HC Deb 05 May 1999 vol 330 cc926-7
3. Mr. David Borrow (South Ribble)

If he will make a statement on the contribution of the aerospace industry to the Welsh economy. [82087]

The Secretary of State for Wales (Mr. Alun Michael)

The aerospace industry is enormously important to Wales and employs some 13,000 people. In recent times, I have visited British Aerospace, Raytheon in Deeside and General Electric at Nantgarw, where I launched the modern apprenticeship target for Wales, and we have also seen confirmation of the continuation and expansion of jobs at, for instance, RAF St. Athan and British Airways. The aerospace industry is high on our agenda of industries with which we need to work.

Mr. Borrow

Over the years, I have had the opportunity to visit a number of airbus plants in the United Kingdom, including those in Bristol and Broughton, which employ many people from Wales as well as from Lancashire, many from my constituency.

Will my right hon. Friend join me in welcoming the success of the airbus project, which means that the airbus is now outselling Boeing in the international market and employing thousands of extra workers? Not only are new jobs being created in England and Wales but, during the next few years, jobs will be created in Scotland in producing the airbus. Is not that an example of the way in which partnership, not only across Europe but between the different parts of the United Kingdom, can bring success to the British and the European economy?

Mr. Michael

I agree with my hon. Friend. It is important that, between Wales and Scotland and the regions of England, we see joint working on projects that can bring prosperity to all parts of the United Kingdom. I am keen to see co-operation between the Welsh Development Agency and the North West regional development agency which the Government have put in place. I recently visited the plant to which my hon. Friend referred at Broughton with my hon. Friend the Member for Alyn and Deeside (Mr. Jones) where I saw the confidence and high quality of the work force and the management team.

Yes, we need to work together across boundaries, but I am sure that my hon. Friend will forgive me for saying that my priority will be to ensure that we have the strongest possible development within the aircraft industry in Wales.

Mr. Owen Paterson (North Shropshire)

The pound has risen relentlessly this year. Yesterday, it went over FF10, nudging DM3. What impact will that have on the future prospects for aerospace products made in Britain?

Mr. Michael

That gives a challenge to the British aerospace industry, as it does to other parts of manufacturing industry, a point made by my right hon. Friend the Member for Llanelli (Mr. Davies) a few moments ago. I hope that the hon. Gentleman will recognise the importance of the Government's policies in creating stability and bringing an end to boom and bust. This morning, Sir John Harvey-Jones said that a Labour-run Assembly in Wales will provide the blend of stability and innovation that Wales needs. That is what is good for industry.

Mr. Roy Beggs (East Antrim)

I welcome the Secretary of State's positive statement on the contribution of the aerospace industry to the Welsh economy, but does he also recognise that we in Northern Ireland are dependent on the stable and high—quality jobs that are provided by Shorts? Will he assure us that—once he is confirmed as First Secretary of the new Assembly, and in recognising the value of collaboration throughout the industry and in all regions of the United Kingdom—he will continue to promote such collaboration?

Mr. Michael

Yes, I shall promote it, very much indeed. I am also grateful to the hon. Gentleman for his remarks. I believe that the advent of the National Assembly for Wales —and of the Northern Ireland Assembly and the Scottish Parliament—will strengthen the United Kingdom and our ability to work together for the benefit of everyone everywhere in these islands. One of my first actions after becoming Secretary of State for Wales was to visit Belfast and to talk to people from all parties about the action that we might take together, such as on tourism. As a group of small countries on Europe's periphery, we not only have much to learn from each other, but may together promote many common concerns—recognising the global nature of some concerns, such as the aerospace industry, which we want to be successful, thereby benefiting all parts of the United Kingdom.