HC Deb 05 July 1982 vol 27 cc10-1
10. Mr. Anderson

asked the Secretary of State for Wales what action he proposes to counter the effects on West Glamorgan of the proposed redundancies at BP Chemicals, Baglan Bay.

11. Mr. Ray Powell

asked the Secretary of State for Wales if he will take steps to alleviate the problems resulting from the proposed redundancies at BP Chemicals in Barry and Baglan Bay; and what effect these redundancies will have on unemployment in South, Mid and West Glamorgan.

Mr. Nicholas Edwards

I regret the redundancies announced at BP, which will add to current difficulties in the areas affected. However, a wide range of measures are already being undertaken in these areas to attract and develop industry and employment and these will continue.

Mr. Anderson

Does the Secretary of State expect to introduce any new measures as a result of these decisions? The right hon. Gentleman must recall that when the decision was made in July 1979 to downgrade many areas in Wales this was Presumably done on the basis that they no longer needed help and could be self-sustaining. Since that time, male unemployment in the Swansea area has increased two and a half times. Now there is this further blow at Baglan Bay. What further evidence does the Secretary of State need before he takes new measures?

Mr. Edwards

The unemployment that results from this decision by BP will be spread widely over a considerable area. I do not believe that it will have an effect on unemployment levels such that would lead one to consider a substantial change in regional development area decisions at present. However, in the light of the announcement, I shall be discussing with the Welsh Development Agency its programme for the area. I shall be considering whether any further action is necessary. I am in the closest touch with the company about its project for the river works and the necessary works to ensure the continuing operation of the Baglan site.

Mr. Powell

Will the Secretary of State come clean on the issue? The right hon. Gentleman talks about new measures to be introduced in Wales and in the area that we are discussing. He has also referred to the fact that redundancies fell last month. Yet attention has been drawn to 3,000 redundancies occurring in one week. What new measures does the right hon. Gentleman intend to introduce to combat the escalation of redundancies throughout Mid-Glamorgan and South Wales?

It appears not that the market is bottoming-out, but that the bottom has dropped out of the market. No jobs are becoming available. It is time that the Welsh Office and the Government took some action.

Mr. Edwards

We have ensured, in the wider Port Talbot area, that about 880,000 sq ft of factory space will be available by the end of 1982–83 and that some other substantial construction will take place in the current year. We shall continue with that programme. I am also delighted that Councillor Tyssul Lewis, the lord mayor of Swansea and leader of the council, has given a firm rebuttal to the comments of the hon. Member for Swansea, East (Mr. Anderson) on the enterprise zone. He has said that the hon. Gentleman is wrong and that the enterprise zone is a real bargain. Ogmore MP Mr. Ray Powell need have no worries. The Swansea enterprise zone is proving the enterprise zone idea to be highly credible".

Mr. Coleman

Do not the redundancies at Baglan Bay undermine the Government's argument that regional aid must be based on travel-to-work areas? Is the right hon. Gentleman aware that, although the plant is in a special development area, the work on the jetty that will be required to secure the future of the plant is in the Neath river, which is outside the special development area? Will he examine this matter again? The right hon. Gentleman took away from Neath river area the special development area status that it formerly enjoyed.

Mr. Edwards

There is to be a meeting later this week on this matter with my hon. Friend the Under-Secretary. However, I can tell the hon. Gentleman that most of the expenditure on the project to which he has referred will take place within the SDA boundary. The small part falling within the estuary area is not, in any case, eligible for rural development grant. I think that the hon. Gentleman has the wrong information. The company has been and is in close touch with the Department of Industry on this problem.