HC Deb 29 April 1996 vol 276 cc752-4
3. Mr. Barry Jones

To ask the Secretary of State for Wales what assessment he has made of the prospects for manufacturing industry in Wales. [25634]

Mr. Hague

The Government's economic policies are delivering sustainable growth with low inflation. Wales is benefiting from this good performance. In 1995, manufacturing output in Wales grew at double the United Kingdom rate and the prospects for manufacturing industry in Wales are excellent.

Mr. Jones

May I invite the right hon. Gentleman to visit RAF Sealand in my constituency, where there are at least 1, 600 highly skilled and very productive jobs, and where the work force is highly co-operative? How can he help us defeat the predatory intentions of companies such as Brown and Root of the United States and GEC, which seek under the umbrella of market testing to get the contract for the work that RAF Sealand now does? Does he agree that in the Falklands war—he may just remember it—and the Gulf war, RAF Sealand was magnificent and that if there were to be another such challenge, RAF Sealand would need to be under RAF leadership? What we want at Deeside, and what we want the right hon. Gentleman's help to achieve, is for the in-house bid to win. Will he help us?

Mr. Hague

I remember the Vietnam war. I am older than the hon. Gentleman thinks, even if I was in short trousers. I am aware of the hon. Gentleman's concern about RAF Sealand. He has expressed it to me before. The Government believe that competition is the best way to ensure value for money. That is the reason for the market test proposals. We are conscious of the anxieties which the hon. Gentleman and others have expressed. That is one reason why the market test at Sealand is being carried out within the framework of Government ownership.

Whether the in-house bid or a commercial contractor wins the competition—the in-house bid should have a strong chance of doing so, given the expertise of the work force—Sealand will continue to provide a broad capability. We expect the Transfer of Undertakings (Protection of Employment) Regulations 1981 to apply and to protect the interests of the work force.

Mr. Ron Davies

Will the Secretary of State join me in sending good wishes for its campaign for manufacturing jobs to the Wales Trades Union Congress, which meets at its annual conference at Llandudno later this week? Is he entirely happy at the recent news that Ronson is transferring petrol lighter production from Korea to Gwent, apparently on the ground that Welsh workers can now undercut Korean workers by 20 per cent? Ronson's chief executive claims that as Korea is being transformed into a world-class economic player and home of international giants, it can now dispense with such low-wage jobs. Does the Secretary of State feel proud that after 17 years of Conservative Government, all that he can offer Wales is Korean cast-offs?

Mr. Hague

I am delighted that the TUC is launching a campaign for manufacturing jobs. Since December 1985 manufacturing employment in Wales has grown more than in any other United Kingdom region. I am sure that the TUC will want to campaign for the policies of Her Majesty's Government that have produced that particular success.

Mr. Morgan

Since when?

Mr. Hague

Since 1985.

The particular case to which the hon. Member for Caerphilly (Mr. Davies) refers has been misrepresented in the media in the past few days. Wages were not the only factor that helped to draw companies to Wales. One of the very powerful additional factors was the non-wage labour costs, which in this country are £18 for every £100 of wages and in other parts of Europe are between £32 and £44 for every £100 of wages. So we must look at all the factors that draw jobs and investment to Wales. Those factors taken together are drawing jobs and investment to Wales and I want that to continue.