asked the Secretary of State for Wales how many people are unemployed in Wales and in Clwyd; what were the figures for 1979; and by what percentage each of the totals has increased.

On 11 April 1985 there were 180,031 unemployed claimants in Wales and 24,186 in Clwyd. In April 1979 the claimant-based figure for Wales was 78,383, an increase of 129·7 per cent. A comparable claimant-based figure for Clwyd is not available, but in April 1979 the number of registrants unemployed was 12,070.

My luckless constituents at P.D. Cans of Deeside lost their jobs last month and are still shocked and angry. Why did that company fold up so speedily and mysteriously ? Is it perhaps a classic case of management error and over-extension of financial resources ? Did the company use Welsh Office grants to buy another company from receivership ? Does the Secretary of State agree that the closure of a factory with a 90-strong work force is just as important in human consequences as much bigger closures ?

The company received grants. I do not believe that the amount of grant that it received can have been critical in the decision on whether it went ahead with the acquisition of another company. But it was regrettable that that company failed. I find it hard to believe that the hon. Gentleman is criticising the fact that an application for selective financial assistance at an earlier stage was granted to the company after the application had gone to the Welsh Industrial Development Advisory Board.

Does my right hon. Friend agree that if the serious concern of the hon. Member for Alyn and Deeside (Mr. Jones) over unemployment is to be taken seriously, he will have to have Labour's policy document "Work for Wales" independently costed and tell us exactly how much his party will put up taxes to pay for it ?

I entirely agree. Any higher rates or taxes would be detrimental to jobs.

How many nurses, doctors and front-line staff will be made redundant in west Wales due to 90 beds being taken out of use at Llanelli, Carmarthen and Aberystwyth ? Will the right hon. Gentleman reconsider the position of the East Dyfed health authority, and give it the extra £1·5 million required to make sure that the services remain intact ?

There are more nurses, doctors and front-line staff in the Health Service than there were when the Government came into office. Considerable funds have been allocated to the health authorities in west Wales to deal with the problem of under-funding. Recent recalculation of Dyfed's requirements shows that further attention may have to be given to its particular under-funding problem. We are considering that matter at present.

When will the Secretary of State announce a full expansion of the Welsh Development Agency programme, with the money and resources to make it possible, to deal with those appalling figures ?

The Welsh Development Agency has carried out a massive programme under the Government since May 1979. It has spent some £270 million on factory building and related activities. It has built over 200 advance factories in Clwyd alone. At the moment about 12·5 per cent. of its factory space is vacant. It is also carrying out a substantial programme to encourage investment, particularly by the private sector.

Mr. Keith Best to ask question No 2: this is an open question.

In that case, Mr. Speaker, I do not propose to ask it.

asked the Secretary of State for Wales when he expects to complete his consideration of Delyn borough council's development strategy for Courtaulds' Greenfield plant following the announcement of the proposed closure of the plant.

asked the Secretary of State for 'Wales if he will introduce further measures to alleviate the impact of job losses resulting from the closure of Courtaulds' yarn factory at Wrexham.

My officials are discussing urgently with the local authorities, the company, the Manpower Services Commission and the WDA the contribution which each can make to tackling the situation. Those discussions will cover the Delyn borough council's development plan and the county council's action response.

Will my right hon. Friend seriously consider extending the Delyn enterprise zone to include the No. 1 site at Greenfields when that site is transferred to Delyn borough council ? Is he aware that the council will have great difficulty in attracting substantial private investment to develop that site without the financial advantages of an enterprise zone, particularly the 100 per cent. capital allowances for new buildings ?

We are having detailed discussions with all the authorities about their proposals. It would be wrong to anticipate the outcome of those discussions, especially as we are also still awaiting a full response from Courtaulds about the contribution that it can make.

I welcome my right hon. Friend's commitment to consultations, but will he also bear in mind that, if the closures go ahead, the extensive public funds invested in Courtaulds over the past few years should be clawed back ? Will he see that that is done ?

Clawback is always considered in such cases and I confirm that it will be on this occasion. However, I should tell the House that Courtaulds has agreed to second a senior executive and support staff to provide management expertise for the development of local business in the Delwyn area. I welcome that proposal, but it is, of course, only one of the many aspects of the problem that we have been discussing with Courtaulds. We shall continue to hold detailed discussions with the company.

In view of the reports that the Prime Minister has intervened personally with Sir Christopher Hogg about alternative employment, will the Secretary of State also intervene personally with the chairman of BP International in order to obtain a stay of execution for Llandarcy so that the work force may be given a decent period in which to work out alternative plans, instead of a mere month ?

