HC Deb 02 February 1981 vol 998 cc6-8
7. Mr. Best

asked the Secretary of State for Wales if he is satisfied with the level of funds coming to Wales from the European Economic Community.

Mr. Nicholas Edwards

Apart from the moneys from the budget settlement, the European Community has committed to Wales some £711 million in identifiable grants and loans since accession, and further amounts are in the pipeline. The Community has already made a substantial direct contribution to the development of Wales, which we shall take all possible steps to expand.

Mr. Best

Is my right hon, Friend aware that, as a separate part of the United Kingdom, Wales does much better out of the EEC than does any other part? Will he take time today to make it clear to the people of Wales that one of their representatives, the right hon. Member for Ebbw Vale (Mr. Foot), is seeking to to deny them that source of finance by his disgraceful policy of wanting to take us out of the EEC, which appears to be emulated by most of his right and hon. Friends—although one can never be certain these days? What effect does my right hon. Friend believe that that would have on the jobs being created in Wales as a direct consequence of European funds?

Mr. Edwards

My hon. Friend is right. To give an example, Wales has benefited by receiving about 16 per cent. of the United Kingdom quota of the ERDF. As I said before, perhaps even more important at present when we are seeking inward investment is that Nissan-Datsun, Mitel and other companies would not be contemplating investment if they believed for one moment that we would leave the European Community.

Mr. Anderson

How can we in Wales be satisfied with the total amount as long as so small a part of the EEC budget is devoted to the regional and social funds, which particularly affect Wales? In the coming negotiations, which is the ideal opportunity, will the Secretary of State and his colleagues seek to redirect the budget away from the three-quarters dependence on agriculture and in favour of the regional and social funds.

Mr. Edwards

It must be in the interests of the United Kingdom to restrict and contain the burgeoning expenditure on agricultural support that has taken place over the years and to see more of it devoted to the purposes that the hon. Gentleman names. I agree with the general line of his argument.

Mr. Hooson

As evidence was given to the Welsh Select Committee suggesting that liaison might be improved between local authorities in Wales and the Welsh Office on the tapping of European funds, is my right hon. Friend satisfied that after some six months' experience there has been an improvement in the liaison?

Mr. Edwards

I do not believe that there is any great shortcoming there. The Welsh Office maintains close contact with Europe. I pay a number of visits to the European Community to discuss matters of importance to Wales. We provide all possible information to local authorities about the assistance available. I am glad to say that more and more of them are putting forward worthwhile schemes and that there is a good take-up of the available funds.

Mr. Barry Jones

Will the right hon. Gentleman back his fine words with urgent action by locating jobs in, say, my constituency, particularly in the towns of Flint and Holywell, where there is a crisis, with male unemployment in Flint running beyond 30 per cent? In order to avoid a Jarrow situation, can he tell us how the new jobs will be delivered?

Mr. Edwards

The hon. Gentleman cannot really believe that we can direct international companies to set up in specific areas. Instead of talking about a Jarrow situation he would do his constituents a greater service by drawing attention to the enourmous attractions of his part of Wales, the excellent record of the labour force and the good industrial sites and communications. He seldom mentions those factors. He merely draws attention to the problems that the area faces.

Mr. Alec Jones

As we are having this orchestrated eulogy of the EEC, if we are to draw up and judge a fair balance sheet, can the Secretary of State tell us, in addition to the grants and loans that we receive, what our membership costs Wales? Has he seen the Giolitti report, which indicates that over the past 10 years the 10 richest regions of the EEC have become richer and the 10 porrest regions, including Wales, have become poorer? Does the right hon. Gentleman accept that that is because the CAP still takes the lion's share of the budget and the regional and social funds are very much poor relations? It is all very well to talk about the matter, but what steps will the Government take to redress the balance?

Mr. Edwards

The European Community is by far our largest and fastest growing market. That is the greatest guarantee for the future employment of our people. It was with a sense of astonishment that I read recently of the right hon. Gentleman's remarks about proposed Japanese investment in the European Community through a base in Wales, which might have been directly designed to discourage that.

Mr. Alec Jones

If the right hon. Gentleman is in doubt about what I said, and as he appears to have read only half of my speech, may I ask him to read the whole of it, so that he can see that I said that because of our experience we supported Japanese firms but that we should want to know more about each individual application instead of merely giving blanket approvals?

Mr. Edwards

I note what the right hon. Gentleman says. I am glad that he is having second thoughts. I hope that the right hon. Member for Salford, West (Mr. Orme), who speaks in a similar manner, is also having second thoughts.