Plenary, 08 Dec 1999

Meeting date: Wednesday, December 8, 1999

Official Report 617KB pdf

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Hawick

We now move to members' business, which is motion S1M-319, in the name of Mr Euan Robson, on the economy of Hawick. The debate will be concluded after 30 minutes, without any question being put. Members who wish to speak should press their request buttons.

We have more than one lectern. It would be helpful if members who are going to speak have them ready—that applies to ministers as well.

Motion debated,

That the Parliament notes with concern the recently reported decline in the population of Hawick, appreciates the work already underway to develop the town and broaden the base of its economy, understands the need for further investments, commends the New Ways economic strategy for the Scottish Borders and hopes that this will lead to the creation of more opportunity to keep young people in the town and the region.

I express my appreciation of the opportunity to address Parliament about the problems and opportunities facing Hawick, which is the largest town in my constituency. It is a particular privilege to speak before you, Sir David, as you represented Hawick and Roxburghshire with such distinction between 1964 and 1983.

Hawick is the most distant of the Scottish Borders towns from Edinburgh; in fact, it is seven miles closer to Carlisle than to the capital city. It has a proud history. To take the example of artists, Tom Scott, Anne Redpath and William Johnstone lived either in the town or nearby.

Hawick's economy has had a battering over the past 18 months with the loss of manufacturing jobs, but I want to emphasise the strong signs of recovery and the opportunities in the town.

In addition to the severe recession in agriculture, which affected the town because it supplies services and goods to farmers in the surrounding areas, Hawick suffered from the Viasystems closure because many residents commuted to the company's plants in Selkirk and Galashiels. Doubtless, Hawick will benefit from the Manpower call centre in Selkirk, and from the Signum Circuits expansion in the former Viasystems plant in Selkirk.

The notorious banana wars posed probably the biggest threat for generations to the prosperity of Hawick. Sixty per cent of all Borders textiles employment is in Hawick. Hawick's cashmere industry is a major employer and export earner. I pay tribute to all those who fought off the threat of tariffs: my colleagues, MPs Michael Moore and Archy Kirkwood; industry leaders, in particular; Scottish Borders Enterprise; and Scottish Borders Council.

I am pleased to report that cashmere order books from the USA, in particular, are now bulging; there is welcome contract work for smaller cashmere firms and overtime for some employees. That underlines the fact that textiles and knitwear is not a sunset industry—some people in Hawick fear that that view still lurks in the enterprise and lifelong learning department and in Scottish Enterprise. I think that that fear is unfounded. I welcome the work of the Scottish textiles network, which was set up by Scottish Enterprise, and the fact that, in January, Henry McLeish will chair a workshop on the industry. Nevertheless, it would be a significant boost if the minister could dispel that impression once and for all today.

Textiles and knitwear will remain important to the economy of Hawick and the Borders for many years. However, products will have to be at the quality end of the market. The skills base and the loyalty and dedication of the work force are, of course, second to none. There will always be a demand for the best in the marketplace; that is supplied by Hawick and the Borders.

I back the campaign to build up the worldwide image of the cashmere industry and the initiative to develop tourist-related trade. The Borders should be known and signposted as "Cashmere Country".

Of course, there is some nervousness in Hawick about the future of Pringle of Scotland, the sale of which by Dawson International is imminent. My parliamentary colleagues and I have impressed upon Dawson International the need to sell Pringle as a manufacturing entity rather than just to dispose of the name. We received some assurances on that point, but it is the new owners who will make the decisions. I ask the minister to back the call for the continuing manufacturing presence of Pringle in Hawick and to offer assistance as necessary to secure local production and jobs.

The base of Hawick's economy must be diversified. A start has been made with the opening of Allflex Europe (UK) Ltd in Galalaw and the establishment of Lion Speciality Foods. The new ways strategy, born out of the Borders working party's final report, "Rebuilding the Borders Economy", will deliver success in the coming months. However, I draw the minister's attention to the critical issue of funding, and I illustrate it in the context of Hawick.

The town has a real shortage of modern industrial units. Too many firms are in old buildings

that are either beyond their useful life or can be repaired only at disproportionate cost, and there are a lot of empty but unsuitable buildings. Scottish Borders Enterprise and Scottish Borders Council can help, as evidenced by the new Mainetti factory. However, addressing the market failure requires investment beyond what can be realistically expected from the private sector. The public sector will have to help.

The success of the campaign for European Union objective 2 funding and the return to the Borders of regional selective assistance— removed by the Tory Government in 1982—can deliver such investment, but only with match funding; there will be no quick fix.