I will certainly draw to the attention of the senior management of BP what the right hon. and learned Gentleman has said, but, as I told the Welsh Grand Committee last week, BP has set a notable example to other companies, including Courtaulds, with regard to the contribution that can be made in such circumstances. BP has committed itself in a number of ways to help create future jobs. It should be congratulated on the initiatives that it has already announced.

Order. I must draw the attention of the House to the fact that the question refers to Courtaulds Greenfield plant. I am afraid that I was confused by the names of Welsh towns.

What is the Secretary of State's reaction to the decision of the Select Committee on Welsh Affairs to launch an inquiry into the job losses both at Courtaulds and at BP Llandarcy ?

I am always most interested to see the work of the Select Committee.

When the Secretary of State congratulates BP on its initiative—

Order. No, that will not do —Courtaulds.

May I remind the Secretary of State that over 13,000 people are unemployed in the Deeside travel-to-work area and that there is a male unemployment rate of nearly 20 per cent.? The prospects for Flint, Holywell, Bagillt and Greenfield are very grim. The male unemployment rate in Flint and Holywell may approach 30 per cent. before long.

As I have said before, I have seen the chairman of Courtaulds and my right hon. Friend the Prime Minister has corresponded with him. I have initiated with the local authorities discussions of the kind that the hon. Gentleman seems to want. What is required at present is not another meeting chaired by me, but a conclusion of the detailed discussions now in progress.

asked the Secretary of State for Wales what new plans he has to deal with the unemployment problem in the Cynon Valley.

Within the Government's overall economic strategy, I shall continue to pay special attention to the need to sustain and develop industrial and manufacturing investment in areas such as the Cynon Valley.

Is the Secretary of State aware that Cynon Valley now has the highest male unemployment in Wales ? Is he further aware that at least two pits in my constituency are in jeopardy and that, if they close, male unemployment will be pushed up to 50 per cent.? In view of that horrific possibility, does the right hon. Gentleman intend to bring alternative employment to my besieged constituency ?

I am aware of the possibility of further pit closures in the area and of the level of unemployment there. That is why I devoted a considerable part of my speech at last Wednesday's sitting of the Welsh Grand Committee to spelling out our commitment to the valleys of Wales, including the Cynon Valley. I am sorry to say that I do not think that the hon. Lady was able to be there to hear my speech. Perhaps she will find time to read it.

Does my right hon. Friend agree that the most damaging action for the Cynon Valley, and any other part of the country, would be espousal of the Labour party's economic policy, which includes hostility to the European Community, control of pension funds, increasing Government borrowing, renationalisation and higher personal taxation ?

And the establishment of yet another talking shop to preside over the affairs of Wales.

Cynon Valley faces serious problems, as does the valley of Ogmore and Maesteg—

Order. I shall do my best to call the hon. Gentleman on a later question on that part of Wales.

asked the Secretary of State for Wales what are the latest figures for the number of unemployed people in Gwynedd; how this compares with the corresponding figures for 1979 and 1974; within the latest figures how many have been unemployed for over 12 months; and how many are under 25 years of age.

On 11 April 1985 there were 14,494 unemployed claimants in Gwynedd. Comparable figures for the same period in 1979 and 1974 are not available because of the move to claimant-based figures. In January 1985, 5,182 claimants had been unemployed for over a year and 5,713 claimants were aged under 25 years.

Is the Secretary of State aware that his refusal to give figures for 1979 and 1974 shows how the Government are cooking the books to avoid the consequences of their policies ? Is he further aware that his statement last Wednesday in the Welsh Grand Committee about an increase in the number of people in employment has no relevance for Gwynedd, as the Government's only policy for that county appears to be to build an east-running road to take young people out of the county as quickly as possible ? When will he have a commitment to Gwynedd such as he mentioned in connection with the valleys ?

I suppose that the hon. Gentleman and members of his party must be the only people in Wales who seriously believe that the building of a modern dual carriageway across north Wales to Gwynedd is bad for jobs and not good for economic prospects of the area. I hope he will proclaim that message to his electors, because I think that most of them will dismiss it as the rubbish that it is.

Does my right hon. Friend agree that the dualling of the A55 is the measure which is most likely to open up north-west Wales to greater employment prospects, just as the M4 has done for south Wales ? Does he further agree that construction work on highways is a good way in which to provide extra employment ? Will he ask our hon. Friend the Minister of State carefully to consider bypasses around the fine villages of the A5, as that would be an excellent means of producing greater employment ?

I shall do all of that. I cannot promise that we can get ahead immediately with all of the bypasses that my hon Friend requires. As he knows, we are conducting a massive road building programme for the general good of the area. I hope that he will draw the attention of local electors to the fact that Plaid Cymru believes that it should not go ahead.

