HC Deb 07 February 1990 vol 166 cc671-3W
Mr. Sillars

To ask the Secretary of State for Scotland (1) if he will list the instances of inward investment into Scotland made since the formation of Locate in Scotland; and what was(a) the total number of permanent new jobs created and (b) the number of companies created which had a research and development facility;

(2) if he will state the number of new jobs forecasted at the time of announcement of new inward investment projects by Locate in Scotland for each year of Locate in Scotland's operation, listing each project, the number of new jobs forecasted in the SDA/Scottish Office news release at the time of the announcement, and the actual number of jobs today.

Mr. Lang

It is not possible to provide details of individual projects, as much of the information concerned is supplied on a commercial in confidence basis; and information is not available on the numbers of inward investing companies which established a research and development facility.

However, the table shows the total number of new jobs forecast by companies at the time their plans were made.

Year New jobs
1981–82 4,500
1982–83 4,200
1983–84 3,500
1984–85 8,169
1985–86 4,663
1986–87 4,106
1987–88 6,363
1988–89 4,846

For a variety of reasons, job achievement has varied as plans have changed; and many of the projects concerned have yet to be completed. Experience suggests, however, that on average the final direct employment outturn may be about two thirds of the planned level, although a significant number of additional jobs are also created indirectly in supply and service industries.

Mr. Sillars

To ask the Secretary of State for Scotland what percentage of industrial investment, inward investment has represented for each year since Locate in Scotland was formed.

Mr. Lang

The information requested is not readily available in the form required. The table shows manufacturing investment by foreign-owned enterprises as a percentage of total manufacturing investment from 1983 to the latest available figures for 1987.

Manufacturing investment by foreign-owned enterprises as a percentage of total manufacturing investment
Year Percentage
1983 29.2
1984 25.9
1985 31.4
1986 29.1
1987 26.0

NoteInformation is not available for 1982.

Source: Annual Census of Production.

Mr. Sillars

To ask the Secretary of State for Scotland what percentage of total employment in Scotland inward investment has represented for each year since Locate in Scotland was formed.

Mr. Lang

The information requested is not readily available in the form required. The table gives the information on employment in overseas-owned plants for the period 1982, when Locate in Scotland was formed, to 1988. Figures for 1988 should be regarded as provisional.

Manufacturing employment in overseas-owned plants ( thousands) Total manufacturing employment in Scotland ( thousands) Percentage of total manufacturing employment attributable to overseas-owned plants
1982 80.2 421.7 19.0
1983 71.1 398.8 17.9
1984 70.9 382.0 18.5
1985 72.9 375.5 19.4
1986 70.2 368.6 19.0
1987 70.9 358.0 19.8
1988 70.0 351.0 20.0

SourceIndustry Department for Scotland Regional Data System.

Mr. Sillars

To ask the Secretary of State for Scotland if he will outline the monitoring procedures for ensuring that inward investors use public money for spending on new jobs; how many breaches of the rules there have teen; and how much money has been involved in such breaches.

Mr. Lang

Following the restructuring of regional assistance in 1984, all offers of grant, whether to foreign or United Kingdom-owned companies, have contained specific provisions for withholding grant payments, or securing recovery of grant already paid if, among other conditions, jobs are not created or safeguarded according to the conditions of the offer. Officials make periodic inspections to monitor progress of projects both before and after completion. Between April 1987 and January 1990, a total of about £1 million of regional assistance was recovered in Scotland because of failure to meet one or more conditions of offer. Separate information for inward investors, and on grant recovered or withheld specifically because of failure to meet job targets, could be provided only at disproportionate cost.