When the former Scottish Office minister, Brian Wilson, visited Hawick in February this year, he talked about a down payment of £1 million for the Borders. There needs to be a sustained, consistent level of funding from Scottish Enterprise to the local enterprise company. Perhaps the minister can use his influence to ask Scottish Enterprise to roll the special category funding into Scottish Borders Enterprise's base budget. Scottish Borders Council also needs resources to progress the schemes that its economic development department, in particular, has in preparation.

We won objective 2 funding because the Borders is an economy in transition; nowhere is that more true than in Hawick, which epitomises why objective 2 was so necessary.

I argue that Scottish Borders Enterprise ought to have an enhanced and consistent level of funding over the six years of the objective 2 programme, especially as the programme has a tighter timetable than that of objective 5b. I also ask the minister to remember the needs of skills retraining, emphasised in the new ways economic development strategy. Objective 3 will be annualised, and we will need to bid for funds from the central pot. I ask the minister to ensure that the Borders receives a fair share.

There is much to look forward to in Hawick. Apart from the initial disruption, the inner relief road, which will open next year, will help the town. Work planned on the A7 and A68 will improve communications, but I emphasise the need for work on the A7 south of the town, especially around Langholm, and I salute the work of the A7 action group.

Hawick will benefit from a return of the railway to the Borders. The outcome of the feasibility study on that is awaited with interest. Although it is unrealistic to believe that the line could return to the town in the short term, there is a case for its eventual return. I trust that ministers will consider not only the economic case when making investment decisions, but also issues of sustainability, environmental protection and social inclusion.

I warmly welcome the work of the Waverley line heritage centre group; the welcome host initiative is a success and has gathered much useful information, encouraging visitors to stay longer.

Hawick has underdeveloped facilities, such as the superb Wilton park—a hidden asset—and its museum. However, there is not one Hawick facility in the list of the top visitor attractions in "Scottish Borders in Figures". I know that the Scottish Borders Tourist Board has that on its agenda. The tourist information centre in Drumlanrig's Tower is helping to develop the town's tourism potential.

I am anxious that there should be confirmation of a starting date for the town's new hospital. That will give a further local boost and will demonstrate further confidence in the town's future.

The new Aldi supermarket is welcome and, now that the decision has been taken to renovate Tower Mill, I hope that work can proceed swiftly. Its state of dereliction has been a blot on the landscape for too long. There is tremendous potential, particularly on Hawick's High Street, and I hope that the heart of Hawick project will, in due course, improve the area considerably.

I have written to all cinema companies in the UK, asking that they consider reviving the cinema in the town, and will work closely with Scottish Borders Council's leisure and recreation department, who have done so much to advance the case. I also believe that the town needs another hotel, perhaps one of a chain, to encourage more overnight stays.

In the 1991 census, Hawick's population was 15,719. A study by Scottish Borders Council showed that the figure for 1998 was just over 15,000, a drop of about 4.5 per cent compared with the 3 per cent rise in the population of Scottish Borders over the same period. Behind those figures is a worrying trend. As was noted in the new ways economic development strategy for the Borders, young people are moving out of the area. The Borders has the highest proportion in Scotland of people aged over 65 and over 75.

What is happening to our young people? According to Scottish Borders Careers, the percentage of school leavers entering employment decreased from 29.4 per cent in 1987-88 to 17.3 per cent in 1997-98. However, in those 10 years, the percentage of school leavers entering higher and further education almost doubled, from 32.1 per cent to 64.4 per cent. In 1997-98, only 11 per cent of school leavers went on to higher education in the Borders, but 83.4 per cent of those who opted for further education went to facilities in the Borders.

I believe that there are two lessons to be learned from those figures. To keep more of our young people, we need to develop local higher education opportunities and I recognise the work of Heriot- Watt University in developing its campus in Galashiels. We must also develop distance learning and I want to highlight the pioneering work of Borders College, which is a contract partner in the Scottish university for industry consortium led by Napier University. The college opened a pilot learning centre in Hawick in September and is planning several more learning centres, including facilities in Galashiels, Jedburgh, Selkirk and Newcastleton.

It is also important to attract our young people back to the Borders and to see others settling and making their careers in Hawick and other Borders towns. Given the level of interest and commitment by the partnership of local agencies working with the Scottish Executive and the Scottish Parliament, the new ways strategy can deliver the thriving organisations, vibrant communities and connected places that will achieve that goal.

