§ 10. Mr. Nicholas Winterton (Macclesfield)If he will make a statement on the current levels of inward investment to Scotland. [76315]
§ The Secretary of State for Scotland (Mr. Donald Dewar)In the year to March 1998, Locate in Scotland and the Scottish Office helped to attract to Scotland a total of 87 inward investment projects, involving planned investment of just over £1 billion and the expected creation or safeguarding of nearly 18,000 jobs. The jobs figure is at a higher level than at any time in Locate in Scotland's 18-year history.
§ Mr. WintertonDoes the Secretary of State agree that, under the previous Conservative Government, inward investment in Scotland was absolutely massive? Does he agree also that, under a Labour Government, unemployment is going up in Scotland; that, this month, it is likely to be up for the third month running; and that, this year alone, more than 4,000 jobs have been lost in Scotland? Does he believe that the Chancellor's Budget—which penalises lower-income and less well-off families in Scotland—will help? Does he believe that the SNP's raising taxes by 1p more than in the rest of United Kingdom would not have an adverse affect on smaller business?
§ Mr. DewarI have just explained that Locate in Scotland has had a record year. I hope that that success will continue. I pay tribute to the contribution that inward investment has made to management skills and to broadening the base of the economy. It accounts for 29 per cent. of employment in manufacturing industry. I hope that there will be further good news on inward investment shortly.
The hon. Gentleman is being selective about unemployment. At 5.5 per cent., the claimant count is at its lowest for about 20 years. Youth unemployment has almost halved. Unemployment in many constituencies in Scotland is very much lower than it was in February 1996, when I think the Conservatives were in office. To take a random example, in Banff and Buchan, unemployment fell by 42 per cent. between February 1996 and February 1999. That trend is true for all the constituencies represented by the Scottish National party. I am very happy to recognise that and say how satisfactory it is. We want to continue that record, not go back to the days of the Conservative Government.
§ Mr. David Marshall (Glasgow, Shettleston)Does my right hon. Friend agree that Locate in Scotland and 153 Scottish Enterprise have an excellent record in attracting many thousands of jobs to Scotland and are the envy of the rest of the United Kingdom and most of Europe? Does he further agree that it would be disastrous for jobs in Scotland if there were any chance of the changes to Locate in Scotland suggested by the SNP—which would undermine its effectiveness—being implemented?
§ Mr. DewarI understand that the SNP is advocating that Locate in Scotland should be taken into the civil service and should be answerable directly to Ministers. That is what has been reported to me. If it is not true, no doubt I shall be told. That is a remarkably centralising policy that would result in the input of business and commerce in the form of the Scottish Enterprise board being lost. I understand that the Scottish nationalists are also proposing that a majority of those in the local enterprise companies should be Members of the Scottish Parliament or local authority elected members. There should be a proper partnership, using the experience and entrepreneurial skills of Scottish industry, not the centralised arrangements that the SNP proposes. My hon. Friend is right to point to the success of Locate in Scotland. We are anxious for that success to continue.
§ Mr. Ian Bruce (South Dorset)I am sure that the whole House will congratulate Locate in Scotland on its excellent figures last year. Has the Secretary of State noticed that unemployment continued to go down rapidly when the Government came to power, before they had changed any of the Conservative Government's policies? Has he also noticed that unemployment has gone up in Scotland in the past three months? If he has not noticed that, he ought to. What does he propose to do about the fact that jobs and investment are moving away from Scotland? He cannot just rely on a good Conservative record.
§ Mr. DewarAnother badge for courage, I think. I repeat that there has been a substantial drop in unemployment since the Conservatives were in power three years ago. The record of creating and attracting jobs in Scotland since we came to power greatly outweighs the job losses. Of course there is some uncertainty about whether all the jobs that have been promised will appear, but even taking into account the National Audit Office's recommendation of discounting by a third, the balance is still on the right side. Jeremiahs are always to be found on the Opposition Benches, but I am afraid that the hon. Gentleman is making a profession of it.