This is the forgotten county. Why does the right hon. Gentleman not accept that, as long as Clwyd is wracked by high unemployment, it will be difficult to get major job projects into Gwynedd ? What will the right hon. Gentleman do to get work to the beleaguered community at Holyhead, where male unemployment is nearly 25 per cent. ? Why does he not acknowledge that Wales needs the expansion of the Welsh Development Agency budget ?

As Holyhead is a port on a main route to Ireland, I should have thought that it would be perfectly obvious that improvement of road communications to it is about the greatest single contribution that we can make.

asked the Secretary of State for Wales if he has any proposals for increasing the funding of intermediate treatment schemes for juvenile offenders in Wales; and if he will make a statement.

member, Sir. The response to the intensive intermediate treatment programme has not so far matched the funds we have set aside. The decrease in the 1985–86 provision compared with that for 1984–85 is merely a reflection of our estimate of likely take-up grant.

Is the Minister aware that the rising rate of some types of juvenile crime in Wales is causing real concern and that statistics show that detention centres, whether by short, sharp shock or otherwise, are failing to prevent youngsters from committing crime ? Is it not high time that the Government responded to the initiative of the intermediate treatment programme and provided proper funding for a real and successful alternative to custody, through intermediate treatment ?

The Government are in favour of non-custodial treatment, as the hon. and learned Gentleman knows. To make the position absolutely clear, I must say that although we have allocated £724,000 since 1983–84 for this particular programme, only £190,000 has so far been taken up in Wales. Nevertheless, two applications worth £206,000 are being considered and we shall announce the result of our consideration shortly.

Is my hon. Friend aware that last Saturday I visited Holyhead mountain and the scheme run by the National Association for the Care and Resettlement of Offenders in the community programme, and saw the work that is being done there ? Will he welcome the addition of 100,000 new places to the community programme, as it is an excellent way of helping ex-offenders to be rehabilitated back into society and to find work, and of finding work for the long-term unemployed in general ?

I welcome the developments to which my hon. Friend referred. It is not simply the Government who are active in this area through their intermediate treatment programme and urban programme, but local authorities. I am glad that Welsh local authorities have forecast that by 1984–85 expenditure will rise to £1 million compared with £489,000, which was committed in 1982–83.

Will the Minister request local education authorities to attach community policemen to all schools so that the relationship between schoolchildren and the police can be improved ? That could also form part of the drug abuse prevention programme.

As the hon. Gentleman knows, we are worried about drug abuse, and a campaign is being mounted by the health and social services departments. Regarding his point about the police and schools. on both the education and police sides a great deal is being done to prevent crime.

asked the Secretary of State for Wales what conclusions he has reached in relation to the recently published studies by the Land Authority for Wales on the availability of building land in South Glamorgan and in West Glamorgan; and what steps he now intends to take.

. The publication of the two studies marks a successful start for the new system of housing land availability assessments introduced in the Welsh Office circular 47/84. My officials are now studying the two documents and will be discussing the findings with the Land Authority for Wales.

As the studies of the Land Authority for Wales seem to substantiate the complaints of the House-Builders Federation and other builders' organisations, does my hon. Friend consider that those complaints of shortages of available building land are without foundation, or with considerable foundation ?

The land availability studies are a great step forward in getting the balance right. The land authority conducts them in conjunction with the local authorities and builders. I am sure that a better balance can be achieved by that method.

Will the Minister be wary of special pleading in this area in favour of building on green field sites ? Will he try to ensure that wherever practicable existing sites in older industrial areas are built on ?

There is no doubt about our commitment in that respect. We wish to conserve. We have a good example in the redevelopment of south Cardiff, and I pay tribute to the redevelopment that is taking place in Swansea.

asked the Secretary of State for Wales what is the present level of unemployment in Newport, Gwent at the latest available date; and how this compares with the figure in May 1979.

On 11 April 1985 the number of unemployed claimants in the Newport travel-to-work area was 12,838. Comparable figures for May 1979 are not available because of changes to travel-to-work area boundaries and the move to claimant-based figures.

Bearing in mind those horrific figures, will the Secretary of State say whether there is any truth in the reports this week that the Secretary of State for Transport proposes to increase tolls on the Severn bridge by 150 per cent.? Would that not be another serious blow to the economy of Wales, and would it not be especially riduculous, since the bridge is still afflicted by all manner of delays and restrictions ?

The hon. Gentleman is aware that there has just been a public inquiry and that my right hon. Friend the Secretary of State will announce his decision soon. It is ludicrous to suggest that the proposals put to that public inquiry would have the economic effect that has just been described. I am glad that the hon. Gentleman shares my view about the importance of the crossing, and does not agree with Plaid Cymru, which believes that it is yet another communication in Wales that should be destroyed in order to isolate the Welsh people.

Is it yet possible to estimate the number of jobs that were lost, or potential jobs that were forfeited, as a result of the miners' strike, which was so enthusiastically supported by the hon. Member for Newport, East (Mr. Hughes) ?

