§ 4. Dr. Marekasked the Secretary of State for Wales if, in calculating local authority target expenditures, he will disregard expenditure on industrial development in Wales.
§ Mr. Nicholas EdwardsNo, Sir.
§ Dr. MarekIf, on the one hand, the Secretary of State takes pride in the fact that Sharp is coming to Wrexham and if, on the other, he is prepared to rob Wrexham ratepayers by grant holdback because that borough council gives high priority to spending on industrial development, will he tell us whether he regards himself as a hypocrite?
§ Mr. EdwardsNo, but among the greatest attractions for any company choosing an area are the general levels of taxes and rates in that area. The Welsh Office has given substantial help to the project named by the hon. Gentleman and has assisted in securing that project, which will provide about 600 jobs over the next two or three years for the people of Wrexham.
§ Mr. Alex CarlileIs the Secretary of State aware that the recent announcement in the Budget of a reduction in capital allowances to industry will be particularly damaging to small industries in Wales? Will he take steps to mitigate the rigours of rate-capping, on top of those cuts, which will severely affect industry?
§ Mr. EdwardsI do not agree. I believe that small as well as large companies will benefit from the lower rates of corporation tax that will arise. One of the consequences of the changes in the allowances is that much investment will be brought forward into the next year or two.
§ Mr. Roy HughesDoes the Secretary of State appreciate that his reply reeks of complacency? Will he not wake up to the terrible unemployment from which 6 Wales is suffering and how local authorities are trying to cope with the social problems arising from it, besides trying to attract new industry? Does he agree that the last thing that the local authorities need at this difficult time is rate-capping?
§ Mr. EdwardsI hope that the local authorities will not put themselves into a position where the rates have to be capped.