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Mr. Lang : I certainly recognise Lanarkshire's problems, which is why we have given special attention and resources to its interests, and why Scottish Enterprise and the Lanarkshire development agency have been specially funded. It is also why we have devoted resources to training in that area. We shall be able to continue to do so as a result of the increased funding that I have been able to generate for Scottish Enterprise, to top up the training budget that it receives as a result of the Great Britain training negotiations.
Mr. George Kynoch (Kincardine and Deeside) : There are many things in my right hon. Friend's statement
Dr. Bray rose --
Dr. Bray : I believe that the Secretary of State's last words were lost.
Madam Speaker : Perhaps the right hon. Gentleman will repeat them for the sake of the Official Report.
Mr. Lang : As an afterthought, to answer the hon. Gentleman's sedentary question, I said that the apportionment for local enterprise companies will be decided later.
Mr. Kynoch : There are many things in my right hon. Friend's statement to welcome, despite the comments of
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Labour Members, who clearly wrote their speeches before they heard it. There are real increases across the board, although the Opposition and the media predicted cuts. I particularly draw attention to the £31 million extra for Scottish Homes, which is a 7 per cent. real increase. Will my right hon. Friend ensure that an adequate proportion of that money will be devoted to rural, developing areas of population, such as my own constituency of Kincardine and Deeside?Mr. Lang : I am glad to assure my hon. Friend that Scottish Homes pays great attention to the housing needs of rural areas, and I feel sure that its resources will be directed at that, as at its other priorities. Scottish Homes will also devote some £7 million of its budget to the interests of care in the community--another subject to which I know my hon. Friend pays much attention.
Mr. Dennis Canavan (Falkirk, West) : At a time when 100,000 Scots are homeless, how can the Government justify their persistent refusal to give local authorities the resources to build sufficient houses and at the same time propose to spend up to £60 million of taxpayers' money on Windsor castle? Does the Secretary of State agree with me that it would be absolutely unjustifiable for the Government to cut legal aid to those on low incomes when the Chancellor of the Exchequer--who lives in a rent-free house and has a salary of more than £63,000 a year--is receiving legal aid from the taxpayer?
Mr. Lang : As to housing, my hon. Friend the Member for Kincardine and Deeside (Mr. Kynoch) mentioned the 7 per cent. real increase for the budget of Scottish Homes. In addition, we announced £20 million as part of the package for 1992-93, from which £7.5 million will go to housing. Housing resources are, therefore, being effectively focused. Far from cutting the legal aid budget, we anticipate a 40 per cent. rise over the period of the survey.
Mr. David Shaw (Dover) : Will my right hon. Friend ensure that ordinary Scottish people will benefit from the increased public expenditure in Scotland? In the Monklands district council area, much of the additional money seems to be going into the pockets of councillors and their families. Is my right hon. Friend aware that Monklands district council has approved legal fees to be paid--
Madam Speaker : Order. I am perfectly willing to hear a question on the statement from the hon. Gentleman, but only on that subject.
Mr. Shaw : I apologise, Madam Speaker, but I do not think that I was straying from the statement because--if I may finish the point--the decision was taken to spend money that my right hon. Friend has just announced is supposed to go to the Scottish people on legal fees to support a private action by Monklands district councillors. That would be an abuse of the money that my right hon. Friend the Secretary of State--
Madam Speaker : Order. I call the Secretary of State.
Mr. Lang : I am sure that the appropriate authorities will be able to investigate any misappropriation or wrongful use of resources by local authorities. However, I am pleased that local authority funding is increasing in the
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way that it is and that, for example, the local authority capital spend on school buildings is going up from £74 million to £82 million.Mr. William McKelvey (Kilmarnock and Loudoun) : Several schools in Kilmarnock are crumbling because money is needed to repair them. How much of this money does the Secretary of State think will be directed towards that source? In general, how does he think that the life of the people in Kilmarnock will be improved by his announcement?
Mr. Lang : The allocation between authorities will be made in due course and the hon. Gentleman's anxieties will be set at rest. As to the improvement in the life of the people of Kilmarnock, I am sure that they will be pleased to hear that the advance works on the A77 should be able to start in 1993-94.
