HC Deb 08 December 1998 vol 322 cc137-8
9. Mr. Nicholas Winterton (Macclesfield)

If he will make a statement on developments in the Scottish manufacturing sector. [61272]

The Parliamentary Under-Secretary of State for Scotland (Mr. Calum Macdonald)

In the year to the second quarter of 1998, manufacturing output increased by 4.6 per cent., compared with the previous four quarters, and growth was evident in seven of the 11 manufacturing sectors.

Mr. Winterton

Are the Minister and the Labour Government concerned by the Office for National Statistics index of production, which showed manufacturing output in the three months to October falling by 0.7 per cent. and business failures in September rising by nearly 18 per cent? Do those figures result from the tax on savings, the increases in taxation and the increase in business costs that the Government have brought into effect.

Mr. Macdonald

As I would have predicted, the hon. Gentleman is being selective. As I have said, in the year to the second quarter of 1998, manufacturing output increased by 4.6 per cent. In the past month, there have been excellent announcements by various companies: Fullarton Computer Industries will create 500 new jobs in Prestwick; Universal Scientific Industries is creating 700 jobs at a new plant in Irvine; and Walter Alexander, the Falkirk coach builder, has won a £15 million contract from Hong Kong for 122 buses, which is commendable in a difficult export climate.

Ms Roseanna Cunningham (Perth)

Will the Minister advise the House whether he thinks that the Scottish manufacturing sector will be adversely affected by an emergent Whitehall culture, which is demonstrated in a recent leaked memo stating that as little information as possible is to be given to the Scottish Parliament even in areas of devolved powers? Does he think that that grudging attitude is appropriate?

Mr. Macdonald

Manufacturing would, of course, be wrecked by the uncertainties caused by any move towards separation and independence. I must emphasise that there is no plot to snatch back funds from the Scottish Administration. Funds that are already with the Scottish Office will automatically transfer to the Scottish Parliament and the White Paper stated that Scotland would continue to benefit from its appropriate share of United Kingdom public expenditure.