North Ayrshire (Unemployment)
We now move to members' business. The debate on S1M-208, in the name of Michael Russell, on unemployment in North Ayrshire, will last 30 minutes. [Interruption.] I ask members to leave quietly to allow Michael Russell to introduce his debate.
Motion debated,
That the Parliament notes that the September unemployment figures for North Ayrshire confirm its position as the second worst unemployment blackspot in Scotland and seeks the urgent attention of the Scottish Executive, the Scottish Parliament, and North Ayrshire Council to address the human and economic crisis that exists in this part of Scotland.
I could speak in a raised voice until members have left, but I will not do so.
I am grateful for the opportunity to raise my concerns about the problems of unemployment in North Ayrshire. The sponsoring of a debate such as this, however, is a mixed blessing. I was alarmed, not to say frightened, to receive in the post today an envelope that was franked with the words "Beattie Media". I opened the envelope in the presence of a number of witnesses whose names and addresses have been provided to the Standards Committee.
Inside the envelope was a press release about Enterprise Ayrshire's involvement in the Investors in People awards. On the basis of that press release, I have a word of advice for businesses and organisations in North Ayrshire: they should not put their trust in spin and Beattie Media. The fourth paragraph says:
"ALERT has joined the x (fill in number here) organisations in Ayrshire that have achieved investors in people status".
That shows us Beattie Media at its best.
It tells us something about the state of public bodies in Ayrshire that many of them rely on spin, not substance, in tackling the issue of unemployment. Unemployment is a human issue, not an abstract issue or a matter of statistics or press releases. There are families in North Ayrshire today who, by the end of the week, will have discovered that their breadwinner no longer has a job and who will be facing the immediate future and Christmas without any money. That is the reality of unemployment. This Parliament has to address the real issues, not spin and hype.
The reality in North Ayrshire does not make pleasant reading. A huge number of problems faces the economy of the area. The jobs base is declining with the decline of traditional manufacturing industries. Official sources confirm that. The demise of Irvine's new town status has left unresolved economic problems. There is an underdeveloped service sector. There is below- average participation in self-employment and start-up businesses. There is underperformance in the attainment of educational qualifications. The skills training that is available is skewed towards lower- skilled occupations. Of the 12 major local enterprise companies in Scotland, the one in Ayrshire fared second worst in terms of job losses between 1991 and 1996, and the situation has got worse.
As the motion states, unemployment in North Ayrshire is the second worst in Scotland. Although Scotland's employment levels are gradually rising, unemployment for the whole of Ayrshire is expected to fall by 1 per cent, and the situation in North Ayrshire is worse than that. Compared with the Scottish economy as a whole, North Ayrshire is under-represented in service industries and financial services—two big growth areas, internationally—and in tourism, particularly high- value tourism.
Although there was a modest national rise in VAT business registrations between 1994 and 1997, in North Ayrshire the figure fell by 4 per cent and there has been virtually no growth in the number of self-employed workers in the area. At the end of 1998, North Ayrshire was the third worst area in Scotland for unemployment; it is now the second worst. The gap between the employment figures in North Ayrshire and those in Scotland as a whole has worsened in the past year. There is only one strategic site for incoming investment in North Ayrshire—Riverside: a site that has had some problems.
Those are huge structural problems to contend with, and the day-to-day difficulties are even worse. Members who are present know what those difficulties are, but I shall recite one or two of them. Since January, there has been the threat of 450 job losses at Volvo. I say with no pleasure that the cynical way in which promises were made to Volvo workers up to 6 May, by the Labour Government, and the lack of action thereafter are a ringing condemnation of previous ministers, if not of present ones. Jobs have been lost at the Caledonian Paper mill. There have been job losses in Beith and Irvine. Jobs have been lost all over North Ayrshire, and it is a continuing process.
We must find the right method to move forward. This Parliament is often criticised by people who say that it should not being doing this and it should not be doing that. The one thing that people always say that this Parliament should be doing is finding ways in which jobs can be secured; finding
ways in which human dignity can be restored; finding ways in which there can be hope. Unemployment in North Ayrshire is a central problem for this Parliament, as is unemployment in every part of Scotland. We must be positive and encourage people to work together.
