Clackmannanshire and West Fife (Unemployment)
We move to the debate on members' business, on motion S1M-116, in the name of Mr Nick Johnston.
Motion debated,
That the Parliament calls the Scottish Ministers' attention to the problems of social and economic deprivation caused by escalating unemployment in Clackmannanshire and West Fife.
I am delighted to have the opportunity to dedicate my first members' motion to highlighting the plight of the communities of west Fife and Clackmannanshire.
Clackmannanshire is the smallest unitary authority in the UK and has recently suffered a sequence of job losses. The loss of another 140 jobs with the closure of Patons mill in Alloa is the latest disaster to hit this small, compact and depressed area. Once the hunting grounds of Robert the Bruce, over the past century the wee county and its neighbours have, like the rest of Scotland, experienced a great change in the nature of their industries.
On a point of order. I am sorry, but I cannot hear.
I will give Mrs Scanlon a copy of my speech later.
Will members who are leaving the chamber please do so as quietly as possible? Mr Johnston, you have the floor.
The area has lost brewing, mining and textiles. Patons, which used to employ 3,000 people, has now withdrawn, switching production to China—a sad reflection on Gordon Brown and his sterling policies, which have stopped exports and sucked in cheap imports. Yesterday's interest rate rise will be met with horror by the small businesses of Clackmannanshire.
During the past 10 years, more than 6,000 manufacturing jobs have been lost—350 in the past month and more than 1,100 in the past 12 months. However, the problem runs much deeper than that and the exact root causes need to be identified and dealt with.
In the recent spate of redundancies and closures, Clackmannanshire is not unique. Fife west of the M90 is another area that has suffered high unemployment and social deprivation,
especially in the former mining villages. The current rumours of threats to almost 1,000 jobs at Babcock Rosyth will inevitably inflict further hardship on that part of Scotland and along the north shore of the Forth estuary. Rosyth and Dunfermline are within the Clackmannanshire travel-to-work area, and a decrease in employment opportunities in those places will have a major impact in Clackmannanshire. Unemployment has already risen to nearly double the national average—to 11 per cent—and female unemployment has risen by 36 per cent.
The area's problems are well documented by the Henley Centre rankings. Despite that, it has initiated some very worthwhile projects, in conjunction with Forth Valley Enterprise and Fife Enterprise. I welcome the fact that the councils have made provision for small businesses and created opportunities for social technology partnerships, such as the Alloa SMART village and the exciting new Rosyth Europark project.
Ten days ago, following the announcement of the closure of Kilncraig mill with the loss of 240 jobs, the Minister for Enterprise and Lifelong Learning attended a meeting in Alloa with local council officials, enterprise companies, councillors, the Westminster MP and the three local MSPs. As a result of that meeting, he agreed to the cross- party request for urgent action to provide aid to the area, for which the other MSPs and I are very grateful.
One heartening aspect of this situation has been the almost unanimous non-partisan approach to the problems of the area. I say almost, as I must make an exception for the MSP for Dunfermline West, who refused to support my motion on the ground that no problems exist. It is nice to know that Mr Barrie has his finger on the pulse.
The member is down to speak, and he can do so later.
The package promised was for half a million quid, and it is surely not coincidental that it has grown as a result of this debate. I must lodge more motions if that is the sort of aid that can pop out of the Government's pocket.
We now know that the package adds up to about £1.5 million, to be given through Forth Valley Enterprise and targeted through the strategic alliance. I promise to raise with the minister the possibility of bringing forward the planning stage for the new Forth crossing, a commitment to the further training of redundant and unemployed workers, and the involvement of the Executive by way of civil service participation in the strategic alliance. All the MPs and MSPs for the area welcome that.
These moves are welcome, but against the background of unemployment levels twice the Scottish average and of a demoralised and dispirited local work force, are they enough? In my view, they are not. What Mr McLeish could do, however—at no cost to the Executive, but much to his credit—is initiate within the Executive a co-ordinated approach to the problems of Clackmannanshire and west Fife. We now need concentrated effort from the Executive to improve the transport infrastructure of the area: specifically, the expedition of the new Forth crossing; completion of the upgrading of the A907; a new link from Rosyth to Stirling; a push to reopen the railway between Stirling and Alloa; refinement of the map for assisted area status; and objective 2 status, to give fuller eligibility for European funds. That is not the full extent of my shopping list, but it will do for now because other members want to speak.
