asked the Secretary of State for Wales whether he has any plans to change the role of the Welsh Development Agency.

asked the Secretary of State for Wales what is his policy concerning the operation and funding of the Welsh Development Agency; and if he will make a statement.

I have already made it plain to the House in the recent Welsh affairs debate that I do not intend to make any radical change in the present role of the WDA. However, I shall introduce safeguards over the agency's powers to buy into profitable firms, and ensure that it does not hold equity shareholdings on a permanent basis. The agency will continue to receive substantial Government funding.

Bearing in mind that the Welsh Development Agency, like the Scottish Development Agency, has done a great deal to regenerate industry and create employment in areas of need, will the Minister resist any pressure to reduce the powers or profitable holdings of the agency, which would be crippled under the so-called radical, crazy, policies of the "mad monk" at the Department of Industry?

I have already indicated that we believe that the WDA is doing valuable work and that we wish it to continue with that work. I have already had discussions with the WDA, which does not visualise that any of our proposals will cause it any difficulty in its current operations.

What proportion of my right hon. Friend's Department's public expenditure cuts will be borne by the agency?

The sum of £3 million.

Will the Secretary of State expand on that statement and explain to the House where that £3 million will come from, how many jobs will be lost as a result of that cut, and which activities of the agency will be eliminated by it?

The cut is primarily directed towards the investment programme, but I have made clear to the agency that it has discretion as to the way in which it allocates it over its total budget. I cannot make any estimate of the likely effect on employment.

If the right hon. Gentleman believes that there should be no radical change, is that attitude guided by the knowledge that the other policies of the present Government will be economically ruinous for Wales and that he must retain some credibility as fighting unemployment in the Principality?

What we have to do as a Government is to undo the massive damage done by the previous Administration. Unemployment in Wales rose under the previous Government from 38,000 when they came to office to over 101,000 last summer. It is still at 83,000 today.

I thank my right hon. Friend for his statement and for certain modifications which he will introduce. Is it not a fact that the agency has on the whole behaved with great responsibility and fulfilled a most useful function? Will his Department co-operate closely with it in the interest of the Principality?

It is because it has behaved in a helpful and sensible manner that we propose to continue with its operation and to encourage it.

The Secretary of State is well aware that the Development Board for Rural Wales comes under the jurisdiction of the agency. Has he any plans to change the role of that board, which has done excellent work in Mid-Wales during the last two years?

As I made clear during our debate on Welsh affairs, we intend to continue with the work of the DBRW as well as that of the agency.

As the right hon. Gentleman says that he expects the agency still to have substantial Government funds, will he give a guarantee that it will be provided with sufficient funds for this year and next, to enable it to carry out the £30 million advance factory programme, covering 1½ million square feet, announced by my right hon. and learned Friend the Member for Aberavon (Mr. Morris) when he was Secretary of State?

The present building programme will not be affected by these cuts but there may be some delay in proceeding with the advance factory building programme announced in March.

rose—

Order. I shall not be able to call hon. Members belonging to all of the parties on every question.

asked the Secretary of State for Wales whether he will review the standards for the construction of dual carriage roads in Wales so as to reduce the quantity of agricultural land required for this purpose.

The Welsh Office pays great attention to economy in use of agricultural land when designing new road schemes, including those for dual carriageway roads. Road standards generally are also under continuous review by my right hon. Friend the Minister of Transport, and I do not think a separate review is required in Wales.

Is my hon. Friend aware that unnecessarily high standards are being applied in the construction of these roads and that, for example, the north-west expressway, which is so badly needed, needs only to be able to carry traffic at a steady 50 mph, so that it is unnecessary to build it to the higher standards required for speeds of 70 mph? Is my hon. Friend further aware that vast amounts of land are being used up on ambitious cloverleaf junctions, such as the one proposed at the western end of the Holywell bypass? Is not this waste of land quite unjustified?

The protection of agricultural land is obviously an important objective of any road planner. We must also take into consideration the need to keep cars away from pedestrians and houses. Road safety is a most important consideration.

Does the Minister agree that Wales is crying out for better communications? Would it not be the height of folly to curb the road building programme? Will the hon. Gentleman make clear the Government's intentions in this matter?

My right hon. Friend has made it clear that he accords high priority to the building of new roads for economic development in North as well as South Wales. The Welsh Office programme is not affected by the reductions announced in the Budget Statement. Public expenditure programmes for next year and beyond have yet to be determined.

