Oral Answers to Questions — Wales – in the House of Commons at 11:30 am on 10 June 2009.
Nicholas Winterton
Conservative, Macclesfield
11:30,
10 June 2009
What recent discussions he has had with the First Minister on prospects for the manufacturing sector in Wales.
Peter Hain
The Secretary of State for Wales
I had my first meeting with the First Minister on the Welsh economy on Monday. I intend to work closely with the Welsh Assembly Government and ministerial colleagues to ensure that the manufacturing sector, which is so vital to Wales, receives all the help that is needed to come through the global crisis as strongly as possible.
Nicholas Winterton
Conservative, Macclesfield
Welcome back! Way back in 2005, CBI Wales warned that manufacturing in Wales was continuing on a downward trend. More recently, Professor Pham of the Cardiff School of Engineering has argued that a weakness in the Welsh economy—the fact that it is dominated by small businesses—has inhibited the growth of a strong research and development base. That is a serious point. Does the Secretary of State agree with Professor Pham, and what can be done to rectify that problem in the Welsh economy?
Peter Hain
The Secretary of State for Wales
I am grateful for the hon. Gentleman's welcome, and I acknowledge that he has shown a long and committed interest in supporting manufacturing. He may be interested to know that the latest report from the Engineering Employers Federation shows a slight improvement in the Welsh manufacturing sector, with Welsh manufacturers expecting an improvement over the next three months. He may also be encouraged to know that the latest report by the Purchasing Managers Index shows that total business activity has increased for the first time since May 2008, with growth in Wales greater than the UK-wide trend.
Betty Williams
Labour, Conwy
My right hon. Friend will remember the pleas that I and my hon. Friend Chris Ruane made in 1997 for our area to be covered by objective 1 funding. Does he agree that that funding has been important for the whole of the western part of Wales? Does he still wonder why the Secretary of State in post before that date did not apply for objective 1 funding so that Wales could have benefited a lot earlier than it did?
Peter Hain
The Secretary of State for Wales
I certainly do remember the powerful case that my hon. Friend and my hon. Friend Chris Ruane made in representing their constituencies and in persuading me that objective 1 funding should be extended to Denbighshire. Indeed, she is quite right: the Shadow Health Secretary announced on the "Today" programme only this morning plans for a 10 per cent. cut in departmental expenditure limits for all Departments except those covering health, international aid and schools. That would mean savage cuts in spending in Wales, and would also put the whole of the European convergence programme, which has done so much for west Wales and the valleys, in jeopardy.
Roger Williams
Opposition Whip (Commons), Shadow Secretary of State for Wales, Shadow Minister (Environment, Food and Rural Affairs)
Mr. Speaker, I would like to thank you for your kindness over the years—even though you have occasionally confused me with Hywel Williams. I also welcome back to his former post the Secretary of State, who faces greater challenges now than ever before. I should also like to thank his predecessor, who was kind enough to meet representatives from a group of manufacturing companies in my Constituency.
Manufacturing is key to the Welsh economy, but Experian recently released a report that suggested that 350,000 manufacturing jobs would be lost across the UK between now and 2010. We know that a significant proportion of those losses will affect Wales's already battered manufacturing sector. On his return to the Cabinet, will the Secretary of State make protecting Welsh manufacturing jobs his No. 1 priority? The last thing we want to see is whole communities left on the scrap heap, as happened in the 1980s and 1990s.
Peter Hain
The Secretary of State for Wales
I very much agree with the hon. Gentleman, and I shall certainly be happy to work with him. I know that the sort of manufacturing that still exists in his Constituency is very important. It tends to be made up of small and medium-sized enterprises that need all the support that they can get. I also thank the hon. Gentleman for his welcome. I do not know who was the more prejudiced by the confusion between him and Hywel Williams.
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