§ 10. Mr. RowlandsTo ask the Secretary of State for Wales what assessment he has made of the impact of current interest rates on the development of small businesses in Wales.
§ Mr. Peter WalkerThe high inflation of previous Governments proved that high inflation is more damaging to small businesses than a period of high interest rates. I hope that the fall in inflation during the coming year will lead to lower interest rates as well as lower inflation.
§ Mr. RowlandsThe Secretary of State's complacent statement completely underestimates the crippling effects of high interest rates on small businesses and on their cash flows and investment decisions. The right hon. Gentleman is supposed to be a man of independent thinking. What independent thoughts has he about helping small businesses through this period of high interest rates?
§ Mr. WalkerMuch help is being given through various forms of regional aid, such as the Welsh Development Agency and local authorities, to small businesses. I am delighted to say that in 1988 there was a faster rate of increase in the number of production businesses in Wales than in any other region—it was more than double the average for the United Kingdom as a whole. I am glad to say that the latest returns and applications show that that trend is continuing.
§ Mr. FootWhen does the right hon. Gentleman propose to make his annual speech in which he tells us what he thinks of Government economic policy? This year, will he be making it in the constituency of the hon. Member for Clwyd, North-West (Sir A. Meyer)?
§ Mr. WalkerI should prefer to make it in the right hon. Gentleman's constituency so that I could point out all the successes that we have had.