HC Deb 14 February 1994 vol 237 cc655-6
9. Mr. John Marshall

To ask the Secretary of State for Wales what is the latest estimate of the level of inward investment in Wales in the past five years.

Mr. Redwood

In the past five years, there have been 800 inward investment projects, creating or safeguarding 70,000 jobs and accounting for more than £4,000 million of investment.

Mr. Marshall

I thank my right hon. Friend for that answer. Does he agree that firms come to Wales because they have access to the European Community, without suffering the handicap of a national minimum wage, a social charter or the suggestion of a four-day week? Does he agree also that another attractive factor is that corporate taxes in Wales are lower than in other European Community countries?

Mr. Redwood

That is absolutely right. Firms come to Wales for the low taxes and the good environment for carrying out business activity and because they welcome the flexibility and skills of the Welsh work force. They have always told me that. It is the absence of the sandbags that the Labour party would place on the Welsh economy which is particularly attractive to them. That just shows how important it is to carry on with our methods for greater progress.

Mr. Ainger

Does the Secretary of State accept that, if the hypothesis of the hon. Member for Hendon, South (Mr. Marshall) was correct, the county of Dyfed, with the lowest earnings in the whole of Wales—some would argue that it has the lowest earnings in the United Kingdom—would be filled with Japanese factories? It is not. Is not it a fact that the communications problems of rural Wales and its problems with rail and motorway links, are a disincentive to inward investment and that, over the past few years, the Government have failed lamentably to improve those communications?

Mr. Redwood

People do not come for low earnings; they come for good value from the work force, unencumbered by high social taxes and other impositions. They certainly would not come if there were a special tax on being Welsh, imposed by a Welsh assembly. It is important to bear that in mind.

However, I accept that more remote regions need special assistance, especially help from the Government in improving transport links. That is exactly what I intend to provide.

Mr. Biffen

What is the most recent assessment that my right hon. Friend is able to make of the likelihood of the New Zealand firm Fortex establishing a meat processing plant on the Montgomeryshire-Shropshire border?

Mr. Redwood

I have no recent intelligence, but I was aware of the project some weeks ago. I believe that discussions are continuing.

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