§ 27. Mr. C. Hughesasked the Chancellor of the Exchequer if he will make a statement on the proposal to build, out of Development Commission funds, a factory for Messrs. Cableform Limited at Llangefni.
Mr. AmoryOn 27th May last year the Treasury agreed to make a loan from the Development Fund to Welsh Agriculture and Industries, Limited to build a factory at Llangefni for occupation by Messrs. Cableform, Limited. Negotiations between W.A.I., Ltd., and Messrs. Cableform on the tenancy agreement have since been progressing and it was until recently hoped that they were on the point of completion. However, I understand that Messrs. Cable-form have found it necessary to speed up their production programme to meet their commitments; they have therefore given notice that they are no longer interested in this project and I understand that they have taken vacant premises elsewhere. I recognise the keen disappointment that this news will bring to Llangefni and I greatly hope that other projects will be developed which will help to relieve unemployment in the area.
§ Mr. HughesIs the Chancellor aware that the breakdown in negotiations will be a profound disappointment to the people of Anglesey where unemployment, as he is aware, is running at between 11 per cent. and 12 per cent. of the insured population? Will the Chancellor consider allowing this factory to be built as an advance factory, because we are confident that in due course it would be tenanted, and that that is the only way in which to solve the problem we have to face?
Mr. AmoryIn replying to the first part of the hon. Gentleman's supplementary question—yes, I agree with him. I realise that this will be an acute disappointment to the local people, as indeed it is to me. As regards the last part of the supplementary question, I am afraid I could not hold out any hope to the hon. Gentleman that it would be prudent to build a factory, as it were, "on spec." The chances are that the specification of the factory would be unsuitable for an applicant unless it were known in advance the type of business which might be attracted.
Mr. H. WilsonIs not the right hon. Gentleman flying in the face of all experience when he says that? Is he aware that when we were in office we built factories not only in Anglesey but elsewhere in that part of the world? Also we built advance factories in many—[HON. MEMBERS: "That was just after the war."]—I agree there was no stagnation in our industry then—we built advance factories in many parts of the country and they were rapidly snapped up by industrialists, because this gave them the possibility of starting production without waiting a long time for the factories to be built. Further, is the right hon. Gentleman aware that in this case the delay has not only been the prospective time required for building but what seems to have been the unconscionable delay in the negotiations between the Treasury and the interests concerned?
Mr. AmoryAs regards the first part of the supplementary question, I think the right hon. Gentleman will agree that the first year or two after the war were extremely abnormal ones in this respect. In reply to the second part of his supplementary question, I would say that I know of no unreasonable delay on the part of any of the authorities concerned in this case, but if the right hon. Gentleman has any evidence of any such delay, I should be grateful if he would let me know.
Mr. WilsonYes, Sir, but is not the right hon. Gentleman aware that even in 1950 and 1951 we were building advance factories, that we let them all before they were complete, and that there was no problem about specifications? Is not the right hon. Gentleman also aware that the reason for this was that industry was expanding in this country at that time, and if he would embark on expansion now, we would have no difficulty in bringing full employment to these areas?
Mr. AmoryI am afraid I cannot share either the right hon. Gentleman's opinion on this matter or his conclusions.