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Commons Chamber

Volume 111: debated on Monday 2 March 1987

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House Of Commons

Monday 2 March 1987

The House met at half-past Two o'clock

Prayers

[MR. SPEAKER in the Chair]

Royal Assent

I have to notify the House, in accordance with the Royal Assent Act 1967, that the Queen has signified Her Royal Assent to the following Acts :

  • 1. Teachers' Pay and Conditions Act 1987
  • 2. Licensing (Restaurant Meals) Act 1987
  • 3. Advocates' Widows' and Orphans' Fund Order Confirmation Act 1987
  • 4. Plymouth City Council Act 1987
  • 5. Port of Fosdyke Act 1987
  • 6. Brighton Marine Palace and Pier Act 1987
  • 7. Mid Glamorgan County Council Act 1987
  • Oral Answers To Questions

    Wales

    Unemployment

    1.

    asked the Secretary of State for Wales what assessment he has made of the consequences for the Welsh economy of the current level of unemployment in Wales.

    On a seasonally adjusted basis, unemployment in Wales has fallen in nine out of the past 10 months. This is in some measure a reflection of the success of the action taken by the Government to promote investment and new jobs and to stimulate and encourage future growth in the Welsh economy.

    That does not really answer my question. The Library's research department estimates that £1,131 million has been expended on the payment of unemployment benefit and other related matters in Wales, and this figure, over the past seven years of the Tory Government, means that £7 billion to £8 billion could have been spent in the economy of Wales — money that industrialists, commercialists and others would have welcomed. When will the Secretary of State stop this lunacy and do something to get people back to work?

    I would have thought that the hon. Gentleman would be pleased that we have provided benefit on a substantial scale to those who have suffered from unemployment. Equally, I am sure that he will welcome the reduction over the past 12 months in blynpunemployment in the travel-to-work area covering his constituency, from 18·3 to 16·4 per cent. In particular, I am sure that he will welcome the announcement today by Sony of a major £30 million-plus project at Bridgend, which will employ over 330 additional people, bringing the work force at Bridgend to about 1,600.

    Do not indications, reports and forecasts by the Welsh CBI and other bodies suggest that the prospects for the Welsh economy are probably better now than they have been for many years? Is investment by British Coal Enterprise Ltd. commensurate with the jobs lost in the coal mining areas of south Wales?

    I agree with my hon. Friend's assessment, and I shall have more to say on that subject in the debate later this afternoon. As my hon. Friend will be aware, over £40 million has been made available to British Coal Enterprise Ltd. and over £5 million has already been invested in projects in Wales. British Coal believes that that would create, in due course, some 4,000 jobs in the affected area of Wales. That is only one of the many contributory sources of new employment and new job creation in the Principality.

    How many jobs have been lost in Wales since the Government took office in 1979? Is it 150,000 or 170,000?

    The hon. Gentleman has to look at the small reduction—about 2 per cent.—in the total number in the work force, taking account of the self-employed, following the massive loss of jobs in coal and steel and the world recession in the early 1980s. What is of much greater significance is the scale on which investment is taking place, the fact that unemployment is falling faster in Wales than anywhere in the United Kingdom, and the almost universally confident forecasts by those involved in industry and in a position to assess its prospects.

    Does my right hon. Friend agree that the Welsh economy is in infinitely better shape and is healthier than it was in 1978–79 because more than 200 foreign companies have settled and invested in Wales, employing over 44,000 people? Does he also agree that we have had fewer strikes than for the past 30 years, and that our coal and steel industries are also doing infinitely better? If they had been left in the hands of the Labour party, we would have been suffering from stagnation, inflation and unemployment.

    I agree with all that. When the Labour party was in Government, industry was overmanned and uncompetitive. Great advances have been made in improving the competitive position of British, and especially of Welsh, industry since that time.

    Does not unemployment cost Wales almost £3 million a day and are we not squandering our most precious resource—our people? May I remind the Secretary of State that nearly 15,000 people in Wales have been out of work for more than five years—some 9 per cent. of the total number of unemployed? Will he ensure that the forthcoming Budget is a Budget for Welsh jobs in housing, health, education, law and order, social services and industrial development?

    As I have said, last year's Budget has produced a fall in unemployment for nine out of the last 10 months, and unemployment has fallen faster in Wales than elsewhere in the United Kingdom. I am quite confident that my right hon. Friend the Chancellor's Budget will accelerate that process in the months ahead.

    A-Level Examinations

    2.

    asked the Secretary of State for Wales if he will make a statement on the future of A-level examinations in the light of the consequential change in teaching methods following the introduction of the GCSE.

    My right hon. Friend the Secretary of State for Education and Science announced on 25 February that he is appointing a committee to review A-levels, with the aim of maintaining or improving the present character and rigorous standards of these examinations. The committee will certainly take account of the changes brought about by the introduction of the GCSE.

    Does my hon. Friend agree that as the GCSE involves radical fundamental changes in the structure and philosophy of secondary education it would be highly undesirable if those now studying for the GCSE had to revert to the old learning approaches, the old teaching techniques and to the old classroom methodology when they enter the sixth form? Is it true, that as the hon. Member for Alyn and Deeside (Mr. Jones) has recently alleged, that there has been a decline in A-level success rates between 1981–1985, or is it the case that once again the hon. Gentleman has not done his homework and is completely wrong?

    With regard to the first part of my hon. Friend's question, the introduction of the GCSE, which is regarded as a tremendous improvement by all involved in education, will have implications for other, more advanced examinations. With regard to the A-level results in Wales, the hon. Member for Alyn and Deeside (Mr. Jones) was, indeed, wrong. The truth is that in 1981, 57 per cent. of those who tried three A-levels were successful. By 1985, that figure had risen to 62 per cent. The success rate of those trying one A-level remained almost constant at about 57 per cent., and the success rate of those trying two A-levels rose from 41 to 45 per cent.

    Will the Minister give us a clear statement as to whether he envisages GCSE taking over from A-levels, bearing in mind that the level of certificate is dependent on the whole school record? What is the position of tertiary colleges in relation to the current falling rolls? Will the Secretary of State encourage those colleges?

    There is no question of GCSE taking over from A-levels. We are trying to assess the effects of GCSE on A-levels, and to act according to the advice that we receive. Of course, we encourage local education authorities to consider tertiary colleges, sixth-form colleges and all the other options available to them.

    Will my hon. Friend take the chance that the review opens up to him, to try to look again at the teaching of foreign languages in our schools? Does he agree that at both GCSE level and A-level or AS-level, our languages should be taught so that they can be used by people in business and in everyday life, rather than just to read Moliere or whatever?

    My hon. Friend is right, although I do not agree with him about the lack of merit in reading Moliere. We have given guidance on the teaching of foreign languages, and the fact is that we have spare teaching capacity in many foreign languages, such as Spanish and Italian, from which our children could benefit.

    Mid-Wales Development

    3.

    asked the Secretary of State for Wales what additional financial assistance he is giving to Mid-Wales Development as a result of the changes in Government policy towards rural areas.

    Gross expenditure by the Development Board for Rural Wales in 1987–88 is expected to be £13·5 million compared with £12·8 million this year. The board's budget for the year allows for a 25 per cent. increase in the Mid-Wales Development grant, a 50 per cent. increase in expenditure on the DRIVE scheme, and the building of almost 120,000 sq ft of new factory space in Mid-Wales.

    Will the Secretary of State ensure that if the Development Commission in England receives more money for the coming financial year, Mid-Wales Development will also benefit by increased funding in that period?

    I have announced our proposed funding. I remind the hon. Gentleman that expenditure per head by the DBRW is some three times greater than in the Development Commission's rural development areas and some 13 times greater if the whole population of rural England is brought into the equation, so the hon. Gentleman need not fear that Mid-Wales is being neglected, on that basis of comparison.

    Does my right hon. Friend not agree that the various agencies that hand out taxpayers' money rarely create new jobs, but move employment around from one part of the country to another? Can my right hon. Friend give any examples of the number of companies set up with taxpayers' money that have subsequently gone bust?

    I have to tell my hon. Friend that I do not agree. The development agencies in Wales have done much to transform the Principality's economic prospects and have helped us through a very difficult time during the decline of the old industries. Mid-Wales Development has made a major contribution towards the strengthening of the rural economy in Wales.

    That said, it helps to explain why the Conservative party lost Brecon and Radnor in the by-election. The right hon. Gentleman delivered a near fatal blow when he denuded Mid-Wales of assisted area status. Does he know that it costs £47,000 per day to pay the Brecon and Radnor unemployed? What is he doing to get unemployment down in that constituency?

    The hon. Gentleman, of course, is wrong. There is a great variety of ways in which we can help in Mid-Wales. For example, our success in obtaining the major investment by Laura Ashley, an internationally successful company, shows just how effective those measures are. Indeed, a vivid account was given to us by the hon. and learned Member for Montgomery (Mr. Carlile) on 16 February during a debate on hospital provision, of the way in which Mid-Wales is thriving and doing better at present. I thank the hon. and learned Gentleman for that positive account.

    Nursery Schools

    4.

    asked the Secretary of State for Wales how many pre-school age children attend local-authority funded nursery schools in Wales; and what percentage of the children of their age group they represent.

    At January 1986 about 3,900 pupils were attending local authority-funded nursery schools in Wales. That represents about 5½ per cent. of 3 and 4-year-olds. Many more children of that age—nearly 64 per cent. —are in the nursery classes of primary schools.

    Is it the Government's policy that all children of pre-statutory school age should attend nursery provision, to develop their educational and social skills and to take stress off the parents, many of whom are working or are one-parent families and have problems in coping with young children?

    The number of nursery units has increased considerably during the period of this Government. From 1979–80 to 1985–86 the number increased from 563 nursery units to 673, which is a rise in full-time pupils from 29,000 to 41,000, so it is clearly the Government's policy.

    What is the policy of the Welsh Office towards funding of Mudiad Ysgolion Meithrin? What efforts is my hon. Friend's Department making to ensure that parental wishes are observed as to the medium through which children are taught?

    Mudiad Ysgolion Meithrin, the Welsh language nursery school movement, receives support from the Government — currently about £360,000 a year. It has increased the number of groups to some 700 in Wales. It has made tremendous progress. As to the medium of teaching and parental influence in schools, my hon. Friend will know that the Government have taken steps to increase parental influence, and a further step will be taken as from the autumn this year.

    Does the Minister agree that the scheme known as Play Board Wales has an excellent record of achievement? Will he give a commitment for future funding to Play Board Wales so that it will not have to be wound up at the end of the current financial year?

    I am not familiar with the details of the application by Play Board Wales, but I shall consider them.

    In the nursery sector, cuts and closures have been proposed, not least in my constituency at Shotton, Aston and Buckley. Will the Minister take advice and give the £1·3 million grant which is proposed for public schools in Wales to the LEAs for nursery education.

    As to the last fact, I hope that the hon. Gentleman realises that the figure to which he referred—the amount which is given to the approved assisted places scheme—is 0·126 per cent. of the total spent on education in Wales. With regard to the Shotton nursery school, to which the hon. Gentleman referred, I can make no comment because no proposals have been published.

    Labour Statistics

    5.

    asked the Secretary of State for Wales what are the latest unadjusted figures for unemployment in (a) Newport, (b) Gwent and (c) Wales; and if he will give the equivalent figures for 1979 on the most nearly comparable basis.

    On 8 January 1987 the total numbers of unemployed claimants in Newport district, Gwent and Wales were 9,990, 28,672 and 176,866 respectively. Unadjusted figures for 1979 are not available on a comparable basis.

    Do not these figures yet again reveal that the Government's policies are not working, particularly in Newport? To improve matters, will the Secretary of State prevail on the Central Electricity Generating Board to build a coal-fired power station at Uskmouth? That would be a useful development near the south Wales coalfield and would boost employment in the area during its construction and operation?