Finally, I extend to the minister an invitation to visit Hawick in the new year to see some of the things that I have mentioned. I hope that he will be able to accept.

I ask members to keep their speeches to no more than four minutes, so that we can fit everyone in. I call Mr Murray Tosh.

Once Peter Peacock left, there was no one in the chamber who was a teri, and no one except me who has even lived in Hawick. I am sympathetic to today's motion and I congratulate Euan Robson on securing the debate in record time—I do not know how he did it.

I associate myself with much of what Euan Robson said in his state of the Borders message. I agree that the strategy for regenerating the Hawick economy must be a broader approach, taking in the entire Borders area and developing industry and employment in several centres.

I welcome the restoration of regional selective assistance to areas in the Borders, as well as the decision on objective 2 status. However, I also regret it, because the fact that RSA is restored to the Borders recognises the fact that, in recent years, the area has declined in comparison with other areas of Scotland—it is a reflection of its particular local difficulties. The Government has acted promptly and properly in respect of that.

I also welcome the statements made by ministers on the work that they are prepared to put in to protect the textiles industry, in so far as that is possible, against a difficult global situation. I am sure that all parties will want to associate themselves with Mr Robson's plea that everything possible should be done to ensure that Pringle remains in Hawick. Although textiles in general might struggle, facing continuing decline, there are niche areas in the industry where quality, reputation and service are stabilising and can rebuild the markets. It is important that we do not talk down the industry and that we remember that cashmere is a Scottish product with a future.

Recently, the convener of Borders Council made comments to me about the particular weaknesses of the property market in much of the Borders and the need for purpose-built accommodation for potential incoming industry. There is an argument that more resources need to be made available to the local enterprise company. I hope that that will happen.

Mr Robson welcomed the route action plan and its consequences in terms of the improvement of the A7, although there is still work to be done. An essential part of the new ways strategy is the emphasis on infrastructure. If we are trying to encourage industry to locate in the Borders, and in Hawick in particular, and to encourage existing industry to expand, we must consider the area's transport requirements. Decisions were made in the recent strategic roads review, which, in the long run, are not acceptable, except in the context of sustained investment in a railway network that can benefit industry. We must have an Executive commitment to adequate transport links right into the central Borders, with a guarantee that Hawick will be able to integrate into that—if not immediately by railway, at least by an express bus, which will feed into a railway in an accessible location. If we cannot get the transport right, we will not get anything right.

In other areas—tourism, agriculture and textiles—the region is struggling, because of global economic circumstances and the strength of the pound. The Executive, the Government, and politicians who go around campaigning on all those issues must put all their weight behind the Borders economy, particularly in respect of the difficulties that are being experienced in Hawick, and do whatever can be done in the context in which the Scottish Executive must operate.

I am happy to support Euan Robson's motion and I congratulate him on his initiative.

Quite often it seems that Euan Robson, Ian Jenkins, Murray Tosh and I are healthy adversaries, but we all support Euan Robson's

motion. All four of us know the specific difficulties that face the Borders and Hawick.

The population of Hawick is around 15,000. That represents a drop of 4,000 in 100 years, whereas the population of Peebles has increased correspondingly during that time. That reflects the fact that Peebles has reasonable transport links— in the context of the Borders, at least. The demographics also show that 38 per cent of the population of Hawick is aged over 50, which reflects the falling opportunities for employment.

I shall deal first with the negative issues that have been mentioned. The economy of Hawick, like that of the rest of the Borders, remains vulnerable. A small number of employers employ a large number of people, and if one of those employers is hit, a lot of people lose their jobs. The industrial base is pretty much restricted to textiles, farming and electronics, and 2,000 jobs have been lost in electronics and textiles over the past year. Farming has specific and more hidden problems, which are just as bad.

The provost of Hawick—John Ross Scott, who is known affectionately as J R—told me that he was upbeat but concerned. Jobs and transport are the key to the resurgence of Hawick and the Borders. Those factors are interlinked and cannot be detached.

On the positive side, there are the jobs that Euan Robson has mentioned. Mainetti, which employs 35 to 40 people, predicts that its work force will rise to between 200 and 300 over the coming years. That is a good wee story. That company originally made plastic coat hangers— and still does—but now makes ducting for computers and phone links. That is a step forward. Allflex provides another extraordinary story. The seeds of that company were sown in the Borders. It makes electronic plastic tags for cattle—a positive by-product of the BSE fiasco/crisis—and is seeking to develop UK-wide.

