HC Deb 30 June 1980 vol 987 cc1059-61
1. Sir Anthony Meyer

asked the Secretary of State for Wales what discussions he has had with the chairman of the Welsh Development Agency regarding the level of advance factory construction in Wales.

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

I have recently discussed with the chairman the agency's construction plans within the existing cash limit. I am glad to inform the House that the agency is in a position to start work on advance factory building totalling over 600,000 sq. ft. This is in addition to the 2.3 million sq. ft. already planned to start this year. 350,000 sq. ft. will be built in the steel closure areas and the remainder will represent a very substantial start on the WDA's fifth advance factory programme outside the steel closure areas. The agency will also be able to resume its land reclamation programme.

Sir A. Meyer

Is my right hon. Friend aware that that is very good news? In view of the unique efficacy of advance factory construction, both in terms of flexibility and in terms of being highly selective, is he satisfied that the existing limits on the Welsh Development Agency are adequate to enable it to deploy its full resources for this purpose?

Mr. Edwards

By the announcement today we are ensuring that the existing limits are used to the hilt in the current financial year. However, we are also encouraging the agency to raise additional financial resources from the private sector, and I am confident that it will be able to do so.

Mr. Coleman

Is the right hon. Gentleman aware of the difficulties that are occurring in West Glamorgan—apart from those created by the Secretary of State for Wales—following the liquidation of Messrs. Potters, the builders? Will he bring this matter to the attention of the WDA in order to secure new contractors, so that these factories, which have already been announced, can come into operation much more quickly than might othewise be the case?

Mr. Edwards

I shall certainly discuss that matter with the chairman of the WDA.

Sir Raymond Gower

I welcome the announcement of the building of further advance factories, but in view of the tremendous needs of the Welsh economy at present will my right hon. Friend consider encouraging his Department and the WDA to get together and plan ahead for the acquisition of suitable sites for advance factories in future programmes?

Mr. Edwards

I agree about the importance of having a continuing programme, and I assure my hon. Friend that the WDA is seeking additional sites. It is now clear that additional sites will be available, apart from those previously announced, for example in the Newport area.

Mr. Geraint Howells

In view of the high bank interest rate, does the Secretary of State agree that it will be very difficult to entice industrialists to mid-Wales to take over all these advance factories?

Mr. Edwards

Both in the WDA area and in the mid-Wales area of the DBRW, considerable interest has been expressed in these factories.

Mr. Hooson

Is my right hon. Friend satisfied that the exceptionally good rate of take-up of advance factories is being maintained in current conditions?

Mr. Edwards

Interest continues at a high level. Only 2.4 per cent. of the WDA's existing factories are standing vacant. I can report that inquiries and visits are continuing.

Mr. Alec Jones

I welcome the announcement of this extra space, but as the announced factories are inside the existing cash limits, we were expecting it. Does the right hon. Gentleman agree that we still have tremendous needs, which were referred to by the hon. Member for Barry (Sir R. Gower), with about 99,000 unemployed, 50,000 redundancies announced in the year and now the possible further threat to Port Talbort and Llanwern? Has the Secretary of State seen today's Western Mail, which refers to the fact that the Government's response to the existing crisis has been woefully inadequate? Will he do something about the inadequacy of all his measures?

Mr. Edwards

I do not accept that verdict. We have a substantial advance factory programme under way, and 47 per cent. of the resources for the entire United Kingdom are going to factory building in Wales. The announcement today is an indication of the intention of the Government and the WDA to see that factory programme rolling forward.

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