Assisted Areas (Hansard, 28 April 1986)

§ 7. Mr. Gareth Wardell
asked the Secretary of State for Wales what was the percentage of the working population residing in assisted areas qualifying for regional development grant in Wales (a) March 1984 and (b) March 1986.

§ Mr. Wyn Roberts
Almost 90 per cent of the economically active population of Wales reside in an assisted area. Those residing in areas qualifying for regional development grant were 79.6 per cent. in March 1984 and 38.2 per cent. in March 1986 because of the Government's decision to focus that particular scheme on the areas of greatest need.

§ Mr. Wardell
Is the Minister not ashamed of himself? The percentages he has just given mean that the Government have reduced the percentage of the working population of Wales who qualify for regional development grant from almost 80 per cent. to 35 per cent. Does that not mean that the Government are using regional policy in a far less effective a way now and are contributing to Wales being one of the poorest regions within the European Economic Community?

§ Mr. Roberts
I completely disagree with the hon. Gentleman. He underestimates the value of regional selective assistance, which is available throughout the assisted areas. He is also underestimating the activities of the Welsh Development Agency, which has built over 1,100 advance factories in Wales since May 1979. There have been 1,153 offers of regional selective assistance since May 1979, giving 57,000 new jobs and safeguarding 31,000.

§ Mr. Abse
Will the Minister note that the anxieties in Wales over the administration and lack of monitoring of grants for selective assistance increased on Friday when it was made clear by the Attorney-General that investigations into fraud in the Parrot Corporation were being extended, and apparently will include members or past members of the WDA? As the Parrot Corporation now has 649 writs issued against it for more than £15 million, and its latest report showed that it had lost £500,000, will the Secretary of State make a full statement to the House and relieve the anxieties of the work force in my constituency in Gwent, who believe that there is something amiss in the administration, structure and relationship of the WDA with the Minister and the Parrot Corporation?

§ Mr. Roberts
The hon. Gentleman is right to say that the police are investigating the circumstances of the original investment in the Parrot Corporation. It is, as he understands, a matter for the Director of Public Prosecutions. I have no intention of making comments that might prejudice that matter.
Writs have been issued in the United States of America against the Welsh Development Agency and others, although the agency has not yet had such a writ served upon it. It is well known to the House that the Public Accounts Committee has made known its intention to look into the WDA's investment in the Parrot Corporation.

§ Mr. Best
Does my hon. Friend accept that resources should be concentrated on the areas of highest unemployment, such as the Holyhead travel-to-work area? Can he assure the House that the welcome initiative of enterprise in rural areas that was announced recently will be able to assist the small business sector in gaining finance and developing, which is so critical to overcoming unemployment in areas such as Anglesey?

§ Mr. Roberts
I am grateful to my hon. Friend. Of course, assisted area status has helped many parts of Wales, including Ynys Môn, which my hon. Friend represents. Unemployment was a significant factor in the review, but account was taken, too, of many other factors, such as the likely relative need for current and future employment. Account was also taken of long-term unemployment, occupational and other structures, economic activity rates and so on. The rural enterprise package will help rural areas—in other words, areas outside centres of population of 10,000 people or more.

§ Mr. Barry Jones
My hon. Friend the Member for Torfaen (Mr. Abse) made an important request for a full statement. When will the Minister make the statement for which my hon. Friend has been asking for many months?

§ Mr. Roberts
I understand that, in addition to the Public Accounts Committee, the Select Committee on Welsh Affairs will consider the affairs of the Welsh Development Agency. While police investigations are continuing and the matter is still with the Director of Public Prosecutions, it would not be advisable for me to make any further comment.

§ Mr. Gareth Wardell
On a point of order, Mr. Speaker.

§ Mr. Speaker
The hon. Gentleman should raise his point of order after Question Time.

§ Mr. Wardell
On a point of order, Mr. Speaker. I raise this point of order in my capacity as Chairman of the Select Committee on Welsh Affairs. Earlier this afternoon, the Minister, I am sure inadvertently, said that the Select Committee on Welsh Affairs was undertaking an investigation into the Welsh Development Agency. It is not so doing. Even if it were, can you confirm, Mr. Speaker, that this would in no way prejudice the Minister's making a statement about the Parrot Corporation?

§ Mr. Wyn Roberts
Further to that point of order, Mr. Speaker. I am happy to confirm that it is the Welsh Grand Committee, rather than the Select Committee which is to discuss the Welsh Development Agency.