§ 13. Mr. Martyn JonesTo ask the Secretary of State for Wales what representations he has had from industries in Wales about the current economic situation.
§ The Secretary of State for Wales (Mr. Peter Walker)I have frequent discussions with industrialists, which confirm an expectation of rising investment.
§ Mr. JonesAlthough investment may be rising, surely the industrialists also made representations about the rise in interest rates and the cost of borrowing? I have certainly received representations from the farming industry in my constituency, whose members are worried about their income levels. One reason why they have low incomes is the rise in interest rates and the cost of borrowing.
§ Mr. WalkerI agree with the hon. Gentleman that rising interest rates present problems, particularly for the farming community, which has to borrow heavily. Inflation also brings problems and must be tackled.
In industry—as opposed to merely the farming industry—the range of facilities offered by the Welsh Development Agency, provided by way of regional selective assistance, makes Wales an attractive place in which to invest. That is why an all-time record for inward investment into Wales was achieved in 1988.