HC Deb 19 June 1989 vol 155 cc8-9
9. Mr. Roy Hughes

To ask the Secretary of State for Wales what are the latest unadjusted figures for unemployment in (a) Newport, (b) Gwent and (c) Wales; and if he will give the equivalent figures for 1979 on the most nearly comparable basis.

Mr. Peter Walker

On 11 May 1989, the number of unemployed claimants in the Newport district, Gwent and Wales were 5,293, 16,156 and 97,818 respectively. Unadjusted figures for 1979 are not available on a basis which enables a valid comparison to be made. In the last 12 months, Wales has experienced a larger fall in the percentage rate of unemployment than any other region of the United Kingdom.

Mr. Hughes

Is this to be the Secretary of State's last hoorah? Does he appreciate that no amount of trumpeting on his part can hide the fact that unemployment in Wales is 8.3 per cent., bottoming out at double the figure that it was under Labour, the country faces a massive balance of payments problem, interest rates are 14 per cent. and the inflation rate is 8.3 per cent. and rising? Surely, far from being a success, the Government's record is a disaster of the first order. That has been recognised by the electorate in the past few days.

Mr. Walker

If this were my last appearance, my one regret would be that I should no longer be getting questions from the hon. Gentleman, who is always helpful. I am grateful to him for continuing to ask this question and I hope that he will go on doing so. He considered that unemployment was bottoming out at 150,000, 140,000, 130,000, 120,000, 110,000 and 100,000. I am glad to say that as it goes down to well below the average for the European Community, the hon. Gentleman remains consistent in putting questions which show that last year Wales had the best record in falling unemployment of any region in the United Kingdom.

Mr. Rowlands

Is the Secretary of State aware that within the past week there have been announcements in my own community of 150 possible redundancies at Thorne, 600 at the Merthyr Vale colliery and more than 100 at Hoover? According to the company, the job losses at Hoover were as a direct result of interest rates. In those circumstances, what does the Secretary of State say to his Cabinet colleagues about the impact of high interest rates on the mature manufacturing sectors in our communities?

Mr. Walker

There is another question on this matter, but if the hon. Gentleman wishes, I can list a set of good announcements which took place last month. In the hon. Gentleman's constituency, there is much investment and expansion— —

Mr. Rowlands

We are losing more than the new jobs coming.

Mr. Walker

That is not true and the hon. Gentleman knows it. Merthyr has a very good record on unemployment, and continues and will continue to do so. The impression that the hon. Gentleman seeks to give that there is some great depression in Merthyr is not the case. We are about to embark on the biggest derelict land clearance programme in Wales in Merthyr, and the sites are all sites that the local authority wishes to use for further industrial development.

Mr. Raffan

Will my right hon. Friend join me in welcoming the dramatic reduction in unemployment in Delyn in the past two years—a fall of 50.1 per cent. between May 1987 and May 1989? Does he agree that this remarkable achievement is due to the fact that the Government gave my constituency the highest development area status, which the Labour party never did, and gave it the Delyn enterprise zone, which the Labour party opposed?

Mr. Walker

Yes, I am delighted with the developments in Delyn. I recently visited it and saw what was taking place. I was also delighted the other day to hear the hon. Member for Alyn and Deeside (Mr. Jones) say how staggered he was at the speed of the transformation of the Deeside economy.

Mr. Wigley

In view of the possibility of the Toyota engine plant coming to Clwyd, will the Secretary of State take advantage of his opportunity tomorrow to tell Gwynedd county council what steps will be taken to ensure that any spin-off jobs associated with the development, which we greatly welcome, come to areas such as Gwynedd, so that the benefits arising from the scheme are spread as much as possible?

Mr. Walker

I never predict investments which may or may not come to an area, and no decisions have been made —[Interruption.]—I have never predicted the investments that might come to any part of Wales until the deal is completed and signed because it would be silly to do so. One of the main purposes of my discussions tomorrow will be to see how we can take advantage of all the considerable economic developments in the county.

Mr. Barry Jones

The right hon. Gentleman must not be complacent about unemployment in Wales. How will the privatisation of the four remaining skill centres reduce skills shortages in south and north Wales? Does he still believe that the economy has been mismanaged? Does he agree with the hon. Member for Clwyd, North-West (Sir A. Meyer) that the Government's Euro-campaign was disgraceful?

Mr. Walker

I am delighted to say that during the course of the next 18 months we shall be getting the new training and enterprise councils into place throughout Wales. They will involve considerable Government investment and will use all the training facilities that are available. So training in Wales in the coming years will, to a greater degree, meet the needs of a new and diversified economy; this will be greatly beneficial to the whole future economy of Wales.

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