asked the Secretary of State for Wales what further consultations he has had with the British Steel Corporation in the light of the new public spending criteria.

I maintain close contact with the corporation on all aspects of its work in Wales.

Will the right hon. and learned Gentleman make new and urgent representations on behalf of continued steel-making at Shotton? Will he, for instance, visit the works?

As the hon. Gentleman knows, the Government have carried out a thorough examination of the British Steel Corporation's development proposals and were satisfied that they offered the best means of securing the future for the steel industry. That remains the position.

Does the right hon. and learned Gentleman agree that, although the Government were satisfied regarding tube production capacity and therefore closed the Newport works, there is now a tube shortage? Perhaps the judgment of the corporation ought to be considered by the Government.

The British Steel Corporation's strategy went into great detail and it was considered that for the long-term future of the steel industry it was the proper strategy.

asked the Secretary of State for Wales what further consideration he has given to the composition of rent scrutiny boards in Wales.

This is a matter for the President of the Rent Assessment Panel for Wales.

As the Secretary of State has executive responsibility for housing in Wales, will he now exclude the professional members from the rent scrutiny boards in favour of the expertise possessed by democratically-elected people? Does he agree that there ought to be a right of appeal from the arbitrary decisions of these rubber-stamping servile bodies so as to give natural justice to 280,000 council house tenants in Wales?

It is the responsibility of the President of the Rent Assessment Panel for Wales to make appointments to rent scrutiny boards from the membership of the panel. I cannot intervene in this. The scrutiny boards are completely independent bodies and I am satisfied that appointments in Wales meet that requirement.

asked the Secretary of State for Wales what effect the recently announced cuts in Government expenditure will have on the road-building programme in North Wales.

The start of work on some trunk road projects may have to be deferred. Local highway authorities are considering the measures necessary to achieve the required reduction in expenditure on other roads.

Is my right hon. and learned Friend aware that there is real anxiety in North Wales that the already inadequate trunk road programme may be further set back as a result of the cuts in Government expenditure? Will he fight like a tiger for its young to protect this ailing programme?

My hon. Friend will appreciate that we in Wales will have to take our fair share of the cuts which are proposed. The cuts proposed for Wales are only a fair share of the total cuts. We are not being asked to take any more cuts beyond that. I assure my hon. Friend that by regulating the starting dates on schemes I shall seek to give the highest priority I can to the A55 improvement.

Will the right hon. and learned Gentleman be a little more specific? Does the reduction in public expenditure announced by the Chancellor of the Exchequer mean that grants towards roads in North Wales and elsewhere will be down by 10 per cent. in 1974–75? The Secretary of State has accepted that the A55 in North Wales is very important. How will the improvements to the A55 and the bypass on both sides of the proposed new road span over the Menai Bridge be affected?

It is too early to say precisely which schemes will be affected, but certain schemes will clearly have to be deferred.

What about the 10 per cent. reduction?

Will the Secretary of State take note of the exceptional needs of Cardiganshire? Does he appreciate that the amount spent per mile on trunk and principal roads in Cardiganshire is very much below the average for the adjoining counties? Will he pay particular attention to the contribution which road improvements can make to strengthening the county's economy?

I agree that these matters are important for Cardiganshire, in the same way that road works are important for most parts of Wales. Local authorities will take these matters into account in assessing priorities.

In this context, can the Secretary of State indicate when he expects to make a statement on the forces in Wales with reference to road works, particularly the Queen roundabout and the Ha warden bypass?

I hope to make an announcement on the task force very soon. Many matters have to be considered afresh in relation to the task force and these matters will be considered as early as possible.

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of those replies, I beg leave to give notice that I shall seek to raise this matter on the Adjournment.

asked the Secretary of State for Wales if he will call in for public inquiry the decision of the Montgomeryshire Planning Authority to allow quarrying to proceed under certain conditions on Middletown Hill.

No, Sir. Applications can be called in only where they have not already been decided.

Surely a remedy must be available when a decision has been made which has greatly disturbed the inhabitants of this village, who live only 200 yards away from and below the site of the quarry. Is there not a means whereby the Minister can influence this decision or at least call it in for some kind of public inquiry?

I cannot call it in once the determination has been made. There are certain remedies, but they are extreme ones and it would be an extreme matter for me to override a local planning authority's judgment on a purely local matter. Having considered this matter, I have reached the conclusion that it does not have wider implications than those of local significance. For that reason I cannot intervene.

asked the Secretary of State for Wales how much of the public expenditure cuts announced in December will apply to the counties of Brecon and Radnor.

