asked the Secretary of State for Wales what discussions he has had with the chairman of the Welsh Development Agency regarding the level of advance factory construction in Wales.

I have recently discussed with the chairman the agency's construction plans within the existing cash limit. I am glad to inform the House that the agency is in a position to start work on advance factory building totalling over 600,000 sq. ft. This is in addition to the 2·3 million sq. ft. already planned to start this year. 350,000 sq. ft. will be built in the steel closure areas and the remainder will represent a very substantial start on the WDA's fifth advance factory programme outside the steel closure areas. The agency will also be able to resume its land reclamation programme.

Is my right hon. Friend aware that that is very good news? In view of the unique efficacy of advance factory construction, both in terms of flexibility and in terms of being highly selective, is he satisfied that the existing limits on the Welsh Development Agency are adequate to enable it to deploy its full resources for this purpose?

By the announcement today we are ensuring that the existing limits are used to the hilt in the current financial year. However, we are also encouraging the agency to raise additional financial resources from the private sector, and I am confident that it will be able to do so.

Is the right hon. Gentleman aware of the difficulties that are occurring in West Glamorgan—apart from those created by the Secretary of State for Wales—following the liquidation of Messrs. Potters, the builders? Will he bring this matter to the attention of the WDA in order to secure new contractors, so that these factories, which have already been announced, can come into operation much more quickly than might othewise be the case?

I shall certainly discuss that matter with the chairman of the WDA.

I welcome the announcement of the building of further advance factories, but in view of the tremendous needs of the Welsh economy at present will my right hon. Friend consider encouraging his Department and the WDA to get together and plan ahead for the acquisition of suitable sites for advance factories in future programmes?

I agree about the importance of having a continuing programme, and I assure my hon. Friend that the WDA is seeking additional sites. It is now clear that additional sites will be available, apart from those previously announced, for example in the Newport area.

In view of the high bank interest rate, does the Secretary of State agree that it will be very difficult to entice industrialists to mid-Wales to take over all these advance factories?

Both in the WDA area and in the mid-Wales area of the DBRW, considerable interest has been expressed in these factories.

Is my right hon. Friend satisfied that the exceptionally good rate of take-up of advance factories is being maintained in current conditions?

Interest continues at a high level. Only 2·4 per cent. of the WDA's existing factories are standing vacant. I can report that inquiries and visits are continuing.

I welcome the announcement of this extra space, but as the announced factories are inside the existing cash limits, we were expecting it. Does the right hon. Gentleman agree that we still have tremendous needs, which were referred to by the hon. Member for Barry (Sir R. Gower), with about 99,000 unemployed, 50,000 redundancies announced in the year and now the possible further threat to Port Talbort and Llanwern? Has the Secretary of State seen today's Western Mail, which refers to the fact that the Government's response to the existing crisis has been woefully inadequate? Will he do something about the inadequacy of all his measures?

I do not accept that verdict. We have a substantial advance factory programme under way, and 47 per cent. of the resources for the entire United Kingdom are going to factory building in Wales. The announcement today is an indication of the intention of the Government and the WDA to see that factory programme rolling forward.

asked the Secretary of State for Wales how much aid the European Economic Community has given in loans and grants to Wales in the most recent 12-month period for which figures are available.

A total of £162 million in the year ending 31 May 1980.

Does my hon. Friend agree that the EEC's contribution to the wellbeing of Wales is impressive? What steps is he taking to draw to the attention of the people of Wales the advantages that membership of the Community brings them?

I agree about the scale of the EEC's contribution. Since accession, the receipts in Wales have totalled about £668 million in identifiable grants and loans, and we are taking every opportunity to publicise them. We are examining additional ways to do so; for example, by identifying projects that have gone ahead thanks to EEC assistance. In that way the people in the locality affected will be aware of where the finance has come from.

How does the Secretary of State reconcile what the Government say here and what Conservative Euro-MPs do in Strasbourg? Is the right hon. Gentleman aware that last Friday Conservative Euro-MPs voted against proposals to increase expenditure under the regional and social funds, and therefore missed the opportunity for extra funds to come to Wales?

