HC Deb 21 November 1983 vol 49 cc5-6
6. Mr. Mark Robin

asked the Secretary of State for Wales how many advance factories have been (a) built and (b) allocated in Wales since May 1979.

Mr. Nicholas Edwards

Since May 1979, 1,320 advance factories have been completed by the Welsh Development Agency, Cwmbran development corporation and the Development Board for Rural Wales, providing more than 7 million sq ft of new industrial space. The total amount of space available is 3.5 million sq ft, which is about 15 per cent. of the total stock; 1,124 factories—6.9 million sq ft of space—have been allocated since May 1979.

Mr. Robinson

I congratulate my right hon. Friend on that answer. Does he agree that it demonstrates the continuing success of his policy of trying to attract new industries to Wales and, in particular, the growing confidence of industry in the region?

Mr. Edwards

It is encouraging that, after last year's record factory allocation in Wales, the figures are again significantly up this year and that the potential number of jobs to be created in these factories is strikingly up.

Mr. Ron Davies

Will the Secretary of State assure the people of Wales that when attempting to promote employment in these new advance factories he will dissociate himself from the recent view expressed by the Secretary of State for Trade and Industry that areas of high unemployment should be areas where low wages are paid?

Mr. Edwards

Relative wage rates undoubtedly affect the prosperity of individual companies and, therefore, the attractions of a particular area; but there is also a wide variety of other factors, including infrastructure, the availability of skills and so on. All those factors will be set out in the White Paper on regional policy which the Government intend to publish. There will be plenty of opportunities for individuals and organisations to express views on the weight to be attached to those factors.

Mr. Geraint Howells

How many of those advance factories have been let to those operating in the service industries in Wales?

Mr. Edwards

I cannot immediately give an answer to that question. However, as the hon. Gentleman is aware, it is now the policy to provide space for the service sector on WDA industrial parks. An increasing number of these factories and units are being taken by the service sector. Many of them provide more jobs than would be provided by comparable industrial manufacturing concerns.

Sir Raymond Gower

Do not these figures give us some reason for hope, as they tend to demonstrate that an increasing number of companies from this country and overseas are seeing the advantages of settling in Wales?

Mr. Edwards

I think that they are encouraging. For example, applications received since January for selective financial assistance are associated with about 12,000 new jobs. Not all of those will come to a successful conclusion, but they are significant figures and represent an increase of about 35 per cent. on the comparable figures for the same time last year.

Mr. Rowlands

So that we can put these figures in perspective, will the right hon. Gentleman say how many factories have been closed and how many jobs have been lost since May 1979?

Mr. Edwards

About 400 factories have been surrendered. I made it clear in my answer that we had a significant amount—about: 15 per cent.—of vacant factory space. I was careful to give both sides of the figures. I cannot give the hon. Gentleman an immediate answer about the number of jobs, but he will be aware that unemployment has risen during that time. However, it is important to note that, during a period of major industrial restructuring, we have been attracting such a large number of new companies, including companies involved in the new technologies.