We must also create the right image for areas that want to grow. That is the subject of a great deal of work. The image of North Ayrshire has not been helped by the front-page story in the local paper last week, which detailed an incident in which one councillor attempted to assault another at a trades dinner. That type of image does not attract anyone. The trouble with North Ayrshire Council is that its image has not encouraged people to come and invest in North Ayrshire.
That is not the sole problem. There are problems of transport infrastructure. In the roads review, tomorrow, we must push for investment in the roads infrastructure in North Ayrshire. I have a terrible feeling that we will be disappointed, but we must encourage that investment and look for action by the key players. Who are the key players? North Ayrshire Council. I am grateful to it for providing information for the debate. I have received some interesting, if rather defensive, information from it. There are good people in North Ayrshire Council, who are trying to attract employers. Unfortunately, their work is hindered by the history of unemployment in the area and by the history of a council that lacks ambition—it is the second worst council in Scotland, according to official figures.
There must be action from the Scottish Executive. In spite of the image of Lord Macdonald of Tradeston—when he was responsible for employment—and that other professional mummer for jobs in Scotland, Brian Wilson, constantly wringing their hands over unemployment, nothing was done by the previous Administration. I look forward to Nicol Stephen telling us today of things that will be done. I would have been delighted if he had leaked that information to the press before the debate—he must be the only minister who has not done so. Let us have an announcement on action.
In this Parliament, what can we do? We can come forward with ideas—and there are many ideas. We can lodge motions to back up those ideas and we can, as members of this Parliament, with honest intention say, "This is not good enough." We can put the spotlight on the failure to achieve in North Ayrshire and we can encourage the relevant bodies to do so. Following today's debate, I would like there to be another summit in North Ayrshire, which would involve all the MSPs, all the relevant ministers and all the organisations in drawing up an agenda and an action plan for employment in North Ayrshire. If we start that process—if we try to work together—we can make a difference. However, there will be an awful price to pay if we do not make a difference.
The statistic that North Ayrshire is the second worst area for unemployment in Scotland is, as I said at the start of the debate, much more than a statistic: it is an indication of human suffering. More than three people are chasing every job in North Ayrshire. On present projections, that can only get worse. If this Parliament does not take it upon itself to force the issue forward, people will suffer in North Ayrshire year on year, and this Parliament will have let them down.
I welcome the opportunity that has been afforded by the motion to debate again what I consider—along with Mike Russell—to be one of the most important issues that faces the Parliament. I thank him for choosing the subject for members' business.
I would like to be positive, to look to the future, and to look to the good work that is being done to address the unemployment problem. I distance myself in part from some of the references that Mike made to the council, which is an important partner in that process. I do not think that it was helpful for Mike, in making his point, to quote as an official statistic a reference from The Observer, which chose four indicators out of 60.
I apologise to Nicol Stephen and to others who were present last week when we debated regional selective assistance in general and the priority plus scheme in particular, but the correlation between the motions of last week and this week will not be lost on the minister or those members. This is not a single transferable speech, but I will briefly reiterate the plea that I made last week. RSA probably remains the single most important incentive available to companies that wish to set up or consolidate in North Ayrshire. We want the scheme to be applied flexibly in North Ayrshire and, in particular, we want the additional advantages of the priority plus scheme to be marketed forcibly to make more people aware of the opportunities that exist.
I would like to mention the prospect of combating the prevailing unemployment by the specific use of the scheme in conjunction with North Ayrshire Ventures, a joint venture company formed by a public-private partnership and launched recently by the minister.
I made passing reference last week—and Mike has done so today—to the importance of RSA spanning the whole range of job creation activities in the eligible areas, including a call centre or fairly basic manufacturing investment. On the need for
the various agencies to work in partnership to create employment, I wish to draw the minister's attention to what Mike and others have referred to in general terms; I want to refer to it in specific terms. In January, a company intends to start on site in Saltcoats to build a 10,000 sq ft office that is aimed at the call centre market. North Ayrshire has not been especially successful in attracting call centre jobs so far. However, the council, working through the joint venture company, in partnership with James Watt College, and allied to RSA priority and a strident marketing campaign by the Executive and Enterprise Ayrshire, stands a fair chance of success.