    The hon. Gentleman is wrong in saying that the Government's policies are not working. I have already said that there has been a substantial fall in unemployment in Wales. That is true of Newport, where the unemployment rate has fallen from 16·8 per cent. to 15·6 per cent. over the 12-month period. I shall draw the hon. Gentleman's remarks to the attention of the CEGB.

    Will my right hon. Friend welcome the fact that in the latest CBI report on quarterly trends, 16 per cent. of respondents say that they expect to take on new labour this year? Will he condemn the gloom that the Labour party shows at the good news that unemployment is declining in Wales?

    I agree entirely with my hon. Friend, arid I shall have more to say on the subject later this afternoon.

    As the Secretary of State knows, there has not been a substantial drop in unemployment in my constituency in the Cynon valley. Will the right hon. Gentleman be precise and tell me how much that has cost in the Cynon valley in lost taxes, unemployment benefit and redundancy payments in addition to the cost in human misery? When will the right hon. Gentleman create some jobs in the Cynon valley?

    The hon. Lady knows that unemployment has fallen over the period in the Cynon valley, as elsewhere, that firms such as Hitachi are making major investments, and that there is substantial urban development grant support and urban programme support in the area. The prospects for the valley have probably been altered more than by any other event by the Government's action in completing the splendid new road access to the heart of the valley.

    Is my right hon. Friend aware that there has been an 11·5 per cent. drop in unemployment in my constituency during the past year? This is largely due to the dramatic success of the Delyrt enterprise zone. Does my right hon. Friend agree that the Labour party's concern about unemployment might begin to carry some credibility if it changed its position on enterprise zones from outright hostility to unqualified support?

    I wholly agree with my hon. Friend, especially about the success of the Delyn enterprise zone. The other enterprise zones in Wales are also making a notable contribution. The enterprise zone in Swansea has created some 2,300 jobs since we set it up.

    Does the Secretary of State agree that one of the reasons for the high continuing unemployment in Wales is the fact that not enough people are employed in improving homes in bad condition? Is he not trying to conceal that fact by requiring local authority housing officers to sign a declaration under the Official Secrets Act in connection with a Welsh Office survey on housing conditions which is taking place at the moment?

    The hon. and learned Gentleman is quite wrong. As he knows, there has been a major programme of house renovation and improvement — indeed, the largest ever undertaken. We wish to have an accurate and full survey carried out. It is perfectly normal that those who are engaged in such operations should observe the normal rules of confidentiality until the report is prepared and that they should not go through the process that is all too common nowadays in Government, or around Government and local government, of leaking partial information before there is a complete and comprehensive report.

    Yts

    6.

    asked the Secretary of State for Wales what steps he plans to take to increase the proportion of young Welsh people who have participated in the YTS who go on from training to jobs.

    The progress on two-year YTS is very encouraging. Fifty-eight per cent. of YTS leavers in the first five months of 1986–87 went into jobs compared with 52 per cent. in the same period in 1985–86. The recent introduction of approved training organisation status and the training standards advisory service will consolidate the improvements already being made.

    I welcome that excellent news. How many young people in Wales have joined the YTS since last April? How many organisations have applied for approved training organisation status over the same period?

    As I told my hon. Friend, the progress has been encouraging. In Wales, over 27,000 young people have joined the YTS since April 1986 and some 188 organisations have applied for approved training organisation status.

    Is the Minister aware of the importance in the creation of opportunities for young people of community projects which are run by our churches and by organisations such as the National Association for the Care and Resettlement of Offenders? Is he aware of the proposed 10 per cent. cut in these projects and that the impact on these projects in terms of morale and development could be serious? Will the hon. Gentleman ask the MSC to review this policy?

    Of course, I am very much aware of the importance of the community programme, which caters for about 22,000 people in Wales. We intend to introduce the job training scheme for young people aged between 18 and 25. I am sure that some of those young people will come from the community programme and, therefore, the burden of financing the community programme should be less.

    Does my hon. Friend recall allegations by the Opposition that these schemes were nothing better than a means of concealing unemployment? My hon. Friend's answers show that for 58 per cent. of these people it was a gateway to subsequent employment.

    My hon. Friend is absolutely right. Moreover, the YTS is not just a gateway to employment—it also provides high-quality training. The aim of the new scheme, the JTS about which I spoke a moment ago, is to provide high-quality training as well. Training of this kind is now essential throughout working life.

    Regional Development Grant

    7.

    asked the Secretary of State for Wales how much Wales received in the form of regional development grants in 1979–80 and 1985–86.

    Payments of regional development grant in Wales were £50·7 million in 1979–80 and £84·4 million in 1985–86.

    Will the Secretary of State confirm that the effect of regional development grant has been reduced in terms of the areas of Wales that now benefit from it? Will he also confirm that the Government are the only Government in the EEC who block any firm or enterprise from receiving aid under article 15 of the European regional development fund?

    The effectiveness of regional assistance has not been reduced. It has been improved. The Welsh share of regional assistance rose from 17 per cent. in 1972 to 22 per cent. in 1985–86, showing that Wales has not suffered from the changes. Over the weekend, the shadow Secretary of State for Scotland complained that Wales was getting a greater share of grant than Scotland even though its working population is half that of Scotland. Clearly, Wales is doing extremely well out of these arrangements.

    Will my right hon. Friend consider re-extending development area status to Denbigh in view of the closure of North Wales hospital?

    I know that my hon. Friend is concerned about the proposal by the area health authority to close a hospital there. He will also know that consultations about that proposal is at an early stage. Clwyd county council is organising consultation with a wide body of interests, including the Welsh Development Agency, about the way of dealing with the situation if the hospital closure goes ahead.

    Job Training Scheme

    9.

    asked the Secretary of State for Wales how many training places are envisaged for Wales by the recently announced extension of the job training scheme.

    There are no firm targets for the new job training scheme, but funding is available for up to 6,020 places by autumn 1987. The Manpower Services Commission will proceed at a rate consistent with demand and the maintenance of quality.

    I am sure that my hon. Friend would agree that the most important part of the job training scheme is the quality of the training. Can he reassure me that there will be proper emphasis on the quality of training in the new scheme?

    Yes, I can give my hon. Friend that assurance. Trainees will he able to obtain qualifications from recognised examining and validating bodies. The managing agents will have to become approved training organisations, there will be a role for the training standards advisory Service, which is analogous to Her Majesty's Inspectorate in education, and there will be careful monitoring of performane and output.

    How much of the extra cost of this scheme has fallen on local authorities which already have very heavy burdens to bear?

    I do not know the details of the cost of the current scheme but, as I implied earlier, it is being introduced in conjunction with the community programme.

    Hospital Waiting Lists

    10.

    asked the Secretary of State for Wales what is the number of patients on hospital waiting lists in the Taff Ely area at the latest convenient date; and what were the comparable figures for the same dates in 1979 and 1983, respectively.

    The in-patient waiting lists for hospitals in the Taff Ely area at 30 September 1986 totalled 2,463. Comparable figures in 1979 and 1983 were 3,488 and 3,420 respectively. Relevant out-patient figures on 30 September 1986 totalled 4,842. The figures in 1979 and 1983 were 2,791 and 3,283.

    Does the Minister accept that if one combines in-patient and out-patient waiting lists, one finds that in the last seven years there has been no significant difference in the numbers of patients awaiting treatment in this area?

    When will he take a significant step towards cutting those waiting lists?

    First, I do not accept what the hon. Gentleman says. There has been a 25 per cent. increase in in-patients and a 16 per cent. increase in out-patients since 1979. As for the waiting list initiative, the hon. Gentleman will be aware that the mid-Glamorgan health authority has been able to bid and that we have been able to make funds available. Those funds are benefiting the Taff Ely area.

    As my constituency borders Taff Ely, may I suggest a single improvement to my hon. Friend? He will remember that at Welsh Question Time in December last he was able to tell me that it had been agreed that Hywel Rowlands, a convicted killer, at present in Whitchurche hospital, would be moved. Will my hon. Friend now join me in demanding that the Home Office should take urgent action to fulfil its promise?

    I am aware of my hon. Friend's concern but, as he knows, that is a matter for my right hon. Friend the Home Secretary.

    Bus Services

    11.

    asked the Secretary of State for Wales how many representations he has received from local authorities and individuals regarding the operation of bus services in Wales since deregulation.

    My right hon. Friend has received 16 representations. None of these came from local authorities.

    Is it not now clear that the prophets of woe have been confounded and that the combination of free competition with carefully targeted subsidy is providing Wales with a better bus service than it had before?

    My hon. Friend is absolutely right. The opponents of the policy, who predicted major problems, have been proved wrong, as the Government have always maintained that they would be.

    In the year before deregulation was introduced, 49 per cent. of the privately owned public service vehicles in Wales failed their annual test. Can the Minister give us confidence that as a result of deregulation that figure will be lower this year?

    I can certainly assure the hon. Gentleman that the Government take the safety aspect very seriously. All existing safety checks on buses will continue, and even more spot checks on vehicles in workshops will be undertaken. The Department of Transport has employed additional staff for its vehicle inspectorate to increase enforcement capacity, and new vehicle examiners have been appointed in Wales. Vehicles found to be seriously defective will not be allowed to operate.

    Does my hon. Friend agree that the Labour party's policy of closing the vehicle licence registration centre at Swansea will result in 4,000 people being unemployed in Wales?

    I noticed the Labour party's proposal to do away with vehicle excise duty and the licensing system and, incidentally, with the licensing centre at Swansea. However, I do not think that there is total agreement on the Opposition Benches as to the wisdom of that policy.

    In relation to the Government's deregulation policy for our bus services, what will be the future of National Welsh? Will the Government allow it to be handed over to a firm of asset strippers? That would certainly be detrimental to bus services in Wales.

    That is a matter for my right hon. Friend the Secretary of State for Transport. It would not be appropriate for me to comment on the bids that he has received. I assure the hon. Gentleman that my right hon. Friend will consider the bids very carefully before coming to a final view.

    Is my hon. Friend aware that one of the examples of greater service to the public since deregulation is a regular bus service between my constituency and his, carrying people to and from Ysbyty Gwynedd?

    Indeed, and there is plenty of scope for innovative services to be established. The rural transport innovation grant scheme is operating in Wales and it should be very helpful, particularly in rural areas.

    Housebuilding

    13.

    asked the Secretary of State for Wales how many new houses in the public sector were completed during 1986 in each of the following boroughs: Neath. Lliu Valley, Afan, Ognar, Taff Ely, Rhondda, Cynon Valley, Merthyr, Rhmney, Blaurau Gwent, IsIwyn and Tarfgaen; and if he will make a statement.

    The number of public sector completions in 1986 in the boroughs listed were 36, 48, 39, 40, 32, 12, 40, nil, 42, 38, 40 and 41 respectively.

    I compliment the officials at the Welsh Office on being able to interpret the rather remarkable spelling of some of the boroughs listed. Can the hon. Gentleman tell the House what those completions represent in money terms, as in the Grand Committee recently the Secretary of State referred to the very large resources being spent on housing in the valleys? Do not the figures given today for completions in the boroughs which form the valley communities shows a different picture from that which the Minister seeks to give?

    I am sure that my officials will welcome the kind comments that the hon. Gentleman has made about interpretation of the Order Paper. The hon. Gentleman is right to point out that expenditure on housing has increased and that housing allocations are up by 19 per cent. in the coming year. He will be aware that there is a serious problem with regard to older housing stock in the valleys. That is why we have launched our home improvement grant initiative. It is a matter of priorities and it is up to local authorities to decide how they should spend their allocations. Many of them have chosen to take advantage of the home improvement grant system.

    Duchy Of Lancaster

    Ministerial Duties

    21.

    asked the Chancellor of the Duchy of Lancaster how many hours in February he spent on his ministerial duties.

