HC Deb 05 February 1973 vol 850 cc12-3
12. Mr. Kinnock

asked the Secretary of State for Wales what proposals he has for increasing the rate of industrial investment in Wales; and if he will make a statement.

Mr. Peter Thomas

The Government's policy for industrial and regional development is designed to secure this. There is already clear evidence of its success in Wales.

Mr. Kinnock

One would need a microscope to discover that evidence. How does the Secretary of State square his answer with the fact that industrial investment in Wales has dropped by 7 per cent. in the last year and nationally by 10 per cent? Since that kind of figure gives no hope of industrial resurgence in Wales in terms of economic prosperity, how does he intend to encourage free enterprise concerns to invest when they have no confidence in him or his Government?

Mr. Peter Thomas

The hon. Gentleman will be aware of the Industry Act recently passed by this House and also of the provisions contained in the last Budget. There has been an increase of over 60 per cent. both in the number of visits and in inquiries by industrialists interested in coming to Wales. In addition, the Department of Trade and Industry has received a substantial number of applications for selective assistance under the Industry Act.

Mr. George Thomas

How does the Secretary of State reconcile his claim that things are all well and that Government policy is working out with the fact that unemployment in Wales continues to rise? Whatever be the figures for the United Kingdom, the Secretary of State knows that last month was a bad month for Wales. What measures do the Government propose to take to attract investment into the Principality?

Mr. Peter Thomas

The right hon. Gentlemen must not put words into my mouth. I did not say that all was well. I was not being complacent. A lot more needs to be achieved. But the trend is encouraging. The whole of Wales receives some form of assistance under the Industry Act. Over the past few months unemployment in Wales has dropped from 5.3 per cent. to 4.9 per cent. In the special development areas it has dropped from 6.9 per cent. to 5.7 per cent.