HC Deb 18 February 1991 vol 186 cc9-10
9. Mr. Denzil Davies

To ask the Secretary of State for Wales when he next intends to meet the newly appointed chief executive of the Welsh Development Agency to discuss the recent fall in manufacturing output in Wales.

Mr. David Hunt

I keep in close touch with the chairman and the chief executive of the Welsh Development Agency about a wide range of issues concerning the development of the Welsh economy.

Mr. Davies

In view of the fall in manufacturing capacity in Wales and the severe damage that has been wrought on the manufacturing base in Wales by 12 years of Tory Government, is not the Secretary of State concerned that the experience and expertise of the recently appointed chief executive of WDA lies almost wholly within the candy floss activity of property? Will he ensure in future that senior appointments at board level and at senior level reflect sufficient expertise and a track record in manufacturing industry?

Mr. Hunt

I reject the right hon. Gentleman's comments about Phil Head. I believe that he will be a marvellous chief executive. He won a very competitive contest for that position.

With regard to the right hon. Gentleman's opening comments, I must remind him that the WDA's budget this year is to be exceeded to the highest ever level next year of £160 million, which is £10 million higher than this year and £10 million higher than the figure that I inherited. It is set to remain above the 1990–91 level in each of the subsequent two years. The Welsh Development Agency has the means. The hon. Gentleman should not seek to decry Wales. I have recently seen executives from TSB, DAS, Bosch, Toyota and Dowty Koike. Those companies are now recruiting. That has nothing to do with a candy floss economy, but much to do with an expanding and strong economy.

Mr. Barry Jones

Will the right hon. Gentleman tell the people of Wales how his Government have reached such a serious recession after 12 years in power and about £100 billion in North sea oil revenues? Does he agree that falling output and rising unemployment are not just blips but signs of a recession affecting every kind of industry and every kind of worker? Why have he and his right hon. Friends in Cabinet been so complacent? It ill fits the right hon. Gentleman to tell us about our country. His Government are not helping our country.

Mr. Hunt

The hon. Gentleman did not listen to what I said. I said that I thought that everybody in Wales would be greatly assisted if the Opposition did not talk and preach gloom and doom. The hon. Gentleman mentioned output. Output per employee in manufacturing industry in Wales is the highest ever. In the six years since 1985 manufacturing output in Wales has gone up by 33 per cent. Over the same period output in the United Kingdom is up 19 per cent. Five years ago there were 81 inward investment projects in Wales. We have increased that by 75 per cent. There are 135 per cent. more jobs through inward investment and investment has increased by 263 per cent. Will the hon. Gentleman pay attention to those statistics and not play down the recovery in the Welsh economy?

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