As Euan Robson rightly says, there is still a place in the Borders for the original indigenous industries, such as the cashmere industry. Aiming for the quality, high-priced end of the market is the way to go. The Borders will never compete with cheap, far eastern produce, but it does not want to. However, we must be alert, as the market is competitive. Money must be spent on design and marketing, but there is always the big plus that a product has been made in Scotland, in the Borders textile industry. That is something that money cannot buy.

The abattoir at Hawick has not been mentioned. A Northern Irish company bought it four years ago, simply to close it down. There is an on-going feasibility study into meat processing in the Borders. If we can get that going, we can perhaps build up lamb processing in the Borders and reopen the Hawick abattoir.

And cattle processing.

I beg your pardon, we can build up cattle processing and pig processing as well.

Communications and transport are obviously the key to everything. The A7—as far as I know—has only two crawler lanes: one is at Middleton Moor, near Midlothian, and the other is near Langholm, in Dumfriesshire. Two sections have been under review—Auchinrivock at Langholm, and Glenmarie at Galashiels—to increase safety in those areas, but nothing has happened. That would be my B- plan. My A-plan is also the A-plan of the all-party Campaign for Borders Rail—the key is rail, which would give heart and spirit to the Borders people. As Ian Jenkins has said before, a connecting-up of the Borders is essential for freight, for passengers, for entrepreneurs who come with their families to live in the Borders, for young people who return and for tourists. It will also put the Borders on the map.

Imagine if the Scottish Parliament could reopen the railway line through the Borders—perhaps in stages, although I am not prepared to concede that point just now. The reopening of that line would be international news and would create a direct route to Europe, providing a vital connection for the Borders. That is the key to solving the problems in Hawick and the Borders.

I do not know whether there is much left to say. I hope that the minister notes the unanimity on all sides today. There is no point in my repeating what has already been said. I have with me a speech that would have told David Steel all about Galashiels and Hawick, but I will not bother with it.

I am delighted that we are having this debate and that the speeches have covered the ground so thoroughly. I feel that we must strike a positive note. I do not like talking the Borders down as I believe that there is hope for development there, given the investment that we have talked about and the spirit of the Borders people. However, after the bump that the area has had recently, the Government needs to help us to get started again.

Many ministers have visited the Borders since the establishment of the Scottish Parliament. All of them must have been impressed by the will of the people to get up, get going and do things for themselves. Scottish Borders Enterprise, the Scottish Borders Council—both focused and working in partnership—MSPs of all parties and all

the other agencies are backing them.

Education, skills and training are vital and can be encouraged without fantastic amounts of money being spent. When employers come to the area, we need to be able to promise that their work force can be trained. The Borders work force is super and has never let anyone down—not Viasystems, not Pringle and not Dawson International. It is skilful and hard working, but it needs somewhere to exercise its talents.

School leavers must be able to stay in the Borders while obtaining the skills that they need. I agree with Christine Grahame that the rail infrastructure is vital, as are roads. Whatever happens, lines of communication in the area must be made better. The Executive has an opportunity to do that. The A7 is a dangerous road and must be improved.

We need to encourage small businesses instead of expecting big factories to be set up. It would be better if we could diversify the economy.

We need to sell the Borders. It is a wonderful place—the work force, the quality of life, the scenery and the schools are all great. The Borders is an attractive place for businesses to come to and that fact should be better publicised. The whole of the Borders, and Hawick especially, would benefit from that.

Right at the start of this debate, Sir David Steel encouraged me to get a lectern in front of me—he obviously regarded this issue and this area as very important. In a sense, I am glad that he is no longer in the chair because, with his expertise, he would doubtless have scrutinised every one of my remarks.

I thank Euan Robson for taking the initiative and securing today's debate on an issue that affects one of the key towns in the Borders. The statistics that have been quoted, indicating a fall in population of 4.4 per cent between 1991 and 1998, are worrying, especially because they suggest a flow away from the area of younger people—from the Borders in general and from Hawick in particular.

Although complex, the economic reasons for that fall are clear. There have been changes in the international textile industry, the results of which— sadly—we see too often in Scotland. They have hit Hawick especially hard.

It is important to press on with the diversification of the local economy, but it is also important to remember that niche sectors of the textile industry remain strong and vibrant and still have an important role to play. We should focus on that, especially at a time when there have been additional problems in agriculture and in the electronics industry—another sector that should have a significant future in the Borders.

I respond to Euan Robson's invitation by saying that I would be delighted to visit Hawick and other parts of the Borders as soon as possible in the new year to look at the problems and to address them more directly.