It is not possible to forecast how much of the public expenditure cuts will apply to any particular part of Wales since much will depend on what schemes are put to me for approval by the authorities concerned.

Does the Secretary of State agree that there has been a cut in these counties, however much it may be, and that since his Government have been in power there has been a continuous shift of emphasis in that local authorities have been obliged to find more and more of their income? Can we expect a further announcement on cuts in public expenditure in view of today's announcement of the balance of trade figures?

Since the Government have been in power local authorities have spent very much more than at any other time in their history. As I said earlier, we in Wales must take a fair share of the proposed cuts, but I am happy to say that we are required to take only a fair share of the reduction.

What is this fair share to be? Will the Secretary of State answer my previouns question? Is there to be a cut of 10 per cent. in the overall expenditure on roads in Wales in the financial year 1974–75? Will the Secretary of State please reply?

The figures for 1974–75 on reduction of capital expenditure on roads in Wales amount to £9·8 million. On procurement of roads the reduction will be £1·8 million.

asked the Secretary of State for Wales whether he will make a statement on the proposed Llantrisant new town.

I expect to announce my decision soon.

In view of the tragic cuts in public expenditure announced by the Government, some effects of which have been referred to in previous Questions, would it not be much better for the people of Wales if the expenditure which will be required for the starting of this proposed new town were to be allocated to local authorities to overcome some of those effects, and certainly if some of it were to be allocated to meet much-needed improvements in the valley communities?

The hon. Gentleman will not expect me to make any comment on this matter in advance of a decision being announced.

Is not the failure to make a decision on this and related matters of the sewage works and the line of the M4 becoming a public scandal? Does not the right hon. and learned Gentleman realise that sewerage facilities in the Llantrisant area are grossly inadequate to cover the amount of housing which has been built and the amount of industry which has moved into the area? Will he accelerate a decision on this matter?

I shall be announcing my decision on the proposed sewage disposal works as soon as possible. My decision will probably coincide with the decision on the Llantrisant scheme.

As the Secretary of State has used the word "soon" so many times, will he tell us how soon is "soon"? He has been sitting on this report for many months. Although he will not disclose the conclusions of the report, will he say, when the public expenditure figures for 1976 are published, what amounts of money will be included for the new town? Did he assume that it would never be built?

I assure the hon. Gentleman that by "soon" I meant soon. I hope to make an announcement within the next fortnight.

Reverting to an earlier Question, may I ask whether it is not a fact that the sorts of aid and grants available under the new town procedure are not readily made available in the same part of the country under alternative forms of grant?

My hon. Friend is, as he so often is, absolutely right. Right hon. and hon. Members opposite quite clearly have failed to appreciate exactly what finance was proposed for the setting up of the new town. A very large amount of this would be private finance.

asked the Secretary of State for Wales what representations he has received regarding the effects of the cuts in public expenditure on the education service in Wales.

I received a letter on 18th January from the Rhondda Excepted District of the Glamorgan Education Authority about educational building from now until 1975.

As these cuts in public expenditure and education in Wales are a direct result of the Government's failure and are likely to have serious repercussions on the education of our children, would it not be more honest for the Government to indicate how and where these cuts may be made rather than to shield behind local authorities which are having to carry the blame for the Government?

I agree that local authorities are anxious to have the matter clarified as soon as possible. All local education authorities are at present having consultations with my Department on this very matter. The hon. Gentleman will be happy to know that, despite the deferment of the improvement programme, the range of projects to be undertaken by July 1975 still exceeds those undertaken by the previous administration.

In view of the very serious effect upon local government services in Wales of the proposed cut in expenditure, will the Secretary of State provide us with a White Paper indicating how he believes that the various services in Wales are to have cuts applied? He has given some very strange replies this afternoon, indicating that he does not know how on earth the cuts are to be applied.

I can certainly let the right hon. Gentleman know the proposed cuts in each of the services. There is a Question down today on this very subject. The right hon. Gentleman will appreciate that this Question relates solely to the education service.

asked the Secretary of State for Wales whether he will pay an official visit to the Pontypridd constituency.

Yes, Sir.