    Has the Chancellor considered a slightly less arduous job which would give him more time for moonlighting, despite the fact he receives more than £50 per hour wearing his present hat? Has he considered today's report from the Labour research department which suggests that perhaps the real reason why he and the Government take little action against the pimps and sharks in the City of London is that, in his other hat, as chairman of the Tory party, he gets a quarter of the company donations from that source?

    Order. The hon. Gentleman must relate his questions to the Chancellor's responsibilities for the Duchy of Lancaster.

    Once again, the hon. Gentleman is clearly labouring under one of the many misapprehensions that he probably shares with a number of his colleagues. My ministerial pay is £2,000 per year, which works at to rather less than £3 per hour. As ever, the hon. Gentleman has leapt from a wrong premise to an unfounded conclusion.

    As to the City of London, if the hon. Gentleman can cast his memory back that far he may recollect that I was the Secretary of State for Trade and Industry who introduced the White Paper which brought about much tougher sanctions in the City and much tighter regulatory procedures which will soon be in force generally. Some parts are already in force. That is why we are having success in prosecuting for insider trading, which was not an offence under the Government which the hon. Gentleman would have supported had he been in the House.

    My right hon. Friend will be aware that on 1 April the boundary commissioners start their work on the boundaries between metropolitan borough councils. When his official duties next take him to Manchester, will he tell the leader of Manchester city council that the people of Stockport are appalled at what is happening to that once proud city and do not want Manchester city council to encroach one inch into Stockport? With his usual delicacy of phrase, will he tell the leader of Manchester city council to turn his attentions elsewhere?

    I am not sure whether it is the duty of the Chancellor of the Duchy of Lancaster to get into such questions. However, I would always make it plain that the people of Stockport and, indeed, most of the people of Lancashire resent sharply the gross excesses perpetrated by Manchester city council. Indeed, I understand that the Leader of the Opposition also resents those excesses.

    Public Meetings

    24.

    asked the Chancellor of the Duchy of Lancaster how many public meetings he has addressed in the last month.

    In view of all the rosy optimism that Ministers, including the right hon. Gentleman, show about the economy—

    The hon. Member for Caernarfon (Mr. Wigley), who should have asked question No. 22, is probably still celebrating St. David's day.

    My answer to the hon. Member for Walsall, North (Mr. Winnick) is : in the course of my duties as Chancellor of the Duchy, none.

    In view of all the rosy optimism that Ministers show about the economy, how does the right hon. Gentleman explain the fact that whenever elections give people the opportunity the Tory vote virtually collapses, as it did at Greenwich? Is the right hon. Gentleman aware that many of his numerous political opponents hope that he will continue his job as party chairman, though not as Chancellor of the Duchy, for many years to come?

    I note what the hon. Gentleman says. Presumably it is an expression of his hope that the Labour party will shortly lose many more of the seats that it has held for more than 40 years. I share that hope.

    Is my right hon. Friend aware that he would be most welcome if he could find time to address a public meeting in my constituency of Suffolk, South? It would provide him with a valuable opportunity to tell my electorate, especially the farming community, which is prominent in my constituency, what a disastrous future it would have if Labour or SDP-Liberal policies were ever put into practice.

    Once again, I am not sure whether it would be the Chancellor of the Duchy of Lancaster speaking in Suffolk or one of my other incarnations. However, in any of my incarnations I should certainly tell the farmers about the Labour party's proposals to introduce rating of agricultural premises and the great split within the alliance between the half that wants to introduce the rating of agricultural land and the half that does not.

    Will the right hon. Gentleman tell us how many of his meetings in the past month dragged him away from the county palatine into Greenwich and how he would assess his success rate per meeting in Greenwich?

    The Chancellor of the Duchy did not attend any meetings in Greenwich, so once again the hon. and learned Gentleman's question has gone sadly adrift. I shall be happy to come to the Dispatch Box after the general election and tell the hon. and learned Gentleman about the statistics of the general election if he has the good fortune to be here.

    Church Commissioners

    Historic Buildings

    26.

    asked the hon. Member for Wokingham, as representing the Church Commissioners, what is his response to those parts of the House of Commons Environment Committee's report on historic buildings which relate to the responsibilities of the Church Commissioners.

    The Second Church Estates Commissioner, Representing the Church Commissioners
    (Sir William van Straubenzee)

    The commissioners welcome the references to redundant churches and the ecclesiastical exemption, which directly concern them. I know that the General Synod's working party on state aid for churches in use will be especially heartened by what the committee has recommended in relation to VAT on repairs.

    I welcome my hon. Friend's reply. Will he encourage his fellow commissioners to urge the deans of our cathedrals to accept that if they expect public money to help with the repair and maintenance of our glorious ecclesiastical architectural heritage, they must play their part in seeking more voluntary funds in the form of entrance fees from the millions of people who visit our cathedrals?

    I must make it clear that the commissioners have no direct responsibility for cathedrals. Speaking as an individual, I find it entirely acceptable when visiting cathedrals abroad to make a contribution to go in. There are a number of places in this country, such as St. George's at Windsor, where it has been entirely proper, right and accepted for many years that those going in, other than for services or to pray, should pay to do so.

    Church House (Sale)

    27.

    asked the hon. Member for Wokingham, as representing the Church Commissioners, what are the financial implications for the Commissioners of the proposed sale of Church House and the move by the General Synod and the Church House staff into the Commissioners' headquarters at Millbank.

    As my hon. Friend will know, the move of the Church House staff to separate accommodation adjacent to the commissioners' offices in Millbank was approved by the General Synod last week. The adaptation of Millbank for this purpose will cost around £4 million and is the most economical of all the options considered. The future of Church House, which the Synod will leave with sadness, will be the responsibility of the corporation of Church House.

    As staying at Church House would have cost £28·7 million and as there would possibly have been women ordained priests based at Church House, it is right that the Church of England organisation and General Synod staff should be moving to No. 1 Millbank. Does my hon. Friend agree that the savings are so incredible that that option was worth approving? Does he also agree that hiring the Queen Elizabeth II conference centre for Synods at £10,000 per year means that money will be saved to enable the church and the clergy to go out and attract more people to increase the flock which the church is losing, not because women may be ordained but because of modern services and the new Lord's Prayer?

    My hon. Friend has included a good many points in his question, with the skill that we have come to associate with him. There is no doubt that the most economical and sensible of the various options has been chosen and I look forward with the greatest pleasure to a building that will encompass in one set of rooms both my hon. Friend and women priests.

    As "Faith in the City" made much of what the Government could do to regenerate the inner cities, could not Church House and the Church Commissioners use this opportunity, instead of preaching to the Government, to set a n example by moving from Westminster to one of the northern cities?

    The hon. Gentleman with his close connection with these matters, will have noticed that the General Synod debated this with great care only last week—

    The hon. Gentleman says that it came to the wrong conclusion, but that would be the view of anyone in a minority. The decision was made by a group of people overwhelmingly drawn from outside London. They concluded—whether they were right or wrong is another matter — that it would not be appropriate for the General Synod to move out of London. I must make it quite clear that the commissioners have no responsibility, nor do they wish such responsibility, for decisions taken by the General Synod. However, the conclusion was taken after mature and careful debate.

    House Of Commons

    Telephone Messages

    28.

    asked the Lord Privy Seal if he is satisfied with present arrangements for hon. Members to receive telephone messages.

    Does my right hon. Friend accept that the advent of new technology, in this as in so many other matters, has led not to an improvement but to a deterioration in the message system for Members of Parliament? In particular, would it not be possible for the brilliant new telephones to have their red lights go out when hon. Members receive their messages and to display on their dials whether a telephone is branched through to hon. Member's secretaries?

    I am sorry that my hon. Friend has had this unhappy experience as about 600 to 700 messages are taken daily. I will refer the point to the communications manager who, no doubt, will be in touch with my hon. Friend.

    While the right hon. Gentleman is looking at the system of receiving messages, will he also consider a particular aspect of sending messages, especially those to the European Commission in Brussels? Notwithstanding the right hon. Gentleman's attitude to the EEC, will he allow hon. Members to make calls on parliamentary business at Parliament's expense—

    Order. The hon. Gentleman is wide of the question. The question is about receiving messages.

    I am answering the messages that I have received, Mr. Speaker. Will the right hon. Gentleman allow hon. Members to make calls to the European Commission on parliamentary business at Parliament's expense? Will he particularly consider allowing members of the Select Committee on European Legislation to have that privilege, along with members of other Committees?

    Although the question may have been somewhat wide of the original, the import was quite clear. The hon. Gentleman would like to have zero charge for something which is at present subject to a charge. I would have thought that, with the recent increase in secretarial and office allowances, he might feel that he could reasonably meet that kind of cost. I think that the matter has been considered recently, but I will look into it.

    Will my right hon. Friend consider another form of message which can be received via telephones — the transmission of the business of the House into our offices? How is his consideration of that matter coming along?

    That matter has been considered. A highly controversial judgment will have to be made, and it will certainly require the authority of the House.

    Will the Lord Privy Seal consider the other form of message that we get occasionally—the green card telling us that someone is here to see us—to see whether we can find a way of communicating news of their arrival much more quickly than at present, when often we hear much later that people were here, by which time they have gone?

    That is a somewhat controversial request. As I understand it, a report on radiopaging is being considered and will soon be available to the House.

    Is the Leader of the House aware that on one occasion it took two and a half hours for a telephone message to reach me informing me that my wife had been in a car accident? Such a delay is ludicrous. In those circumstances, will he consider two alternatives: first, a full paging system for Members of Parliament; and secondly, the idea that each Member's telephone should have an individual answering service which would allow us to put it on and to receive messages?

    I shall make those points to the communications manager, who will no doubt be in touch with the hon. Gentleman. As I have just announced, the report of the Services Committee on radiopaging will he available later this week.

    Opposition Parties (Assistance)

    29.

    asked the Lord Privy Seal, pursuant to his answer to the hon. Member for Leicester, East of 9 February, Official Report, columns 59–60, if he has any plans to review the arrangements under which financial assistance is provided to Opposition parties within the House; and if he will make a statement.

    As I told the House, I expect that, following past practice, these arrangements are likely to be reviewed later this year or next.

    I welcome my right hon. Friend"s statement that there will be a review, especially since £630,000 was allocated to Opposition parties in 1986. Is my right hon. Friend aware that the Official Unionists receive £20,397, that the year before they received £19,889 and that they have one Member fewer than they did a year ago? The Democratic Unionists receive £6,788·75. With one right honourable exception, Unionist Members are not taking part in Northern Ireland business—which I can understand — or in any other parliamentary business. It is strange that they are claiming this money, especially as they voted against it. Could it not be interpreted that they are using the money to campaign against the Anglo-Irish agreement?

    I was aware of the figures because I supplied them to my hon. Friend. He should remember that each qualifying party is required to certify to the Accounting Officer of the House that the expenses for which reimbursement is claimed have been expended exclusively in relation to that party's parliamentary business. Therefore, the claims have been made on the authority of the party concerned. If my hon. Friend thinks that the arrangement is unsatisfactory, he should make that point when the matter is next before the House.

    Will the Lord Privy Seal also consider the allocation of civil servants to Whips' offices other than those of the official Opposition, especially as four are provided to the Labour Opposition entirely at taxpayers' expense and Short money—something about which the hon. Member for Leicester, East (Mr. Bruinvels) will be concerned — has been frozen at the levels established during the lifetime of this Parliament? Will he confirm that Opposition funding will be increased in the aftermath of the general election?

    The hon. Gentleman will be the first to concede that the Civil Service arrangements to which he refers predated the advent of Short money and were not absorbed by the existence of Short money, but those arrangements can, of course, be considered when they come up for renewal.

    Will my right hon. Friend consider increasing the support available to the Liberal party in view of a recent report by that party claiming that, for example, my hon. Friend the Member for Conwy (Mr. Roberts) had failed to vote against the Government on one occasion? It would be helpful if the Liberal party had enough resources to discover that my hon. Friend is a Minister.

