Wales: Economy

Baroness Gibson of Market Rasen Excerpts

Monday 7th April 2014 Grand Committee

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)]

My Lords, I thank the noble Baroness, Lady Morgan, for securing the debate today on this important issue. I have to remark on the change of rhetoric from the Opposition. A year ago, when unemployment was still higher in Wales and the statistics were not so good, we discussed this issue and the Labour Party told us that it was all the UK Government’s fault that Wales was lagging so badly behind. Now that unemployment in Wales has fallen and there are signs of recovery, which we would all welcome strongly, of course, the rhetoric from the Benches opposite is that this recovery is due entirely to the Welsh Government: the UK Government bear no responsibility for it at all.

The truth of the matter, as all noble Lords actually know, is that we all strongly welcome the fact that Wales is at last starting to catch up. Several noble Lords have referred to the fact that the problems with the Welsh economy have existed for many decades, and GVA—to which the noble Lord, Lord Wigley, referred—has been a persistent problem as it has declined over the years. These are not sudden problems and it is absolutely clear that there are levers in the hands of the Welsh Government, but the macroeconomic levers of course remain with the UK Government. It would be helpful if the noble Baroness took some of the advice of the noble Lord, Lord Rowe-Beddoe, and adopted a more open-minded approach to this.

The truth is that, since 2010, the UK economy has gone from rescue to recovery. Wales is now in a great position to take advantage of this. The economy is growing and, as the Chancellor outlined in the Budget, Wales is growing faster than forecast, as is the UK. We are now growing faster than Germany, faster than Japan and faster than the US. I remind the party opposite that it claimed that none of this growth would be possible if the coalition Government continued to take the difficult decisions to deal with the deficit. It predicted disaster, and disaster we have not seen.

I will refer to one or two issues relating to employment. It should be emphasised that since the end of the first quarter of 2010, employment in the private sector in Wales has increased by 114,000. Over the past quarter alone, private sector employment increased by 12,000. Although there has been, as the noble Baroness said, a decline in the number of people employed in the public sector, that decline has been proportionately very much lower than in the rest of the UK and has been very significantly outstripped by the number of jobs created in the private sector.

Reference was made to youth unemployment, which of course seriously worries us all, but youth unemployment was a long-standing problem in Wales. It rose by 74% under the previous Government. It is therefore hugely welcome that the youth claimant count was down by 3,500 in the most recent statistics in February last year. Once again, there appears to be a better picture.

The noble Baroness, Lady Gale, referred to women in the labour market. I am so pleased that she drew attention to that. Since May 2010, the number of women employed in Wales has increased by 36,000. I draw her attention to the fact that, on International Women’s Day, I hosted an event in the Wales Office with leading businesswomen and women in academia in Wales. She asked whether the UK Government had a similar scheme to the one in Wales. The Women’s Business Council has existed for a considerable time and is designed to encourage women at the top of business and to ensure that there is a better spread throughout the business world.

More people have been going out to work in Wales than at any time in our history. Since the election, 81,000 more people are in work in Wales. The employment rate, as has been noted, has increased by more than in any other region of the UK over the year, and unemployment in Wales is now below the UK average, at 6.7%. We absolutely agree that times have been tough for households as the economy recovers, throughout the UK and in Wales, but it is important to acknowledge that, last year, average earnings in Wales increased by 4.4%. That is more than twice the rate of inflation, inflation now being 1.7%, at a four-year low.

Central to the coalition Government’s measures to support families and those in work is the increase in the income tax personal allowance. Only last week, a further 13,000 people in Wales were taken out of income tax—in fact, that happened only yesterday—and 144,000 have already been taken out of income tax altogether in Wales. With our further increase in the personal allowance announced for April 2015, a total of 155,000 people will have been taken out of income tax in Wales as a result of the Government’s decisions. That will make a real difference and will be worth £805 per year to those people, providing a boost to living standards. I also say that, with 1.2 million people working in Wales, virtually everyone in work in Wales will have benefited from the income tax cut to the personal allowance. I see that there is a Division.