Right at the outset, I would like to knock on the head any suggestion that the Executive regards the knitwear and cashmere industry as anything other than a sector with a bright, buoyant and long-term future in Scotland. We are well aware of the great successes of cashmere—especially in north America. That has resulted from the work of the local MPs, of ministers, of the local council and of the local enterprise company—and especially from the work of the industry itself—to overcome the problems of the banana war.

The knitwear and cashmere industry is a huge contributor to the success of the Borders economy: 45 per cent of its products are exported directly, and a further 25 per cent go overseas through sales to tourists. We are following up on that success through initiatives such as the "Cashmere made in Scotland" promotion, in which 14 out of the 21 companies involved are based in Hawick. For three of those Hawick companies, an international marketing effort has—to give two examples—yielded sales to Korea of £692,000 and raised the profile of the cashmere industry during London fashion week. A lot more could still be done, but the focus on cashmere and the growing niche sectors of the textile industry is very important.

I was asked to comment on Pringle. I share the view—expressed, I think, by all members—that the buyers of Pringle should keep production in Hawick. I know the anger and distress that was caused in Aberdeen when the Crombie brand name was moved and the manufacturing disappeared. However, I understand that Dawson International is progressing well with its sale and expects to announce a successful bidder soon. Scottish Borders Enterprise stands ready to contact the new owner as soon as an announcement is made. It has already asked Dawson International to pass on its offer of support to potential buyers and to pass on information on redevelopment opportunities at Galalaw, which is included in the proposed assisted area map that the European Commission is considering.

Euan Robson and other members paid tribute to the work that is being done to broaden Hawick's economic base. The new ways strategy, which was launched in March this year, sets the

framework for diversifying the Borders economy. I pay tribute to the partnership that has been created in the Borders. When Henry McLeish and I met representatives of the Borders economic development forum, we had described to us a new and markedly different atmosphere of partnership and new momentum in the area. I know that the people of Hawick are already sharing some of the benefits of that through the launch of the Hawick initiative, which gives a particular priority to the Hawick area.

There have been successes in Hawick, some of which have been mentioned. Three new, relatively small but innovative companies have created 40 highly skilled jobs—at Allflex Europe (UK), Lion Speciality Foods and Choices residential care. The Hawick "Welcome" initiative gets people into the shops of Hawick, with nine hosts employed to promote a welcoming and visitor-friendly image of the town. That is the sort of sparky, new, innovative initiative of which we want more. The return of assisted area status will help to underpin those successes, as will the objective 2 programme.

Scottish Borders Enterprise's budget has been increased by more than £3 million in the past few years and steps forward have been taken in relation to infrastructure. For example, work will begin soon on the A7 traffic relief scheme, which will divert traffic away from Hawick town centre and make the town more attractive for industry, for tourists and for locals. That is a good example of the sort of partnership that we are looking for, with Scottish Borders Council and the Scottish Executive sharing costs on a 40:60 basis.

As members know, the Borders rail study has reached the final draft stage. It has been circulated to key stakeholders for comment and we expect to make an announcement soon on the timing of the publication of the final report. The study includes a comprehensive investigation of options and a statement of their costs and benefits, but it would be premature to go further at this stage.

Members expressed concern about the Tower Mill; I know that there is a long-standing issue about better use of that listed building. The consultants' report on options for redevelopment is now with Scottish Borders Council and Scottish Borders Enterprise for consideration, and I hope that a positive decision about the building will be taken soon.

It is vital that we address the issues of learning, the knowledge economy, training and skills to avoid the drain of young people from the area. The Borders learning partnership was launched recently and will help to bring new opportunities for training and further and higher education to people in the Borders. The initiative builds on Heriot-Watt University's presence in the Borders—including its outreach centre in Hawick and at the Borders College—and the presence of Napier University and other training providers that already operate in the area. More can be done and I hope that, when I visit the area, I can look at the local further education and other training and skills initiatives as well as examine industry and commerce.

I thank all members for their heartfelt comments. Euan Robson will wish us to visit the area on many more occasions, but I hope that the commitment already shown by ministers emphasises our awareness of the issues and our desire to help the area to achieve more.

We need to build on the new momentum that I spoke about and to turn recent small-scale but important successes into bigger boosts for the local economy. That will enable Hawick to enjoy a growing population, a growing number of jobs and a growing confidence, which are seen elsewhere in the Borders and in many other parts of Scotland.

Thank you, minister. I thank Mr Robson and the other members present for this debate.

Meeting closed at 17:39.