§ 7. Mr. FlynnTo ask the Secretary of State for Wales what new proposals he has to reduce unemployment levels.
§ Mr. RedwoodWe intend to reduce unemployment by continuing our successful economic policies of low interest rates, a very competitive economy, low inflation, good road and rail links, good training and encouraging and promoting investment.
§ Mr. FlynnWhat is the Secretary of State's reaction to the figures that I sent him which show that, according to a new methodology used by the House of Commons Library, the unemployment percentage in Newport, West is the joint highest in Wales? What is his reaction to the fact that, last year, Newport, West witnessed the second-largest increase in unemployment in any Welsh constituency? In those circumstances, how can the Government or anyone else contemplate taking away assisted area status from Newport? Will he give an unequivocal answer this afternoon that that will not happen and that he is virgorously opposing that insane suggestion?
§ Mr. RedwoodThe hon. Gentleman will have to contain himself a little longer. As soon as the European Community has completed its review of the Government's proposals, my right hon. Friend the President of the Board of Trade will present them to the House. I hope that that will happen soon. The hon. Gentleman should wait and see the outcome. The hon. Gentleman can be assured that I have, of course, argued a vigorous case for Wales, as he would expect me to do.
Why does not the hon. Gentleman welcome the fact that, since 1986, long-term unemployment in Wales has fallen by 40 per cent? Why does not he welcome the fact that the Welsh unemployment rate is below the United Kingdom average? Why does not he welcome the fact that it appears that the United Kingdom average has now fallen beneath the EC average? All that is good news and I hope that the hon. Gentleman will get behind it.
§ Mr. SweeneyDoes my right hon. Friend agree that the policies of low inflation, low interest rates and a stable work force, which have been pursued by our Government, are the right prescription? Is not it time that the Opposition recognised that and supported the Government rather than carped and moaned about unemployment?
§ Mr. RedwoodI agree that those are the right policies. My hon. Friend might like to know that, at noon today, an order was announced for 4 million new telephones worth £50 million. That is good news for jobs in Cwmcarn in Gwent where those telephones will be manufactured.
§ Mr. KinnockI particularly welcome that last piece of good news and the efforts undertaken by the Welsh Office to encourage further orders for the Abercarn plant. Confidence in that plant is well established and it is wise to build on it. Is the Secretary of State aware, however, that, in the past year, the pharmaceutical industries of Wales have lost more than 500 jobs? Since 1985, because of the Government's introduction of the limited list for drugs for national health service prescriptions, pharmaceutical manufacturers have moved their development and production facilities elsewhere, which has meant, of course, that jobs have gone elsewhere.
In the interests of the health of patients and the health of the economy, will the right hon. Gentleman use all possible offices to persuade the Government to review that limited list policy so that we create a much stronger domestic base for our pharmaceutical industry and thereby help the health of the nation and the health of the economy?
§ Mr. RedwoodI am grateful to the right hon. Gentleman for his first remarks. I will look further at the 11 issues of pharmaceutical investment and job transfers from Wales, which were raised in a previous Question Time. I have asked for a review of the position. I am happy to meet the interested pharmaceutical companies to see whether there is anything that the Government can do to improve the climate further so that companies stay in Wales and invest there.
§ Mr. RichardsIs my right hon. Friend aware that vacancies are appearing for chairmen of companies in Wales, one of which was recently snapped up by that champion of lost causes, the hon. Member for Caerphilly (Mr. Davies), although I do not recall the job being advertised? Does he agree that that may be the first sign that the Opposition are about to change their shadow Secretary of State and, possibly, have their fifth shadow Secretary of State before Christmas? Four of the shadow Secretary of State's predecessors are sitting on the Opposition Back Benches this afternoon.
§ Mr. RedwoodMy hon. Friend makes his point extremely well. I can reassure him that, if that happened, it would not lead to an increase in unemployment, because no doubt there would be a replacement for the person going.
