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Highlands and Islands University

6. Mrs. Ewing: To ask the Secretary of State for Scotland if he will make a statement on the progress of the establishment of a highlands and islands university. [21324]

Mr. Michael Forsyth: Since I gave my answer to the hon. Lady at the Scottish Grand Committee meeting in Inverness, officials have been engaged in a wide range of meetings with a number of people. They are now considering the steps that need to be taken to establish a university of the Highlands.

Mrs. Ewing: We welcome the progress that has been made since that statement, but will the Minister tell us what hurdles have been overcome in terms of meeting the criterion for the millennium fund? I understand that some £38 million may well be allocated to a highlands and islands university project through that fund. I also

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understand that the Minister is meeting officials next week to discuss the matter. Will he tell us what issues need to be investigated and studied? We are all very keen to have the university, which could create about 700 direct and 400 indirect jobs and inject £70 million per annum into the highlands and islands economy.

Mr. Forsyth: I appear to be in the embarrassing position of finding that the hon. Lady knows more about my diary for next week than I do. If she tells me that I am to attend such a meeting, I can only assume that that is correct. The hon. Lady is right: at least one application has been made to the Millennium Commission, and a second application is now before the commission. Such decisions are taken independently of me, but I assure the hon. Lady that we are considering all the options and that I am applying all my energy and enthusiasm to make the project a reality--just as I did in the case of the splendid hospital which was established in her constituency when I was last in the Scottish Office. If we can create a partnership, I am sure that it will benefit the highlands and Scotland as a whole.

Mr. Matthew Banks: Does my right hon. Friend agree that the number of students entering higher education in Scotland has more than doubled since 1980-81, and that since then those students have made a major contribution to Scottish industry, particularly Scottish high-tech industry?

Mr. Forsyth: Higher education is an example of that success and Scotland has taken the lead in the use of technology as a means of teaching and of encouraging learning. That is the opportunity that the university of the highlands project represents. It is a way of creating a new style of university that draws on the technology of the next century. It will create opportunities to study for people in areas with widely spread communities and low populations in a way that has been pioneered by the gaelic college in Skye. There are great opportunities for Scotland to lead the way in this field, as in so many others.

Dr. Bray: In the context of the extension of higher education facilities in Scotland, the Secretary of State is aware of the proposal by St. Andrews university and Lanarkshire development corporation for the establishment of a university college in Lanarkshire on the Ravenscraig site. Will he confirm that he would encourage a proposal on those lines from Scottish Enterprise or Lanarkshire development corporation?

Mr. Forsyth: The hon. Gentleman raises an issue that I do not think is directly related to the university of the highlands. However, I am aware of his constituency interest in this matter and I shall certainly write to him about the matter.

Mrs. Ray Michie: The Secretary of State will be aware that Dunstaffnage marine laboratory in Argyll hopes to be part of this exciting new highlands and islands university. He will also be aware that we hope to attract students from all over the place, including Northern Ireland. How will he help such students to get to Argyll? When will the Campbelltown-Ballycastle ferry link be established?

Mr. Forsyth: As the hon. Lady knows, this is a complex and difficult issue and I am still awaiting advice

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from officials. If I can show the ingenuity that the hon. Lady has shown asking a question about a ferry service on a question about the highlands and islands university, I am sure that we will be able to overcome some of the difficulties that have been identified.

As the hon. Lady knows, I should like such a service to be established. There are difficulties with viability, but these matters are being addressed by officials. As soon as I have received the advice, which I understand is imminent, I shall certainly look at it with a view to being helpful to the hon. Lady. [Hon. Members: "Oh."] This is a serious matter and I shall try to be helpful to the hon. Lady and to many others who have expressed an interest in it, not least many of the hon. Members who sit behind the hon. Lady.

Mr. Macdonald: Will the Secretary of State confirm that £6 million has been cut from the training budget of Highlands and Islands Enterprise and that further education colleges in the highlands and islands face a severe funding crisis because of Government cuts? Is there not a contradiction between his rhetoric supporting a university and the reality of cuts on the ground?