As Mike mentioned, I think, and as I know others will mention, the involvement of James Watt College and the opening of its campus in Kilwinning add a new dimension to overcoming some of the structural problems that have been mentioned, problems that have beset North Ayrshire for years and left it adrift. Unemployment in the area has been 4 per cent above the national average for the best part of 20 years. The absence of a further or higher education college has been a barrier not only to companies that are relocating their manufacturing base, but to the creation of a knowledge economy for the future. That is now being addressed, which augurs well for the future.
To let others have their say, I will conclude by concurring with much of what has been said about the problems to be addressed. I concur with what others, including my colleague Irene Oldfather, have said before about improving our competitive edge in the job creation market by improving the infrastructure, especially the transport infrastructure, which is an obvious shortcoming, and by improving the local environment, making North Ayrshire a more attractive place in which to live and work. We must also encourage Government agencies, when they are relocating or diversifying, to do so where I live and work, in North Ayrshire.
I thank Mike Russell for introducing the debate. Perhaps his motion underlines the problems of Ayrshire as a whole.
I suggest that anyone looking for the worst unemployment figures in Scotland should go down the Doon valley to the Auchinleck and Cumnock areas, which have real problems. Similarly, in the south of Ayrshire, Girvan has high unemployment. Furthermore, I fully accept that unemployment in Irvine and the three towns—and to an extent in the Garnock valley—is at an unwanted level.
Everyone agrees that the infrastructure, particularly the road network, is a major problem in
Ayrshire. I remember Irene Oldfather referring to that problem when the Scottish arm of the food standards agency did not go to Ayrshire. It was suggested that that happened partly because of Ayrshire's poor infrastructure. When the road structure plan is issued tomorrow, we expect a positive announcement about the M77. Nothing other than the upgrading of the A77 to motorway standard will satisfy members in the chamber today.
However, North Ayrshire is not all bad news—I want to talk up some aspects of the area. Rail services are actually quite reasonable. Glasgow Prestwick international airport is right on the doorstep for companies that want to send goods by air. The airport is fundamentally important to unemployment in North, East and South Ayrshire, as many people work at British Aerospace, GE Caledonian Ltd and other complexes around the Prestwick site. There is hope for the future, and I hope that there will be considerable emphasis on building up the area around Prestwick to everyone's benefit.
Perhaps Ayrshire's rail infrastructure lacks sidings and unloading/offloading facilities. However, there are such facilities at Caledonian Paper, which Mike mentioned; and a deep-water facility at the Hunterston ore complex could bring real advantages to North Ayrshire. I find it sad that my party's Government and the present Government have not fully used that facility.
We can be proud of the nuclear industry in North Ayrshire. Although the Magnox reactors have performed wonderfully for 30 years, their successful decommissioning shows that North Ayrshire has skills and expertise of which everyone can be proud. Furthermore, Hunterston B power station is performing very satisfactorily. As far as the environment is concerned, a report out today demonstrates that CO2 emissions have reached crisis levels, which suggests that a Hunterston C might be possible in the not-toodistant future. That would certainly help employment in the area.
I have to side with Mike about Volvo. I am angry because I know that Volvo had orders that could have been fulfilled expertly and expeditiously in that plant. The workers have been cheated. Perhaps we should examine other aspects of the handling of our economy which, as Mike suggested, damaged Ayrshire's engineering and textile industries at the cost of many jobs.
Mike mentioned the image of North Ayrshire Council. I do not think that it will help if I knock that council. However, the council could improve the image of the situation with the direct labour organisations. I am not being hypocritical about this. I believe that, on occasion, one can pass work out to other bodies to get it done better than
it would be done by individuals employed by the council. In this instance, however, the council should examine the situation and think about how to deal with it fairly.
The previous speakers have given eloquent testimony about the terrible unemployment black spot in North Ayrshire. It is heartening to have cross-party support for the motion. However, although I welcome Phil Gallie's born-again Tory approach to the roads infrastructure and unemployment, I have to warn him that when his press release hits North Ayrshire, he is likely to be given the brass neck of the year award. It will take North Ayrshire some time to forget the damage wreaked by 18 years of Tory rule.
Since the Labour party came to power, its record has also been far from impressive. As Mike Russell said, figures show that over the past year unemployment in North Ayrshire has dropped. It has dropped by 15—not 15 per cent, but 15 people. So much for new Labour's much-hyped new deal. Quite frankly, it is just the same old rotten deal as far as North Ayrshire is concerned. By the time that North Ayrshire Council has put the 40 direct labour organisation workers on the dole and we have taken into account redundancies at Volvo and at P & O, which announced just yesterday that it is to pull out of Ardrossan, the figure of plus 15 will disappear like snaw aff the proverbial.