I do not believe that that is accurate. As the hon. Gentleman knows, there is disagreement about the budget proposals put forward by the Commission. Nothing has so far happened to prevent Wales from taking full advantage of existing Community resources.

Will my right hon. Friend endeavour to encourage greater use of European money for roads and infrastructure projects in Wales? Can he give a categoric assurance that the results of the survey to see whether there should be a tunnel under or a bridge over the Conway crossing will be made known before the Summer Recess?

With regard to my hon. Friend's first point, it is advantageous that the recent negotiations in Europe have reduced the total resource cost to the United Kingdom of our membership. That therefore gives the Government resources for essential expenditure, such as on the A55, without imposing too great a strain on the economy. We shall make an announcement about the future road programme and the Conway crossing before the Summer Recess.

Will the Secretary of State arrange for early discussions with British Rail to ensure that an application is made to obtain EEC regional development grants for the reconstruction of the Barmouth bridge, which it is estimated will cost about £2½ million?

I shall discuss that matter with my right hon. Friend the Minister of Transport, who is directly responsible for British Rail, and will endeavour to see that if an application goes forward it does so in good time.

asked the Secretary of State for Wales what representations he has received about the reduction in the work force in the textile industry in East Flint.

The hon. Gentleman has referred to the difficulties in the textile industry on a number of occasions in the House, and local authorities in the area have expressed concern about employment prospects.

Will the Secretary of State urgently consider locating a major job project in Flint, bearing in mind the recent loss of 7,000 steel jobs and the fact that Courtaulds currently employ only 1,000 people, compared with the post-war peak figure of 10,000? Is the right hon. Gentleman aware that Flint has a male unemployment rate of about 36 per cent., and that hundreds of young people are seeking jobs, often son against father? Is he aware also that the Deeside mill is fighting for its life, partly because of the Government's policy over the high pound, high interest rates and cheap subsidised imports?

As the hon. Gentleman is aware, Flint is part of a wider travel-to-work area, so the overall rate is not as high as he indicates. I have just announced a major new programme of advance factories, 140,000 sq ft of which will be in the Deeside industrial park. There will be 50,000 sq ft at Wrexham and 30,000 sq ft at Bagillt. That illustrates that there is a major programme of advance factory building in that part of Wales. I remind the hon. Gentleman that the Point of Ayr project should provide useful assistance to the area, and I am sure that he will be glad to know that the British Celanese investment should secure employment in Wrexham.

Is my right hon. Friend aware that the problems to which the hon. Member for Flint, East (Mr. Jones) draws attention extend also to my constituency and are very grave? Is he further aware that the problems of the textile industry are exceedingly complex and that demands from the Labour Benches for indiscriminate import controls are often unhelpful? Does my right hon. Friend accept that the export trade is valuable to this industry, and should be balanced against the threat from imports?

My hon. Friend's comments confirm the importance of working under the existing GATT multi-fibre arrangement to control imports from low-cost sources. We have undertaken to ensure that those arrangements are implemented effectively and quickly.

Is the right hon. Gentleman aware that the footwear industry is also hard hit by the dumping of foreign products?

Order. This question relates to the textile industry.

asked the Secretary of State for Wales if he has any further plans to increase the guaranteed price for lamb in the current year; and if he will make a statement.

The fat sheep guarantee scheme will be replaced in the United Kingdom by the support arrangements to be provided under the recently negotiated Community regime. The arrangements for implementation are currently under discussion.

Can the Secretary of State tell the House whether the new scheme will come into operation in July, or whether our sheep producers will have to wait until August, September or October—that is, until the scheme is finalised?

We should like the scheme to start in July, which was the date indicated during negotiations. However, it is a complicated scheme and has to be introduced throughout the whole of the EEC, and it is therefore in the hands of the Commission. It is important that the scheme should be introduced before the major autumn sales, as it will have important consequences for the market.

