Government Regional Policy

Part of Opposition Day – in the House of Commons at 4:20 pm on 27 October 1986.

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Photo of Mr Ian Lang Mr Ian Lang , Galloway and Upper Nithsdale 4:20, 27 October 1986

I think that regional policy is succeeding in giving better value for money to the taxpayer and in directing help to the areas where it can be more productive in job creation.

Any scheme of incentives, however well designed, must be judged by how it works in practice. We now have two years' experience of the new policy, and clear evidence that it is working, helped no doubt by our decision to strengthen our "one-door" approach in Scotland with the transfer of the administration of regional development grants in Scotland from the Department of Trade and Industry to the Scottish Office. In Scotland alone, some 3,250 projects have been approved for regional development grant since the new scheme was introduced. That represents an investment of around £450 million leading to the creation of over 29,000 jobs.

As for the lurid predictions of doom and disaster with which the announcement of changes in the policy were greeted two years ago, it has not happened. Economic recovery has continued. New companies are springing up with a net increase of 1,400 in Scotland last year, and no fewer than 50,000 more Scots are in work than at the last election. Scotland continues to rise in the gross domestic product league table and now lies third, compared with eighth 15 years ago. Our output and productivity, particularly in manufacturing industry, continue to rise faster than in the rest of the United Kingdom and average Scottish male manual earnings are now second only to the south-east of England.