Job Losses (Hansard, 27 June 2001)

§ 4. Chris Grayling (Epsom and Ewell)
What recent discussions he has had with the Chancellor of the Exchequer about contingency plans for dealing with job losses in Wales. [523]

§ >The Secretary of State for Wales (Mr. Paul Murphy)
I regularly attend meetings with my ministerial colleagues, including the Chancellor of the Exchequer.
Where large-scale job losses occur, the Government will take swift action to support people and communities through periods of change by investing in training and skills to help those made redundant, creating the conditions for new investment and minimising the disruption to the people involved and their communities. This we are already doing in the case of the job losses announced by Corus earlier this year, in partnership with the National Assembly for Wales.

§ Chris Grayling
Given that the Llanwern plant closed its doors for the final time this week, will the Secretary of State give us an update on the training package that has been provided for Corus workers? Will he also tell us whether his Department or the Welsh Assembly is taking responsibility for that training?

§ Mr. Murphy
I am of course aware that steel making ceases this week in Llanwern. It is a matter of great sadness to all Welsh Members, especially those of us with constituents who have been made redundant by Corus.
The Department for Education and Skills and the National Assembly for Wales have produced a package of measures to help with training. The National Assembly is spending some £7 million on training for people who have been made redundant by Corus. The Government are dealing, through the Employment Service, with job transition schemes and job clubs at all the plants affected.

§ Kevin Brennan (Cardiff, West)
Will my right hon. Friend take up the case of the proposed job losses at the 626 Selection plant in Cwmcarn in the constituency of the Under-Secretary of State for Wales? Does he agree that the decision to axe 520 jobs and transfer most of them to Dublin is both capricious and perverse? Will he seek an urgent meeting with the management to persuade them to change their minds?

§ Mr. Murphy
I share my hon. Friend's concern about the position at Selection and regret its decision to cut jobs there. As he knows, the Communication Workers Union has an alternative plan to keep those jobs in Cwmcarn. I hope that the company will consider it seriously. I also urge the company to meet the public representatives of the people in south Wales who cover that plant, including the Under—Secretary.

§ Lembit Öpik (Montgomeryshire)
The Secretary of State will be familiar with Kings Triplex Holdings in Llanidloes, which is typical of a large employer in a small town. Tomorrow, KTH is expected to announce whether it will continue to trade in Llanidloes. Obviously, if it does not, that will have devastating implications for employment there. Will he commit, therefore, to working with the WDA and his opposite number from the Assembly, as well as with local people, to ensure that firms such as KTH get the support that they need to keep jobs in those areas? If the jobs do not remain, will he commit to working in partnership to ensure that they are quickly replaced?

§ Mr. Murphy
Yes, of course I agree with the hon. Gentleman. He and I met representatives from local authorities and the trade unions recently about KTH. I hope that tomorrow will bring good news for that part of mid-Wales. The impact of such job losses in his constituency would be as serious as that caused by the job losses in Corus in parts of south and north Wales.

§ Mr. Robert Walter (North Dorset)
As has been mentioned, it is a great sadness that the last strip of steel was rolled at Llanwern yesterday. It is also of concern to the Secretary of State's friends in the trade union movement. Mr. Bill Morris of the Transport and General Workers Union in Cardiff yesterday said that unless the decline in manufacturing is reversed, the economy will become more and more dependent on financial and service industries, and that it is very short-sighted to drift into a position where no one is actually producing anything. Can the Secretary of State tell us whether he had discussions with Mr. Morris before he made those statements yesterday?

§ Mr. Murphy
I met the general secretary of the TGWU yesterday in Cardiff. Indeed, I spoke at the seminar to which the hon. Gentleman referred. While we regret the job losses at Corus and other companies in Wales, we also welcome the fact that comparing today with 1997, about 34,000 extra people are in work in Wales. The way in which we manage the change from our traditional industries to the new industries in Wales—the new high-tech companies—has to be tackled by the Assembly and the Government. I remind the hon. Gentleman yet again that, as well as the job losses. Ford has come to Bridgend with 640 jobs, Conduit has come to Cardiff with 500, Toyota to Deeside with 560, Hi Lex Cables to Baglan with 160, and there are many more.