HC Deb 14 March 1994 vol 239 cc603-6
3. Mr. Hanson

To ask the Secretary of State for Wales what is the current level of unemployment in Clwyd.

Mr. Redwood

The level in January 1994 was 16,739 unadjusted out of work or 9.1 per cent.

Mr. Hanson

Is the Secretary of State aware that, in the past two weeks, 80 potential jobs have been lost from Clwyd to Merseyside and a similar number have been placed under threat by the deliberate actions of the Welsh Office in respect of the mishandling of a planning application at Mostyn in Clwyd? Will the Secretary of State please explain to the House why he took those actions and why he allowed that to happen, despite repeated warnings to the contrary?

Mr. Redwood

I should be delighted to have this opportunity to put the record straight. The hon. Gentleman well knows why I took the action that I did. I had wanted the local authority to settle the issue. I thought that that was the best way forward. I thought that it would be able to take full account of the environmental objections, the jobs and the economic case.

I then received legal advice that stated that, because the application impinged on a European special protection area, I had to call it in. I had no choice. Had the local authority gone ahead and made the decision, it would have been subject to legal challenge and might not have stood up. I acted as I did because of that legal advice. It would have been better if the local authority had been asked to determine the matter. I cannot comment now on the substance of the application because I have to approach it with an open mind.

Mr. Heald

Does my right hon. Friend agree that the policies of the Government, and especially the Welsh Office, have led to a huge increase in the number of new jobs in Clwyd replacing the jobs lost in traditional industries? Would he care to pay a tribute to the work of Chwarae Teg in getting women into the work force in Clwyd, and especially in helping them with training?

Mr. Redwood

I should, indeed, like to echo my hon. Friend's comments: there has been a massive expansion in investment and job opportunities.

Dr. Howells

The right hon. Gentleman wrote those comments.

Mr. Redwood

No. My hon. Friend speaks for himself. He seems to know better than Labour Members what is good news in Clwyd and how much has been arrived at because of the Government's policies and the agencies that have been assisting. I hope that Labour Members will also welcome that news because, although there are still too many people out of work, there have been many major new projects, particularly in the energy field in that part of Wales, and there is much more good news to come.

Mr. Ron Davies

It is a truly appalling figure for Clwyd, as indeed it is for the whole of Wales. We now have 10 per cent. unemployment in Wales, and under this Government we have seen the loss of 113,000 manufacturing jobs. What action does the Secretary of State advocate to tackle those critical weaknesses in British industry, which were identified in a recent Royal Society of Arts report as chronic underinvestment, a lack of commitment, inflexibility and the failure to focus on long term goals"? Does the Secretary of State acknowledge that he has any responsibility at all for what is happening to the Welsh economy?

Mr. Redwood

Unemployment is falling and I look forward to further falls in the months ahead because of the economic policies that we are pursuing. It is a bit rich for Labour Members to come up with that criticism, because they have no ideas, no new money to offer and only one gag—the gag from the hon. Member for Dunfermline, East (Mr. Brown), who stops them saying anything that they want to say. What is the point of being a socialist if one cannot spend more of other people's money, or offer to spend more of other people's money? Our policies are based on labour market flexibility, encouragement for investment, low inflation and sound economic fundamentals.

4. Mr. Simon Coombs

To ask the Secretary of State for Wales if he will make a statement on the current level of unemployment in Wales.

Mr. Redwood

In January 1994, the seasonally adjusted unemployment figure was 127,500—a fall of 6,500 since January 1993 or an average fall of 500 a month.

Mr. Coombs

What assessment has my right hon. Friend made of the impact of a high-spending, high-taxing Welsh assembly and the European social chapter on unemployment in Wales? Would not the Labour party's policies and those of their European cronies be disastrous for Wales and lead to a reversal of the trend in unemployment which my right hon. Friend so warmly welcomes, as I do?

Mr. Redwood

I am afraid that my hon. Friend is right. An assembly that taxed more and regulated more would put businesses off going to Wales and drive out some of those already there. I understand that Labour Members are getting worried about that. They think that maybe the assembly should not have taxing powers. But surely it would have spending powers; that means that it would end up taxing more, which would be bad news for business and bad news for jobs.

Mr. Roy Hughes

With reference to the question on the Order Paper, are not the figures far too high, especially in the male sector? Does the Secretary of State recognise that part-time jobs for women will never replace the thousands of jobs lost in coal and steel? Will the Government and the Welsh Development Agency step up their efforts to bring new enterprises to Wales?

Mr. Redwood

That is exactly what we are doing. I hope that the hon. Gentleman will welcome the news today, which I just heard, of up to 600 new jobs over a three-year period from the Goodings satellite television receiver venture in Mid Glamorgan. That is extremely welcome news and means that there are likely to be further falls in unemployment which I, like Labour Members, sincerely wish to see. Of course, one in 10 out of work is far too many, but our policies of low inflation, good economic growth and attraction of investment will deliver jobs.

Mr. John Marshall

Has my right hon. Friend estimated the impact of inward investment on unemployment in Wales? Does he believe that inward investment would be encouraged by a national minimum wage, the adoption of the social chapter and the nonsenses from Brussels which are advocated by the Opposition?

Mr. Redwood

I have, indeed, looked at the figures. More than 11,000 new and safeguarded jobs in the first 10 months of this year have been attracted, as recorded by Welsh Development International, and there may have been more. Those jobs are extremely beneficial. The worry is that if the policies of the Opposition were followed, Wales would no longer be attractive for many of those companies that come, they say, because they want to benefit from being in the EC and have the added benefit of not having the same social arrangements as are enjoyed by some continental countries.

Mr. Wigley

I welcome those 600 new jobs and any other new jobs which come. Does the Secretary of State realise that 2,000 jobs are about to be lost in the gas industry, and that 400 or 500 of those are in Clwyd? On the point made by the Secretary of State a moment ago with regard to Mostyn docks, does he realise that the loss of that infrastructure project will affect not only Clwyd but my county of Gwynedd? Why was it not possible for the Welsh Office to turn that around within five weeks, as in the case of Cardiff? If that had been done, would not the project be alive and would not we be looking forward to the jobs that came with it?

Mr. Redwood

I should like to turn it around as quickly as possible and come to a fair decision, but I must take legal advice. There is no point in acting illegally, because the decision would be overturned in a court of law. A proper environmental assessment is needed so that a proper judgment can be reached, given the special European designation in that area. That is the problem, and why progress takes time. It must be done carefully so that people can see that it is done fairly.

I hope that the hon. Gentleman will welcome other good news, such as that from Amcor Packaging, where there will be 150 new jobs during the next three years, from Control Techniques in Newtown and from Stevens and George in Merthyr Tydfil, which recently announced new jobs.