§ 2.46 p.m.
§ Lord DiamondMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what steps are being taken to monitor the effects on inward investment of the recent reductions in regional aid.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)My Lords, from the beginning of this year we are collecting statistics on a quarterly basis from the relevant industrial development agencies in the United Kingdom in respect of both active projects and investment decisions within their localities.
§ Lord DiamondMy Lords, can the noble Lord the Minister tell me whether the press is correct in asserting that it is the reduction in regional aid which has enabled West Germany to outbid the offer made by the Welsh Development Agency to an American chip manufacturer who was going to invest in Cwmbran no less than £40 million, leading to the creation of 600 new jobs?
§ Lord Lucas of ChilworthMy Lords, I do not believe that the report to which the noble Lord, Lord Diamond, refers is, in fact, correct. My understanding is that the company decided to locate in Germany because most of its customers were in Germany. I should add that I have recently returned from Germany, where I did not hear any comment from potential investors in this country that would give rise to the thought in my mind that the change in assisted area incentive grants is the first and only consideration of inward investment plans.
§ Lord DiamondMy Lords, in view of the lack of competition, may I ask yet another question? Will the noble Lord the Minister be good enough to look into this himself? It is a serious allegation; 600 jobs are a lot of jobs. I should be grateful if he would look into it.
§ Lord Lucas of ChilworthMy Lords, I reiterate what I said in answer to the noble Lord's first supplementary question. However, I should be glad to have a further look. If I find on considering it further that the information I have given is not correct, I will write to him; if it is correct, I will not.
§ Lord Cledwyn of PenrhosMy Lords, in view of the severe unemployment situation in that area, can the noble Lord tell the House what consultations took place with the Welsh Development Agency on this issue? Can he say whether the agency was fully consulted and, if so, what was its reaction to the present situation?
§ Lord Lucas of ChilworthMy Lords, I very much regret that I cannot give the noble Lord the Leader of the Opposition that information. It is a little wide of the original Question. If he would particularly like an answer, I will certainly investigate it.