I can give no estimate. It clearly caused great damage to the Welsh economy. It cost the British Steel Corporation a large sum of money and, therefore, held up decisions on the investment for which the hon. Member for Newport, East (Mr. Hughes) keeps asking. In economic terms, there is no comparison between a small increase in the toll charge for the Severn bridge, which has not been increased since 1979, and the sort of damage encouraged by the hon. Gentleman during the miners' strike.

The Severn crossing is Wales's most important industrial artery. Has the Secretary of State fought against the proposed increase in tolls ?

I have not fought the policy. A reasonable increase in tolls for the first time since 1979 is a sensible proposal. I am pressing on—[Interruption.]

More costs.

Order. We often hear things that we do not like in this place.

This is a Government proposal, and I do not apologise for it in any way. I am ensuring that my right hon. and hon. Friends in the Department of Transport, with me, press on speedily with the study into a possible second crossing and improvements in road communications generally in Wales, which remain a high priority.

Although, as my hon. Friend must recognise, no one in Wales will be pleased if there is any increase in tolls, does he agree that it is much more important to complete the feasibility study quickly and to provide an adequate crossing to ensure good communica-tions across the Severn ?

I assure my hon. Friend that the consultants are getting on well with the feasibility study. They have announced the first stage, and are now investigating the detailed options. It is absurd to suggest that the increases proposed for charges on the Severn bridge will have a significant effect on transport costs along the M4.

asked the Secretary of State for Wales if he will provide details of house repair grants paid in (a) the city of Cardiff, and (b) Wales for the financial years 1974 to 1979 and 1979 to 1985, respectively.

Between 1974–75 and 1978–79, expenditure on housing grants of all types in Cardiff totalled £2·7 million. For the period between 1979–80 and 1984–85 the figure was £23·5 million. For Wales, the equivalent figures were £58 million and £283 million. Information about repair grants alone is not held centrally in the form requested by my hon. Friend.

Does my hon. Friend agree that those figures improved staggeringly under the Conservative Government as compared with the Labour Government ? Does he further agree that those sums, with council house sales, represent a massive transfer of public funds into the hands of the lower economic groups in society ?

My hon. Friend is absolutely right. We as a Government have a marvellous housing record. I can highlight the difference, in terms of expenditure, between the Government and the Opposition. During the last three years, total local authority spending under this Government was about 60 per cent. more than it was during the last three years of the Labour Government. As my hon. Friend has said, the tremendous transfer that council house sales involve is confirmation that we are satisfying the inherent desire of the Welsh electorate to own their own homes.

Will the Minister confirm that the purpose of the new Green Paper is to reduce public expenditure on housing by three quarters ? Given the relative poverty of Wales and the quality of its housing stock, would he not say that Wales should be exempted from the suggestions contained in the Green Paper ?

I do not accept the hon. Gentleman's interpretation of the Green Paper. It does not deal with the amount of housing finance that will be available in future. As I made clear, the purpose of the Green Paper is to target rather better the grant system so that more grants are made available for houses that are in need of improvement and for people who are in need. The object of the loan system is to enable people to improve their homes to a higher standard and to enable them to borrow according to the Green Paper system—that is, from authorities rather than from building societies if they are unable to command credit from the building societies or the banks.

Is my hon. Friend aware that the Opposition are plagiarising not only the council house sales policy of the Conservative part but also our policy on home improvement grants ? Has my hon. Friend read the Opposition's latest policy document in which they pledge themselves to reverse their policy of running down improvement grants, a policy which they so successfully implemented when they were last in office ?

The Opposition can learn a great deal from our example. To revert to the key question which sparked off this discussion, I highlight the fact that in 1978 about 296 grants were given in Cardiff. This has to be compared with 1984, when about 2,745 grants were given in Cardiff. As for the comparative figures for Wales, 5,931 grants were made in 1978, whereas grants totalled 29,978 in 1984. Those figures speak for themselves.

Does the Minister appreciate that his means-tested loan proposals, which are outlined in the Green Paper, are not regarded as a serious attempt to tackle the deteriorating standard of housing in Wales ? It is yet another attempt to take Wales back to the 1930s. If an imaginative scheme is not produced shortly, the worst fears of the chief officers group will be realised.

I challenge the hon. Gentleman to produce a more imaginative scheme than is put forward in the Green Paper. It provides a method to deal with both dereliction and the need for improvement in Wales. As the hon. Gentleman and his right hon. and hon. Friends know, the dereliction and the need for improvement existed long before the Government came to office. It is this Government who have taken this initiative over renovation.

asked the Secretary of State for Wales if he will make a statement on the incidence and nature of defects in former council houses of the Smith type in Wales.

