House of Commons
Wednesday 12 February 2003
The House met at half-past Eleven o'clock
PRAYERS
[Mr. Speaker in the Chair]
PRIVATE BUSINESS
Transas Group Bill (By Order)
Order for Second Reading read.
To be read a Second time on Wednesday 26 February.
Oral Answers to Questions
WALES
The Secretary of State was asked—
Economic Development (South-west Wales)
1. Mr. Martin Caton (Gower): What recent discussions he has had with the First Minister in the National Assembly about economic development potential in south-west Wales. [96343]
The Secretary of State for Wales (Peter Hain): I have regular discussions with the First Minister about economic development, which is particularly helped by objective 1 funding, under which 187 projects in south-west Wales have been approved so far, attracting £66 million of grants.
Mr. Caton : I thank my right hon. Friend for that reply. Will he join me in welcoming the formation of the Gorseinon community development trust, a local vehicle for creating jobs in a community that has recently been hard hit by works closures? Will he use his best endeavours to effect the trust's proposals for an enterprise village on the old Corus Bryngwyn works in Gorseinon?
Peter Hain: I welcome both proposals. There is a genuine prospect of creating world-class facilities throughout south-west Wales. They include the excellent and exciting tourist facility of Bluestone in Pembrokeshire. I hope that Pembrokeshire coast national park and Pembrokeshire county council will speed through the application as quickly as possible.
Lembit Öpik (Montgomeryshire): The Secretary of State knows that the KTH plant in Llanidloes is threatened with closure. If it closed and 250 jobs went, the economic impact on a town of only a couple of thousand residents would be as serious as the difficulties
in south-west Wales. Will the right hon. Gentleman therefore be willing to accept a representation from the town taskforce, which is trying to ensure that we do not lose the jobs or that they are replaced if we encounter problems with KTH?
Peter Hain: I will certainly be happy to meet a delegation, and I am sure that the hon. Gentleman will be in attendance. I am worried about the development because I appreciate that KTH is a vital local employer in Llanidloes. The First Minister has asked Team Wales to investigate the possibility of saving jobs and maintaining that vital facility.
Denzil Davies (Llanelli): My right hon. Friend will be well aware of the proposals to develop further the motor racing circuit at Pembrey and the adjoining airport. When he meets the First Minister, will he press him to ensure that the necessary infrastructure funds are available for two projects that will give the economy of south-west Wales an enormous boost?
Peter Hain: My right hon. Friend is right. I have had the privilege of racing—not very quickly—on Pembrey motor racing circuit in a car sponsored by the Welsh Development Agency. The projects for the circuit and the airfield constitute an exciting prospect and they need support. I shall do everything possible to help. I have already discussed the matter with the Minister for Economic Development, who is also keen on the projects.
Mr. Nigel Evans (Ribble Valley): The manufacturing sector is hardest hit in south-west Wales. To name only one company, Dewhirst closed three factories with the loss of 900 jobs and moved production to Morocco. Why does the Secretary of State believe that manufacturing confidence is so low and declining in Wales? Is it because of the climate change levy, the landfill tax increases, the fuel tax rises, the working time directive, the business rate rises, the huge increase in red tape, massive extra costs to business to operate the benefits system through the payroll or the extra jobs tax that will hit industry in April and siphon millions of pounds into Government coffers that should be invested in business?
Peter Hain: I find the hon. Gentleman's concern for manufacturing in Wales very touching given that the Tories massacred the sector in the 1980s and early 1990s. As I understand it, most Dewhirst workers have been able to get new jobs or are in the process of finding them. Yes, manufacturers have had a tough time, principally because of the high pound, but we are doing all that we can to support them. There is much good news about new investment by manufacturers in Wales and employment in Wales. Unemployment fell to 5.2 per cent. in December. That is great news because it brings Wales to the same level as the rest of the United Kingdom. Instead of lagging behind, we have lower unemployment than the United States of America, Canada, Belgium, Finland, France, Germany, Italy, Portugal and Spain.
Mr. Evans: The Secretary of State took his eye off the ball at the Convention on the Future of Europe and was
clearly outflanked. I do not want him to do that for manufacturing jobs in south-west Wales. He knows that the Confederation of British Industry in Wales has already said that there are problems with the dualling of roads, congestion on the M4 and the trains between Cardiff and west Wales. Time and again, I have mentioned the potential to boost investment in Swansea and west Wales that Swansea airport offers. Will the Secretary of State hold talks with his colleagues and business leaders in Wales to ascertain what can be done to remove the barriers to economic growth in south-west Wales to attract more jobs there?
Peter Hain: Not only will I meet business leaders in Wales; I met the director of CBI Wales on Monday, and the director general of the Institute of Directors yesterday. They fully support our strategy to develop a world-class economy in Wales. Rather than continually kicking Welsh businesses in the teeth, as the hon. Gentleman does, and continually running Wales down, they remember that the Tories massacred about 1 million manufacturing jobs when they were in power. We are supporting manufacturing. The Welsh economy is on the up. The hon. Gentleman should be praising it, not kicking it.
Mrs. Jackie Lawrence (Preseli Pembrokeshire): My right hon. Friend will know of two major developments of national importance in west Wales that affect my constituency. He just mentioned one, the Bluestone project; the other is the Petroplus plan for a liquefied natural gas importation terminal, for which Pembrokeshire county council granted consent yesterday. Will my right hon. Friend also support that project, and do everything possible to ensure that the high-pressure gas pipeline is extended down to Pembrokeshire so that the project is not put at risk?
