North Wales Economy

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Tuesday 29th June 2010

(13 years, 10 months ago)

Westminster Hall
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David Jones Portrait The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
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I congratulate the hon. Member for Vale of Clwyd (Chris Ruane) on securing the debate, which is, of course, dear to my heart because I am the Member of Parliament for the constituency immediately adjacent to his. There can be no doubt that the recession has hit north Wales as hard as many other parts of the country, if not harder. In fact, over recent months, there have been significant job losses right across the region—134 jobs lost at David McLean, more than 50 jobs lost at JCB, 130 jobs lost at PT Construction on Deeside and, most significantly, major job losses at Air Products in Wrexham, Anglesey Aluminium and the Indesit factory in the hon. Gentleman’s constituency. The Indesit factory was, in fact, a major employer for my constituency, where more than 300 jobs were lost.

Although the hon. Gentleman paints a rosy picture of employment and industry in north Wales under the Labour Government, it is not quite so rosy. Indeed, without wanting to put too fine a point on it, over the past 10 years, the claimant count in his constituency has increased by 40%, long-term unemployment has increased by 16%, the youth claimant count has increased by 63% and long-term youth unemployment has increased by 71%. Although one does not want simply to trade statistics, as I say, the rosy picture that he painted in his opening remarks is, unfortunately, not borne out by recent developments in north Wales.

Chris Ruane Portrait Chris Ruane
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Will the hon. Gentleman give way?

David Jones Portrait Mr Jones
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Given that the hon. Gentleman has already taken 19 minutes for his opening comments, I feel that I have to make some progress. He mentioned a number of important points that will be of concern to all hon. Members who represent constituencies in north Wales and, because he raised those specific points, I would like to comment on as many of them as I can in the time remaining.

The hon. Gentleman mentioned the A400M project, which is of significant importance to north Wales. Indeed, the Airbus factory should be regarded as the jewel in the crown of industry in not only north Wales, but the whole of the United Kingdom, because it provides high-quality, high-tech jobs that must be the way for the future. The A400M is, of course, actually developed in Filton, as the hon. Gentleman will know. However, the wing technology that is being developed at Filton is shared at Broughton. The Wales Office is certainly very supportive of the A400M project, but having said that, as the hon. Gentleman knows, a strategic defence review is under way and, of course, all announcements must wait on its outcome. I gently inform him that the Labour Government did not progress the A400M project or commit themselves to it.

David Hanson Portrait Mr Hanson
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My right hon. Friend the Member for Coventry North East (Mr Ainsworth) signed a contract for 22 planes before the election. That is part of the ongoing review.

David Jones Portrait Mr Jones
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Yes, but as the right hon. Gentleman knows, a number of projects were signed up to—including the Sheffield Forgemasters project—very late in the day during the election period for a reason that is patently obvious to even the most charitable observer.

The hon. Member for Vale of Clwyd mentioned Glyndwr university and Technium OpTIC. I endorse his commendation for OpTIC. In fact, the first official visit that my right hon. Friend the Secretary of State and I paid to north Wales after our respective appointments was to Technium OpTIC. I particularly commend Professor Mike Scott, the vice-chancellor of Glyndwr, for forging ahead with OpTIC and, as the hon. Gentleman has pointed out, ensuring that the university forges strong links with the private sector. Such an approach is certainly the way forward.

We also heard about Landrillo college. Again, I can do nothing but commend Landrillo, which is, in fact, headquartered in my constituency. I pay tribute to Huw Evans, the principal of Landrillo college, for forging links with the private sector.

The hon. Gentleman mentioned agriculture. I think it is fair to say that over the years, the Conservative party has shown nothing but support for the agricultural sector and it will continue to do so.

The hon. Gentleman also mentioned seaside towns—an issue of personal interest to me. Colwyn Bay is an important town that has declined over recent years. It is, in fact, currently in receipt of strategic regional assistance moneys from Europe via the Welsh Assembly Government. I echo what he said about houses in multiple occupation, which have been a scourge of seaside towns—Rhyl in his constituency and Colwyn Bay in mine alone. However, I must gently criticise the Welsh Assembly Government’s policy of attracting people into north Wales who have no connection with the area because doing so has ensured that incomers can leapfrog indigenous north Waleseans. That has caused a great deal of concern to councillors in my constituency and, I am sure, in the constituency of the hon. Member for Dwyfor Meirionnydd (Mr Llwyd).

The hon. Member for Vale of Clwyd mentioned the Heritage Lottery Fund. I remind him that the lottery was a Conservative innovation. He has already mentioned John Major. If I remember rightly, the lottery was John Major’s pet project. I am glad to say that the coalition Government intend to review the operation of the lottery to ensure that it reverts to its original aims of supporting good causes. We want to ensure that it is not rifled by Government as a support to taxation.

The hon. Gentleman mentioned the Rhyl city strategy and the future jobs fund, which he regards as important. We have to make a decision in this country: whether we create real jobs, with some prospects of creating real wealth, or whether we subsidise jobs that are guaranteed only for six months. Doing the latter does not create real wealth and runs the risk of returning the young people on those programmes to the dole. The focus of the Government should be on creating real wealth. That is the nub of the difference between the Labour Government and the coalition Government. The previous Government were happy to fritter away this country’s resources through borrowing to mortgage our children’s and our grandchildren’s future, without tackling the root causes of the problem that the economy faces, which is essentially the enormous deficit that this country is running. The enormous structural deficit and debt run the risk of strangling each and every one of those young people before they get a job at all.

This Government intend to focus on reducing the deficit, on restoring real jobs to the economy, and on ensuring as far as possible that those who are able to work can do so. That is why I commend the work programme that was announced today by the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), which was criticised by the hon. Gentleman. This Government are not afraid to face the real decisions that we need to take to put the country back on the right track. We may receive criticism from the hon. Gentleman, but we have received the support of the OECD, the G8, the Governor of the Bank of England and any number of chief executives he may care to mention. The future of this country is real, genuine, honest employment.

Albert Owen Portrait Albert Owen
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Will the Minister give way?

David Jones Portrait Mr Jones
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No, I will not take the hon. Gentleman’s intervention, but—

David Jones Portrait Mr Jones
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If the hon. Gentleman would like to listen, he might actually be pleased with what I am about to say. I commend him for his advancement of the energy island concept. He understands that only real jobs will rescue Anglesey, and I commend him for it. I repeat my previous support for Wylfa nuclear power station. I hope that it gets built, and but for the fact that the Labour Government effectively had no energy policy for 10 years, Wylfa would now be well on the way to being built. We have had 13 wasted years of Labour, during which time we ate the seed corn for future generations. It is time to get Britain back to work; it is time to get Britain moving again. I believe that the coalition Government will do just that.