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Unemployment Statistics
7. Mr. John Marshall: To ask the Secretary of State for Wales what is the most recent unemployment figure for Wales; and what is the European Union average.[8835]
Mr. Richards: The latest available unemployment rate for Wales on an internationally comparable basis is8.3 per cent. for autumn 1995. The European Union rate in October 1995 was 10.6 per cent.
Mr. Marshall: Will my hon. Friend confirm that unemployment in Wales is lower than in Spain, Italy, France and Germany, all of which follow the sorts of policies advocated by the Labour and Liberal parties? Is that why the Liberal Democrats are regarded as naive on the economy?
Mr. Richards: My hon. Friend is absolutely correct. The Liberal Democrats are indeed naive, when they bother to turn up. When he talks about the Welsh economy, that reflects the fact that Wales does not have any of the economic and welfare baggage of the European Union, such as the social chapter or the minimum wage. Perhaps more importantly, Wales does not intend to take on board any of the federal European political baggage, which other countries want to do.
Let me illustrate to my hon. Friend what that means to Wales in terms of jobs--I hope that Opposition Members will listen. It means investment by Bosch of Germany resulting in 1,000 jobs; by L'Oreal of France, more than 500 jobs; by FRAM of Italy, more than 500 jobs; Valeo of France, 660 jobs; Kronospan of Leichtenstein,420 jobs; MVO Spa of Italy, more than 44 jobs;Axa France, 277 jobs. I am sure that there are more jobs to come where they came from.
Mr. Alan Williams:
Is not the tragedy for Wales in the truth of the Minister's boast--that this may be the Government's best year for unemployment? Is it not a fact that in this, their best year, more than 10 million more working days will be lost through unemployment than were lost in 1979? Does not the horrendous number of lost days that must have accumulated over the past16 years explain the poverty and deprivation that has become all too common in Wales?
Mr. Richards:
The tragedy for Wales is that the Labour party still has such a high representation there. None of us will forget the tragedy of days lost through strikes when Labour was in power and until we changed the law. When the right hon. Gentleman talks of days lost through unemployment, I should remind him that inflation is down, interest rates are down, unemployment is down, productivity is up, average earnings are up, output is up and confidence is up. The only thing that could undermine that confidence is the Labour party.
Mr. Sykes:
I know that my hon. Friend needs no more ammunition than he has already fired this afternoon but will he tell the people of Wales about a large company in my constituency that found that, because of the social
Mr. Richards:
I am delighted that my hon. Friend has drawn that example to the attention of the House. He is an experienced industrialist and employer--matters of which the Labour party has very little experience.
Mr. Morgan:
I apologise for my late arrival, which was due to train failure. [Interruption.] I am grateful to the hon. Members who have put the word "Tory" into praetorian guard by being here today.
Does the Minister accept that, contrary to the impression that he has given that Wales is a land flowing with jobs, milk and honey, his own recent publication "Government Expenditure and Revenue Wales 1994/95" shows that Wales' gross domestic product per head is15 per cent. below the British average and 20 per cent. below the United Kingdom average and that Wales therefore produces tax receipts 20 per cent. below the UK average? Does not that suggest that, in spite of the investments that he mentioned--some of which, including FRAM, are 20 years old--Wales does not flow with milk and honey and would have a far higher standard of living if the standard of living of some of the countries that he mentioned as bad examples applied?
Mr. Richards:
The hon. Gentleman has forgotten the state that Wales was in when we inherited it in 1979, with clapped-out public sector industries that cost the UK taxpayer £50 million a week. Since we privatised them, they have contributed some £50 million a week to the Exchequer. He cannot seriously expect anyone to believe that Wales is not now an infinitely better place in which to work and live than it was in 1979.
8. Mr. Denzil Davies:
To ask the Secretary of State for Wales when he next plans to meet the board of the Welsh Development Agency to discuss its policy on inward investment.[8836]
Mr. Hague:
I regularly meet the board of the Welsh Development Agency to discuss a wide range of issues.
Mr. Davies:
When the Secretary of State next meets the board, will he point out that the M4 corridor does not stop at Bridgend and ask why a constituency such as mine, which still has 30 per cent. of its work force engaged in productive industries and which has a long tradition of manufacturing engineering, has had no major investment at all for the past 10 years?
Mr. Hague:
The right hon. Gentleman is right to point to that strong tradition in his constituency and I should certainly like us to maintain and improve our efforts to ensure that the spread of inward investment around Wales increases. Of course, inward investors are attracted to particular sites, but the Welsh Development Agency has targets to ensure a greater spread of inward investment. Llanelli has major inward investment employers such as Calsonic and Camford Pressings from Germany, although
Lady Olga Maitland:
Has my right hon. Friend had an opportunity to discuss with the Welsh Development Agency the difficulties that it would face should this country ever be under a Labour Government who were committed to a social chapter and a minimum wage, which would destroy inward investment?
Mr. Hague:
Some of the factors that attract inward investors are lower tax on companies and less regulation than is to be found in the rest of the European Community, and one factor in producing them is not being part of the social chapter. Were we to sign up to it, it would undoubtedly damage our inward investment prospects.
Mr. Ron Davies:
Will the Secretary of State join me in commending the Welsh Development Agency, jointly with the Cardiff business school, on producing for Wales the United Kingdom's first regional technology plan? Given the importance of that project, does he think it appropriate that he should have deceived the WDA into thinking that he would launch the plan in Cardiff on Wednesday this week? Will he confirm that, contrary to the press releases that have been put out, he has no intention of being there and has chosen instead to be at a Conservative party function in London? Does not that demonstrate precisely what is wrong with the Government--people's needs are playing second fiddle to the Tory party's needs?
Mr. Hague:
I shall be attending a meeting of the Cabinet, and the hon. Gentleman would be angry with me if I did not. I shall deliver my speech at the launch of the regional technology plan by video tape. I hope that the hon. Gentleman will enjoy listening to every word of my speech and that his questions will be better informed in future.
9. Mr. Butler:
To ask the Secretary of State for Wales what action has been taken to allow more young people to benefit from modern apprenticeships in Wales.[8837]
Mr. Hague:
I have made additional funds available for modern apprenticeships and accelerated modern apprenticeships so that, by the end of 1996-97, more than 8,500 young people in Wales will have been able to start such training since the initiative began. That will result in a substantial injection of new, highly skilled and qualified workers into manufacturing industry in Wales.
Mr. Butler:
I congratulate my right hon. Friend on increasing spending year on year by 14 per cent. Does not that show the Government's commitment to producing a skilled work force from our young folk? Does he feel that Welsh employers have managed to measure up satisfactorily to the challenge presented to employers and to young people by the modern apprenticeship scheme?
Mr. Hague:
I thank my hon. Friend. He is right about the priorities that I have given to the training of young
Mr. Hain:
Does not the Secretary of State realise that that is all nonsense? The Government's figures show that the number of recognised trade apprenticeships has fallen from 19,000 four years ago to less than 10,000 now? There has been a collapse in job opportunities for young people. Crime is rising, there is a lack of hope and young people throughout the valleys in south Wales feel tremendous despair because they cannot get trade apprenticeships, which the Government have cut year after year.
Mr. Hague:
As I have explained, the Government's policies are directed towards increasing opportunities.I have already listed the ways in which we are doing that. Moreover, I hope that the hon. Gentleman will take comfort from the survey released today by Dun and Bradstreet, which shows that nearly two thirds of Welsh firms--the highest proportion in the whole of Great Britain--expect to increase their employment.
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