Is my right hon. Friend aware of the strength of feeling among those engaged in sheep rearing in my constituency about the need for early implementation of the scheme? Is he aware also that many of those farmers are receiving a smaller financial return from their sheep this year than they did last year? Will he consider the matter urgently?

Yes, but the new scheme will help firm up the market and give it a strong future. I am sure that my hon. Friend will draw that to the attention of his farmers. I hope that he will also warn them of the dangers of delaying marketing their fat sheep, which could become overfat and either not qualify for the United Kingdom fat sheep guarantee or the EEC variable premium. There is a risk that some farmers will delay because of the new scheme, and thereby lose altogether.

asked the Secretary of State for Wales whether he has completed his consultations with the Welsh Joint Education Committee and other educational bodies regarding the place of Welsh in the school curriculum in Wales.

No. Written comments on our consultative document have been offered by a number of bodies, and I shall be discussing this matter with representatives of the Welsh Joint Education Committee next month.

Does my hon. Friend agree that if we are to have a proper place for the Welsh language in the school curriculum it is necessary to improve the standard of school books and other material in the language?

Yes. It was partly for that reason that we wrote into the Education Act a power to give specific grants to local education authorities. In administering the scheme we intend to give high priority to Welsh language books.

Does the Minister accept that many of us strongly oppose the Government's proposal for a core curriculum? However, should he decide to implement such a proposal, we take the view that Welsh medium teaching should be part of that core in some form in all schools in Wales.

The linguistic pattern of Welsh throughout Wales is so varied that it will differ from one local authority to another. The point of the consultations is to ensure that Welsh plays an important part in the curriculum of our schools in Wales.

Will my hon. Friend study particularly in his future consideration of this matter the availability of competent teachers of Welsh, particularly in those parts of the country where not so much Welsh is spoken?

We are concerned with the competent teaching of Welsh and every other subject.

We welcome the extra specific grant, but is the hon. Gentleman sure that the strings attached to it will not be a deterrent? Is it correct that, to obtain the grant, local authorities will have to divert some of their existing programmes as their contribution? Will not that mean a further cutback in existing programmes in the education system, and is there not a risk that that will sour the attitudes of parents and education committees, who already resent the fact that 1 million fewer school books will be bought this year?

The problem of school books has been with us for a long time, and the right hon. Gentleman ought to know that. As for the questions raised recently by the WJEC. I shall be meeting the committee on 25 July and those matters will be discussed. We want to ensure that the new resources being injected will result, for the most part, in new initiatives. We do not want local expenditure by central Government expenditure.

asked the Secretary of State for Wales what is the current position on advance factory letting in Wales.

asked the Secretary of State for Wales what is the current position with regard to the letting of advance factories in Wales.

This year 54 factory units totalling 453,700 sq. ft. had been formally allocated up to 20 June.

Does my right hon. Friend agree that it is important to make sure that there is adequate provision of small units and a great deal of education and help, particularly for those who are made redundant as a result of closures, so that they can find employment and make use of some of the small units?

The Welsh Development Agency has included a considerable number of small units in its programme. There are nine small units available in Anglesey. As my hon. Friend is aware, the WDA has also had discussions with the National Coal Board pension fund about a major new initiative for the provision of small units.

In view of the increasing size of the advance factory programme in Wales, will my right hon. Friend consider whether there might be a need to reassess the efficacy of the letting policy, the publicity and the agencies that bring the advantage of such factories to the attention of industrialists in this country and overseas?

As my hon. Friend is well aware, that matter is being examined by the Select Committee. It would probably be right to await the comments of my hon. Friend and his colleagues on the agencies before taking further decisions. I can tell the House that there is still a great deal of interest in the factories. This year's performance is well up, and is on a par with 1978, when 100 factories were allocated and that was considered a good result at the time. It is a little down on last year, which was a record year, but, considering the present state of the economy, interest continues at a remarkably high level.

Is the right hon. Gentleman aware that no advance factory building programme can cope with another steel plant closure? Will he and the Government therefore assure the House and the people of Wales that they will not endorse any further plant closures in Wales, because Wales has been expected to suffer more than enough of the steel rationalisation programme? Is the right hon. Gentleman aware that the industrial and political patience of the Welsh people will run out rapidly if the Government continue on their present course?

