§ Mr. John Morrisasked the Secretary of State for Wales (1) whether he will now increase the allocation of money to assist the South Wales steel areas for 1981–82, in view of the likelihood of underspend in 1980–81;
(2) what are the reasons for the low rate of expenditure of the £48 million allocated to the South Wales steel areas; and when this underspend was first realised.
§ Mr. Nicholas EdwardsFunds allocated to the Welsh Development Agency for expenditure in the South Wales steel areas total £21.7 million at 1980 survey prices. The agency is now incurring substantial expenditure on the preparation of sites and building of factories and on the purchase of certain major sites subject to the completion of legal formalities. I am informed by the agency that if present expectations are fulfilled it will on the same price 41W base spend £21 million. £3.1 million was allocated to Cwmbran development corporation, of which £2.9 million has already been spent. It is therefore premature to conclude that there will be a significant underspend in 1980–81.