Mr. Brian Donohoe (Cunninghame, South) : Can the Secretary of State be more specific about the training budget? He referred to statements in the Scottish press about a 10 per cent. reduction, but, when asked, he avoided answering our question regarding the training budget for 1992-93.
Mr. Lang : The allocation of resources is a matter for Scottish Enterprise and the local enterprise companies. They can decide whether to reallocate resources or to apply operating surpluses to training, in addition to the existing budget. The youth training guarantee will be met. By levering in more private sector training resources--which is already happening, according to the survey carried out recently by the Confederation of British Industry--I would expect the funds committed to training in Scotland to continue to rise.
Mr. Robert Hughes (Aberdeen, North) : Has the Secretary of State really considered the problems of housing in Scotland? Has he considered how many local authority houses will be modernised and brought up to standard and how many new-build houses will be available as a result of this statement? What is the basis for university funding? Is it based on the Scottish population, or on the number of students that Scottish universities put through in a year?
Mr. Lang : The funding for university students is based on the number of students already in higher education and those anticipated to be in higher education. That number is anticipated to rise from about 100,000 this year to about 107,000 next year. I cannot give the hon. Gentleman the specific housing figures that he requests, but the housing programme's gross capital expenditure will rise by £25 million more than was forecast.
Mr. Peter Atkinson (Hexham) : May I just-- [Interruption.]
Hon. Members : The hon. Gentleman was not here for the statement.
Madam Speaker : Order. I have seen the hon. Gentleman rising to his feet for some time.
Mr. Atkinson : Thank you, Madam Speaker. [Interruption.]
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Madam Speaker : Order. Do I understand that the hon. Gentleman was in the Chamber for the statement?
Mr. Atkinson : Yes, Madam Speaker, I was.
I congratulate my right hon. Friend on another bright spot in the statement --the settlement amounting to £440 million for Scotland's farmers, which is 44 per cent. up on the previous settlement. That will be warmly welcomed by Scottish farmers. May I use this opportunity to draw attention to the bargains that can be obtained in my constituency's livestock marts, just across the border, and hope that Scottish farmers will make full use of them?
Mr. Lang : I am most grateful to my hon. Friend for the close interest that he takes in Scottish matters as a result of his membership of the Select Committee on Scottish Affairs. He will be glad to know that funding for the suckler cow premium is expected to rise from £26 million to £37 million in Scotland.
Mr. Michael J. Martin (Glasgow, Springburn) : The Secretary of State will know that many visitors to Glasgow are impressed by the rehabilitation of the older tenements as a result of the sandblasting and re-roofing that was done with Government and local authority grants. Can he tell me whether the statement means that more money will be available for that type of work? Many young couples and elderly people in the older tenements suffer from rain penetration and dampness in those tenements. They want to remain in them, but they will need assistance if they are to remain in those parts of Glasgow where they have lived for many years.
Mr. Lang : Expenditure on private sector improvement grants will rise by 1.5 per cent. in real terms over 1992-93 plans. Provision for housing expenditure assumes that £63 million will be spent on special needs.
Mr. Andrew Welsh (Angus, East) : If training represents hope for the present and growth for the future, why are not the Government, who are giving £1.75 billion in a straight subsidy to London Transport, adequately funding training in Scotland? Does the Secretary of State understand that this package is woefully inadequate, given the reality of unemployment and the infrastructure needs of Scotland? It will neither get Scots off the dole queues nor build up the nation's infrastructure. The right hon. Gentleman has simply let Scotland down once again.
Mr. Lang : Perhaps the hon. Gentleman should reflect on the fact that our expenditure on training is two and a half times as high in real terms as that of the previous Labour Government, whom his party supported in office. Perhaps he will also reflect on the fact that a comparison of the programmes covered by the Scottish Office block with those in England shows that expenditure in Scotland is 30 per cent. higher per head.