Will the Minister pay special regard to the standards of trunk road development in national parks? Is he aware that this issue is causing concern, not only among farmers but among environmental interests? Will he ensure that in future major road schemes within national parks blend into the landscape far more effectively?

That is the objective of the road planners. We shall do our best to come up to the hon. Member's expectations.

asked the Secretary of State for Wales if he has had any recent discussions with the chairman of the British Steel Corporation.

No, Sir.

In view of the deepening recession in the Western world, which particularly affects the steel industry, would it not be better for the Government to end speculation about any possible selling off of the corporation's assets and to make every effort to curb the ever-increasing volume of steel imports?

No one can doubt the importance of the steel industry to this country or the difficult time through which it is passing. It is up to the corporation to decide on its investment programmes. I have nothing to add to the statement we have made about the steel industry generally.

Does my right hon. Friend agree that in certain circumstances selling off assets may be better than closure, but that, equally, even closure could be better than continued uncertainty?

Clearly the important thing is that we should have a viable steel industry, able to compete successfully in the world. The commercial decisions about individual plants must be a matter for the corporation.

Given the loss of steel-making jobs in the Cardiff and Ebbw Vale areas, will the right hon. Gentleman pledge that he will give top priority—as did the previous Government—to obtaining new jobs for those areas? Will the right hon. Gentleman assure the House that he will fight with the utmost determination to persuade his ministerial colleagues to save steel-making at Shotton?

The answer to the first question is "Yes." The answer to the second question is that, as I have just observed, decisions about individual plants must be for the corporation to make, according to its technical and commercial judgment.

asked the Secretary of State for Wales if he has any plans to help small businesses in Wales; and if he will make a statement.

The encouragement of small firms is a prime objective in the Government's measures to revive the economy. My right hon. Friend the Chancellor of the Exchequer's Budget proposals will create a new climate for enterprise. The Government are also reviewing ways of reducing the administrative burden on small firms and providing conditions in which they can fulfil their full potential. I now look forward to seeing a positive response from our small businesses in Wales.

I am grateful to the Minister for that reply. What plans does he have to give risk capital to self-employed people in Wales who want to start on their own? Does he agree that there is a need for a land bank in this country to help young farmers to start up on their own and to be able to compete on equal terms with their counterparts in Europe?

Small firms figure prominently in the Welsh Development Agency programme of loans and investment. A substantial proportion of selective financial assistance under section 7 of the Industry Act is made to small concerns. This will continue.

Is the right hon. Gentleman aware that the Budget was a very bad Budget for small businesses? Is he aware that not only will the cut of £3 million in the budget of the WDA affect small businesses but that they will be damaged further by the pressure put upon them by the increases in VAT and the penal interest rates? Does not this show that the Tory Party has little interest in small businesses, especially in Wales?

The profit limit for the small companies' rate of corporation tax was raised in the Budget. Further, there were changes to stock relief which will be of particular help to small businesses, while income tax cuts will be the biggest help of all. I must point out to the right hon. Gentleman that VAT levels in most European countries are at the same level as, or are higher than, the level in this country, and it hardly seems to have affected the success of small businesses in other countries. High interest rates are the direct consequence of the profligacy of the Administration of which the right hon. Gentleman was a member.

asked the Secretary of State for Wales when he intends meeting the chairman of British Railways.

My right hon. Friend has no plans to do so.

Is the hon. Gentleman aware that his answer will cause dismay among those who are concerned with railway operations, in particular the National Union of Railwaymen? Is he aware of the proposals of the NUR for the electrification of the line to South Wales from Paddington? Does he agree that, in the light of the energy problems, the Government ought to take another look at this matter, since it may well prove to be a profitable and viable exercise?

Questions about the operation of British Rail in Wales are properly the responsibility of my right hon. Friend the Minister of Transport. The question of the electrification of the South Wales main line is one for British Rail to consider in the context of its electrification programme as a whole.

Do not the Government have a responsibility for energy saving and is it not quite irresponsible, in the context of the present energy crisis, to cut back on the grants to British Rail? Bearing in mind the cuts in the Cardiff valley routes, is it not illogical to stop some trains halfway down the valleys, thereby preventing any real energy saving?

