HC Deb 11 May 1981 vol 4 cc468-70
4. Mr. Hudson Davies

asked the Secretary of State for Wales what is the percentage increase in the level of unemployment for the combined areas of Mid-Glamorgan and Gwent since May 1979; and what steps he proposes to take to reduce this figure.

Mr. Nicholas Edwards

The figure is 79.4 per cent. to March 1981, the latest date for which unemployment figures are available on a county basis. Government policies have already achieved a sharp reduction in inflation and improvements in competitiveness. Interest rates are already lower than in most other countries. In addition, the major programme of factory building and regional assistance is already attracting substantial new investments to the area and more can be expected as the economy moves out of recession.

Mr. Hudson Davies

Is the Secretary of State aware that it is an indictment of the Government's failure to tackle the problem that the Labour Party made such inroads in the county council elections in South Wales last week? Is he further aware that the problem will be exacerbated since 5,773 young people on temporary youth opportunities programme work will be back on the labour market and in Mid-Glamorgan alone 11,000 new people will join the labour force in the next five years as a result of the birth boom of the 1960s? Will he tackle that?

Mr. Edwards

If the hon. Gentleman wishes to bandy statistics, I must tell him that the youth opportunities programme has been substantially increased from 7,100 to 10,200 places in Mid-Glamorgan, for example. I am encouraged that there was a sharp upturn in the early part of this year in the number of visits paid by prospective investors in Wales. The Welsh Development Agency has announced that, of the 289 visits made in the 1980–81 financial year, 197 were made since January. That shows a considerable interest in investment in the area.

Mr. Hooson

Will my right hon. Friend tell the House about the increase in unemployment in the same areas during the last Labour Government?

Mr. Edwards

I cannot remember all the statistics, but I well recall that, when the present Leader of the Opposition was responsible for employment in the Labour Government, unemployment in his constituency trebled.

Mr. Alec Jones

Many of the 147,000 unemployed in Wales would welcome a return to the levels of unemployment which obtained under the Labour Government? The figures that the Secretary of State announced today—

Mr. Speaker

Order. The right hon. Gentleman must ask a question.

Mr. Jones

I apologise, Mr. Speaker. Does not the Secretary of State accept that his announcement of a 79.4 per cent. increase in unemployment is a condemnation of Government policies? Is he aware that that condemnation was shared by the people of Gwent and Glamorgan last Thursday when the Tory Party lost 47 seats?

Will the right hon. Gentleman explain to county councils and other councils why the grant-aided capital expenditure on the youth opportunities programme element of the manpower services schemes will in future count against local authority capital expenditure? Why was that change introduced without any discussion with local authorities?

Mr. Edwards

As usual, the right hon. Gentleman asked about three questions in the middle of his speech. As he takes consolation from the improvement in his party's electoral position in this mid-term period, I hope that he will also take consolation from the more important fact that in Mid-Glamorgan this year eight factories have been allocated and seven more provisionally allocated. There is a widespread interest in new investment and in new job creation in the area.