There are about 70 Smith houses in private ownership in Wales. All are in Cardiff. It has been known since 1948 that Smith houses could be subject to minor cracking. The Building Research Establishment recommended periodic inspection, but said that there was generally no need for urgent action so long as good structural condition was maintained.

May I quote one phrase from a letter from my constituent, Mr. Evans of Gabalfa, the owner of an affected home ? He said:

"Smith houses are now not mortgageable and will remain so until appropriate action is taken."

In a letter dated 14 May I told my hon. Friend how Cardiff city coucil could seek a designation under section 12. It has to give 28 days' notice that it proposes such a designation and my right hon. Friend the Secretary of State has two months in which to object.

If the Government's record on housing is so good, can the Minister explain why half the houses in my constituency are unfit for human habitation ?

Yes. It is because no action was taken before this Government came into office. The hon. Lady will know that, as a result of our initiative, there were about 141,000 applications for improvement grants in Wales. We know only too well that the problem existed long before we came into office in 1979.

rose —

Order. I am sure that the hon. Member for Cynon Valley (Mrs. Clwyd) was referring to Smith houses. I call Mr. Best and I hope that he will refer to Smith houses.

I acknowledge that there are difficulties about the sale of Smith houses, but will my hon. Friend welcome the somewhat ungainly, but well-practised, posture of the Labour party in standing on its head over the sale of council houses ? Does he think that there is any possibility that the Labour party may yet become a party that champions the individual instead of always championing local authorities ?

There is always hope for Labour Members, but I understand my hon. Friend's despairing feeling.

asked the Secretary of State for Wales what new measures he proposes to take as a result of the continuing rise in unemployment in Wales.

Our policies for promoting industrial investment are creating significant numbers of new jobs in Wales. For example, as I reported to the Welsh Grand Committee last week, over the previous 12 months, investment decisions have been announced for Wrexham which are likely to produce some 1,500 new jobs, including the Sharp project, which was announced after the news of the Courtaulds closure.

I am sure that the Secretary of State will agree that unemployment keeps rising. In view of the staggering job losses that Wales has had to endure in the past few weeks and the fact that local authorities have great difficulty in attracting industries to Wales and in partaking in industrial development, will the right hon. Gentleman consider seriously whether he can disregard, for target expenditure purposes, money spent by local authorities for bona fide industrial development ?

I note what the hon. Gentleman says about the role of local authorities. They have an important role, though he was wrong to claim that the Sharp investment was the result of an initiative by his local council, which visited Japan after I discussed the subject in October last year. I cannot hold out any prospect of a special exemption, but local authorities have a good deal of scope for investing in the new industrial estates and new building as part of their general ordering of priorities.

As the Secretary of State and his ministerial colleagues are always boasting about the housing programme, can the right hon. Gentleman tell us how many building workers in Wales are unemployed ?

If the hon. Gentleman will put down a question on that subject, I will answer it. I does not arise directly from the question on the Order Paper.

Is it not a fact that the record of the Welsh Development Agency in this area has been extremely good ? Will my right hon. Friend do all that he can to assist the agency and similar bodies ?

As I have already pointed out, the agency has carried out a massive factory building programme. Its emphasis is now switching to purpose-built factories, which are more and more in demand, rather than advance factories, and to stimulating private sector investment. But yes, there are a large number of vacant WDA factories and our task is to get them fully occupied.

Will the Secretary of State admit that his policies are creating more and more unemployment in Wales ? Does he not realise that there are now 250,000 people out of work in Wales ? Does he know that today the House received a deputation from St. John's colliery in Maesteg, where 830 jobs may be lost ? We are already suffering from a male unemployment rate of 25 per cent. How can those people find jobs, given the policies that the Secretary of State is pursuing ? Last weekend my hon. Friend the Member for Alyn and Deeside (Mr. Jones) presented a document on jobs and industry to the Wales TUC meeting in Llandudno. The right hon. Gentleman would be wise to read it and to take a leaf out of my hon. Friend's book.

The hon. Gentleman is wrong, because there are not 250,000 people unemployed. Thankfully, I can say that the figure is 180,031. However, unemployment is, of course, a serious problem and that is why we are making so much effort to encourage new investment. I am glad to say that a very considerable part of that new investment is going to the Bridgend area and that the hon. Gentleman's constituents are benefiting from it.

Is my right hon. Friend aware that the WDA's current building resources are fully committed ? Will he seriously consider allocating extra funds so that it can erect more purpose-built factories and so that it can implement the plan to provide six business counsellors in different parts of the Principality ?

I have already announced that we will carefully consider the WDA's plans in the light of the Courtaulds closure. However, my hon. Friend will know that 58 units totalling 321,000 sq ft are vacant and available for letting in WDA factories in the county, and that its advance factory programme for 1985–86 includes several factory projects in the county.