Peter Hain: I have met Petroplus representatives, and my hon. Friend the Under-Secretary of State did so yesterday. The project in Milford Haven is very exciting: it will put Pembrokeshire at the forefront of energy supply. We will do all that we can to support it, and given my hon. Friend's additional support the future looks very bright.
Mr. Roy Beggs (East Antrim): Does the Secretary of State agree that Government policy—and indeed, the efforts of the Welsh Development Agency—contribute to the success of economic development in Wales? Might it not be of benefit for regional development agencies to come together to share experience and expertise, and avoid unnecessary competition?
Peter Hain: I certainly agree with the hon. Gentleman.
Air Transport
2. Mr. John Smith (Vale of Glamorgan): What assessment he has made of the future of air transport in Wales. [96344]
The Secretary of State for Wales (Peter Hain): Air transport is important to the economy of Wales and has
a good future. The Department for Transport and the National Assembly are currently consulting on an air transport strategy for Wales.
Mr. Smith : My right hon. Friend will know of the excellent document produced by the Welsh Affairs Committee under the guidance and leadership of my hon. Friend the Member for Clwyd, South (Mr. Jones). It demonstrates that air transport depends on the continued success of Cardiff international airport. It also points out that if the success created by the involvement of bmibaby is to be built on, road access must be improved, and the existing road to the airport must be upgraded immediately. Will my right hon. Friend assure me that he will meet his counterpart in the National Assembly, and get the road upgraded as a matter of urgency?
Peter Hain: I agree that the report is excellent. The Welsh Affairs Committee does produce excellent reports—provided that it does not criticise the Secretary of State, of course!
Cardiff airport is now the fastest-growing regional airport in Britain. It was used by 1.5 million passengers last year, and the number is forecast to rise to 3.5 million over the coming years. Yes, the road link is crucial. When I was the Minister responsible for transport in Wales between 1997 and 1999, I tried to do something about it. I will now do all that I can to support my hon. Friend's enthusiasm, and I will receive any representations he wishes to make and any delegations he wishes to bring.
Mr. Elfyn Llwyd (Meirionnydd Nant Conwy): The right hon. Gentleman will know of the threat to 160 jobs at the airfield in Llanbedwr, in my constituency. An American aeronautical company is interested in taking the airfield over lock, stock and barrel. Will the right hon. Gentleman please liaise with the First Minister and other Cabinet colleagues to ensure that the company is given all possible assistance, so that jobs can be saved and the area rejuvenated?
Peter Hain: I should be delighted to do that. I assure the hon. Gentleman that I will do all that I can. If he wishes to make any further representations to me, we can work together in achieving that objective.
Albert Owen (Ynys Môn): My hon. Friend the Member for Vale of Glamorgan (Mr. Smith) referred to the Welsh Affairs Committee's report, "Transport in Wales", which recommends that a north-south link be established as soon as possible. Does my right hon. Friend agree that RAF Valley, which is in my constituency, is well placed to be the principal link, considering its existing infrastructure and technology, thereby linking the mother of Wales with the capital of Wales? Will he press his Cabinet colleagues and his colleagues in Cardiff to ensure that subsidies are discussed, and that the issue is included in the White Paper that my right hon. Friend the Minister with responsibility for transport will produce?
Peter Hain: Yes, I will certainly do all of those things. I had the advantage of visiting my hon. Friend's constituency with him a few months ago. I became very
aware of the excellent facility provided by RAF Valley, which could be a springboard for vital north-south air links. I hope that the Welsh Assembly Government will take this forward, and I shall certainly support it in every way that I can. We need speedy and efficient air links between north and south Wales, and, indeed, between other regions of Wales. Swansea airport, which the hon. Member for Ribble Valley (Mr. Evans) mentioned—I know that he has been a big supporter of it—should be included in that.
Mr. Nigel Evans (Ribble Valley): I am grateful to the Secretary of State for his comments, and I should like to add my support to RAF Valley and its commercial use. However, British Airways has treated the people of Cardiff and Wales rather shabbily through its recent announcement that it is about to withdraw. Frankly, its announcement that the people of Wales can still fly BA as long as they travel from Bristol or Birmingham is a disgrace, and an insult to them. Will the Secretary of State congratulate Air Wales and bmibaby, which has announced that it will increase the number routes that it flies, and apparently is considering several other routes as well? Will he meet Tony Davies of bmibaby and Roy Thomas of Air Wales to establish the potential for those companies' providing the routes that BA has withdrawn from, and to establish whether other possibilities exist to ensure that Cardiff airport—for goodness sake, it is the regional airport of Wales—gets the support that it desperately needs?
Peter Hain: I agree with all of the points that the hon. Gentleman makes, and I should be happy to receive any such delegations. I had the advantage of visiting Cardiff heliport, which is an excellent facility and is probably the best heliport in Europe. I learned of its plan, in discussion with British Airways, to provide a shuttle service to Heathrow and to Gatwick. If we can get that off the ground, so that passengers can check in at Cardiff heliport and go straight through to Heathrow or Gatwick, that will be a marvellous facility. BA's withdrawal from Cardiff was very sad; however, bmibaby is doing a great job in filling the gap.
Mr. Win Griffiths (Bridgend): Given the plan to open a passenger service from Bridgend to Barry and Cardiff through the Vale of Glamorgan, which will pass within spitting distance of Cardiff international airport, will my right hon. Friend meet the Strategic Rail Authority to persuade it to invest in extra track to enable an excellent rail link to the airport?
Peter Hain: I should be happy to do that. As my hon. Friend knows, a start will be made later this year through a new link between Cardiff central station and Rhoose airport, which will serve Cardiff airport. If we can link it with Bridgend, that would be even better.
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