HC Deb 08 May 1989 vol 152 cc545-6
10. Mr. Anderson

To ask the Secretary of State for Wales what new proposals he has for changes to his regional development policy particularly in relation to Swansea and south-west Wales.

Mr. Peter Walker

I am always looking to ensure that the Government's various mechanisms to sustain and stimulate development are effectively deployed. Over the past year unemployment in the Swansea and Llanelli travel-to-work area has fallen by nearly 3,800. I welcome the development of the Swansea bay partnership and the exciting link announced 10 days ago between British Urban Development and Swansea city council.

Mr. Anderson

Will the Secretary of State examine the reasons why there is no significant Japanese investment in the area covered by the Swansea bay partnership and why we cannot attract Toyota? Would not he conclude that it is related to the removal of our regional development status and a failure to give adequate infrastructural investment to the area, by which I mean adequate access to the Channel tunnel and the quick completion of the Baglan-Lonlas motorway?

Mr. Walker

I am surprised at the hon. Gentleman's question. He gave Toyota as an example, but he will know that because of European Commission regulations on Toyota no country in Europe could give regional aid. Our offer to Toyota—the same one as was made in Derby—was devoid of regional assistance because of that. By Commission agreement, the motor industry is not subject to regional aid. General developments to improve the infrastructure in Swansea are on a considerable scale. I do not believe that the enormous potential investment that was announced 10 days ago would have been announced unless that were the case.

Mr. Neil Hamilton

Does my right hon. Friend agree that we are much more likely to secure jobs and prosperity in Wales by encouraging private sector investment than by trying to recreate the museum of industrial archaeology which would have been maintained had the Labour party been in power these past 10 years? May I say to my right hon. Friend that his trumpet is in every respect far preferable to the Opposition's tin whistle?

Mr. Walker

Enormous diversification is taking place, for example the enormous growth in financial services in Swansea, Cardiff and elsewhere, and the great diversity in new manufacturing. The fall in unemployment in the past two years has been on a scale which will produce a Wales which enjoys full employment in a diversified, free enterprise economy for the first time.

Hon. Members

When?

Mr. Speaker

Order.

Mr. Denzil Davies

Does the Secretary of State realise that the decision in 1979 by the Government, of whom he was a member, to remove special development area status from south-west Wales has had a damaging effect? We needed that status and assistance to compensate us for being further from the markets. If he is genuinely interested in regional development will he try to get it restored?

Mr. Walker

The right hon. Gentleman, who has understandably raised his considerable anxiety at the closure of the Austin-Rover plant, will be pleased with the developments that have taken place since as a result of our flexible methods of assistance through the Welsh Development Agency. The saving of a considerable number of jobs and a whole range of other investments are taking place in his constituency.