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Mr. Letwin: On a point of order, Sir Alan. I may have misunderstood, but I thought that the timetabling
prevented discussion at this stage of amendments that relate to lines beyond line 11. The right hon. Gentleman is discussing amendment No. 540, which relates to line 26.
The Chairman: Order. The hon. Member for West Dorset (Mr. Letwin) may not realise it, but he is questioning my selection of amendments. The fact is that the amendments are perfectly in order if I have selected them in this way.
Mr. Wigley: I am grateful, Sir Alan. I think that the Minister wishes to contribute.
The Parliamentary Under-Secretary of State for Wales (Mr. Peter Hain): I am grateful to the right hon. Gentleman for giving way. I take this opportunity to deny specifically the Financial Times report. There is no truth whatsoever in the claim that the WDA intends to close its overseas operations, which have played an important role in encouraging investment to Wales under both this and the previous Administration.
Mr. Wigley: I am very glad to hear that. On Monday morning, I met Brian Willott, the chief executive of the Welsh Development Agency, to discuss the implications of the cut--I had heard rumours of them before the story appeared in the Financial Times. Mr. Willott was concerned about having to cut costs by £3 million. I assume that the Minister does not refute the idea that there will be a £3 million cut--it is simply a matter of where it will hit.
Mr. Hain: I do not refute the fact that the Government have asked the three quangos that will join to form the new powerhouse under the WDA to make administrative savings. I am sure that the right hon. Gentleman will agree that we must have an efficient operation. There must be scope for savings among three bodies that performed similar functions, many of which were duplicated.
Mr. Wigley: I am sure that there will be scope for savings--the question is whether it will come from the overheads at the headquarters of those bodies in Cardiff and elsewhere or whether it will come from the administrative budget and undermine the WDA's activities at the sharp end. That matter concerns the agency and hon. Members who represent Welsh constituencies. We want the agency to build on its established track record.
I have read and heard of the rumblings in the Department of Trade and Industry, which--even before the advent of the new Welsh Development Agency--is trying to tie up the new super-body and establish a hold over it. That would be a severe disservice to Wales. I ask Welsh Office Ministers to provide some assurances in that regard when they respond to the discussion.
I have tabled parliamentary questions about exports. Encouraging exports is the flip side of attracting inward investment. The creation of the interface and the networks and the generation of faith in the economy that provides the exports can be significant factors in identifying and helping to develop overseas investment in Wales. Manufacturing opportunities in Wales or in other parts of the United Kingdom may be identified and products may be exported to the country of origin or to other parts of the world.
Mr. Evans:
The WDA is already doing that to a great extent through "Source Wales". Those activities would be damaged if the WDA pulled back any of its people from abroad, particularly from countries such as Japan. The WDA is doing a good job, but there is a fear that indigenous Welsh companies will suffer.
Mr. Wigley:
We must develop the "Source Wales" approach. There is immense untapped potential. Much good work has been done, but there is scope for more. Components imported from Japan, Taiwan and the far east that are used by companies such as LG and ACER could be made in Wales--or at least nearer the source. That would benefit the economy of the United Kingdom in general and of Wales in particular. That area must be developed. Proactive work must be undertaken in countries such as Japan, South Korea and Taiwan to achieve our objectives.
I hope that the WDA office in Tokyo is receiving the full, proactive support of our embassies and other United Kingdom organisations. We must not see the sort of infighting that sometimes occurs--the petty jealousies, the empire building and the desire to take credit for any achievements. It is true that the Welsh Development Agency has done some tremendous work, but it would be hamstrung if it were not working as part of a team. I seek the Minister's assurance that the team approach will continue and that the WDA will receive support from all United Kingdom representative bodies, whether they are embassies, the Invest in Britain Bureau or the DTI.
I received an interesting answer from the Scottish Office when I asked a question about the statutory provisions that enable it and its agencies to help firms located in Scotland to develop export markets overseas. The Minister for Education and Industry, Scottish Office replied:
From comparing those two answers, I get the strong impression that the role of the Scottish Office has been considerably more advanced than the role of the Welsh Office in developing that trade aspect, and that that is beneficial to Scotland's attempt to attract inward investment. The best of luck to Scotland--I do not begrudge it. The Scottish Office is going out and doing the job. On three occasions during the past two years, I happened to be in places overseas where Scottish Office Ministers had just been, trying to draw in investment. That has helped to create the networks that Scotland needs to attract inward investment.
We need that same proactive approach. Bodies such as the Department of Trade and Industry and Invest in Britain must understand that our agenda is to achieve as advanced a model as the one from which Scotland benefits, not to be reined in because of the agenda that the DTI seems to have.
If the Welsh Development Agency and its successor body are to do the job that we need, they will need resources. I hope that the Under-Secretary will respond to the points made by the hon. Member for Merthyr Tydfil and Rhymney and the right hon. Member for Llanelli about the need for resources to deliver the objectives.
In recent months, we have seen the danger of large-scale projects such as LG, which of course is valuable and worth having in its own right, swallowing up the available resources; resources are not available for other parts of Wales where, by now, there is an even greater need for economic stimulation and job creation. If the new body is to have a chance of attacking the agenda that awaits it, it needs those resources. I hope that some assurance will be given that, although we read in the Financial Times about cuts in resources, adequate resources will be made available.
"My Department, through Scottish Trade International, a joint organisation between The Scottish Office and Scottish Enterprise, assists the delivery to Scottish-based companies of support from the Government's Overseas Trade Service, funded by my right hon. Friend the President of the Board of Trade. In addition, Scottish companies benefit from export advice and assistance from Scottish Enterprise on the basis of section 1(a) of the Enterprise and New Towns (Scotland) Act 1990 and from export advice now funded by my own Department under the Industrial Development Act 1982."--[Official Report, 10 February 1998; Vol. 305, c. 147.]
25 Feb 1998 : Column 397
In other words, the Scottish Office has a positive, proactive role which will transfer to the Scottish Parliament to develop overseas trade. That is clearly beneficial.
I asked a similar question of the Welsh Office and the Under-Secretary of State for Wales, the hon. Member for Neath, replied on 10 February. He stated:
"Section 1 of the Welsh Development Agency Act 1975 provides the necessary statutory powers for the activities of the Agency. The Agency has a number of initiatives and schemes which assist companies in Wales to develop overseas business opportunities."--[Official Report, 10 February 1998; Vol. 306, c. 156.]
The Minister said that he would arrange for me to have a letter from the chief executive of the agency and for a copy to be put in the Library. Such a letter has not come, nor has it reached the Library, but no doubt it will arrive some time.
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