Many reasons can be given to explain why North Ayrshire has such high unemployment. The three towns area of Ardrossan, Saltcoats and Stevenston can be said never to have recovered from the days when those towns were ICI company towns. ICI had an unwritten deal with central Government and local government that meant that other major companies would be discouraged from setting up in the area of the three towns, so that ICI would have first call on the available work force.
I am old enough—I admit it—to remember boys and girls leaving school and going straight into the Ardeer factory, or the "dinamite" as it was called locally. Many of those who went away to university returned after graduation to work for ICI. ICI has now all but gone and the situation is so bad that North Ayrshire Council is now the largest employer in the area. It is frightening to think that about 6,500 people are dependent for their livelihood on the second-worst local authority in Scotland. The Labour-run council managed to lose £4.4 million last year and is currently slashing services and putting people on the dole in a desperate attempt to avoid a repeat this year.
Other areas of Scotland have suffered similar job losses, and they are faring much better. The major problem in North Ayrshire is the totally inadequate roads infrastructure. Mike spoke about what a businessman would think when he opened the local paper and read of the latest public mêlée among North Ayrshire Labour councillors. Imagine the same businessman arriving at Glasgow airport and making his way by car to view the area in which he might locate his new factory. He has to take the A737, he gets stuck behind a tractor, he soon begins to wonder how he will get his supplies and products in and out of the area and another potential investor is lost.
The situation is not new; it has been going on for many years. At a conference organised by North Ayrshire Council, entitled "North Ayrshire into the Millennium", held prior to the general election and attended by local businessmen, politicians and representatives from enterprise and voluntary organisations, it was agreed that the single most important action that could be taken to make North Ayrshire more attractive to business investors would be the upgrading of the A737.
In opposition, local Labour MPs were vociferous in their condemnation of the Tories for continually refusing to upgrade the A737. Sarah Boyack, the Labour Minister for Transport and the Environment, has now confirmed in a written response to a parliamentary question from me that the Executive has no plans to upgrade North Ayrshire's link to the outside world.
North Ayrshire needs and deserves better. If it is to have any chance of turning round the appalling level of unemployment, it needs an upgraded A737. That requires a rethink on the part of the Executive. It needs more than warm words from those in positions of power. North Ayrshire needs action and it needs it now.
Two more members wish to speak. Under the standing orders, I am obliged to close the debate after 23 minutes, which is about now, unless anyone wishes to—
I move,
That the debate be extended by 15 minutes.
We can agree then that we will continue for perhaps another 15 minutes.
Motion agreed to.
I always welcome the opportunity to discuss my constituency in the Parliament, so I am happy to join colleagues to debate the motion.
Having spent most of my life in North Ayrshire, and been educated, worked, lived and brought up my children there, I know the area and the people well. It saddens me to know that the hardship that has been placed on some people in my constituency is the result of unemployment. However, I am a bit disappointed, as I hoped that we would not get into Labour-bashing and council- bashing but that we would have a constructive debate on the issues.
I was glad to hear Mr Russell repeat many of the points that I made in last week's debate on structural funds and regional selective assistance. I will not reiterate all the statistics, but unemployment in the area remains 4 per cent above the Scottish average. The problem is far more serious than that headline rate; it is chronic and structural, and it is affecting the area. I agree with Mr Russell about the human element. This is not just about statistics; it is about people's lives and aspirations. It contributes to the social exclusion argument and problem.
I believe that employment and employment opportunity are not only goals in themselves, but the route out of the poverty that divides communities. We have heard about the people who have not found work since the closure of the Garnock steel works in 1978 and the haemorrhaging of jobs from ICI. Their impact on our communities cannot be overestimated.
Furthermore, because the overwhelming majority of our exports are generated by firms with more than 200 employees, the economy is extremely vulnerable and sensitive to relocation and will be deeply affected by the proposed closure of the Volvo plant, which has already been mentioned. The Deputy Minister for Enterprise and Lifelong Learning is aware of my views on that and has visited the area. The Ayrshire economic forum has made its views known to him. I remain optimistic—as a result of discussions that we have had at the forum—that a solution can still be found to redeploy the work force in that area.
