HC Deb 30 March 1981 vol 2 cc5-6
5. Sir Anthony Meyer

asked the Secretary of State for Wales what has been the total of investment in Wales since 1972 by firms based outside the United Kingdom; and how many jobs in Wales have been created by this inward investment.

Mr. Michael Roberts

Investment by overseas-based manufacturing firms in Wales since 1972 is known to be in excess of £500 million. The projects in question currently provide over 11,000 jobs.

Sir Anthony Meyer

Does not that illustrate the importance of continuing to attract such investment, particularly when a very small amount—less than 10 per cent. of public expenditure—goes into investment from our own resources? Is it not clear that if we were to withdraw from the EEC such investment would dry up altogether? Britain, and particularly Wales, is attractive to foreign investors as a means of access to the EEC.

Mr. Roberts

I have no doubt that overseas firms are interested in Wales because of our membership of the EEC. The Ford plant at Waterton in South Wales is an excellent example. It is irresponsible to talk about withdrawal, because it would cost many jobs.

Mr. Roy Hughes

Does the hon. Gentleman appreciate that, although the referendum campaign received multinational sponsorship, some of us were prepared to judge the Common Market on its merits? Does not the evidence show that the decision to join the Common Market was the most disastrous one to be taken by any post-war British Government?

Mr. Roberts

It is generous of the hon. Member for Newport (Mr. Hughes) to judge the matter on its merits.

Mr. Alec Jones

Does the figure given by the Minister include the £10 million for the development of the massive Hoover factory at Merthyr—a factory designed to produce goods for the Common Market, but which to date has produced nothing? Does the figure also include the investment which has been made since 1972 but which has been aborted as a direct consequence of the Government's actions? Will the hon. Gentleman, who is obviously a keen student of the newspapers, say whether he has seen the study conducted by University College, Bangor, which shows that the effect of the Budget on Wales will mean unemployment of 200,000 by the end of this year? If the hon. Gentleman does not want to make any forecast, may I ask whether he has any reason to believe that that figure of 200,000 will not be reached?

Mr. Roberts

I have no intention of making any forecast of unemployment at any point in future.

Mr. Tom Ellis

Does the Minister agree that inward investment in Wales in recent years would have been better if the Welsh infrastructure, particularly communications, had been better? If so, will he have a word with the Chancellor of the Exchequer, with a view to implementing an immediate programme to develop the Welsh infrastructure?

Mr. Roberts

There can be no question but that investment would have been greater if our infrastructure over the last few decades had been better. The Government are doing all that they can to ensure that the road programme is maintained. Advance factories are also being set up. I think that we are doing a good job in that respect in Wales.