HC Deb 17 January 1994 vol 235 cc513-5
4. Mr. Barry Jones

To ask the Secretary of State for Wales what measures he will adopt to create jobs and to bring down unemployment.

The Secretary of State for Wales (Mr. John Redwood)

Low interest rates, the promotion of Wales as a great manufacturing and service centre and low inflation underpin our policies to promote Wales vigorously and get unemployment down, and they are working—in the past month alone, there were 1,800 more people back in work.

Mr. Jones

With the massive number of 127,000 jobless Welsh people, will the Secretary of State pledge that the Government will protect national and constituency interests in the aerospace industry, bearing in mind the outstanding GATT negotiations and the airbus project? Will he step up his efforts for manufacturing jobs and attack single-parent families less? Will he also work harder to tackle unemployment and engage less in Cabinet intrigue?

Mr. Redwood

I am promoting Wales vigorously—far more vigorously than are Opposition Members. As a result, a lot of investment is coming to this country and our national policies are working, at a time when unemployment is rising on the continent of Europe.

Unemployment in Spain is at 22 per cent., in Germany at 10.5 per cent., in France at 12 per cent., in Italy more than 10 per cent., in the United Kingdom below 10 per cent. and in Wales less than 10 per cent. and falling. Of course I will do anything in my power to carry on the recovery in Wales, because we need more jobs and we shall get more jobs by following Conservative policies.

Mr. Richards

When my right hon. Friend visited Pilkington Optronics in my constituency last Monday, did he get the impression that it was a company bristling with optimism and ideas? Does not that augur well for the future of manufacturing in Wales, which has been helped not least by my right hon. Friend's decision to give the green light to the Rhuddlan bypass?

Mr. Redwood

I agree with my hon. Friend and I am grateful for his kind comments about the bypass scheme. I saw Pilkington Optronics and I saw other companies there at the leading edge of technology, with extremely good manufacturing activities, going for the best in the world and making sure that they win the markets accordingly.

On Saturday, I had the privilege to see the Welsh rugby team sweep magnificently to victory. It was winning for Wales, just as the industrialists of north-east Wales are winning for Wales. I am sure that all hon. Members present will want at least to send our congratulations to the Welsh rugby team.

Mr. Roy Hughes

In regard to the proposed reorganisation of local government in Wales, does the Secretary of State appreciate that many employees in that service are apprehensive about their future employment prospects? Bearing in mind the tremendous service that local government has given to Wales for so many years, will the Secretary of State give an assurance to those employees today that their future is secure?

Mr. Redwood

I can assure the vast majority of people working in local government in Wales that their futures are safe. Their employers will need them even after the change of responsibilities and the introduction of the unitary councils. The vast majority are providing services to the public and they will be as needed in three or four years' time as they are today. However, if there is waste and bureaucracy, we hope that that will be sorted out during the transfer to unitary status. Sensible councils will plan ahead so that they do not need to sack people but can use natural wastage to make the necessary adjustments.

Mr. John Marshall

Has not the Welsh economy benefited from the inward investment that has taken place because of the low corporate tax regime that the Government have encouraged, because the Government refused to leave the European Community, as advocated by the Labour party in 1983, and because they refused to sign up to federalism and the social chapter, as it advocated in 1992?

Mr. Redwood

I agree that our low income tax rates and our low corporation tax rates have been important in attracting investors to Wales and other parts of the United Kingdom. What is more, were there ever to be the type of assembly that Opposition Members seek, with powers to impose extra taxes, laws and regulations on Wales, that would drive those investors away. That is why we do not want such an assembly. We want Wales to be open for business and winning in the world.

Mr. Ron Davies

It seems that we have a developing tradition of English Members of Parliament who become Secretary of State for Wales being overcome by their own hype. I do not think that any of us in Wales would share the present Secretary of State's views that he made much of a contribution to the marvellous victory that we had on Saturday over Scotland.

Does the Secretary of State realise how dishonest he is being in ignoring last week's devastating news of nearly 1,000 job losses in Wales, most notably at BP Baglan bay and at Wella in Llantrisant? The continuing pattern in Wales is the replacement of full-time jobs with unskilled temporary employment and, despite wages being the lowest in the United Kingdom, unemployment is more than the national average. The number of vacancies is down and unemployment is falling at a slower rate than in the United Kingdom as a whole.

If the Secretary of State wants to get back to basics, why does not he start doing the job that he is being paid to do—arguing for policies that will get Wales back to work? Does not he realise that his petty squabbles with the Prime Minister about personal morality are bringing him into contempt and ridicule and that the people of Wales have to pay the price?

Madam Speaker

Order. If I heard correctly, I understood the hon. Gentleman, in his earlier remarks, to accuse the Secretary of State of being dishonest. I believe that he did so and I should be very grateful if he would amend that comment.

Mr. Davies

I did not accuse the Secretary of State of being dishonest. If I have done so, I withdraw the remark and apologise.

Madam Speaker

I am much obliged.

Mr. Redwood

I am obliged to you, Madam Speaker. The text of my remarks will show clearly that I was praising the rugby players for their victory. The victory was theirs and theirs alone, although the whole of Wales takes great delight in their success. It is my job to lead the Welsh team in the industrial and commercial area to equivalent success.

Mr. Rogers

What about jobs?

Mr. Redwood

It was a long question, which included rugby as well as jobs. Of course I saw that some unfortunate job losses were announced over the past month. I also saw many job gains announced. I am pleased to say that the gains outstripped the losses and that unemployment fell. I saw the Royal Opera house announcement, the Calsonic announcement, the Greenberg Glass announcement, the Europressings announcement, the Cardiff Carbides announcement and many others. We need many more such announcements and I will press on to get many more. If there are areas of especial trouble, Welsh Office assistance will, of course, be there in especial quantities.