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Mr. Evans: Why does the definition of "business" also include public bodies? Does not that mean that even the Welsh Office could apply for grants for, for example, business efficiency? Why is the definition so broad as to include public bodies?
Mr. Hain: The hon. Gentleman should read the Bill carefully.
Mr. Jenkin: Answer the question.
Mr. Hain: If the hon. Gentleman will allow me to do so, I shall answer the question.
The definition in schedule 10 is clear. It rightly gives the new WDA extremely wide powers. Unlike the hon. Member for Ribble Valley (Mr. Evans), we do not want to shackle it.
My hon. Friend the Member for Merthyr Tydfil and Rhymney asked about service. I agree that the heart of any successful economic strategy for revitalising the Welsh economy must focus on manufacturing and industry. That has been terribly neglected in the past couple of decades--a point on which we have often agreed, and I continue to do so. I think that my hon. Friend claims that the birth of manufacturing took place in Dowlais, and he may have a point there.
It is important that service industries are included. For example, a call centre might well be classed as a service business rather than a manufacturing industry, self-evidently. I agree that manufacturing must be given priority, both in terms of inward investment and indigenous investment, which has particularly been neglected in the past 18 years.
Mr. Rowlands:
In the past, when motor vehicle repair businesses or garages applied for some support from the WDA, it said that that was not a service sector which it should support. In the changes that have been made, would it now be included in the responsibilities of the WDA?
Mr. Hain:
It is quite possible that it would be. The broad remit for the powerhouse would reflect that. It is an attempt not to shackle it, but to empower it, so that it can conduct the necessary economic support activity.
The right hon. Member for Caernarfon (Mr. Wigley) raised some pertinent points, for which I thank him. I emphasise that the balance must be in favour of economic, industrial and business activity. We have set specific targets to shift investment westward. It is difficult, but we are determined to continue with that.
As to the wish to make it a function of the agency to promote social equity in Wales, I remind the Committee that, for the first time, the Bill empowers the agency to
address social development. Social equity is better achieved by a cohesive partnership between public and private bodies involved in service provision. That means not just the agency but the assembly, local authorities, the voluntary sector and many other bodies. I am sure that the social development powers of the Development Board for Rural Wales, which the Bill will transfer to the agency, will help it to contribute to the effort. Amendments Nos. 374 and 493 would prevent that transfer.
Mr. Letwin:
If the Minister is admitting that social equity could be included within social development, can he name any activity that would devolve to the Welsh assembly which might not be considered as falling within the remit of the WDA?
Mr. Hain:
That is probably true. We intend to create a powerful agency.
The hon. Member for Ribble Valley made an important and legitimate point--for a change--about whether the assembly would be meddling in the WDA's activities. The answer is no. The assembly will set clear targets for the new powerhouse. It will monitor it and hold it accountable for delivering the strategy which it determines as an assembly. But decisions on day-to-day matters, such as inward investment and the level of grants in attracting inward investment, would be made by the powerhouse, not by some Committee of the assembly.
I am aware of the interest of the right hon. Member for Caernarfon in the comparative arrangements for export promotion and development in Scotland and Wales. He made some important points. I am pleased to reassure him that the existing WDA legislation provides the necessary powers for it to undertake export promotion activities, so his amendment is not necessary.
At the moment, the Welsh Office is the main provider of export and advice services throughout Wales, while the services provided by the WDA are often sector specific. Other bodies, such as the chambers of commerce, training and enterprise councils and export associations, have been working with the Welsh Office to review and improve services to help small and medium enterprises in Wales to export more. We will bear the right hon. Gentleman's points in mind.
I also listened with care to the right hon. Gentleman's points about the WDA's vital international role, and his Scottish point, which we note with interest. My right hon. Friend the Secretary of State has made it clear that there will be no Whitehall veto over his powers in respect of financial arrangements and so on, and therefore over the assembly's powers with regard to inward investment.
My hon. Friend the Member for Merthyr Tydfil and Rhymney asked whether there would be a Welsh energy policy. The power to give consents for power station development will still reside with the Department of Trade and Industry, but the WDA will obviously have an interest, as it has at the moment in promoting the power station development at Baglan.
Mr. Denzil Davies:
Will my hon. Friend give way?
Mr. Hain:
I am sorry, but I have only a couple of minutes left.
I can tell my hon. Friend the Member for Cardiff, West (Mr. Morgan) that I deny emphatically that there is any attempt to run down the international activity of the WDA. I owe my hon. Friend a letter on that point, and I shall write to him addressing the points that he raised.
My right hon. Friend the Secretary of State has asked for the resignations of all 27 members of the three quangos which are to be merged to form the economic powerhouse for Wales--the WDA, the DBRW and the Land Authority for Wales. They will stand down this autumn, when the new body is created and a new body is appointed. We shall shortly advertise those appointments, and, in addition to new candidates, I have no doubt that many of the existing members who have given dedicated service to Wales will wish to put their names forward.
We are determined that all other board members of the new powerhouse will be appointed in the same fair and open way as the chair of S4C. The new board will not be open to accusations of cronyism; nor will any other appointments made in the new Wales. People are looking to Wales to give a lead in establishing new, more open and accountable ways of managing public bodies and the Government are giving the lead. We are making a clean break from the old, scandal-ridden quango state, and I urge my right hon. and hon. Friends not to press the amendments.
Mr. Denzil Davies:
My hon. Friend the Minister made it clear that the Government have no intention of shackling the WDA, and that the purpose of the changes was not to do so. There will thus be a considerable extension of the WDA's powers.
I realise that I will not get an answer now, but may I ask my hon. Friend rhetorically whether the money will still be shackled? If the powers are to be unshackled, will the moneys be similar in quantum to the current powers?
Mr. Davies:
I am sorry, but I shall not give way to my hon. Friend. I have one minute, and I intend to use it. I am sure that he wants me to withdraw the amendment when the time comes.
Let us have extra powers for social development, but let us also have the extra money that goes with it.
Mr. Davies:
My hon. Friend is nodding, so I presume that the Secretary of State will go to the Treasury and say that we want more powers.
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr. Cynog Dafis (Ceredigion):
I beg to move amendment No. 517, in page 56, line 11, leave out from 'Wales' to first 'and' and insert
The Temporary Chairman (Mr. Barry Jones):
With this, it will be convenient to discuss the following amendments: No. 518, in page 56, line 13, at end insert--
No. 522, in page 56, line 26, at end insert--
Government new clause 38--Sustainable development.
New clause 18--Principle of sustainable development--
New clause 37--WDA board member to have responsibility for sustainable development--
6 pm
'leave out "economic" and insert "sustainable economic, environmental".'.
'(c) after paragraph (d) insert--
"(e) to promote the environmental sustainability of economic activity in Wales; and".'.
'(3A) After subsection (4) there shall be inserted--
"(4A) In allocating its resources and setting its priorities, the Agency shall have regard to the need for sustainable economic development throughout the whole of Wales.".'.
'(1) The Assembly shall make appropriate arrangements with a view to securing that its functions are exercised with due regard to the principle that there should be economic and social development which is environmentally sustainable.
(2) The arrangements referred to in subsection (1) shall include an annual review of the implications for Wales of any relevant quantitative targets for the United Kingdom set by Parliament or by Ministers of the Crown.
(3) After each financial year of the Assembly, the Assembly shall publish a report containing--
(a) a statement of the arrangements made in pursuance of subsection (2) which had effect during the financial year, and
(b) an assessment of how effective those arrangements were in promoting sustainable development.'.
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