A full and frank appraisal of the role that Forth Valley Enterprise plays would be productive. There is a rising barrage of criticism in the business community about the role of the local enterprise companies, and I will be asking why the aid is being directed as it is.
Clackmannanshire is an ideal candidate for investigation of the roles played by local government, central Government and statutory bodies such as the enterprise companies and the tourist board. I will be asking the Enterprise and Lifelong Learning Committee to take the opportunity to pay close attention to the outcome of this aid and this approach. It is the responsibility of all those bodies to work together to encourage inward investment.
I have received Mr Johnston's request, and representations from other members about the role that the Enterprise and Lifelong Learning Committee can play in relation to the issues that he raises.
The points will be raised with the committee next Wednesday, when we will establish our work programme for the following year.
Thank you, John.
In a recent reply to a question, Sarah Boyack said that, providing everything goes to plan, work on a replacement for the Kincardine bridge could start in 2003. The bridge will take around four years to build and will be built only if the Government releases the money. In the current economic climate, there is no guarantee of that happening and no business will make plans for inward investment under such conditions. The policy puts in doubt the long-term future of Longannet power station, which depends on road- delivered coal, which it blends with the deep coal
from the Longannet complex.
The recent closure of Downie's Bridge showed how isolated Clackmannanshire is. Industry needs transport to bring raw materials in and take finished goods out. Alloa is the only town of its size in Scotland not to be served by rail. Several local industries could make good use of rail transport if it was available. The Forth was, for centuries, the major import and export route out of Stirling. The monopoly of Forth Ports must be removed and Alloa docks must be reopened to shipping from the continent. Improved road and rail transport on the north side of the Forth will enhance the prospects for the proposed roll-on roll-off ferry at Rosyth.
All those proposals were in the Government's promises on coming to power. Why are they not being implemented? Not only would they help to reduce unemployment in west Fife and Clackmannanshire, they would reduce traffic on the Forth and Kincardine bridges, which is part of the Government's policy.
We have the will, the expertise and the pool of labour to be retrained. We need the political will to invest in the infrastructure and an innovative approach to solving our problems. I hope that the minister will show that he has the political clout to deliver.
I welcome the opportunity to address the chamber on this matter. As Nick said, Clackmannanshire has suffered from the decline of traditional industries, although in the case of the mining industry the suffering was significantly exacerbated by his party's Government.
The most recent decline has been in the wool and textiles industry. That problem is not only local; all the developed world is suffering as the industry moves to developing countries. In the past 20 years, the Government has funded few—if any—manufacturing jobs in Clackmannanshire. Clackmannanshire has received only a small share of the funds that have been made available for job creation through bodies such as Locate in Scotland.
The recent announcement by the Coats Viyella group of the closure of its operations in Alloa is a particularly sad event. It severs a 200-year-old association between that employer—in the form of Patons—and the community. The people in the wee county have contributed much over many years to the profits of the company. The company owes a debt to those people. This week, the company was valued on the stock exchange at £350 million, so not only does it have a moral obligation, it has the funds to assist the county by making available the sites that it occupies to other industries that might want to take up the opportunity for inward investment.
I call on the company, as the council has, to transfer the ownership of the factory sites to a mutually acceptable body—whether that be the council or a local enterprise company. The decision-making process of the Coats Viyella group and similar companies is extremely worrying and members should address it soon. The company closed three plants in one town during a five-month period without a word of warning to the employees, the unions, the council, the local enterprise companies or members of the Parliament.
I find that not just old-fashioned and out of date, but totally unacceptable and thoughtless. A previous Conservative Prime Minister said that the Rowlands companies were the unacceptable face of capitalism. To me, that is the unacceptable face of business today. It is not good practice and it is not acceptable.
I discovered the company shortly after I was elected and asked it about the effects of the minimum wage and the working time directive. Prior to the directive coming out, it was still paying its cleaning staff £2.60 per hour. We would not expect that, but I am proud of the fact that this Government has introduced a minimum wage to ensure that such things do not happen.
