European Union (Withdrawal) Bill

Baroness Humphreys Excerpts

Committee: 11th sitting (Hansard): House of Lords
Wednesday 28th March 2018 Lords Chamber

[Lord Wigley]

I have no doubt that Cumbria has its problems, and I have no doubt that people from Cumbria will speak up on its behalf. I support entirely that Cumbrian needs should be answered on a needs basis; we are arguing for exactly that for Wales. The current Barnett formula, as this House has recognised, does not provide that needs-based system for funding. So I accept entirely what the noble Lord says.

The point that I was making was that, back in 2000, the Treasury claimed that it already funded ambitious regional economic projects and that the European cash would be gratefully received as a contribution towards such spending. I sought clarification from officials at 10 Downing Street, but no clarification or assurance was forthcoming. In March 2000, I went to Brussels and met the EU regional commissioner, no less than a certain Monsieur Michel Barnier. He just could not believe what I was saying, since the EU funding was provided on the basis of additionality. He asked his officials—yes, those much-derided Brussels Eurocrats—whether what I said could possibly be true. They confirmed my account, and Mr Barnier asked me to give him a couple of months without making political capital on the issue, in which time he would do his best to sort it out.

The eventual outcome to this incredible episode was, as I may have previously mentioned, that as part of his spending review in July 2000 the then Chancellor Gordon Brown announced that the UK Government would be making a payment of £442 million to the Assembly to settle the account. Thereafter, Wales received the money from Brussels, which it had a right to expect.

So please do not tell me the nonsense about Wales being able to trust the Treasury in London more than it can trust Brussels. Such a claim flies in the face of our bitter experience. Unless we have safeguards built into law, there is no reason for us to believe that we can trust the UK Treasury or its Ministers with our future financial well-being. That is why I have proposed amendments to the Bill. If Wales, in the wake of Brexit, is to be thrown back at the mercy of Whitehall, God help us. I beg to move.

[Baroness Humphreys (LD)]

My Lords, I am grateful for the opportunity to speak in support of Amendment 358A in the name of the noble Lord, Lord Wigley, and I thank him for tabling it.

Since 2000, the area of west Wales and the valleys has been in receipt of funding from the European Union. Everywhere one looks in west Wales and the valleys, one finds examples of the benefits arising from this—from the newly transformed Ponty lido to the upgraded railway stations in Aberystwyth, Carmarthen, Llandudno and Port Talbot, where we see the effects of a £21 million cash injection of EU funds. From the National Waterfront Museum on Swansea marina to the regeneration of south Wales valley towns, we see the benefit of millions of pounds from Europe.

We see schemes creating employment, breathing life into communities and improving the quality of people’s lives. In my own area, I have seen EU funding being used to build a new rural development centre, to convert an old mill to a teaching centre and an old school into a community centre and, perhaps, the project that is closest to my heart, for the upgrading of Nant Gwrtheyrn, the Welsh language and heritage centre on the Llyn peninsula. We have also seen major road improvements. The stretch of the A465 from Brynmawr to Tredegar, for example, saw £82 million of EU funding being poured in to help with its construction, helping to improve both safety and connectivity.

These are just a very few examples of the impact of EU funding on west Wales and the valleys. All this has been achieved with the aid of the main funding streams. It may be useful to remind ourselves of the aim of three of the streams and inquire of the Government how they intend to replicate them. The European structural funds have been used to support people into work and training; have supported youth employment, research and innovation projects and business competitiveness in the SME sector; and have overseen renewable energy and energy efficiency schemes. These funds are worth £2 billion from 2014 to 2020. What will replace them in two years’ time?

The common agricultural policy, as the noble Lord has already referred to, is, as those of us who live in Wales know, an essential £200 million-a-year scheme, providing payments to more than 16,000 farms in Wales to help to protect and enhance the countryside. What assurances can the Minister give about how these funds will be allocated in future, and on what basis?

The third scheme that I want to talk about is the Welsh Government Rural Communities—Rural Development Programme 2014-2020. It is a £957 million programme supporting businesses, farmers, the countryside and communities in rural areas and has been essential to areas such as the Conwy Valley, where I live. Could the Minister outline how the Government intend to support rural communities in Wales after 2020?

All this is in stark contrast to the dire lack of funding that came to Wales from the UK Government prior to 2000, which led to west Wales and the valleys being designated as one of the poorest areas in the EU and therefore eligible for objective 1 funding. I am sure that noble Lords will understand my scepticism about future funding commitments if, or when, we leave the EU.

The UK Government’s record on funding to Wales hardly fills one with confidence. It has been proved beyond doubt that the Barnett formula, by which Wales has received its funding for the NHS, education and so on, has been disadvantageous to Wales, yet no Government of any colour have been prepared to address the issues and reform the formula itself to ensure fair funding on a permanent basis. My noble friend Lord Thomas of Gresford and the noble Lord, Lord Wigley, have already spoken about this. In earlier debates on the Bill my noble friend Lord Thomas drew the House’s attention to the disparity in funding under the Barnett formula and voiced his fears that future funding to Wales will perpetuate the situation. As he has so clearly pointed out, the weakness of the Barnett formula in relation to Wales is that it is based on a crude population count, whereas EU funding has always been based on need.

It is certainly time for Ministers to be crystal clear about the amount of funding that will come to Wales—remembering, of course, that we were promised “not a penny less” during the referendum campaign. We need to know the basis on which the funding will be determined and the methods which will be used to distribute it.