§ Mr. Barry JonesBritish Aerospace at the Broughton works in my constituency has announced 250 redundancies, which would bring the total number of job losses at that great plane-making plant to more than 1,000 in just over one year. Why must such highly skilled, loyal, able and very productive plane makers lose their jobs in that way? It appears to me that the Government and the Cabinet have no strategy for Britain's manufacturing industries. Does the Secretary of State agree that, if the Government's policy continues as it appears to be doing, the United Kingdom will be denuded of a manufacturing base? What will he do to assist the plane-makers at Broughton, who are losing patience at the bleeding away of their jobs after doing everything that they have been asked to do for many years? They are the best, most loyal, most skilled and productive workers, so what will the Government do to assist them?
§ Mr. RedwoodA productivity miracle is under way in this country—production is more than 10 per cent. up on the figures for the past year. It is desperately important that, as productivity rises that quickly—and we want it to —enough orders are won so that jobs are not lost and people can make many more products at the much better unit costs that have been established. I shall look at any proposition that the hon. Gentleman cares to put to me about the tragic situation in his constituency, because I do not like to see those job losses any more than he does. The problem is connected with cutting costs, which will mean that the company is more competitive in the future, and is obviously related to the demand for the planes. If there are ways in which the Government can help to promote more sales of planes—that is the only way to get these jobs—I am happy to do whatever is necessary and legal.
§ Mr. HawkinsMy right hon. Friend will probably not be aware that, in some cases, what is good news for reducing unemployment in Wales may be bad news for other parts of the country. He may not yet he aware that, in my constituency, Burtons Biscuits, which is a subsidiary of Associated British Foods, has a factory that has announced up to 600 redundancies, whereas it hopes to 12 increase production at its factory in Llantarman in Wales. Will my right hon. Friend join me in doing all that he can to ensure that any of my constituents who work at the factory and wish to take up vacancies at Llantarman are able to? Will he work with his right hon. Friends in other Departments to try to change the mind of the company so that it reduces or withdraws the redundancies in my constituency?
§ Mr. RedwoodI am happy to look at my hon. Friend's suggestion about the transfer of workers. However, there will be times when rationalisation is needed to make a business competitive. Again, the best answer is to get out there and sell more of the underlying products so that we can have more jobs overall. It is a fearfully competitive world and unfortunately it is necessary for British manufacturing to continue to lower its costs and make improvements in its processes, or there will be no jobs at all in manufacturing. That is the essential first step to grow a bigger manufacturing base.
Mr. John D. TaylorI welcome the priority given by the Secretary of State to reduced interest rates to support the economy of Wales. Does he agree that that has come about through the withdrawal of the United Kingdom from the exchange rate mechanism?
§ Mr. RedwoodThat and other factors obviously lay behind successive Chancellors' decisions on interest rates. I am sure that the right hon. Gentleman will join me in welcoming the current level of rates, which are low by European standards and are allowing the substantial recovery that we so desperately need. I hear good reports from some manufacturers about volume gains and I want to see them spread ever more widely. I want to see more British products sold in British shops.
§ Mr. Ron DaviesI start by declaring my interest in a company which is registered as Quality Training Services. The people of my constituency will not thank the Secretary of State for his earlier remarks, in which he played politics with their jobs. Is he aware of the efforts that were made over the weekend to safeguard the dozens of jobs and the hundreds of training opportunities throughout south Wales which are threatened by the collapse of Commercial and Industrial Training Services Ltd. in my constituency? Is he aware that the well-known Tory quango-gatherer, Donald Walters, was chairman of the board of the failed company and that there is clear evidence of poor leadership and mismanagement?
Will the Secretary of State join me in unequivocally appealing to the three training and enterprise councils of Mid Glamorgan, South Glamorgan and Gwent to transfer the existing contracts with CITS to the new company, which was established this morning? That will create an opportunity for a fresh enterprise, with a vigorous and competitive approach, to safeguard jobs and training opportunities.
§ Mr. RedwoodOf course, I share the hon. Gentleman's aims of protecting jobs and ensuring that proper training is available. I have not yet conducted a proper review of the proposal that he has just put to me, but I will do so and see whether his method is the right way to approach the problem. He can rest assured that I will do what I can to protect training and jobs.