§ 4. Mr. Alun Michael (Cardiff, South and Penarth)What discussions he has had with businesses in Wales about the prospects for the Welsh economy. [122180]
§ The Secretary of State for Wales (Mr. Paul Murphy)Both my hon. Friend the Under-Secretary and I have held many meetings with businesses and representatives of business in Wales, ranging from the chief executive of Corus and people at the opening of Dow Corning's new factory in Barry, to representatives of small and medium enterprises. We are both acutely aware of the issues faced by business and continue to relay their concerns to Cabinet colleagues and to the First Secretary as appropriate.
§ Mr. MichaelClearly, the current weakness of the euro poses a problem for exporters in Wales, as elsewhere. 956 Will my right hon. Friend reflect on the need for investment in business in Wales? There are examples such as Dow Corning, to which he referred, and Matsui, which has taken its European manufacturing headquarters to Ammanford. Does he agree that the strength and stability of the economy leads to such long-term and important investments and that the policies of the Conservative party would pose a significant threat to their continuation?
§ Mr. MurphyI could not agree more. Today, in Middleton in Carmarthenshire, another example of a job creation scheme is the first botanical garden to be opened in this country for 200 years. It will bring more than 200 jobs and boost our tourist industry, as well as being a major centre for plant research. I visited it with my right hon. Friend the Secretary of State for Culture, Media and Sport recently, and it was evident to both of us that this flagship project is another excellent example of our new Wales.
§ Mr. Robert Walter (North Dorset)I do not think that the House will have been impressed by the mutual self-congratulations of the Secretary of State and his predecessor in answering this question. As they will both know, under the stewardship of my right hon. Friend the Member for Richmond, Yorks (Mr. Hague) and his predecessors, great advances were made in restructuring the Welsh economy. However, problems remain that this Government and the Assembly have not dealt with. The Welsh Development Agency, for example, in its recent analysis of the Welsh economy, identified a serious "enterprise deficit" in small and medium-sized businesses which, it said, were underperforming in
new business formation, innovation, research and development and investment.What discussions has the Secretary of State had with the First Secretary to solve those weaknesses that are preventing small businesses in Wales from prospering in an ever more competitive world?
§ Mr. MurphyIf the hon. Gentleman went to Carmarthenshire and visited the botanical garden to which I referred, he would see that it is not a matter of self-congratulation but the result of many years of hard work by the people who undertook the task. On his general point, the latest inward investment figures for Wales show a total investment of £547 million for 1998–99, which is even higher than the figure of £334 million in the previous year.
If the hon. Gentleman talked to the more than 13,000 young people in Wales who have benefited from the new deal, he would find that that is not a matter of self-congratulation either. If he visited all those places in Wales that are now benefiting from this Government's strong economy, and learned about the thousands of jobs that are being created, in manufacturing and elsewhere, he would realise that it will be a long time before there are any Conservative MPs in Wales.
§ Mr. Ted Rowlands (Merthyr Tydfil and Rhymney)I am sure that my right hon. Friend is aware of the importance to business and the Welsh economy of higher education standards. In that respect, is he aware that the National Assembly has not yet introduced a single pilot project to introduce education maintenance allowances to 957 support the poorest students in our communities to stay on at school and college? Will my right hon. Friend seek an explanation for that obvious and glaring omission?
§ Mr. MurphyI shall, of course, give that assurance to my hon. Friend. He has spent many years in the House championing the needs of those who need better training. I shall raise the issue he has just mentioned when I next meet the First Secretary.