The hon. Gentleman is aware that the new chairman of the BSC does not take over until tomorrow. He has not yet given the Government his assessment of the situation, and I am unable to comment on plans that have not yet been presented.

Is the right hon. Gentleman aware that we are all bemused sometimes by the figures on factory building and the size of the units? Is he also aware that we are concerned to try to relate the 54 factories and the 450,000 sq. ft. of space to which he referred to the size of the problem facing us in Wales? Can the Secretary of State confirm, or deny, that the number of jobs likely to be created by the 54 factories is fewer than 2,000? Can he say whether those 2,000 are included in the 19,000 jobs in the pipeline about which we have heard much recently, or whether they are in addition to that figure?

With the square footage that I am talking about, the number of jobs will be nearer 2,500 than under 2,000.

The right hon. Gentleman has got it wrong.

If the right hon. Gentleman wants precision on the matter, I can tell him that the number of jobs to be created is expected to be 2,390 from the 453,700 sq. ft. to which I referred. I stand by those figures.

asked the Secretary of State for Wales if he has had any recent discussions with representatives of the British Steel Corporation to discuss the scale of redundancies in works in Gwent.

I last met the chairman and the chairman designate on 26 May. I discussed with them various matters relating to British Steel Corporation works in Wales.

When will the Secretary of State inform his Cabinet colleagues that the Government's policies are creating chaos in Wales, particularly in our vital steel industry? If he cannot reconcile himself to speaking up for Wales, why does he not pack up?

The latest Government policy has been to announce that we will guarantee the debts of the Brtish Steel Corporation, which would otherwise be bankrupt, and provide additional financial assistance if that is necessary when the new chairman of the BSC, who takes over tomorrow, has produced his assessment of the needs. We also made it clear that the new chairman must continue the essential task of making the BSC competitive, because it has to trade in a competitive world.

Will my right hon. Friend confirm that the money that the Government will have to produce to ensure the continued trading viability of the BSC has to come from somewhere, and that the Government must calculate whether the resources being pumped into the BSC are not taking away more jobs in other industries than they are likely to save?

There can be no doubt that the loss in the previous financial year of £450 million and the news that the external financing limit of £450 million for the current year is likely to be exceeded by about £400 million must be directly destructive of jobs in other industries.

On Thursday the Secretary of State shocked the House by informing us that either another £400 million had to be found or the BSC would be liquidated. He said that on the basis of what he was told in a letter that he received on 6 June. The Secretary of State did the Select Committee the courtesy of appearing before it on 10 June.

Presumably when the hon. Gentleman referred to a statement by the Secretary of State last week he was referring to the statement by my right hon. Friend the Secretary of State for Industry, because I did not make a statement. It was clear—from the evidence given to the Select Committee—that the current position of the British Steel Corporation was extremely serious. All that my right hon. Friend did on Thursday was to come to the House, which is the right place to report these matters, tell the House the facts and announce that he would guarantee the debts of an organisation that would otherwise have had to be in liquidation.

Did the right hon. Gentleman know?

Will my right hon. Friend have regular meetings with the new chairman of the British Steel Corporation so as constantly to monitor the situation to make sure that we are not expecting the corporation to run down its works too far, and to ensure that the prognosis for future demand is kept under constant review, so that that is a correct forecast, bearing in mind the difficulties of trying to look beyond any 12-month period?

Every forecast made by the corporation over the past five years has proved to be grossly optimistic. I am sure that my right hon. Friend and my hon. Friend the Minister responsible, the Minister of State, Department of Industry, who is on the Bench with me will keep the closest eye on the forecast, but it must be said that the market is deteriorating very sharply.

