HC Deb 02 February 1981 vol 998 cc2-4
2. Mr. Barry Jones

asked the Secretary of State for Wales what has been the increase in the total of unemployed in Wales since May 1979.

Mr. Nicholas Edwards

Between May 1979 and January 1981 the level of unemployment, seasonally adjusted and excluding school leavers, increased by 52,200.

Mr. Jones

With the publication of these damning figures how can the Secretary of State wish to remain in a hard-faced Cabinet which is systematically denuding Wales of its industrial base? What hope, help and encouragement can the right hon. Gentleman offer to the steel workers, textile workers, paper makers and Vauxhnll car workers in my constituency, who pathetically seek work, particularly in the town of Flint, where there is 32 per cent. male unemployment and where fathers compete against sons for jobs? Will the right hon. Gentleman consider locating the new Nissan factory on the banks of the Dee in my constituency?

Mr. Edwards

The unemployment situation in the hon. Gentleman's constituency is serious, though Flint is part of a travel-to-work area where unemployment is at 15.7 per cent., not 32 per cent. We have to look at travel-to-work areas if we are to make proper and reasonable assessments. The principal hope for the recovery of this country's industry and economy lies in increasing competitiveness. Already many sections of the British Steel Corporation have shown that that offers the best hope for recovery. The choice of site for Datsun is for that company to make after a proper assessment of its requirements.

Sir Anthony Meyer

Is my right hon. Friend aware that, despite the damning remarks of the official spokesman for the Labour Party, the proposed Nissan investment, would be extremely welcome in Wales, particularly in North Wales? Which does he consider to be more helpful to the cause of employment in Wales—the policy of the Labour Party of getting out of the EEC, or the policy of Plaid Cymru of discouraging business men from coming to Wales on the ground that their second homes will be most unwelcome?

Mr. Edwards

I should not wish to make a choice of evils. However, I attended a luncheon given by the Development Corporation for Japanese business people, during which I emphasised how welcome inward investment by a major Japanese concern would be. I repeat that it is for the company to choose its location, though clearly there are many sites and areas in Wales that it will consider. It will be the job of everyone concerned to draw attention to the benefits that will be obtained at those sites. We shall seek in every way to meet the requirements of that company.

Mr. Wigley

Will the Secretary of State come back from the red herring, or the blue herring, that has been raised, to the real crunch of the question? He referred to the "competitiveness of British industry". Does he accept that getting this competitiveness often means closing down branch factories in areas such as Wales, and that if there is a future for the economy it is often after branch factories have been closed and there is nothing left? In what way will he ensure that there is an adequate regional policy to keep the economy going so that we have something to expand when the expansion comes?

Mr. Edwards

I have always made it clear that I believe in a continuing regional policy and in assisting and cushioning the effects of change. The hon. Gentleman said that remarks about inward investment were a red herring. Far from being a red herring, it is a matter of considerable significance and importance that a major Japanese company should be considering investing in a development area in this country as part of its entry into Europe, and that other overseas companies should also be considering major investment in Wales.

Mr. Alec Jones

The Secretary of State is fortunate to have the ability to avoid making a choice of evils, but for the 145,000 unemployed in Wales there is little choice. I can understand the Secretary of State choosing the seasonally adjusted figure, but it is a fact that there are 62,500 extra unemployed in Wales as a consequence of his policies. Will he confirm that whilst the percentage figure is given as 13.4, that masks many areas of much higher unemployment, including Tenby which has 22.5 per cent. male unemployment? Will the right hon. Gentleman say whether that is what he promised the people of Tenby and of Wales when, during his election campaign, he said that he would restore the incentive to work?

Mr. Edwards

I used the seasonally adjusted figure for the same reason as the right hon. Gentleman always used it from this Dispatch Box when he was in Government during a period when unemployment in Wales was doubling and, incidentally, when unemployment in my constituency was at about the same level as it is at present.

Mr. Anderson

Does the Secretary of State agree that in this competition for the Nissan investment it would be wrong if West Glamorgan were to lose because of continued uncertaintly about its special development area status? Will he, particularly in the light of the Velindre development, give urgent consideration to upgrading the status of West Glamorgan.

Mr. Edwards

As the hon. Gentleman knows, upgrading is being considered by the Government. I shall bear in mind the representations made by the hon. Gentleman. He will appreciate that in the selection of a location many other considerations, including the availability of a suitable, very large location, have to be borne in mind.