HC Deb 12 February 2002 vol 380 cc61-2
4. Dr. Ian Gibson (Norwich, North)

What progress has been made in the development of biotechnology companies in Scotland. [32335]

The Minister of State, Scotland Office (Mr. George Foulkes)

In biotechnology, Scotland is a world leader. It is a clear success story—the sector is well on track to double in size during the period 1999 to 2003.

Dr. Gibson

My hon. Friend will be aware that the biotechnology industry is notorious for overhyping its achievements. Is not the real picture in Scotland one of small companies, few nominations on the stock exchange, few spin-outs from universities and a lack of Government investment in research and development? The biotechnology industry needs much more investment to reach the standards that we see around one city in England, called Cambridge, or am I wrong?

Mr. Foulkes

I hesitate to call such a distinguished doctor of philosophy wrong, but I think I will. Two of the top three recent biotech private financings in Europe were for Scottish companies: Cyclacel, which is run by a Nobel laureate and is doing fantastic work on cancer, raised £35 million, and Strakan raised £30.5 million. The 30 per cent. growth per annum is almost twice the European average. There are 420 organisations involved in biotechnology in Scotland, 24,400 people are employed by the industry, and there are 37 university departments and research institutes. However, as I am willing to listen and to learn, a week on Friday I have arranged to meet 12 of the leading representatives of the biotechnology industry in Scotland, and I will discuss with them the point raised by my hon. Friend.

Bob Spink (Castle Point)

What is the Minister's view of the impact on biotechnology companies and business development in Scotland generally of the massive increase in the burden of regulation that the Government have imposed on business in Scotland? Does he think that that is positive, and that I, like the hon. Member for Norwich, North (Dr. Gibson), am wrong?

Mr. Foulkes

I have many meetings day after day, week after week, and that is not the first matter that is raised with me by people in Scotland. There are several other important issues. Scotland would not have twice the European average growth in biotechnology if it was over-regulated compared with other countries. If the picture that the hon. Gentleman paints were accurate, we would not have such development in Scotland. Once again, he is trying to pretend something that is not true. Like his Front-Bench colleagues and the Scottish nationalists, he is joining in the chorus of talking Scotland down.