    Education that is self-financed is much more likely to be taken to heart than that which is publicly financed.

    Does the Lord Privy Seal agree that if a democracy is to survive the Opposition should be properly funded so that the right and proper questions can be asked of the Government, thus probing Government policies in the interests of democracy?

    The hon. Gentleman will recognise that there was a sharp division about whether such public funding should be provided, and that the opposition to it was split across the conventional divisions in the House. However, I happen to agree with the hon. Gentleman.

    Wales

    Town And Country Planning Controls

    14.

    asked the Secretary of State for Wales what is his estimate of the proportion of land in the Principality on which special town and country planning controls operate, with the purpose of protecting the environment.

    About 25 per cent. of Wales, comprising mainly national parks and areas of outstanding natural beauty, is covered by special development orders. Other controls covering these and other areas of land apply for specific environmental protection purposes.

    I welcome the relatively high proportion of land that has special protection. Will my hon. Friend assure the House that the protection of the environment will remain the dominant consideration in any future planning applications in such areas, particularly in the light of the recent consultation paper about the future of agricultural land use?

    I am delighted to give my hon. Friend that assurance. The need to protect the countryside from uncontrolled development remains as strong as ever. The special protection afforded to national parks, areas of outstanding natural beauty and other areas of special importance will be fully maintained.

    Teachers' Pay And Conditions

    3.30 pm

    With permission, Mr. Speaker, I wish to make a statement about teachers' pay and conditions of employment in England and Wales.

    The Teachers' Pay and Conditions Act has now received Royal Assent. The Government want school teachers to receive an average increase of 16·4 per cent., half with effect from 1 January 1987 and half on 1 October 1987. I am today sending a draft order for this purpose to those whom I am required to consult under the Act seeking their comments. The order covers the 1 January pay increase and sets out the conditions which will beome part of school teachers' contracts of employment. I am placing copies of the consultation letter and attachments in the Vote Office and Printed Paper Office.

    I have considered carefully the responses to the proposals for teachers' pay and conditions which I set out in October, and to those which emerged from the Advisory, Conciliation and Arbitration Service discussions. I have also taken into account the settlement in Scotland, and I am now bringing forward revised proposals to apply in full from 1 October. The main features are, first, the top of the basic salary scale will increase from £12,700 a year to £13,300 a year, which is £600 higher than the figure in my October proposals. Secondly, there will be five levels of incentive allowances ranging from £500 to £4,200. Thirdly, the 105,000 teachers on scales 3 and 4 and the senior teachers' scale will receive allowances of £1,000, £3,000 and £4,200 respectively. Fourthly, there will be scope for 25,000 new promotions in October 1987, with an increase in the number of teachers qualifying for an allowance to about 165,000 in 1990. This is 20,000 more incentive posts than in my previous proposals. Fifthly, there are no changes to my original proposals for heads and deputies.

    These proposals recognise the view put by the teacher unions in support of a basic salary scale, and I have moved towards their position. I have, however, retained a pay structure which provides good differentials and I have increased the number of incentive posts so that the proportion of teachers in them will rise to 55 per cent. overall in 1990. The order also covers teachers in special schools and unqualified teachers. I recognise the distinctive position of teachers in special schools, and the basic allowance for them will be £1,000 as against £855 in the ACAS proposals.

    In my statement on 30 October I said that the increased expenditure of £608 million on teachers' pay must be matched by a clear definition of school teachers' duties and conditions of employment. On 27 November, I recognised the useful progress in the ACAS discussions on the definition of a teacher's job and on the length of the teachers' working year. The list of teachers' duties set out in the draft order are based closely on the ACAS proposals. The order provides for a working year of 195 days, of which five days are beyond the pupil year, and states that a teacher may be required to work for 1,265 hours a year at the direction of the headteacher. These requirements are consistent with the ACAS proposals.

    The ACAS document proposed levels of cover for absent teachers but recognised that this depended both on finance and the availability of suitably qualified teachers. The Government believe that the ACAS proposals would have created difficulties for many local authorities. We have therefore decided that teachers should not normally be required to provide cover after a colleague has been absent for three consecutive days, nor to provide cover in the case of planned absences of more than three consecutive days. The question of cover will be among the matters to be taken into consideration in the consultations that I shall shortly be initiating about the numbers of school teachers needed and how their time can be used to best advantage.

    I am asking for responses to my consultative letter by Monday 23 March at the latest. Ministers or my officials will be willing to meet those who are being consulted. I regard it as essential for these discussions to be completed before the end of this month. We can then lay the order before the Easter recess so that teachers will receive their back pay without delay.

    I wish to confirm that the Government propose to increase education GREs in England and Wales by £118 million for 1986–87 and £490 million for 1987–88, with an increase in block grant to local authorities of £56 million and £200 million for those years. On that basis the local authority associations have already been sent information about the likely change in individual GREs and block grant entitlements. Formal consultations will he started shortly.

    These proposals will improve the career prospects of teachers and give local management new scope to raise the quality of education. Teachers are being given a substantial pay increase combined with a clear definition of their responsibilities. I believe that parents will expect teachers to respond by giving their commitment to uninterrupted and effective education for all our nation's children.

    Does the Secretary of State believe that his statement represents a genuine attempt to settle the teachers' dispute, or is it yet another round in the Government's war against the teachers?

    I welcome the fact that the Secretary of State has modified the proposals that he announced in November and that he has at last recognised the need to offer all classroom teachers an improved basic salary scale. Does he not realise that his rejection of the ACAS agreement, which was freely agreed between employers and the teachers; his legislation, which has been through this House and another place, to remove teachers' bargaining rights; and now his decision to impose a settlement on the teachers, have left the prospect of a lasting peace in our schools still uncertain and that, by imposing a settlement, the Government are embarking on a dangerous gamble which, sadly — I regret it very much — could lead to further disruption in our schools?

    As regards imposition, yes, I am imposing a pay increase which will mean that teachers have an average rise of 25 per cent. over 18 months. That is what I am imposing.

    I do not agree that this is a constitutional outrage. The hon. Gentleman will know that I have tried hard to find a way through during the past three months. This is a genuine attempt. I have moved closer to the union stance. It is deeply regrettable that the teacher unions did not move at all towards the Government's position.

    Perhaps I might say something about causing further disruption. It is not I who can cause disruption in our schools. Only the leaders of the teacher unions can seek to take out their grievancies on children in this way. Despite the antics of the two cold war warriors of the main teacher unions, I do not believe that the hearts of teachers will be in further disruption. The settlement that I am implementing is fair to the teachers, to parents, to ratepayers and, most of all, to our children. I believe that most teachers who have taken action during the past few years have done so with a very heavy heart and that, with the better pay and prospects which this settlement provides, they will want to get on with their job in peace.

    Is my right hon. Friend aware that his statement will be warmly welcomed by teachers and parents and that, far from being another round in the Government's war against teachers, it is a further sign of the Government's good intentions? Will my right hon. Friend confirm that roughly 165,000 teachers will be in incentive posts by about 1990? How does he intend to publicise this good news to schools and teachers so that they can take that information carefully into account when deciding what action to take?

    I can confirm what my hon. Friend has said. One of the features of my latest proposals is an increase in the number of incentive posts by 25,000 from 1 October this year. Many of those posts will go to scale 1 and scale 2 teachers, as it became clear in the negotiations and consultations that I have had that one group which did not do very well were those at the top of scale 2. They will be able to benefit from the higher number of incentive posts.

    I am one of those who believe that good news travels by itself. However, I shall help it on its way by writing tonight to all head teachers setting out my proposals, and will enclose a copy of a booklet that sets out the proposals — they are very complicated. On Wednesday, I shall again be taking space in the national press to set out the proposals so that everyone will be able to see the advantage of them.

    While I welcome the Secretary of State's movement, I recognise that this is a gamble by the Government. Does the Secretary of State appreciate that many teachers regard the right to negotiate pay and conditions as being just as important as their level of pay and remuneration? In the long term, is not the need for an independent pay body essential? If we are to avoid this kind of trench warfare, which has led to so much loss of morale, falling standards, many lost days by teachers and pupils alike and so much hurt to parents, is not a mechanism required?

    On my frequent visits to schools, I see many dedicated, committed and hard-working teachers, who, I am sure, will respond to the higher rewards and better prospects that I am bringing forward. I do not sense any urge to revive disruption.

    Future negotiating rights were debated last Thursday, when the official spokesman for the Liberal party was in his place and put forward the case for an independent review body. I have made it clear that the advisory committee is an interim measure. We need a cooling-off period or breathing space to try to resolve the differences. I made it clear on Thursday, and I reiterate, that I am willing to open negotiations with the various parties to find a long-term solution. However, I ask the House to bear in mind that this move is against the background of a negotiating process that has become thoroughly discredited. That was the Burnham process, which, by the Royal Assent announced at the beginning of Question Time today, is now at an end.

    Is my right hon. Friend aware that under his original proposals, many teachers were worried that there appeared to be too many rewards going to teachers who were promoted out of the classroom and away from the art of teaching? Will he confirm that even then, but especially now, under the adjustment in his proposals announced today, there is ample reward for the good teacher who wishes to remain in the classroom?

    I am willing to confirm that. The position on incentives is that the five allowances which I have announced, which is an increase over the last proposals, will go for additional responsibilities—for example, a head of a department—for where there is a generally recognised shortage of skills, for recruitment to posts difficult to fill and for good classroom performance. We want to reward the teacher who does not wish to become a head of department but wishes to remain in the classroom teaching. The incentive allowances will be available to such teachers.

    Will the Secretary of State understand that, while he has made some movement towards the unions' position, anger will remain in the teaching profession until negotiating rights are fully restored? Will he also understand that in many places, including Bradford, teachers are concerned about pupil-teacher ratios, the availability of equipment and the fabric of schools? What will be the maximum cost to individual local authorities as a result of the settlement?

    When we came into office in 1979, the pupil-teacher ratio was 18·9:1. It has now fallen to 17·6:1 and by 1990 it is planned to fall to 17·1:1. These are historically low figures. At the same time, the proportion of classes in secondary schools with more than 33 pupils has fallen from over 2 per cent. to 1·1 per cent. The average class size now is 21. This shows clearly the Government's commitment to providing resources for the education system.

    I reiterate my point about finding a better long-term answer beyond the interim advisory committee. When I met Mr. Smithers, Mr. Jarvis and Mr. Willis last week, they said that for the longer term they could deliver a negotiating forum that would act responsibly and not lead to the divisions and disputes of Burnham or to disruption in the classroom. I hope that the first token of their good intent will not be a call for strikes and stoppages, because that would bode ill for their aspirations.

    My right hon. Friend's statement proves that constructive consultation can work, and nothing that he said has given any further excuse for industrial action. However. is he aware that concern has been expressed that his proposed settlement may favour secondary school teachers at the expense of primary school teachers, who see little prospects for promotion and a general levelling down of scales? What can he tell us to assure primary school teachers that they will not get the rough end of the stick in his proposed settlement?

    Once again, I pay tribute to the vast majority of teachers in primary schools, who do an outstanding job. I can give my hon. Friend some reassurance on the point that he raised. The first two levels of incentive allowance will be available in all schools so that the outstanding classroom teacher in the small primary school can be rewarded. In larger primary schools, the £2,000 allowance will also be introduced over three years to give a maximum salary of £15,300 for teachers other than heads or deputies. As from October this year, there will be 30,000 incentive allowances, rising to 55,000 in September 1990.

    While it is obvious that everyone will welcome the Government's move towards increasing the quality of teaching in our schools, does the Secretary of State accept that the conditions in the new city technology colleges, which the Government are setting up and which encourage payments over the odds for good teachers, should apply also to the inner city schools, which will still suffer because the rate of pay in them will not be sufficiently high to attract the good teachers whom those schools desperately need?

