[PDF]CONFIDENTIAL B November 1979 Further to my...
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B W Y D D F A GYMREIG
W E L S H OFFICE
GWYDYR HOUSE
G W Y D Y R HOUSE
WHITEHALL LONDON SW1A 2ER
WHITEHALL
Tel. 0 1 - 2 3 3 3 0 0 0 (Switsfwrdd) ( |iri 0 1 - 2 3 3 8545 X ell Union)
Tel. 0 1 - 2 3 3 3 0 0 0 ''Switchboard) 0 1 - 2 3 3 854 5 ''Direct Line,
Oddi
From The Secretary of State for Wales
wrth
Ysgnfennydd
Gwlado!
Cymru
CONFIDENTIAL
B
LONDON SW1A 2ER
November 1979
V
F u r t h e r t o my S e c r e t a r y o f S t a t e ' s l e t t e r o f 5 November, I am
now sending t o you speaking n o t e s a g a i n s t q u e s t i o n s f o l l o w i n g
my S e c r e t a r y o f S t a t e ' s proposed s t a t e m e n t n e x t Monday. I
would be g r a t e f u l f o r your comments b e f o r e t h e end o f t h e week.
The speaking n o t e s have been d r a f t e d on t h e assumption t h a t o u r
Secretary o f State's statement w i l l s p e c i f i c a l l y r e f e r t o
g r a t i n g o f SDA s t a t u s t o t h e S h o t t o n T r a v e l - t o - W o r k a r e a .
Copies o f t h i s go t o t h e P r i v a t e S e c r e t a r i e s t o t h e r e c i p i e n t s
o f Mr Edwards' l e t t e r o f 5 November.
Private Secretary
P e t e r S t r e d d e r Esq
Private Secretary t o the
Rt Hon S i r K e i t h Joseph B t MP
Department o f I n d u s t r y
Ashdown House
123 V i c t o r i a S t r e e t
LONDON
SW1E 6RB
CONFIDENTIAL
SECRETARY OF STATE'S SHOTTON ANNOUNCEMENT - ADDITIONAL SPEAKING NOTE
1.
S p e c i a l Development Area s t a t u s f o r t h e S h o t t o n T r a v e l - t o - w o r k
area
I know t h e i m p o r t a n c e w h i c h i s a t t a c h e d t o t h i s i n t h e a r e a .
Special
Development Area s t a t u s w i l l b r i n g t h e maximum l e v e l o f r e g i o n a l
a s s i s t a n c e t o t h e whole o f Deeside and t h i s , t o g e t h e r w i t h t h e r e c e n t
u p g r a d i n g o f t h e Wrexham T r a v e l - t o - w o r k area t o SDA s t a t u s , means
t h a t t h e areas i n Wales where n e a r l y 80% o f t h e S h o t t o n w o r k e r s w i l l have S p e c i a l Development Area s t a t u s .
Given t h e o v e r a l l
live
r e d u c
t i o n i n t h e number and s i z e o f A s s i s t e d Areas t h i s s h o u l d be a power
f u l i n c e n t i v e t o a t t r a c t i n g new developments i n t o t h e a r e a .
2.
Resources a l r e a d y
committed
The Welsh Development Agency have a l r e a d y s p e n t o r committed
£3.6 of
m i l l i o n and BSC ( I n d u s t r y ) L t d £3.1 m i l l i o n on t h e development
t h e Deeside I n d u s t r i a l Park.
I n a d d i t i o n t h e Agency have under
t a k e n a programme o f i n d u s t r i a l e s t a t e development and f a c t o r y d i n g i n t h e w i d e r S h o t t o n and Wrexham T r a v e l - t o - w o r k a r e a s . of
b u i l
This i s ,
course, i n a d d i t i o n t o t h e e x p e n d i t u r e i n c u r r e d by l o c a l
a u t h o r i t i e s i n d e v e l o p i n g t h e i r own e s t a t e s i n t h e a r e a .
3.
Resources s p e c i a l l y earmarked f o r S h o t t o n
/Over t h e n e x t 4 y e a r s / £15 m i l l i o n w i l l be earmarked f o r work i n
the
area a f f e c t e d by t h e S h o t t o n s t e e l c l o s u r e .
CONFIDENTIAL
4.
The Welsh Development Agency's o v e r a l l
The Agency's r e s o u r c e s
resources
have had t o t a k e t h e i r share o f t h e r e c e n t
reduction i n public expenditure
but i t i s
r i g h t t h a t s t e e l c l o s u r e areas s h o u l d have p r i o r i t y . t h e Agency's p r o p o s a l s
I am a v / a i t i n g
on t h e d i s t r i b u t i o n o f t h e i r a l l o c a t i o n f o r
n e x t y e a r between t h e i r v a r i o u s f u n c t i o n s b u t I would e x p e c t
f a c t o r y b u i l d i n g t o f i g u r e very prominently 5.
i n their thinking.