Will the Secretary of State, when visiting the Pontypridd constituency, take the trouble to visit the mines which are working in the constituency, talk to ordinary miners and go on a tour of the seams such as those working in the Cwm colliery? Having seen the conditions under which ordinary miners live and work and the rates of pay they receive, will he return and knock some sense into the block-headed Cabinet and persuade it to settle the miners' dispute?

The arrangements which I have made to go to the hon. Gentleman's constituency, and of which I will certainly give him advance notice, do not include that type of visit. One thing I do know is that the employment situation which obtained at the end of last year in the hon. Gentleman's constituency is at the moment in jeopardy by reason of the shortage of energy. I feel sure that the hon. Gentleman must have brought this matter to the notice of those who are engaged in the mining industry in his constituency.

If the Secretary of State is so concerned about the effects of the energy situation, will he tell us whether he has yet drawn it to the attention of his Cabinet colleagues that their present policy of the three-day week is costing the country about £450 million a week whereas a justifiable wage award to the miners of less than one-tenth of that amount in addition to what they have already asked for would send us back to work in a couple of days? On his experience in Pontypridd, perhaps he will bring that point of view to bear in the Cabinet.

These are matters which are being discussed continually and are being discussed today when my right hon. Friend the Prime Minister meets the leaders of the Trades Union Congress.

asked the Secretary of State for Wales how many officers and staffs of the existing Welsh local authorities have been appointed to posts with the new county and district councils in the Principality ; and what is his estimate of the number of Welsh local government officers and staffs who are still seeking such employment.

I regret that this information is not available. However, the staff order, now being drafted, will ensure that all staff employed by existing local authorities on 31st March 1974 will be employed by a new authority on 1st April 1974.

Is my right hon. and learned Friend able to comment on reports that some of the new county councils are finding it impossible to recruit key personnel at the top level? Second, can he comment on the allegation, which has certainly been made to me, that, whereas the redeployment of senior officials is going reasonably well, it is not quite so satisfactory at lower levels?

Specific employment is being arranged only with key officials. As my hon. Friend appreciates, 99 per cent. of people working in local government will be employed under the Act in April 1974 by a new authority. I know that these are matters of great importance to those concerned with local government, and I know also that they appreciate the work done by the staff commission.

Has the Secretary of State made revised estimates of the cost of this reform of local government, since Parkinson's Law is rife in it, and have he and his Cabinet colleagues investigated what contribution it is making to our inflationary position?

It is an important question, and I know that everyone will be anxious for the local authorities to take heed of the need to keep costs down as much as possible.

asked the Secretary of State for Wales how many new school projects in Gwent will be held back as a result of the Chancellor's restrictions announced on 17th December 1973.

It is not possible to say precisely which improvement projects will be deferred until my Department has completed its consultations with local education authorities.

Does not the Secretary of State agree that, if the maximum grant is not received, there will be a savage blow at the education service in the new county of Gwent, since a great deal more money has to be spent to maintain the existing services? Further, as his Government forced through the local government reform, since they willed the ends they should now will the means by providing the necessary resources.

As the hon. Gentleman knows, it is the starts of major improvement programmes which will be deferred unless local education authorities can justify the inclusion of any particular project in the basic needs category ; and it is this sort of discussion which is now going on. Despite the deferment of the improvement programme for major school building projects, there will still be £15 million of projects eligible for starts by July 1975, and about £2 million of these are in Gwent.

Will the right hon. and learned Gentleman assure me that no school project envisaged or under construction in Swansea will be cancelled or scaled down? Second, will every facility be given to the construction of the Hafod school, the first major school to be built in my constituency in that part of the city since 1903?

The question refers to school building in Gwent. If the hon. Gentleman cares to put down a Question about Swansea, I shall be happy to answer it.

Has the Secretary of State any policy whatever with regard to the imposition of these cuts? Is it that 10 per cent. will be cut off the budget of every local authority, is it to be in the form of a lottery depending on the date on which schemes come in, or does he propose to delegate the whole matter to senior officials?

Again, if the hon. Gentleman will put down a Question relating to the whole country I shall answer it. Improvements will be deferred unless they can be related to basic needs. This is where the cuts will be found in the education programme, apart from procurement.

But will there be any appreciation of the differential needs of various localities, or will it be a flat-rate cut over the whole of Wales?

The cuts will be flat-rate cuts, both on capital and procurement, throughout the whole of Wales.

asked the Secretary of State for Wales what proposals he has received from the Cardiff City Council to provide a new access road to Heath Hospital.

