UK Regional Investment
Alun Cairns Excerpts(7 years, 10 months ago)
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The Secretary of State for Wales (Alun Cairns)
In March 2016, the Government committed to begin discussions on a city deal for the Swansea Bay city region. I can today inform the House that the Government have reached agreement with the Welsh Government and the four local authorities on a heads of terms city deal for the Swansea Bay city region which will create in excess of 9,000 jobs and bring almost £1.3 billion of investment to the region.
The heads of terms agreement paves the way for major infrastructure investment in the region, which seeks to support and further build on the area’s strengths including health, energy and manufacturing. The deal will help boost economic growth in the region by attracting new investors, giving local business the support they need to grow and increasing the available skills base.
The deal will deliver almost £1.3 billion of investment to the region. Central to this is £115.6 million from the UK Government and £125.4 million from the Welsh Government. Alongside local public sector funding this is projected to attract £637 million from the private sector. This funding package will be provided over a 15 year period, subject to the submission of detailed business cases.
The UK Government’s contribution to the fund will support investment in digital infrastructure and next generation technology, allowing the area to compete with some of the world’s best cities. It will also support a partnership with Tata Steel to establish an innovation and knowledge centre for steel which will focus on zero carbon steel making and the future sustainability of the industry.
[HCWS545]
Oral Answers to Questions
Alun Cairns Excerpts(7 years, 10 months ago)
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Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
The Secretary of State for Wales (Alun Cairns)
I encourage the whole House to recognise that today is International Women’s Day. Events are taking place here in Parliament and across government.
I have regular discussions with the Secretary of State for Exiting the European Union to ensure that our exit from the EU is a success. As members of the European Union Exit and Trade Cabinet Committee and the Joint Ministerial Committee (EU Negotiations), we are committed to working closely with the devolved Administrations to ensure that exiting the EU has a fair and strong outcome.
Stuart C. McDonald
I join the Secretary of State in welcoming International Women’s Day.
At yesterday’s sitting of the Exiting the EU Committee, the Welsh Finance Secretary, Mark Drakeford, voiced concerns about the UK Government using Brexit to grab new powers over such things as farming and fishing, which should without question go directly to Cardiff and Edinburgh under the existing devolution settlements. Can the Secretary of State give a cast-iron guarantee that there will be no such attempt to undermine and row back on devolution?
Alun Cairns
We have already said that no decisions currently taken by the devolved Administrations will be removed from them. We will use the return of decision making from Europe back to the UK to strengthen devolution and the Union.
Sir Edward Leigh (Gainsborough) (Con)
On behalf of the people of Wales, will my right hon. Friend tell the Secretary of State for Exiting the European Union that nobody—not the unelected House of Lords or anybody else—is going to stand in the way of the will of the Welsh people to have their freedom?
Alun Cairns
My hon. Friend reminds us that Wales voted to leave the European Union at the recent referendum. There is an obligation on the Government and on both Houses of Parliament to accept its outcome.
Nick Smith (Blaenau Gwent) (Lab)
Alun Cairns
I will happily meet the hon. Gentleman, although I do not necessarily recognise his message about our approach to Brexit—we want a deal that works for every part of the United Kingdom.
I am sure that the hon. Gentleman would welcome the fact that unemployment across Wales is lower than the UK average, which is remarkable considering the industrial heritage of constituencies in Wales such as the hon. Gentleman’s. I will happily work with him on the issues he raises in connection with the Department for Work and Pensions.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
In his evidence to the Brexit Select Committee yesterday, Cabinet Secretary Mark Drakeford also said that the Welsh Government were, disgracefully, not made aware of the UK Government’s 12-point Brexit plan or their White Paper. What is the Secretary of State doing to ensure that the Plaid Cymru-Welsh Government Brexit White Paper is fed into the article 50 letter and accompanying documents?
Alun Cairns
The Welsh Government’s White Paper on exiting the European Union was considered by the Joint Ministerial Committee at the end of February, and we have a significant amount of common ground. The Welsh Government talk about “unfettered access”, while my right hon. Friend the Prime Minister has talked about “frictionless” access and trade. We can work on the basis of a lot of common ground, and I am optimistic that we will continue to work in a positive environment with the Welsh Government and the other devolved Administrations to secure a Brexit deal that works for every part of the United Kingdom.
Ian C. Lucas (Wrexham) (Lab)
Charlie Elphicke (Dover) (Con)
The Secretary of State for Wales (Alun Cairns)
Wales is an exporting nation. Welsh lamb, Penderyn whisky and Anglesey sea salt are all known well beyond our own borders, but we can do more. On Monday I hosted a business export summit in Cardiff to ensure that businesses in Wales have full access to UK Government business support for exports.
Charlie Elphicke
What steps is the Secretary of State taking to engage with and understand the needs of smaller businesses in Wales as we negotiate to leave the European Union?
Alun Cairns
My hon. Friend recognises this Government’s global trading ambition. There are 1,200 staff in the Department for International Trade, across 109 countries. Any businesses based in Swansea are as entitled to the same sort of support as businesses based in Swindon, and I encourage them to use the Department for International Trade.
Geraint Davies (Swansea West) (Lab/Co-op)
Some 44% of trade goes to the EU, but the amount from Wales is 70%. Last week in Swansea, the CBI and producers told me that it is imperative that we retain access to the single market and the customs union. The people of Wales did not vote to leave them. Will the Secretary of State assure us that he will do everything he can to keep that going so that our exports are free to continue?
Alun Cairns
I remind the hon. Gentleman that on Monday I held an event to promote exports to not only Europe but all parts of the globe. Clearly there are great opportunities, and last year 4,000 Welsh companies took their first steps towards exporting. Europe is an important market. We want frictionless trade with Europe, and we also want to look to the great opportunities that exiting the European Union will bring to not only Welsh businesses but businesses across the whole United Kingdom. [Interruption.]
Mr Speaker
Order. An excessive number of rather noisy private conversations are taking place. I understand the sense of anticipation, but it is very unfair on Members asking questions and the Minister answering. Let us have a decent audience for Mr Stephen Crabb.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Despite Wales having world-leading companies that contribute to humanitarian efforts in some of the poorest nations on earth, no Welsh company has been able to secure a contract with the Department for International Development. Will my right hon. Friend look into that and work with the excellent International Development Secretary to make DFID not only more pro-business, but more pro-Welsh business?
Alun Cairns
My right hon. Friend raises an extremely important point. Not only has he been a strong champion for Wales over many years, but he has shown a strong interest in overseas development. I will happily work with him and my right hon. Friend the International Development Secretary on overseas aid to ensure that Welsh businesses get the same opportunity as any other UK business to win contracts to help to support and develop those nations.
Christina Rees (Neath) (Lab/Co-op)
At a St David’s day celebration, Wales’s First Minister, Carwyn Jones, declared that Wales is open for business. Last week he spent four days in America, boosting post-Brexit trade between the USA and Wales. Does the Secretary of State plan to visit the USA and recruit more business for Wales?
Alun Cairns
May I welcome the hon. Lady to the Dispatch Box for her first Welsh questions? Last week GE Aviation announced a £20 million investment in Nantgarw. The UK and Welsh Governments worked together to land that significant employment opportunity, which will secure 1,200 jobs for more than two decades. My right hon. Friend the Secretary of State for International Trade always rightly underlines that every business in Wales is entitled to the same support as any business in England, and I am working closely with him on not only that but trade missions.
Nick Thomas-Symonds (Torfaen) (Lab)
The Secretary of State for Wales (Alun Cairns)
I recently met the unions. Following the positive outcome of the recent ballot, it is now vital that all parties work together to deliver the agreed proposals. We will continue to engage with the sector, as well as with the unions, the devolved nations and other partners, as we seek to find a long-term viable solution for the industry.
Nick Thomas-Symonds
The International Trade Secretary is said to have stated that the Government should ignore those who argue for protection. Will the Welsh Secretary agree to argue for a proper trade defence mechanism for steel, if that is what is required?
Alun Cairns
I hope that the hon. Gentleman will look to this Government’s positive record, in spite of the scaremongering of many Opposition Members. There are already 41 trade defence measures in place and the outcomes speak for themselves. Rebar coming into the European Union has reduced by 99%, as has wire rod—the statistics speak for themselves. This Government are determined to take the right action to support not only free trade but Welsh and UK businesses and industry.
Bob Blackman (Harrow East) (Con)
Will my right hon. Friend update the House on what action has been taken to ensure that Welsh steel is used in British procurements across the UK?
Alun Cairns
My hon. Friend is absolutely right to suggest that significant steps have been taken since 12 months ago when the crisis broke. Energy-intensive industry support has meant that £134 million has now been paid to the steel sector, and I have already mentioned the fact that 41 trade defence measures are in place. We have also introduced flexibility over EU emissions regulations. We are determined to ensure that everything will be done to make the steel industry sustainable over the longer term.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
There has been much discussion in the past week about the automotive industry, particularly about Ford in Bridgend and the acquisition of Vauxhall by PSA, which are of major importance in south Wales and north Wales respectively. The presence of a domestic steel industry is key to our automotive industry, so will the Minister tell us what discussions he has had with his Cabinet colleagues about the automotive and steel industries and what assurances he can give to both industries about the Government’s commitment to their sustainability?
