§ 8. Mr. Nicholas Winterton (Macclesfield)If he will make a statement on the effect of the current exchange rate on business confidence in Scotland. [45578]
§ The Minister for Education and Industry, Scottish Office (Mr. Brian Wilson)I have frequent discussions with businesses in all sectors across Scotland and I am fully aware of the extremely competitive trading 833 environment that companies face at home and overseas. However, the latest official data show that Scottish manufactured output rose by 7.7 per cent. in 1997.
§ Mr. WintertonI am sure that the Minister is aware that exchange rates are influenced to an extent by the level of interest rates, and we have had about seven interest rate rises under the Labour Government. The House will be well aware of my particular concern about manufacturing and textiles. Is the Minister aware that many of his trade union colleagues are deeply concerned about the redundancies that are being declared in Scotland as a result of a range of factors—not least the exchange rate and the depressing state of the textile industry in Scotland, which is an important industry for the Scottish people?
§ Mr. WilsonI recognise the hon. Gentleman's long-standing interest in the textile industry. I know that it is going through a difficult time and that, although there are many successful firms, others are suffering pressures which include the current level of the exchange rate. However, their interests and ours lie in the medium and long-term stability of the economy. If some hard decisions had been taken by the Tories in the last months of the previous Parliament, perhaps the textile and other industries would not be feeling so much pain now.
§ Mr. Frank Roy (Motherwell and Wishaw)On the question of business confidence, is my hon. Friend aware that I have asked for an inquiry into the running of Motherwell Enterprise and Development Company, whose board called in the liquidators a fortnight ago? Can the Minister give an assurance that local companies that find themselves victims of the MEDCO situation will receive all possible public help at this dangerous time?
§ Mr. WilsonWe are keeping in close touch with the MEDCO situation, as is the Lanarkshire development agency, which is our instrument of economic intervention in the area. Its first obligation is to ensure that the services and training provided by MEDCO are kept going, in the interests of my hon. Friend's constituents and the businesses in his constituency.