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(Economic Development Committee EDC 05-01\(p1\) )Tj
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(DEVELOPMENT MINISTER\222S REPORT TO THE ECONOMIC DEVELOPMENT COMMITTEE )Tj
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(WEDNESDAY 21 MARCH 2001)Tj
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( )Tj
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(1. Latest Economic Assessment)Tj
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(Labour Market Statistics)Tj
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(1. 1 New figures were published on 14 March 2001. The main points are:)Tj
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(Unemployment)Tj
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(Claimant Count)Tj
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( unemployment fell by 2000 in )Tj
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(Wales)Tj
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( in February \(rate remained at )Tj
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(4.4%\). The revised figure for January 2000 now shows a fall in unemploy\
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(instead of the 900 originally reported - hence the figure for February i\
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(previously reported January figure.)Tj
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(In the )Tj
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( the claimant count fell by 10,600. The rate is now 3.4%. The claimant c\
ount )Tj
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(total for the UK for February was 996,200, below a million for the first\
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(\(on a seasonally adjusted basis\); )Tj
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(On the )Tj
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( based ILO unemployment measure the numbers and the rate in )Tj
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( fell )Tj
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(between August to October and November to January \(-5,000 and \2260.4 p\
ercentage )Tj
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(points\) though the movements are not statistically significant. Levels \
are below the same )Tj
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(quarter a year earlier. The rate is now 6.1 per cent.)Tj
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(In the UK ILO unemployed also fell, by 81,000 quarter on quarter, and th\
e rate fell by 0.3 )Tj
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(percentage points to 5.2 per cent.)Tj
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(On the LFS based employment measure, total employment in )Tj
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( rose slightly )Tj
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(In the )Tj
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( there was also a substantial rise \(102,000\) quarter on quarter, and a\
lso on a )Tj
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(year earlier \(325,000\).)Tj
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(New )Tj
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( figures for production industry employees show a fall in employees in )Tj
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(manufacturing)Tj
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( of 109,000 in the three months to January 2001 compared to a year )Tj
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(earlier, and a fall of 7,000 in mining, energy and water supply industri\
es. \(No figures for )Tj
0 -1.2 TD
(Wales yet\).)Tj
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(Vacancies)Tj
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(In )Tj
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(Wales)Tj
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( 13,800 vacancies were notified to Job Centres in February, slightly mor\
e than )Tj
0 -1.22711 TD
(in monthly figures for the latter part of 2000, but slightly lower than \
in February 2000.)Tj
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(The )Tj
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(stock)Tj
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( of unfilled vacancies in Wales was 19,400 in February down a little fro\
m )Tj
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(January but slightly up on February 2000.)Tj
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(In the )Tj
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(UK)Tj
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( new vacancies notified in February were up on January \(+10,300\) and u\
p )Tj
T*
(slightly on February 2000 \(+2,500\). The stock of unfilled vacancies, a\
t 391,000 was )Tj
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(substantially greater than the figure for February 2000 of 343,400.)Tj
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(Business surveys )Tj
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(1.2 There have been no new surveys announced since the last EDC meeting \
on 7 March. )Tj
T*
(However, I understand that Cambridge Econometrics are due to publish a S\
pring 2001 )Tj
T*
(Forecast tomorrow.)Tj
ET
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( )Tj
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(2 Action arising from previous EDC meetings)Tj
ET
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(2.1 For the 7 March 2001 EDC meeting, the following item was included.)Tj
ET
EMC
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(WEFO to provide note on whether \221scoring\222 system for ERDF caused d\
elays. )Tj
/TT0 1 Tf
(WEFO is )Tj
0 -1.22711 TD
(not aware of delays resulting from the scoring system. The delay in )Tj
/TT2 1 Tf
(processing)Tj
/TT0 1 Tf
( applications is )Tj
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(due mainly to:)Tj
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( )Tj
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(l)Tj
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( )Tj
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(The over-subscription of certain measures, where projects will have to b\
e taken to the )Tj
0 -1.2 TD
(new Strategy Partnerships; or)Tj