Does the Secretary of State realise that it must be a matter of the greatest concern to the House, and particularly to the Opposition, that four days after Sir Charles Villiers made his statement to the Secretary of State for Industry that a £400 million extra cash requirement was likely this year, he, the Secretary of State for Wales, apparently concealed that information from the Select Committee on Welsh Affairs, which he himself set up, or was unaware of the information at that time? Will he assure us that he intends not just to intervene, as in the past, but to fight for the Welsh plant, because there is no way in which we in Wales will accept the closure of Llanwern or Margam? If he fails to save those plants, the whole of Wales will expect his resignation.

I concealed nothing from the Select Committee. I answered every question freely and fully. I do not concede for one moment that it is only right hon. and hon. Members on the Opposition Benches who have a concern for these matters. If they had a concern for them, they would have done well not to encourage the strike that has done so much damage to BSC.

asked the Secretary of State for Wales what estimates are available to his Department of public sector and housing association housing starts in Wales for the three years 1980–81, 1981–82 and 1982–83.

As I said in reply to the hon. Member for Cardigan (Mr. Howells) on 25 June, I cannot make firm estimates, because within the single block housing investment allocation it will be for individual local authorities in Wales to decide what resources to use for new house building in 1980. As for future years, we must await their submissions of housing investment programmes later this year.

But is the Minister aware that in my constituency—

Reading.

I can read. Perhaps the hon. Gentleman cannot. I shall start again. The hon. Gentleman is simply wasting Welsh Question Time.

I can tell the hon. Gentleman that the housing authority in his constituency has this year had 80 per cent. of last year's grant, which is what it was promised by the previous Government in November 1978. It is one of 33 authorities which this year have had 80 per cent. of last year's grant. There are 14 other authorities in Wales that have had more than 80 per cent. of last year's grant. It is not simply new house building with which local authorities and housing associations are concerned. They are concerned also with rehabilitation, improvement for sale and the extension of home ownership.

My hon. Friend cannot give us firm estimates about the future, but can he give us some facts about the number of starts made from, say, 1974 to 1979 under the previous Government?

I can tell my hon. Friend something about the record of the previous Government. Between 1974–75 and 1979–80 they cut the housing moneys in Wales by no less than one-third.

The hon. Gentleman is very keen on mentioning the previous Government's commitment. Is it not true that the previous Government told local housing authorities in Wales that they could continue with their full programme and that the Government would finance them? Secondly, is it not true also that housing expenditure in Wales has been cut from £217 million in 1978–79, when only 5,500 houses were built, to £110 million in 1983–84? It is less than true to say that the hon. Gentleman cannot give some indication. A cut of that size must mean far fewer houses being built in Wales and longer waiting lists, and our homeless people waiting even longer.

The right hon. Gentleman referred to the White Paper projections of expenditure up to 1983–84. I reiterate that between 1974–75 and 1979–80 his Government reduced housing expenditure in Wales from £303 million to £203 million. We are only continuing a course that was started by the previous Government.

Will the hon. Gentleman now answer the first part of my question? Is it not true that the last circular issued by the Labour Government committed the Government to financing the full housing programme of housing authorities in Wales?

What the right hon. Gentleman's Government promised in the letter of November 1978 to the local authorities was that they would this year reeive 80 per cent. of the moneys granted last year.

And the rest. Go on.

Order.

There was also, admittedly, a tolerance factor. We have not allowed that tolerance factor, because we want the local authorities to adhere firmly to their cash limits.

asked the Secretary of State for Wales what proposals he has submitted to the European Economic Community for Wales to be designated as a special action area; and if he will make a statement.

I have given the Commission a pilot study covering industrial South Wales as part of its initiative on integrated operations.

Would it be possible for the details to be put in the Library, so that we may see what the Secretary of State has submitted? Does the right hon. Gentleman recall that Employment and Social Affairs Commissioner Vredeling said that he was disturbed to find such a massive rundown of the steel industry in Wales, in view of the repercussions that it was having on the coal industry and the general economy? What action will the Government take if nothing is forthcoming from Brussels?

I do not think that it would be appropriate for the document to be placed in the Library at this stage. It is only a provisional draft document, one of a number that are passing between the Commission and the Welsh Office while the document is being developed. A copy is being passed to the Select Committee on Welsh Affairs, which has asked for it, so the hon. Gentleman will no doubt see it in due course.

