General Unless all appearances should prove very deceptive, the government's efforts to keep themselves in good odour with the international bankers are likely to provoke a first-class crisis in Scotland, Although it would not be possible to predict at this stage the overall effect of the regional development plan, the squueze and the further drastic measures to come are certain to act as a powerful disincentive to any further location of industry in a region which, due to the lop-sidedness of industrial development in Britain, has an unequal fight at the best of times to attract its In the first quarter of the year the rate of increase in industrial output dropped by half, and without question this fall is going to accelerate. Already some of the more marginal industries are in serious trouble. The result of last year's improved profitability in the fishing industry has been the slashing of its government subsidy by approximately 10%. Sales of whisky have fallen by 9%, and in agriculture the Scottish pig herd has been declining for months, so much so in fact, that the bacon curing industry will be wnable to support the percentage of the home market allocated to its As might be expected, the building materials industry has been hit hard, one company in the last week having been forced to liquidate one of its subsidiaries. It would be very surprising if social spending fails to suffer. The problems with housing have been indicated, and any cut in government grants in this direction can be readily imagined. The Lyceum redevelopment scheme in Edinburgh, with ambitious plans for new theatres and concert halls has already been wrecked by soaring costs. On top of all this, a universal upward revaluation of property in Scotland for rating purposes will make its significant contribution to the increased cost of living. A gloomy future of further unemployment, rising costs all round, and mutilated social services seems in the offing. Deflation A more intense dosage of deflation and unemployment than elsewhere in the country is the prospect offered to Scotland by the current government proposals. The regional development plan is down the drain for a start and the general effects are likely to be devastating. James Jack, General Secretary of the Scottish TUC, felt confident that Scotland was in a better position than 5 years ago to stand up to these kinds of measures, but he lost no time in pointing out that with a higher proportion of unemployment already, Scotland was certain to be correspondingly worse hit by moves to increase it further. Nor is this all. The level of wages in Scotland is generally less than that prevailing in the south. A wage-freeze, if successful, will of course make it impossible to correct this position in any way, and the increased prices resulting from higher purchase tax, more stringent hire purchase conditions and bigger postal charges will be felt more severely in Scottish incomes. Prices are likely to rise further still in any case through increased petrol taxes combined with the higher proportion of transport costs on Scottish prices. On top of this the inadequate transport system is threatened with additional curbs in road building. Much of the potential value of the new Tay Road Bridge is going to be lost, it has been recognised lately, because no suitable road is planned to link it with the Forth Road Bridge. The extra taxes on whisky and becr strike at two industries of key importance to Scotland. The new National Institute of Advanced Technology is likely to be held up. It must be remembered that all this has to be taken in connection with the new Selective Employment Tax, which will have particularly harsh effects here
- j j tries in the local economy,
tance of service indus r pecans Ae
nae euuiiay cotuias the central belt, in the reg nena
oa me any hops of a solution to the pre sige
saaedoe farther - with every blow to the building ustry
isi the Scottish Tory
summing-up came, surprisingly, from are
bie Peerteheenngr ste Serareane to redeployment! and Posey isa és
he “ uieat that, "...in Scotlamd there was no scope ee -. te
cad tie oibast acid Go GO auabe @ttll aove perels abt Ue tland
j er
Senttish TUC Summer School The Scottish TUC has ager eee sage ahah
School at St.Andrews. As envisaged by Mr.James Jack . — pages
approximately 60 trade unionists attending, the limits wry saben
iaboae movement appeared to be that ofthe et aces _—— neaPhens
not tomorrow, but some day". He also Gell. «’eantine te
ici icy, to defend the Prices and Incomes ? es
oe oe as (lie ought to be prevented from pressing claims during th
standstill period.
re
At a later session it was made enero ee as oe Retake,
"lage behind imcreases in produc . , sha
are ag was necessary for the sireieatind are Senha He estimated that
disparity would be corrected in two years’ time.