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(The development of applications in order to gather the required informat\
ion and raise )Tj
T*
(project standards.)Tj
ET
EMC
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/TT0 1 Tf
14 0 0 14 10 158.52083 Tm
(Detailed information on this issue has been emailed to Committee members\
direct.)Tj
ET
EMC
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/TT1 1 Tf
14 0 0 14 10 123.10033 Tm
(3. Major issues)Tj
ET
EMC
/P <>BDC
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14 0 0 14 10 86.9415 Tm
(Corus)Tj
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(3.2 Corus and the Unions remain in dialogue on the Unions\222 proposals \
to mitigate and )Tj
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(minimise job losses. There are reports circulating that Corus has reject\
ed the Unions\222 local )Tj
0 -1.2 TD
(plans for Llanwern and Ebbw Vale. We \(and the UK Government\) are conti\
nuing to honour the )Tj
T*
(Unions\222 request not to intervene or comment on the situation while Co\
rus/Unions discussions )Tj
T*
(are taking place. The meeting between Corus and the Unions at national l\
evel arranged for 27 )Tj
T*
(March is the pivotal event.)Tj
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(3.2 The Assembly continues to hold a wide range of discussions with the \
various interested )Tj
T*
(parties, including the Unions, local authorities, Assembly agencies and \
the UK Government. )Tj
T*
(Discussions are primarily concentrated on measures to support the Unions\
\222 proposals to )Tj
T*
(mitigate the impact of job losses. However work is continuing on the pre\
paration of )Tj
T*
(contingency plans in the event of Corus confirming their decision.)Tj
ET
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( )Tj
ET
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(4. Job news)Tj
ET
EMC
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(Gains and safeguarded jobs)Tj
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(Toyota, Deeside \226 announced on 16 March a reorganisation of engine ma\
nufacturing )Tj
T*
(operation at Deeside, including transfer of Yaris engine assembly to Val\
enciennes in northern )Tj
ET
324.37 405.00249 m
599.078 405.00249 l
S
BT
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(France, alongside the vehicle assembly plant, and the transfer of produc\
tion of the new Toyota )Tj
ET
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237.22 388.20248 l
S
BT
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(diesel engine from Japan to Deeside. The Deeside engine plant will also \
double its engine )Tj
T*
(component machining capacity and become Toyota\222s machining centre of \
excellence with )Tj
T*
(components exported to the Group\222s engine plants for assembly in Vale\
nciennes, Turkey, )Tj
T*
(Venezuela, Brazil and South Africa. These developments will take employm\
ent at Deeside to )Tj
T*
(600 by 2003, 80 more than anticipated.)Tj
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(Cable & Wireless \226 announced on 13 March "thousands of jobs to go" fr\
om this company )Tj
T*
(across the UK. We understand that the majority of job losses follow cons\
olidation of service/)Tj
T*
(call centre operations. Services are being out-sourced to companies like\
Conduit. We therefore )Tj
T*
(do not anticipate any net loss of jobs in Wales from this \(any losses a\
re likely to be offset by )Tj
T*
(gains at Welsh call centres\).)Tj
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(Losses)Tj
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101.01401 146.40248 l
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(GHER, Conwy \226 company employs about 25 staff in the manufacture and i\
nstallation of robotic )Tj
T*
(equipment for production lines. We understand company went into liquidat\
ion last week. The )Tj
T*
(company had secured the backing of more than \2430.5 million from the pu\
blic and private )Tj
T*
(sectors. Assembly and WDA officials met the company to discuss possible \
assistance, but )Tj
T*
(nothing could be done to save the operation.)Tj
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(5. Miscellaneous)Tj
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(5.1 The Budget )Tj
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(The National Assembly of Wales will receive a consequential increase of \
\243100 million )Tj
0 -1.2 TD
(over the next three years as a result of public expenditure increases an\
nounced in the )Tj
T*
(budget )Tj
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(Ministers will now consider how this extra money can best be spent in Wa\
les - we will )Tj
T*
(not automatically follow what happens in England. Instead, we will consi\
der how to )Tj
T*
(spend the additional allocations in the next budget planning round \226 \
so we can examine )Tj
T*
(all of the options rather than rushing to make decisions now.)Tj
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(The Chancellor announced consultation on a number of measures to help sm\
all firms by )Tj
T*
(reducing their VAT administrative burden and easing their entry into the\
VAT system, )Tj
T*
(helping to reduce compliance costs and encourage business growth.)Tj
ET
EMC
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(It is important to increase activity rates in Wales. The introduction of\
the Children\222s Tax )Tj
T*
(Credit and increases in the Working Families Tax Credit and Disabled Per\
sons Tax )Tj
T*
(Credit will provide increases in the help given to families to assist wi\
th childcare costs )Tj
T*
(through the childcare components of these tax credits. The increase in t\
he National )Tj
T*
(Minimum Wage and other changes to the tax system could also make work mo\
re )Tj
T*
(attractive. )Tj
ET
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(The extension and strengthening of the )Tj
/TT1 1 Tf
(New Deal for 25 plus)Tj
/TT0 1 Tf
(, and the greater emphasis )Tj
0 -1.20148 TD
(on helping economically inactive people into work \(in particular lone p\
arents and )Tj
0 -1.2 TD
(disabled people\) are of value to Wales. The additional support for unem\
ployed people )Tj
T*
(with drug problems and those with basic skills deficiencies will provide\
extra resources )Tj
T*
(to help people facing some of the most substantial barriers to employmen\
t to move into )Tj
T*
(work.)Tj
ET
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( )Tj