Is my right hon. Friend satisfied that the administrative arrangements between the Welsh Office and the local authorities are adequate to ensure that we tap all possible European funds?

Yes, Sir. I am sure that we are making full use of the resources available to us under EEC arrangements. I have in the past been critical of the quality of some of the schemes coming forward from local authorities. On the whole, they are improving, and there is an adequate supply, but we should always like to have an even wider choice of good quality schemes from the local authorities.

The right hon. Gentleman talked of putting off the evil day. Will he appreciate that we in North East Wales hope that we have put behind us the worst of the steel redundancies, having lost 7,000 jobs? Can he give us an assurance that the jobs remaining at Shotton are safe?

The hon. Gentleman knows that in an industry that depends, at the end of the day, on the markets. I cannot give any guarantee about the long-term future.

When my right hon. Friend makes his statement, will he point out that any increased payments from the EEC will, inevitably and ultimately, be balanced by increased payments to the EEC?

It might be to the advantage of this country if a larger share of the benefits of the EEC were to come into the form of industrial assistance that would be of benefit to this country, unlike some arrangements within the Community, that benefit other countries, but nor this country.

asked the Secretary of State for Wales what discussions or other contact he has had with Welsh local authorities concerning over-spending; and what sanctions he has in mind to ensure compliance with his policy.

On many occasions, including meetings with the Welsh Consultative Council on Local Government Finance, I have made it clear that local authority expenditure must be kept within the Government's expenditure targets. For England and Wales, the returns of local authorities' planned expenditure for this year indicated current expenditure well in excess of our target and my right hon. Friend the Secretary of State for the Environment and I have asked all local authorities to revise their budgets by 1 August. I trust that cooperation and good sense will prevail and sanctions will not be necessary.

Will the Secretary of State confirm that Swansea and Afan are within the Government's penalty zone? Will he accept that the rate in the pound is no real guide to an authority's actual expenditure? Is not the Government's so-called rough justice no justice at all and a further example of the Conservative view that the man in Whitehall knows best—better than the local authorities?

All that we are asking is that the local authorities should conform to the overall economic policies of the Government on public spending, as they have always done under previous Governments. I am sure that the hon. Gentleman will encourage his local authority to act in that way. If it has reduced its expenditure it will not be affected by any action—representing rough justice or not.

Will my hon. Friend give an assurance that if local authorities in the South overspend yet again they will not be bailed out yet again at the expense of authorities, such as those in Powys, which have always obeyed every order to cut back and now face further cutbacks, which they cannot afford?

The district authorities in Powys have a good record this year. Their rate increases are among the lowest anywhere. We hope that we shall be able to proceed on the basis that only a few serious offenders will have to be penalised under the powers available to us.

Will the Secretary of State bear in mind that many Welsh local authorities, West Glamorgan and Swansea included, are experiencing falling populations at the same time as an increase in the proportion of elderly in the population? Rate increases therefore become inevitable. At a time of soaring unemployment, how can he justify the use of sanctions and jackboot methods to withdraw money from areas that need more pumped into them?

Because public spending is helping to kill productive industry and destroy jobs. There can be no excuse, at a time when the country needs to economise for local authorities in many parts of the country increasing their manpower.

asked the Secretary of State for Wales what is the average rent for local authority dwellings in Wales; and by what percentage he expects it to increase by 1981.

Provisional figures for 1980–81 show the average unrebated rent to be £8·04. The percentage increase by 1981 will depend on the decisions of local authorities taken in the light of any further Government guidelines, and within the framework of the new subsidy system which will come into operation in 1981–82.

As the Minister is rather coy about predicting the percentage increase in rents, does he feel that it will be within the Government's inflation forecast for 1981, or will council house tenants be hit by more than average rises again this year?

It was the Labour Government who restored the freedom to local authorities to fix their rents. While the Government have indicated guideline average rent increases to local authorities of £1·50 for 1980–81 and 60p from October 1980, in the context of the rate support grant settlement and the HIP allocation arrangements it is for the local authority to decide the appropriate level of increase for the tenants, taking into account the need to charge no more than is required to balance the expenditure falling on the housing revenue account after allowing for Government subsidies, contributions from the rate fund and provision for a reasonable working balance.