Mr. John McAllion (Dundee, East) : Last year, the Secretary of State announced an increase in the specific grants to local authorities for police to £243 million, which allowed for an additional 200 police and civilian staff. What is the increase this year, and how many additional police and civilian staff will it allow for in the face of the crime wave that is sweeping the country--which seems to have escaped his notice?
Mr. Lang : We have increased law and order provision by 11.6 per cent., which will provide for police, prisons,
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legal aid and other aspects. The details of the specific grants have yet to be decided, but I reassure the hon. Gentleman that we have approved an increase in police manpower in the current year and that we shall not give up on crime.Mr. Norman Hogg (Cumbernauld and Kilsyth) : As the Secretary of State has collective responsibility for economic policy with the Chancellor of the Exchequer, will he say how he will tackle the horrendous problems of unemployment in Scotland, particularly among young people in the new towns? What changes does today's statement make to the funding of the five Scottish new towns, with particular reference to inward investment and the mechanisms that the Government use for that purpose?
Mr. Lang : The resources for Locate in Scotland, which encourages inward investment and is run jointly by the Scottish Office Industry Department and Scottish Enterprise, will be decided by Scottish Enterprise from the extra resources--up by £27 million, a real increase of 11 per cent.--that we have given for its enterprise and environment budgets. The hon. Gentleman will be pleased to know that we have budgeted for a real terms increase of 10 per cent. in expenditure on the infrastructure of new towns.
Mr. John Maxton (Glasgow, Cathcart) : Does the Secretary of State believe that the money that he intends to spend on housing will do anything to help to solve the problems of employment in the construction industry or of dampness in housing throughout Scotland and of homelessness? If he does, will he ensure that a fair proportion of the money goes to Glasgow district council so that it can improve housing in south-west Castlemilk and lift the threat of demolition from tenants in the Hangingshaw area of my constituency?
Mr. Lang : Yes, I believe that, and I shall bear in mind the hon. Gentleman's representations.
Dr. Norman A. Godman (Greenock and Port Glasgow) : When funds are apportioned to the local enterprise companies, will the Secretary of State ensure that sufficient funds are given to Renfrewshire Enterprise so that its officials can deal with the massive problems generated by continuing high unemployment in Inverclyde, particularly in Greenock and Port Glasgow? Many of those unemployed people are highly skilled adults and youngsters ; they have been denied employment. They deserve a better chance in life from a so-called United Kingdom Government.
Mr. Lang : The hon. Gentleman will know of the attention that we have given his constituency and its problems, not least in establishing an enterprise zone in the area. The budget of the local enterprise company is a matter for Scottish Enterprise, and I am sure that it will note his representations.
Mr. Ian Davidson (Glasgow, Govan) : What hope is there in the Secretary of State's announcement for the people in my constituency who are experiencing difficulties? Can the right hon. Gentleman tell me what hope was offered in his statement to young people without work, to people in damp, badly repaired houses, and especially to the elderly, who live in constant fear of crime?
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Does not he agree that his statement contained far too little to meet the real difficulties faced by people in my area?Mr. Lang : The hope that those people can derive from my statement comes from the fact that we have made resources available for housing, for the Scottish Enterprise initiative, for education, health and roads, for the environment and for a whole range of other things. As a result of my statement, spending in Scotland will be about £1 billion higher in 1993 than it was in 1992.
Mr. Adam Ingram (East Kilbride) : Will the Secretary of State tell the House what sum has been allocated for the new towns' transfer of housing stock, with reference to the capital consents that will have to be applied to the transfer to local authorities?
Mr. Lang : That matter has not yet been decided.
Mr. Thomas Graham (Renfrew, West and Inverclyde) : Not long ago the Secretary of State said at the Dispatch Box that we needed £5 billion to improve water and sewerage systems in Scotland. Yet today's announcement makes it look as though we shall continue to need £5 billion to fix the environment in our country. Why has the right hon. Gentleman not fought to ensure that the people of Scotland have proper water to drink which complies with EC standards? Why has he not introduced measures to improve our sewerage systems?
Mr. Lang : The hon. Gentleman cannot have listened to my statement. I said that we were finding £728 million for water and sewerage over the survey period, including an increase of £16 million for the year ahead compared with the current year.
