HC Deb 02 December 1996 vol 286 cc652-4
2. Mr. John Marshall

To ask the Secretary of State for Wales if he will make a statement about recent projects relating to inward investment in Wales. [5209]

The Secretary of State for Wales (Mr. William Hague)

Wales is enjoying an exceptional year for inward investment.

So far in 1996, we have recorded 128 projects, promising 13,600 new jobs and £2.4 billion of investment.

Mr. Marshall

I thank my right hon. Friend for that answer, which shows that we are part of the enterprise centre of Europe owing to the fact that we have sensible industrial relations, low corporate taxes, no minimum wage and an opt-out from the social chapter. Will my right hon. Friend confirm to Finnish industrialists that they are welcome in Wales even if Finnish nurses are not welcome in Hackney?

Mr. Hague

My hon. Friend is quite right. Investment from all over the world, and nurses of any origin, are welcome in Wales. He is right to say that the United Kingdom is now the enterprise centre of Europe. Wales is an important part of that enterprise centre, and it is a particularly attractive place to live and work. In light of that record, it is extraordinary that Opposition Members want to copy the labour market policies of continental Europe, which have left millions of people out of work.

Dr. Howells

The Secretary of State will know that one of the key drivers in attracting inward investment has been the Welsh Development Agency. All of us congratulate the agency on its great work. Is he also aware of the fears throughout south Wales that, because of the money needed to attract jobs to places such as Newport, jobs in some of the key land reclamation schemes in Wales are now on stop? In my constituency, at Coedely, such a scheme has been on stop for well over a year; in the constituency of my hon. Friend the Member for Cynon Valley (Mrs. Clwyd), a scheme at the former phurnacite plant is also on stop; and there are others in Merthyr and Treharris, for example. Will the Secretary of State ensure that those vital projects—some of which involve contaminated land—will be completed soon?

Mr. Hague

I join the hon. Gentleman in congratulating the agency. I believe that it will have several more pieces of good news about inward investment to announce before the end of the year. The agency's recent record is certainly a cause for congratulation.

As the hon. Gentleman will recall from Question Time a month ago, I have increased the agency's budget in-year by £37 million for the current year. The spending decisions for the financial year 1997–98 will be announced in a couple of weeks. The agency will have to choose between priorities, which often means giving inward investment projects that might not easily recur priority over some other areas of spending. That cannot be avoided.

Mr. Alex Carlile

Does the Secretary of State agree that home-grown industry and commerce in Wales should be allowed to regard themselves as at least equal partners with inward investment projects? Will he say some words of encouragement to the Development Board for Rural Wales, to ensure that it looks as closely at the development and expansion of indigenous businesses, which sometimes feel neglected, as it does at inward investment?

Mr. Hague

I agree that that is an important part of the role of the Development Board for Rural Wales, and of the Welsh Development Agency. In the past 10 years, payments of regional selective assistance to overseas-owned companies have totalled £213 million, and payments to UK-owned companies have totalled £215 million. We have, therefore, given much more assistance to UK-owned companies—including home-grown companies from Wales—than is often recognised. That assistance will continue, as will our small firms training schemes, small firms loan guarantee schemes and the SMART and SPUR—small firms merit award for research and technology and support for products under research—schemes, all of which help small businesses. The importance of encouraging indigenous enterprise is at the heart of the work of the development board and the WDA.

Mr. Ron Davies

May I assure the Secretary of State of our continued support for the inward investment projects that he mentioned earlier? Is he aware, however, of increasing concern among existing and prospective employers about the growing skills shortage in Wales and the failure of the Welsh Office to ensure an adequate response?

The LG investment will put heavy pressure on the skills demanded in south-east Wales, especially in engineering and technology, yet the two university of Wales institutes at Newport and Cardiff are closing courses and making lecturers redundant in precisely those areas of study. Will the Secretary of State now, as a matter of urgency, stop the planned cuts in the education and training budgets and call together the development agency, training and enterprise councils, colleges and local authorities to develop a coherent and long-term strategy so that we can derive the maximum long-term benefit from the inward investment of which he is so proud?

Mr. Hague

Skills are critical in continuing to attract inward investment. That is one of the reasons why I attach such importance to modern apprenticeships, to which I directed additional resources last year. It is also why we are assisting the LG investment by helping to set up a semiconductor training centre in the vicinity of the investment. Much of the package of assistance for LG involves help with training. We have also asked further and higher education institutions to bear in mind the new industries that are coming into Wales when planning their courses over the next few years, so that they will be able to respond to the ever increasing demand for people in the ever growing high technology employment sector. I agree with the hon. Gentleman about the need for those measures; we are taking them.