HC Deb 29 April 1996 vol 276 cc755-6
5. Mr. John Marshall

To ask the Secretary of State for Wales if he will make a statement about inward investment into Wales. [25636]

Mr. Hague

The Welsh Development Agency recorded more than 120 inward investment projects for 1995–96, which promised more than 12, 000 new and safeguarded jobs and investment of more than £970 million. These are excellent results that include Ford's £340 million expansion at Bridgend, and Newport Wafer-Fab's £230 million expansion near Newport.

Mr. Marshall

Does my right hon. Friend the Secretary of State agree that his success in attracting new industry to Wales is due to the fact that we have not signed up to the social chapter, that we do not have a national minimum wage and that we do not have corporate taxes? Will the people of Wales not contrast my right hon. Friend's success in fostering new investment with the complaint by the shadow Secretary of State that he has been too successful in getting industry from Korea?

Mr. Hague

My hon. Friend is right—and he made his point so well that he even drew a cheer from the hon. Member for Bolsover (Mr. Skinner). That must be something of a first in this context.

As my hon. Friend pointed out, one of the most attractive aspects of the United Kingdom for inward investors is our flexible labour market. In that regard, there is a considerable contrast between the UK and other parts of the European Community. The awkward, tragic part of Labour's policy is that, in the name of trade union rights, Labour would deny jobs to thousands of people.

Mr. Wigley

I apologise for my late arrival, which was again due to problems with trains.

Does the Secretary of State agree that, although there has been a modicum of success in attracting inward investment into the M4 corridor in south-east Wales and into parts of north-east Wales, considerable difficulty is being experienced in attracting inward investment and other projects to western parts of Wales, including the old county of Dyfed and Gwynedd? Given that Ireland has had enormous success in attracting inward investment to an area even further west, how does the Secretary of State intend to change the strategy in order to overcome the clear problems that exist in west Wales?

Mr. Hague

The hon. Gentleman did the Welsh Office and the Welsh Development Agency a bit of an injustice in saying that we had enjoyed a "modicum" of success. The figure that I have announced today—12, 000 new and safeguarded jobs last year—exceeds the target set for the WDA, and we should all congratulate it.

I agree with the hon. Gentleman that it is more difficult to persuade inward investors to go to the westerly parts of Wales. He will have heard me say that in response to earlier questions. The answer is for the Government, the WDA and local authorities to work together to identify sites and attract investors, and to ensure that inward investors consider all potential sites, including those in more westerly parts of Wales. I am very much committed to taking all those steps.

Mr. Hain

Why, under the present Government, has there been no inward investment in Neath?

Mr. Hague

The hon. Gentleman will have heard me refer to the huge inward investment that has taken place in many parts of Wales. I am sure that, as the hon. Member for Neath, he will want to portray an image of this country and his constituency that is as friendly as possible to enterprise and the promotion of business, and no doubt that will be of great help.