Welsh Development Agency (Hansard, 5 November 1979)

§ 1. Mr. Cryer
asked the Secretary of State for Wales if he will make a statement on the operation of the Welsh Development Agency.

§ 8. Mr. Ifor Davies
asked the Secretary of State for Wales if he is satisfied with the operations of the Welsh Development Agency.

§ The Secretary of State for Wales (Mr. Nicholas Edwards)
I have already made clear to the House that I am broadly satisfied with the Agency's work in promoting economic development in Wales. I do not propose to make radical changes in its role.

§ Mr. Cryer
Will the Minister assure the House that the recent cutbacks do not herald the closure and abandonment of the Agency? Does he agree with this imaginative initiative by the previous Labour Government is an important source of assistance and development to those small firms which the Government are supposed to be aiming to help, both in Wales and the United Kingdom?

§ Mr. Edwards
The cutbacks do not herald the abandonment of the Agency's work. I agree that its work is valuable. At my request the Agency is working on plans to attract additional private finance to support the task of factory building and industrial development and to make full use of the substantial assets that it controls. I am confident that that sort of partnership between the Agency and the private sector is the right way to ensure maximum possible progress in attracting new development to Wales.

§ Mr. Davies
Is the Minister aware that the Welsh Development Agency and the Welsh Office have a proud record of achievement with land clearance schemes? Is he further aware that, due to changes in regional policy, there are many schemes now being delayed, especially in the Lliw Valley in my constituency. Will he please reconsider the position?

§ Mr. Edwards
The decisions on individual schemes must be taken by the Agency, which has to decide its own priorities. I know that it is considering the representations made by the hon. Gentleman concerning the Lliw Valley.

§ Sir Raymond Gower
Will my right hon. Friend remind the hon. Member for Keighley (Mr. Cryer) that on several occasions my right hon. Friend and many Conservative Members have expressed satisfaction with the manner in which the Agency has conducted its affairs for some years?

§ Mr. Edwards
That is so. No one would pretend that every decision it has made has been perfect. I do not believe that the WDA would pretend that, either. I am broadly satisfied with the way it has been pursuing its policies. I have had useful, valuable and constructive discussions with the chairman and members of the board.

§ Mr. D. E. Thomas
I refer to the Minister's remarks about co-operation between the public and private sectors in the work of the Agency. Does he agree that, rather than cutting back on the Agency, he should seek to strengthen its work in matters such as the impending closure of the Wallis and Linnell clothing factory in Blaenau Ffestiniog? Does he agree that the Agency should move into the factory in collaboration with the Development Board for Rural Wales, to take over the premises—which are owned by the WDA—and operate a co-operative?

§ Mr. Edwards
It would be absurd if the operations of the Agency were restricted simply by the scale of Government money made available to it. I am sure that there is room for co-operation between the Agency and the private sector, and I am anxious to develop that. As for the operation mentioned by the hon. Gentleman, the experience of the agency and of the Welsh Office in dealing with similar industrial matters does not encourage one to think that there is a great deal to be said for such rescue operations. The Agency has had some success in encouraging new investments which it has judged to be viable, but it has been much less successful when it has attempted rescue operations.

§ Mr. Alec Jones
Will the right hon. Gentleman's newly-found satisfaction with the work of the Agency continue, bearing in mind that earlier this year the Agency's budget was cut by about £3 million? In July there were changes in regional policy, and last Thursday the Government announced a cut of £10.4 million in trade, industry and employment. How much of that cut will fall on the Agency, and what effect will it have on employment in Wales? If unemployment in the United Kingdom is to rise by 300,000, does that mean that Wales can look forward to unemployment of 110,000 next year?

§ Mr. Edwards
The right hon. Gentleman has asked a number of questions. I made an additional £3.8 million available to the Agency for the current year for steel closure areas. The essential requirement for industry is to ease the burden of public expenditure, thereby easing the pressure on interest rates and on the use of funds. It is vital that the environment in which industry has to operate is so improved. The right hon. Gentleman referred to cuts—

§ Mr. Jones
I asked what part of the £10.4 million cut will fall on the Agency?

§ Mr. Edwards
I am asking the Agency to plan on the expectation that it will have about £30 million in the coming financial year.