducing a ferry service between Campbeltown and Ballycastle? Who is to operate the service, what vessel will be used and what is the starting date? Will the Minister give as full an answer as possible? Otherwise, I may entertain the slightest suspicion that the Secretary of State will pull another rabbit out of the hat at Dumfries on Friday.

Mr. Kynoch

I am sorry to disappoint the hon. Lady, but she has been misinformed. My right hon. Friend has said consistently that he is keen to establish the route, but significant obstacles must be overcome. He is working as best he can and as fast as he can to overcome them, and I assure the hon. Lady that we will keep her informed on his progress. Unfortunately, we do not see an announcement on a conclusion being made in the next week.

Mr. Wilson

Is not the main obstacle that Ministers must overcome their quite irrational prejudice against anything operating in the public sector? Does not everyone involved in the project—which has potential benefits for my constituency—agree that the sensible thing to do is to allow Caledonian MacBrayne to operate a vessel that it owns? It has the back-up of a fleet to provide flexibility, and it will provide jobs to Scottish seamen. The firm also has all the advantages of experience. It wants to do it, but the Government are obsessed with the idea that, unless a private sector operator can be involved—even one using a Caledonian MacBrayne vessel—the project cannot go ahead.

Will the Minister play fair with the communities involved in Northern Ireland and in the highlands and islands—and, potentially, in my constituency at Ardrossan—and allow the project to go ahead? Will Ministers get rid of their ridiculous prejudice? Never mind what the Secretary of State is telling the Minister—will he answer for himself? CalMac wants to run it, and it is best placed to do so—the Government should let it do so.

Mr. Kynoch

From the hon. Gentleman's words, it is apparent why he is no longer a transport spokesman, but perhaps that means that he can now commit his party to all sorts of expenditure proposals. The Government are adamant that we will make the right decision, and that it will be considered properly. As I said to the hon. Member for Argyll and Bute (Mrs. Michie), the Secretary of State is trying to overcome the obstacles, and he is keen to reach as speedy a conclusion as possible.

Mr. Bellingham

Is the Minister aware that the McFadden commission's stated aim is the abolition of Highlands and Islands Enterprise and the transfer of its responsibilities to a tartan tax-raising Parliament? Does he agree that that would have a calamitous effect on the highlands and islands?

Mr. Kynoch

I agree with my hon. Friend. Highlands and Islands Enterprise and Scottish Enterprise have done a remarkably good job for economic development in Scotland. I hope very much that they will continue to do so, and that they will have the full support of the Government.