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Rev. Ian Paisley: Will the Minister assure the House that he will meet Causeway trust members and converse with them?
Mr. Moss: I have already given that assurance to the hon. Gentleman and to the hon. Member for East Londonderry. I am more than happy to meet Causeway trust members. They have not asked for a meeting at this stage, but my door is always open to any trust board members who wish to talk to me.
In determining the way forward, I assure hon. Members that I hear and understand their concerns and those of their constituents. They can be sure that I shall give them due weight in the weeks ahead.
It being Two o'clock, the motion for the Adjournment of the House lapsed, without Question put.
Sitting suspended, pursuant to Standing Order No. 10 (Wednesday sittings), till half-past Two o'clock.
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For Barnsley, East, in the room of the hon. Terry Patchett, deceased.--[Mr. Dewar.]
Mr. Secretary Forsyth presented a Bill to confirm a Provisional Order under section 7 of the Private Legislation Procedure (Scotland) Act 1936, relating to Scottish Borders Council: And the same was read the First time; and ordered to be read a Second time on Tuesday 26 November and to be printed. [Bill 13.]
Mr. Secretary Forsyth presented a Bill to confirm a Provisional Order under section 7 of the Private Legislation Procedure (Scotland) Act 1936, relating to Western Isles Council: And the same was read the First time; and ordered to be read a Second time on Tuesday 26 November and to be printed. [Bill 14.]
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1. Mr. Dykes:
To ask the Secretary of State for Scotland what investment from abroad has been attracted to Scotland in 1996 to date. [3459]
The Parliamentary Under-Secretary of State for Scotland (Mr. George Kynoch):
Record levels of investment have been attracted to Scotland in 1996.
Mr. Dykes:
What conclusion does my hon. Friend draw from those record levels, from the forthcoming announcement about the massive Hyundai project and from the general outlook for economic activity and tax matters?
Mr. Kynoch:
I think that my hon. Friend meant the recent and not the forthcoming announcement about Hyundai. The Hyundai project has already been announced, and it is excellent news for the Dunfermline area. There will be 2,000 new jobs and inward investment of £2.4 billion, which is the largest ever in Europe.
My hon. Friend is right--companies come to Scotland because it is a competitive, low-tax country. The Opposition's proposals will be bad for inward investment: whether it be their spending pledges, which it is reckoned will increase taxation by 9p, the extra 3p that they intend to impose through a tartan tax, their proposals for a uniform business rate, which will be an extra tax on business, or their trade tax. We would not continue to attract the record levels of investment that we currently enjoy under the Government.
Mr. Maxton:
Does the Minister seriously expect the House to believe that investors who come to Scotland do not know full well that Labour will win the next election, and that we shall establish a Scottish Parliament with tax-raising powers? If that is so, why are they not put off coming?
Mr. Kynoch:
The hon. Gentleman should give inward investors a little more credit than that. They possibly look a little further ahead. They do not believe that the Labour party will win the next general election: they believe that the Government, with their beneficial policies for business and for the economy in Scotland, will continue for many years to come.
Sir Hector Monro:
On the matter of incentives, does my hon. Friend agree that it is right to bring it home to the House and to Scotland that no one would want to come to a country where income tax was 9p higher, the tartan tax was 3p and where there was an unknown trade tax, all of which have been proposed by Labour? Those proposals must be the biggest disincentive for anyone to come to Scotland that there has ever been.
Mr. Kynoch:
My right hon. Friend is right. Businesses are concerned about their competitiveness. All businesses must exist in a highly competitive marketplace, so
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Mr. Wallace:
The Minister has talked, not unreasonably, about the jobs that we already secure from inward investment. How does he feel about the threat of what might be described as predatory investment by Norwegian salmon farming companies in Scotland, which might buy up Scottish salmon farms? Those farms are made less viable by the currently plummeting price of salmon.
I accept that the Minister's colleagues in the Scottish Office appear to have been batting for the salmon farming industry, but their view does not seem to be shared throughout Government. What prospect can be offered to the salmon farmers of a minimum import price in the near future, so that they can try to secure the home-based Scottish industry that is so vital?
Mr. Kynoch:
The hon. Gentleman is absolutely right. Salmon farming is an important industry, particularly in the highlands and islands. My right hon. Friend the Secretary of State is already discussing the matter with colleagues, and my hon. Friend the Member for Aberdeen, South (Mr. Robertson)--the Minister responsible for fisheries--is going to Norway on Monday to discuss issues relating to the salmon farming industry.
