HC Deb 16 February 2000 vol 344 cc937-8
6. Mr. Gareth Thomas (Clwyd, West)

What recent discussions he has held with the First Secretary on the level of unemployment in Wales. [108914]

The Parliamentary Under-Secretary of State for Wales (Mr. David Hanson)

My right hon. Friend meets the First Secretary on a weekly basis to discuss a range of issues, including the level of unemployment in Wales. I am pleased to note that, between the general election and December 1999, the seasonally adjusted count of claimants of unemployment-related benefit has fallen from 81,800 under the Conservative Government to 59,200 under the Labour Government. That is a fall of more than 27 per cent.

Mr. Thomas

I am grateful to my hon. Friend for that response. Do not those figures reflect the Government's success in implementing the new deal and the working families tax credit, and encouraging sustainable growth and low inflation? Does my hon. Friend accept that the minimum wage has had a major impact on Wales? Far from creating more unemployment, it has had a genuine impact on, and is of real benefit to, many ordinary people in Wales.

Mr. Hanson

Unemployment is at a 20-year low. In my hon. Friend's constituency of Clwyd, West, unemployment has fallen by 17 per cent. since the general election. The Government are making great strides to help create jobs and a climate for employment in Wales. The minimum wage is a valuable component, which ensures that people in Wales have decent pay. I am pleased to tell my hon. Friend that the One2One telephone company has announced the creation of 1,000 jobs in Merthyr in the constituency of my hon. Friend the Member for Merthyr Tydfil and Rhymney (Mr. Rowlands). That is good news for Wales, and for the Labour Government's handling of the economy in Wales.

Mr. Simon Thomas (Ceredigion)

Does the Minister agree that objective 1 resources are one of the best ways to create well-paid jobs in a constituency such as mine? Will he therefore join the First Minister in Wales and bust a gut to make sure that objective 1 money is additional to the Welsh block grant?

Mr. Hanson

I welcome the hon. Gentleman to his first Welsh Question Time. He is aware of the situation, as we discussed it extensively during his by-election. There is a process, and the Government are following it. He will have to wait and see, but objective 1 was secured by the Government and it will deliver real employment prospects for the people of Wales. Discussions and consideration have been undertaken.

Mr. John Bercow (Buckingham)

Given that unemployment has risen in Wales by 4,000 relative to the same quarter last year on the International Labour Organisation count, and that Business Strategies predicts an increase in unemployment of 7,000 consequent on the Government's stupid and malicious energy tax, when will the Minister abandon his smug complacency and own up to the massive damage that is being inflicted on the Welsh economy by their tax and regulatory policies?

Mr. Hanson

On 1 May 1997, 81,800 people were unemployed. In December 1999, the figure was 59,200, which is a fall of 27 per cent. Labour government is working, the people of Wales are working and investment is being brought in. The Conservative party, which would scrap the new deal and is just about content to have the minimum wage, would damage the economy of Wales dramatically.