A new access road has been suggested which would connect with the roundabout at the Eastern Avenue—A470 trunk road interchange at Gabalfa.

Is my right hon. and learned Friend aware that it is generally regarded as a major planning blunder that an adequate access was not provided for the hospital, and is he aware also that urgent consideration and approval of the current Cardiff city proposal would bring relief to a large number of residents in the area, who are growing increasingly dismayed and frustrated?

My hon. Friend knows because I have already written to him on this matter, that I am anxious to be helpful, and I have offered to contribute towards the cost of certain traffic lights. Earlier proposals put forward by the city were open to a number of objections. I am considering the city's present proposals carefully to see how far those objections are overcome.

asked the Secretary of State for Wales what representations he has received from representatives of National Health Service staff in Wales regarding the problems arising from the reorganisation of the administrative structure of the health service ; and what replies he has sent.

I have had letters from staff interests and from hon. Members. Replies have varied according to the nature of the representations. I have at all times urged that staff should be kept fully informed and consulted on all matters that affect them.

Does the Secretary of State realise that, despite his desire to keep the staff informed, there is still considerable anxiety among them about their future rôle under the new area health authorities? Will he now give an assurance that a substantial majority of staff will know by the end of this month what their duties and responsibilities will be under the new authorities when constituted?

I appreciate that there is anxiety among the staff. The matter was referred to at some length when the hon. Gentleman wrote to my hon. Friend the Minister of State, and I do not think I can add anything to the somewhat lengthy reply which my hon. Friend gave on 10th January.

Does my right hon. and learned Friend appreciate that he has still some way to go before he allays the discontent among many practising doctors in North Wales that they are not being adequately represented on the area health authorities?

I understand that there have been complaints on this matter, but I am satisfied that the medical representation is adequate.

Is the right hon. and learned Gentleman aware that the morale of National Health Service employees is absolutely at rock level, thanks to the way in which he has handled the reorganisation? Will he show a greater sense of urgency in this matter in trying to restore the morale of people who want to do nothing more than give good public service?

The right hon. Gentleman does not assist by exaggerating. I do not agree that morale is at rock level. I agree that concern has been expressed, but one thing I am very happy about is that the staff commission which has been at work has met very little criticism.

What increase is there in the number of administrative personnel in the new organisation as compared with the old, what will be the increased cost, and have the Cabinet considered what effect this will have on the country's inflationary position?

With notice, I shall be happy to answer that question.

asked the Secretary of State for Wales if he is satisfied with the provision of hospital services in West Monmouthshire.

I am satisfied that the Welsh Hospital Board has taken full account of the needs of West Monmouthshire in its planning.

The Secretary of State must be easily satisfied. It is not the fault of the Welsh Hospital Board that there is no district general hospital in West Monmouthshire ; it is not the fault of the board or the people of my constituency that 7,000 people in the general area of my constituency are waiting for hospital admission and that three or four times that number are waiting for out-patient treatment. The final insult has come in the form of a circular to general practitioners asking them to refer their patients to a 32-mile round trip for out-patient service at Nevill Hall, Abergavenny. Is the right hon. and learned Gentleman still satisfied?

I said I was satisfied that the Welsh Hospital Board had taken full account of the needs. After 1st April it will fall to the Gwent area health authority in the first place to consider the issues that the hon. Member has mentioned today. I have no doubt that it will take full account of what he has said.

asked the Secretary of State for Trade and Industry whether he is now in a position to make a statement about the regional employment premium.

I refer the hon. Gentleman to the answer which my hon. Friend the Chief Secretary gave to the hon. Member for Lanarkshire, North (Mr. John Smith) on 17th January.—[Vol. 867, c. 139.]

Does the Minister agree with the conclusion of the Expenditure Committee that the withdrawal of the REP without any comparable replacement would create serious difficulties for many firms? Is he aware that the gap in levels of unemployment between the North and the South will widen as a result of the economic crisis and that, therefore, every kind of regional incentive, including REP, is desperately needed? Is it not about time that, on this as on so many other issues, the Government told the House what they intend to do?

My right hon. Friend the Chancellor will announce his decision to the House as soon as possible. We shall certainly lake note of the report of the Trade and Industry Sub-Committee in which I note it is also stated in the conclusions that it is difficult to judge whether or not there could be a more effective way of spending £100 million a year.

