HC Deb 06 November 1989 vol 159 cc656-7
1. Mr. Wigley

To ask the Secretary of State for Wales what financial resources are available to the Welsh Development Agency during the current financial year for the purposes of industrial development; and what plans he has to increase this sum for the next financial year.

The Secretary of State for Wales (Mr. Peter Walker)

The Welsh Development Agency has a total budget for 1989–90 of £130 million which will be deployed in promoting economic development in Wales. This represents an increase of over 50 per cent. on the budget for 1987–88. The agency's spending plans for 1990–91 will be announced following the Chancellor's Autumn Statement.

Mr. Wigley

Is the Secretary of State aware that the WDA in Gwynedd has not been able to go ahead with some scheduled industrial site projects because of a lack of finance? At a meeting with me, the WDA attributed this to the effect of projects such as those involving Bosch and Toyota—welcome though they are in themselves—on the overall budget. Budgets for areas such as Gwynedd are sucked in to meet those requirements. Can the right hon. Gentleman confirm that the WDA has asked that additional resources be made available? Can he confirm that major additional resources will be made available to meet the needs of major projects? Will he ensure that the resources from capital sales are available to the WDA for such projects and that it can roll its budget over from one year to the next?

Mr. Walker

I am pleased to say that, partly because of sales and partly because of extra Government funds, there has been a substantial increase in the budget of 50 per cent. In Gwynedd, 23,000 sq ft of WDA floor space is vacant. The WDA plans to start work on an additional 50,000 sq ft of factory and workshop floor space in the current financial year. On average, one factory a month has been built in the past 10 years. Much has been done, but I recognise that there is much more to be done.

Mr. Raffan

Does my right hon. Friend agree that now that substantial private sector investment is creating business parks and providing factory space in south-east Clwyd—in Wrexham Maelor and in Alyn and Deeside —the WDA should concentrate its resources on factory development in north-east Clwyd, coastal Clwyd and Gwynedd, so that we can achieve a more balanced provision of WDA factory space in north Wales?

Mr. Walker

It is important that the WDA concentrates its substantially increased facilities and money in those areas where job creation has the highest priority.

Mr. Barry Jones

The WDA plays an important role abroad. In the interests of Welsh business, can the Secretary of State tell the House when he thinks that Britain should join the exchange rate mechanism of the European monetary system? Is he hiding behind the Prime Minister's skirts, or is he shoulder to shoulder with the Leader of the House, the former Foreign Secretary?

Mr. Walker

I consider that careful judgment needs to be given to the exact timing.

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