The electrification of the main line from Paddington to Swansea is clearly a question for British Rail. Energy matters must be taken into consideration. However, the energy crisis did not start on 3 May. These matters will be taken into consideration by Ministers.

Does the Minister accept that his Department has a social and economic responsibility for the railways in Wales? Will he assure us that his Department will fight any proposals by British Rail to close any railway lines in Wales, including the Cambrian coast line?

There are no plans to close any lines in Wales.

Given the Budget Statement, is not the Minister showing some complacency? Are there not vulnerable railway lines in North Wales and Mid-Wales, such as the Cambrian coast line, the Wrexham-Birkenhead line and the central Wales line? Can we have an assurance from the Minister that there are no proposals to cut or close these lines?

As I have just told the hon. Member for Merioneth (Mr. Thomas), there are no proposals to cut any of these lines.

On a point of order, Mr. Speaker. In view of the thoroughly unsatisfactory answer to the question, I give notice that I shall seek to raise the matter on the Adjournment of the House.

asked the Secretary of State for Wales what action he intends to take to democratise the nominated bodies in Wales.

The Government intend to give the House an opportunity to consider ways of improving its scrutiny of government in Wales, including the nominated bodies.

Does the hon. Gentleman realise that, although the people of Wales gave a clear decision in the referendum, there is a great deal of dissatisfaction at the way the nominated bodies have been appointed? Will he therefore bring proposals to the House to ensure that these bodies are representative of the people of Wales, and will he consider the suggestion that we bring Members of Parliament and representatives of counties and districts together to formulate and determine who should serve on them?

As the hon. Gentleman says, the referendum decision was decisive. As regards proposals for scrutiny of nominated bodies, there will be sittings of the Welsh Grand Committee to debate the annual reports of nominated bodies, and we shall give Parliament the opportunity to consider proposals for the setting up of a Welsh Select Committee.

But, with respect, my hon. Friend the Member for Aberdare (Mr. Evans) referred to the composition of the nominated bodies, not to the scrutiny of them. In view of the apoplexy which the Minister displayed when he talked about quangos before the general election, will he put forward some proposals to ensure that the composition of the nominated bodies is transformed into democratic composition?

The Government are carrying out an urgent review of all public bodies which are responsible to Ministers, as part of the search for economies in public expenditure, and we shall certainly bring into the nominated bodies the element of democratic scrutiny by the House.

asked the Secretary of State for Wales if he will arrange to meet the chairman of the National Coal Board.

I have no plans to do so.

Does not the Secretary of State realise that this is deplorable neglect of his overall responsibility for the future of the Welsh economy? Will he reconsider this matter, and will he seek an opportunity to urge the chairman of the board to allay fears about the future of the Nantgarw coke ovens? Will he urge the chairman to have due regard to the potentially favourable long-term prospects for these coke ovens, to their importance for the economy of the Welsh coalfield and, in particular, to the level of production of several pits and to their relevance to employment in the area?

I know of the hon. Gentleman's concern for the future of the Nantgarw coke ovens. I understand that National Smokeless Fuels Limited has said that it sees no danger of closure in the current year and, indeed, that it is prepared to keep the coke ovens open so long as there is a market for the product—and there is a market at present with the British Steel Corporation. But, of course, the future of the coke ovens and of the pits in the area will have to be considered in the light of the wider consideration of the tripartite committee's review and recommendations for the coal industry which we shall be giving and to which we attach great importance.

Is the Secretary of State aware of the need for massive investment in the South Wales coalfield in order to avoid closures? What plans has he in that respect?

The hon. and learned Gentleman will be aware that the tripartite committee's proposals were put forward only in March. They contain major recommendations which the Government will be studying urgently. It would be in the interests of everyone concerned and of the future of the industry that really full consideration should be given to that important set of proposals.

Will the Secretary of State support the representations about the closure of the Deep Duffryn colliery being made by the National Union of Mineworkers at a meeting with the chairman of the National Coal Board today? In view of the present energy crisis and the need to maintain our underground production of coal, will the right hon. Gentleman ensure that the Government give the means of investment to the board to see that this pit is kept open and that there are no further closures in Wales?

I was aware that there was to be a meeting this afternoon on this matter. The normal pit closure procedures have been followed in this case, and once again the decision rests with the board, as in previous cases.

asked the Secretary of State for Wales what is the total number of houses owned by local councils in Wales.

About 280,000.