Alun Cairns
My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy and I are in regular communication, not only about steel but about the automotive sector. Although Ellesmere Port is not in Wales, there are clearly a significant number of Welsh employees in the workforce there. I hope that the hon. Gentleman will take encouragement from major investments such as that being made by Nissan in Sunderland. There are 100 automotive component industries based in Wales that will have access to those contracts—
Patrick Grady (Glasgow North) (SNP)
The Secretary of State for Wales (Alun Cairns)
The White Paper, “Securing Wales’ Future”, was presented to the Joint Ministerial Committee on EU negotiations in late February, and we are discussing the detailed proposals with the Welsh Government.
Patrick Grady
Does the Minister realise that there is a difference between discussing a paper and taking action on it? When are the devolved Governments going to have any tangible action taken on their Brexit strategies; or are the devolved Assemblies not going to be part of empire 2.0 and instead be left with the scraps from the table?
Alun Cairns
I hope the hon. Gentleman will recognise that there is a significant amount of common ground between the Welsh Government’s paper and the 12 principles that my right hon. Friend the Prime Minister has outlined. This Government are determined to deliver a deal that works for every part of the United Kingdom. We have already said that no decisions currently taken by the devolved Administrations will be removed from them and that we will use the return of powers from Europe to the United Kingdom to strengthen devolution and the Union of the United Kingdom.
Hywel Williams (Arfon) (PC)
Over 5,000 EU students study in Wales and over 1,300 EU academics teach and do research, greatly adding to our national wellbeing. The Welsh Government’s EU White Paper makes it clear that their position must be secured. Why will the Secretary of State’s Government not adopt that elementary piece of economic good sense?
Alun Cairns
My right hon. Friend the Prime Minister and others have said that we want to seek the earliest agreement to secure the status of EU nationals living in the UK and of UK nationals living in the EU. It is not in our interests to undermine any one sector. We would like to press for an early agreement, but it takes two people to come to an agreement.
Hywel Williams
Today, on International Women’s Day, my constituent Shiromini Satkunarajah will be studying for her final exams in electrical engineering. She is likely to get a first in her field, in which there is a world shortage of qualified people, women in particular. Had this Government had their way, she would have been deported last week. How would her deportation have steadied the Chancellor’s dodgy post-Brexit spreadsheet?
Alun Cairns
The hon. Gentleman will know that we do not comment on individual cases, but he will know the detail and the latest situation. I hope that he will recognise, on International Women’s Day, that no other nation across the European Union has lower unemployment among women than Wales.
Welsh Affairs
Alun Cairns Excerpts(7 years, 10 months ago)
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The Secretary of State for Wales (Alun Cairns)
Rwyf yn ddiolchgar i’r Pwyllgor Busnes—I am grateful to the Backbench Business Committee for recognising the importance of holding this debate on Wales near St David’s day and for allocating the time. I pay tribute to the hon. Members for Ynys Môn (Albert Owen), for Ceredigion (Mr Williams) and for Dwyfor Meirionnydd (Liz Saville Roberts) and to my hon. Friend the Member for Gower (Byron Davies) for securing the debate on this motion on behalf of Members on both sides of the House. I am grateful for the commitment and drive that has delivered this debate.
I welcome the hon. Member for Neath (Christina Rees) to the Dispatch Box, and I look forward to working closely with her in the interests of Wales and of all the people of Wales. I thank her predecessor for her robust scrutiny when she was in post.
I highlight the importance of the Union to Wales. I will cover as many points as I can, but I need to underline that the Union of the United Kingdom is the most successful political union of nations that has ever existed. It is important that we recognise the precious bond between England, Scotland, Wales and Northern Ireland. As we leave the European Union, the Union of the UK is more important than ever, and we will seek to strengthen it as the negotiations progress. We want the United Kingdom to emerge from this period of change stronger, fairer, more united and more outward-looking than ever before. We will make sure that no new barriers to living and doing business within our nations are created. That was the spirit in which the hon. Member for Ynys Môn introduced this healthy debate, and I hope it has been underlined throughout.
By being part of the Union, Wales has prospered and developed, and in turn the UK has benefited from the flow of ideas and innovation from our proud nation. Some issues relating to universities were mentioned during the debate, and the hon. Members for Ceredigion and for Cardiff Central (Jo Stevens) and others talked about the great innovation and expertise in our universities, from which the Union of the UK benefits. Organisations such as Innovate UK have a key part to play in driving innovation and capturing the expertise that exists.
North and south Wales form single economic regions with the north-west and south-west of England. After all, 50% of Wales’s population and 10% of England’s live within 25 miles of the Wales-England border.
I shall address other points later, but first, there was much focus by Members on funding. I hope we can recognise the funding settlement that was negotiated before Christmas. It puts Wales in a strong financial position as we look forward: it will receive around £120 for every equivalent £100 spent in England. That will fall, over a long period, to £115, which is the funding floor. I hope that demonstrates the positive, open relationship that we want. We want to work with the Welsh Government to secure and bind the Union in the best possible way so that we can benefit from the assets, culture and diversity of all the nations in the Union of the United Kingdom.
There is no denying that, as a Union, we are inextricably linked. Companies in Wales have access to help and support from both Governments, and we are keen to work closely with the Welsh Government to secure further inward investment, as well as to develop businesses and the industrial strategy that my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy is driving forward. He will be in Wales shortly to ensure that Welsh businesses are playing a full part in the consultation on the recent Green Paper.
There are challenges ahead as we exit the European Union, but there are also some great opportunities. We are working with the Welsh Government and discussing the process and progress in the negotiations on our exit from the EU. Reference has been made to the Joint Ministerial Committee on EU negotiations, which brings together the UK Government and the devolved Administrations to seek to develop a UK-wide approach to the challenges we face and the opportunities we can grasp as we leave the EU. At the last meeting of that Committee, the Welsh Government presented their White Paper, which sets out their priorities for our exit from the EU, and we are discussing their proposals.
As part of the discussions, my right hon. Friend the Secretary of State for Exiting the European Union met the Welsh Government Finance Minister yesterday, along with officials from my office and the Cabinet Office. We are having parallel discussions on a whole range of issues to ensure that Wales is at the heart of the discussions. We will intensify our work with the Welsh Government on all aspects of the EU ahead of, and following, the triggering of article 50. It is important to remember that, despite political differences, we share many objectives. The Welsh Government’s White Paper was a welcome contribution, and I believe we have significant common ground from which to work.
We all want the freest possible access to the single market. In that context, the Ford plant at Bridgend was mentioned by not only the hon. Member for Bridgend (Mrs Moon) but several other Members, including the hon. Member for Torfaen (Nick Thomas-Symonds). The latter also mentioned steel, as did the hon. Members for Aberavon (Stephen Kinnock) and for Newport East (Jessica Morden).
We need to recognise that, in relation to Ford, there is the natural life cycle of a product, and that we need to be realistic about where we were expected to be at this stage of development. The hon. Member for Bridgend said that there were challenges in efficiency and productivity that the unions and the plant must face. When I met Ford two days ago, there was optimism about a sustainable future, but also a recognition that we need to win further business for when the natural life cycle of the existing engines ends. It is on that basis that I look positively at the challenges that we face in order to make those jobs sustainable over the longer term.
Some of the information out there has been highly selective, and I do not necessarily subscribe to the way in which it has been presented. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy and I have already discussed this matter, and I know that ongoing engagement with Ford is something that we want to pursue.
On the points that were made in relation to steel, I do not accept the criticism that the hon. Member for Aberavon made. He talked about trade defence measures. Although I have mentioned them time and again, he fails to recognise them. The 41 trade defence measures that have been introduced have had an effect. Imports of rebar and wire rod into the European Union are down by 99%, as a result of the Secretary of State, and his predecessor, driving that forward to ensure that we have a fair and level playing field for the steel industry. Rolled-flat products and organic coated steel are similarly down by 90%. The hon. Gentleman will recognise that, as a result of the action taken by the workforce and the responsible approach taken by Community union, the Government and the Welsh Government, the steel industry in Wales and across the United Kingdom is in a much, much stronger position now than it certainly was just a year or so ago. I am optimistic about the future. Yes, there are challenges to overcome, but there is a sustainable future that we need to find for steelmaking in Wales.
There are millions of people across the world looking for the skills, expertise, and goods and services that we have in Wales. Through the Wales Office and the Department for International Trade, we can use our exiting of the European Union to exploit those opportunities that exist. We have landed some significant investments, including GE in Nantgarw yesterday and the F-35 global repair hub in Flintshire. Those are just two examples of our recent significant progress.
