asked the Secretary of State for Wales if he will ask the Welsh Council to report on the impact of the Government's economic policies on the Welsh economy.

The council discussed these issues at its meeting on 12th May and the chairman subsequently wrote to me. I met a deputation from the council on 30th June for further discussions.

Having achieved simultaneously through his policies the highest level of unemployment in Wales for 35 years and a record rate of inflation, does the Secretary of State now expect that his policies will cause unemployment to rise or fall in the coming months?

I think it is right to expect unemployment to rise in the coming months.