If the Secretary of State believes so strongly — as he said earlier — that the A55 road improvements will have the effect of reducing unemployment in north and north-west Wales, when will he announce a north-south road route in Wales as well as an east-west route through central Wales, as that would presumably have a significant effect on reducing unemployment throughout the Principality ?

The hon. and learned Gentleman must use the route frequently, and he will agree that the new road link across to Telford represents a notable improvement in the links with the motorway network. As he knows, there are further plans to link mid-Wales into that motorway network. That must have a higher priority than the north-south road.

When the Secretary of State last attended the Welsh Grand Committee he said that several thousand jobs would be lost in the mining industry in the next year or two. Will he tell us what the figure is ? After all, there are only about 20,000 jobs left in the industry. Does that anonymous and invisible body, NCB (Enterprise) Ltd. intend to create several thousand jobs as well during the same time scale ? I should like to know what progress that organisation is making in creating jobs in our mining community.

The hon. Gentleman knows that that organisation has already started work. I understand that one new industrial concern has already been committed as a result of its operations in Blaenau Gwent, and that a significant number of first applications under the scheme have been made in Wales. Instead of criticising such a welcome initiative, I should have thought the hon. Gentleman would be praising it and would be glad that it has been established.

For several years the M4 has run through Glamorgan, yet the adjacent valleys suffer from high and increasing unemployment. Furthermore, the A55 has been modernised in many parts of Clywd, yet that area too suffers from chronic unemployment. What possible basis can there be, therefore, for assuming that the A55 alone will solve the unemployment problems of Gwynedd ? Is it not a fact that this policy is the only one that the right hon. Gentleman has, and that he is using it to camouflage his lack of a solution to the problem of unemployment ?

I am not for a moment suggesting that that road is the only factor in encouraging industrial development. However, if the hon. Gentleman took the trouble to make the slightest study of what has happened along the M4 he would know that many new, modern, high-tech industries are establishing themselves along that link. Everyone who has looked at the problem seriously recognises that the construction of modern roads can make a major contribution. The hon. Gentleman is apparently the only person to think otherwise.

Will my right hon. Friend mention to the Chancellor of the Exchequer two further measures which would help to stimulate employment in Wales ? The first is to give greater access to finance to the smallest of businesses, and the second is to build on the welcome cut made in the Budget of the cost of employing people in unemployment black spots such as Holyhead.

I shall draw those remarks to my right hon. Friend's attention. I am sure that my hon. Friend will welcome the measures announced in the Budget, although we have not yet seen the benefit of them. I share my hon. Friend's view.

Earlier, the Secretary of State commended BP for its local employment initiatives in the Llandarcy area. Will he consider those initiatives in the context of the record quarterly profit figures announced last week by BP ? Does he agree that those profits were made at the expense of jobs in the area ? Does he further agree that the sums involved at Llandarcy are peanuts and an insult to the local community ?

A successful company that makes profits does not do so at the expense of jobs. If companies are to continue to provide jobs they must succeed in making profits, because that permits investment. The measures already announced by BP are welcome. They are exceptional and I hope that Courtaulds and other companies will follow its example.

The Courtaulds and BP closures and the colliery redundancies are a grave development for the Welsh economy. Does the right hon. Gentleman accept that it was foolish of him to agree to cuts in regional aid for Wales ? Will he reconsider that policy ? Does he recognise that his policies are now in ruins and that he should come to the House with plans to help the Welsh economy ?

Our changes in regional policy concentrate help where it is most needed. The hon. Gentleman must explain how his policy document, which calls for greater selectivity and yet makes the whole of Wales a development area, can be reconciled with the needs of other areas in England and how it can avoid severe knock-on consequences which will blow his policies out of the water.

asked the Secretary of State for Wales how many new factory units and how many square feet of factory space have been built by the Welsh Development Agency in the past five years.

Between April 1980 and March 1985 inclusive the Welsh Development Agency completed 928 advance factory units, 11 bespoke factory units and 45 bespoke factory extensions, totalling over 6·4 million sq ft.

Does my right hon. Friend think that sufficient factory units have been built to meet future demand ?

A delicate balance has to be found between the need to build factories in special areas where the private sector might not be involved, and the need not to destroy the attractions of building factories for the private sector. The current vacancy rate is about 121/2 per cent., which is not unreasonable at this stage in the programme. The Welsh Development Agency, sensibly, is concentrating on priority areas and on the need for purpose-built factories to meet the needs of particular companies.

asked the Secretary of State for Wales what percentage of the registered labour force in Wales were employed in coal mining, iron and steel manufacture and textiles in 1975 and in the latest year for which figures are available.