    The hon. Gentleman is far too pessimistic. I have made it clear that the money for the city technology colleges will be extra, over and above the money available for the State maintenance education system. I was glad to go up to Solihull in the west midlands last week to announce the first city technology college, with support from the Hanson Trust and Lucas industries. In due course, I hope to visit many other cities and towns and bring them good news about the city technology colleges.

    Does my right hon. Friend agree that, although record pupil-teacher ratios may be popular, the crucial variable in education is teacher quality, and that his proposals offer an opportunity for well-motivated and properly rewarded teachers and a decent career structure? It is now up to pupils, parents and the professions to make a success of those proposals and offer our children a period of uninterrupted education.

    I warmly agree with what my hon. Friend has just said. The thrust of the proposals has been to try to improve the professional standing and status of teachers by better remuneration. For example, a good honours graduate would enter the profession at a salary of £8,500, which is £700 or £800 more, and he or she would rise, through several annual increments, to a salary of £13,300. That is an increase of 26 per cent. over what a teacher can now expect without promotion and it will be reached in a shorter time. That represents a substantial improvement.

    I should like to reinforce my hon. Friend's comments. We must attract graduates of a higher and better quality into the teaching profession—that is no reflection on the existing profession. The pay scales and the rewards that I am announcing today will go a long way towards doing that.

    Does the Secretary of State agree, while he is in his fairy godmother mood, that teachers' wages are now becoming commensurate with their rightful position, as they were between the two world wars? Does he agree that that seems—perhaps I am being cynical—to have some link with the fact that this is an election year? Perhaps if we had another election next year we could eventually reach a proper payment for the teachers?

    I hope that the hon. Gentleman will speed the orders on their way because I am sure that, election or not, he would not want to delay the back pay to teachers, as it could be quite substantial. For example, if it is paid in the May pay packet, the deputy head in group 4 would qualify for £625 and a senior teacher for £450 in back pay. I am sure that that is what the teachers will want.

    Given that the one thing on which most objective observers agree, regardless of their political credentials, is that the Burnham system was wholly discredited, and given the urgency with which it was necessary to replace that system, may I congratulate my right hon. Friend on the package that he has now presented to teachers? May I invite him to stress that the present arrangements for negotiation are interim arrangements? Will he tell the House what plans he has to produce a substantive arrangement for the negotiation of teachers' salaries in the future, to lead on from the excellent package that he has presented to the House today?

    I reinforce what I said earlier, that the proposals are of an interim nature. That is their essence. There will be consultation. I shall appoint the advisory committee later in the year. There is ample opportunity for unions to make representations to it. I have already given clear undertakings that when I receive recommendations from the advisory committee, there will be widespread consultation with all the interested parties, which will tend to have the character of negotiations. Apart from that—I reaffirm this—we want to move to a system that is more satisfactory in the long term. I shall do all that I can in the coming months to do that. However, I emphasise that I believe that the unions need a cooling-off period and a breathing space to try to get over the bitterness—I witnessed great bitterness—of the past few months.

    Is the Secretary of State aware that the wholly inadequate settlement that he intends to impose from today will not lead to the depoliticisation of the teachers' struggle but will only prolong, not remove, teachers' hostility? This is particularly so because, by taking this action, the right hon. Gentleman removes the basic trade union right of negotiation. If, in response to my hon. Friend the Member for Bradford, West (Mr. Madden), he is looking for a target for pupil-teacher ratios for local authorities to aim at, we shall settle for Eton's—8:1.

    If the Bill that was debated in the House on Thursday last week was a great constitutional outrage, removing negotiating rights, I am sorry that the hon. Gentleman was not in the Chamber. Not only was the hon. Gentleman not in the Chamber, but the debate packed up after three hours. It collapsed. So much for that great constitutional outrage. That was an opportunity for the Opposition to take the Bill right through the night and, indeed, into the next day, if need be. The hon. Gentleman's outrage is an outrage of rhetoric, not reality.

    Will my right hon. Friend confirm that the incentive payments that he has announced, which will be widely welcomed, will rest on assessment of teachers' capacity, because continuous assessment is just as important for teachers as for pupils?

    I very much hope that during the next year it will be possible to establish a system of appraisal for teachers. Six pilot projects are going aheaad at the moment, and that is very important. With regard to the level of incentives that are now available, this is the first occasion on which some members of the teaching profession will be earning over £30,000 a year.

    The Secretary of State announced that he would write to head teachers explaining the effects of his announcement. Is it the practice of the Department, through Darlington, to write to retired teachers to explain the effect on them? If not, will the right hon. Gentleman do that?

    I did not have that in mind, but I shall certainly consider what the right hon. Gentleman has said.

    Will my right hon. Friend confirm that, if some of the teachers are misguided enough to follow the advice that some Opposition Members would give them, and seek to continue industrial action, they will lose 1/195th of their pay every time they go on strike rather than 1/365th?

    I shall need notice of the fractions. I hope, as I have said several times from the Dispatch Box today, that there will not be further disruption. An advertisement has been put in the press by the Professional Association of Teachers, which calls upon all teachers

    "to reject industrial action at this time"
    PAT says that teachers organisations should :
    "Encourage teachers to adopt a responsible attitude to contractual conditions of service, since they will be based upon conditions agreed in recent ACAS negotiations."
    I thoroughly applaud that line.

    Order. We have an important Welsh debate today. I shall allow questions to continue for another six minutes, until 4 o'clock, and then we must move on.

    Will my Friend draw the attention to the House to what teachers' pay was in 1979 and what it will be when this increase is given to them?

    There will have been a substantial increase in real terms in teacher's pay when these proposals work through in October 1987. It almost seems indecent to bring a little party politics into this exchange, but the big drop in take-home pay for teachers occurred in the lifetime of the Labour Government.

    Will my right hon. Friend accept that his action in putting these generous proposals out to consultation so promptly after Royal Assent will be widely received in the teaching profession as evidence of his good will towards teachers? Will he say a little more about how his proposals will affect teachers in special schools, who do an important job, and who felt that they were undervalued in the ACAS deal?

    There are some 16,000 teachers in special schools. Any hon. Member who has visited a special school in his constituency will know of the enormous devotion and dedication which is shown by those teachers. It is inspiring to see the dedication that they show in dealing with children who are severely handicapped. I recognise the contribution that they make to our society. My proposals give to teachers on scales 1, 2 and 3 in special schools a £1,000 advantage at October 1987 over teachers in ordinary schools. That is an increase from the previous proposal of £855.

    Will my right hon. Friend accept that his accent on the communication of this good news is crucial to its acceptance? Will he accept that many of the difficulties of the past have occurred because of lack of good communication due to the long chain of command from himself to the teacher in his class? Will he assure the House that he will pay particular attention in future to communications on pay and assessment so as to reassure teachers of the temporary nature of the Act that now exists to guide their pay?

    I most certainly will do that. The other point in the PAT advertisement is that Sir John Wordie, chairman of the Burnham committee, says of the three years during which the interim advisory committee is scheduled to exist, that the unions ought to:

    "use to the best advantage that period to produce a really good form of collective bargaining."
    I re-emphasise that.

    As to spreading the good news, I shall be writing to all hon. Members tonight giving them the basic facts that I have given to the House today, together with a booklet and some information, which. I shall encourage all hon. Members to pass on to their constituents.

    Does my right hon. Friend agree that his proposals will be widely welcomed by parents and taxpayers throughout the country—who will have to foot the bill—as evidence of the Government's generous approach? They will not take lightly to those teachers who abuse the trust placed in them and cause further disruption in schools. Is my right hon. Friend able to tell the House whether he has been able to persuade the local authorities that his deal is a good one?

    On the latter point, I had a meeting this morning with Councillor Pearman and other representatives of the local authority leaders. When talking about the willingness of local authorities to co-operate and implement the proposals, he said—these were the words I took down:

    "the duty of LEAs to implement the law of the land. We shall implement it.
    To suggest otherwise would be to play very dangerous games with the future of our children."

    Councillor Pearman wishes to do everything that is possible to make education effective for our young people. I think that I speak for all sides of the House when I say that I welcome that. I hope that we will be moving to a better set of arrangements as a result of this offer, and I was glad to see that the local education authorities will play their part.

    My right hon. Friend is to be warmly congratulated on the statement, especially on the improvement in the basic salary scale, while retaining substantial incentives. Is it not amazing that the leaders of some unions still threaten disruption in the face of what must be one of the most generous pay offers ever made to teachers, particularly when set against a background of low inflation and reductions in income tax? Since most parents are likely to receive rather less generous pay rises than 25 per cent. over two years, should not parents now impress upon the teachers the need not to disrupt education and to put children's education first? Surely disruption now will be an unparalleled case of greed and irresponsibility.

    I very much share my hon. Friend's comment on that. The Bill allows for a new beginning in our schools and a necessary breathing space on pay and negotiating arrangements. I believe that teachers will recognise the need for that and will welcome the pay increases in the new salary structure. I do not believe that teachers like disrupting schools. I am sure that they put the interests of the children first. On my hon. Friend's last point, parents will not understand teachers who disupt children's education when they have won pay increases amounting to an average of 25 per cent. over 18 months.

    Order. I am sorry that it has not been possible to call all the hon. Members who have risen, but I shall endeavour to give them precedence when the matter is next discussed.

    Ec (Expenditure Proposals)

    4 pm

    I seek leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter which should have urgent consideration and which appears to me to be one of the most serious and urgent issues which has arisen for years in relation to the rights of the House of Commons to control spending, namely,

    "the decision of the Council of Ministers to proceed today with the discussion of a Commission proposal to approve a £2·3 billion spending programme when no resources are available within the legal budget limits and when the Court of Auditors of the European Community has stated that the expenditure would be unlawful."

    This is not part of the continuing debate on EEC spending which goes on all the time in the House, its Committees and elsewhere. The issue is simply that, although previous modest excess spending has always been carefully cloaked in legality and matched by policies at least designed to claw back spending the next year, the proposal today is for a massive spending increase without any legal resources whatsoever being available to cover the spending. In addition, there is not even a pretence that policies recently agreed will produce savings to finance even a fraction of the spending which falls, in theory, to be repaid in 1989 or thereafter. That is why the Court of Auditors has taken the unusual step of describing the spending plan as illegal before today's meeting.

    If the Council, despite this advice, approves the package, it will not just mean that millions of tonnes of butter will be cascaded on to the world market at knockdown prices. It will mean that the Council of Ministers has taken upon itself the power to fix EEC spending at whatever level it considers appropriate. Of course, there are some who would take the view that this would be a positive step, just as there are others who would feel that, without spending limits, any hope of EEC reform would disappear. We obviously cannot consider the merits of any such proposal in an application for a debate. I argue, however, that the decision should be made by this House and by other Parliaments of the European Community. It is not the kind of decision that should be made by the Council of Ministers, particularly when the auditors have stated categorically that the action would be illegal without a new treaty.

    The importance of the issue is clear. The urgency is created by the matter being on the Council's agenda today. I therefore hope, Mr. Speaker, that you will allow a debate on the very narrow, but important, subject which I have proposed.

    The hon. Member asks leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he believes should have urgent consideration, namely,

    "the decision of the Council of Ministers to proceed with the discussion of a Commission proposal when the Court of Auditors has stated that the expenditure would be unlawful."

    I have listened with great care to what the hon. Member has said. As he knows, my sole duty in considering an application under Standing Order No. 20 is to decide whether it should be given priority over the orders set down for today or tomorrow. I regret that I cannot find that the matter which the hon. Member has raised meets all the criteria laid down in the standing order. I cannot, therefore, submit his application to the House.

    Statutory Instruments, &C

    Ordered,

    That the draft Plugs and Sockets etc. (Safety) Regulations 1987 be referred to a Standing Committee on Statutory Instruments, &c.— [Mr. Lennox-Boyd.]