I am sorry that I have not been able to cover all the issues, including the points about tourism that were made by my hon. Friends the Members for Brecon and Radnorshire (Chris Davies) and for Gower. They rightly highlighted the value that tourism brings. I recognise the points that they made about the Cardiff city deal. My hon. Friend the Member for Cardiff North (Craig Williams) drives that project with great enthusiasm. My hon. Friend the Member for Gower is pressing the point on the tidal lagoon. It is only right that we give that matter the time that it deserves in terms of examining the numbers and looking at it fairly so that it is right not only for energy production, but for the taxpayer.
Wales Bill
Alun Cairns ExcerptsTuesday 24th January 2017
(8 years ago)
Commons ChamberRead Full debate Wales Act 2017 View all Wales Act 2017 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Amendments as at 24 January 2017 - (24 Jan 2017)
The Secretary of State for Wales (Alun Cairns)
I beg to move, That this House agrees with Lords amendment 9.
Madam Deputy Speaker
With this it will be convenient to discuss Lords amendment 44.
Alun Cairns
I am pleased to open the debate on the amendments made to the Wales Bill in the other place. Given the number of Members who wish to speak in this relatively short debate, I shall aim to keep my comments relatively brief.
First, I place on record my gratitude to the peers who contributed to the scrutiny of the Bill during its passage through the House of Lords. It would be dangerous to try to name them all for fear of forgetting some, but a number who regularly attended briefing sessions and gave feedback throughout the process helped to get this important Bill through the other place without any Government defeats. I thank in particular Lord Bourne of Aberystwyth for steering the Bill so ably through the other House on behalf of the Government, supported by Baroness Mobarik as Whip for the Bill.
I also take the opportunity to place on record my thanks to a number of right hon. and hon. Members of this House. My right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) started the process when she established the Silk commission in 2011. My right hon. Friend the Member for Clwyd West (Mr Jones) expertly guided through Parliament the Wales Act 2014, which implemented the Silk commission’s fiscal recommendations. I pay particular tribute to my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb). In his time as Secretary of State he took a number of bold decisions, most notably the establishment of the cross-party St David’s day process, which put in place the framework of the Bill. That was a bold move, as I have suggested—one that sought to bring all parties together to make a constitutional agreement that would bring both Houses together, understanding the politics of both sides of this House and of the other place.
My right hon. Friend was unstinting in his belief in the importance of the Bill and subjected himself to immense scrutiny with respect to its contents. I pay tribute to his work in setting the framework that has allowed my hon. Friend the Under-Secretary of State for Wales and I to take it through the Chamber.
It is also appropriate to pay tribute to Members on the other side of the House who played an important part in the scrutiny of the Bill, especially the former shadow Welsh Secretary, the hon. Member for Newport West (Paul Flynn), and his predecessor, the hon. Member for Llanelli (Nia Griffith), who was involved in the work, negotiations and discussions throughout the process, as well as the current Opposition Front-Bench team.
I wanted amendments 9 and 44 to be spoken to separately, to give right hon. and hon. Members the opportunity to consider the fiscal framework agreed between the UK Government and the Welsh Government. The amendments are directly linked to that agreement.
The agreement reached between the UK Government and the Welsh Government is an historic agreement that is fair for Wales and fair to the rest of the UK. During scrutiny of the Bill last summer, this House approved the removal of the requirement for there to be a referendum before Welsh rates of income tax were implemented, and the fiscal framework paves the way for the devolution of those historic tax powers from April 2019.
The block grant adjustment mechanisms that will take account of the devolution of stamp duty land tax and landfill tax are also part of that agreement, ensuring that the replacements for those taxes in Wales, which the Welsh Government are already legislating for, come on stream in April 2018.
Nick Thomas-Symonds (Torfaen) (Lab)
While the Secretary of State is talking about the fiscal framework, may I welcome the lifting of the cap on borrowing for capital expenditure to £1 billion? That is not quite the £2 billion that Front-Bench colleagues in the other place asked for, but I welcome it as a step forward. Does the Secretary of State agree that that measure will give the opportunity to continue investment in infrastructure in Wales, both digital and physical, and can also contribute to increased productivity?
Alun Cairns
I am grateful to the hon. Gentleman for the scrutiny he provided at previous stages, and for his comments just now. I will come to the numbers later, but I hope he recognises that there was a mature discussion between two institutions, and he is absolutely right that this measure paves the way for the Welsh Government to use their new borrowing powers to legislate for and finance things that really matter to the Welsh people.
The agreement ensures that, when tax powers are devolved, the Welsh Government will have fair funding for the long term, taking into account Welsh tax capacity and treating population change consistently across tax and spending. In doing so, we are delivering on the independent Holtham commission’s ambition of a long-term fair funding settlement and agreement for Wales.
Indeed, I spoke to Professor Holtham only last week, and he is clear that this is a “very fair settlement” and that there is now no case to argue that Wales is underfunded. The Government previously stated that Wales receives a fair settlement. This cements that in place and enhances the settlement.
Paul Flynn (Newport West) (Lab)
Does not the Secretary of State agree that the fiscal framework is already out of date because it is pre-Brexit and we now know that Wales will suffer severely if we come out of the single market? Is it not true that the Bill is just another stepping-stone on the way to a new Bill, which we will get when the terms of Brexit are declared?
Alun Cairns
The hon. Gentleman is well aware that we have a positive dialogue with the Welsh Government on the nature and framework of the process and the ultimate outcomes of exiting the EU. I was happy to receive yesterday from the Welsh Government a paper outlining their proposals, and we will of course give it close consideration. It will be subject to a future Joint Ministerial Committee for the European negotiations.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
No doubt, then, the Secretary of State would disagree with the hon. Member for Brecon and Radnorshire (Chris Davies), who said yesterday in an interview with me on ITV Wales that Wales should simply get in line with the Brexit process and just kowtow to the Prime Minister’s agenda?
Alun Cairns
I did not hear my hon. Friend’s comments, but should there be any attempt to frustrate the process of exiting the EU by the Welsh Government, the Welsh population would not expect or want it. After all, Wales voted to leave the EU, and it is only right and proper that we act on that instruction and direction, which came from the public in Wales. I would hope that the Welsh Government continue to engage positively in the way that they have.
Owen Smith (Pontypridd) (Lab)
Given the respect that the Secretary of State says there is between the institution of the National Assembly and the Government here at Westminster, should he not be disappointed that the Supreme Court has not ruled today that there should be a formal consultation with Wales via the National Assembly?
Alun Cairns
We have maintained that the views of the Welsh Government are important, but the views of other stakeholders in Wales are also relevant to the discussion. The Welsh Government will rightly form their view, and the UK Government will come to a conclusion that serves all parts of the United Kingdom, including other stakeholders in Wales, as part of the process. The legal action that the Welsh Government took was a matter for them. We have had the judgment, and we need to respect and act on it.
I shall return to the fiscal framework and the funding settlement for Wales. I have already mentioned Professor Gerry Holtham, but it is appropriate that we pay particular tribute to him for the work that he did. We should also pay tribute to my right hon. Friend the Chief Secretary for the part he played in the negotiations, and to the way the Welsh Government and Mark Drakeford, the Cabinet Secretary for Finance and Local Government, went about the negotiations with my right hon. Friend, whereby two mature institutions discussed serious matters that will have long-term positive consequences for Wales.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Does not the Secretary of State share my concern that the needs-based factor will be based on sums ascertained in 2009-10, which will be effectively 10 years old when it comes into effect? There should be a review before it starts.
Alun Cairns
I am grateful to the hon. Lady for her intervention, and for the scrutiny and interest she has rightly given the Bill, but I hope she recognises the significance of the fiscal framework. The needs-based factor to which she refers is 115%, and the current level is well above that. It will fall to 115% over time, recognising the fair settlement that Wales gets because of its needs. It is significant that that needs-based factor is being introduced into the Wales settlement for the first time. It is something for which the hon. Lady and her party have been calling for some time, but it took a Conservative Government to deliver it.
Stephen Crabb (Preseli Pembrokeshire) (Con)
My right hon. Friend has done a fantastic job of steering the Bill through its Commons stages. The hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) says that the figures are out of date, but when I sat down with Professor Holtham to think about how to scope out a fair funding floor for Wales, he was absolutely clear that there was no reason to think that just because of the passage of time the figures that he had in mind were somehow incorrect. The level that has been set by the Treasury is exactly right for Wales’s needs at this time.
Alun Cairns
My right hon. Friend played an important role in ensuring that we have the needs-based factor by framing the debate in such a way as to make possible a successful conclusion. Ultimately, the Welsh Government would understandably have rejected the Bill unless it was associated with an appropriate and fair funding settlement. I hope that Opposition Members will recognise the significance of the settlement, because it really does matter to the long-term funding of public services in Wales.
Stephen Doughty
Does the Secretary of State accept that, as the First Minister set out yesterday in the White Paper published with the support of Plaid Cymru and the Liberal Democrats, there is a difference between the Barnett funding formula and funding arrangements of the sort that we currently have under the common agricultural policy and the structural funds? As things are moving on very rapidly, will he make a commitment that Wales will not be left a penny worse off as a result of leaving the European Union?
