HC Deb 22 January 1996 vol 270 cc10-1
7. Mr. John Marshall

To ask the Secretary of State for Wales what is the most recent unemployment figure for Wales; and what is the European Union average. [8835]

Mr. Richards

The latest available unemployment rate for Wales on an internationally comparable basis is 8.3 per cent. for autumn 1995. The European Union rate in October 1995 was 10.6 per cent.

Mr. Marshall

Will my hon. Friend confirm that unemployment in Wales is lower than in Spain, Italy, France and Germany, all of which follow the sorts of policies advocated by the Labour and Liberal parties? Is that why the Liberal Democrats are regarded as naive on the economy?

Mr. Richards

My hon. Friend is absolutely correct. The Liberal Democrats are indeed naive, when they bother to turn up. When he talks about the Welsh economy, that reflects the fact that Wales does not have any of the economic and welfare baggage of the European Union, such as the social chapter or the minimum wage. Perhaps more importantly, Wales does not intend to take on board any of the federal European political baggage, which other countries want to do.

Let me illustrate to my hon. Friend what that means to Wales in terms of jobs—I hope that Opposition Members will listen. It means investment by Bosch of Germany resulting in 1,000 jobs; by L'Oreal of France, more than 500 jobs; by FRAM of Italy, more than 500 jobs; Valeo of France, 660 jobs; Kronospan of Leichtenstein, 420 jobs; MVO Spa of Italy, more than 44 jobs; Axa France, 277 jobs. I am sure that there are more jobs to come where they came from.

Mr. Alan Williams

Is not the tragedy for Wales in the truth of the Minister's boast—that this may be the Government's best year for unemployment? Is it not a fact that in this, their best year, more than 10 million more working days will be lost through unemployment than were lost in 1979? Does not the horrendous number of lost days that must have accumulated over the past 16 years explain the poverty and deprivation that has become all too common in Wales?

Mr. Richards

The tragedy for Wales is that the Labour party still has such a high representation there. None of us will forget the tragedy of days lost through strikes when Labour was in power and until we changed the law. When the right hon. Gentleman talks of days lost through unemployment, I should remind him that inflation is down, interest rates are down, unemployment is down, productivity is up, average earnings are up, output is up and confidence is up. The only thing that could undermine that confidence is the Labour party.

Mr. Sykes

I know that my hon. Friend needs no more ammunition than he has already fired this afternoon but will he tell the people of Wales about a large company in my constituency that found that, because of the social chapter, it could not afford to build a factory in France and decided, therefore, to double its production line in Scarborough, thus guaranteeing the jobs of my constituents?

Mr. Richards

I am delighted that my hon. Friend has drawn that example to the attention of the House. He is an experienced industrialist and employer—matters of which the Labour party has very little experience.

Mr. Morgan

I apologise for my late arrival, which was due to train failure. [Interruption.] I am grateful to the hon. Members who have put the word "Tory" into praetorian guard by being here today.

Does the Minister accept that, contrary to the impression that he has given that Wales is a land flowing with jobs, milk and honey, his own recent publication "Government Expenditure and Revenue Wales 1994/95" shows that Wales' gross domestic product per head is 15 per cent. below the British average and 20 per cent. below the United Kingdom average and that Wales therefore produces tax receipts 20 per cent. below the UK average? Does not that suggest that, in spite of the investments that he mentioned—some of which, including FRAM, are 20 years old—Wales does not flow with milk and honey and would have a far higher standard of living if the standard of living of some of the countries that he mentioned as bad examples applied?

Mr. Richards

The hon. Gentleman has forgotten the state that Wales was in when we inherited it in 1979, with clapped-out public sector industries that cost the UK taxpayer £50 million a week. Since we privatised them, they have contributed some £50 million a week to the Exchequer. He cannot seriously expect anyone to believe that Wales is not now an infinitely better place in which to work and live than it was in 1979.