Economic Activity (Hansard, 21 April 1980)

§ 1. Mr. Barry Jones
asked the Secretary of State for Wales if he is satisfied with the level of economic activity in Wales.

§ The Secretary of State for Wales (Mr. Nicholas Edwards)
No, Sir. The Government's economic polices are designed to reduce inflation and create the conditions for soundly based economic expansion.

§ Mr. Jones
In Wales, is not the consequence of the Budget a decline in economic activity and a likely surge of unemployment? Will not this hurt the economy of Wales, given the steel cutbacks that we have already had? Did the right hon. Gentleman make clear to his Cabinet colleagues that the Budget 2 would be a deeply injurious blow to the prospects of working people in Wales?

§ Mr. Edwards
I do not accept that the Budget is damaging to Wales. It is designed to restore economic health after the mess left to us by the previous Government and to defeat inflation. The Budget contained a notable package of measures for small businesses which will be of particular advantage to Wales. The hon. Gentleman will be aware that the unemployment trend was rising steeply when we came into office.

§ Mr. Geraint Howells
After 12 months at the Welsh Office, is the Secretary of State now in a position to say who is responsible for the high unemployment in Wales?

§ Mr. Edwards
As I pointed out in my first speech from the Dispatch Box, the first brief that I was given on entering office warned that unemployment would go on rising substantially, that we were on a rising trend of unemployment in Wales and that unemployment had more than doubled under the previous Government. It will take time to change round the Welsh economy after the mess left by our predecessors.

§ Sir Anthony Meyer
In view of the great interest in economic activity displayed by Labour Members, will my right hon. Friend say whether they have supported his request to the TUC to call off its day of national sabotage on 14 May?

§ Mr. Edwards
I am bound to say that I hope they have. Perhaps one or other of the Labour Members will say whether they support this lunatic step, which can do only more damage to the economy in Wales.

§ Mr. Wigley
Following his visit to Gwynedd last week, does the Secretary of State now fully appreciate the likely drop in economic activity in that part of Wales? Will he bring forward an urgent programme of capital expenditure in the public sector, in order, at least in the short term, to make up for this fall?

§ Mr. Edwards
I am very much aware of the serious problems facing that part of Wales. We had a useful and constructive discussion with the local authorities, and I value the way in which they approach these problems. We shall consider very carefully the proposals that they put to us. I have already told the hon. Member that we shall be reviewing regional development status in areas when the situation changes.

§ Mr. Alec Jones
I am sure that the right hon. Gentleman will be pleased to know that at least there is unanimity among us over our dissatisfaction with the level of economic activity in Wales. With 92,000 unemployed, and 50,000 redundancies announced since the Secretary of State took office, how can he justify the cuts in public expenditure of £26 million in industry, energy, trade and employment between this year and 1982–83? Can he tell us what effect this is likely to have on economic activity in Wales?
May I add that Labour Members support the trade unions and the people of Wales in their determination and in the actions that they propose on 14 May?

§ Mr. Edwards
I think that the statement the right hon. Gentleman has just made will do considerable additional damage to the Welsh economy. [Interruption.] It is the kind of encouragement and incitement to industrial damage and disruption that can only be harmful to Wales. It is completely in line with the previous language used by right hon. Gentlemen on the Opposition Benches about the creation of industrial deserts. It seems to be their object to worsen the atmosphere in Wales and to make things more difficult.
4 As for the redundancy notifications, the right hon. Gentleman will be aware, as he has quoted a figure of 50,000, that these are not a firm guide to actual job losses; indeed, some 6,000 of those redundancy notifications have been withdrawn since they were made. We have announced—and I have announced—a massive programme of additional measures. Expenditure on the Welsh Development Agency is up, and we have announced a very large measure of remedial action in the steel closure areas.