Mr. Robert Maclennan (Caithness and Sutherland) : As the Secretary of State has announced some increase for Scottish Homes but the planned outturn for housing this year is 11 per cent. above the projected provision for next year, by how much is the right hon. Gentleman cutting local authority spending on housing?
Mr. Lang : As I said in my statement, local authority expenditure on housing is being maintained on a per house basis. The hon. Gentleman is wrong to compare outturn with plan. The proper comparison is plan with plan.
Mr. Eric Clarke (Midlothian) : Does the Secretary of State realise that he is being accused of, and is guilty of, the sin of omission? He has omitted from the statement many things that we would have liked to hear, one of which was community care. How much money is being allocated to community care--or is it now called care in the community, or hidden within some other nondescript phrase?
Mr. Lang : It was announced some time ago that the care in the community budget will be £41 million, £5 million more than was being spent in Scotland by other departments, plus a top-up of £20 million from the Scottish Office block, making £61 million. In 1994-95 we are planning for £106 million, and in 1995-96 for £158 million.
Mr. Michael Connarty (Falkirk, East) : Does the Secretary of State really believe that he will get away with the sleight of hand on the housing budget? We have the absurd situation of the Secretary of State giving money to
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local authorities theoretically to deal with homelessness, which means that between now and next March they will be scrabbling around for short-term solutions and buying short-term properties, while the statement announces a cut in real terms in the housing budget. Will the right hon. Gentleman admit to the people of Scotland that he has no long-term way of dealing with homelessness, because he will not give the local authorities the finance that they require to deal with homelessness by providing more homes?Mr. Lang : I have already told the House that the homelessness budget was increased by £7.5 million within the current year, on top of existing resources. As I have also said, the Scottish Homes budget will increase by an extra £31 million next year, a 7 per cent. increase over and above the rise in the cost of living.
Mr. Malcolm Chisholm (Edinburgh, Leith) : Given that the outturn figure for health expenditure this year is £3.64 billion and that the figure announced for next year is £3.75 billion, is it not true to say that the increase in cash terms is barely 3 per cent.? Surely the Secretary of State realises that that is an inadequate figure which does not even cover general inflation, and totally ignores the facts that medical inflation runs at 2 per cent. higher than general inflation, and that 1 per cent. extra is needed just to cover developments in medical technology and the needs of an increasing elderly population.
Mr. Lang : The hon. Gentleman should have heard the figures that I gave earlier. We are increasing health expenditure, plan on plan on the direct comparison, by 1.4 per cent. We do not know what the final outturn will be in the current year, which we are only halfway through, but on present estimates there will still be an increase in real terms, over and above the rise in inflation, of 0.6 per cent.
Dr. John Reid (Motherwell, North) : May I impress on the Secretary of State the desperate need for continued investment in Lanarkshire, especially in the Motherwell district? Although I and others welcome the increase in capital allocations for 1991-92, does the Secretary of State recall that those allocations were made before the closure of Ravenscraig? Will he examine with sympathy the case that has been presented for the five -year development plan by Motherwell district council? In that context, can he make a statement about progress on the upgrading of the A8 to motorway status? He will recall that, for very good reasons, the upgrading was postponed earlier this year. He promised that he would make a statement before Christmas.
Mr. Lang : We hope that the A8 may feature in the roads programme. The hon. Gentleman will be pleased by the upgrading of the A74, which should be close to being two thirds completed by the end of the next financial year. That will be of major importance to not just Lanarkshire but the whole of Scotland.
Mr. George Foulkes (Carrick, Cumnock and Doon Valley) : Will the Secretary of State and his sycophantic acolytes come away from the Westminster world into the real world? If he does, he will see that the Ayr sewerage scheme is delayed because of his cuts, that the bypasses in my constituency are further delayed because of his cuts, and that Scottish Homes cannot put money into Dailly and Drongan because of his cuts. Does he realise that,
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unless he gives an assurance that all those projects will go ahead in the coming year, his pretence to act as Santa Claus will wear thin?Mr. Lang : The hon. Gentleman could not have been listening to a word I said. Over the next three years we will spend £728 million on water and sewerage. If the hon. Gentleman had listened to all the other increases in real terms that I announced across the range of programmes, he would have recognised that the extra £1 billion expenditure in Scotland for 1993-94 offers a real opportunity for progress.
