HC Deb 05 March 1998 vol 307 cc734-5W
Mr. Öpik

To ask the Secretary of State for Wales (1) how much public money was paid in respect of the Merchant Designs Manufacturing plant in Machynlleth; and if he will make a statement; [31895]

(2) what involvement his Department has in investigating the financial arrangements of Merchant Designs Manufacturing in relation to the factory in Machynlleth; and if he will make a statement; [31897]

(3) what guidance he has given to the Development Board for Rural Wales in respect of the search for a new buyer for the former Merchant Designs Manufacturing plant in Machynlleth; and if he will make a statement; [31899]

(4) what assessment he has made of the potential for attracting new jobs to Machynlleth; and if he will make a statement; [31894]

(5) if he will visit Machynlleth to assess the impact on local residents of the closure of the Merchant Designs Manufacturing factory; and if he will make a statement; [31898]

(6) what special financial assistance he is giving to Machynlleth following the closure of the Merchant Designs Manufacturing plant in the town; and if he will make a statement. [31900]

Mr. Hain

No public money was paid in respect of the acquisition by Merchant Designs Manufacturing of the plant at Machynlleth although the company was offered a one-year rent concession by the Development Board for Rural Wales to the value of £33,000. The company also received funding from Powys TEC for the retraining of staff. The financial arrangements for the take-over of the former Laura Ashley plant were a matter for Laura Ashley and Merchant Designs Manufacturing and the Welsh Office has had no involvement in them.

Whilst guidance specific to Machynlleth has not been issued, it remains our priority to ensure that increased resources are devoted to the western areas. As part of its efforts to attract new jobs to the area, the Board has made a substantial investment in developing the Dyfi Eco Park where two units are under construction and where the prospects for letting both units shortly after completion are considered to be good. The closure of the Merchant Designs Manufacturing operation has also generated interest in both the premises and the skilled workforce and a number of inquiries are being actively pursued by the Development Board.

My right hon. Friend has no plans to visit the area at present.