Alun Cairns
The hon. Gentleman tempts me to go down a route for which no decisions have been taken. We are keen to engage and discuss those matters and, as we have already said, we are keen to engage with the Welsh Government and the other devolved Administrations on future funding arrangements. I hope that the hon. Gentleman will recognise the fairness of the way we have approached the Barnett settlement and the fiscal framework, and that that will give him confidence that, as we hope, we will achieve a fair settlement for Wales and all parts of the United Kingdom as we exit the European Union.
Alun Cairns
I would like to make a little progress, but I will happily give way later if time permits.
We have agreed a fair way for the block grant to be adjusted to take account of tax devolution and the devolution of a portion of income tax, and a transitional multiplier of 105% in the Barnett formula that will give the Welsh Government additional money, over and above current levels, whenever we increase spending in a devolved area. That 105% demonstrates the even longer-term transition to getting down to the floor of 115%. We are doubling the Welsh Government’s capital borrowing limit, so that they will be able to borrow up to £1 billion —as the hon. Member for Torfaen (Nick Thomas-Symonds) pointed out a moment ago—to invest in infra- structure throughout Wales.
Lords amendment 9 puts the new capital borrowing limit in place now, so that it will be available as soon as the Welsh Government start to raise revenues through the taxes we are devolving. Lords amendment 44 ensures that Lords amendment 9 comes into force two months after Royal Assent, thereby putting the new borrowing limit into place well in advance of the devolution of tax powers. As the hon. Member for Torfaen rightly highlighted, that will allow the Welsh Government to get on with things that matter, and to legislate and use the new financial capacity that the Bill will grant. Taken with the Wales Bill, the agreement paves the way to making the Welsh Assembly a more powerful, accountable and mature institution, with greater powers and responsibilities to grow and support the Welsh economy.
The fiscal framework agreement resolves once and for all the perceived issues of underfunding that have overshadowed political debate in Wales for so long. It provides the Welsh Government with a powerful new borrowing limit to deliver much-needed infrastructure investment, and it ensures that the devolved Government in Wales can become truly accountable to the electorate by raising around a quarter of the money that they spend. Gone are the days when poor levels of public service in Wales could be blamed on perceived underfunding. For too long, funding was used as an excuse for poor outcomes, but not any longer. If they want big government, the Welsh Government could even raise taxes to pay for it. Or, if they want to reduce income tax levels, they could look to drive out inefficiencies and allow Wales to be seen in a new entrepreneurial light. I urge the House to agree to the Lords amendments.
Jo Stevens (Cardiff Central) (Lab)
In the spirit in which the Bill has so far developed, we will this afternoon see something of a rarity in my life: I will, on occasions, agree with the Government and some of the measures they are taking. Before the Secretary of State gets too excited about that, though, it has to be put on record that the Bill has had a chequered history. It started out very badly—so badly that the Government had to take it away and start all over again. The second attempt was better, and we have now reached a point at which although it is still far from ideal, there has been considerable movement by the Government as a result of pressure from the Opposition and in the other place.
I put on record my thanks to my predecessors, my hon. Friends the Members for Llanelli (Nia Griffith) and for Newport West (Paul Flynn), and their Front-Bench teams, for their work during the Bill’s passage. I particularly thank my colleague Baroness Morgan of Ely and our team in the other place for the sterling efforts they made to secure numerous improvements to the Bill through debate and discussions with the Government, who took a largely constructive approach to concessions. We therefore support the Bill in its current, improved form, and will not attempt to frustrate its passage.
I shall not detain the House longer than necessary on matters on which there is agreement, but I wish to make substantial points on the Opposition amendments at the tail end of the selection list, on which I may wish to test the will of the House. We are hopeful that we can make good progress and reach those amendments.
Given the importance of the consequences of Lords amendments 9 and 44, it is right to put something on the record about them. They will raise the Welsh Government’s overall capital borrowing ability to £1 billion, and from April 2019 the annual capital borrowing limit will rise to £150 million—15% of the overall figure. As the Secretary of State pointed out, all that stems from the fiscal framework agreed by the Government here in Westminster and the Welsh Assembly Government. It is welcome news; I congratulate the Welsh Government. Like the Secretary of State, I particularly congratulate the Cabinet Secretary for Finance and Local Government, Mark Drakeford, for working so hard to seal this important deal with the UK Government. I also pay tribute to the Government for moving on this issue.
The increase in borrowing ability is so important because the austerity that successive Conservative Chancellors have imposed on Wales has had severe consequences for the Welsh Government’s ability to invest, particularly in infrastructure. As has been pointed out, with the loss of European funding that Wales will experience once we leave the EU, the ability of the Welsh Government to invest in infrastructure becomes even more critical. Therefore, moves to enhance the Welsh Government’s ability to invest in and develop infrastructure for the future are of course welcome. It is all about investing in Wales and boosting our economy, and this measure will go a significant way towards doing that.
Sensible infrastructure investment led by the Welsh Government will help improve productivity rates in Wales and increase the gross value added of Wales. However, as Members will hear me say several times today, the Government plans do not go far enough. In the other place, my Front-Bench colleague, Baroness Morgan, tabled an amendment to raise the borrowing cap to £2 billion based on the Holtham recommendations. We accept £1 billion as a step forward, but it is clearly not enough to properly meet the demands of the Welsh economy. Before the Minister responds to that point, I caution the Government against viewing the cap as a target. The point is to see the flexibility and dynamism provided by the higher limit, rather than to look at only how much is borrowed.
Many successful businesses do not use 100% of their borrowing facility, but leverage their borrowing to a sensible percentage of the facility based on the economic context in which they are operating. The higher £2 billion that was sought would not necessarily have been used, but would have allowed greater flexibility and freedom for the Welsh Government to invest in a greater number and a greater scale of critical schemes and infrastructure projects.
I make these points to the Minister to put them on record and to push his conversations with the Treasury ahead of the forthcoming Budget, but, as I have said, we do welcome the step forward that Lords amendments 9 and 44 provide and we will not vote against them.
Liz Saville Roberts
I am sure that the House will join me in wishing the best to my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards), who is expecting the imminent arrival of the latest member of his family. [Hon. Members: “Hear, hear.”] I sympathise with all MPs who have to balance family life and parliamentary duty.
I, of course, welcome to an extent the fact that a fiscal framework is on the verge of being in place, giving the Welsh Government a degree of financial accountability that is intrinsic for any functioning democratic Parliament. Judgment is still very much out, however, on whether it can really deliver the economic accountability and levers for growth that are required in this tumultuous time. I therefore want to start with a few brief comments about the framework’s ambition, or lack thereof. I then want to ask the Minister a specific question about how the framework will operate before finally discussing the capital expenditure limit outlined in amendment 9.
Despite finally having this fiscal framework in place, we still lag behind every other devolved Administration in terms of powers and responsibilities. Earlier today—like most days—we were embroiled in the Brexit conundrum and all its unravelling economic implications, but the Government’s insistence on a patchwork approach to devolution means that Wales will not have the real levers for growth that it needs at this most difficult of economic times. If the Conservative party wants to talk about the real opportunities that a single market and customs union exit brings for Wales, it should be looking at the fiscal levers for growth, including VAT, the most important tax for Wales, and how it could be devolved. I hope the Minister will indicate that he plans to review the framework in the light of recent developments to ensure that Wales has such fiscal levers.
I briefly want to touch on a technical point that my party colleague, Adam Price AM, has already raised with the Welsh Government’s Cabinet Finance Secretary. The much trumpeted relative need provision of the fiscal framework—the 115% rule, which is referred to as the Holtham floor—was based on a set of criteria that determined Wales’s relative need in 2009-10. There seem to be no plans to conduct a review of that relative need when the floor is set to be implemented approximately three years from now, meaning that those relative needs will be based on figures that are 10 years out of date. This was discussed briefly in earlier interventions, but the 115% rule surely cannot be set in stone for all time, so I ask the Minister to propose a review to investigate that.
Alun Cairns
I am happy to clarify that the fiscal framework agreement, which is supported by the Welsh Government, includes opportunities for periodic reviews.
Liz Saville Roberts
I welcome those comments about periodic reviews as opposed to using 10-year-old statistics. I also have some concerns about the framework’s dispute resolution mechanism, but there may not be the time to discuss them here. We may be able to resolve that problem in future discussions.
I want to finish by emphasising the fact that both Governments lack ambition. In the Lords, Plaid Cymru called for a £2 billion capital expenditure limit, which was supported by Labour. However, under pressure from the devo-sceptic Tory party, we can see in amendment 9 that we are left with a capital expenditure limit of exactly half that. Although I am pleased that a fiscal framework is finally in place, I cannot avoid the observation that Wales is once again being short-changed through a lack of vision and ambition.
Madam Deputy Speaker (Natascha Engel)
With this it will be convenient to discuss the following:
Lords amendments 2 to 8, 11 to 27 and 33 to 35.
Lords amendment 36 and amendments (a) and (b) thereto.
Lords amendments 37 to 43, 45, 47 to 136 and 138 to 177.
