Ford in Bridgend
Christina Rees Excerpts(5 years, 6 months ago)
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Christina Rees (Neath) (Lab/Co-op)
I thank the Secretary of State for advance sight of his statement.
Last Thursday’s news of the closure of the Ford plant in Bridgend was absolutely devastating for the exceptional workforce, their families, the town of Bridgend and the wider south Wales community. As a former Bridgend county borough councillor, I completely understand. It is absolutely devastating for the businesses in Ford’s supply chain and the tens of thousands employed in them, and it is absolutely devastating for the automotive sector, UK manufacturing and our entire economy. Ford must rethink its plans to strip away 1,700 highly skilled, quality jobs from the area, and the UK Government must do all they can to support those dedicated workers.
This news is disastrous for all concerned. The chaos caused by the Tory Government’s calamitous handling of Brexit, coupled with the Secretary of State’s continuing inability to stand up for Wales, has allowed Ford to deliver a hammer blow to the workers in Bridgend and the Welsh economy. This is a betrayal of the hard-working and loyal staff who have been committed to delivering savings in making the Bridgend plant one of the most efficient in the world.
It is clear that Ford needs urgently to reverse this treacherous decision and to stand by the highly skilled workforce in Bridgend, rather than chasing profits via cheaper markets in places such as Mexico and India. It is disgraceful that Ford no longer produces a single vehicle in the UK despite its growing market share of car sales. Companies such as Ford originally chose to locate production plants in the UK because it was renowned for its skilled workforce and seen as economically stable compared with other turbulent markets across the world, but the Government’s botched Brexit has changed this. It is causing chaos and uncertainty and undermining business confidence.
Ford is just the latest in a long list of companies, including Airbus, Nissan, Honda and Jaguar Land Rover, to halt investment, cut jobs or close plants as a direct result of this uncertainty. We know that the Tory Government offered Nissan a deal. Was Ford offered a deal? There can be no doubt that this Government’s reckless threats of no deal, accelerated by a self-indulgent leadership contest with hard-Brexit contenders, is having an impact on business decisions across the UK, not just in Wales. Yet again, this is catastrophic news for Wales—news that has come as a direct result of UK Government shortcomings where Wales is concerned and that follows their shortcomings on rail electrification, the Swansea Bay tidal lagoon and the steel industry. This is just one of a string of failures on the Secretary of State’s watch. I call on him to apply pressure on Ford to do the right thing and rethink its catastrophic plans.
I thank my hon. Friend the Member for Bridgend (Mrs Moon) for all the work that she has done to support the plant and its workforce, now and in many previous years. I also thank my hon. Friend the Member for Ogmore (Chris Elmore)—who represents the neighbouring constituency—for all that he is doing to support the many hundreds of people in the area who are being affected. I thank other Welsh Labour Members whose constituents work at Bridgend Ford and in its supply chain, and I thank the trade unions.
The automotive industry is the backbone of our manufacturing sector, supporting highly skilled, quality employment and making an enormous contribution to our economy, but its future, in Bridgend and across the UK, is in jeopardy. I call on the Secretary of State to do now what he has failed to do previously and stand up for Wales. He must speak with Cabinet colleagues to seek the financial support and stimulus which will match what has already been committed by the Welsh Government.
Alun Cairns
I thank the hon. Lady for her comments, but I must express disappointment in the tone that she chose to take, which contrasted with the tone adopted by both the Welsh Government and the unions.
Earlier, the Business Secretary and I spoke to Ken Skates, the unions and many local Members of Parliament as part of a communications plan to share our ambitions and discuss the steps that we will take before the taskforce meets, hopefully later this week. Ken Skates and I will be joint vice-chairs of that taskforce and there will also be a chair from industry. That demonstrates the joint approach that we are taking, in a constructive way, recognising that this is a commercial decision made by Ford because of the change in the marketplace caused by the shift from petrol and diesel engines to electric vehicles. I commend the Welsh Government for the joint working that they have demonstrated so far, and I commend the unions for their engagement and the tone that they have adopted in the discussions.
Like many other Members, the hon. Lady pointed to Brexit. Those Members are being somewhat selective. It is right that the manufacturing sector, in particular, seeks a stable economic environment from which to export to the European market, but Ford was a strong supporter of the Prime Minister’s deal, which the Labour party chose to vote against. Whatever uncertainty exists over the Brexit negotiations, I think that the hon. Lady and other Labour Members need to accept their responsibility. They played a part in that. They have been highly selective in quoting comments and recommendations from Ford.