An issue for the future that I regard as important is the climate energy tax. The six plants in my constituency are all high energy users, but they are efficient high energy users, benchmarked against the rest of their own industry and theoretical minimum energy uses.
The energy tax that is proposed, but which has not yet been introduced, by the UK Government will disadvantage those companies against European and world competition. I urge the Scottish Executive—in discussions with our Westminster colleagues—to take great care with the jobs in my constituency and in the rest of Scotland. The tax should be about efficient energy use, not simple energy use. I support the tax in respect of its encouraging efficient energy use, but I am dismayed at the prospect of further job losses in my constituency resulting from a bludgeon tax, applied inappropriately. I therefore call for the tax to be reconsidered.
I welcome the Executive's efforts over the past few weeks. Although Nick feels that everything was produced from up our sleeves only in the past few days, some of us have been working on this with the Executive—and I know that members have been calling for it—for the past few months as the unemployment situation in the area began to deteriorate compared with the rest of Scotland.
Unemployment is still lower than it was when we came to power, but there is no doubt that it is deteriorating substantially against the rest of Scotland. That is extremely worrying.
The most important thing about the announcement is not the funds and how much money is involved initially, but the Scottish Executive's commitment to a partnership with the council, Forth Valley Enterprise and Clackmannanshire Enterprise, to ensure that there is progress over a sustained period. We can now get the direct ear of the minister without having to write or badger him daily. We can progress.
However, I appeal to the minister that we need to have adequate representation from Locate in Scotland on the committee. It must be at a level and of a nature that ensures that we obtain our share of the Locate in Scotland money. We need to have major industry, preferably in IT and biotechnology, to which the First Minister referred, and in which many jobs have been created over the past few weeks. We need them now in Clackmannanshire.
The Executive is doing its bit, with the creation of a number of jobs ranging from community police officers to child care providers. There are 194 18 to 24-year-olds on the new deal programme and 111 youngsters are involved in the modern apprenticeship programme. There is a commitment from the public sector in that area.
I have two final points. First, I welcome the initiative of the local Churches. Their support provides the moral leadership that is needed by the people of Clackmannanshire at this difficult time. Members would be welcome to come and see Clackmannanshire; it is a beautiful place to live and work. We have a backdrop of one of Scotland's most beautiful sites, the Ochil hills.
Secondly, we need good access, to which Nick referred. The A907 should be a trunk road and taken over by the Scottish Executive. We also need a date for the Clackmannanshire bridge and a rail link. Improved transport infrastructure would open up this beautiful part of the country to the job prospects that my constituents deserve.
Several members are indicating that they wish to speak. It is going to be impossible to accommodate everyone. I ask those who are called to keep their comments to a minimum so that we can squeeze in as many members as possible.
As a Clackmannanshire man, I can say that the Executive has made a good start in addressing the economic crisis in the wee county. I will confine my remarks to six matters, notice of which I have given the minister.
Although the additional funding is extremely welcome, is the minister aware that the strategic alliance action plan contains a £34 million programme, of which less than £10 million has secured commitment? Does he agree that there is therefore a demonstrable case for further funding from the Executive? Can he assure the chamber that such funding is forthcoming?
The Deputy Minister for Enterprise and Lifelong Learning has heard of, and often seen, many of the innovative projects that are being developed in Clackmannanshire, in particular, the SMART village in Alloa and the ambitious Clackmannanshire innovation project. Does he agree that those are nationally significant projects, which showcase Scotland as a leader in information technology and the knowledge economy? If that is recognised by the minister, will it also be recognised in Scottish Enterprise's funding criteria?
The minister has said that only 0.14 per cent of national regional selective assistance has gone into Clackmannanshire's economy; how can that be squared with Clackmannanshire's position as Scotland's unemployment black spot? Surely, as there is a need for an urgent review of Scottish manufacturing industry and the way in which it is supported, that should be considered further. Will the minister consider a manufacturing strategy, and an industrial diversification strategy, particularly for Alloa, where the decline of manufacturing has had a devastating effect on local communities?
European funds are clearly crucial to the economy. Can the minister confirm that the decisions by the Cabinet on Tuesday affirm support for objective 2 status for the whole of Clackmannanshire, and that that recommendation will be followed through with discussions in the UK Cabinet?
