Clause 1

Part of Industry Bill – in the House of Commons at 5:15 pm on 6 February 1980.

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Photo of Mr Dafydd Wigley Mr Dafydd Wigley , Caernarvon 5:15, 6 February 1980

Last year the factory's accounts showed that it had reserves of £2¾ million. It is running at a profit in a special development area—although, if Conservative Members have their way, it will be a development area only in August—which vitally needs jobs. It will be closed down and the work will be moved away from the area. The net result will be that not only will the jobs of 322 men be hit but 322 families—1,000 people or more—will be affected in an area where unemployment is running at a gross 10 per cent. and is likely to rise to near 20 per cent. with the developments in the pipeline.

That is an instance of what happens when such factories are closed. I have no doubt that it falls into the category of asset stripping. It is an operation that is directly contrary to the public interest, and I believe that it should be the responsibility of bodies such as the Welsh Development Agency and the NEB to step in. Not only should they try to encourage the development of new factories and employment but they should prevent the closure of factories in sensitive areas such as this area at the whim of financiers who are trying to make a quick buck.

That is the background to my amendment. Most hon. Members will know of instances in their constituencies where there have been takeovers, closures, asset stripping and so on. Ordinary people doing efficient, productive and profitable jobs are those who suffer. They are thrown like disposable side-lines on to the scrap heap in order that a restructuring of a financial empire can take place. It cannot be permitted to go on. If the Government do not intervene in such cases, they will drive people to more extreme politics because of the effect on their lives, families and communities. Whole communities are written off by this sort of development.

I have tabled the amendment because I believe that there should be powers to ensure that, when decisions are taken away from a manufacturing plant, there can be an acceptable intervention in the public interest by the WDA—in the case of Wales and of this amendment—the NEB or the SDA. The amendment stands on all fours with amendment No. 4, which has the same purpose—to ensure that when a plant is closed there can be intervention to save jobs. For that reason, not only do I support amendment No. 5 but I also believe that it will be important to support amendment No. 4 when it is called.