North Wales Economy

Lord Hanson of Flint Excerpts

Tuesday 29th June 2010 Westminster Hall

[Chris Ruane (Vale of Clwyd) (Lab)]

This afternoon, I hope to illustrate the progress that has been made under 13 years of a Labour Government in the economy of north Wales, how fragile that economy is, and how threatened it is by current proposals and possible future proposals from the Con-Dem coalition. I hope to look at the reasons for the success of our local economy and examine the threats from the coalition. I will be seeking specific assurances from the Minister on a number of specific points of the current Con-Dem policy.

The history of north Wales shows that in the last 40 or 50 years we have relied on tourism, heavy industry and agriculture, all three of which have taken a pounding. At Courtaulds in Flint, in the constituency of my right hon. Friend the Member for Delyn (Mr Hanson), there were 3,000 job losses and at Shotton in the constituency of my hon. Friend the Member for Alyn and Deeside (Mark Tami), there were 7,000 job losses in 1981 under the Conservative Government. That Conservative Government decimated—dare I say annihilated?—heavy industry in north Wales. Shotton steelworks had the biggest industrial lay-off in a single day: 7,000 workers were laid off in one day. That was the Tory legacy.

Labour believes in timely and positive Government intervention in key industries. When we look at the success of north-east Wales, we see that the last Labour Government gave launch aid back in 1998 to Airbus— £500 million of launch aid. From the ashes of Shotton steelworks rose the Airbus factory, the most expansive factory in western Europe, which has 7,000 workers and 700 apprentices.

[Mr David Hanson (Delyn) (Lab)]

Does my hon. Friend agree that one of the key issues that we must address is ensuring that future work comes to the Airbus factory and that one of the key elements in that regard was the signing by my right hon. Friend the Member for Coventry North East (Mr Ainsworth), when he was Secretary of State for Defence, of the contract for 22 aeroplanes under the A400M project, which the current Government have not yet confirmed? Will my hon. Friend seek today an assurance from the current Government that they will confirm that order for 22 planes?

[Chris Ruane]

I back my right hon. Friend on that issue. I give credit to the Government—I do not want to be too negative, lest anyone think that I am—for the decision that has been made about the AirTanker. People in north Wales are grateful for that decision. However, the A400M project needs to be looked at very carefully for the good of Britain’s defence and of workers in north Wales.

The Con-Dem Government have said that they do not believe in big Government intervention in industry, as they have shown by withdrawing the loan to Sheffield Forgemasters steelworks. We do not want that situation repeated in Wales.

--- Later in debate ---

[Mr Jones]

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.

[Mr Hanson]

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.

[Mr Jones]

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.