Will my hon. Friend give an assurance that, before a decision is made, the non-assisted and intermediate areas will be considered and thought will be given to whether the money could be used more effectively in other ways?

My hon. Friend has drawn attention to the fact that there is more than one side to this case. All aspects will be taken into consideration.

Will the Minister say how the Government propose to take into account the case of Scotland, which at present obtains £40 million of the total? What is proposed to be put in its place in view of the imminent expectation of economic disaster following the last week's happenings?

The interests of Scotland, as of other development areas, will be taken into consideration, as will be the national interest.

Have the Government considered the matter again in the light of the much worsened situation, the very serious risk that unemployment will rise, the possibility that the prospects of higher investment will not materialise and the effects that these are bound to have on the development areas? If the Government are so willing to look at all their other policies again, will they reconsider the desirability of maintaining REP, which has been shown to contribute to prosperity in areas which would otherwise be bereft of such help?

The Government will consider all the factors in the light of present circumstances and will take into consideration the views of the right hon. Member for Cardiff, South-East (Mr. Callaghan) when he was Chancellor, when he recommended that the premium should be phased out after seven years.

asked the Secretary of State for Trade and Industry, in view of the shortage of oil supplies, why, on 11th December 1973, he refused an import licence for 4,000 tons of lubricating oil which can be supplied from Romania subject only to his consent.

The embargo on oil imports from Romania is being maintained pending agreement on an appropriate level of compensation for the nationalisation of British assets in 1948 and other claims.

Will my right hon. and learned Friend say how long this is to go on? As far as I know, every Eastern European Government has refused to honour such investment and commercial liabilities and similar claims but we readily trade with them. Why single out Romania?

We have been pressing for a settlement with Romania for many years. Two rounds of negotiations were held in 1973 and the discussions have now been adjourned. However, there is some reason to hope—I say this in the light of my hon. Friend's observations—that the Romanian Government will shortly make a satisfactory offer of settlement.

Is my right hon. and learned Friend aware that assets to the total value of £40 million remain unpaid for by Romania?

I am very much aware of that. It is one of the reasons why we do not cast away the prospect of a successful negotiation.

asked the Secretary of State for Trade and Industry if he will reconsider the terms of reference of the inquiry into Lonrho and extend them.

The inspectors' terms of reference are determined only by the statutory powers under which they are appointed. No limit has been placed upon the scope of their inquiries.

Will this inquiry publicly disclose in full the complex manoeuvres by which Lonhro or certain directors of it tried to corner for themselves the vast profits arising from a major Rhodesian copper strike at the Inyati mine, first by transferring ownership to a shell company in South Africa, secondly by trying to buy out cheaply minority shareholders by concealing the true size of the windfall gain, and thirdly by transfer pricing between subsidiaries abroad? How will the Companies Bill stop this kind of greedy expropriation by unscrupulous multi-nationals?

In his supplementary question the hon. Member has used seven or eight intemperate nouns or epithets by way of launching into the allegations he has made. I have already written to him answering his detailed letter telling him that all the matters to which he has referred will be looked at by the inspectors, and inviting him, if he is in possession of as much information as he appears to be, to proffer documents to the inspectors who will be glad to hear from him.

asked the Secretary of State for Trade and Industry what progress is being made with the developments of the RB211-524 Rolls-Royce engine ; and what arrangements have been made for sharing the launching costs.

asked the Secretary of State for Trade and Industry what requests he has had for further Government support in the development of the RB211 family of engines ; and what replies he has given.

My hon. Friend the Minister for Aerospace informed the House on 13th December of the Government's position in relation to the development of the RB211 engine to 48,000 lb. thrust. We are in continuing touch with the manufacturers and as soon as further decisions are taken my hon. Friend will of course report them to the House.—[Vol. 866, c. 170–1.]

Will the Minister give an assurance that the development and launching of the up-rated version of the RB211 will not be held back through lack of funds? Will he join me in condemning those sections of the Press which have been scaremongering about the prospects of TriStar and the RB211?

I shall certainly join with the hon. Member in condemning scaremongering speculation. I can assure him that we are in the closest contact with the company and that we wish to see this project succeed.

Have any approaches been made concerning development up to the -25 standard, the 55,000-1b. engine, and the -80 standard, the 30,000-1b. thrust engine? Are these likely goers in the near future?