Is not the hon. Gentleman aware that there is still a severe housing shortage in Wales? Do Ministers therefore propose to go ahead with Conservative plans for selling off these houses? Does the hon. Gentleman realise that if that were to occur it would be a massive waste of public resources, that it would be socially destructive in local authority areas where there is heavy dependence on transfers of housing for social need, and that both the old and young couples who have special housing needs would be sadly let down if the housing stock were run down in that way? Will the hon. Gentleman reconsider these policies, if they are still policies, given the start on U-turns which we have already seen?

The sale of council houses does not affect the total housing stock in any way. The same number of houses will be available as before, but we are giving tenants who wish to buy council houses the opportunity to do so. Furthermore, there will be a continuing role for local authority housing. We fully recognise that there will be tenants and others waiting for accommodation who will not wish to buy their own homes or are not in a position to do so. In our legislation we shall be introducing a tenants' charter to protect the rights of public sector tenants.

I welcome my hon. Friend's statement that the sale of council houses does not reduce the housing stock by one unit. Is he aware that many people in council houses genuinely desire to own their houses and that they will be much better off doing so—and in many cases financially far better off as well?

My hon. Friend is absolutely right. Nearly 60 per cent. of houses in Wales are owner-occupied, 29 per cent. are occupied by tenants of local authorities, and 11 per cent. belong to the private rented sector. It is very much our wish to increase the first sector, to reduce the second and to revive the third.

Is the Minister aware of the great concern felt at the prospect of the sale of council houses in areas of outstanding natural beauty, where there is an influx of people from outside and the possibility of council houses being bought which will eventually become second homes? Is he aware of the representations made from the Lake District area to his English colleagues, and will he bear in mind similar representations from Gwynedd in respect of Wales?

As the hon. Gentleman knows, the responsibility for the sale of council houses is currently that of the local authorities, but we have a manifesto commitment to protect the situation in rural areas, and I assure him that that commitment will be honoured.

Does my hon. Friend agree that the extension of home ownership to those who in the past have not been able to acquire ownership of the dwellings in which they reside can be looked upon as a great social reform, and is obviously seen in that light by the residents on many large council estates who voted heavily for the Conservative Party?

I agree with my hon. Friend. Without doubt, there is a considerable demand in Wales for an increase in owner-occupation.

asked the Secretary of State for Wales what is his estimate of the effect of the Budget Statement on rates, council house rents and mortgage rates in Wales.

The effect on rates, council house rents and local authority mortgage rates in Wales will depend on action taken by individual local authorities. As to mortgage rates generally, the building societies will need to assess the total impact of the Budget on their investment inflow and see how markets react.

The Minister will understand that I expected the answer that part of this would depend on local authority decisions, but may I take it that the Government will be issuing some guidance to local authorities in this matter? I want to know whether that guidance will be that local authorities should increase rates, reduce services or increase unemployment in the public sector.

It is expected that in keeping with Government policy local authorities will act responsibly by reducing expenditure and not by raising additional rates. Local authorities must determine their own priorities and decide where to make the necessary economies in services.

On 11 May, when the Secretary of State ventured into Wales to give, as it were, a state of the nation report, he said that he would give local authorities a greater choice. What supernatural powers does he intend to give to local authorities to enable them to maintain services, if they are not to raise rates?

I can only repeat what I have said. It is entirely for local authorities to review their services. We want them to reduce the total volume of their expenditure.

asked the Secretary of State for Wales what advice and guidance he will give planning authorities in Wales regarding the protection and preservation of rural areas such as the Vale of Glamorgan; and if he will make a statement.

Local planning authorities have been given advice on this fundamental planning consideration in the past and my right hon. Friend has no immediate plans to issue fresh guidance.

Is my hon. Friend aware that there is great concern in parts of my constituency, such as Peterston-super-Ely, Pendoylan and Welsh St. Donats, about the proposal to establish an industrial site at the Miskin interchange of the M4? I appreciate that my hon. Friend cannot reply to that question now as the issue is in some respects sub judice, but will he give an assurance that account is taken of the fact that South Wales has suffered heavily in the past from the effects of the first Industrial Revolution and has a limited amount of beautiful rural countryside? Is account taken of these factors?