Mr. Forsyth: There was a contradiction in what hon. Members said only a matter of weeks ago, when they argued for more of the money that is provided under the local government formula, which could only be at the expense of the Scottish Office block, and then complained about reductions in that block because money had been used to fund Labour-controlled councils throughout Scotland. Scottish Enterprise has given undertakings that it will meet its training output on a reduced budget, and I see no reason why Highlands and Island Enterprise should not be able to do the same.

Electronic Goods Exports

7. Mr. Congdon: To ask the Secretary of State for Scotland what assessment he has made of the trend in Scottish exports of electronic goods over the last five years; and if he will make a statement. [21325]

Mr. Kynoch: Over the past five years, Scotland's exports of electrical and electronic engineering have nearly trebled to reach a value of £2.122 billion in 1994.

Mr. Congdon: Can my hon. Friend confirm that that is reflected in employment in the Scottish electronics industry, which has increased by 5 per cent. since 1984, and that employment in electronics manufacturing in Scotland accounts for 13 per cent. of all manufacturing jobs in Scotland? Does not that demonstrate the success of the Government's policies in stimulating an enterprise culture and competitiveness in the Scottish economy?

Mr. Kynoch: Yes, I agree with my hon. Friend. In fact, not only do they do that, but they have contributed significantly to the change in the economy of Scotland, where traditional industries that have gone through difficult times have been replaced by a significant electronic sector. That sector is growing and is aided by inward investment, which is attracted by the highly competitive nature of the environment in which we work and live under the Government in Scotland.

Dr. Reid: Given that, a few moments ago, the Secretary of State asked us all to pull together and not to undermine

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industry in Scotland, will he take the same ordinance to heart? In future, will he stop undermining the possibility of future inward investment in Scotland with his puerile scares about a Scottish Assembly? Would he not do better to take the advice of Neil Hood, former director of Locate in Scotland, and now head of the Strathclyde international business unit, who said that there is no prima facie case that devolution in Scotland will affect inward investment? Least of all, will the right hon. Gentleman stop attempting to use petty party political points, which undermine future investment in Scotland, when he and his colleagues are at the same time demanding that everyone else should follow that stricture when it comes to beef?

Mr. Kynoch: I am disappointed in the hon. Gentleman, who I considered to be a fairly responsible Member, given the co-operation he gave me when discussing the unfortunate incident at Cummins. I shall, however, continue to ensure that everyone in Scotland is well aware of the implications of the tax proposals put forward by the Opposition parties--

Dr. Reid: There he goes, deterring investment again.

Mr. Kynoch: The hon. Gentleman does not like hearing it because he believes that a drop in competitiveness will not affect industry in Scotland.

I believe, however, that it is clear that, if Scotland became the highest taxed part of the United Kingdom, and if the tartan tax were applied by the Opposition parties, Scottish industry would become less competitive and therefore not succeed. That would be bad for employment in Scotland and, as the hon. Gentleman knows, make it much more difficult for Scotland, in competition with other parts of the United Kingdom, let alone other parts of Europe, to attract inward investment to Scotland and Lanarkshire, which is near to his heart.

Mr. Stewart: Would my hon. Friend pay tribute to the management and work force of those Scottish companies that have achieved enormous success in the production and export of personal computers, automatic banking machines and workstations? Does he also agree that there is additional and considerable potential to improve Scotland's exports of software?

Mr. Kynoch: Yes. My hon. Friend is right to refer to the significant contribution made by the many employees in the electronics industry. Their productivity gains and commitment to their companies have contributed significantly to the success of those companies. My hon. Friend is right to talk about improving the export of software. Certain initiatives have already been taken and there has been a good exchange between Virginia and Scotland and Scotland and Virginia, with inward missions going both ways, and good co-operation on successful joint ventures in the interests of the industry. I hope that that will be encouraged. I also hope that future initiatives will be taken under the Scottish export strategy, known as international challenge, which I launched last year, to ensure even greater success in that important sector of business.


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