No such proposals have been put to us by the company, which is concentrating on the 48,000-1b. version which is adequate for its purposes.

What recent discussions have the Government had with Lockheed, for example during Mr. Haughton's recent visit to London, and what reassurance can the Government give Rolls-Royce and the workers that the project has a long-term future?

As the hon. Member may know, my hon. Friend the Minister for Aerospace had a meeting on 18th January with Mr. Haughton, who advised him of the latest situation. There is, of course, a close connection between this version of the RB211 and the stretched version of the Lockheed 1011. We understand that Lockheed has decided to defer launching of the -2 for the time being but it has informed us of no decision to abandon the project and it has indicated that it is considering alternative plans to provide a long-range version of the 1011.

Does my hon. Friend foresee any other aircraft in which an up-rated version of the RB211 could be installed? Will he look into the possibility not only of installing the engine into the European airbus but also of selling the engine to the Russians and the Chinese?

These are essentially matters for the manufacturers, who no doubt are alive to the possibilities not only of the European airbus but also of the Boeing 747.

Since the Minister says that his hon. Friend has seen Dan Haughton about the situation, will he be more forthcoming concerning the discussions which took place and the prospects? Is the Minister aware that it is estimated by Dan Haughton that about 56 TriStars are equivalent in use to 100 Boeing 707s at two-thirds of the fuel consumption? On these prospects of significant energy savings, which will of course enhance prospects for the TriStar family, will the Minister assure the House that talks are taking place to ensure the financial viability of Lockheed, since it is no good having a family of RB211 engines without a family of aircraft in which to put them?

The hon. Gentleman would not expect me to go into great detail about conversations between my hon. Friend and Mr. Haughton, but I have told the House that if decisions are taken my hon. Friend will make a statement. There is no greater believer in the aircraft than Mr. Haughton, and he is a most powerful advocate for it. The question of the financial stability of the Lockheed company is not one for me to comment on.

asked the Secretary of State for Trade and Industry how many new jobs have been created in Fife in each of the last five years ; how many were for men and how many for women ; and how many jobs were lost in the same period.

The information is not available. However, unemployment was 900 lower at the end of 1973 compared with five years previously.

Why is not the information available? How can the Minister judge the effectiveness of the working of the Industry Act if he does not have figures such as those requested in the Question? The new town of Glenrothes is, I think, the only town in Scotland without a public service authority building in which office workers are employed. Will he have regard to that when the Government are deciding the distribution of the offices of the new Energy Department?

The figures are not available in the form requested because they were previously obtained from industrial development certificate applications, and the need for IDCs was abolished in 1972. However, we hope that it will be possible to obtain more information from planning applications. Certainly we want to have in the hon. Gentleman's area the widest possible diversity of industry and commerce. I shall take careful note of what he says about Glenrothes, but I am fortified by the remarks of the Convener of Fife County Council, writing about Fife only last week, when he said:

"At no time in its history has the industrial and commercial mix of the county been better, nor its sophistication more widely spread."

asked the Secretary of State for Trade and Industry whether he has plans to meet the Association of British Travel Agents and the Tour Operators Council to discuss the 1974 holiday season.

I have already had discussions with the Association of British Travel Agents about its trading arrangements.

Has my right hon. and learned Friend noticed that this year many people who would normally have been making holiday bookings are hesitant about doing so in view of the possibility that the travel tours for which they are booking might not go ahead? Has he noticed that this has led to difficulty in some parts of the travel trade? Is the future oil supply position such that my right hon. and learned Friend can now engage in discussions with the travel trade with a view to giving it an indication of how much oil is likely to be forthcoming in the summer months for charter holiday flights?

The travel trade is as aware as anyone else of the possible difficulties arising from the oil supply shortages. My hon. Friend the Under-Secretary will be keeping in touch with it about that.

In the Minister's discussions with the travel tour operators, was there mention of the fact that operators do not seem to be telling holidaymakers that people travelling from this country to other Common Market countries are not required to cover themselves for sickness and treatment in hospital?

I shall certainly pay attention to the point made by the hon. Gentleman.

Is the Minister aware that many travel agents are already so worried that there have been dismissals of staff? Does he recognise that when, after today's trade figures, a new Draconian Budget is introduced, there will inevitably be a risk of increases in bankruptcies among travel agents? In those circumstances, what further action does the Minister contemplate to protect members of the public who have booked and paid well in advance, in the event of travel agents encountering difficulties?

