HC Deb 13 March 1995 vol 256 cc550-1
8. Mr. Booth

To ask the Secretary of State for Wales if he will make a statement on the progress in Wales of privatisation policy.

Mr. Redwood

Privatisation has brought lower prices—telephone charges are down by one third in real terms, and gas prices are down by more than one fifth. It has brought better service, more choice of telephones and better standards for dealing with customers. It has created several important private sector companies in Wales. With their new freedoms, they can now make a bigger contribution to the Welsh economy. In relation to the water industry, privatisation has increased the number of beaches up to decent standards from 48 per cent. in 1986 to 76 per cent. in 1994. I hope that more progress will soon be made on that figure.

Mr. Booth

As, today, the right hon. Member for Chesterfield (Mr. Benn) and the hon. Member for Bolsover (Mr. Skinner) have restated their belief in more public ownership—whereas the people of Wales, whether taxpayers, customers or shareholders, know the benefits of privatisation—will my right hon. Friend restate and explain to the people of Wales the benefits of privatisation, and press on with more?

Mr. Redwood

I and my right hon. Friends will do exactly what my hon. Friend suggests. One important consequence of that policy is that more Welsh and British companies are world players in the world marker. That can take place only if they are freed of public sector restrictions. It is then down to the talents of company employees and to the imagination of the management to win in the world market. That is exactly what the best privatised Welsh companies are doing.

Mr. Donald Anderson

When the Secretary of State is tempted to embark on further privatisation proposals, will he consider with some humility what happened in relation to the cardiac unit at Morriston Hospital NHS trust? His unique decision to put that cardiac project out to tender delayed by one year the start of the project and caused immense anguish to many Welsh cardiac patients, who had to travel to London. In the event, the solution achieved—the victory of the in-house team—was what everyone wanted all along.

Mr. Redwood

I am glad that Opposition Members are pleased with at least one part of the Government's health policy. I, too, welcome the victory of the in-house team. It put together a creditable bid. It showed that it would provide good value, which was the object of the exercise. This is not a specifically Welsh initiative. It is a common UK policy, where we decided that it was best to test the market to ensure that we got good value for big capital projects. It did not cause delay in the way that the hon. Gentleman suggests. The business case and other paperwork must be produced, whether a project is publicly or privately financed.