As there has been no inward investment in Clackmannanshire in the past 30 years, can the minister confirm that Locate in Scotland now sees Clackmannanshire as a priority, and that its newly appointed director, David Macdonald, will make an urgent visit there?
It is perfectly clear that good transport infrastructure and strategy is a critical element of a sustainable economy. Is the minister aware that Clackmannanshire is the only local authority area in Scotland that does not receive central Government subsidy for rail links and trunk road maintenance? Will he ensure that there is proper joined-up government by convincing his transport colleague, Sarah Boyack, to give
Clackmannanshire priority?
Contrary to what Nick Johnston said, it is not true that I am not interested in the debate; rather, as I wrote to him by e-mail, I feel that the motion is factually incorrect as unemployment is not escalating in the west Fife villages.
As Richard Simpson said for Clackmannanshire, unemployment has declined dramatically in the west Fife villages over the past two or three years. That is not to say that there is not a problem in the west Fife villages, which have been ravaged by the rundown of our traditional industries in the past two or three decades.
The possibility of job losses at Babcock Rosyth, which was covered sensationally by the press last week, has been known about since the Tory Government cynically betrayed the Rosyth work force by awarding the refit contract to Devonport on political rather than financial grounds. It is nice to see Conservatives taking an interest in the west Fife economy at this late stage, but it is very much a Johnny-come-lately interest.
Over the past two decades, the people of Fife have learned to rely on themselves. They have worked closely with organisations such as West Fife Enterprise, which is based at Torryburn and Valleyfield. West Fife Enterprise has been immensely successful in driving forward job opportunities for a number of people in the villages. The recent developments of Lauder College are encouraging; its computer skills outpost at Valleyfield community centre has increased the skills base of the potential work force in the villages.
It is true that Dunfermline and west Fife have a fair number of social problems, but we should not run the area down. We should acknowledge the efforts of the local people over the years to improve their lot, and should acknowledge the fact that unemployment has declined dramatically in the past two years. The latest figures show that none of the four wards in the west Fife villages has an unemployment rate that is greater than the Fife average.
I am grateful to Nick Johnston for lodging today's motion. He has suggested a few solutions; I also welcome those of my colleague, George Reid. Most of the debate has centred on Clackmannanshire, as it should, but Scott Barrie should realise that the problems in west Fife affect places other than the villages.
Unemployment in Clackmannan and Fife is disgracefully high—almost double the UK average. If Scott can take comfort from that, he is probably the only one. The responsibility for structurally high unemployment rests with Nick Johnston and the Conservatives' scorched-earth policy in the coalfields. That is where our high unemployment came from, along with the discrimination against Rosyth. I accept that.
Will Tricia Marwick give way?
No, I am not giving way, Scott.
Recent events have not covered the Executive in any glory. The Executive has sat back and allowed indigenous, well-run companies to go to the wall. It has invested all the enterprise eggs in Fife in the Hyundai basket. Hyundai has created few jobs apart from in construction, and most of them were not in Fife.
I give fair warning here and now on Rosyth. I accept that we have known about the problems of Rosyth and its contracts for a long time. However, it is the Labour Government that is responsible for allocating those contracts. Rosyth has the best workers in the United Kingdom, the most skilled and the most qualified. If Rosyth goes down the tubes, the Labour party in Fife will not be forgiven, in the same way that the SNP does not forgive Nick Johnston and the Conservatives for the years from 1979 to 1997.
Rosyth must stay. I want a commitment from the Scottish Executive that it will fight for Rosyth to ensure that those jobs are retained.
I call Brian Monteith as the last speaker before the minister sums up on behalf of the Executive.
Thank you, Deputy Presiding Officer—I did not think that I would be called at all.
I thank Nick Johnston for bringing the motion to everyone's attention. Because of the shortage of time, I will rattle through a number of points.
We should consider two aspects. The first is macro-economic policy—not just in the Scottish Parliament, but in other bodies—which would help Clackmannanshire and other areas that might become like it. We should work at all levels to encourage free trade to open up new markets that will allow the creation of new jobs.
