Pay Rates (Hansard, 21 January 1991)

§ 2. Mr. Livsey
To ask the Secretary of State for Wales if he will make a statement on average current weekly rates of pay in (a) Powys and (b) the rest of Wales.

§ The Secretary of State for Wales (Mr. David Hunt)
The average weekly wage in Powys is £210 compared with £232 for Wales as a whole.

§ Mr. Livsey
First, may I associate myself with the remarks of the hon. Member for Cardiff, South and Penarth (Mr. Michael) relating to the late Donald Coleman? Secondly, may I take this opportunity to welcome the Under-Secretary of State to his new duties on the Treasury Bench?
Is the Secretary of State aware that average earnings in Wales are 27 per cent. lower than those in south-east England? The figure that he has just quoted for Powys is considerably lower than the Welsh average. Will he confirm that average wages in Powys are the lowest in mainland Britain? What does he intend to do to secure a better quality of employment in Powys so that people can earn higher wages and have a decent standard of living?

§ Mr. Hunt
On the first point, the thoughts of all of us will be elsewhere this afternoon—with the Minister of State and many of our colleagues at the funeral.
Low average wages in Powys and Wales as a whole are part of our history and I very much hope that we shall make them history. The hon. Gentleman drew an analogy with south-east England. He will recognise that that has always been the case. We should reflect on the fact that during the past five years the average weekly wage has increased by 9.7 per cent. in real terms. That compares favourably with the position in the 1970s.

Dr. Thomas
May I, too, on behalf of Plaid Cymru, associate myself with the expressions of sympathy to Donald Coleman's family and say how grateful we are for his life and work in the House and outside in his constituency.
As for wage rates in Powys and other parts of Wales, has the Secretary of State studied the budget of the Development Board for Rural Wales following its restructuring? Does he intend to extend the boundaries and functions of the board beyond Powys, south Gwynedd and Ceredigion to improve wages throughout rural Wales?

§ Mr. Hunt
I had the opportunity to discuss the matter with the chairman of the Development Board for Rural Wales only last week. The hon. Gentleman knows that our commitment to the Development Board for Rural Wales is very strong. That is why we have substantially increased its budget. However, we are always considering other means of achieving the objective he describes.

§ Mr. Ian Taylor
Will my right hon. Friend clarify one point? When the uniform business rate was introduced, constituencies such as mine in the south-east of England were prepared to accept it if it helped areas like Wales by enabling companies to keep their weekly wages at a relatively favourable rate. Has that system come into practice?

§ Mr. Hunt
I recognise my hon. Friend's point. A large proportion of the uniform business rate comes from businesses in the south-east, but, as I travel through the Principality, I am constantly reminded how much better the quality of life is in Wales compared with the south-east of England. We want to enhance, and continue to enhance, the environment and quality of life while ensuring that employees in Wales share in the prosperity that we are determined to achieve. The prospects for the medium to longer term in Wales are as good as ever.