ET
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(There were also changes in fuel tax and vehicle excise duty)Tj
ET
EMC
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( )Tj
ET
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/TT0 1 Tf
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(There will also be a package of fiscal variation measures to help regene\
rate urban and )Tj
T*
(industrial areas Measures which include:)Tj
ET
EMC
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BT
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/TT0 1 Tf
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(A complete exemption from stamp duty for all property transactions in Br\
itain\222s most )Tj
T*
(disadvantaged communities. )Tj
ET
EMC
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BT
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(150% payable tax credit for cleaning up contaminated land)Tj
ET
EMC
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(l)Tj
/T1_1 1 Tf
( )Tj
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/TT0 1 Tf
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(Tax relief for residential conversions \( VAT\))Tj
ET
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( )Tj
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(One hundred per cent first year capital allowances for bringing empty fl\
ats over shops )Tj
T*
(back into residential use )Tj
ET
EMC
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(A Community Investment Tax Credit scheme to provide tax incentives to co\
mpanies )Tj
T*
(investing in enterprise support in disadvantaged communities,)Tj
ET
EMC
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(A Community Development Venture Capital Fund. )Tj
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(Treasury policy resistance, as witnessed in the past in this Committee, \
to regionally or )Tj
T*
(locally varied taxation has changed. These schemes set an important prec\
edent. )Tj
ET
EMC
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(My officials will continue to liaise with Treasury on the detailed appli\
cation of these )Tj
T*
(incentives to Wales- and will also be communicating further suggestions \
upon )Tj
ET
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(completion of the Consultants Report on Fiscal Variations. )Tj
ET
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/P <>BDC
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/TT0 1 Tf
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(5.2 Foot and Mouth)Tj
ET
EMC
/P <>BDC
BT
/TT0 1 Tf
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(I am working closely with Rural Affairs Ministers and other Cabinet coll\
eagues.)Tj
ET
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/P <>BDC
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(Further to my statement on 15 March: )Tj
ET
EMC
/Lbl <>BDC
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( )Tj
ET
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0 0 1 rg
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/TT0 1 Tf
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(New access guidance covering Wales was issued on 20 March;)Tj
ET
EMC
/Lbl <>BDC
0 0 0 rg
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/T1_1 1 Tf
( )Tj
ET
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/LBody <>BDC
0 0 1 rg
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/TT0 1 Tf
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(I attended the Rural Task Force meeting on 20 March and will update the \
Committee on )Tj
0 -1.2 TD
(the outcome;)Tj
ET
EMC
/Lbl <>BDC
0 0 0 rg
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0 0 1 rg
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(I met the main Banks, insurance companies and mortgage lenders this morn\
ing )Tj
T*
(\(Wednesday 21 March\) and can give a verbal update if required.)Tj
ET
EMC
/Lbl <>BDC
0 0 0 rg
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/LBody <>BDC
0 0 1 rg
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/TT0 1 Tf
14 0 0 14 50 526.81848 Tm
(Arrangements are in hand to establish a sub-group of the Rural Partnersh\
ip Council to )Tj
T*
(re-launch the industries and areas affected by the disease;)Tj
ET
EMC
/Lbl <>BDC
0 0 0 rg
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0 0 1 rg
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(A letter has been issued to local authorities regarding rateable values \
of businesses )Tj
T*
(affected by the disease;)Tj
ET
EMC
/Lbl <>BDC
0 0 0 rg
BT
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ET
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0 0 1 rg
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(The WTB will be launching a hotline for tourists on what attractions are\
open etc on 21 )Tj
T*
(March;)Tj
ET
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/Lbl <>BDC
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ET
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0 0 1 rg
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(I have today launched The Tourism Charter - 21 March.)Tj
ET
EMC
/P <>BDC
0 0 0 rg
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/TT0 1 Tf
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(5.3 Voluntary Sector)Tj
ET
EMC
/P <>BDC
BT
/TT0 1 Tf
14 0 0 14 10 354.41849 Tm
(I met with representatives of the voluntary sector on 9 March to discuss\
economic )Tj
T*
(development issues including NEDS, European funding and the social econo\
my. The voluntary )Tj
T*
(sector put forward a number of interesting issues, and I am awaiting fur\
ther details from them, )Tj
T*
(especially on NEDS. There was general agreement on the key issues and th\
e way forward. )Tj
ET
EMC
/Lbl <>BDC
BT
/T1_1 1 Tf
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(4. )Tj
ET
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/LBody <>BDC
BT
/TT0 1 Tf
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(Carbon Trust)Tj
ET
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/P <>BDC
BT
/TT0 1 Tf
14 0 0 14 10 232.41849 Tm
(This was launched yesterday \(Tuesday 20 March\). Assembly officials als\
o attended and met )Tj
T*
(the Chairman of the Trust afterwards to discuss service delivery in Wale\
s. I met the Deputy )Tj
T*
(Chairman the day before to discuss a full range of issues.)Tj
ET
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trailer
<]>>
startxref
41991
%%EOF