Account is taken of these factors. My hon. Friend raises a fundamental planning problem—namely, how planning authorities should resolve the conflict between the needs of developers and the protection of the environment. As for the development at Miskin, my right hon. Friend is awaiting the report of the inspector who held the recent public inquiry into the proposals. My right hon. Friend will give careful consideration to the report and all the relevant considerations, and will issue his decision as soon as possible.

Will the Minister convey to the hon. Member for Barry (Sir R. Gower) my thanks for the paeons of praise that he has showered upon the beauty of my constituency? Will he also mention that if the rural Vale of Glamorgan is to be preserved and protected there is a desperate need for jobs? When an industrial site is created, there is no reason why we should make the mistakes of the first Industrial Revolution. Modern industrial sites are no eyesores. It is only the commuters of Peterston-super-Ely who are comfortably in jobs elsewhere who think so.

There is a conflict between the needs of developers and the protection of the environment. I know that the hon. Member for Pontypridd (Mr. John) is interested in both.

asked the Secretary of State for Wales what is the likely effect of the Budget changes on the level of unemployment in Wales over the next 12 months.

Unemployment levels in Wales depend on a number of factors, of which the Budget measures are only a part. I cannot give any forecast; but, as I told the House in the debate on Welsh affairs on 23 May, the underlying trends remain unfavourable and it will take time for our measures to produce an improvement.

I think that we can all agree that it will take a great deal of time for certain of the measures in the Budget to operate successfully. Has the right hon. Gentleman seen the latest Treasury paper that forecasts unemployment of 2 million in the United Kingdom? If he has not seen it, does that mean that the Welsh Office is not now on the Treasury's mailing list? If he has seen it, what is the corresponding level of unemployment in Wales as forecast by the paper?

I am surprised that the right hon. Gentleman, with his previous experience, should indulge in such speculation. He will be well aware that his Government refused to give unemployment forecasts of the sort that he is now asking me to give.

In view of the Government's intention to cut £250 million off aid for industry and the Secretary of State's known aversion to aid for capital-intensive industry, will the right hon. Gentleman tell the House whether the project that I negotiated prior to the general election for £134 million-worth of investment in South Glamorgan is to be a casualty? The project was before the European Commission at the time of the election. Is that to be a casualty of the right hon. Gentleman's new cuts and prejudices?

No decisions about future investment in industry of the sort to which the right hon. Gentleman has referred have been taken and, therefore, no projects immediately before us are affected.

The Secretary of State is well aware of the high level of unemployment in my constituency, especially in Cardigan, Lampeter and Llandyssul, where it varies between 15 per cent. and 17 per cent. In view of the many children leaving school at the end of the term, what plans has he to help the youth of Ceredigion and other parts of Wales to find work?

All the Budget proposals are geared to stimulate the private sector and to encourage small businesses, which are so important to the area and to which the hon. Gentleman referred in an earlier question. It will take some time to undo the long-term damage that was inflicted by the policies of the previous Administration.

It is clear that the right hon. Gentleman is extremely coy and reluctant to give any estimate of unemployment figures in Wales for the coming year. Does that mean that he has made no estimate or that he is ashamed of the figures that the estimates suggest?

The previous Administration refused to give any unemployment estimates, which are notably and markedly unreliable. As I said in the Welsh affairs debate, all the information that I had on taking office was that the underlying trends left to me by the previous Administration indicated rising unemployment, which, with no policy changes, was likely sharply to increase later in the year.

What is the estimate?

asked the Secretary of State for Wales what is his estimate of the total allocation his Department will be making to local housing authorities in the current financial year and for 1980–81.

Local authorities' capital expenditure allocations in 1979–80 will total £123·1 million. This is net of receipts from the sale of council houses after taking account of any associated local authority lending. These receipts are estimated to total £2·2 million. If an authority obtains higher receipts than our estimates allow for, it will be able to spend more on its housing programme. Allocations for 1980–81 will be announced in due course.

Will the hon. Gentleman confirm that that represents a reduction in public expenditure resources for Welsh housing? Will he take time to read some of his own attacks on the appalling housing record of the previous Labour Administration during housing debates in the Welsh Grand Committee? How are the figures helpful to the 45,000 on council waiting lists in Wales and the 200,000 living in houses that lack adequate amenities?

The effect of my announcement is that there will be no cut in the allocations announced in November 1978 if authorities sell houses in accordance with our estimate. If authorities are more successful in selling, there will be more money available for housing. I hope that authorities will take advantage of the scheme.