The economy is also too dependent on declining industries. There is not enough emphasis on niche markets or growth industries, partly because our business birth rate, particularly among small to medium enterprises—I think Mr Russell referred to this—is lower than in the rest of Scotland. As I said last week, I do not believe that that is because the people of Ayrshire lack entrepreneurial skills; I believe that high unemployment and a fragile economy dissuade people from taking on the risks attached to setting up their own businesses. It is vital for the area's self-esteem that we recognise the positive developments that are taking place. If we do not have confidence in our own area, how can we expect other people to have confidence in it?
Unemployment is falling. Mrs Ullrich mentioned this month's figures. The figures for last September are the best September figures in the 1990s. The Universal Scientific Instruments plant in Irvine was the largest single investment in the UK last year, and it will bring 700 jobs to the area.
Kay Ullrich mentioned the new deal in disparaging terms, but it has brought 1,200 jobs to Ayrshire in the past year. That is to be commended. The prioritisation of lifelong learning is also bearing fruit in the area, with the new North Ayrshire College in Kilwinning representing an investment in further education that I hope will raise our skills base and attract new investors.
The college will offer the opportunity to begin to kick-start the local economy in Kilwinning. That is not to say that the Parliament or, in particular, the Scottish Executive, should rest on their laurels. Nicol Stephen acknowledged that point in last week's debate when, in response to my comments on regional selective assistance, he said that
"more requires to be done."—[Official Report, 28 October 1999; Vol 3, c 201.]
As with structural funding in assisted areas, I hope that the Scottish Executive will continue to prioritise areas that suffer from deep-seated, long- term problems and unemployment.
Transport infrastructure remains an area of concern. I mention by way of example the A78, A737 and A77. I hope that tomorrow's debate on the strategic roads review will contain some positive announcements for Ayrshire. Good transport links are vital to the area and to improving economic development. Indeed, as Phil Gallie said, in the debate on the food standards agency Susan Deacon stated that good transport links were one of the reasons for shortlisting Aberdeen and Dundee. That causes me some concern and shows that we need to improve transport links into Ayrshire.
The Scottish Executive can show its commitment to North Ayrshire by dispersing civil service jobs to the area. I have been calling for that for a long time, even during my period on North Ayrshire Council. I am pleased that the First Minister has asked for information on site locations.
I was disappointed to see that Mike Russell and Kay Ullrich voted to take the food standards agency to Aberdeen and not to support the lobby to site it in Ayrshire. The 45 jobs that that agency brings would have been a major boost to Ayrshire, and it is regrettable that they supported the interests of the north of Scotland over the areas that they were elected to represent.
I am interested in the vote Ms Oldfather mentioned. I am unaware that any such
vote was held. Can Ms Oldfather produce a record of it? Ms Oldfather is being disingenuous, because she knows that I offered my personal support and said that I was prepared to differ with my party on that issue. I hope that she regrets what she said.
I am sorry, Mr Russell, but I have no letter from you. I received letters from your colleagues saying that they could not support the siting of the agency in North Ayrshire.
Which vote are you referring to?
I refer to the vote on the amendment put forward by the SNP in the debate on the food standards agency.
Which vote are you referring to?
Mr Russell, I have already answered that question. I notice Phil Gallie nodding in agreement. I am grateful that he offered his support to the constituency MSPs in attempting to attract those jobs to one of Scotland's most deprived areas.
Before I conclude, I will briefly mention the Caledonian Paper mill. The energy tax is a matter for Westminster. I have discussed it with Henry McLeish, and I have written to him to ask him to make representations to the UK Government on behalf of Caledonian Paper mill. It would be of assistance if we examined the best way in which the tax could be collected.
The task to regenerate North Ayrshire is huge and regeneration can be achieved only through measures to promote lifelong learning, improved transport links, social inclusion and job creation. I hope that the new politics will guarantee constructive suggestions from and debate among all parties in this Parliament and that the Scottish Executive's commitment to social justice will be borne out in North Ayrshire.
I have four points to make. I will try to be brief.
