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Job Losses

Angela Watkinson (Upminster): How many employers in Wales are being forced to move their operations to countries such as—

Mr. Speaker: Order. Perhaps the hon. Lady should make reference to Question 3.

3. Angela Watkinson: If he will make a statement on recent job losses in Wales. [135530]

The Secretary of State for Wales (Mr. Peter Hain): I have had a rehearsal of the question from the hon. Lady. No, because employment in Wales has risen by 68,000 in the past year.

Angela Watkinson : How many employers in Wales are being forced to move their operations to countries such as Malaysia, India and China to avoid the burden of regulation and taxation on businesses, and to avoid increases in national insurance contributions, and how many job losses have occurred in Wales since this Government came to power in 1997?

Mr. Hain: The unemployment rate has nearly halved right across Wales, and employment is now at a very high level; indeed, as I said, there was a rise of 68,000 last year. We should look at the facts instead of the Tory

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allegations. In terms of employment, the claimant count is down to 3.4 per cent.—the lowest figure since the 1970s—and economic activity is up by 3 per cent. since the last general election. Wales has had more than 14 per cent. of the total number of jobs coming to the United Kingdom in the past year, compared with 12.6 per cent. last year. Wales captured 18.6 per cent. of safeguarded jobs, making it the top region in the United Kingdom. Yes, there is a churning, with jobs at the lower end of the manufacturing scale going to countries with cheaper labour costs, but we are attracting new investment and new jobs all the time.

Mrs. Betty Williams (Conwy): Does my right hon. Friend agree that it is high time that Opposition Members of all political persuasions talked Wales up, rather than down? Is he aware that American business people told the Welsh Affairs Committee last week that, of all the regional development agencies, they enjoy the best co-operation with the Welsh Development Agency and the National Assembly for Wales? [Interruption.]

Mr. Speaker: Order. Once again, I appeal for some quietness in the Chamber. Private conversations should take place elsewhere.

Mr. Hain: Yes, Mr. Speaker, because my hon. Friend and other colleagues on the Labour Benches speak for Wales, but the Tories have nobody in Wales any more. That is why they are talking Wales down. In fact, Wales is doing better than for many years, and a lot better than it ever did under the Tories.

Historic Towns

4. Hywel Williams (Caernarfon): What recent discussions he has held with (a) Cabinet colleagues and (b) the National Assembly for Wales regarding the condition of the built environment in historic towns in Wales. [135531]

The Parliamentary Under-Secretary of State for Wales (Mr. Don Touhig): My right hon. Friend the Secretary of State and I have regular discussions with Cabinet colleagues and Assembly Secretaries on matters affecting Wales.

Hywel Williams : There is a huge and urgent need to repair buildings in my Caernarfon constituency and in Wales in general. In fact, a Welsh housing condition survey in 1998 put the bill at £1.1 billion—a bill that will be subject to VAT. Will the Minister press his colleagues for repairs to be subject to the same VAT rate as that to be levied on the 1 million-odd houses that his Government intend to build in London and the south-east?

Mr. Touhig: I am grateful to the hon. Gentleman for taking the time to discuss this matter with me the other evening; indeed, I know from my own constituency casework the importance of the point that he makes. Arrangements with our European partners have allowed us to maintain a zero rate of VAT on a number of items, including children's clothing and footwear. On the wider issue that he raises, a review of the European

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Union reduced rate provisions is currently under way, and the Government are committed to negotiating the best overall deal for the United Kingdom.

Mr. Chris Bryant (Rhondda): Will the Minister undertake to talk to his colleagues about, and do everything that he can to protect, buildings such as the Powerhouse, in Tonypandy? It is a very fine building which we need to protect, and it was the scene of the Tonypandy riots, with which all hon. Members will doubtless be familiar. Will he also look at the report by Aberystwyth university's centre for explosion studies, which considered how Guy Fawkes would have got on today, to see whether there are buildings in Wales that we should blow up?