Alun Cairns
As I stated earlier, we have engaged constructively with peers, the Welsh Government, the Assembly commission, colleagues on both sides of the House and a range of other interested parties on the issues raised, and we have made changes to improve the Bill where there is a good case to do so. The Bill today is a better one as a result. The large number of amendments in the group is testimony to the fact that the Government have been open to improving the new devolution settlement where possible. I do not intend to discuss each amendment in detail, but I will draw some of them to the House’s attention.
We have amended the Bill to deal with concerns about how universities are treated in the new reserve powers model. During the Bill’s passage through the other place, concerns were raised by the higher education sector that defining universities as “Wales public authorities” might suggest that they should be classified more widely as “public authorities”. This was not our intention. Amendments 3, 4 and 115 resolve this issue by renaming “Wales public authorities” as “Devolved Welsh authorities”. This responds to calls from universities and Universities Wales. We have also ensured that the Open University will be defined as an authority that carries out a mix of devolved and reserved functions, reflecting its status as a UK-wide institution. This will allow the Assembly to legislate to confer functions on the Open University in devolved areas without requiring the consent of a UK Minister. We have also expanded the list of devolved Welsh authorities in response to concerns raised by the Welsh Government and others.
The Government have introduced several amendments relating to tribunals that resulted from extensive discussions with the Welsh Government, the Ministry of Justice and the senior judiciary and which are intended to improve the management of the workload of devolved tribunals and to maximise flexibility in the deployment of judicial resources in Welsh tribunals. The amendments tabled in the other place will create a statutory office of president of Welsh tribunals to oversee the work of the devolved Welsh tribunals. New schedule 5 provides for a two-stage process for the appointment of a person to this new statutory role. The new clauses will also allow for the deployment of judges between Welsh tribunals and reserve tribunals in England and Wales so that they might share expertise in a way that cannot happen under current legislation. These are important amendments that are the product of constructive work with the Welsh Government, the Ministry of Justice and others.
The Government’s key aim in introducing the new reserved powers model is to deliver clarity on the boundary between the Assembly’s competence and the competence of this Parliament, particularly in the light of the Supreme Court judgment on the Agricultural Wages Board settlement. Many amendments therefore either alter or remove altogether reservations contained in new schedule 7A to the Government of Wales Act 2006.
The Government have tabled a number of amendments to deal with the planning system and the law that governs the construction of buildings, responding to concerns raised by the Welsh Government. Amendment 71 devolves competence for planning in relation to railways, making it consistent with the position in Scotland. We have also brought forward amendments that replace the full reservation of compulsory purchase with one that covers only compensation. This was again in response to discussions between the UK Government and the Welsh Government.
As for amendments to schedule 1 more widely, we have demonstrated our willingness to devolve significant further powers to the Assembly where a clear rationale can be made for doing so. Amendment 80 removes the reservation relating to teachers’ pay and conditions. This was something that I was keen to devolve from the outset, but I recognised concerns that were expressed by colleagues on all sides of the House as well as by the teachers’ unions. Following constructive engagement with the First Minister and discussions between officials, we are pleased that we both came to the same conclusion—that education is a devolved matter and that it makes more sense for the Assembly and Welsh Ministers to decide the pay and conditions of teachers in Wales, particularly in the light of the greater divergence between the education models that exist in England and the education model that exists in Wales. It is sensible to devolve teachers’ terms and conditions.
Amendment 72 devolves the community infrastructure levy in Wales. That was a priority for the Welsh Government, and has been for a number of years. We have listened to the case that they made and we are again delivering on a demand made by them. We were happy to respond positively and constructively to these calls.
Finally, amendments 36 and 52 devolve legislative and Executive competence to the Assembly and Welsh Ministers to regulate the number of high-stake gaming machines, authorised by new betting premises licences in Wales. This is an issue in which the hon. Member for Swansea East (Carolyn Harris) showed particular interest and passion during the earlier stages of the Bill’s scrutiny. The Silk commission made no recommendation on the devolution of betting, gaming and lotteries, but we agreed as part of constructive dialogue with the St David’s day process to consider non-fiscal recommendations made by the Smith commission that it would be appropriate to take forward in Wales.
Nick Thomas-Symonds
I, too, place on record my congratulations to my hon. Friend the Member for Swansea East (Carolyn Harris) on the success of her campaign on this issue. Does the Secretary of State agree that when statistics show that an average of £3,000 a day is being staked on these machines, it is very important to devolve these powers and for the regulations to be implemented?
Alun Cairns
I will come on to that specific point, because a review is being conducted by the Department for Culture, Media and Sport which will address the specific issues that the hon. Gentleman raises. For the moment, I shall stick to explaining the rationale behind the amendments on fixed odds betting terminals.
One proposal was for the powers to be devolved to stop the proliferation of these so-called fixed odds betting terminals. We concluded that these powers should be devolved in Wales, as they are in Scotland, coming out of the Smith commission. Amendments 36 and 52 therefore ensure that the Bill mirrors the provisions in the Scotland Act 2016 in respect of high-stakes gaming machines. The amendments apply to sub-category B2 gaming machines, and would provide the Welsh Government with a means to address public concerns in Wales regarding the proliferation of these machines. These machines were regulated by the Gambling Act 2005, which was introduced when the Labour party was in power.
The Opposition amendments would go much further than what is already devolved in the Scotland Act by extending this provision to all existing gaming machines with a stake of more than £2, and by devolving powers over existing licences. We did not believe that that was appropriate. As I mentioned a moment ago, the Government have already announced a review into the issue because we recognised the flaws in the 2005 Act. As a result, we are carrying out a thorough process to examine all aspects of gaming machine regulation, including the categorisation, maximum stakes and prizes, location and number of machines, and the impact that they have on players and the communities in relation to, for instance, problem gambling and crime. All those factors are potentially relevant and interrelated. The powers that we have agreed to devolve are intended to enable the Welsh Government and the Assembly to take action to prevent the proliferation of fixed odds betting terminals.
The review that we have announced is the appropriate mechanism for consideration of all those issues in a far more holistic way. I urge Opposition Members not to press their amendments to a vote, but if they pursue them, I shall do my best to respond to some of the issues that concern them. I urge Members to support the Lords amendments.
Susan Elan Jones
I support Labour’s amendment (a) to Lords amendment 36, which would reduce the relevant stake for fixed odds betting terminals to £2. I welcome the review that is being carried out by the Department for Culture, Media and Sport, and I also welcome the move to devolve this power to the Welsh Assembly. My reason for doing so is very much in line with all the work that has been done by my hon. Friend the Member for Swansea East (Carolyn Harris), but I fear that we could find ourselves in a ridiculous position. All of us—apart from certain advocates for the betting industry—know that what is happening with fixed odds betting terminals is deeply concerning. Figures as high as about £1.7 billion have been quoted as the profits made on these horrible machines, which cause so much devastation in our communities. We all agree that something must be done fairly urgently, but I fear that the House of Commons could collectively vote to put in place a stake of below £10 but then, if we pass the Lords amendment as it stands, the stake could be reduced only to a minimum of £10 in Wales. That does not seem right to me.
Let me put it another way. Collectively, the House could vote for a maximum stake of £2 in England and Wales, but once the matter is devolved to Wales, the Welsh Government would be limited to £10 and then the House of Commons could not go for a lower stake here, simply because the Government would tell us that that this was a case of English votes for English laws and we would be banned from lowering the stake.
All we are asking for is something very pragmatic—something that would give us the right to decide the level of the stake and benefit communities. Let us make no bones about it: these machines, and what is happening in the gambling industry, are hitting our poorest communities the hardest. We see the impacts of it in our industrial villages and in our towns. Let us say once and for all to the harder elements of the gaming industry, some of whom I am sure will be e-mailing us all later, that the nonsense of what is happening with FOBTs must come to an end. Let us say, “Do not think you can intimidate us, or those in the communities who are fed up with the hold that you have on them.”
It is time for us to act firmly. It is time for us to give the Welsh Government full devolution in this regard. It is time for us to lower the stake even further, if possible. It is time for the Welsh Government to have the power to do that, and, hopefully, this place will as well.
Alun Cairns
With the leave of the House, Madam Deputy Speaker, I would like to respond to the points that have been made. I thank all those Members who have made contributions today, and throughout the Bill’s passage through the House and the other place.
I am disappointed that the Opposition want to divide the House on the proposals we introduced in the other place on fixed odds betting terminals. Those proposals responded positively to calls that were made by colleagues on both sides of the House and by the Welsh Government. The Silk commission made no recommendations in that area, but having considered the Smith commission recommendations for Scotland we believe it is right to put the Assembly on the same footing as the Scottish Parliament and allow it to legislate on the proliferation of fixed odds betting terminals in Wales.
Albert Owen (Ynys Môn) (Lab)
The Secretary of State asserts that only Members on this side of the House oppose the proposals, but Conservative Members of the Welsh Assembly oppose what the Government are proposing and have supported my hon. Friend the Member for Swansea East (Carolyn Harris), including Darren Millar from north Wales. Has the Secretary of State consulted his Assembly Members on this point?