Mr. Nigel Griffiths (Edinburgh, South) : Does the Secretary of State recognise the despair that the statement will cause in hospital wards throughout Scotland? In those wards nurses are so stretched that they are unable to take tea breaks, recovery is inadequate and patient health is at risk. Why will the Secretary of State not act on those matters?
Mr. Lang : The action that I will take is to say to the hon. Gentleman that this Government, with their 47 per cent. real-terms increase in health expenditure, have recruited hundreds more doctors and thousands more nurses than were employed by the Labour Government. The contrast between our achievements and the Labour Government's record of cutting nurses' wages and capital expenditure on the health service is dramatic.
Mr. Sam Galbraith (Strathkelvin and Bearsden) : The Secretary of State said that £728 million will be available for sewerage over the next three years. How much of that money will be given to the Kelvin drainage scheme? Unless that scheme in my constituency is started immediately, we will not be able to fulfil the EC regulations.
Mr. Lang : I note the hon. Gentleman's representation. The matter will be borne in mind when it comes to apportioning resources.
Mr. Jimmy Hood (Clydesdale) : Does the Secretary of State accept that not one penny extra in real terms will be spent on housing, employment and health care? Unemployment will still incease in Clydesdale ; the homeless will receive a poorer service from local agencies ; and hospital lists will continue to grow. Is that not the effect of the statement? Frankly, it is a disgrace.
Mr. Lang : The hon. Gentleman is wrong on all three fronts. The budget for the enterprise and environment functions of Scottish Enterprise will increase by 11 per cent. in real terms ; the budget for Scottish Homes will increase by 7 per cent. in real terms ; and the overall health budget of £3.75 billion will increase by 1.4 per cent. in real terms.
Mrs. Margaret Ewing (Moray) : In the context of the budget for roads and transport, when will the Secretary of State be able to advise regional authorities of their allocation? That is especially important to those of us in the north-east and in the highlands of Scotland where communications are vital, especially against the background of the single market. Will there, for example, be additional funding to ensure the Fochabers bypass on the A96? Will the west highland railway line continue? Will the
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Secretary of State go out fighting to ensure that Objective 1 is secured for the highlands and islands as that would have major implications for the infrastructure?Mr. Lang : I am glad to be able to assure the hon. Lady that we are proud of our record of increasing trunk roads expenditure by 75 per cent. over the past five years, which is a 35 per cent. real terms increase. I hope that the A96 will be able to feature in our substantial roads programme over the next few years. I am glad to be able to assure the hon. Lady that the ferry schemes for the highlands and islands should be able to be maintained at the planned level of expenditure.
Mr. Barry Porter (Wirral, South) rose--
Madam Speaker : Order. I did not see the hon. Gentleman in the Chamber during the statement. Do I understand that he was in the Chamber?
Mr. Porter : I was, Madam Speaker. I do not think that you were looking. I was here throughout the statement.
Madam Speaker : I accept what the hon. Gentleman says as he is an honourable gentleman.
Mr. Porter : I am very much obliged to you, Madam Speaker. I came here under the naive impression that I was a Member of the United Kingdom Parliament--
Madam Speaker : Order. All hon. Members have a right to ask questions. I insist that, before they do so, they should have been in the Chamber and have had the courtesy to hear the statement. That applies in all cases.
Mr. Porter : I would not disagree with that statement, as you know, Madam Speaker.
Does the Secretary of State agree that, whatever he offers by way of public expenditure in Scotland, it is never enough and will never be enough for the Opposition? Does he also agree that the north-west of England deserves something similar? The north-west has twice the population of Scotland-- and, on the evidence available, twice the intelligence.