Mr. Touhig: I shall not be tempted down the road of demolishing buildings at the moment, but my hon. Friend makes an important point: Wales has a wonderful historic industrial heritage, and too often we do not do enough to protect and preserve it. Great houses and castles are being preserved across Britain. The industrial heritage of south Wales is vital in terms of knowing who we are, where we came from and where our future lies. My hon. Friend is right to make this point, and I support him.

National Assembly

5. Mr. George Foulkes (Carrick, Cumnock and Doon Valley): What recent discussions he has had with the First Secretary on Lord Richard's report on the powers of the National Assembly for Wales. [135532]

The Secretary of State for Wales (Mr. Peter Hain): On numerous occasions.

Mr. Foulkes : Since it is the House that will have to legislate on any changes, could the Secretary of State please tell us the exact status of the commission and to whom and when it will report? Given that it affects all parts of the United Kingdom, not just Wales, will the Leader of the House tell us when we can debate the matter on the Floor of the House?

Mr. Hain: The National Assembly set up the commission and it is due to report in early spring next year. Its report will go to the National Assembly and the Welsh Assembly Government will consider it. No doubt representations will be made to us. If any changes are sought as a result of the Richard commission, my right hon. Friend is right that it will be for the House—obviously in partnership with the Welsh Assembly Government—to decide.

Michael Fabricant (Lichfield): Should it not also be in partnership with the people of Wales? Will the Secretary of State for Wales now give an undertaking that, if the Lord Richard report states that the National Assembly should have increased powers, the people of Wales will be consulted through a national referendum?

Mr. Hain: If the Richard commission were to propose tax-varying powers—as apply in Scotland, and the Scots held a referendum on that precise issue—Wales would have to hold a referendum. However, I can tell the hon.

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Gentleman that the Labour Government will not support any increases in taxes of that sort for Wales—[Interruption.]

Mr. Speaker: Order. Once again, there is far too much noise in the Chamber.

Public Transport

6. Ann Clwyd (Cynon Valley): What recent discussions he has had with the First Secretary of the National Assembly for Wales about the provision of public transport by bus. [135533]

The Parliamentary Under-Secretary of State for Wales (Mr. Don Touhig): My right hon. Friend and I have regular discussions with Assembly Secretaries about issues affecting Wales. The Assembly is allocating £8.5 million to local authorities this year to help boost the number and range of subsidised bus services, and to support community transport projects. That is in addition to their hugely successful free bus-pass scheme, which has opened up local travel opportunities for the over-60s and disabled people.

Ann Clwyd : As my hon. Friend knows, there have been innumerable complaints about the unreliable and shoddy service provided by Shamrock to my constituents in the Cynon Valley—and it also applies to neighbouring constituencies. Given that the company—[Interruption.]

Mr. Speaker: Order. The House is being unfair to the hon. Lady.

Ann Clwyd: Given that my constituents continually complain to me—week after week, month after month—about Shamrock's unreliability, and that people in the local authority have also complained about the company, what can be done to revoke its licence in view of its inability to provide the service that the people of south Wales deserve?

Mr. Touhig: I certainly recognise the importance of reliable transport and, more particularly, a reliable bus service. If an operator is not complying with its conditions of licence, that should be reported to the traffic commissioner for investigation. Where complaints relate to a service subsidised by a local authority, the council should also be informed. I can tell my hon. Friend that our colleagues in the Assembly are funding an officer of the National Federation of Bus Users, who will be happy to pursue complaints about particular local bus services. I would commend that course of action to my hon. Friend.

Mr. Roger Williams (Brecon and Radnorshire): Without a rural bus service, the closure of small rural schools will lead to a huge increase in private car usage on the school run. In that light, will the Minister support my and my hon. Friends' campaign to keep small rural

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schools in Powys open—not only on account of their good educational record, but to ensure that journeys are shorter and that private car usage is not increased?

Mr. Touhig: School closures will be a matter for the local authority, but I am aware of an early-day motion tabled by Liberal Democrat Members which deals with that matter. Clearly, public transport is important to rural schools. I shall certainly take note of the hon. Gentleman's point and draw it to the attention of my right hon. Friends.


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