§ 19. Mr. Kinnockasked the Secretary of State for Wales what are his proposals for relating industrial development expenditure in Wales to job provision.
§ 7. Mr. Johnasked the Secretary of State for Wales if he will list the steps he is taking to secure for Wales the maximum number of jobs from the aid available.
§ Mr. Peter ThomasThe policies of the Government, as announced by my right hon. Friend the Chancellor of the Exchequer on 27th October, are intended to increase the effectiveness of assistance to industry in Wales and thus to create the maximum number of jobs from that assistance. The wider use of the provisions of the Local Employment Acts is directly related to the creation of additional jobs.
§ Mr. KinnockWhile thanking the right hon. and learned Gentleman for that answer and taking encouragement from it for future Welsh development, may I ask him whether he is aware that both he and the Chancellor of the Exchequer have given overwhelming emphasis, in connection with regional development policy, to the value of free depreciation and depreciation allowances? Is he also aware that since these are directly related to profit-making capital this will have comparatively little effect on the creation of job provision in Wales?
§ Mr. Peter ThomasI agree with the hon. Gentleman that great emphasis has been placed on the benefits of free depreciation, for that, of course, encourages viable industrial investment, which should assist employment in Wales at the moment. As to the grants available under the Local Employment Acts, they are directly geared to employment.
§ Mr. JohnWould the right hon. and learned Gentleman not agree that by abolishing the regional employment premium he has abolished the only form of assistance which has discriminated in favour of the provision of jobs as opposed to the provision of capital equipment?
§ Mr. Peter ThomasNo, that is not strictly so. In any event, the regional employment premium was wasteful, and the amount taken out of Wales by selective employment tax is far more than the benefits received from the regional employment premium.
§ Mr. John MorrisCould the right hon. and learned Gentleman, first, help us and reveal the Government's concern by disclosing what level of unemployment in Wales is acceptable to them; and, secondly, answer the question I put to the Minister of State last Wednesday and say whether the Government's proposals of last October will help or hinder the plight of small new firms in Wales?
§ Mr. Peter ThomasThere are two questions there. The first one is on the level of unemployment, which for the last three years has been hovering at about 4 per cent. and is far too high and should be reduced. The other question is about small firms. It depends very much on the small firms. Some will have liquidity problems, but others will greatly benefit from these measures.
§ Mr. McBrideWould the right hon. and learned Gentleman say what reply he has sent to the Welsh small firms section of the Confederation of British Industry which recently saw him and raised this matter of employment when he tried to pass the buck to the Secretary of State for Trade and Industry? Would he now say what suggestions he has about the industrial estate in my constituency? I have written to him and to his right hon. Friend about this. They have done nothing but pass the buck. Will they stop doing that and do something about it and give it full-time attention?
§ Mr. Peter ThomasI am afraid that I do not know of the meeting to which the hon. Gentleman is referring.
§ Mr. George ThomasOn a point of order. As this is the last time, Mr. Speaker, that you will be presiding during Welsh Questions, may I on behalf of all Welsh Members wish you, Nadoligllawen a blwyddyn newydd dda, and good wishes to you.
§ Mr. SpeakerOrder. I only hope that the translation was correct. It sounded frightening to me in its original form.