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

The targets have been given to me and I have announced them. They are detailed targets, based on the best available evidence, and I shall supply them to the hon. Gentleman. I have accepted the targets, which are based on the best information that the WDA says it can give me on forthcoming market conditions. If those conditions change, I shall have to reconsider the figures.

Last September, I announced that the agency would in future be carrying out its land reclamation, environmental improvement and urban renewal activities under two strategic programmes—Landscape Wales and Urban Development Wales. I am delighted to be able to announce new increases in the agency's expenditure on the programmes in 1991–92. The budget for Landscape Wales will rise by £4 million to £31 million next year and that for Urban Development Wales will rise by £3 million to £10 million.

The agency has now established Urban Development Wales as an innovative urban programme which aims to regenerate the economies and environment of Welsh towns that show significant growth potential and which will link the development expertise and investment of the private sector, the controlled use of central Government funds and the commitment of local authorities and their communities in a series of joint venture partnerships. A joint venture is already established in Llanelli and I am sure that the House will be delighted to hear that earlier today an action programme in the Cynon valley, estimated to cost about £18 million was launched by the local authority and the WDA. The partners will be looking to harness substantial private sector support for the programme and I wish them every possible success. The Cynon valley is only one of the communities that the agency is identifying as having the potential for fast and successful growth. I look forward to hearing news of others in the near future.

I am also pleased to announce that the WDA will be launching a new information technology initiative targeted specifically at capturing high technology companies for Wales. Initially, this will concentrate on south-east Wales. A key part of the strategy is the concept of the extension of the M4 information technology corridor into Wales. The WDA is already working closely with local authorities in the development of other marketing initiatives for north and west Wales.

A switch of industrial emphasis such as we have had in Wales in recent years is bound to lead to a demand for urban regeneration and the removal of industrial dereliction. In the first three years of the valleys programme, the Welsh Office has approved grants totalling £9·5 million towards projects in the south Wales valleys under the urban development grant and its successor, the urban investment grant. The grants are designed to bring development to derelict urban sites and are expected to trigger private sector investment of more than £40 million and create or safeguard 1,500 permanent jobs.

In Cardiff we have one of the most exciting urban development corporation projects in the whole United Kingdom. We are already seeing some notable developments in Cardiff bay—the continued progress at Atlantic wharf, including the Brains brewery investment in a £3·2 million leisure complex; plans for the creation of the maritime community at Penarth haven; the construction of more than 400 houses by a consortium of private builders at Windsor quay; and Grosvenor Waterside's £125 million redevelopment planned for the Roath basin. In time, the opportunities created by the development strategy could yield 25,000 new jobs—created by private sector investment of £1·5 billion.

A similar catalyst to economic regeneration in north Wales is the A55—the road of opportunity. But that is not our only contribution. The Welsh Development Agency has made considerable efforts to regenerate north Wales. During 1989–90, £10·5 million was spent on industrial property in Clwyd and Gwynedd. This included speculative factories in Wrexham, Deeside and Gaerwen. Projects currently under way include the business centre at Park Menai, advance factories at Greenfield business park, the industrial site at Caernarfon and Tai Llwyd at Kinmel bay. In the current financial year, the agency will be increasing its expenditure on property development by almost £5 million, and some £15 million will be spent on property development centred on places such as Wrexham, Deeside, Llandudno and St Asaph.

In the past few years, the private sector has also become active in the industrial and commercial property market in north Wales. Let me mention just two ventures that point to the quality of private sector interest that has come to our part of the world—the St. David's business park at Ewloe—which is being developed by the Redrow group—and the Cheshire-based Pochins plans to construct 21,000 sq ft of business floor space at Wrexham. Those investment decisions are in indication of the continuing strength of the local property market.

I cannot leave the subject of north Wales without mentioned that it is just over a year since the devastating floods hit the north Wales coast. Earlier this week we published our response to the Select Committee report on the flooding and the efforts to clear up after it. The Government responded to the devastation of the affected communities by channelling some £4 million of aid to them. British Rail has now completed its consideration of, and decided on its preferred option for, the rebuilding of the sea wall.

Now let me say something about rural areas. Last week in the Welsh Grand Committee, I announced a rural initiative to parallel the valleys initiative and to co-ordinate and maximise the benefit of the Government's substantial investment in rural Wales, which runs at about £1 million a day. I took the opportunity of making various announcements, which I shall not repeat now.

I reiterate my commitment to agriculture, which is an essential part of the economy of rural Wales. From my frequent visits to rural Wales and my discussions not only on farms but with the farmers' unions, I know of the serious difficulties facing Welsh agriculture. I shall not minimise them, nor do I seek to play down the vital importance of agriculture to large areas of Wales.

We have been able to announce the first across-the-board increase for five years in the rate of hill livestock compensatory allowances payable in the less-favoured areas. That will represent a cash injection of more than £37 million, for the industry in Wales, of which £4·8 million is additional. We have also been able to make advance payments of the sheep annual premium and the suckler cow premium payments are now running at £10 million a year. The farmers of Wales can have no doubt that we have their best interests at heart. Their representatives know that I am always willing to see them to discuss the difficulties that the industry faces.