The hon. Lady was right to say that this is a highly efficient plant with a very skilled workforce. We will continue to work to attract investment in the site, be it from Ford—although we have not succeeded in doing that since the Jaguar Land Rover engine contract was announced—or others. We will also engage with other potential investors in the Brocastle site, which is adjacent to the Ford plant. We are in discussion with some potential investors at a mature stage, but it will be up to those organisations to make the final decision about whether to invest. We are in discussion with other organisations in the automotive sector that could provide exciting opportunities. We all recognise the skill and the quality of the workforce. The potential investors recognise it, which is why they are engaging so positively with us and with the Welsh Government. I also underline that Ford job losses are also taking place in Europe: there have been 5,000 job losses in Germany as well as job losses and shift changes in Spain.
In closing my response to the hon. Lady, I remind her that there are now 100,000 more manufacturing jobs in the UK economy and 13,000 more manufacturing jobs in Wales than there were in 2010.
St David’s Day
Christina Rees Excerpts(5 years, 9 months ago)
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Christina Rees (Neath) (Lab/Co-op)
We have had a superb debate on St David’s Day, and I thank my hon. Friend the Member for Gower (Tonia Antoniazzi) for securing it. I agree with my hon. Friend the Member for Ynys Môn (Albert Owen) that we should not have to go cap in hand to the Backbench Business Committee every year; the Government should make time for this debate.
I thank my hon. Friend the Member for Gower for her tremendous tribute to Paul Flynn and all other Members for their tributes. I first met Paul in 1980. He was an inspiration to me then and continued to be throughout my life. We will all miss him, and our condolences go to Sam and all Paul’s family and friends.
My hon. Friend the Member for Gower said she was a proud Welsh MP; I am, too. She also is a fantastic rugby player.
Christina Rees
No, she still is. I am quite a weak squash player. I have played for Wales more than 100 times, but one good tackle would see me off. My hon. Friend highlighted the beauty of Wales. She also said that the Secretary of State for Wales is not standing up for Wales, which has been a theme of contributions from Opposition Members.
The hon. Member for Monmouth (David T. C. Davies) paid a good tribute to Paul Flynn and said that he first met him when he was a sixth-former. That conjures up an image in my mind—was he a prefect?
Christina Rees
The hon. Gentleman said that he challenged Paul Flynn on some questions—no change there then, Top Cat. He listed all the good work that the Welsh Affairs Committee, which he chairs, has done for Wales through its reviews and recommendations. I was briefly on the Committee when I came into the House, and I must say that the hon. Gentleman is an excellent Chair who works cross-party. He does some cross-party training in the gym with me in the mornings, and he is quite ferocious there as well.
My hon. Friend the Member for Ynys Môn has vast experience in this place. He talked about how important energy is to Wales and how it must be accompanied by infrastructure. He mentioned the unfortunate fact that Wylfa Newydd has been pulled on Ynys Môn. Yet again, the UK Government are not standing up for Wales, and they must replace the money that they promised in the north Wales growth bid.
The right hon. Member for Clwyd West (Mr Jones) highlighted the good cross-party work of the all-party parliamentary group on Mersey Dee north Wales, chaired by my hon. Friend the Member for Wrexham (Ian C. Lucas). In the right hon. Gentleman’s opinion, the key to the future is digital infrastructure and 5G.
My hon. Friend the Member for Ogmore (Chris Elmore) highlighted that Wales is en route for a grand slam, and I agree with him. The boys played really well last Saturday, and long may that continue. He mentioned that Only Boys Aloud, who are wonderful singers, have been here today. He paid tribute to Steffan Lewis, who sadly lost his life recently. I did not know Steffan, but I understand from all the tributes to him that he was an exceptional young man. My hon. Friend also paid tribute to Carwyn Jones, who has stepped down as leader of Welsh Labour after nine years, leaving a strong legacy. Mark Drakeford has our support in his role as First Minister. Finally, my hon. Friend highlighted the fact that Transport for Wales has put so much investment into rail infrastructure in Wales, but the Department for Transport has not. I agree.
I never thought I would hear myself say this, but I agree with many of the things said by the right hon. Member for Preseli Pembrokeshire (Stephen Crabb). He highlighted the fact that we are a nation of sport and the power of sport to unite and inspire people. He listed Welsh sporting heroes, but he did not mention Tesni Evans, who is the greatest squash player that we have produced. She retained her Welsh and British titles this year and won a bronze medal at the Commonwealth games in 2018. She is one for the future. I must agree, however, that if the boundary review goes through, we will lose the Welsh voice in this Chamber, and I sincerely hope that that does not happen.
The hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) spoke about justice and the prison and probation services, especially for women. My hon. Friend the Member for Swansea East (Carolyn Harris), the deputy leader of Welsh Labour, is a great campaigner, and she listed the achievements of her campaigns. We really value all that she does for Wales. My hon. Friend the Member for Cardiff North (Anna McMorrin) said that she was a proud devolutionist, as I think we in the Opposition are.
