Lanarkshire Working Group (Hansard, 7 June 1991)

§ Mr. Lang

I welcome the report of the Lanarkshire working group, which was published today and I commend the way in which the organisations represented on the group have worked together to propose Lanarkshire-wide solutions to the economic problems caused by major steel and related job losses.

The group's report makes it clear that Lanarkshire has many advantages and assets. Building on the Lanarkshire development agency's business plan, and the ideas and plans of the other private and public bodies in the area, the group has offered proposals which would greatly benefit Lanarkshire's economy. These embrace good sites, good communications and infrastructure, improved training and business support, a better environment, and attractive tourism and leisure facilities. All of these together will support the new and replacement jobs Lanarkshire needs. Given the spirit of co-operation evident in the group itself, 380W I expect the local authorities, Scottish Enterprise, the Lanarkshire development agency, East Kilbridge development corporation, Scottish Homes, the local enterprise trusts and British Steel (Industry) Limited, together with officials of the Scottish Office and the Employment Service, to maintain that partnership and work to ensure that in their programmes and activities, projects identified by the working group are given priority and driven forward to successful completion. The financial assistance now being made available by the Government totals £120 million.

The group has identified a number of early action and medium-term projects, achievement of which will require the sustained co-operation of the various local and national bodies involved, as well as the full co-operation of the private sector. It will be for the Lanarkshire development agency to co-ordinate implementation of the 16 early action projects for site development identified in the report. The agency is, I know, keen to get on with the job.

The group laid particular stress on the need for improvements to the road infrastructure of Lanarkshire and, in particular, the need for early upgrading of the A8 between Newhouse and Baillieston to give better access to industrial sites in the Lanarkshire area and to accommodate increased traffic flows. I recognise the need for such improvements and I have, therefore, commissioned Strathclyde regional council to undertake a design study for a revised road scheme for the upgrading of the A8 between Newhouse and Baillieston which would also allow for early upgrading of the existing Shawhead and Chapelhall junctions to facilitate access from local industrial sites in line with the group's recommendations.

The group also noted the economic benefits which construction of a new general hospital would bring to the Motherwell area. I am therefore very pleased to announce that I have today endorsed Lanarkshire health board's proposal in its acute services strategy to build a new district general hospital at Netherton in Wishaw. This decision will enable detailed planning work to go ahead with a view to a start on site well within the period of four to seven years envisaged by the group. Apart from its welcome contribution to improved health care, this project will contribute construction and long-term jobs, and should help attract business, to the area. A fuller announcement will be made in due course about other aspects of the board's strategy.

Throughout the group's report, stress is laid on the need to stimulate private sector investment in Lanarkshire. I strongly support this approach. Now that we have a report which highlights Lanarkshire's assets and its many and varied prospects for development, I shall be looking to the private sector to take up the opportunities available, and to build on the foundations of increased public sector investment.

I look in particular to the positive role which British Steel can play, recognising British Steel (Industry) Ltd.'s important existing contribution to the area, and welcoming its recent initiative in opening a new office in Wishaw. I am also especially pleased to welcome today's announcement by British Steel (Industry) Ltd. that it intends to spend an additional £10 million in Lanarkshire over the next three years on measures to which the Lanarkshire working group also attached priority—particularly the provision of finance for business projects, 381W and additional managed work space. This will integrate well with the proposals in the working group's report, and make a valuable contribution towards their fulfilment.

The report recommends that selected strategic and industrial development sites in north Lanarkshire should be given enterprise zone status, recognising that for an enterprise zone to be designated within an area, it has to satisfy the criteria established by the European Commission. The Government are considering this recommendation against the background of its existing policy on enterprise zones, and the costs which might be involved.

Taken together, the recommendations of the group would represent a substantial call on public expenditure. The bulk of the expenditure needed to implement the proposals on site and business development, training, and environmental improvement would be the responsibility of Scottish Enterprise and the Lanarkshire development agency. Strathclyde regional council and the five Lanarkshire district councils would be responsible for meeting necessary expenditure on local roads, water, sewerage and factory building identified in the report.

I have already made available for the Lanarkshire development agency and the Lanarkshire district councils nearly £28 million of additional funding for expenditure in the course of 1991–92. These resources, which include the £15 million announced in May by my right hon. Friend the Prime Minister, are over and above Scottish Enterprise's basic allocation to the Lanarkshire development agency of £36 million, the £5 million spent by the Scottish Development Agency in buying key north Lanarkshire sites earlier this year, and the £26 million capital programme for East Kilbride development corporation, and will enable a substantial early start to be made on the site developments and environmental and other improvements recommended by the group.

Through the Department of Trade and Industry the Government will make available some £28 million to assist British Steel employees made redundant who qualify under the iron and steel employees readaptation benefits scheme.

I am also pleased to announce today that the Scottish Office has approved a project proposed by Strathclyde regional council for funding under the urban programme to help redundant steelworkers. The project would be based in Motherwell, and concentrate on the deprived communities in north Lanarkshire.

On European Community assistance, I agree that Lanarkshire's needs should be urgently considered for enhanced support under the Strathclyde integrated development operation. I shall ensure that the other recommendations concerning European Community assistance are drawn to the attention of the European Commission.

The Government will announce their expenditure plans for the years 1992–93 onwards at the end of the public expenditure survey. I shall give the needs of Lanarkshire priority in deciding the allocations to my programmes. I shall also expect the other public bodies represented in the group to give similar priority to projects for which they are responsible. It will be important that the projects which proceed in the short term are those which provide the maximum economic benefits for Lanarkshire, thus ensuring the best use of the resources available.

In Lanarkshire, the Government have identified the problem, established the working group to address it and 382W is now bringing together the measures and resources to respond to it so that, over the next few years, Lanarkshire's economy will have the chance to diversify and regenerate for the benefit of its people and of Scotland as a whole.