SCOTTISH DAILY NEWS CO-OPERATIVE (Hansard, 30 March 1977)

§ The Earl of LAUDERDALE
My Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.

§ The MINISTER of STATE, SCOTTISH OFFICE (Lord Kirkhill)
My Lords, Scottish News Enterprises Limited, which published the Scottish Daily News, is in liquidation. The Government, as secured creditors, have lodged a claim with the liquidator, and the exact amount recovered will depend on the final outcome of the liquidation. The liquidator has, however, informed the secured creditors that payment of around 50p in the pound can be expected.

§ The Earl of LAUDERDALE
My Lords, in thanking the noble Lord for his confirmation of what has been, of course, widely published in the Press, may I ask him this question: Does he not consider, with the benefit of hindsight, that this was not a very prudent step for the Government to take, in that they made this investment against advice from their own Department and that that investment had the effect of encouraging others—namely, prospective workers in the co-operative—to invest their own savings, up to, in some cases, as much as £5,000, all of which has been lost?

§ Lord KIRKHILL
My Lords, the Government recognised from the outset that this was a high-risk venture, but the Government took the view (and at the time, I think, properly took the view) that jobs had to be saved in an area of continuing and escalating high unemployment, as is evidenced in the West Central belt of Scotland.

§ The Earl of LAUDERDALE
My Lords, in accepting the Government's point that of course investment should be made to protect and advance employment, may I ask the noble Lord whether he would not agree that the use of taxpayers' money for high-risk investment is a new and very high-risk departure from the old policies of the Board of Trade and of what used to be called the Board of Trade Advisory Committee, and so on?

§ Lord KIRKHILL
My Lords, this is, of course, one of the great divides that would separate the noble Earl from myself in terms of political credo and philosophy.

§ Lord BALERNO
My Lords, can the noble Lord inform the House as to how much has been lost by members of the Scottish National Party, or the National Party itself, who were shareholders in this venture?

§ Lord KIRKHILL
My Lords, I should really like to be able to reply to that question, but I cannot.

§ Lord HAILSHAM of SAINT MARYLEBONE
My Lords, can the noble Lord say how many jobs have been saved now?

§ Lord KIRKHILL
Of course, my Lords, as I think your Lordships' House will know, the enterprise has foundered. It enabled a number of jobs to be saved; and, of course, there has been a measure of transfer into the Outram Group.

§ Viscount HANWORTH
My Lords, did the Government consider the cost-effectiveness of this matter in keeping jobs? Surely, if they were going to invest that amount of money, there were many other courses which would have provided far more jobs?

§ Lord KIRKHILL
My Lords, the Government do not take up an intransigent position, and I think perhaps, with hindsight, there is a measure of relevance in the noble Viscount's comment.

§ The Earl of LAUDERDALE
My Lords, can the noble Lord assure us that in future the Department of Trade or the Department of Industry, whichever is concerned, will heed its own advisers?

§ Lord KIRKHILL
My Lords, the Department is, of course, always subject to Ministerial control and decision.

Viscount St. DAVIDS
My Lords, while wishing to declare an interest, in that I am a member of a co-operative in Yugoslavia, can the noble Lord say whether the Government have studied the much better methods of financing co-operatives in Yugoslavia, which result in the Government not losing nearly so much of their money—in fact they frequently make a lot—and which also protect the worker from uselessly expending large quantities of his capital and his work, and from losing a great deal of enthusiasm?

§ Lord KIRKHILL
My Lords, descending from Scottish Northern fastness, I am really somewhat insular in the Government's knowledge or awareness of the Yugoslav position. Nevertheless, I shall see that the noble Viscount's remarks are conveyed to the appropriate quarter.

§ Lord BALLANTRAE
My Lords, recalling the great astonishment which swept across the whole of Scotland when we heard that this support was going to be afforded, could the Minister assure us that no similar sudden, impulsive investment will happen again?

§ Lord KIRKHILL
My Lords, I do not think I can accept that it was an impulsive investment. Nor do I think I can give the kind of unequivocal assurance to your Lordships which the noble Lord would wish.

§ Lord ORR-EWING
My Lords, would the noble Lord follow up a point made earlier? Perhaps he could categorise how many jobs were secured, for how long, at a cost of approximately £600,000.

§ Lord KIRKHILL
My Lords, I cannot give that answer to your Lordships' House this afternoon; but I shall certainly attempt to get those figures, and I shall write to the noble Lord.