How w i l l t h e Agency spend t h e earmarked r e s o u r c e s
T h i s w i l l be a m a t t e r f o r d i s c u s s i o n w i t h t h e Agency.
and when?
But the f i r s t
o b j e c t i v e /as my s t a t e m e n t made c l e a r / i s t o g e t ahead w i t h a l l
speed w i t h t h e development o f t h e Deeside I n d u s t r i a l Park.
There
a f t e r t h e Agency w i l l u n d e r t a k e f u r t h e r s i t e development and p r o v i
s i o n o f f a c t o r i e s i n t h e a r e a a f f e c t e d by t h e c l o s u r e .
6.
How much f a c t o r y space w i l l be p r o v i d e d ? e x p e n d i t u r e be i n 1980/81?
What w i l l
the t o t a l
T h i s w i l l be f o r d i s c u s s i o n w i t h t h e Agency. We w i l l need t o t a k e
i n t o account o t h e r developments w h i c h we hope w i l l come from t h e
private sector.
7.
Role o f t h e p r i v a t e
sector
We a r e a n x i o u s t o secure t h e maximum p o s s i b l e p r i v a t e s e c t o r p a r t i c i
p a t i o n i n t h e p r o v i s i o n o f i n d u s t r i a l s i t e s and f a c t o r i e s . D i s c u s
s i o n s t o t h i s end a r e a l r e a d y under way i n v o l v i n g my own and o t h e r
Departments and t h e v a r i o u s Government A g e n c i e s . The aim w i l l be
t o enable t h e p r i v a t e s e c t o r t o p l a y a f u l l p a r t i n t h i s k i n d o f
development.
CONFIDENTIAL
8.
How does t h i s compare w i t h t h e r e s o u r c e s g i v e n t o Ebbw Vale
and C a r d i f f ?
The s p e c i a l programmes b e i n g u n d e r t a k e n by t h e Agency f o r t h e Ebbw
Vale and C a r d i f f s t e e l c l o s u r e areas a r e w e l l under way and t h e s e
will
c o n t i n u e and w i l l
n o t be a f f e c t e d by demands on t h e agency f o r
d e a l i n g w i t h t h e S h o t t o n area.
What we have l e a r n e d from t h e
C a r d i f f and Ebbw Vale e x p e r i e n c e i s t h a t we have t o a d j u s t t h e p r o
grammes t o t h e s p e c i a l needs o f each area and t h e i n f r a s t r u c t u r e
already available. the
I n t h e case o f S h o t t o n we a r e c o n c e n t r a t i n g on
development f i r s t and f o r e m o s t o f one l a r g e i n d u s t r i a l
t h i s i s our f i r s t p r i o r i t y .
s i t e and
I n a d d i t i o n i t v / i l l be i m p o r t a n t as I
have s a i d t o secure t h e maximum p o s s i b l e p r i v a t e s e c t o r i n v o l v e m e n t
i n new f a c t o r y
developments.
9.
W i l l t h e earmarked r e s o u r c e s f o r S h o t t o n be a t t h e expense o f
o t h e r areas i n Wales?
No.
The money /£15 m i l l i o n / t h a t I have earmarked f o r S h o t t o n i s
q u i t e s e p a r a t e f r o m t h e r e s t o f t h e Agency's a l l o c a t i o n and i s n o t
a t t h e expense o f o t h e r a r e a s .
The Agency has, o f c o u r s e , had t o
t a k e i t s share o f t h e r e c e n t p u b l i c e x p e n d i t u r e r e d u c t i o n s .
Inevitably there w i l l
be some s p r e a d i n g o u t o f t h e Agency's o v e r a l l
programme and t h e p r i o r i t i e s . w i t h i n i t a r e a m a t t e r f o r t h e Agency.
The s p e c i a l WDA programmes f o r C a r d i f f
and Ebbw V a l e w i l l , o f
course, c o n t i n u e .
10. Persons r e g i s t e r i n g f o r employment; Number o f j o b s needed
Going on p a s t e x p e r i e n c e i n o t h e r s t e e l c l o s u r e areas i n Wales,
about 80% o f redundant w o r k e r s r e g i s t e r f o r employment i n t h e f i r s t
CONFIDENTIAL
few months a f t e r c l o s u r e .
The a c t u a l number w i l l , o f c o u r s e ,
depend on s e v e r a l f a c t o r s i n c l u d i n g t h e age o f t h e r e d u n d a n t
workers:
about 65% o f t h e S h o t t o n w o r k e r s a r e aged under 50 and
about 22% a r e aged o v e r 55.
/Only i f pressed.
I know o f t h e s e c a l c u l a t i o n s by t h e
local
a u t h o r i t y b u t these depend on a v a r i e t y o f assumptions and I b e l i e v e
t h e y g i v e much t o o gloomy a p i c t u r e /
11.