Secondly, we should support the pound. We should reject the concepts of a "one-interest-ratefixes- all" policy and the euro. If we were to join the euro, there would certainly be more problems like those in Clackmannanshire. We should also examine the issue of high social costs. There is
high unemployment in Germany.
We have heard that unemployment has been falling in Clackmannanshire, as indeed it has been in the rest of the UK. That fall in unemployment is a trend that was started by the Conservative Government and taken over by Labour, but I am beginning to suspect that what is now happening in Clackmannanshire represents the reversal of that trend. If we are to ensure that there is no such reversal, we must avoid high social costs, encourage free trade and keep the pound.
I also want to touch on micro-economic policy. It is important to bring particular help to Clackmannanshire to allow Forth Valley Enterprise and its partners to improve the transport infrastructure. That will help to bring new work to the area.
The Executive should also consider potential planning obstacles to entrepreneurs and businesses in setting up and expanding their ventures. It should consider what can be done to open up competition. Nick's idea about the monopoly of Forth Ports was good: we should consider how we can break down cartels and monopolies that prevent jobs from being created.
I thank Nick for bringing the issue to the Parliament's attention. We look forward to trying to do more as a Parliament to help the unemployed in Clackmannanshire.
I call Nicol Stephen to close the debate. You have five minutes, Mr Stephen.
I will do my best.
I thank Nick Johnston for initiating the debate and for raising some important issues. I hope that everyone will agree that the opportunity to discuss the issues so speedily following the unfortunate job losses in Clackmannanshire in recent weeks is one of the considerable benefits of having the Scottish Parliament.
I welcome John Swinney's speech, indicating that the Enterprise and Lifelong Learning Committee will be able to discuss the matter very soon.
I thank Nick Johnston for his support for the quick action that has been taken, and for saying that these matters should be advanced on a cross- party basis, an opinion with which I strongly agree. I also thank Richard Simpson for his contribution. I assure him that Forth Valley Enterprise is in discussion with Coats Viyella to secure the release of sites for future redevelopment, and that Henry
McLeish is writing to the United Kingdom Government about the climate change levy. No decision has been taken yet as to how that levy will be applied.
If I am to keep to time, I will have to rattle through several issues. I especially want to thank George Reid for giving me notice of his questions; I will take up some of them now, but I will try to respond separately in writing to the ones that I do not cover.
It is clear that there has been a considerable number of job losses—too many. However, it is important to remember that there have been some good-news stories as well: BSkyB has created over 600 jobs in Dunfermline; and even in Clackmannanshire, where the problems have been greater, there has been success in the retail and textile sectors.
I do not want to state whether the following represents good or bad news—the facts speak for themselves—but for the record, Clackmannanshire now has an unemployment rate of 9 per cent, which is down from 10.4 per cent last year and down from 12.8 per cent back in 1996. The Scottish average is down from 6 per cent to 5.7 per cent. In the Dunfermline travel-to-work area, the rate is down from 7.5 per cent to
6.2 per cent. We all agree that those figures are too high. On infrastructure, I understand that representations have been made to try to bring forward, if possible, the publication of the orders for the Clackmannanshire bridge—the new crossing of the Forth. The time scale that is being talked about is spring 2001, and I know that Henry McLeish will be considering that.
Henry McLeish is aware of the disruption that was caused by the recent emergency work on the A907, and I can readily understand the desire to upgrade it. However, it is not a trunk road, and those decisions are a matter for Clackmannanshire Council. In relation to the proposed Stirling-Alloa-
Dunfermline rail link, the Executive is committed to getting more people on to public transport and is aware of Clackmannanshire Council's application for public transport fund support to reopen the link. We await the results with interest.
To make progress, I shall skip over some of my comments. The encouraging example that I referred to earlier is Castleblair, which has created 120 textile jobs at Alva. Henry McLeish visited the company, and a number of people from one of the earlier Coats Viyella closures have been reemployed there. Even in an industry such as textiles—although it is clearly in decline in Scotland—there are some positive prospects.
Henry McLeish visited Clackmannanshire and met councillors, MPs, MSPs and representatives from Forth Valley Enterprise, the Clackmannanshire strategic alliance and the business community to hear their concerns. It is important to recognise the lead role of local enterprise companies in promoting economic regeneration in partnership with the private sector and with other public sector bodies.