I will not repeat what was said in last week's debate on regional selective assistance—the minister must be suffering from a bad dose of déjà vu—but I will repeat one point that I made to him, as it relates to the location of USI in the Irvine area. If we are to attract more major investments to that part of Scotland, it is important that we ensure that an array of appropriate sites is being marketed by Locate in Scotland and other development agencies.
The point that I made last week about the decisions on the last round of Strathclyde structure plans was that the available high-amenity single- user sites were designated in the Clyde valley— primarily in Glasgow and Lanarkshire. None was identified in Ayrshire. Such sites would be a most useful addition to the battery of resources that are available to promote employment. This may be more in Sarah Boyack's remit, but I am sure that the minister will have some say in those decisions in subsequent planning reviews.
Members have today emphasised the point about transport links. There are few good reasons why any businessman should develop in that part of North Ayrshire, given the poor transport links that exist in the area. The A737 did not even make it to the strategic roads review. If, tomorrow, the Executive indicates that its policy is to turn its back on substantial road improvement projects, I am afraid that that will be—and will be seen to be— very bleak news throughout Ayrshire, not least in the Ardrossan-Saltcoats-Stevenston area, which is at the far end of the longest bad communications route in the west of Scotland.
The point that was made about the energy tax is very pertinent, and I had intended to make it myself. There is growing concern in many industrial sectors in Scotland not about the principle of the energy tax, but about the fact that other countries are not about to implement similar measures. There is an increasing sense that Scottish industry and Scottish business are liable to be severely disadvantaged relative to their competitors. That is a matter for Westminster, but I do not think that the Scottish Executive can ignore its responsibility to represent Scottish concerns and to report back on Westminster's response.
There is one resource issue that has not been raised. During the build-up to the election campaign, I became conscious of the fact that the designation of social inclusion partnerships in North Ayrshire had not done the area many favours. It was a question of a new label and a very old bottle. The local authority did rather a good job of identifying deep pockets of poverty, which could benefit from an injection of funding. When in the future there are opportunities to review that aspect of Government policy, I trust that ministers will look on North Ayrshire in a favourable light.
I call Nicol Stephen to wind up the debate.
It is customary to thank the member who moves a motion for doing so. I would like to go further than normal in that regard, because during one of last week's debates Mike Russell had some very kind words for Alasdair Morrison and me about our
youthful appearance. Today I would like to return the compliment by saying that, despite appearances, Mike Russell clearly still has a young, agile and lively mind that remains razor sharp. I am convinced that, shorn of that beard, he would have run Tricia Marwick very close for the one to watch award in last week's politician of the year awards.
He is still one to watch.
On a more serious note, Mike Russell produced a lot of statistics that summarised a very worrying situation in North Ayrshire. Although the unemployment statistics are much debated, and although someone has to be second last or last on the list, it is a fact that the figure for North Ayrshire is significantly above the Scottish average. As Kay Ullrich said, in the past year there has been no decline in unemployment. The statistics that she quoted suggest a standstill, whereas in the rest of the Scotland there has been a decline—from 5.6 to 5.2 per cent. That is of particular concern.
Allan Wilson need make no apology for the fact that some of these issues are being covered again. The fact that this is the second debate focusing on the problems in North Ayrshire underscores the issue's importance and members' concern about it.
I agree with Phil Gallie that we must never be negative on these issues and that it is possible to talk down an area, particularly where inward investment is concerned. We are trying to encourage new investment in the area. We must maximise opportunities and work together. I hope that that is one of the main things that the Scottish Parliament achieves, particularly in economic development.
We should not look only at the negatives. Unemployment may go the wrong way, but there have been positives in North Ayrshire. A lot of good work is being done and I hope that I can reflect Irene Oldfather's call for a positive debate. I hope that my remarks help to set a positive tone.
There have been many ministerial visits to North Ayrshire—five since the Scottish Parliament election. That would not have happened under the Westminster system. The reasons for the visits have been varied, but some of them have been for good announcements—for example to do with new, innovative management initiatives relating to North Ayrshire Ventures Ltd and to Volvo.
I attended the Ayrshire economic forum. It is important to underline the Scottish Executive's commitment, at ministerial level, to it. The creation of 700 jobs by Universal Scientific Instruments at Irvine was good news. New investment by SmithKline Beecham, which helped to secure 200 jobs and created 19 more, was also good news.
The Ayrshire economic forum lies at the heart of the work that is being done by the Scottish Executive. It is central to the promotion of Ayrshire as a growth area for business.
