HC Deb 18 October 1971 vol 823 cc350-2
11. Mr. Abse

asked the Secretary of State for Wales what steps he has taken to improve the employment prospects in Cwmbran, following the intended closure of G.K.N. Cwmbran Limited; and whether it is now his intention to include Cwmbran within the Welsh development area.

Mr. Peter Thomas

I am in close touch with the Chairman of G.K.N. and have stressed the serious consequences of the impending closure. I will certainly keep the status of Cwmbran under review as the situation develops.

Mr. Abse

Will the right hon. and learned Gentleman stop dithering? Is he or is he not aware that the consequences of this closure for Cwmbran could be an unemployment rate of between 10 per cent. and 15 per cent.? Is he not further aware that the whole of Wales is weary of considering the problem and that everything that is occurring is being lamentably assisted by the Government's failure in economic policy? What does he intend to do? Will he or will he not make Cwmbran a development area?

Mr. Peter Thomas

Of course I am aware of the serious consequences. I mentioned that when I answered the hon. Gentleman's question. As he knows, G.K.N. has been losing a considerable amount of money over many years, and last year it lost about £1¼ million. I take it that the hon. Gentleman is not suggesting that that was the result of any measure taken by this Government.

Mr. Kinnock

Since the unemployment consequent upon the closure of G.K.N. at Cwmbran is now calculable, as my hon. Friend says, almost to the exact percentage, will the Secretary of State give a far more reassuring answer and at least make the gesture of turning Cwmbran into a special development area so that it can catch anything that is going?

Mr. Peter Thomas

As I said in answer to the Question, I will certainly keep the status of Cwmbran under review as the situation develops.

Sir G. Nabarro

Would my right hon. and learned Friend not bear in mind that this is very far from being a local, parochial problem? Has he not learned in the last 24 hours that the output of the British Steel Corporation, the activities of which affect this area, has declined by 10 per cent. in tonnage output of ingot steel over the first nine months of this year as compared with the equivalent period in 1970, and that a downward trend of our steel industry on this scale is calamitous all over the country, and not only in Cwmbran?

Mr. Peter Thomas

I am aware of this downward trend, but the situation of G.K.N. at Cwmbran has nothing to do with the steel industry.