Special resources
for training
The Manpower S e r v i c e s Commission a r e s a t i s f i e d t h a t t h e
facilities
a v a i l a b l e f o r t r a i n i n g i n Clwyd, i n c l u d i n g t h e Wrexham S k i l l c e n t r e
and t h e K e l s t e r t o n C o l l e g e o f F u r t h e r E d u c a t i o n , o r a t c e n t r e s
w i t h i n d a i l y t r a v e l l i n g d i s t a n c e e l s e w h e r e , a r e s u f f i c i e n t t o cope
w i t h t h e l i k e l y demands f o r r e t r a i n i n g .
12.
W i l l BSC ( I n d u s t r y ) p r o v i d e a d d i t i o n a l
help?
BSC ( I n d u s t r y ) a r e a l r e a d y d e v e l o p i n g about 150 acres o f t h e l a n d t h e y
own
a t Deeside I n d u s t r i a l Park w h i c h a d j o i n s t h e Agency's l a n d and
have a l r e a d y committed o v e r £3 m i l l i o n f o r i t s development. doubt t h e y w i l l be s t e p p i n g up t h e i r e f f o r t s t o a t t r a c t i n d u s t r y i n t o the 13.
I have no
incoming
area.
EEC A s s i s t a n c e
There has a l r e a d y been s u b s t a n t i a l h e l p from t h e EEC f o r p r o j e c t s i n
Clwyd amounting so f a r t o n e a r l y £12m and t h e r e i s more i n t h e p i p e
line.
ERDF w i l l c o n t i n u e t o be a v a i l a b l e and i n a d d i t i o n we w i l l be
l o o k i n g t o t h e p o s s i b i l i t y o f s u p p o r t from t h e non-quota s e c t o r o f
ERDF as w e l l as h e l p from t h e European Coal and S t e e l Community.
CONFIDENTIAL
14.
What i s b e i n g done f o r Wrexham?
The Agency w i l l be c o n s i d e r i n g t h e need f o r a d d i t i o n a l for
provision
t h i s area where about 9% o f t h e S h o t t o n w o r k f o r c e l i v e .
But
Hon Members w i l l know t h a t t h e r e a r e a l r e a d y over 2,000 j o b s i n
the
p i p e l i n e f o r t h e Wrexham T r a v e l - t o - w o r k area as w e l l as
n e a r l y 1,000 i n t h e S h o t t o n T r a v e l - t o - w o r k a r e a .
15.
Help f o r l o s s o f r a t e a b l e v a l u e
There i s an a u t o m a t i c a d j u s t m e n t mechanism i n t h e Rate
Support
Grant system w h i c h t a k e s account o f l o s s e s o f r a t e a b l e v a l u e ,
though
i t t a k e s more t h a n a year t o come t h r o u g h .
16.
Improved r o a d communications
Progress has a l r e a d y been made on i m p r o v i n g road communications;
for
example, a d u a l c a r r i a g e w a y r o u t e has a l r e a d y been completed
Queensferry
t o Lea-by-Backford
from
w h i c h w i l l become t h e w e s t e r n
t e r m i n a l o f t h e M56 when t h e e x t e n s i o n works now under way a r e com
p l e t e d i n 19 80. scheduled 17. The
Other works a r e i n t h e p i p e l i n e w i t h
starts
from 19 80 onwards.
W i l l Bersham C o l l i e r y be a f f e c t e d ?
coke ovens a t S h o t t o n a r e n o t i n c l u d e d i n t h e c l o s u r e programme,
Thus t h e f u t u r e o f Bersham w i l l n o t be a f f e c t e d on t h a t account.
18.
Coal t o o i l l i q u e f a c t i o n p l a n t a t P o i n t o f A i r
As Hon
Members w i l l know from t h e answer g i v e n by my
Rt Hon
Friend
the
S e c r e t a r y o f S t a t e f o r Energy on 8 November, t h e Government and
NCB
have s e l e c t e d P o i n t o f A i r C o l l i e r y as t h e most s u i t a b l e
site
for
t h e proposed two o i l - f r o m - c o a l p i l o t
con
plants.
He w i l l be
s i d e r i n g a conrnitmerrt t o c o n s t r u c t i o n o f t h e p l a n t s i n t h e l i g h t the
d e s i g n study expected
next s p r i n g .
of
I t i s t o o soon t o say any
t h i n g more a b o u t t h i s p r o j e c t a t t h i s stage b u t i t s c o n s t r u c t i o n and
o p e r a t i o n c o u l d o f f e r a d d i t i o n a l employment i n Clwyd, q u i t e a p a r t
from p l a y i n g a v e r y i m p o r t a n t r o l e i n t h e o v e r a l l energy
research
programme.
19.