[The Deputy Chairman of Committees (Baroness Gibson of Market Rasen) (Lab)]

My Lords, there is a Division in the Chamber and this Committee will therefore stand adjourned for 10 minutes.

Wales: National Assembly Elections

Baroness Gibson of Market Rasen Excerpts

Monday 18th June 2012 Grand Committee

[Baroness Morgan of Ely]

My Lords, I thank the noble and learned Lord, Lord Wallace of Tankerness, for his introductory remarks. I have three questions to ask in relation to this Green Paper. First, why does this need to be done? Secondly, who should decide? Thirdly, why now?

The noble and learned Lord, Lord Wallace, has tried to address the first issue. Of course, the Parliamentary Voting System and Constituencies Act has gone through; there is a boundaries review; there is a reduction in the number of MPs from 40 to 30; and of course previously there was this coterminosity between the MPs’ constituencies and the first past the post constituencies in the Assembly. Of course, that meant that there will be a hole somewhere. If we are to carry on with the current arrangements, we would still need to consider the fact that at some point we may need a boundary review in Wales for the Assembly. I therefore understand that there is a legal hole somewhere that we need to fill. There is also a Fixed-term Parliament Act that will have a knock-on effect. It is not a good idea to have a general election at the same time as an Assembly election.

However, my real concern is who should decide. We know that there is a legal right for the UK Government to decide this, as there is a legal right to them to decide if they want to abolish the Assembly if they wanted to—but would they do that? They would not do that because it would be wrong. The will of the people was expressed in a referendum back in 1997, and the package that was then presented to the people included the structure and make-up of how the Assembly is elected. It is therefore possible to impose these proposals and to make them happen, but is it morally right to do so? It should be remembered that in 1997, all three main political parties determined the way that they would like the Assembly to be elected. There is a real question mark there. It is not therefore a good idea to have a referendum to ask the public about this.

At the very minimum, there should be an agreement by the elected representatives of the Assembly that this matter is of critical importance if we believe in devolution. There is a real question mark. What does devolution mean if you can keep on imposing things from London? The principle has been established with the Scotland Act. The matter was not concluded until the Scottish Parliament had spoken. Therefore, my first question to the Minister is, can he give us some kind of assurance that the Assembly will be able to give its view, and that that view will be taken into consideration and accepted by the Government? That is absolutely critical. My understanding is that the First Minister and the previous Presiding Officer were given assurances by the current Prime Minister that the change would not happen without the agreement of the Assembly. It is also worth noting that there is not one Cabinet Member from a Welsh constituency in this Government. It really does look like a throwback to the bad old days of governance of Wales from London.

My second question is one of timing. I recognise that there is need for a legal framework, but why now? Significant reviews are being undertaken at the moment. The first is, of course, the Silk review, which has two phases—the first looking at fiscal powers and the other at broader powers for the Assembly. Then there is the commission on the West Lothian question, which, again, may have a significant impact on the relationships between all these different institutions. And then there is the huge elephant in the room—the referendum in Scotland. We cannot ignore the fact that that will happen and that there will be an impact on devolution in the broader sense, whatever the outcome.

The Assembly has already been given a considerable increase in powers recently, but no increase in the number of Assembly Members. It may be that Silk will come up with a whole range of suggestions of what the Assembly could be doing in the future. If that is the case, there could be a case for increasing the number of Assembly Members. Now is therefore the wrong time to be making the proposed changes.

I should like to speak briefly about the substance of the document. It contains an assertion that the Government do not seek to give advantage to any political party—which is very good. However, is that reflected in the proposed model? What modelling has been done to suggest that no particular party will get an advantage for a change to the current system?

It is worth reflecting on the first Assembly election in 1999 when there were 40 first past the post seats, only one of which was won by a Conservative, and eight Conservative seats were won on a top-up regional list system. We are all au fait with the likely outcome, but what modelling has been done? What has been done so far in terms of looking at what the consequences might be? Who might be the winners and losers if the Government are so determined that no particular party will gain an advantage?

It is also worth noting that, if there is going to be an increase in the size of the Assembly—

[The Deputy Chairman of Committees]

My Lords, there is a Division in the House.