Mr. Lang : I suspect that my hon. Friend is right in pointing out that, whatever we announced, it would not be enough for Opposition Members. This is a substantial increase in resources. We have directed it towards programmes that will bring maximum benefit to Scotland's economic prosperity.
Mr. Tam Dalyell (Linlithgow) : In all the agonies with the Public Expenditure Survey Committee round and the tight financial position that he faces, has it ever occurred to the Secretary of State that he could make a considerable saving? What is to be the cost of all the proposed local government reform? Would not it be better to say to Eastwood district council, which is the tail that is wagging this dog, "Forget it."? The rest of us cannot face the added financial burden and all the problems that my hon. Friends have described of yet another change in local government reform. It is all about the Under-Secretary of State, the hon. Member for Eastwood (Mr. Stewart). He should be told that he is wrong.
Mr. Lang : Far from adding to the cost of local government, the evidence suggests that the reform of local government to a single-tier structure will generate substantial savings which could be as high as £200 million a year. However, I am sure that the hon. Gentleman will
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be pleased to know that we have managed to increase the arts budget next year, in spite of the costs that we bear in various areas, which will enable the new museum of Scotland to go ahead. We have also been able to authorise the extension to the herbarium and library at the Royal Botanic gardens.Mr. McLeish : The discussion has been interesting and has shown a number of things. Will the Secretary of State now concede that there will be massive cuts in the training budget of Scottish Enterprise? Will he acknowledge that his statement means cuts in the road programme, cuts in industry, cuts in housing and cuts in other environmental services? Will he accept that, despite his trying to create today an illusion of progress, he has failed? Will he now accept that there is a real programme of work to be addressed which simply is not included in the statement?
Mr. Lang : I said that figures were not the hon. Member's strong point. They are palpably his weak point. The roads programme, far from being cut, has been increased by 2 per cent. in real terms. The industry budget is broadly where it was with the enterprise and environment components increased by 11 per cent. in real terms. The Scottish Homes budget is being increased by 7 per cent. in real terms. On the question of other environmental services, he might like to know that Scottish Natural Heritage and Historic Scotland budgets are both being increased by 5 per cent. in real terms.
This is a programme which is carefully targeted to generate the maximum advantage and improvement of public services in Scotland and the delivery of economic growth and the creation of new jobs in Scotland. I am confident that it will deliver its objectives.
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Cammell Laird
4.31 pm
Mr. Frank Field (Birkenhead) : I beg to ask leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter that should have urgent consideration, namely,
the proposed closure of Cammell Laird.
It is specific because only hours ago men and women who work there were told that their ranks would be attacked by wave upon wave of unemployment until July next year when the yard will close. It is urgent because Cammell Laird is the foothold to the future, not just for my constituents in Birkenhead, not just for those who live in Merseyside, but in the north- west region generally. Without that centre of skill that foothold to the future will be denied to us.
It is important to remind the House that already in my constituency and that of my hon. Friend the Member for Wallasey (Ms. Eagle) some areas already have an unemployment rate of 40 per cent. If this proposed closure goes through those rates will be compounded and it is an important matter because Cammell Laird is to British industry what a barium meal is to X- ray. It can highlight those aspects of national life which are life- threatening.
Today we are not only fighting for our jobs, but we fight to prevent another hammer blow against British industry. I seek the Adjournment of the House so that I and the friends of Cammell Laird in the House may begin the debate today and make a plea that the assets of this shipyard, which were bought from us taxpayers for a single pound, be returned and, secondly, that some of the very substantial profits that Vickers Shipbuilding and Engineering Ltd has made in the past five years should be given as an endowment fund for a new company at Lairds.
We want in that debate to set out how we wish to attract the entrepreneurial skills so that there is a future rather than an end for Cammell Laird. We should like the opportunity in that debate to invite the Government to say how they would support us in that endeavour.
I do not need to remind you, Madam Speaker, representing the constituency that you do, what it is like for workers to be part of an industry and a firm that is dying around them. Today Cammell Laird has been told that it should quietly die in July. We have no intention of accepting that option. We seek your leave to move the Adjournment so that we can debate what that future will be. We believe it is right that that debate should take place and our plan for action given.
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