Alun Cairns
The hon. Gentleman makes a relevant point. We take the issue of problem gambling seriously. As I mentioned, we are committed to looking at all aspects of gaming machine regulations as part of a wide-ranging review of gambling. The regulation of fixed odds betting terminals is covered by the Gambling Act 2005, and we recognise that flaws exist in the current regulatory arrangements. They were introduced by the Labour party and it is time that they were reviewed. That is what my right hon. Friend the Secretary of State for Culture, Media and Sport is doing. We will act when that work has been completed, so I hope hon. Members will vote against the Opposition amendments and in support of the Lords amendments tabled by the Government.
The hon. Member for Newport West (Paul Flynn) suggested that the Bill showed a half-hearted approach to devolution. In the positive spirit in which the Bill has progressed through both Houses, I remind him that legislative competence orders were in place when we came into power in 2010 and started this process. A conferred model was in place then; the Bill introduces a reserved model. We have in place a needs-based funding settlement—something that has been called for for decades—and we are devolving significant tax powers. We have removed the water intervention powers and extended the Welsh Government’s powers in a significant range of areas, such as energy, fracking, elections and running their own affairs. A host of positive steps have been taken.
We all know that Members in the other place rightly pay close scrutiny to matters of constitutional importance in Bills such as this. Despite being in a minority in the other place, the Government were not defeated on the Bill, so I hope that Members from both sides of the House, and all Opposition Members, will recognise the significance of the Bill and, once and for all, welcome it because of the positive steps it takes in bringing about a devolution settlement that will last for a long time to come.
Lords amendment 1 agreed to.
Lords amendments 2 to 8, 11 to 27 and 33 to 35 agreed to.
After Clause 48
Gaming machines on licensed betting premises
Amendment (a) proposed to Lords amendment 36.— (Jo Stevens.)
Question put, That the amendment be made.
Wales Bill: English Votes for English Laws
Alun Cairns Excerpts(8 years ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Wales (Alun Cairns)
I am pleased to announce the publication of analysis of English votes for English laws in relation to Government amendments to the Wales Bill during its passage through the House of Lords.
The English votes for English laws process applies to public Bills in the House of Commons. To support the process, the Government have agreed that they will provide information to assist the Speaker in considering whether to certify that Bill or any of its provisions for the purposes of English votes for English laws. Bill provisions that relate exclusively to England or to England and Wales, and which have a subject matter within the legislative competence of one or more of the devolved legislatures, can be certified.
The memorandum provides an assessment of tabled Government amendments to the Wales Bill, for the purposes of English votes for English laws, ahead of Commons consideration of Lords amendments (CCLA). The Department’s assessment is the amendments do not change the territorial application of the Bill.
This analysis reflects the position should all the Government amendments be accepted.
The memorandum can be found on the Bill documents page of the Parliament website at: http://services.parliament. uk/bills/2016-17/wales.html and I have deposited a copy in the Libraries of both Houses.
[HCWS423]
Welsh Government Fiscal Framework
Alun Cairns Excerpts(8 years, 1 month ago)
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The Secretary of State for Wales (Alun Cairns)
The UK Government and Welsh Government are today announcing a new funding settlement for Wales based on need, empowering the Welsh Government to grow the Welsh economy.
This historic agreement lies at the heart of the Wales Bill’s determination to provide secure, long-term funding for the Welsh Government. The deal sets out how the Welsh Government will be funded alongside the devolution of stamp duty land tax, landfill tax and Welsh rates of income tax in a manner that is fair for Wales and fair for the rest of the UK.
Through these new and principled arrangements, the Government have ensured that the Welsh Government will have a fair level of funding for the long term, taking into account Welsh tax capacity and treating population change consistently across tax and spending.
This deal underlines the mature relationship between Westminster and Cardiff as we move closer to agreeing a lasting settlement for the people of Wales.
This will be achieved through the creation of a new needs-based factor within the Barnett formula to determine changes in the Welsh Government’s block grant in relation to devolved spending. The Governments have also agreed to use the Comparable model to determine changes in the Welsh Government’s block grant in relation to tax devolution. Alongside the Barnett formula, this will ensure population change is treated consistently within the Welsh Government’s block grant funding.
This agreement will also double the Welsh Government’s overall capital borrowing limit to £1 billion and increase the annual limit to £150 million. We will also create a new Wales reserve to enable the Welsh Government to better manage its budget.
This agreement therefore paves the way for the National Assembly for Wales to consent to the Bill and enable the Welsh Government get on with the job of using their new tax powers to grow the Welsh economy.
[HCWS377]
Oral Answers to Questions
Alun Cairns Excerpts(8 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Wayne David (Caerphilly) (Lab)
The Secretary of State for Wales (Alun Cairns)
The Welsh economy approaches EU exit from a very strong position. Since the vote to leave the EU we have seen economic inactivity continue to fall in Wales while employment has risen to a record high. Businesses continue to show confidence in the economy, with new investment across the UK fundamental to prosperity in Wales.
Margaret Ferrier
Wealth inequality in the British state hits Wales hard, with Welsh gross value added just scraping 71.4% of the UK average. EU structural funds have been key to combating this home-grown unfairness. Will the Minister guarantee today continued future UK funding to replace in full the lost EU regional money?
Alun Cairns
The hon. Lady raises an important issue, and I would say that Wales has been the fastest growing part of the UK outside London since 2010. She makes an important point in relation to the future of structural funds. She will also appreciate that they are meant to be a short-term boost to the economy, but after 16 years and after £4 billion has been spent, west Wales and the valleys have 64% of UK GVA. I am sure we need to use this opportunity to be positive and do something better with similar structural support.
Wayne David
Does the Secretary of State’s answer to that last question imply the Government intend to change the agreed priorities for the spending of the structural funds?
Alun Cairns
The hon. Gentleman will appreciate both that his constituency has experienced some significant falls in unemployment since 2010 and that after all that money has been spent those areas voted in the strongest numbers to leave the EU. The point I am making is that the current programme has not worked and has not fitted those communities. Exiting the EU presents an ideal opportunity to revisit this and look to see what we can do better for the hon. Gentleman’s constituency and other communities in Wales in need.
David T. C. Davies (Monmouth) (Con)
Does my right hon. Friend agree that the people of Wales voted clearly for Brexit and they do not need to be represented by the SNP or the Welsh Assembly Government who are ignoring their views, but will be pleased to have a Conservative Government and an excellent Secretary of State for Wales who will carry out their wishes?
Alun Cairns
I am grateful to my hon. Friend for his kind comments, but of course we have a close and constructive working relationship with the Welsh Government and all devolved Administrations because it is in our interests to get the strongest deal for the whole of the UK. After all, as my hon. Friend will recognise, the most important market for Welsh business is the UK market, and getting the best deal for the whole of the UK is in all our interests.
Stephen Crabb (Preseli Pembrokeshire) (Con)
The automotive and aerospace sectors are of enormous strategic importance for the Welsh economy. Given that Brexit probably will not mean retaining full membership of the single market, will my right hon. Friend nevertheless commit to do everything he can to retain full single market-style benefits for those critically important sectors in the Welsh economy?
Alun Cairns
My right hon. Friend raises an important point. He recognises the strength of the automotive and aerospace sectors, and I would point to some significant major investments the UK has landed. We are all familiar with Nissan investment in Sunderland, but it is equally important to the Welsh economy—Calsonic Kansei in Llanelli is a supplier to Nissan in Sunderland. We want to maintain the most open market arrangements, and the confidence shown by Nissan demonstrates it understands the priority we are placing on that.
Hywel Williams (Arfon) (PC)
This week Hybu Cig Cymru, the Farmers’ Union of Wales and NFU Cymru have all made the overwhelming case in favour of tariff-free access to the EU for our world-class Welsh red meat. What is the Minister doing to ensure the voice of agriculture is heard in government?
Alun Cairns
The hon. Gentleman raises an important point and the Under-Secretary, my hon. Friend the Member for Aberconwy (Guto Bebb), was at the winter fair in Builth Wells yesterday in Llanelwedd where he met the FUW and the NFU. We are in close dialogue with the farming unions in Wales and across the whole of the UK. Clearly Welsh agriculture is an important part of the Welsh economy and of our export market, and we want to maintain the most open trading relationship possible in its interest.
Hywel Williams
Welsh agriculture is spectacularly successful in EU markets; 93% of our excellent Welsh beef and lamb exports go to EU countries. What steps is the Secretary of State taking to ensure French, Italian, Spanish and German people continue to eat Welsh meat in the future?
Alun Cairns
The hon. Gentleman makes an important point. I too want to ensure that those across the European Union and elsewhere have the opportunity to benefit from the excellent produce that comes from Wales, including Welsh beef and Welsh lamb. We want to be global leaders in free trade. We also want the most open trading relationship with Europe that we can possibly get, and that is our determination and focus in our negotiations.
Mr Peter Bone (Wellingborough) (Con)
I ran a manufacturing business in south Wales for 13 years, and it is a great place to do business. We manufactured and sold all over the world. Does the Secretary of State agree that the fall in the pound as a result of the Brexit vote makes it much easier for Welsh exporters to increase their sales?
