WELSH OFFICE 1
                                                   17 March 1998
___________________________________________________________________
                                
  RON DAVIES WELCOMES INCREASED INVESTMENT IN GOVERNMENT'S KEY
                           PRIORITIES

Ron Davies, Secretary of State for Wales, warmly welcomed today's
Budget announcement which  provides over 40 million pounds extra
investment in the Government's key priorities in Wales in 1998-
99.   Because of the Government's prudent management of public
expenditure this year, it is able to allocate additional
investment to its key priorities:
 
-  A further 25.1 million pounds is being provided to cut patient
   waiting lists in Wales. This  brings the total additional
   money for health in Wales to 85 million pounds in 1998-99.

-  12.06 million pounds is to be provided for education, for
   investment aimed at raising standards in line with the
   "Building Excellent Schools Together" agenda and for the
   enhancement of skills. This brings the total additional money
   on education in Wales to over 77 million pounds in 1998-99.
   2.5m pounds is provided to improve rural transport services in
   Wales.

-  Wales is also set to benefit from the Chancellor's  "New Deal
   for the Communities" Initiative and will get an extra 3/4
   million pounds to participate in the pathfinder projects.

Welcoming this new package Ron Davies said: "This is excellent
news for Wales. It underlines our commitment to tackle the key
priorities of improving health services, raising education
standards and helping people overcome the difficulties of living
in deprived areas."


NOTES FOR EDITORS

1. Wales' share of the extra funding has been determined on
   the basis of the Barnett formula; this provides for Wales
   to receive a percentage of the cash increases to
   comparable programmes in England.  In last July's Budget,
   the Chancellor announced  an additional 60.2m pounds for
   health and 65.3m pounds for education in 1998-99.


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