Welsh Affairs

Part of the debate – in the House of Commons at 5:09 pm on 28 February 1991.

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Photo of Mr David Hunt Mr David Hunt , Wirral West 5:09, 28 February 1991

I have seen much correspondence between the hon. Gentleman and the Welsh Development Agency on the rate of inward investment, on projects and on the rate of GDP per head. When I took over as Secretary of State for Wales, I said that we had some serious problems—low GDP per head and low activity rates. I still regard those as challenges, but they are problems that we inherited. I should like the hon. Gentleman to start proclaiming our achievements instead of decrying them and to point out the challenges that lie ahead rather than the problems.

I have already mentioned the Welsh Development Agency, the work of which has been a key factor in the resurgence of Wales. It undertakes a wide range of activities, which is why I was delighted to be able to announce an increase in its budget for next year to £160 million—its highest ever budget, and approximately £10 million higher than expected. It is set to remain above the 1990–91 level in each of the subsequent two years. Next year's budget will be more than 60 per cent. higher in real terms than five years ago.

Property development will continue to be a major element of the WDA's activities in 1991–92, and I am pleased to announce that I have approved the agency's 1991–92 property development programme, which sets out its strategy for spending £71·6 million in the coming year.

The agency tells me that it will prepare a detailed, comprehensive document for publication next month. the key elements that I have agreed with it include particular emphasis on land assembly and custom-built developments, which together are expected to account for more than £30 million of the total, as well as continuing a significant programme of advanced factory construction. The property programme is vital to Wales's ability to secure major inward investment projects. I am looking forward to the Imperial college science park at Newport, which I have already mentioned.

Increasing emphasis will be placed on such partnership developments following the successful first year of the Welsh property venture initiative, which is on course to exceed its targets. The agency has earmarked £10 million for that key element of its programme. High priority will be given to providing premises in rural areas, in support of the rural initiative that I announced last week. The programme ensures that the agency will be on course to meet its targets under the valleys programme of construction, which is to construct 2·5 million sq ft of premises in the first five years of the extended programme.

It provides for the A55 road of opportunity initiative, under which the agency has pledged to spend £15 million in north Wales next year.