29 MAY 1936, Page 35

SCOTLAND'S INDUSTRIAL FUTURE

SCOTTISH SUPPLEMENT

By SIR WILLIAM GOODCHILD

SCOTLAND has reached a critical point in her industrial development. Nearly 25 per cent, of the insured workers in the industrial belt of South West Scotland, comprising the Scottish "Special Areas," are idle. The corresponding figure for the whole of Scotland is as high as 20 per cent. Unemployment is a national tragedy in Scotland which leaves few homes unaffected, directly or indirectly. This situation has been the source of concern to the leaders of Scotland's industrial and economic life, and to the Secretary of State for Scotland, Sir Godfrey Collins. With a view to exploring the ground, a Scottish Economic Advisory Committee has recently been appointed under the Chairmanship of Sir James Lithgow, head of the well-known firm of shipbuilders on the Clyde. This Committee, which represents a variety of industrial and financial, interests and includes labour members, will have the task of diagnosing the disease and suggesting remedies. For it would appear,. on a review of the facts, that apart- from- the economic 'depression which has affected all the civilised countries of the world, there may be certain other troubles from which Scottish economy is suffering.

As compared with other European countries of similar size,. Scotland is peculiarly situated. On the one hand, she has the great benefit of the vast free English market and of British tariffs and trade agreements. On the other hand, it can scarcely be denied that the unfettered competition of English. enterprises, .affecting all Scottish industries save .those, such as steel, with a national organisation, makes the pace a killing one, which only the strongest and ,fittest can maintain. Further, the mere existence of her -great neighbour just over the border constitutes a traditional magnet to Scots who are bent on making a career, and, tends to deprive Scotia id of her most enterprising sons. Again, the hardships and difficulties of life in the North of Scotland have accentuated the drain of rank-and-file emigration—it is A striking fact that the last census showed a reduction of 40,000 in the population of Scotlanda unique circumstance, I think, in the current history of European nations, and one the effects of Which persist, although the tide of Scottish migration has showed signs of turning in,the-last few years.

In certain fundamental spheres, Scotland has a high industrial tradition which can never lightly be disputed. Her heavy industries, steel manufacture, engineering, shipbuilding, coal-mining, can face any' competition, and "built on the -Clyde" is a world-Wide -guarantee of enduring excellence in craftsmanship. But this very predominance in the, basic industries brought with it a danger. Heavy industry was bound to contract when the slump came. Certain statistics give serious ground for thought. For instance, in March, 1925, 'there were 132,424 wage-earners on the books of the Scottish col- lieries. In - September, 1935, this figure had sunk to 82,036. In 1923 the Scottish output of pig-iron amounted to 768,500 tons. In 1933 this output. came to only 218,700 tons. The persons emplOyed in-. Scotland in• connexion with manufactured iron :amounted.to-4,308 in 1923, and in 1933 to only 905. The shipbuilding output on the Clyde stood at 523,322 tons lo,,.1025,And at only 5%268 in 1936* Ia September, Jthe pereentege -43U -unemployed insured persons in the shipbuilding and ship= repairing industry reached the high figure of 44.8 _per cent.

There- have since been welcome- indications of tecovcry. The nadir of depression has been passed. Further, the Government's Defence Programme is likely materially to help the Scottish Special Areas and the other inanufacturr ing districts of Scotland.. But the heavy industries; which must-'depend largely on the export trade, are ini7: likely, in view of- world, conditions, to be in a position Within a measurable period to revertto-their great dad and absorb the pool of nearly 300,000 unemployed Scot: tish workers. It is a commonplace that there has been ti. vest growth of light industry in England since the V4'ar: It has been computed that about 1,000 new factories have Conic into being in and round London in the post-Wa period. The Midlands have shown a similarly striking development. But Scottish industry seems to have missed this opportunity of .expansion. For why arc therd no Scottish aeroplanes and Motor-cars ? And what about! bicycles and gramophones, wireless and electrical appar.;. alus, artificial' Silk, mass-productibn of articles of domestic') Utility ? Certain of these industries are not unrepresented. in Scotland, but she can scarcely be said to play her full, part in supplying the innumerable requirements of daily, life which modern standards of living have elevated to the. rank of necessaries. Why is it that' in the period Irani: September, 1931, to December, 1934, 95 factories were closed in Scotland, • aS against only' 46 noir factories. opened ? Has there been a lack of enterprise, a failure: in adaptability ?

• It looks on the face of it as though this may have' been the ease. But there is no obvious reason why the situation should not be improved, once it is understood.', Scottish employers and workers have a far-reaching industrial background, the country is abundant ly: equipped with raw materials suitable for a variety of: purposes, with cheap power, light, transport and other: facilities. There is a large reservoir of the best labour' in Great Britain. In the last resort, everything depends' On private enterprise. But something can be done to assist individual initiative: The Economic Committee,' acting in liaison with the Secretary of State for Scotland and the Commissioner for the Scottish Special Areas,'' is endeavouring to constitute a modern Trading Estate' in Scotland where factory accommodation will be mink' available to nascent or expanding industries in a location supplied with all the necessary facilities. To be linked ' tip with this is the Government's scheme for advances to new industrial undertakings under the Special Areas (Reconstruction) Agreement Bill at present before Parliament. These developments should be of value in encouraging modern industries in Scotland. But there are other spheres in which much requires to be • done, for instance, the Tourist industry, in which a • country such as Scotland, with its picturesque scenery, : should find a far greater source Of revenue than at present. • There is also the problem of economic decay in the .Highlands, against which at present there stands a large ' .question-mark awaiting an answer. The Scottish fishing 'industry is still in the throes of reconstruction.

Scotland is taking stock of her position. She was • never a defeatist country ; diffieulties_eali.out the best qualities of the Scottish -eliaracter._ tititelligejice and enterprise on the part of-inientita*IriTS-, coupled with clue training and adaptation of labour, , there is no reason why light modern industry should- not develop in Scotland on a satisfactory scale as an adjunct to her heavy industries. It will demand a conscious effort, but this effort must be made if Scottish unern- pinyment is to be reduced to reasonable diniension The needs of The situation are imperative. • - This problem of industrial evolution . to. meet new conditions is, .of Course, not peculiar to Scotland, although vital to her. It applies with equal force to the Special Areas of England and Wales. The revival of all these * Areas, English, Scottish and Welsh alike, is a matter of ,national concern which calls for national thought . and national planning. For the industrial life of Great i-Britain is a living whole, and it is to the benefit of the Whole that each constituent part should flourish. Nor is it politic on national grounds to concentrate industry in a congested mass in the South, exposed to attack :from the air, and neglect the safer northern regions . with their long experience of highly developed industrial undertakings.-