I do not take the same alarmist view of the situation as the hon. Gentleman does. The prospect of financial failure is one of the matters that has been under discussion in the past with the association.

asked the Secretary of State for Trade and Industry if he will make a statement on progress in the GATT negotiations.

Following the official opening of the multilateral trade negotiations in September last year in Tokyo, the Trade Negotiations Committee, which was set up then by Ministers, held its first meeting in Geneva in October. Discussion since then has centred on the most appropriate structure for the preparatory work and for the negotiations proper. These can begin once the United States Trade Reform Bill, which gives the United States its negotiating authority, has been passed.

Recognising the general background difficulties, may I ask my right hon. and learned Friend whether he can confirm that it is the Government's intention to give every possible backing to maintaining the momentum of the talks? In view of the disintegration of Common Market policies on economic and monetary union, and virtually everything else, can he confirm that the Common Market negotiating position in GATT is likely to remain intact?

While not accepting my hon. Friend's premise, I entirely agree with him about the importance of pressing ahead with the negotiations.

Will not the right hon. and learned Gentleman take seriously what his hon. Friend said? The French float and the effect it is bound to have on the common agricultural policy make it absurd that the British Government should have accepted a negotiating position that excluded discussion of common agricultural policy matters. Will he not wake up to the reality that economic and monetary union and the moves towards it, together with many of the other ideas aired at the Summit meeting in November 1972, have broken down and that the Government should respond accordingly?

It is far too early to jump to the kind of conclusions to which the right hon. Gentleman is jumping—[HON. MEMBERS: "Jumping?"]—to jump, float or move in whatever manner the right hon. Gentleman is most accustomed to. It is equally wrong to conclude that agriculture has been excluded from the negotiations to the extent the right hon. Gentleman suggests.

Does the negotiating position to which the British Government are committed assume economic and monetary union by 1980? Is it my right hon. and learned Friend's view that that assumption is likely to be validated?

The Government's negotiating position is arrived at in the context of the European Economic Community and other treaty obligations as they now stand.

asked the Secretary of State for Trade and Industry whether he is now in a position to announce a decision on the relocation of the Laboratory of the Government Chemist ; and if he will make a statement.

Not yet, Sir.

In view of the Secretary of State's assurance to the House during the debate on the Hardman Report that this relocation was being given serious consideration, will the hon. Gentleman now assure me that the remoteness of Cumberland will not be given by his Department as an excuse for siting the laboratory elsewhere? Does he not realise that, if the Government's stated intentions about industrial development in the area are to mean anything, they should set an example to industrialists by sending a Government Department to it? If they do not, their statements about industrial development there will sound rather hollow.

Without going into the hon. Gentleman's general point, I acknowledge that he has put the case for West Cumberland very fully in his meetings with my hon. Friend the Member for Harrow, Central (Mr. Anthony Grant). I hope he will also recognise, however, that any decision, if it is to be right, must take into account the special operational requirements of the laboratory, which provides a unique advisory and experimental service, the needs of client Departments and the views of the staff and all other interested parties.

asked the Secretary of State for Trade and Industry what recent discussions he has had with British Airways regarding the continuation of facilities at West London Air Terminal.

My hon. Friend the Minister for Aerospace and Shipping wrote to the British Airways Board on 21st December to draw its attention to the motion on this subject approved in another place the previous day. The board accordingly considered at its meeting of 28th December whether it should defer the proposed withdrawal of the check-in facilities at the terminal, but it concluded that there was a compelling case for bringing the new arrangements at the terminal into operation as planned on 1st January.

Is the Minister aware that among the reasons given by British Airways for the closure of the check-in facilities were the facts that more people were using private cars to get to London Airport and that the coaches used to convey passengers were often delayed, thus holding up flights? In view of the changed fuel situation, those two reasons are no longer valid. Is the hon. Gentleman aware of the concern expressed in another place, where the vote went overwhelmingly against the proposal to make a change? How much money does British Airways hope to save by the change? Is there any estimate of the cost to the public in missed flights and so on as a result of flights leaving earlier than they would normally leave? Will the Minister assure the House that he will have further discussions with British Airways to convey to it the feeling of both Houses on the matter?

I am not sure whether the hon. Gentleman is right when he speaks of the feeling of both Houses. It is true that my original reply took note of the fact that the other place had taken, as it was entitled to do, a view on this matter. That view does not necessarily bind this House.

