HC Deb 27 June 1988 vol 136 cc10-1
13. Mr. Raffan

To ask the Secretary of State for Wales if he will make a statement on the action being taken by his Department to ensure that the Principality will fully benefit from the creation of the single European market and the construction of the Channel tunnel.

Mr. Peter Walker

My Department will be active in bringing home to the business community in Wales the significance of the single European market and the opportunities that will be created by the Channel tunnel. I have already written to over 3,000 companies, drawing their attention to the single European market, and I have sent them a check list of action. I shall personally take part in two major seminars in the business community in Wales, in Cardiff in December and in Mold in November.

Mr. Raffan

I am grateful to my right hon. Friend for that statement. Does he agree that the optimism over 1992 must not be allowed to cloud the fact that gains from freer trade will occur only if there are losers as well as gainers? Will he get the blunt message across to Welsh firms that if they are not to be losers they must become more competitive, improve management and remove inefficient work practices? Will he do his utmost to ensure that Welsh companies can benefit from the contracts placed for the construction of the Channel tunnel?

Mr. Walker

As to my hon. Friend's latter point concerning the contract phase of the Channel tunnel, which is of course a very big project, to assist Welsh companies to benefit during the construction phase I have established a liaison section in my industry department with responsibility for informing appropriate Welsh companies of opportunities and potential contracts. To date, in excess of 100 potential contracts have been notified to more than 100 companies in Wales. As to the importance of competitiveness, those who will succeed most in the total European market will be those companies that are the most effective, competitive and efficient. I hope that those in Welsh industry will achieve those objectives.

Mr. Barry Jones

Does the right hon. Gentleman know what prospects there are of European money for the Data Magnetics company in my constituency, where 168 jobs are involved, and where the receiver has moved in? Can he say whether there is any prospect of that company receiving a boost? Does he agree that if that company is given the funding that it needs it will be a world beater?

Mr. Walker

It is difficult for me to comment when matters are in the hands of the official receiver. I can only express the view that I hope very much that ways will be found by the official receiver of handling the situation so that work may continue and prospects are created. The Welsh Development Agency and others are certainly in close contact with the company.