Alun Cairns
I am grateful to my hon. Friend for his question, because it gives me the opportunity to highlight the fact that Wales now has 37,000 more manufacturing jobs than in 2010. That demonstrates the strength and vibrancy of the Welsh economy. Clearly we want to do all we can to support our manufacturers. The value of the pound will have positive results for some businesses and perhaps present challenges for others, but those exporters who want to grow are clearly in a stronger position.
Jo Stevens (Cardiff Central) (Lab)
The Secretary of State referred earlier to the importance of the automotive industry in Wales. Ford announced in September that it would guarantee around a third of the jobs in its 1,800-strong workforce at Bridgend. Those jobs are vital to the local community and to the supply chain in Wales, but we are still concerned about the lack of commitment post-2020. The lack of any plan from the Government for Brexit is exacerbating the uncertainty and causing doubts about the plant’s future, so will the Secretary of State today commit his Government to giving Ford the same deal that they gave to Nissan in order to secure the future of the Bridgend plant and Ford’s presence in the UK post-Brexit?
Alun Cairns
The hon. Lady has raised an important point. My understanding of the situation is that Ford is continuing with more than £100 million-worth of new investment in the plant. That demonstrates the confidence that Ford has, not only in the Bridgend plant but in the UK economy. This builds on the strength of the automotive sector, which is extremely important to the Welsh economy and to the UK economy as a whole.
Alex Cunningham (Stockton North) (Lab)
The Secretary of State for Wales (Alun Cairns)
The Welsh economy remains fundamentally strong, highly competitive and open for business. We are part of a strong United Kingdom, and leaving the EU offers Wales an unprecedented opportunity to forge a new role for ourselves in the world, to negotiate our own trade agreements and to reap the benefits of foreign investment.
Alex Cunningham
What discussions has the Secretary of State had with the First Minister about the potential loss of links and connections that have been built up through organisations such as the European Committee of the Regions, and how will he seek to maintain those connections after Brexit?
Alun Cairns
The Welsh Government and I have a warm working relationship. Only last week, two Secretaries of State and two other Ministers met at the British-Irish Council that took place in my own constituency of Vale of Glamorgan. Of course we have strong bilateral relationships, and it is right that we use the Joint Ministerial Council to form the basis of the negotiations as we exit the European Union. I want to maintain the warmest and most constructive relationship possible with the Welsh Government, with all the devolved Administrations and with the Crown dependencies.
Michael Fabricant (Lichfield) (Con)
But does my right hon. Friend accept that this is not just about manufacturing, and that it is not only the exporters of Welsh Black beef who are important? One of the biggest exports for Wales is tourism. People tell me that, with the lower value of the pound, there are more foreign visitors in Snowdonia than ever before and that overseas companies are making more inward investment in Welsh hotels and marketing.
Alun Cairns
My hon. Friend makes an extremely important point. Wales has a fantastic record of attracting inward investment projects. He has focused on tourism, which gives me the opportunity to highlight the fact that north Wales has been named by Lonely Planet as the fourth top place in the world to visit in 2017. It is the only part of the United Kingdom to have been chosen, and that is something that we should celebrate and market to ensure that more people come not only to the UK but to north Wales.
Ian C. Lucas (Wrexham) (Lab)
Inward investment is a key driver of decisions to invest in particular areas, and the manufacturing powerhouse of north-east Wales needs inward investment not only from the private sector but from the Government. Will the Secretary of State put his money where his mouth is and commit the UK Government to matching Welsh Government investment in new infrastructure, including road and rail, in north-east Wales?
Alun Cairns
The hon. Gentleman shows a close interest in the Mersey Dee area and has shown particular interest in the north Wales growth deal, which my right hon. Friend the Chancellor mentioned in the autumn statement. We are keen to progress it and are waiting for details of the bid. I am sure that the hon. Gentleman will recognise the major success of that part of the world being chosen for the global F-35 repair centre, which will inject billions of pounds over decades into north-east Wales and MOD Sealand. We should recognise and celebrate that.
Jo Stevens (Cardiff Central) (Lab)
More than £2 billion of capital investment has been made over the past decade across Wales in social housing, transport, energy, water and education through the European Investment Bank. What plans has the Secretary of State put in place to mitigate the potentially disastrous consequences of leaving the EU on pre-existing EIB loans to organisations and public bodies in Wales? Crucially, what plans does he have to replace the funding that the EIB has been able to provide?
Alun Cairns
Our negotiations with the EIB will run in parallel with our negotiations with the European Commission. The hon. Lady has a responsibility to try to instil confidence in investment in Wales, not to undermine it. Only last week, the Chancellor announced a further capital injection of £436 million. I would hope that the hon. Lady would want to welcome that, not undermine investment, employment and jobs—it really does not become her.
Alberto Costa (South Leicestershire) (Con)
Karl MᶜCartney (Lincoln) (Con)
The Secretary of State for Wales (Alun Cairns)
Since the referendum in June, I have had discussions with a wide range of stakeholders across Wales, from the Wales Council for Voluntary Action, to the farming unions, the CBI Wales and the Institute of Directors in Wales, to hear their views on how to secure the best deal for Wales and the UK as we leave the EU. Those conversations are informing my discussions with Cabinet colleagues, as well as with the Welsh Government.
Nigel Huddleston
Does the Secretary of State agree that we should not just focus on businesses as we leave the EU? We should also consider the implications for the third sector, charities, local authorities and universities in Wales.
Alun Cairns
My hon. Friend makes an extremely important point. I have already talked about my warm relationship with the Welsh Government, but of course the UK Government should also have a warm relationship with universities, charity groups and environmental groups, as well as with businesses directly in Wales. The Welsh Government have an important part to play, but we also have a direct relationship with those key stakeholders.
Karl MᶜCartney
Does my right hon. Friend recognise that there is more than one voice in Wales and not simply the voice of the Welsh Government, who still cannot accept that the majority of Welsh people voted to leave the European Union? We must therefore engage with all Welsh stakeholders and partners who are key to ensuring that Brexit will be a success for everyone in the UK.
Alun Cairns
My hon. Friend raises an important point. Of course we engage positively with the Welsh Government, and we will continue to do so. I have already had scores of meetings with key stakeholders in Wales. My hon. Friend the Under-Secretary of State for Wales was at the Royal Welsh Agricultural Society’s winter fair yesterday doing that very thing—engaging with Welsh farmers and with Welsh farming unions.
Mr David Hanson (Delyn) (Lab)
Given the uncertainty over the single market and the Prime Minister’s failure to raise steel when she met the Indian Government recently, what steps will the Secretary of State take in the near future when he meets trade unions representing the steel industry to discuss the impact of the loss of the single market?
Alun Cairns
I hope that the right hon. Gentleman will do all he can to instil confidence in our ambitions to gain the most open trading relationship possible. He rightly raises steel. I am sure that he will recognise that we are in a much stronger position now than we were back in March. That is a result of reduced energy costs for the sector of £109 million. We have changed the procurement rules, offered flexibility in environmental packages and implemented strong pan-EU anti-dumping measures, which will reduce the threats of imports by more than 90% in a whole range of sectors.
Mr Mark Williams (Ceredigion) (LD)
The success of the Welsh red meat sector has meant that £225 million has been ploughed back into some of the most fragile rural communities in Wales. In his meetings, has the Secretary of State heard that message, and will he push the case for access to the single market to protect those very communities?
Alun Cairns
Like the hon. Gentleman, I have a lot of confidence in the Welsh red meat sector. I am sure that our European nations do not want to go without our high-quality Welsh red meat. We are determined to support our farmers in gaining the most open trading relationship possible, so that European nations can continue to enjoy the quality of Welsh produce.
Susan Elan Jones (Clwyd South) (Lab)
Oral Answers to Questions
Alun Cairns Excerpts(8 years, 3 months ago)
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Alberto Costa (South Leicestershire) (Con)
The Secretary of State for Wales (Alun Cairns)
I am sure the whole House will join me in marking the 50th anniversary of the Aberfan tragedy this Friday. That event shocked not just Wales but the whole of the country and the wider world. I am sure colleagues across the House will pay tribute to the bravery and strong community ties that pulled the people of Aberfan through the immediate aftermath and provided so much support in the months and years that followed.
Wales is benefiting from millions of pounds of UK investment across the country. We are modernising our rail infrastructure, investing in the North Wales prison, and providing significant funding and support to improve internet speeds. This is a clear demonstration of the Government’s commitment to delivering improvements in infrastructure in all corners of Wales.
Alberto Costa
Wales receives its funding from the Barnett bloc, but does my right hon. Friend recognise that the UK Government have a part to play in UK infrastructure so that it meets the strategic need in the UK as well as in Wales?
Alun Cairns
My hon. Friend raises an important point. He rightly underlines the Barnett arrangements, and we were pleased to introduce a funding floor that provides Wales with £115 for every £100 that is spent in England. In addition, we have the electrification of the Great Western main line, North Wales prison is a significant project, and we have broadband roll-out. After all, we are interconnected economies, and the Government are determined to do the best for the whole of the UK.
