§ 4. Mr. Elfyn Llwyd (Meirionnydd Nant Conwy)When he last met the First Minister of the National Assembly for Wales to discuss the current employment prospects for the country; and if he will make a statement. [136865]
§ The Parliamentary Under-Secretary of State for Wales (Mr. David Hanson)I meet the First Minister regularly and discuss a wide range of issues, including employment in Wales. There has been a steady increase in employment. The number of people of working age in employment in Wales has increased, from more than 1,181,000 in May 1997 to more than 1,215,000 in May 2000. Figures published today by the labour force survey of the Office for National Statistics show that the number of people in work in Wales is now 1,261,000.
§ Mr. LlwydGross domestic product in Wales has fallen by 3 percentage points since new Labour took 926 office, and we have lost several thousand jobs in the Japanese hi-tech industries in south Wales recently. Have the Minister and the Secretary of State made any representations to their colleagues at the Department of Trade and Industry? If not, why not?
§ Mr. HansonWe have regular discussions with all Departments about the economy in Wales.
Employment in Wales has increased by 80,000 since the general election. Youth unemployment has fallen by 75 per cent. since the election, thanks to the new deal, and long-term unemployment has fallen by 60 per cent. Genuine difficulties occasionally occur in industry in Wales and elsewhere, but we are dealing with the fall in GDP through objective 1 funding, and we will do all we can to ensure that employment in Wales continues to rise.
§ Mr. Chris Ruane (Vale of Clwyd)Will my hon. Friend join me in congratulating the Welsh development agency and the Devonshire county council economic development committee on the creation, in the past four weeks alone, of 480 jobs at WTS Holdings in Prestatyn, 170 jobs at Hotpoint in Bodelwyddan, 150 jobs at TRB in St. Asaph, 1,000 proposed jobs related to Devonshire county council objective 1 projects, and 300 jobs at Morrison's superstore?
§ Mr. HansonI will certainly join my hon. Friend in congratulating those companies on creating jobs—[Interruption.]
§ Mr. SpeakerOrder. There is a great deal of noise in the Chamber. The House must come to order.
§ Mr. HansonThe job opportunities in Denbighshire and my hon. Friend's constituency are in no mean part due to his efforts. The employment increases that have occurred are part of the strong, stable economy that we have in Wales—as, indeed, are the 80,000 new jobs that have been created since the general election. We now have the lowest level of unemployment in Wales for some considerable time—certainly, lower than that throughout the Conservative years.
§ Mr. John Bercow (Buckingham)Given last week's finding of the National Centre for Social Research that 80 per cent. of those who have supposedly found jobs through the new deal for young people would have got them any way; that people completing the training and education option of the new deal are twice as likely not to get a job as to get one, and that the average cost for each job through the new deal is about £17,000, why does not the hon. Gentleman give up the unequal struggle and admit that the new deal for young people provides a rotten service at a rip-off price?
§ Mr. HansonI should be surprised if a Question Time went by without the hon. Gentleman whingeing about the new deal. The real issue is that youth unemployment in Wales has fallen by 75 per cent. since the general election. That is in no mean part due to the efforts of the new deal and the Employment Service. I have met new deal workers throughout Wales, all of whom benefit from the scheme. Employers enjoy the scheme and find it worth while, as do the people on it. Given what the hon. 927 Gentleman has said, they know that the Conservative party would abolish it. That will help us no end at the general election.
§ Mr. Alun Michael (Cardiff, South and Penarth)Last week, I met some young people on the new deal—people who have been given hope and opportunity as a result of being taken into work by the new deal. They are the sort of people who were abandoned by the Conservative party. Does my hon. Friend agree that it would be rather nice if the hon. Member for Meirionnydd Nant Conwy (Mr. Llwyd) were to have a word with his hon. Friend the Member for Ynys Môn (Mr. Jones), who is sitting next to him, and persuade Plaid Cymru in the National Assembly for Wales to start helping this Government and the Government of Wales in the Assembly to make the most of the opportunity provided by objective 1 to create jobs and opportunities for young people and all people in Wales?
§ Mr. HansonWhingeing is not the prerogative of the hon. Member for Buckingham (Mr. Bercow); with regard to objective 1, it is also that of Plaid Cymru Members. The new deal is working in Wales; it has created jobs and reduced unemployment, especially among young people. It is worth while, but the Conservative party does not support it, and Plaid Cymru is a little lukewarm about objective 1.
§ Mr. Nigel Evans (Ribble Valley)Sadly, today's figures show that unemployment is on the rise and, indeed, that unemployment in Wales is on the rise, with thousands of job losses in the manufacturing sector. The M4 corridor used to be a magnet for inward investment. Now, unfortunately, it is job-loss alley, with Panasonic, Sony, Hitachi and Corus announcing recent job losses. Does the Minister think that the introduction of the climate change levy as proposed by the Government will help or hinder job creation in Wales?
§ Mr. HansonFrom the Ribble Valley, unemployment may appear to be rising in Wales, but those of us who represent seats in Wales know that it is definitely falling. The figures announced today show that unemployment is lower than it was yesterday. That is a genuine fact for the hon. Gentleman to chew on in due course. Despite the difficulties with Sony and other companies, there is still a great deal of high-tech investment in Wales. It should not be forgotten that 3,000 people still work for Panasonic and Sony in Wales.
On the climate change levy, the hon. Gentleman knows the views of the House. The House has voted for it. Many businesses will benefit from the levy, as will the environment, and I support it.
§ Mr. EvansDoes not that response show that the Government are simply not listening? While the Labour-dominated Welsh Assembly is spending more than £40 million on a new building for itself—three times the original estimate—businesses are being attacked by the Government on several levels, with £5 billion of extra taxes, as well as £5 billion of extra regulation, being heaped on them. Meanwhile, we have a Prime Minister who is prepared to sign up to anything in Europe, which will make Britain less competitive than other countries. That means that we are exporting jobs from this country to our competitors. Will the Secretary of State meet 928 representatives of the employers—the CBI, the Institute of Directors and especially the Federation of Small Businesses—and listen to them, particularly in regard to their campaign to ensure that the climate change levy does not damage Wales?
§ Mr. HansonThe hon. Member for Ribble Valley (Mr. Evans) has yet again missed the point. If he had listened to what I said, he would have heard that unemployment has fallen by 80,000 in Wales since the general election. There is positive investment in our community in Wales. It is creating jobs. The Secretary of State meets businesses, the CBI and small businesses regularly—I was with him on Friday evening last week—to discuss issues. They know that the way to a strong economy is through the Government's policies. The Ribble Valley ranter can rant on all he likes, but he will not get far.
§ Mr. Denzil Davies (Llanelli)Will my hon. Friend, when he meets the First Secretary, raise with him the recent report that the venture capital firm 3i has closed its offices in Cardiff because of a lack of business opportunities and moved to Bristol? Will he press the First Secretary to do everything that he can to remedy the situation that created that?
§ Mr. HansonI will look into my right hon. Friend's points. I am not aware of the situation that he has raised, but I will look into it and discuss it with the First Minister.