Unemployment

Oral Answers to Questions — Wales – in the House of Commons at 12:00 am on 12 June 1995.

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Photo of Mr John Marshall Mr John Marshall , Hendon South 12:00, 12 June 1995

To ask the Secretary of State for Wales what is the current number of unemployed in Wales; and what was the figure in December 1992. [26035]

Photo of John Redwood John Redwood Secretary of State for Wales

In April 1995, the seasonally adjusted figures for Wales were 106,900, compared with 133,400 in December 1992. This represents a fall of 26,500, or one fifth, in the unemployed total.

Photo of Mr John Marshall Mr John Marshall , Hendon South

I thank my right hon. Friend for that answer, showing that there has been a 20 per cent. reduction in unemployment in Wales. Does he agree that that is due to inward investment, which has been encouraged by Wales as part of the United Kingdom's having a low corporate rate of tax, no national minimum wage and no social chapter? Does he believe that that would be helped if Wales had a Welsh Assembly, which would make it one of the most over-governed countries in the world?

Photo of John Redwood John Redwood Secretary of State for Wales

On the contrary: it would put a lot of investors off, at home and abroad. The growth has come about from domestic companies and from inward investment. It has been marked in small companies and in self-employment, as well as in the larger inward investors. They all benefit from our attitude to decent wages and social costs under sensible control.

Photo of Mr Llew Smith Mr Llew Smith , Blaenau Gwent

The Department of Employment recently provided me with a list of all job vacancies advertised in Blaenau Gwent, and their hourly wage rates. The average hourly wage rate for those vacancies was just over £3. Can the Secretary of State inform families in my constituency how they can bring up children on that kind of money?

Photo of John Redwood John Redwood Secretary of State for Wales

If that were the sole income coming into a family, it would clearly need supplementing—it would probably be supplemented by the benefit system. But it would be even crueller to make those sorts of jobs illegal so that the people currently enjoying them could not even have them. Doing that would not suddenly lead to a doubling of wages—the jobs would disappear altogether.

The hon. Gentleman makes no reference to the fact that many thousands of new manufacturing jobs at good wages have been created in Wales in recent years as a result of our economic policies.

Photo of Kim Howells Kim Howells , Pontypridd

Will the Secretary of State cast his mind across to 600 of those jobs, created in the electronics industry, and look carefully at the plight in which Race Electronics in my constituency finds itself? The company has been at the leading edge of burgeoning Welsh electronics production but faces dire difficulties at the moment.

Photo of John Redwood John Redwood Secretary of State for Wales

Yes, of course I shall look at that. I have already asked for more information and briefing on the problem of that company. I am told that there is a reasonable chance that the business will continue, and that it is hoped that a new buyer will be found to take it on. I am told that there is some strength in the underlying business. I hope that that is true; I shall make further inquiries and keep the hon. Gentleman posted.