If local authorities sell houses, is not that a once-and-for-all addition to revenues? Does it not mean that a source of revenue is lost as those houses are lost? Will not that make it much more difficult for authorities to rationalise, control and develop their council housing? In view of the hon. Gentleman's interest in these affairs and of the Government's relationships with local authorities, will he tell us what will happen under the legislation and the guidance offered if local authorities refuse to implement Government policy on the sale of council houses?

We hope that authorities will not take that line. If they do, we shall have to consider the matter. I do not agree with the hon. Gentleman that we are making life more difficult for local housing authorities. There will be a benefit for the taxpayer and the ratepayer. It will be a continuing benefit as houses are sold. We do not expect all the houses to be sold this year. The taxpayer will benefit in the sense that subsidies will be reduced. The ratepayer will benefit as maintenance will be reduced.

Is my hon. Friend aware that the subsidy that has to be provided by the taxpayer and ratepayer on a modern council house is about £1,600? Does he agree that providing council housing is the most financially disastrous way of trying to help those most in need of housing?

We are aware of the extent to which council housing must be subsidised. In answer to an earlier question it was made clear that there are those who are anxious to buy their own homes. All that we are doing is to give them the opportunity to do so.

asked the Secretary of State for Wales if he will take steps to support the provision of as many different forms of public transport as possible in rural areas of Wales in both the private and the public sector, including mini-bus and post-bus services.

Responsibility for these and other local transport matters rests in Wales with the county councils. We shall continue, however, to encourage them to consider all the different forms of transport where appropriate to their plans.

Does my hon. Friend agree that the present licensing regulations are extremely restrictive and inhibitive to the private sector, which can make such a valuable contribution to the provision of transport in rural areas?

I believe that the local authorities, the Post Office and the bus companies are well aware of the potential for varied and flexible forms of transport in Wales. My Department will continue to provide all the advice and support it can when new services are being planned.

asked the Secretary of State for Wales what is his estimate of the effect of the Budget resolutions on the school building programme for Wales.

School building allocations for 1979–80 have been reduced by about 1½ per cent. as part of the expenditure savings announced in the Budget Statement.

Are not these serious cuts, and will they not have an injurious effect on the rebuilding and modernisation programme for the primary and secondary schools of Wales? May we have an assurance that there will be no teacher redundancies in Wales because of these cuts?

Clearly, the cuts will affect the primary and secondary programme. That is not a matter for anything but regret to us all. No one can give a guarantee that the totality of the cuts, both the building cuts and the cut in rate support grant, will not affect teacher employment. It may reduce the number of teachers required.

Will the Minister confirm that the £½ million spending proposed by the previous Government in their Education Bill to enable local authorities to stimulate bilingual education has now been cut? Does he not accept that cuts in public expenditure and social education policy should be confined to those constituencies that voted for the Government?

The allocation for the bilingual grant fell as a result of the general election and the fall of the Education Bill. However, the bilingual grant of £½ million is still under consideration and has not been included in the cuts.

The hon. Gentleman, a former teacher, said earlier that he regretted the implications of cuts in education expenditure. Is that good enough? There are many areas of social deprivation, both in rural and industrial Wales, that are in desperate need of additional financial allocation, areas such as the Rhymney valley, in which I am particularly interested. Is it not time the hon. Gentleman stood up for his old profession?

I recognise that there are important areas of social deprivation, not only in the Rhymney valley but in most of the constituencies of Wales. It is clear that cuts in education expenditure are bound to affect the education services in those areas. The cuts have been introduced as a general package. Education must expect to take its share when the cuts are made generally across the board.

What sum of money do the cuts represent?

The cuts in Wales are £1·3 million.

asked the Secretary of State for Industry if he is satisfied that industry has sufficient incentives to expand production.

The expectation of profits is the only real incentive to increased production, and it is the aim of our policies to create a favourable climate for profitability and growth.

Yes, but if that climate includes a Treasury forecast that manufacturing production will decrease by 2½ per cent. with a 14 per cent. minimum lending rate, how can that reply be of any help to those running businesses, particularly small businesses, for which the hon. Gentleman is responsible?

The hon. Gentleman has recited the consequences of the situation that we inherited from the previous Government—

It was the hon. Gentleman's Government's Budget.

and the Budget is the first step to putting that situation right.