§ Mr. WigleyTo ask the Secretary of State for Trade and Industry what representations he has received on his industrial policy for the electronics industry in relation to job losses announced by Panasonic and Sony in Wales; and if he will make a statement. [135650]
14W
§ Dr. Howells[holding answer 30 October 2000]: I have not received any representations from the electronics industry in relation to the recent announcements by Panasonic and Sony.
With the transfer of devolved powers to the National Assembly for Wales, such representations would be referred to them.
Of course, I very much regret the job losses. The NAW is working closely with local partners and the Department for Education and Employment to provide assistance to those affected.
Michael German (National Assembly Deputy First Minister) and David Rowe Beddoe (Chairman of the Welsh Development Agency) met with senior managers from Panasonic on 27 October 2000 and Mr. German attended the meeting of the Welsh Electronics Forum on 31 October 2000. The Forum has established a special taskforce to deal with the after effects of job losses in the consumer electronics sector in Wales which will meet in the very near future.
The Government were alerted to the announcements prior to their publication on a confidential basis. Such decisions are ultimately commercial ones for the companies to take themselves to ensure their long term future. It is not the Government's policy to intervene in such decisions. In such a competitive sector as consumer electronics where companies operate on a global scale, costs are under constant review. It would be surprising, and rather worrying, if companies did not feel the need to re-assess and re-structure their operations from time to time.
Both companies are still employing around 3,000 people in Wales between them and are committed to continuing their presence in Wales. Both are hoping to bring new higher value, more sophisticated production to their Welsh plants in the near future, and are investing heavily in their research and development facilities in Wales. This demonstrates the confidence that both companies have in the UK.
The best contribution that the Government can make is to secure long term economic stability based on low inflation and sound public finances. This will allow business to invest and plan ahead with confidence.