HC Deb 11 May 1981 vol 4 cc471-3
7. Mr. Wigley

asked the Secretary of State for Wales if he will make a statement on the effect of the Government's economic policies on Wales.

Mr. Nicholas Edwards

The massive programme of factory building, infrastructure improvement and financial support for industry has been designed to cushion the worst effects of the recession and assist change. As a consequence, even in the last year we have been able to attract a large number of new investments and with the general improvement in competitiveness and good industrial relations in Wales we are now well placed to take advantage of the recovery.

Mr. Wigley

Will the Secretary of State name one policy that has actually worked for Wales?

Mr. Edwards

There is no doubt that the improved competitiveness of British industry provides the greatest chance of success in the world. People will buy our goods only if we are competitive and if they want to buy them. The improved competitiveness throughout British industry is the most hopeful factor for the industrial recovery of Britain.

Sir Raymond Gower

Does not my right hon. Friend have evidence that many overseas visitors have been greatly impressed with the building of new factories and the clearance of sites in many parts of industrial Wales?

Mr. Edwards

There has been not only a great appreciation of the industrial sites that we are able to offer, but recognition of the excellent industrial relations in many of the existing plants in Wales. I am glad to say that the senior management of Inmos told me only this week that they are having no difficulty in attracting the highly skilled personnel that they need for their plant in Wales. That augurs well for the future.

Mr. Ioan Evans

Have not the Government's economic policies had disastrous effects on employment prospects, with a more than 80 per cent. increase in unemployment in Mid-Glamorgan since the Secretary of State took office? Will he seek to restore to those areas the special development area status of which they have been deprived by the Government's policies?

Mr. Edwards

The future prospects of the area lie in the attraction of inward investment and the growth of companies. It is encouraging that companies such as Yuasa are setting up operations, that such companies as Smiths Industries are transferring new work to Ystradgynlais and that many other encouraging developments are taking place.

Mr. Garel-Jones

Will my right hon. Friend confirm that one of the specific areas in which the beneficial effects of Government economic policy may be seen is the Llanwern steel works, where the level of productivity is equal to, or better than, most of our competitors in Europe?

Mr. Edwards

It is that fact that gives that steel works a real chance of survival in a highly competitive world industry.

Mr. Alec Jones

Does the right hon. Gentleman agree that if he gave a complete answer on the effect of the Government's economic policies in Wales it could be summed up in one word—"disastrous"? That was the judgment passed on him and his Government last Thursday. It is a judgment that will be echoed by most political parties in Wales and by most organisations. The only people in Wales who support the Government's policies are Tory Ministers and some Tory Members. Will he now answer the supplementary question that I asked him previously? Why has there been a change in policy for the capital expenditure of local authorities on MSC schemes? The right hon. Gentleman has boasted about the schemes but the change will place many of them in jeopardy.

Mr. Edwards

While the right hon. Gentleman sells Wales short once again, overseas investors such as Mitel are expressing their confidence in the future.