§ 5. Mr. Alasdair Morgan (Galloway and Upper Nithsdale)What additional steps he proposes to assist employment creation in the south of Scotland. [56105]
§ 12. Mrs. Caroline Spelman (Meriden)If he will make a statement about the economic prospects for the borders. [56113]
§ The Secretary of State for Scotland (Mr. Donald Dewar)I have just returned from a series of meetings in the borders and last week I undertook a similar visit to Dumfries and Galloway. I heard at first hand about the problems that are being encountered. My Department is working with local organisations to address those problems. A number of initiatives are in hand, including additional support for both local enterprise companies. To give another example, I was able yesterday to confirm approval and funding for the A7 traffic relief scheme at Hawick, which should offer important economic development benefits.
§ Mr. MorganFurther to that reply, does the Secretary of State agree that transport costs are a vital factor in job creation in the south and south-west? Will he undertake to urge the Chancellor to reverse his current policy of increasing road fuel duty by some 6 per cent. annually above the rate of inflation—a policy that will result in petrol costing £4.50 by the end of this Parliament and which will cost jobs in the south and the south-west? [Interruption.]
§ Mr. DewarI understand the hon. Gentleman's point. I am interested to hear Conservative Members shouting that the hon. Gentleman is absolutely right. The Conservative Government, for very understandable reasons, followed a policy of introducing real increases above the rate of inflation for many years. Their words either show an inability to remember the past, or else drip with hypocrisy.
As for Dumfries and Galloway, I had extremely constructive talks with the council, the local enterprise companies and other interests there. We are trying to help them to build for the future. I recognise the importance of tourism and job-creation measures. I assure the hon. Gentleman—I suspect that he will have heard this from others—that we are properly engaged in finding a way forward.
§ Mrs. SpelmanAgriculture is in deep crisis in the borders, and currently, I understand from my relatives, about 1,700 jobs are at risk. Will the Government accept 669 responsibility for the mismanagement of this sector, or continue to blame the rest of the world and the people of the borders?
§ Mr. DewarOn the hon. Lady's question about accepting responsibility for mismanagement, the answer is no. I hope that she is following the BSE inquiry with close attention, because she might find it instructive. I certainly accept that there are difficulties in the agricultural sector. Sadly, they affect almost every section of the industry at the moment, which is a particular problem.
As the hon. Lady knows, we spend about £500 million a year in Scotland on agricultural support of one sort or another, and a successful effort was made last year to find additional help for farmers. If she likes to study the advanced arable area payments, the order on split ewe carcases, the increase from 60 per cent. to 80 per cent. on advance payments on the special beef premium and a number of other measures that have been taken over recent weeks and months, she will see that a great deal is being done. We are in constructive dialogue with the National Farmers Union of Scotland.
§ Mr. John Home Robertson (East Lothian)Will my right hon. Friend reflect on the success of the task force established in Haddington in my constituency, following the loss of 510 jobs at the Mitsubishi factory seven months ago? The task force, which involved the Employment Service, the Benefits Agency, the local enterprise company, the Scottish Office and the local authority, succeeded in getting 450 out of 510 people into alternative employment or training places, and is still working on getting the remaining 60 people placed. Should we not be talking about positive achievements of that kind, rather than listening to Jeremiahs from Meriden or the Scottish National party?
§ Mr. DewarI have not visited Meriden to count the number of Jeremiahs, but that may be an interesting expedition for the future. My hon. Friend is right to point to that success, following the great disappointment of the Mitsubishi closure in Haddington. It is perhaps a reminder that, when there is a Government with a bit of energy and initiative, a great deal can be done and that, despite what we often hear from Opposition Members, the economy is not in free fall. We have not plunged into deep recession and we are much better placed than many of our competitors to ride out these problems.
I should comment on Viasystems, because of the bitter blow to the borders economy. I had a useful and constructive meeting with the shop stewards last night in Selkirk. They are also trying to look to the future in a way that does them great credit.