    Welsh Affairs

    Motion made, and Question proposed, That this House do now adjourn.— [Mr. Lennox-Boyd]

    4.4 pm

    Perhaps it would be helpful if, at the outset and to avoid too many interventions, I say that I shall speak on a considerable number of topics, including the Severn crossing, the Trafalger House proposal and the Avana project at Merthyr.

    The annual Welsh debate held this year on the day after St. David's day is traditionally wide-ranging. It will have the length although not, I fear, quite the epic grandeur of last Saturday's magnificent performance by the Welsh National Opera of "The Trojans." Some may consider it foolish or ambitious to attempt to set our party arguments and our immediate preoccupations against the prospective of history. I do so because I believe that Wales has arrived at one of those turning points of history which, even if not recognised at the time, are later seen to have changed the way in which we think and live.

    One such period was the time when people moved from the countryside and, from both inside and outside the Principality, flooded into the industrial valleys, doubling the population of Wales in 50 years. Much more recently, we have seen a similar phenomenon in modern America. In 1920, 40 per cent. of all Americans lived and worked on farms. In 1920, in Wales about 380,000 men worked in mining and the metal-making industries, about 40 per cent. of male employment. By 1960, that figure had reduced to around 200,000, and the decline continued steadily under successive Governments — Labour and Conservative—and had little to do with party policy. By 1976, coal and steel employment had halved again to around 100,000. Today, it is about 36,000, 10 per cent. of the total in 1920 and only 3 per cent. of the total work force.

    The historical fact with which we are confronted is that the Welsh dependence on the old basic industries is over and the long-agonised decline from the peak of 1921 with all its painful social consequences is also over. We have entered a new period in which, though coal and steel will continue to play an important role, the Welsh economy will advance and grow on a broad base that will consist of the old industries modernised and brought up to date by modern technology, the new industries and the services needed by the 21st century man. That growth, which is already taking place, will involve a massive rebuilding and refurbishment of our cities and urban communities, a new diversity of employment in the countryside and the removal of the social and environmental evils that have scarred the lives of our people during the years of decline. It is a time for looking forward with confidence, not backwards with pessimism—a change that on its own will do much to transform our prospects.

    I say that coal and steel will continue to play an important role. Let me first say a word about each.

    The number of mines in Wales has halved and the number of men who work in them has almost halved since the coal strike ended. Although very generous redundancy terms and offers of alternative employment have eased the transition for individuals, the effect on the communities involved has been traumatic. For the core of the industry that we now have, the prospects are better than for many, many years. Productivity has almost doubled and nearly every pit has had recent investment in heavy duty face equipment. The board's announcement last June of the new Carway Fawr drift mine at Cynheidre provided firm evidence of the fact that good results create a climate of confidence in which really major investment can take place. Some £100 million has been committed in the South Wales coalfield over the past two years. More recently the board of British Coal has announced its wish to go ahead with the Margam project to create nearly 800 mining jobs, with 700 jobs during the construction period. It is the most exciting new project in south Wales mining for many years, and I very much hope that the negotiations that are now taking place between British Coal and the unions will allow it to go forward to become a highly productive coal mine. British Coal is exploring various options for the most appropriate financing of the scheme and is seeking support from the European Coal and Steel Community. British Coal has not yet submitted its formal proposal to my right hon. Friend the Secretary of State for Energy, but it is discussing the funding with him.

    The Welsh steel industry has also received very large scale investment. In the financial year 1985–86, the British Steel Corporation made its first net profit for 11 years. Llanwern and Port Talbot are now acknowledged to be among the most modern and efficient steelworks in Europe. At Port Talbot the £171 million hot strip mill was opened by the Prince and Princess of Wales last June, and work on the Concast plant at Llanwern is proceeding well towards commissioning next year. At Shotton I opened the £30 million Galvalume project last summer, and further large investment is now being made. At Trostre tin plate works £50 million is being spent on a second continuous annealing line. All this shows that British Steel is determined to provide the modern technology which, combined with the improvements in performance and productivity, will enable it to maintain its competitive position in the market.

    Against a background of unemployment figures that are still very high, I shall explain why I am increasingly confident about the future of the Welsh economy. Despite the loss of some 67,000 jobs in coal and steel since 1975, unemployment in Wales rose less severely in the period up to early 1986 than in the United Kingdom as a whole. Since then it has fallen faster and further than elsewhere. That fact, the new industries and services and the increase in the number of self-employed, together with the very large share of United Kingdom inward investment taken by Wales—consistently around 20 per cent. of the total — have begun to act as an effective cushion to the disproportionate size of our losses in coal and steel.

    Those are the statistics. Up and down Wales new industrial estates, new factories, and new firms demonstrate the nature of the change.

    Since this debate a year ago the evidence has multiplied and the pace of recovery has accelerated. Unemployment has fallen in Wales for seven months in a row and in nine out of the last 10 months. I am glad to say that there are 13,000 fewer unemployed people in the headline total than there were at this time last year, and that the adjusted figure is over 11,000 below the peak figure recorded in March last year. In last year's debate the hon. Member for Alyn and Deeside (Mr. Jones) gave the male unemployment figures for a long list of travel-to-work areas and constituencies. While in all these places the figures are still too high, I am glad to report that in every one they are lower than they were a year ago. The improvement is not confined to particular parts of Wales, but is widespread. There is every reason to think that it will continue.

    The British economy is now growing faster than the economies in almost every other developed country, there has been a staggering improvement in production performance, we are no longer dependent on deficit finance and capital goods imports and industrial investment are all rising strongly. The Confederation of British Industry, the chambers of commerce and firms throughout Wales have all expressed confidence about their prospects. A number of independent assessments confirm how widespread is this improvement. The CBI Welsh quarterly trends survey published in January reveals a sharp increase in business optimism.

    The volume of orders is the highest for 10 years, the number of firms working below capacity has fallen sharply, and investment in plant and machinery is rising.

    The evidence that Wales is entering a period of industrial expansion is reinforced by the remarkable statistics for the allocation of factories by Government agencies. In 1984 the figure was 1·8 million sq ft, in 1985 it was just over 2 million sq ft and in 1986 it was over 2·5 million sq ft. As a result of the high level of demand, the vacanacy rate for the Welsh Development Agency's estate has dipped to around 9 per cent. The highest figure for factory allocations under Labour was 1·125 million sq ft—well under half this year's total. In order to build on this success, I have told the WDA to plan on the basis of having £93 million available for its factory building programme over the next three years. The agency's chairman launched the programme formally earlier today. When the new programme is taken into account, the WDA will provide about 1 million sq ft of factory space a year in each of the next three years. This will virtually double the rate of completions delivered in any year since 1976 — apart from those affected by the special measures taken in the early 1980s to mitigate the steel closures.

    The year 1986–87 was also a record year for factory building by Mid Wales Development. A major initiative was the completion of the Laura Ashley factory at Newtown. With that project behind it and with more receipts, the board will have additional resources and flexibility to carry forward its factory programme and its other activities.

    Clwyd is a part of Wales that offers striking evidence of the transformation that is taking place and, within it, Delyn is a particularly good example of what can be achieved if Government, local authorities and the public sector co-operate effectively together. Since May 1979, Welsh Office support through job-related regional assistance in Clwyd involved projects with investment costs of over £670 million, with the promise of around 17,000 new jobs and the safeguarding of over 4,500 others. We have specially directed urban programme resources towards economic regeneration of the area.

    Some £5 million has been directed to developing the Delyn enterprise zone. Already some 85 firms have located in the zone, of which 62 have moved in since designation in July 1983. Over half the jobs now being provided are new, and 86 per cent. of them are in manufacturing. Remarkable progress has been made in replacing the jobs lost through the closure of the Courtaulds plants at Greenfields and Wrexham.

    We have also directed resources to the improvement of the Wrexham industrial estate and for infrastructure development at the Wrexham technology park and the Redwither industrial estate.

    All this work is bringing new industry in substantial quantities, and this is in addition to major enterprises which are well established and growing. A number of recent announcements show that the transformation of the industrial base is gathering pace. The announcements were : Christie-Tyler 160 new jobs: Warwick International at Mostyn over 250 new jobs; Fibre Flame up to 300 new jobs; and Hurrall 60 jobs. Today, CP Pharmaceuticals announced a £4 million expansion which is expected to create more than 100 extra jobs.

    It is not just Clwyd. Between 1979–80 and 1987–88 urban programme resources amounting to some £34 million were allocated to the counties of Gwynedd and Clwyd together. That is about 25 per cent. of the total for the whole of Wales.

    All this is evidence that there is no north-south divide in Wales, either in terms of what can be achieved or in terms of the Government's commitment. The capital programme that I have described is only part of what is being done to improve the economic infrastructure of north Wales. A road programme larger than ever before is improving the access to the English motorway system, the routes north and south and, above all, westwards along the A55 where the new dual carriageway between Chester and Bangor is now two thirds completed and journey times have been dramatically reduced in the last year. Work has started on the Conwy crossing and the Penmaenbach tunnel. This new A55 dual carriageway will bring the whole north Wales coastal strip, Gwynedd and Anglesey, within easy driving distance of Manchester airport and the heart of industrial Britain.

    The right hon. Gentleman says that there is no north-south divide in Wales. Does he not agree that Wales is clearly a victim of the same factors that divide the north of England from the south? Will he confirm that, in terms of gross domestic product per head, Wales still lags behind almost every other region of the United Kingdom?

    In exactly those terms the growth in Wales in gross domestic product per head during the time of this Government has been faster than in any part of the United Kingdom except East Anglia. The change is taking place and is dramatic. I have been talking about the north.

    Similarly in the south we are beginning to see the development pulled westwards. Road projects that are under way will remove the last serious obstacles on the route from west Wales to London. We have invested over £8 million in the Milford Haven enterprise zone; and a major deep water facility there should be available for shipping in the coming year. In Swansea the enterprise zone has attracted 2,300 jobs. This month, Swansea Computer Harnesses has announced that it will create 260 additional jobs in Swansea and that the parent company, Swansea Industrial Components, will create 120 jobs at Burryport. I hope we will see a start this spring on the long-awaited international hotel which will reinforce the great progress that has been made in the maritime zone of Swansea, while the WDA factory building programme at Baglan and a high-tech park to be developed at Bridgend are other developments designed to ensure that the economic recovery spreads westwards. I greatly welcome BP's initiative in setting up D'Arcy Development and in providing land, buildings and resources at Llandarcy and at Angle Bay in order to assist job creation in both places. At Kenfig the Japanese company Orion, which began manufacturing only last summer, expects to be employing 250 within the next few months and is planning a further large project.

    As I told the House earlier this afternoon, Sony has announced that it is embarking on a major expansion at its Bridgend site. The project, costing over £30 million, involves a substantial increase in the manufacture of colour TV sets, tubes and components and will create an additional 332 jobs, bringing the employment at the plant to nearly 1,600.

    The successful development of the enterprise zones and the tranformation of Maritime Swansea are examples of what can be achieved if local authorities take full advantage of the inititatives taken by this Government. They show that, whatever differences emerge in this debate, there is a great deal of common ground. There are shared objectives, a point that emerged very clearly during a visit I paid last summer to the Rhondda. That council has been energetically and imaginatively using this Government's urban development grant scheme to bring forward urban renewal projects and also making use of a variety of schemes that we have introduced for improving the housing stock. There is a "priority estates" project at Penrhys, enveloping schemes at Cwm Park and Blaenau Cwm, and in the same district, at Clydach Vale, private sector housing development by Barratts and factory development is following on the completion of one of the largest derelict land schemes undertaken in Britain. In last month's debate in the Welsh Grand Committee I announced that we were providing additional resources for the derelict land programme.

    The Rhondda is also one of the authorities that has responded enthusiastically to the valleys initiative that I launched in this debate last year. I announced on 10 September that we had selected the seven towns of Aberdare, Ebbw Vale, Maesteg, Merthyr Tydfil, Pontardawe, Pontypool and Tonypandy to receive support over a three-year period. We made available £3 million of special capital allocations in the current year and I have announced a further £7 million for 1987–88. This expenditure is additional to the considerable sums of public money already available to the valleys for housing and derelict land clearance and urban improvement.