Mr. Gallie:
What proportion of inward investment comes into Scotland through private finance initiatives? If the PFI relating to the new Scottish air traffic control centre were accepted, would that not increase inward investment further?
Mr. Kynoch:
As a firm advocate on behalf of both Ayrshire and Prestwick, my hon. Friend knows only too well that we have recently had significant success with Rohr's investment in Prestwick. We continue to hold discussions with British Aerospace in Prestwick, to ensure that it is given all the support that it needs to develop further. I know that my hon. Friend is also a firm advocate of the air traffic control centre at Prestwick, and I am sure that my colleagues in the Department of Transport are well aware of his concerns.
Mr. Hood:
Is it not the case that, although the Government have 11 per cent. support in Scotland and trail Labour by over 20 per cent. in the United Kingdom, we still have an increase in inward investment? Could it be that those who have invested in Scotland consider their investment worth while because of the impending Labour Government and Scottish Parliament?
Mr. Kynoch:
I must tell the hon. Gentleman to dream on. As I have said, there is no doubt that businesses that look to Europe and the United Kingdom for investment potential take into account the competitive circumstances that they can enjoy in Scotland. Clearly, anything that is likely to put that in jeopardy--such as higher taxation in Scotland, which is an inevitable consequence of the
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Mr. Beggs:
Does the Minister recognise that the prosperity of Dumfries and Galloway has a considerable impact on the Northern Ireland economy? Can he assure us that the region is given equal prominence as a suitable location for new inward investment in Scotland?
Mr. Kynoch:
I can assure the hon. Gentleman that all areas are given equal attention by Locate in Scotland when it comes to inward investment. The decision where to locate is made by inward investors themselves, and they will inevitably consider their individual circumstances in judging where they will find the skilled labour force that they may be seeking, and where they will secure the best access to their marketplace or suppliers. Nevertheless, I can tell the hon. Gentleman that no part of Scotland is not promoted by Locate in Scotland; the whole of Scotland is promoted, and long may that continue.
2. Mrs. Ewing:
To ask the Secretary of State for Scotland when he will make an announcement on the route of the A96 Fochabers bypass. [3460]
The Secretary of State for Scotland (Mr. Michael Forsyth):
I have been reading the hon. Lady's local newspaper, the Northern Scot. I see that she has been saying one or two rude things about the Government, and me in particular, with regard to this subject.
Mr. Canavan:
That is what she is paid for.
Mr. Forsyth:
I am not sure that that is what she is paid for. She is paid to make representations on behalf of her constituents, which she does with considerable vigour. I am delighted to tell her that I shall be publishing a line of route for the bypass, and that I have now decided on a northern route for the town.
Mrs. Ewing:
I welcome the Secretary of State's decision, but why has the Scottish Office taken some seven months to analyse the 700 responses from my constituents in connection with the Fochabers bypass? In the Scottish Office, there has been a bottleneck as tight as the traffic bottleneck in Fochabers. When will the work commence, because what is important is not just his decision but the commencement? After 20 years of campaigning for the bypass, why cannot we have it before the millennium?
Mr. Forsyth:
All that I can say to the hon. Lady is that officials' advice on the matter reached me this morning and I took the decision immediately so that I could give her the answer that no doubt accounts for the smile on her face.
20 Nov 1996 : Column 962
On the construction of the project, the hon. Lady will know that officials will now have to work up design proposals, in consultation with the local community. We shall then have to publish the draft orders. I assure her that that will be done as speedily as possible.
Mr. Bill Walker:
Does my right hon. Friend agree that the news of the Fochabers bypass is welcome and that it involves much public money? Does he recognise that the new hospital in Elgin, costing about £30 million--
Madam Speaker:
Order. It is a good try, but the question is on the Fochabers bypass. I know Scotland rather better than the hon. Gentleman thinks that I do. Let us stay with the Fochabers bypass.
Mr. Walker:
My point is directly linked to the Fochabers bypass because the funds available for the bypass would not be available under Scottish National party proposals to renationalise the bus industry, Skye bridge and Railtrack. Does that not demonstrate the SNP's fairy tale economics?
Mr. Forsyth:
There is a link between Dr. Gray's hospital in Elgin and the bypass in so far as one leads to the other if one travels in the right direction. Both are projects for which the hon. Member for Moray (Mrs. Ewing) has campaigned. I have had the pleasure over the years of being able to announce approval for both projects because we are part of the United Kingdom and of the Union and therefore are able to afford that.
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