Small Industries

HC Deb 11 July 1977 vol 935 cc1-4

1. Mr. Geraint Howells

asked the Secretary of State for Wales if he has any further plans to help small industries in Wales.

12. Mr. Cledwyn Hughes

asked the Secretary of State for Wales what arrangements have been made to implement his announcement that a better advisory service for small firms in North Wales is to be set up; and if he will make a statement.

The Secretary of State for Wales (Mr. John Morris)

I am glad to say that arrangements have been made for an official of the Small Firms Information Service in Cardiff to attend my Department's office at Colwyn Bay on the first and third Monday of each month from 18th July onwards. He will be available to deal by telephone or by personal interview with inquiries from small firms or those wishing to enter business for the first time. Both the Welsh Development Agency and the Development Board for Rural Wales are paying special attention in their plans to the needs of small industries, and I shall continue to keep all the arrangements for providing the best possible service to small industries under close review.

Mr. Howells

I am grateful to the Secretary of State for his encouraging reply. Does he not agree that it is very difficult to find tenants for the many advance factories in Wales? In these circumstances. will he consider giving some of these advance factories to service industries? What further plans are there to help the small employers who employ between three and 10 people, who are the backbone of the rural community?

Mr. Morris

On the first point, when I met the Chairman of the Development Board for Rural Wales he made it clear that it was the Board's top priority to seek new tenants for empty advance factories. The Board has had a measure of success already. The question of extending the availability of the factories for service industries would need to be looked at. As regards general help to small businesses, about one-third of all applications for selective financial assistance approved in the last two years have been from small firms employing fewer than 50 people. The Welsh Development Agency has set up a small business unit which has made an encouraging start.

Mr. Hughes

Is my right hon. and learned Friend aware that his helpful reply will be appreciated by the smaller industrialists in North Wales? Can he give an assurance that, if there is a clear demand for the kind of service which will now become available, he will be prepared to extend the service? Secondly, will he take steps to ensure that the availability of the new service is made known through the local Press, so that all industries in the area will know that the service exists?

Mr. Morris

On the last point, Press notices have been issued today and letters are being sent to known small firms and the chambers of commerce. I have visited the Small Business Centre at Cardiff, as I said in the Welsh Grand Committee, and have invited hon. Members on both sides of the House to visit the centre to see what is happening there. If they have views on this subject, I shall be glad to hear them. Certainly, if the scheme works and is seen to be of help, I should be the first to want to extend it.

Mr. Wigley

In welcoming his announcement, may I ask the Secretary of State whether the Welsh Development Agency will be extending in bricks and mortar this change in policy? In Gwynedd a survey showed that 64 small firms needed new premises, and 62 of these firms wanted factories of between 2,000 sq. ft. and 2,500 sq. ft. Subsequent to that survey, the WDA has announced one factory of 10,000 sq. ft. and two of 5,000 sq. ft. for Gwynedd. Will the Secretary of State press upon the WDA the need for further small factory units?

Mr. Morris

The hon. Gentleman has missed the last announcement of the Welsh Development Agency in April this year, when 61 factories were announced for the whole of Wales. They included 51 factories of 5,000 sq. ft. or less. About 15 or 20 jobs would be provided in a factory of that size. The whole emphasis in the last announcement was to cater for small firms. If these factories were taken up, I would give every encouragement to the WDA to build more factories.

Mr. Wyn Roberts

While I welcome the statement as far as it goes, may I ask the Secretary of State to consider relaxing the rule that expansionary work cannot begin until grants have been fully approved? As the right hon. and learned Gentleman may know, there are two firms in my constituency which have been caught out by the timing rule.

Mr. Morris

I do not want to deal with any particular case this afternoon. If the hon. Gentleman is talking about one factory that I have in mind, he will know the history of the matter. It was made clear that, as is laid down in the regulations, firms must apply before work starts. It is a cardinal principle of the grants system, and it has been applied for many years, that approval should be given before the work starts. I am sure that the hon. Gentleman will contact me if I am wrong. That was the difficulty in that case.