    Another boost will come from the garden festival to be held in 1992 in Ebbw Vale. The site chosen is exciting and challenging. The local authority is responding to the challenge with energy and has rightly recognised that the success of the festival will to a great extent depend upon private sector participation, leadership and involvement. Although the festival is not to take place until 1992, the work is starting at once and there is much to be done. I am sure that the festival will give a massive boost to the regeneration of the whole area, particularly along the heads of the valleys where there have recently been a number of encouraging industrial developments. I particularly welcome the move of Hoover's headquarters to Merthyr.

    In that connection I must refer to the announcement this morning of a package of support for a major development planned by Avana in the Dragon Park building originally constructed for Hoover, which is expected to create 800 jobs withing three years. This application for financial assistance was lodged and much of the property negotiation completed before the bid by Rank Hovis McDougall. We have processed that application under the normal procedures without regard to the bid.

    I hope that, whatever the outcome of the bid, this very important and carefully prepared project will go ahead. Both companies have a high reputation; both provide significant employment in Wales; and Rank Hovis McDougall is at the present time carrying out a capital project in Barry. Avana has an outstanding record of growth, investment and job creation in Wales and elsewhere.

    This announcement is very welcome. The development will widen the range of job opportunities in the communities that I represent. May I take it that this project is guaranteed to go ahead, irrespective of what happens about the bid?

    An offer has been made to Avana. The rules mean that if the offer were successful and Rank Hovis McDougall succeeded, it would have to resubmit an application for the project against the background of the financial structure of that company. I do not know what the outcome of the bid will be. The chairman of Rank Hovis McDougall has informed me that his company would regard a number of the Avana operations as among the lead operations for the proposed merger. If Avana maintained its very strong performance record, the project would go ahead, but the exact future will depend on the decision that is made about the bid.

    The right hon. Gentleman knows that great apprehension is felt among employees in Cardiff about this takeover bid. Avana has been a very prosperous Welsh company, as he pointed out. In his conversations with Rank Hovis McDougall, has the right hon. Gentleman received any undertakings about future employment if the takeover bid succeeds, because that is what is worrying my constituents and many others?

    Even before this project came forward, the chairman assured me that he believed that a takeover would not have adverse job consequences for Wales. He has told my Department that four or five of the Avana operations would be regarded as flagship operations in the new group. Since the right hon. Gentleman has pressed me on the matter, I must say, as a regional Minister, that I believe that there is particular value in companies like Avana, with outstanding management and good performance, having their headquarters in the regions. Therefore, I do not mind saying that I hope that Avana will maintain its position, but it will be for the market to decide. In fairness to Rank Hovis McDougall, it is also investing quite heavily in Wales and has given the kind of assurances that I have explained to the right hon. Gentleman.

    What the right hon. Gentleman has said will be welcomed, because the general view is that if this company, Avana, can maintain its advanced position and the quality of the goods and services that it is now providing, it is far better that it should be managed in Wales, even if Rank Hovis McDougall has good reasons for thinking that it should be managed outside Wales.

    I do not disagree with the right hon. Gentleman.

    I have already announced three new industrial projects this afternoon : CP Pharmaceuticals with more than 100 additional jobs, Sony with more than 330, Avana with 800, the overwhelming majority of the jobs being entirely new. [Interruption.] The hon. Member for Ogmore (Mr. Powell) shouts from a sedentary position that there is a general election coming. These decisions were taken by individual manufacturing companies that have confidence in Wales, which apparently the hon. Gentleman does not have.

    Is the right hon. Gentleman aware that we were well aware of all these announcements when we came into the Chamber today? There were press releases in Cardiff before any announcement was made to Parliament. Only two minutes ago the Welsh Development Agency's property developments programme was put on the notice board. It is disgusting that only two minutes ago we saw this Welsh Development Agency document.

    If the hon. Gentleman had been in the House at the start of the debate, he would have heard me refer to the announcement and to the press conference that was held by the chairman of the Welsh Development Agency, but, as usual, he is out of touch and out of place.

    I can also tell the House that Motil Plastics, which already employs 460 at Aberbargoed, today announced an expansion project providing 130 additional jobs by the end of next year; and I am also delighted that Penney and Giles Conduction Plastics Ltd. intends to create 100 extra jobs in a proposed expansion at Blackwood and Magnapower Transformers Ltd. 150 on the Treforest trading estate—[Interruption.] The hon. Member for Ogmore seems to regard all that as bad news. However, the people of Wales will regard it as good news and it shows the scale of the economic expansion now under way in Wales.

    In this debate last year I told the House of my plans for the further redevelopment of south Cardiff, building on the tremendous progress that has been made in recent years. Those plans received a warm welcome on all sides. Since then we have carried forward our studies, consulting very widely and, with the united support of the local authorities directly involved, I announced on 5 December our intention to set up a Cardiff bay development corporation to bring forward this huge regeneration project which is attracting national and international interest. I have been grateful for the warm support of the right hon. Member for Cardiff, South and Penarth (Mr. Callaghan) and greatly encouraged by the positive reaction of many experienced and successful people in the property world, the leisure industries and the financial markets. There is every indication that the commitments that the Government and the local authorities are making to infrastructure improvement will trigger private investment around Cardiff bay on a very large scale.

    Our studies so far have shown that the proposed barrage is feasible and indicate that it is the key to unlocking a major development opportunity. One of the first tasks of the corporation will be to carry forward these financial appraisals and technical and ecological studies with a view, if they prove favourable, to enabling legislation being introduced by South Glamorgan county council this autumn.

    An order setting up the corporation is currently before Parliament and a single petition by one company is due to be considered by a Select Committee in another place on 17 March. I hope that Parliament will give its consent and enable us to proceed very soon. In the meantime, the chairman-designate, Mr. Inkin, is working with the local authorities, my Department and others on the preparatory work.

    The Cardiff bay development has potential, not simply to make Cardiff one of the most splendid cities in Europe and greatly to improve the conditions in which some of its poorest citizens live — a broad mix of housing right across the market range will be one of the major elements —but hugely to strengthen the economy of the whole of south Wales and particularly the industrial valleys that are so closely linked to it.

    All those developments and, indeed, the whole economy of the area are dependent upon the security and adequacy of the Severn crossing. May I make it absolutely clear and put it beyond doubt that the Government are determined to secure both requirements. I can tell the House that my right hon. Friend the Secretary of State for Transport expects to award the main contract for the strengthening works on the existing bridge before Easter.

    Since my announcement last year of the Government's decision to provide a second Severn crossing, we have been pressing ahead with the enormous task of planning this major and difficult project. We have protected the route for the new crossing—for planning purposes—on both sides of the estuary. We are drawing up a wide-ranging technical brief for consultants to undertake the next phase of physical planning and consultation. The brief is highly complex, but it will be complete before Easter. Soon afterwards we shall take the necessary steps to appoint consultants. We are working to a timetable that will meet our firm intention to be in a position to provide the second crossing by the mid-1990s.

    The House will be aware of a proposal by Trafalgar House to provide a second crossing with private sector finance close to the existing bridge. The chairman has discussed these proposals with my right hon. Friend the Secretary of State for Transport and myself. While we welcome the evidence that a private sector solution might be feasible, a possibility which I referred to in my statement last July, I told Sir Nigel Broackes that this proposal does not meet the requirements for a new crossing which remain as I described them last July. The Trafalgar House proposal is inadequate; it is in the wrong place; it does not provide the road links to the M5 that we want; and the legislative timetable proposed is unrealistic. In any case there could be no question of a contract being awarded before competitive tenders had been sought. If private financing is to be entertained, we would invite bids at the right time on the basis of Government guidelines.

    As my right hon. Friend has rightly said, he is aware that that crossing is a sort of lifeline for Welsh industry. In those circumstances, is it a fact, from what he has said, that the horrendous forecast, made by the Member of the European Parliament for Wales, South, of private contractors taking over the contract and charging greatly enhanced tolls was completely without foundation? Can he confirm that?

    In my statement last July I said that we would consider the possibility of private sector funding but it will be on terms that fall within the Government guidelines of what is required, which is an absolutely satisfactory crossing for Wales, with a sensible financial base and without the sort of horrendous toll regime that my hon. Friend suggests. Any such proposal would simply not be acceptable to the Government. Already the Trafalgar House proposal includes, among other things, the cost of refurbishing and repairing the existing bridge, which is the subject of an entirely different tender and is being dealt with separately by my right hon. Friend the Secretary of State for Transport.

    Does the Secretary of State recall that in the Welsh Grand Committee on 26 November last I suggested that Trafalgar House was intent on making a bid for the second Severn crossing with an arrangement similar to the contract obtained under questionable circumstances to build the proposed new Dartford bridge? Will the Secretary of State also appreciate that on that occasion he gave every indication that he was concealing something and not being frank with the Committee? Would he agree with me now that the idea of Trafalgar House having control of the main access point in and out of Wales would be simply preposterous? Is there not an urgent need to get on with the construction of the new bridge, to make it a publicly owned one and to make it toll-free?

    As I said last July, I welcome the possibility of private sector finance on the lines of the Dartford precedent. I was entirely open and advanced the reasons for doing so. I welcome the interest of Trafalgar House. On the suggestion that I have something to conceal, the first I heard of the proposal was when Sir Nigel Broackes came to see my right hon. Friend the Secretary of State for Transport the week before last, and myself last week. I was given the detailed information about it on exactly the same day as it was given to the hon. Member for Newport, East (Mr. Hughes). So much for private information and consultation with Government. That proposition has been put forward by Trafalgar House for its own reasons without any discussion with Government. It will have to stand the test —[Interruption.] The hon. Member for Newport, East has said that he does not believe me. I give my word to the House that that is so and I hope that he will accept that.

    If private financing is to be entertained, we would invite bids at the right time on the basis of Government guidelines. We will not be dictated to by any company. However, we hope that it will make a bid at the appropriate time.

    I am not going to withdraw anything.

    When I put the point of view in the Welsh Grand Committee last November that Trafalgar House was fully intent on putting in a bid for this project with an arrangement similar to that obtained in questionable circumstances for the Dartford bridge, is the Secretary of State telling me that he knew nothing about it? Does no one tell him anything?

    What I am saying is perfectly clear. I hope that Trafalgar House and other consortia will come forward with tenders at the appropriate time. I did not have the smallest knowledge, and neither did my right hon. Friend the Secretary of State for Transport, of any approach by Trafalgar House with any proposal of the sort put forward last week until that proposal was put, as I have said, to my right hon. Friend the Secretary of State for Transport just prior to the weekend before last. That is the fact. I very much regret that the hon. Gentleman is not prepared to accept my word.

    On a point of order, Mr. Deputy Speaker. As my right hon. Friend the Secretary of State has explained himself thoroughly and positively, should not the hon. Member for Newport, East (Mr. Hughes) withdraw his allegation, which has no foundation?

    I bow to that ruling, Mr. Deputy Speaker, and we shall move on. I hope that the hon. Member for Newport, East is not questioning my word.

    So far, I have concentrated primarily on what is happening in urban and industrial Wales. In rural Wales, we face a period of profound change. It is unavoidable; nobody seriously imagines that we can go on producing agricultural surpluses at huge cost. The level of support for farming is still very large. The question is not whether we should support agriculture, but whether it makes sense to support it in such a way that we produce surpluses that nobody wants.

    Progress was made in the December negotiations. For the first time, we have a realistic mechanism for dealing with the problem of milk surpluses and we have laid the foundations for a much more sensible support arrangement for beef. It was a major negotiating success that we succeeded in removing the uncertainty that had attached to the continuation of the beef premium scheme and it must make sense to reduce the dependence on intervention.

