Welsh Development Agency

HC Deb 18 June 1979 vol 968 cc881-3

1. Mr. Canavan

asked the Secretary of State for Wales whether he has any plans to change the role of the Welsh Development Agency.

2. Mr. Knox

asked the Secretary of State for Wales what is his policy concerning the operation and funding of the Welsh Development Agency; and if he will make a statement.

The Secretary of State for Wales (Mr. Nicholas Edwards)

I have already made it plain to the House in the recent Welsh affairs debate that I do not intend to make any radical change in the present role of the WDA. However, I shall introduce safeguards over the agency's powers to buy into profitable firms, and ensure that it does not hold equity shareholdings on a permanent basis. The agency will continue to receive substantial Government funding.

Mr. Canavan

Bearing in mind that the Welsh Development Agency, like the Scottish Development Agency, has done a great deal to regenerate industry and create employment in areas of need, will the Minister resist any pressure to reduce the powers or profitable holdings of the agency, which would be crippled under the so-called radical, crazy, policies of the "mad monk" at the Department of Industry?

Mr. Edwards

I have already indicated that we believe that the WDA is doing valuable work and that we wish it to continue with that work. I have already had discussions with the WDA, which does not visualise that any of our proposals will cause it any difficulty in its current operations.

Mr. Knox

What proportion of my right hon. Friend's Department's public expenditure cuts will be borne by the agency?

Mr. Edwards

The sum of £3 million.

Mr. Wigley

Will the Secretary of State expand on that statement and explain to the House where that £3 million will come from, how many jobs will be lost as a result of that cut, and which activities of the agency will be eliminated by it?

Mr. Edwards

The cut is primarily directed towards the investment programme, but I have made clear to the agency that it has discretion as to the way in which it allocates it over its total budget. I cannot make any estimate of the likely effect on employment.

Mr. Kinnock

If the right hon. Gentleman believes that there should be no radical change, is that attitude guided by the knowledge that the other policies of the present Government will be economically ruinous for Wales and that he must retain some credibility as fighting unemployment in the Principality?

Mr. Edwards

What we have to do as a Government is to undo the massive damage done by the previous Administration. Unemployment in Wales rose under the previous Government from 38,000 when they came to office to over 101,000 last summer. It is still at 83,000 today.

Sir Raymond Gower

I thank my right hon. Friend for his statement and for certain modifications which he will introduce. Is it not a fact that the agency has on the whole behaved with great responsibility and fulfilled a most useful function? Will his Department co-operate closely with it in the interest of the Principality?

Mr. Edwards

It is because it has behaved in a helpful and sensible manner that we propose to continue with its operation and to encourage it.

Mr. Geraint Howells

The Secretary of State is well aware that the Development Board for Rural Wales comes under the jurisdiction of the agency. Has he any plans to change the role of that board, which has done excellent work in Mid-Wales during the last two years?

Mr. Edwards

As I made clear during our debate on Welsh affairs, we intend to continue with the work of the DBRW as well as that of the agency.

Mr. Alec Jones

As the right hon. Gentleman says that he expects the agency still to have substantial Government funds, will he give a guarantee that it will be provided with sufficient funds for this year and next, to enable it to carry out the £30 million advance factory programme, covering 1½ million square feet, announced by my right hon. and learned Friend the Member for Aberavon (Mr. Morris) when he was Secretary of State?

Mr. Edwards

The present building programme will not be affected by these cuts but there may be some delay in proceeding with the advance factory building programme announced in March.

Several Hon. Members

rose—

Mr. Speaker

Order. I shall not be able to call hon. Members belonging to all of the parties on every question.