In September 981 the percentages of the civilian working population employed in coal mining, iron and steel manufacture and textiles were 2·7 per cent., 2·5 per cent. and 0·7 per cent. respectively. The corresponding figures for 1975 were 3·4 per cent., 6·2 per cent. and 1·3 per cent. Up-to-date figures from the 1984 census of employment will be published in the November Employment Gazette.

Does my right hon? Friend accept that, futile though it would be for the Government to attempt to arrest the process of conversion from traditional to more modern industries, it would be wrong for them to leave the provision of replacement jobs in the new technologies solely to market forces ?

No one can say, after hearing the figures for expenditure by the WDA, or the figures that I have given to the House frequently on selective financial assistance, that we have left such matters solely to market forces. Massive Government expenditure has taken place in Wales on building new roads, improving infrastructure and attracting inward investment. I agree that a proper balance must be struck. However, we must be careful that Government expenditure is not so high that it increases taxes and the burdens on the private sector, which creates the wealth.

asked the Secretary of State for Wales what specific plans he now has to reduce unemployment in the county of Dyfed, and in Ceredigion and Pembroke, North in particular; and if he will make a statement.

Prospects for the areas concerned will benefit from the continuing work of the Government and the statutory agencies in infrastructure development, from regional industrial assistance and from aid from European Community sources.

I am sure that the Secretary of State is well aware that the number of people unemployed in the Teifi Valley is the highest in percentage terms for many years. As so many people are unemployed in the Teifi Valley catchment area, will the right hon. Gentleman consider including north Pembroke down to Fishguard in the mid-Wales development area ?

On a number of occasions we have considered the extension of the mid-Wales development area — established under my predecessor — but have concluded that it would not be of benefit. As the hon. Gentleman knows, the various agencies are working together on the development of the Teifi Valley initative, which was launched last year, and work is well advanced on the provision of a business centre at Newcastle Emlyn that will involve counselling in business training. Of course, Mid-Wales Development will continue to attach priority to the needs of that area.

asked the Parliamentary Under-Secretary of State answering in respect of the Arts if the Minister for the Arts will increase the allocation in the Arts budget for Welsh language activities.

The Welsh Arts Council and not my right hon. and noble Friend determines the distribution of the grant it receives from the Arts Council of Great Britain. That grant was increased to £7·14 million in 1985–86, an increase of 3·2 per cent. over the 1984–85 figure.

Does the Under-Secretary not realise that an increase of just over 3 per cent. is wretchedly mean ? Is he aware that the consequence is that many groups and companies wishing to perform plays in the Welsh language are now having to cut their programmes, which is causing real, widespread and justified resentment throughout Wales ?

I know that the figure is not as high as many people would like. However, I also know that the public funding of the arts should be a matter of seeking priorities and giving the money to the most valuable activities, and there is no escaping that.

Does my hon. Friend realise that a large number of monoglot English-speaking people living in Wales wish to learn the Welsh language ? Is not one of the most attractive and encouraging ways of doing that by seeing the arts performed in the Welsh language ?

Primarily the Welsh Office budget supports the Welsh language qua Welsh language, and does so generously. The principle behind support for the arts has always been that they should not be supported simply because they are in Welsh, but because they are of outstanding quality. I think that there has always been a great deal to be subsidised on that basis.

Does the Minister accept that, with inflation running at 5 or 6 per cent., an increase of only 3 per cent. means a reduction in real support for Welsh language productions ? Does he further accept that there is a universal feeling on both sides of the House that such productions are worth supporting ? Will he inquire whether more funds can be made available for that purpose ?

I shall report what the hon. Gentleman has said to my right hon. and noble Friend. There is no question but that arts funding is tight. At a time when all programmes are under pressure, I think that my right hon. and noble Friend has secured a reasonable settlement this year.

asked the Parliamentary Under-Secretary of State answering in respect of the Arts what representations the Minister for the Arts has received from tobacco product manufacturers about tobacco sponsorship of the arts; and if he will make a statement.

None, Sir.

Can my hon. Friend confirm that he welcomes sponsorship for the arts from tobacco product manufacturers ?

The Government's decision is that the arts are entirely free to seek sponsorship from wherever they can find it. It is very welcome if public or other companies wish to support the arts, and much valuable activity is supported in that way.

Is not this begging-bowl approach to sponsoring the arts based on this Government's almost malicious contempt for culture ? Is that not to be rejected by the British people ? Why do the Government not rescind some of the tax reductions that they have given in capital transfer and capital gains tax during the past few years and channel that money into supporting the arts, thereby dealing with the contempt and disrespect for the Government felt by many people who perform and support the arts ?

I thought that the hon. Gentleman, who is a fair man, was having some difficulty in keeping a straight face as he asked that supplementary question. Labour Members often criticise the Government for not cutting taxes enough, though when it suits them they criticise us in the opposite direction. There is no contempt for culture on the part of the Government, and real term support for the arts has increased since 1979.