Bearing in mind the small proportion that rents reflect in the total cost of provision of up-to-date local authority housing, does my hon. Friend agree that it will be much cheaper in the long term for many council house tenants, when the Housing Bill receives the Royal Assent, to buy their council houses than to continue to pay ever-increasing rents?

I agree with my hon. Friend that we want to encourage home ownership and council house sales. There is a significant demand for home ownership. The previous Government said that they intended to keep the rise in rents broadly in line with the rise in earnings. They failed to do that. We are trying to correct the situation.

Will the Minister explain that, as a result of his Housing Bill and the abolition of the no-profit rule on housing revenue accounts, high rents for rentpayers will subsidise ratepayers?

No. I disagree with the hon. Gentleman's view of the effect of the Housing Bill. On the whole, I think that the effect of the Bill will be largely beneficial. We acknowledge that, while there will always be people who want to buy their own homes, there will always be those who wish to rent their homes. The Government have increased the protection given to poorer tenants. We have recently increased the maximum rebate payable under the scheme from £10 to £23.

asked the Secretary of State for Wales when he expects unemployment in Wales to exceed 100,000.

Very soon, I regret to say, if present trends continue.

It will continue to be 100,000—plus next month, and beyond that to perhaps 120,000 or 130,000. Does the right hon. Gentleman agree that, in these circumstances, it is nonsense to withdraw grants from special development areas and development areas in August 1980, given the enormous upward trend in unemployment and the large number of redundancies, amounting to well over 50,000 in the last 12 months, in the Welsh economy?

I am sure that it is right to concentrate grants on areas that need them most and where the unemployment figures are at their highest.

Does my right hon. Friend agree that if employers in Wales had flexibility over wage levels—which is rendered impossible by nationally bargained increases—it would be substantially easier to attract industry to Wales?

I am certain that in many industries excessively high wage settlements have destroyed jobs.

Does the Secretary of State appreciate that if the puny efforts at factory building in the Newport area are anything to go by, together with the parsimonious attitude of the Government in not granting the town special development area status, Newport is likely, in the not-too-distant future, to be a major contributor to that magical figure of 100,000 unemployed?

We have allocated a major part of the £48 million package to the Newport area and to the Cwmbran area that helps to serve it. I have announced this afternoon a substantial extension of factory building and site provision for Newport.

Does my right hon. Friend agree that failure to tackle the problem of inflation would be a guarantee of even worse unemployment figures?

I am certain that if inflation is not tackled, in the long run the unemployment figures will be even higher. Tackling that problem remains the top priority of the Government.

Does the right hon. Gentleman agree that he has just confirmed that under him unemployment in Wales has risen by about 19,000 in one year? If that is a measure of his contribution to Wales, it is one that we could well do without.

What did the previous Government do?

A lot better. Does the right hon. Gentleman agree also that the changes in regional policies announced by the Government last June—partially relieved for Llanwern and Port Talbot by the fiddling extra pieces announced for the Port Talbot and Llanwern steel closure areas—are inadequate to meet the crisis which has now spread to the whole of Wales, not only in steel closure areas but in North Wales, South Wales and Mid-Wales? Has the right hon. Gentleman seen the Manpower Services Commission's review for 1980, which indicates that the proportion of unemployed under the age of 19 will be 20 per cent. in many parts of Wales? What on earth does the right hon. Gentleman intend to do for those young people?

I find it hard to take lectures on unemployment from a member of the Government who more than doubled unemployment in Wales. There were years during which the right hon. Gentleman was responsible for this matter when the figures were quite as bad. Indeed, they have not yet risen to the highest figure that we suffered under his Government.

On a point of order, Mr. Speaker. In view of the utterly complacent view of the Secretary of State about unemployment in Wales, I beg to give notice that I shall raise the matter at the earliest opportunity on the Adjournment.