North Wales Economic Infrastructure

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Wednesday 25th March 2015

(9 years, 1 month ago)

Westminster Hall
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Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for Alyn and Deeside (Mark Tami) on securing this debate. I echo the sympathies expressed by him and others towards those involved in the tragic accident in Europe yesterday.

This has been an excellent debate, which has demonstrated cross-party ambition, hope and optimism for north Wales and its people, public services and economic prosperity. By and large, as the shadow Minister mentioned, it has not been party political; I am pleased about that, because the issue is how to secure the right outcomes for north Wales.

The story of north Wales over the past five years has been quite remarkable. We all know that the UK has the fastest growing economy in the G7, and Wales is the fastest growing part of the United Kingdom. Since 2010—I hope that everyone will recognise this—gross value added growth for the UK has been 6.8%. In Wales, the figure is 8.4%, but it has been remarkably strong in north Wales, at 13.3%. That is a fantastic demonstration of the efforts of everyone in north Wales—the individuals, the private sector, the public sector and the entrepreneurs who are delivering growth have all achieved that quite remarkable figure of 13.3%.

Chris Ruane Portrait Chris Ruane
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Is the Minister including the Welsh Government in his list of people to congratulate?

Alun Cairns Portrait Alun Cairns
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Of course—I said the public sector. Everyone has played a part in delivering that 13.3% growth in north Wales. Of course, it needed a stable financial settlement and stable economic platform from which to build it. North Wales has prospered remarkably from those conditions.

The debate has focused on a range of issues, but without question there is absolute agreement among all Members on the interdependence of north Wales and the north of England in general and the north-west in particular. That is key to the area’s future prosperity. The hon. Member for Alyn and Deeside picked up on that idea at the outset and focused on the Mersey Dee Alliance. I pay tribute to that organisation; I have met its representatives in my role as Minister and have been hugely impressed with its case. I also pay tribute to the local authorities in north Wales, whichever party runs them; their relationship with the Wales Office is probably stronger than that of the local authorities in south Wales because of their co-ordinated activity and determination to forge a relationship with Whitehall.

Coleg Cambria has been mentioned, and my right hon. Friend the Member for Clwyd West (Mr Jones) mentioned Glyndwr university. Those are both excellent examples of using the strength of the private sector in north-east Wales to deliver skills.

Albert Owen Portrait Albert Owen
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And Coleg Menai!

Alun Cairns Portrait Alun Cairns
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Yes, Coleg Menai as well, although the particular focus was on Coleg Cambria and on Glyndwr university. The university has been through some difficult times over the past year or so. I pay tribute to Mike Scott for his role during that period. He has moved on now, but I recognise his efforts.

Several hon. Members mentioned rail, an issue to which I will return, along with broadband, housing, on which the right hon. Member for Delyn (Mr Hanson) reflected, and energy. The hon. Member for Ynys Môn (Albert Owen) mentioned the importance of tourism, referring to Llanfairpwllgwyngyllgogerychwyrn- drobwllllantysiliogogogoch, a place famous not only for having the longest place name in Britain but for the founding of the Women’s Institute, an important reason to celebrate it. I will also return to mobile communication.

The common theme, on which I will focus, has been our relationship with Europe. Members have presented doubts and questions about the future of many companies and organisations, and so the continuing prosperity of north Wales, because of the commitment to a referendum on the UK’s future membership of the European Union.

I simply do not accept the Opposition’s arguments on that issue. The evidence is strong and pretty overwhelming. In February, the British Chambers of Commerce said:

“A new settlement for Britain in Europe is essential to achieving our economic ambitions—helping our businesses succeed here at home, and across the world.”

Inward investment to the UK is quite remarkable. According to the World Investment Report published by the United Nations Conference on Trade and Development, the UK is the No. 1 country for foreign direct investment stock in Europe and is second only to the United States in the world.

Albert Owen Portrait Albert Owen
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I am sure it is not intentional, but the Minister has misunderstood our case. The case is for staying in the European Union. Businesses are telling me that they invested here—Hitachi is one example; its headquarters are here in the UK—because we are part of the European Union. There is a net benefit for us from being in the EU. We want that to continue and are proud to beat the drum for it.

Alun Cairns Portrait Alun Cairns
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That is a respectable point, but the argument was being made that businesses were not investing because of the EU question. The hon. Gentleman will be able to make his point in the campaign when we have the referendum in 2017, and then people will have the choice.

Alun Cairns Portrait Alun Cairns
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Absolutely, let the people decide. Industries and businesses invest for the long term and would not be investing now if, as the Opposition say, the position of the UK Government was undermining their future plans. That clearly is not the case. Britain is getting 50% more inward investment than either France or Germany, the next two biggest recipients of foreign direct investment. The hon. Member for Vale of Clwyd (Chris Ruane) specifically mentioned Airbus, but Tom Enders has said:

“Regardless of which decision the UK will make, we are strongly committed to our operations in the UK, which are key to the long-term future of our group.”

The evidence is quite clear, from statements from the chief executive of Airbus to the record amount of inward investment coming to north Wales. Putting doubt about the UK’s role in Europe in the minds of potential investors does not support the economic growth of the area.

Mark Tami Portrait Mark Tami
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Does the Minister not accept that many companies, big and small, will not speak publicly about or get involved in politics—probably rightly—but will have concerns that they raise in private? My hon. Friend the Member for Ynys Môn has mentioned some of those concerns this morning. It is incredibly naive to dismiss this issue as if it is not a fear or a threat when it is. It is a serious problem that we have to address.

Alun Cairns Portrait Alun Cairns
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The hon. Gentleman makes an important point, but even if I accepted it, quite obviously businesses would not be spending and investing sums of money if they had the doubts that the hon. Member for Ynys Môn has shared.

I am sorry that the time has gone in which I could have focused on rail investment. Important points have been made about the Halton curve, the Wrexham to Bidston line and the Deeside and Wirral Waters relationship, which was raised by my right hon. Friend the Member for Clwyd West. Those are really important issues. We must focus on the economic value released by railway investments rather than purely on passenger numbers or environmental benefits. Economic benefits are important, and I was delighted that my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) focused on releasing economic potential in the report to the Department for Transport by the North of England Electrification Task Force.