I suggest that there is a great deal of contempt for culture when the Minister can say that it does not matter which bodies provide money for the arts so long as money comes forward. Is it not a fact that, were it not for the cuts that the Government are imposing on the arts, and the absence of proper public funding, we should not require this additional fl million or so from cigarette and tobacco advertising ? Is it not also a fact that total public expenditure on the arts, compared with the amount coming to the arts from tobacco advertising, is as 100,000 to one ? An increase of only one hundred thousandth in public expenditure would enable us to do without such meretricious advertising.

The hon. Gentleman is taking a different position from that which he normally takes on this issue, because we are normally agreed that the search for additional sources of funds for the arts — from businesses and anywhere—represents a useful addition to the pluralistic source of funds. If the hon. Gentleman is saying that his party would make it illegal for tobacco companies or companies with interests in tobacco—which covers a wide range of companies—to support the arts, or to support other things, he should say so.

asked the Parliamentary Under-Secretary of State answering in respect of the Arts if he will estimate the amount of foreign currency earned by the performing arts both from tours abroad and from performances within the United Kingdom during the last financial year.

The information is not available. However, my right hon. and noble Friend is commission-ing a study of the economic impact of the arts by the Policy Studies Institute, which should provide a relevant assessment.

Does my hon. Friend accept that the foreign currency earnings of such tours are, in the opinion of everyone connected with the arts, very substantial indeed ? Will he do everything possible to encourage the benefits for the nation, which are both financial and cultural, from tours of the performing arts ?

Yes, and I can confirm that the great majority of such tours turn out in the end to be money-spinners as well as important cultural activities, which is their fundamental purpose. The study, which is being jointly funded with the Gulbenkian foundation, is aimed at providing some measurement of the scale of the money involved, and that will be useful.

We look forward to seeing the results of the study. Is the hon. Gentleman aware that it is important to bear in mind the number of tourists who come to this country — as anybody can see when queueing at box offices—to enjoy our cultural heritage ? It is vital for us to retain and advance that.

I entirely agree with the right hon. Gentleman, though, as I have sometimes made myself unpopular in the House by saying, I do not believe that we should try to defend the arts primarily as a source of tourism. The same applies to any economic activity. Tourists come to see the commercial theatre just as much as the subsidised theatre. Down that route lies an argument for the withdrawal of subsidy from many minority, specialist and fringe artistic activities.

asked the Parliamentary-Secretary of State answering in respect of the Arts whether it is policy of the Minister for the Arts to discourage tax debtors from making applications in excess of an overall token figure covering annual discharges in kind of capital transfer tax liabilities which had previously been established administratively, for the statutory provision to be brought into effect whereby pre-eminent objects may be accepted in satisfaction of such tax liabilities; and if he will make a statement.

There has been no recent change, but, as my right hon. and noble Friend said recently in another place, the Government are looking again at the arrangements whereby the cost of acceptances in lieu of tax is met from the Votes of our respective Departments.

Can the hon. Gentleman clarify the reason for so prolonged a delay ? Has his noble Friend consulted the Museums and Galleries Commission, which adminis-ters the scheme ? If not, can the Under-Secretary give an explanation for that unhappy omission ?

I will check and write to the hon. Gentleman as to exactly who has been consulted. I hope that there will not be a long delay. I believe that the studies should be completed within the next month or two. It is an important matter to get right.

Is my hon. Friend aware that his last remarks are not reassuring, because a month or two can soon become three or four ? Is he aware that it is vital that the pledge that our noble Friend gave in another place should be redeemed at the earliest possible opportunity ? Does my hon. Friend agree that as our noble Friend is also a Treasury Minister, he should be in a happy position to resolve this quite difficult problem ?

I note the remarks of my hon. Friend, who, I am sure, will wish to pay tribute to the Government for again this year finding a large sum, £25 million, for the rescue of the three great houses and for finding additional funds the year before for the support of Calke. In other words, I am sure that as well as pressing my noble Friend, he will want to give credit where credit is due.

Surely much of the tax arrangement is purely notional and has the effect of restricting the possibility of works of art passing into public hands. The time has come to stop this nonsense. The traffic in art is becoming positively obscene. Is the Minister aware that the National gallery could afford only about one third of the canvas area of the last Turner to be sold because of the level of its annual grant ? One way forward, even for this Government, would be to remove the ceiling and to alter the restrictions.

It is a new degradation of language to apply obscenity, which is often misused, to trade in works of art. We are not talking about notional money. The hon. Member for Workington (Mr. Campbell-Savours) argued that the cut in taxes was a disgrace. If taxes are cut by the giving of tax allowances, it is real money and not notional money that is not taken in tax.