§ 1. Mr. MorganTo ask the Secretary of State for Wales how much grant he expects to pay out in (a) regional development grant and (b) regional selective assistance in Wales in 1987–88, 1988–89, 1989–90 and 1990–91.
§ The Secretary of State for Wales (Mr. Peter Walker)Planned expenditure on the two schemes in Wales is £98 million in 1987–88; £109 million in 1988–89; £94 million in 1989–90; and £89 million in 1990–91. Added to those two schemes is the very substantial increase in expenditure for the Welsh Development Agency—to £113 million gross in 1988–89—and the benefits that will be obtained from the three new regional investment, innovation and business development grants.
§ Mr. MorganWill the right hon. Gentleman consider making regional selective assistance tax free, which would put it on the same basis and give it the same incentive value as RDG, which is being phased out?
Has the right hon. Gentleman considered the call of the Confederation of British Industry Wales for a longer period for phasing out RDG, so as not to destroy the incentive for industry to move to Wales?
§ Mr. WalkerTaxation is, of course, a matter for my right hon. Friend the Chancellor of the Exchequer. However, it is very much taken into account when setting the level of RSA grants.
I considered the CBI Wales proposal, but rejected it because, between now and the end of March, any firm in Wales with a project that might attract RDG could produce it. Indeed, the Welsh Office, through a whole range of agencies, has made great efforts to communicate with Welsh firms to ensure that that happens.
§ Mr. RaffanWill my right hon. Friend suggest to the Opposition that, as part of their "Labour Listens" campaign, they lend an ear—
§ Mr. SpeakerOrder. The hon. Gentleman's question must be related to the main question.
§ Mr. RaffanWill my right hon. Friend remind the Opposition—
§ Mr. SpeakerThat is no good.
§ Mr. RaffanIs it not the belief of the Welsh Trades Union Congress that the automatic nature of RSG has led to a wasteful allocation? Does it not strongly favour a much greater selectivity to improve the cost-effectiveness of our regional policy?
§ Mr. WalkerCertainly the TUC document mentioned that it wished to move towards greater selectivity. However, I am unwilling to make suggestions to the Opposition because I am very happy with the way that they are behaving.
§ Mr. LivseyWhen the right hon. Gentleman visits Mid-Wales Development tomorrow, will he note that it has benefited considerably from RDG? Is he aware that that organisation is worried about the Government's regional policy? What does he intend to tell it about the Government's regional policy?
§ Mr. WalkerI had discussions with the chairman of Mid-Wales Development last week, and he shares our delight about the considerable increase in regional aid for 3 Wales. I very much look forward to visiting the organisation tomorrow and seeing Newtown and the activities there.
Dr. ThomasWill the right hon. Gentleman assure us that in the areas recently affected by Dairy Crest closures — at Llangefni in Ynys Mon and Felin Fach, in the constituencies of my hon. Friends the Members for Ceredigion and Pembroke, North (Mr. Howells) and for Ynys Mein (Mr. Jones)— the full armoury of regional policy will be available to provide alternative employment in those areas?
§ Mr. WalkerI can give that assurance because this is an instance of where organisations such as the Welsh Development Agency and Mid Wales Development can move in quickly. I understand that the WDA has today announced a joint programme to find alternative food businesses for Ynys Mon. I have also decided that, under the urban aid programme, I shall proceed with some new workshops in that locality in the near future.
§ Mr. Gwilym JonesWhen considering regional assistance, what account does my right hon. Friend take of the achievement of private investment, which, in some parts of Wales, has been very successful?
§ Mr. WalkerI am delighted to say that as areas of Wales have an expanding economy and prosperity improves it is easier to gear up and get far more private investment. A great deal of investment is taking place in my hon. Friend's constituency.
Mr. Alan WilliamsWill the Secretary of State bear in mind that the increased WDA figure that he pleaded in aid in his opening answer will still be below the level of 1978–79 Government funding? If the Welsh Office is so committed to selective assistance, because that leaves the decisions in the control of the Secretary of State, how does he explain the fact that, since 1978–79, regional selective assistance in Wales has fallen by virtually 50 per cent., giving us a cumulative loss of £330 million, whereas in Scotland it has doubled? The Secretary of State for Scotland has obviously been looking after Scotland's interests far better than the Secretary of State for Wales has been looking after Wales' interests. In the final analysis, on the projections which he has just given of his spending on combined regional grant for the next three or four years, the figure for each year is virtually £100 million less than was being spent in 1978–79.
§ Mr. WalkerThe right hon. Gentleman suffers because his only source of political originality is a research assistant who finds him a base year on which to connect and reject figures. As I have learnt that technique, I can assure him that when the Select Committee on Welsh Affairs meets later this week I shall project, on a similar basis, all the health figures for the period in which he was in government. It is a bogus method of presenting figures. The Labour party is alone in Wales in regretting the enormous increase in regional aid that will take place.