§ 2. Mr. David Stewart (Inverness, East, Nairn and Lochaber)If he will make a statement on the exclusion of Inverness, East, Nairn, Badenoch and Strathspey from the assisted areas map. [126337]
§ The Secretary of State for Scotland (Dr. John Reid)Following the publication of the proposed assisted areas map on 10 April, I received representations from my hon. Friend and others on the exclusion of the area. Revised proposals have now been submitted to the European Commission.
§ Mr. StewartI thank my right hon. Friend for his comments. He will be well aware of the rundown of the Barmac fabrication yards, with the loss of more than 3,000 jobs that are highly skilled and well valued in the highland economy. Does he share my view that that strengthens the case for my constituency remaining within the assisted areas map, as indeed it does under the highlands and islands special transitional programme? Will he undertake to visit my constituency to add his weight to the campaign?
§ Dr. ReidI am, of course, aware of the effects of the developments at Barmac; we all take them very seriously. I recognise the general strength of the arguments that have been expressed by my hon. Friend about parts of his 701 constituency. I assure him that, during the consultation process, we listened carefully to the views expressed on the matter. As he will be aware, the final decision is for the European Commission, but he will not be entirely disappointed with the outcome of our reception of his representations nor, hopefully, with the outcome of the review itself.
§ Mr. Robert Maclennan (Caithness, Sutherland and Easter Ross)Does the Secretary of State recognise that, by no criteria, are the interests and needs of Inverness to be compared with those of the fragile areas on the periphery of the highlands? Those areas are sparsely populated and have long lines of communication. Does he agree that, although a case can be made for Inverness, related to Barmac, it would be no triumph for highland development if moneys for assistance simply drained into the centre on the ground that what is good for Inverness is good for the highlands because it is of pan-highland benefit?
§ Dr. ReidThe right hon. Gentleman makes a pertinent and important point. The question by my hon. Friend the Member for Inverness, East, Nairn and Lochaber (Mr. Stewart) referred not only to Inverness, but to Badenoch and Strathspey. The right hon. Gentleman will be aware that the proposals published on 10 April gave the highlands and islands more than 70 per cent. coverage. We also need to remember that they will still benefit from the special transitional programme, which is valued at 308 million ecu—that is £192.5 million for those Conservative Members who do not like to deal with anything in European terms—and which will run for the period from 2000 to 2006.
§ Mrs. Margaret Ewing (Moray)Does the Secretary of State accept that the impact of the job losses at Barmac has repercussions in many areas of the highlands and islands? Although we welcome, for example, the development of Cap Gemini at Forres, does he recognise that the enterprise areas of Inverness and Nairn and of Moray, Badenoch and Strathspey would welcome assisted area status? That would help them in their attempts to attract a variety of jobs into the area to ensure that we can absorb the redundancies that have taken place. Otherwise, we shall lose people from the area.
§ Dr. ReidYes. I have already said that I appreciate the effect of what has happened at Barmac. Indeed, my hon. Friend the Minister of State and my hon. Friend the Member for Central Fife (Mr. McLeish), who is on the Scottish Executive, will meet Barmac in the very near future—tomorrow, I think. I have already referred to the highlands and I recognise the strength of the argument of my hon. Friend the Member for Inverness, East, Nairn and Lochaber, which applied to some extent to the area around Strathspey and Badenoch. I hope that that shows that we have listened to the representations that have been put forward.
I should stress that the European Commission has the final say. The hon. Lady will be aware that our first proposals were targeted in such a way as to get the maximum effect throughout Scotland. Those proposals were not acceptable to the European Commission, so we are going back with a new set of proposals.