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School Language Assistants

Mr. Maclennan: To ask the Secretary of State for Scotland how many local education authorities have withdrawn foreign language assistants from secondary schools on grounds of financial constraints. [39115]

Mr. Raymond S. Robertson: Twelve Scottish local authorities have decided to not employ foreign language assistants for their schools for 1996-97. The reasons for this are entirely a matter for the authorities concerned.

Drugs Offences

Mr. Cox: To ask the Secretary of State for Scotland what was the number of (a) men and (b) women convicted by courts of drug offences in Scotland during 1995. [39221]

Lord James Douglas-Hamilton: The information requested for 1995 is not yet available. The information for 1994 can be found in tables 6(a) and 6(b) of the Scottish Office statistical bulletin "Criminal Proceedings in Scottish Courts, 1994", a copy of which was placed in the House of Commons Library.

Northern Isles Freight

Mr. McKelvey: To ask the Secretary of State for Scotland when he plans to respond to the Scottish Affairs Committee report into the removal of tariff rebate subsidy on northern isles freight. [39634]

Mr. Michael Forsyth: The Government welcomed the Committee's study of this subject and has considered the report very carefully. A command paper responding in full to the report will be presented to Parliament after the recess. We fully recognise, however, the importance of this issue to the island communities of Orkney and Shetland; and therefore wish to indicate now the nature of the Government's response on the key recommendations made by the Select Committee.

We welcome the Select Committee's acceptance of the Government's conclusion that the tariff rebate subside scheme was flawed and that there was a need therefore to consider other forms of subsidy. We also welcome its

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endorsement of the importance that the Government attach to the current competitive tendering exercise for a lifeline passenger service in the northern isles. We note that it has not argued that the reintroduction of subsidies for the carriage of general freight has a place in a satisfactory long-term regime. These conclusions correspond closely to the Government's analysis of the position.

I promised, following the decision to withdraw freight subsidies, that we would ensure that the effect of withdrawal was monitored and reviewed. We have done so by listening to representations made to us and considering evidence put before us. In response to that and to the Select Committee's report, the Government propose to make four changes to policy. These are:


In addition, we are able to give two assurances which the Select Committee sought. These are to confirm that:



    the tendering process for the lifeline service enables bidders to present alternative options to the present pattern of service; and
    there is no obstacle, in principle, to the successful bidder for the contract applying, through a public sector sponsor, for European regional development fund assistance towards vessel replacement.

The inclusion of peak period livestock capacity within the contract for the lifeline passenger service, which will carry accompanied cars and freight as well as passengers, means that the contract will cover all of the categories of traffic which the Select Committee recommended should be included within the definition of a lifeline service, although the Government remain of the view that the lifeline service is properly defined by reference to the need for passenger ferry services.

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The Government have been unable to accept some of the Select Committee's recommendations. We have been unable to reconcile several of the conclusions of the Select Committee with the need for a tendered contract for the lifeline services, which the Select Committee has endorsed, and with the Government's wish to respond urgently to the Select Committee's criticism of the present regime, by putting the tendered contract in place as soon as possible. The Select Committee's recommendation that tariff rebate subsidy be reintroduced for general freight on a temporary basis, despite its conclusion that there is no medium-term need of subsidy for such freight, would have a detrimental impact on the tendering of the lifeline services passenger ferry contract. The Committee's recommendation that the Kirkwall--Invergordon route should be separately tendered to carry freight and livestock would also have a detrimental effect on the tendering of the lifeline contract, and would place other freight carriers operating in the locality at a commercial disadvantage.

The likely adverse impact on the tendering exercise for the lifeline passenger service is also part of the reason that the Government do not accept the recommendation that CalMac be involved in the provision of services in the northern isles. Other important considerations are that it would constitute an unacceptable transfer of risk to the public sector; and would entail very substantial increased costs to the taxpayer to finance vessel procurement.

We regard the Select Committee's proposal for separate public sector procurement of vessels as unnecessary, in the light of the assurance given about eligibility of vessel replacement by private sector operators for European regional development fund assistance; and the proposal is also subject to some disadvantages.

In reaching these decisions, the Government's overriding objective remains to secure an unprecedented long-term guarantee to ensure the continuation of lifeline services to Orkney and Shetland, which are essential to the economic and social welfare of the islands, through a competitive tendering process which should command confidence that the subsidy level does not provide scope for cross-subsidy of freight operations. The additional measures announced today seek to provide help to four key sectors of the economy of the islands:


The Select Committee has rightly made the point that the purpose of subsidy arrangements is not to benefit the

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operators of shipping services. Nevertheless, these measures should have a beneficial effect on the volume of business in the market and thus indirectly improve trading conditions for all operators. I believe that the overall effect of the measures set out above will be a significant further economic and social benefit to Scotland's islands communities.

Inward Investment

Mr. Hardy: To ask the Secretary of State for Scotland if he will list the 10 largest industrial or commercial developments in Scotland which resulted from inward

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investment since 1993; and, in each case, what estimate he has made of the number of jobs created and the average cost to public funds of each of these jobs. [37636]

Mr. Kynoch [holding answer 18 July 1996]: All our dealings with inward investors are undertaken on a commercially confidential basis and we do not therefore publish details of individual projects except in cases where details of the project have been announced by the company itself. The table contains details of the 10 largest inward investment projects--in terms of planned new jobs--which have been attracted to Scotland since 1 January 1993 and which have been the subject of public announcements:

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Published figures for:
Date of announcementCompany Location Type of project Planned investment (£ million)Planned new jobsRSA (£ million)
April 1994International Components CorporationEast KilbrideNew Project6.04002.05
September 1994NEC Semiconductors (UK) Ltd.LivingstonExpansion530.04307.0
October 1994British Sky BroadcastingDunfermlineNew project10.01,0006.0
February 1995Meric International CorporationIrvineNew project8.04503.4
August 1995British GasEdinburghNew project(36)--500Nil
August 1995MotorolaBathgateExpansion(36)--4007.0
September 1995TSBGlasgowNew project15.0900(37)--
October 1995Lexmark InternationalRosythNew project26.0500(37)--
November 1995Chunghwa Picture Tubes Ltd.MossendNew project260.03,300(37)--
July 1996Lite-On TechnologyMossendNew project40.01,031(37)--

(36) Not published by company.

(37) Not yet published.


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Details of the financial assistance offered to inward investors are commercially confidential. All such assistance complies with the rules of the relevant schemes and with EC state aid rules. The principal form of assistance offered in support of inward investment projects is regional selective assistance and where the amount offered is £75,000 or more, the total amount offered is published in "Labour Market Trends" in the quarter after the first instalment of grant is paid. Where such publication has already taken place, the relevant figure is included in the table.

Most of the above projects are still in the process of being implemented and up-to-date information on the number of new jobs so far created by them is not held centrally.


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