I think that the Ayrshire economic forum is extremely important. It is regrettable that the list MSPs for Ayrshire are not invited to attend—certainly the SNP ones are not. I hope that the minister will encourage the Ayrshire economic forum to involve list MSPs.
I was there when that issue was discussed. The bringing together of MPs and MSPs and those involved in all aspects of economic development in Ayrshire was mentioned. It was indicated at the forum that that should be done at least once a year. One of the problems is the number of MSPs and MPs who would have an interest in attending the forum. I recall that the total was more than 40.
Everyone should be involved and, I believe, will be. An inclusive approach is the right one. Already the councils, Enterprise Ayrshire, the Scottish Executive, Ayrshire chamber of commerce and industry, MSPs and MPs are involved. The Ayrshire strategy for jobs was launched in March. An additional £2.7 million was given to the local enterprise company to assist with its implementation. North Ayrshire is starting to benefit from the activities of the forum, but more must be done.
Allan Wilson mentioned a good example, North Ayrshire Ventures Ltd, which was launched by Henry McLeish. It is a joint venture between North Ayrshire Council and the EDI Group. More than £500,000 of European funding has been allocated to that project, along with an investment of £250,000 from EDI. Work will begin in January to convert a council building in Saltcoats for a speculative call centre development. That is the sort of initiative that is starting to emerge. More like it are needed.
The LEC has a crucial role in leading the way. Enterprise Ayrshire is also promoting the right physical environment to attract jobs. For example, at Riverside business park, where there has been major investment already, works will be going on to improve road access and upgrade the power supply to the site. That is a significant investment in North Ayrshire.
We must do more to encourage exporting. A great number of excellent manufacturing companies are in North Ayrshire, but more needs to be done. Companies such as Anotek and Electroconnect, both based in Irvine, are examples of companies taking up this challenge.
The Executive recognises the importance of good transport infrastructure to economic development. The review, which has been referred
to, is considering which schemes will go ahead. Two are important to the Ayrshire area—the upgrading of the A77 to motorway standard and the proposed bypass of Ardrossan, Saltcoats and Stevenston on the A78.
I am pleased to announce that, tomorrow, my colleague, Sarah Boyack, will report to Parliament on the outcome of the review. Unfortunately, I cannot anticipate her speech. There is a clear and continuing need for investment to secure jobs in North Ayrshire through the regional selective assistance scheme.
The assisted areas map still covers 86 per cent of the area's population and the objective 2 map covers 85 per cent. When I asked for some statistics, I was told that, over the past three financial years, offers of RSA of £28.9 million have been accepted in North Ayrshire, helping to create or safeguard 3,040 jobs. Based on historic RSA spend, well over 90 per cent of the RSA claims that were made over the past six years could still be made under the new RSA map.
The situation at Volvo is difficult. The Executive is determined to secure the best possible outcome for the work force and has been working hard on that with Locate in Scotland and the Ayrshire economic forum. While we remain optimistic, we have pressed Volvo and all involved to ensure that an announcement is made as soon as possible, although it is up to the company to decide when such matters can be disclosed. Until that stage, Volvo has made it clear that it wishes the discussions and negotiations to remain confidential, which the Executive respects.
There is to be a new Kilwinning college, for which a £9.5 million contract was signed in March of this year. The college will open in time for the 2000-01 academic year, with up to 900 students per day. That is another positive step forward.
There are real, new prospects of inward investment in North Ayrshire. I am not able to make an announcement today, as such issues remain confidential, but there is clear investor interest in the area, which is perhaps the most important note on which to conclude.
The local economy in North Ayrshire is going through major structural change. We do not have instant or quick fixes, but a great deal is going on to secure not only the short-term but, more important, the medium and long-term strengths of the North Ayrshire economy. We must meet that challenge through many different types of action and we must do so in partnership.
North Ayrshire needs a joined-up approach and imaginative, innovative and creative thinking over the coming years to tackle its economic challenges. The Scottish Executive and, I am sure, all members of the Scottish Parliament are determined to rise to those challenges to turn around the current problems in the North Ayrshire economy.
As I close this evening's meeting, I wish to thank members, visitors and the staff of the Parliament for waiting behind so late.
Meeting closed at 17:53.