The hon. Gentleman might like to know that the arrangements have been working for only three weeks, and it is, of course, too early to draw any firm conclusions. There is little evidence of complaints from passengers. There is some evidence that the number of passengers using the terminal has increased. We are keeping a close watch on the situation. I hope very much that the hon. Gentleman will feel inclined to let the results speak for themselves.

Is my hon. Friend aware that there is strong feeling on both sides of the House that British Airways has been insensitive to consumer demand? Will he confirm that it is losing over £500,000 a year revenue which it no longer gets from foreign airlines which have been denied check-in facilities at West London?

This is essentially a commercial matter which is the responsibility of the British Airways Board. Parliament has not given my right hon. Friend a power of direction which could apply in such a case. It is generally the wish of the House that nationalised industries should, so far as possible, be left free to decide these matters for themselves as best they can and meet the needs of their customers.

asked the Secretary of State for Trade and Industry if he will make a statement on the impact of the three-day working on smaller businesses.

asked the Secretary of State for Trade and Industry what representations he has received from organisations representing small firms on the effects of three-day working.

At my request, I have had meetings with the CBI Small Firms Council, the Smaller Businesses Association, the Association of British Chambers of Commerce and the National Chamber of Trade. Although the present situation poses serious problems for small firms as well as large, my information is that the majority of small firms are coping well, with a high degree of co-operation between employers and employees. I am naturally watching the position closely and maintaining direct contact with the sector.

What representations has my hon. Friend received concerning the financial problems which are likely to arise for the whole of industry, and especially smaller firms, if the three-day working week persists for a long time?

Naturally the representatives of the small firms whom I saw were concerned about the problems of future cash flow. They made their points on that basis. They hoped that the banks and financial institutions would be as sympathetic as possible. I have no doubt that that will be the case.

Will the Minister accept that, contrary to his experience, a lot of small firms are outraged at the administrative chaos which appears to reign in the regional centres of the Department of Trade and Industry? I accept that members of the Department must not bear the blame for that since it must lie with the regulations which they have to apply. Does he appreciate that small firms are fed up with the way in which responsibility is being shuffled off by the regional electricity boards? Does he accept that there is a growing feeling, at least in South Wales, about the enormous disparity of treatment regarding applications and appeals from employers in different regions? Is he aware that some firms in similar areas and with similar demands to others are receiving much smaller allowances of electricity?

The hon. Gentleman's information from firms in Wales is not the same as that which has been supplied to me by various organisations with which I have spoken, which had considerable praise for the way in which the regional offices were coping with a difficult situation. We shall consider carefully the difficulties which they are experiencing. By and large, the organisations are in complete support of the Government's counter-inflation measures and there is a remarkable degree of co-operation between both sides of industry. In that respect I pay tribute to them.

Will my hon. Friend consider introducing a rotational system for the three-day working week? Does he accept that firms working at the end of the week are clearly at a disadvantage compared with their competitors which are working at the beginning of the week?

That matter was discussed with my right hon. and noble Friend the Secretary of State for Energy. He will no doubt give full consideration to the views which were then expressed.

Is the hon. Gentleman aware that Lucas Aerospace, one of the smaller companies in its type of business, declared a substantial redundancy over the weekend which it attributed to Government policy? Would the hon. Gentleman accept that as a valid reason for declaring redundancy at this stage?

I cannot now comment on the case which the hon. Gentleman has mentioned. Happily, that has not happened in many firms, but I will gladly consider the case in the hon. Gentleman's constituency.

Will the hon. Gentleman bear in mind that, as a result of the utterly unnecessary retreat into a three-day working week, many small firms are facing not only critical but crippling cash flow problems resulting in part from the failure of the larger firms to pay their smaller suppliers? What urgent action do the Government intend to take to ease the cash flow situation? Will they consider allowing extra time for the payment of the January value added tax demand and introducing staged payments for partially completed contracts in the public sector?

Those points have been referred to the Government and are being considered. My right hon. Friend the Chancellor of the Exchequer must consider them as well and will announce in due course what we can do. The Government are naturally watching the cash flow situation very closely and will wish to ensure that the banks have sufficient liquidity to meet the reasonable needs of industry. However, undoubtedly the best contribution which could be made towards solving the difficulties of small firms would be a return to full-time working by the miners and railwaymen.