Henry McLeish has announced that Scottish Enterprise has awarded Forth Valley Enterprise an extra £500,000 for projects in Clackmannanshire and Falkirk. That has been matched by this morning's announcement by Forth Valley Enterprise that, as a result, it has leveraged extra funding into the Clackmannanshire area, which brings the total of additional funds for Clackmannanshire to £1.5 million. I am pleased to say that two office and industrial developments in the Alloa SMART village will be started as part of that package. I have to say to George Reid that that investment is very much welcomed and applauded by the Scottish Executive and will provide quality business space for new and expanding firms.
Locate in Scotland has met Clackmannanshire Council and Forth Valley Enterprise and has visited the area on several occasions to introduce it to potential clients and to brief interested parties. The organisation is also working on a number of possible clients who are considering Clackmannanshire as a potential location. Yesterday, officials from Locate in Scotland, Clackmannanshire Council, Forth Valley Enterprise and the Scottish Executive met a potential investor to discuss a possible investment for 2000.
West Fife has had some good news recently. Lexmark International has opened a second plant on its Rosyth site, creating 200 new jobs on top of the 500 existing jobs. There have been other examples of positive news in the area. Fife Enterprise and all the public and private sector agencies are supporting the Rosyth 2000 initiative. There are prospects, including the local enterprise company's work to encourage new developments such as the proposed roll-on, roll-off ferry from Rosyth to Europe.
The Scottish Executive is being kept aware of Babcock Rosyth's efforts to secure new commercial business and is in regular discussion with the company about possible financial support for projects. It has always been recognised that it would be difficult for the company to find enough commercial business to compensate for the loss of its core naval repair work, and the company has made no secret of the need for further redundancies. However, it is clearly for the company to decide when such announcements will be made. Henry McLeish is writing to Margo MacDonald, following her question in Parliament last week, and to Scott Barrie to set out the Scottish Executive's position and role in supporting Babcock to identify new work.
May I intervene?
I have nearly finished.
It is a matter of courtesy. It is perfectly proper for Henry McLeish to write to Margo MacDonald, because she asked a question, and to Scott Barrie, who is the constituency MSP. However, can the same courtesy be extended to all MSPs who represent Mid Scotland and Fife, not just to the constituency MSP?
I see good sense in Tricia Marwick's suggestion and will be happy to raise the issue with the minister.
The Executive agrees with the suggestion of encouraging a greater take-up of regional selective assistance in the Clackmannanshire area, in particular. The level of RSA is too low in the area and we need to encourage greater use of that funding. It is a truism to say that both projects and momentum must be created before RSA can be released, but our partnership approach—with contributions from the Executive and from other sources—is the best way to stimulate the economy. I hope that the examples of potential inward investment that I mentioned come to fruition and that other projects will be created. We need to raise the level of RSA.
Finally, proposals for the new European funds map are still being considered by the UK Government. Obviously, that is a UK Government responsibility, but it is one of the issues that the First Minister and the Secretary of State for Scotland will discuss. It is important that Clackmannanshire and other parts of Scotland still have access to support through objective 2 European funds.
The debate has been good and worth while. It has been held quickly after the recent spate of bad-news stories in the areas that we are discussing. The Scottish Executive wants to work with MPs, MSPs, the public sector and the private sector to address the problems there and in other areas in Scotland that are affected by job losses. I echo the sentiments expressed by Nick Johnston: I hope that this is one area where all parties can work together to secure more jobs for Scotland and for the areas that we discussed.
Before closing this evening's business, I have to state for the record that because of a technical difficulty with the voting system, there are some amendments to the votes.
On amendment SM-127.1, to the Executive's motion on the programme for government, the result was previously recorded as: For 31, Against 65, Abstentions 14. The number against must now be amended to 66.
On motion SM-127, the previous figures were: For 65, Against 46, Abstentions 0. The number for must now be amended to 66.
On amendment SM-131.1, to the motion on time for reflection, the votes were previously recorded as: For 9, Against 99, Abstentions 3. The number against must now be amended to 100.
On the substantive motion SM-131, the results were previously recorded as: For 91, Against 7, Abstentions 13. The number for must now be amended to 92.
I thank members for bearing with me.
Meeting closed at 17:42.