A t a s k f o r c e f o r Shotton
My Department has a l r e a d y been i n v e r y c l o s e t o u c h w i t h a l l t h e
i n t e r e s t s i n v o l v e d on a c o n t i n g e n c y b a s i s and I w i l l maintained.
ensure t h i s i s
I f t h e r e i s a case f o r more f o r m a l arrangements I w i l l
c e r t a i n l y consider i t .
20. We
Why
has t h e Government w a i t e d u n t i l now
s h o u l d h a r d l y be expected
taken t h e i r d e c i s i o n .
f o r action?
t o do a n y t h i n g u n t i l a f t e r t h e BSC
My n o b l e f r i e n d t h e L o r d Trenchard
had
made i t
c l e a r on 12 J u l y t h a t t h e Government would be g i v i n g u r g e n t
c o n s i d e r a
t i o n to upgrading
S h o t t o n and r e v i e w i n g t h e p o s s i b i l i t i e s o f p r o v i
d i n g h e l p f o r new
f a c t o r y b u i l d i n g - t h i s i s p r e c i s e l y v/hat we
done.
have
21.
The
proposed h e l p f o r S h o t t o n i s
inadequate
No one w i l l deny t h e s e r i o u s blow t h i s c l o s u r e i s t o t h e area. •
the
1
"
1
•
r i g h t c o n d i t i o n s f o r s u c c e s s f u l redevelopment a r e t h e r e as
been demonstrated
a l r e a d y by t h e success o f t h e Deeside
But
has
Industrial
Park where o f t h e 17 f a c t o r i e s b u i l t by t h e Agency a l l b u t 2 are
firmly
allocated.
We have an e x c e l l e n t and a d a p t a b l e w o r k f o r c e , a s t r a t e g i c
location,
good and i m p r o v i n g communications, some f i r s t c l a s s i n d u s t r i a l
sites,
s p e c i a l development area s t a t u s i n c e n t i v e s and t h e r e s o u r c e s f o r
f u r t h e r i n d u s t r i a l s i t e development and f a c t o r y
building.
22. W i l l t h e r a t e s u p p o r t g r a n t s e t t l e m e n t t a k e i n t o account t h e
s p e c i a l needs o f N o r t h East Wales?
The r a t e s u p p o r t g r a n t system a l r e a d y t a k e s i n t o account t h e needs o f
p a r t i c u l a r areas.
23.
Redundancy payments by
BSC
What i s proposed and n e g o t i a t e d f o r redundancy payments i s , o f
course,
a m a t t e r f o r BSC.
at
the
I understand
n a t i o n a l l e v e l w i t h t h e TUC
compensation w i l l be d i s c u s s e d
S t e e l Committee a l t h o u g h d e t a i l e d
n e g o t i a t i o n s w i l l t a k e p l a c e a t i n d i v i d u a l works.
The
Corporation
have a l r e a d y s a i d p u b l i c l y t h a t t h e i r e a r l i e r d e c i s i o n t o keep s t e e l
making g o i n g u n t i l 19 82/83 w i l l be t a k e n i n t o account i n t h e
negotiations.
24. Urban Programme
Over t h e p a s t 3 y e a r s more t h a n £3 20,000 has been approved under t h e
u r b a n programme f o r e x p e n d i t u r e on s p e c i a l " s o c i a l , e d u c a t i o n a l and
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environmental p r o j e c t s areas.
i n t h e Deeside, N o r t h East Clwyd and Wrexham
The urban programme can a l s o g i v e s u p p o r t t o s u i t a b l e
i n d u s t r i a l and employment c r e a t i n g p r o j e c t s available urban
and w i l l
c o n t i n u e t o be
t o a s s i s t l o c a l a u t h o r i t i e s i n coping w i t h p a r t i c u l a r
difficulties.
My o f f i c i a l s
are i n touch w i t h t h e a u t h o r i t i e s i n t h e Shotton
who have p u t f o r w a r d a number o f p r o j e c t s 1980/81 programme.
area
f o r f u n d i n g under t h e
These a r e now b e i n g c o n s i d e r e d a l o n g w i t h
those
from o t h e r a u t h o r i t i e s i n Wales and p a r t i c u l a r a t t e n t i o n w i l l be
g i v e n t o t h e needs o f t h e Deeside area i n a l l o c a t i n g
available
resources.
25.
Jobs i n t h e p i p e l i n e f o r Deeside
There a r e a l r e a d y about 1,000 j o b s i n t h e p i p e l i n e f o r Deeside and
B r i t i s h Aerospace's membership o f t h e European A i r b u s C o n s o r t i u m has
secured j o b s a t Broughton
f o r a number o f y e a r s .
valuable contribution t o the t o t a l Area.
WELSH OFFICE
November 1979
These make a
employment o p p o r t u n i t i e s
i n the
4
$
//
^