Ian C. Lucas (Wrexham) (Lab)
Alun Cairns
I pay tribute to the hon. Gentleman for the work he is doing cross-border with the Mersey Dee Alliance and the all-party group on Mersey Dee North Wales. That resonates with our policy to develop a growth deal that works on a cross-border basis. We are working with those who are developing the north Wales growth deal. We are in negotiations on that. We have recently received the Growth Track 360 bid, and we will analyse that in due course. We are keen to work together, and with the Welsh Government.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
Alun Cairns
My hon. Friend highlights the investment in the Great Western main line, and much attention is rightly drawn to the infrastructure of the electrification itself. However, it is fair to say that, as soon as we have electrified as far as Didcot or Swindon, the new trains will be operational, so his constituents, my constituents and those in Wales and the south-west in general will benefit from modern trains well before the infrastructure has been completed.
Susan Elan Jones (Clwyd South) (Lab)
Roads are critical in infrastructural investment—roads on both sides of the border. What conversations has the right hon. Gentleman had with the Welsh Government about the A5/A483, which goes from Oswestry towards the Wrexham area, given the particular road safety problems in the community of Chirk?
Alun Cairns
The hon. Lady raises an important point. It is something that has crossed the discussions over the north Wales growth deal, and it underlines the interconnectivity of the region she mentions with Manchester, Merseyside and north Wales. We are working closely with the Welsh Government on their infrastructure plan and the national infrastructure plans for the whole of the United Kingdom. It is important that they dovetail appropriately.
Dr James Davies (Vale of Clwyd) (Con)
Alun Cairns
I pay tribute to my hon. Friend for the work he has done on this important issue. I think he drew attention to it at one of the first meetings immediately after the general election, and that started the discussions that have led to the Growth Track 360 proposal. There are growth elements and transport infrastructure elements, and it is important that we ensure that those come together for the benefit of the whole region. I am happy to work with him and with the Department for Transport as we approach the control period 6 considerations that will take place in due course.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
I, too, associate my party and myself with the Secretary of State’s comments on the Aberfan disaster.
The Treasury aims to pool local government pension schemes in Wales and England to create wealth funds to invest in infrastructure, with each fund containing accumulated assets of £25 billion. Combined Welsh assets amount to £13 billion, meaning that if the Treasury has its way, Welsh funds will be swallowed up by a cross-border pool. Will the Secretary of State demand a specific Welsh wealth fund so that the contributions of Welsh local government workers are used to invest in infrastructure projects in Wales?
Alun Cairns
The hon. Gentleman raises a fairly technical area of policy. Appropriate economies of scale are involved in this. I am happy to discuss the details with him. The Welsh Government have made their views clear. However, it is not only about “Welsh money for Wales”—which, on the face of it, would sound good—but about having the economies of scale such that we can access funding elsewhere as well. Therefore, it is not necessarily the right thing, but I am certainly not closed to the idea.
Geraint Davies (Swansea West) (Lab/Co-op)
Margaret Greenwood (Wirral West) (Lab)
The Secretary of State for Wales (Alun Cairns)
I remain in close contact with my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy on the proposed lagoon at Swansea bay. This is an exciting project for Wales. I am due to meet Charles Hendry tomorrow to gain an update on the progress of the independent review, and I look forward to reading the findings when he reports later this autumn.
Margaret Greenwood
Last week, Sheffield Forgemasters and a host of other industrial companies in the northern powerhouse urged Charles Hendry to back a new tidal lagoon project, so I welcome the Secretary of State’s comments. If the Government will not listen to Wales, will they listen to the industrial north and finally get on with the Swansea bay tidal lagoon project ?
Alun Cairns
I recognise the hon. Lady’s interest in all things environmental, but Charles Hendry’s review has been seen as a positive intervention. The approach he has taken has been welcomed, as has been pointed out, not only by the lagoon company, local authorities and politicians, but by the business community in south Wales and across the northern powerhouse. We recognise the contribution that it could make, and we are looking forward to his judgment.
Edward Argar (Charnwood) (Con)
While it is important to take the findings of the Hendry review into account, will the Secretary of State press for progress on this exciting project as soon as it reports? The project not only has the potential to deliver clean energy, but will continue to build on the success, vibrancy and ambition that characterises Swansea and Wales.
Alun Cairns
My hon. Friend, like me, looks forward to the Charles Hendry report. There is no doubt that, as a test project, it has great potential for Swansea bay, but he, like me, has an obligation to the taxpayer to ensure that it works for consumers and taxpayers, and that it represents good value for money for all concerned.
Carolyn Harris (Swansea East) (Lab)
Alun Cairns
The hon. Lady and I agree that we would like something like that to be developed and to go ahead for the prospects and opportunities it will provide, but we have an obligation to the taxpayer: we have to ensure that it provides value for money. Only in recent weeks, the hon. Lady and her colleagues have complained about the cost of energy for Tata and other energy-intensive industries. It is important that we generate energy in a cost-effective way that suits consumers as well as taxpayers.
Paul Flynn (Newport West) (Lab)
Alex Cunningham (Stockton North) (Lab)
The Secretary of State for Wales (Alun Cairns)
I am in regular contact with my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy, the First Minister and the Welsh Minister for the Economy. We have not lost focus while these issues have been out of the headlines. The Government leave no stone unturned in supporting the steel sector.
Alex Cunningham
What assurances can the Secretary of State give that, in the event of the completion of a joint venture by Tata Strip Products and ThyssenKrupp, commitments will be made on jobs, investment and the continuation of primary steel making at Port Talbot and across Wales?
Alun Cairns
It is in the UK’s strategic interests to maintain a steel-making capacity, and so quite obviously to maintain that at Port Talbot. The Government stand ready and waiting to support any bidder. It is a matter for Tata as to whether it pursues the joint venture. We are maintaining a relationship with Tata and other potential bidders that were in discussions earlier this year. We are keen to maintain a sustainable future.
Wayne David (Caerphilly) (Lab)
Welsh steel is obviously of the highest quality, and I hope that when Heathrow airport is expanded Welsh steel will be used. In that sense, will the Secretary of State have a word with the Prime Minister to ensure that she stops faffing around on Heathrow expansion and that we have a positive decision as early as possible?
Alun Cairns
The hon. Gentleman tempts me, but he knows that that decision will be coming soon. He makes an important point about the use of steel in infrastructure projects. The UK Government have already changed procurement rules, making it easier for British steel to be used in contracts. For example, Crossrail, Europe’s largest civil engineering scheme, uses almost entirely British steel.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
As the representative for Merthyr Tydfil and Rhymney—[Interruption.]
Gerald Jones
Thank you, Mr Speaker. As the representative for Merthyr Tydfil and Rhymney, I too would like to associate myself with the comments of the Secretary of State and the shadow Secretary of State, my hon. Friend the Member for Cardiff Central (Jo Stevens), in relation to the 50th anniversary of the Aberfan disaster, an unimaginable loss for the families and, indeed, the whole community.
One major challenge—if not the major challenge—facing the Welsh steel industry is that its energy costs are far higher than those of our competitors. Despite warm words, little action has been taken. What action is the Secretary of State or the Government taking to bring down energy costs faced by energy-intensive industries?
Alun Cairns
I welcome the hon. Gentleman and his hon. Friend the shadow Secretary of State to their positions. He makes an important point on steel-making capacity and energy costs. He will be well aware that the energy-intensive industry package the Government have brought forward responded to the demands from the industry and from Tata specifically. We have reduced energy costs to the steel sector by £109 million, which has been welcomed and has put the sector in a much stronger position, with a turnaround in finance from a loss of £64 million to an operating profit of £95 million.
Louise Haigh (Sheffield, Heeley) (Lab)
Wales Bill: English Votes for English Laws
Alun Cairns Excerpts(8 years, 4 months ago)
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The Secretary of State for Wales (Alun Cairns)
I am pleased to announce the publication of analysis of English votes for English laws in relation to Government amendments to the Wales Bill at Commons Report.
The English votes for English laws process applies to public Bills in the House of Commons. To support the process, the Government have agreed that they will provide information to assist the Speaker in considering whether to certify that Bill or any of its provisions for the purposes of English votes for English laws.
The memorandum provides an assessment of tabled Government amendments to the Wales Bill at Commons Report, for the purposes of English votes for English laws. The Department’s assessment is the amendments do not change the territorial application of the Bill.
The memorandum can be found on the Bill documents page of the Parliament website at: http://www.parliament. uk/bills and I have deposited a copy in the Libraries of both Houses.
[HCWS145]
Boundary Commission for Wales: Reappointments
Alun Cairns Excerpts(8 years, 4 months ago)
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The Secretary of State for Wales (Alun Cairns)
I should like to inform the House that I have made the following reappointments under Schedule 1 to the Parliamentary Constituencies Act 1986:
Mr Paul Loveluck CBE reappointed as a member of the Boundary Commission for Wales, effective from 4 October 2016 until 3 October 2020, and
Professor Robert McNabb, reappointed as a member of the Boundary Commission for Wales, effective from 4 October 2016 until 3 October 2020.
[HCWS140]