HC Deb 25 April 1977 vol 930 cc710-1
15. Sir A. Meyer

asked the Secretary of State for Industry whether he will now grant development area status to the whole of North-East Wales.

Mr. Varley

On 14th April I announced a number of changes in the assisted areas, including the designation of the Shotton travel-to-work area as a development area.

Sir A. Meyer

Why has the Secretary of State, at this thirteenth hour, given development area status to Deeside and withheld it from the North Wales coastal belt where unemployment is at an even higher level? Taken in conjunction with what the right hon. Gentleman did for Grimsby, does that not indicate that in this matter he is concerned solely with party advantage? Is not this proof that the Labour Party has given up all hope of ever winning either Flint, West or Denbigh and is now worried about losing Flint, East?

Mr. Varley

It is very difficult to please the hon. Gentleman when it comes to the part of the country that he represents. He was part of a delegation a few months ago which asked that we should give urgent consideration to designating Shotton as a development area. We have done that. On many occasions he has made representations to the Government and the British Steel Corporation about maintaining steel-making at Shotton. When we do that, however, he carps and complains. I have to have regard to a number of factors when designating areas as assisted areas, including the actual potential for industrial development. That was one of the factors that I took into account in deciding that I could not upgrade Rhyl.

Mr. Wigley

Will the Secretary of State accept that whereas we welcome, as far as it goes, the decision in relation to Shotton, it creates certain problems further west, where the differential in trying to attract industry has been eroded? In addition to that, there are increased travelling costs—petrol charges and so on—that are causing great difficulties. Will he, therefore, consider the possibility of a scheme to aid industry with regard to travelling costs?

Mr. Varley

If the hon. Gentleman is referring to the cost of petrol, that is not a matter for me. I do not have direct ministerial responsibility for it. But I have found over the relatively few years that I have been in the House that when changes are made in assisted area boundaries some difficulties are always created, and one must strike a balance. I am sure that this is the case with the eight areas that I upgraded on 14th April, but by and large I think that the package has been well received by the country as a whole.

Mr. Wyn Roberts

Is the Secretary of State aware that all of us who represent North Wales constituencies are anxious that the whole of the North-West should have development area status, because there is high unemployment all along that coast? Is the right hon. Gentleman fully convinced that the Welsh Development Agency is doing all it can to improve employment prospects?

Mr. Varley

The hon. Gentleman is asking for an increase in public expenditure. No doubt he will reflect on that. Questions concerning the Welsh Development Agency must be directed to my right hon. and learned Friend the Secretary of State for Wales, as I am sure the hon. Gentleman is aware. As far as I am concerned, that organisation is doing a fine job.