    In the negotiations that begin in Brussels this week, we have to make progress in reducing overproduction of other commodities, in amending the Commission's proposals so that they do not discriminate against British agriculture, and in reforming the highly unsatisfactory agromonetary arrangements which produce enormous green currency discrepancies.

    Later this month, the Government will be publishing a comprehensive set of papers that will set out our proposals for assisting farming and the rural economy to adapt to the new situation. We have to find a new balance of policies, which will involve less support for expanding production, more attention to the demands of the market, more encouragement for alternative uses of land, more diversity on farms, and a better structure for the rural economy as a whole.

    I have already given way a number of times and I fear that I may be criticised for going on too long.

    We have to balance farming interests, the economic and social needs of rural areas, with conservation of the countryside and its enjoyment by the public.

    A great deal of nonsense has been talked about the possible effects of our proposals for revising the guidance to local planning authorities. In future, rather less weight will be attached to retaining all our agricultural land in production and more weight will be given to environmental and other factors, such as the need to encourage employment. Of course, the need to protect the countryside from uncontrolled development remains as strong as ever and it is perfectly possible to provide the necessary protection while permitting an increasing diversification of economic activity in villages and on farms.

    I must make it perfectly clear that in Wales, as elsewhere, the special protection afforded to national parks, areas of outstanding beauty and nature and scientific reserves will remain, and the heritage coast and other areas of good countryside will continue to be conserved and protected.

    We already have in Wales some effective instruments for encouraging the sorts of diversification that we need in rural Wales. I have already referred to the activities of Mid Wales Development, and the Welsh Development Agency has been strengthening its rural organisation. The range of measures available in support of investment and enterprise in rural Wales is extensive and we shall give a full account of them in a new publication, "Action for Rural Enterprise in Wales", which will be included in the package to which I referred.

    I launched my rural enterprise initiative a year ago and introduced a new grant scheme called DRIVE. That scheme is already producing results. For example, it has enabled the Pringle company to develop a new outlet in the railway station at Llanfair PG, creating more than 100 jobs in rural Anglesey.

    No. I did not give way to an Opposition Member, so I must not give way to my hon. Friend.

    The resources available for the rural enterprise initiative will be substantially greater in the coming financial year than they are this year.

    Just before our debate began, my right hon. Friend the Secretary of State for Education and Science announced our intentions for handling teachers' pay. What he had to say applies as much in Wales as in England and I hope that we shall shortly see the end of the long dispute and shall be able to concentrate again on the important task of raising education standards.

    My hon. Friend the Under-Secretary who is to reply to the debate will have more to say about education and training. I dealt at length with our training measures in the November debate in the Welsh Grand Committee. Our planned education expenditure in 1987–88 of £846 million shows an increase of 16 per cent. over this year's planned level, and further increases are proposed for the later years of the survey.

    When the planned expenditure is looked at in the context of continuing falling rolls in the secondary sector, it becomes clear that local education authorities have been provided with the means to make substantial advances in the quality of the services that they provide, particularly if they address themselves urgently to the problem of removing nearly 150,000 surplus places.

    In the Welsh Grand Committee debate on 4 February, I reported on the other increases that we are making in public spending and public services in Wales. National Health Service expenditure in Wales has risen significantly faster under this Government than it did under our Labour predecessors. Hospital and community health service provision in 1987–88 will be increased by almost 8 per cent. Discretionary capital allocations to authorities are up by, on average, 14 per cent. in cash terms over 1986–87 and that follows a period of the biggest health building programme in Welsh history.

    I have been able to increase the gross provision for housing capital expenditure by Welsh local authorities. Hon. Members in all parts of the House have welcomed the increase in net provision for the Housing Corporation by £10 million to £54·7 million. I do not underestimate the scale of the problem that we face in improving the quality of housing in a part of the country where so much of it is old and run-down. The Select Committee on Welsh Affairs is now examining that matter. While I am entitled to point out that we have spent much more on housing renovations than did our Labour predecessors, I have no illusions about the need to find new ways of overcoming the problem.

    During my speech, I have referred to other areas of public expenditure—the funding of the agencies the road programme and the urban programme. All those are expanding and all are being used with increasing effectiveness.

    Huge tasks remain, but, sustained by an expanding economy which is enjoying its sixth year of growth, public services are being improved and enlarged in Wales, private investment is growing strongly, unemployment is falling and great projects of urban renewal have been set in hand. The long decline is over. If we in Wales press forward with a new confidence, there is every prospect of an improving future for our people.

    4.47 pm

    The Secretary of State started by giving us a history lecture which was no more than a debating smokescreen. If Wales has arrived, it has arrived after needless agonies since 1979, and the Opposition have not seen the arrival.

    If massive building is needed, why has the Secretary of State savagely cut the rate support grant in successive years since 1979? He says that we have had a large share of the available inward investment, but we have certainly had an ever-larger share of redundancies year after year. The right hon. Gentleman's speech was made in anticipation of a general election and was drafted to attempt to defend vulnerable seats, including those of his ministerial colleagues.

    The right hon. Gentleman gave us no genuine strategy in response to the massive unemployment problems of Wales. Problems have piled up while he and the Government have been in office. We were not taken in by his sweet words about the jobless totals. The Wales TUC has made a frank allegation that the Government are manipulating the unemployment figures. The general secretary says that, far from falling by 8,000, as the Government claim, unemployment increased in 1986 by nearly 7,000.

    There is no doubt that the Government have been massaging the unemployment figures downwards over successive months.

    Is it not significant that not only have there been reduced unemployment figures in the past few months, but there has been an increase in the number of notified vacancies, which cannot be misinterpreted or disguised in the way suggested by the hon. Gentleman?

    The Wales TUC calculations also include the fact that the unemployment figure could truly he described as over 200,000. The Opposition do not accept the attempt by the hon. Member for Vale of Glamorgan (Sir R. Gower) to excuse the blatant massaging of the unemployment figures.

    I commend the decision to invest in the Margam new mine and I am content that the final negotiations on the project lie in the safe hands of the president of the South Wales National Union of Mineworkers and his members. The Secretary of State made some important remarks about Avana. That company deserves credit for its consistent investment in research and development. It now appears that the Department and the agency are attempting to rescue Avana from the unwelcome predatory Rank Hovis McDougall bid. Few people in Wales would welcome that bid. The Opposition want Avana to survive and win. However, after eight years in office, the Government must face up to their responsibilities for engendering a climate in which slick bids are made by City-based opportunists.

    With regard to the Severn bridge, it is clear that Trafalgar House has put the right hon. Gentleman into an embarrassing position. He attempted to respond frankly today to that development. I am glad that he will not dally with a scheme which could lead to the principal industrial artery in south Wales being in the sole control of a company merely out for profits. Clearly, Trafalgar House proposes a monopoly for itself. The right hon. Gentleman must know that public opinion in Wales would never wear that. The current bridge is not only the main link to the principal English markets, but a bridge to Europe.

    The right hon. Gentleman referred to the development agency. I want to draw his attention to an article in the Financial Times on 19 February. Under the headline
    "Tighter rein on Welsh agency"
    a report by Anthony Moreton states:
    "There is, however, no question of the Scots having to produce monthly figures for the Scottish Office as though it was the subsidiary of a large Public Corporation."
    Will the right hon. Gentleman knock on the head the inference that the economic flagship of Wales is to be reduced to behaving like the subsidiary of a large company?

    I am unconvinced by the right hon. Gentleman's posture as the guardian of the Welsh countryside. I believe that the right hon. Gentleman's plans and statements will be disastrous for Welsh farmers, damaging to the Welsh tourist industry, worthless as a contribution to the Welsh housing crisis and environmentally dangerous.

    Would the right hon. Gentleman care to tell us whether the BBC governor for Wales will leave the corporation? There have been comprehensive but perplexing reports in the media about that over the past few weeks. If the Minister catches your eye, Mr. Deputy Speaker, he may respond to that.

    I did not hear in the right hon. Gentleman's remarks how he proposes to help the survival of the Sherman theatre. We read daily of the events at the University college of Cardiff about that troubled seat of learning. How does the right hon. Gentleman propose to take up an initiative in that respect?

    I very much appreciate the hon. Gentleman giving way. Does he agree that it would be most helpful if the South Glamorgan county council would contribute infinitely more to the Sherman theatre, because the Cardiff city council already contributes a great deal towards that theatre as well as to the new theatre in Cardiff? I would have thought that the hon. Gentleman would agree that South Glamorgan county council should contribute infinitely more than it does now.

    The hon. Gentleman forgets that he has made consistent attacks on South Glamorgan county council for its expenditure policies. He has supported the strict controls that his right hon. Gentleman has placed upon that excellent local authority.

    The Secretary of State said on 23 May 1979:
    "There is a clear and paramount need for more jobs."
    Indeed there is. The then new Secretary of State in his speech said that unemployment would temporarily remain on the increase. He added:
    "It will take longer than a few months for the measures which we shall introduce to produce an improvement."
    Some eight years later, unemployment in Wales stands officially in excess of 176,000. When the right hon. Gentleman spoke in the House in 1979, it stood at 83,000, having been reduced under the previous Labour Government over the previous year by 19,000, or 19 per cent. Having endured eight years of the Secretary of State's measures to produce an improvement, unemployment has risen by about 125 per cent. In the constituencies of some of my hon. Friends, unemployment still stands at 25 per cent. among males. The Government have introduced measures that alter the number of people classified as unemployed. Perhaps that manipulation of the unemployment figures is the sort of measure that the Secretary of State had in mind.

    In his famous speech on 23 May 1979, the right hon. Gentleman said :
    "I believe that there has been too much interference by the Welsh Office with the day-to-day management of local authorities and indeed with other bodies that have been given responsibility for executive action, such as area health authorities. I have already given instructions that will very substantially reduce the … part played by Welsh Office Ministers."
    However, the Government's stranglehold on local authorities has tightened each year since 1979 and the Association of District Councils for Wales and the county councils argue that they are now less free from interference than has ever been the case. Our chief council officers plead with the Welsh Office for the freedoms that they enjoyed under the previous Labour Administration.

    Again in 1979 the right hon. Gentleman said:
    "we recognise that there will be a continuing need for an effective regional policy to reduce the disparity between the richer and less prosperous regions of the United Kingdom." —[Official Report, 23 May 1979; Vol. 967, c. 1130–37.]
    The gulf between Wales and affluent south-east has grown wider each year. Indeed, it is now a chasm and chronic unemployment has been largely to blame.

    Since 1979 we have seen the wasted years, the years of Cabinet complacency. I call in aid to my assertion the reasonably independent document, the publication of the 1984 census of employment. It states that between June 1979 and June 1986 Wales lost a greater proportion of its employment than any other region in Great Britain, a total of 175,000 jobs. Between June 1979 and June 1986 Wales lost a greater proportion of its manufacturing employment than any other region — about 112,000 jobs. Wales suffered a 3 per cent. drop—or 20,000 jobs—in service employment. Even in service employment there was a loss —between 1979 and 1986, according to that census.

    Unpublished Department of Employment statistics, which were reported in the Financial Times of 19 January, show that between September 1983 and September 1986 employment in Wales increased by a smaller proportion —0·2 per cent.—than in any other region. In the southeast, the figure was 5·6 per cent. and in East Anglia it was 13 per cent. So much for the glossy, superficial approach adopted by the Secretary of State in his speech. The people of Wales are worried most of all about unemployment.

    Those statistics, shocking as they are, only add to recent figures that have shown the Welsh economy to be under performing in several key areas. In 1985, gross domestic product per head in Wales was the lowest of all the regions, measuring 88·9 on the scale which takes the United Kingdom average as 100. My source for that figure is Economic Trends. That shows the right hon. Gentleman's stewardship. That is the truth, not the glossy veneer of his speech today. The Employment Gazette shows that, in 1985, redundancies in Wales increased fr