HC Deb 20 February 1989 vol 147 cc694-6
4. Mr. Butler

To ask the Secretary of State for Wales by what percentage unemployment has fallen in Wales since June 1987.

Mr. Peter Walker

Between June 1987 and January 1989, seasonally adjusted unemployment has fallen in Wales by 40,900, from 12.6 to 9.2 per cent., a decrease of over 27 per cent.

Mr. Butler

How does that fall compare with the fall in England? What contribution has the increase in self-employment made?

Mr. Walker

I believe that I am correct in saying that, in terms of a percentage fall in unemployment, the north-west of England, the west midlands and Wales have been the three best regions of the United Kingdom. There has been a substantial increase in self-employment during that period. I will send my hon. Friend the full details.

Mr. Roy Hughes

With Welsh coalfields in a near terminal condition, with massive redundancies in the steel industry, including a major closure, is this the time for the Government to come forward with proposals to double the toll on the Severn bridge, our main access point? Why does the Secretary of State not plead with the Chancellor to get rid of that additional tax on the people of Wales?

Mr. Walker

As I have pointed out many times to the hon. Gentleman, the toll on the Severn bridge was imposed during the period of a Labour Government. The toll on the Severn bridge was kept throughout the terms of all Labour Governments. Unlike the Labour Government, we will swiftly deliver a second bridge. When I read the headlines of the hon. Gentleman's local paper, I found that there is deep concern because there are not enough sites for industrial development. With the enormous demand that is taking place in Newport, the hon. Gentleman is benefiting more than most from the change in the Welsh economy.

Sir Anthony Meyer

Do movements in the unemployment figures result from differences between jobs lost and jobs gained? Is it not a fact that most of the jobs lost have been in industries belonging to the last century and that most of the jobs gained are in industries with a bright future?

Mr. Walker

Yes, Sir. In the period that I mentioned, there have been substantial further job losses in the coal industry and some further job losses in the steel industry. The diversity of the Welsh economy will be one of the greatest benefits to Wales in the years that lie ahead.

Mr. Wigley

Is the Secretary of State aware that the Welsh Development Agency has identified the television and film industry as one of the growth sectors to develop more jobs in Gwynedd? In those circumatances, is he aware that his personal veto this morning on the urban plan to provide the shell of a building for a new studio to develop the industry in Caernarfon is seen as sabotage of prospects for that sector? Is he aware that that is contrary to indications given by his civil servants, not only to the company but to the county council and to the Welsh Development Agency? As a result of his veto, the company stands to lose £50,000 to £60,000. Is that his contribution to the economy of the area?

Mr. Walker

I deplore the hon. Gentleman's emotional words. If he has evidence that any official in the Welsh Office in any way said to anybody that this grant would be made, he had better provide it. Whoever did so will certainly be seen by me. He has made an allegtion, and I expect him to substantiate it.

Several people—some of them will known to the hon. Gentleman—have made strong representations to me. If there were any priority in that area, it should be urban aid for Holyhead. I am glad to say that I provide that. The hon. Gentleman should perhaps speak to some of his own colleagues who gave me that advice.

Mr. Nicholas Bennett

Does my right hon. Friend agree that one of the major ways in which unemployment has been reduced in Wales is through the Government's regional policy of relocating Civil Service and other Government agency jobs to the regions and Wales? Does he find it surprising that some Opposition Members are opposed to relocation?

Mr. Walker

Relocation has had one remarkable effect on Wales. We now have in the Principality the head office of the Export Credits Guarantee Department and the Patent Office. The Companies Registration Office is also in Wales. When I was Secretary of State for Trade and Industry most of those Departments were in London. 1 am glad to say that they are now in Wales.

Mr. Barry Jones

Instead of making pussy-footing radio statements on the 1,000 steel job losses, why did the Secretary of State not fight for them? There are now 3,000 steel and coal job losses ahead. On his first real challenge since his appointment, the Secretary of State has run away. The right hon. Gentleman is all talk and no fight. Does he not realise the bitterness of the steelworkers, who were in no way consulted? Before Christmas they were offered shares; now they are offered the dole. The right hon. Gentleman has funked his responsibilities. Where is the meat?

Mr. Walker

During the period of this enormous fall in unemployment, there has been an enormous surge of inward investment and great diversification of the economy. The only role of the Labour party is to stir up any bad news that it can get hold of to give a bad image of Wales. The hon. Gentleman was a Minister in the Welsh Office—[Interruption.]—10 years ago when major steel closures were announced. I am delighted that the Welsh steel industry is now modern and has a high level of investment. Will the hon. Gentleman pledge himself to renationalise the steel industry?

Hon. Members

Answer.