I am running out of time, so I will bring my remarks to a close. My hon. Friend the Member for Aberavon (Stephen Kinnock), whose seat is adjacent to my seat of Neath, is a champion for the steelworkers, as is my hon. Friend the Member for Blaenau Gwent (Nick Smith), in regard to pensions and how they have been ripped off. My right hon. Friend the Member for Delyn (David Hanson) speaks so clearly all the time, and I really value his advice to me personally. I must end by saying that Gareth Edwards, who was mentioned, comes from Gwaun-Cae-Gurwen in the Neath constituency.
Oral Answers to Questions
Christina Rees Excerpts(5 years, 9 months ago)
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Alun Cairns
I am grateful to the hon. Lady for her question, but I would politely point out to her that Wales voted to leave the European Union in even stronger numbers than the rest of the UK. We have an obligation to act on the instruction that comes from that referendum, but in doing so we will continue to work closely with the Welsh Government to ensure and secure a smooth and orderly exit.
Christina Rees (Neath) (Lab/Co-op)
I first met Paul Flynn in 1980. He was absolutely inspirational to me then and he continued to be a source of inspiration throughout the many years I had the privilege to know him.
Will the Secretary of State guarantee that the Welsh Government will be fully represented in any negotiations with the EU that impact on devolved competence and policy?
Alun Cairns
The UK Government have been open and transparent in their dealings with the Welsh Government on representation and engagement. In fact, the Welsh Government sit on the EU Exit and Trade (Preparedness) Sub-Committee, which shows and demonstrates our positive engagement. I am only disappointed that the same privilege and opportunity has not been extended to the UK Government to sit on the Welsh Government’s similar committee.
Christina Rees
I thank the Secretary of State for his answer, but does he understand that if the UK Government negotiate free trade agreements, for example with the USA, which force hormone-injected beef and chlorinated chicken on the people of Wales without the legislative consent of the elected Welsh Government, that will trigger a major constitutional crisis? Is he prepared to risk that?
Alun Cairns
First, I do not accept the basis of the question, but the hon. Lady raises an important point. We will, of course, continue our warm, constructive and positive engagement with all the devolved Administrations. Our work with the Welsh Government on leaving the European Union has proved fruitful so far. We have laid 120 statutory instruments on behalf of the Welsh Government and at their request. In terms of future trade agreements, we will continue to work with them constructively in the interests of the whole of the UK. Clearly, my interests and their interests will be to defend the Welsh interest. I plan to continue to work with them on that positive basis.
Oral Answers to Questions
Christina Rees Excerpts(5 years, 10 months ago)
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Alun Cairns
The hon. Gentleman will know that there are many predictions in economic forecasts, but they are forecasts rather than fact. He will have predicted a recession after the 2010 general election—he may well have even predicted a double or treble-dip recession—but I hope that he will recognise the fantastic employment data that was published yesterday showing record numbers of people in work in Wales. The inactivity rates in Wales are at staggeringly positive numbers, matching the rest of the UK for the first time since records began.
Christina Rees (Neath) (Lab/Co-op)
I echo the words of the Secretary of State with regard to Steffan Lewis and Emiliano Sala.
The Secretary of State voted for the Prime Minister’s disastrously flawed withdrawal agreement—he was one of the few, not the many. Will he explain why the Government pretend that nothing has changed, despite their suffering the biggest defeat in parliamentary history?
Alun Cairns
It is no secret that the House did not support the deal that was presented to it last week, but we are committed to working with colleagues across our own Benches, and across the House, to come forward with a proposal that can gather the support of the House of Commons and, obviously, to negotiate with the European Union in order to get a deal. I am sure that the hon. Lady would much prefer to see a deal and I challenge her to say whether she was comfortable being in the same Lobby as some colleagues, from all parts of the House, who would like to see no deal.
Christina Rees
I think that that was a Cairnsbotic answer.
Yesterday, the First Minister of Wales, Mark Drakeford, cleared Government business in the Welsh Assembly so that he and his Cabinet Ministers could make urgent statements on how a no-deal outcome would be so disastrous for the people of Wales. Will the Secretary of State tell us if he will be voting for amendments put forward in this House to avoid a no-deal outcome, or will he, like his Prime Minister, put party before country?
Alun Cairns
I can advise the House that the UK Government have laid 75 statutory instruments at the Assembly’s request. We have had countless meetings of the Joint Ministerial Committee and the Prime Minister has agreed to invite the First Minister to the European Union Exit and Trade (Preparedness) Sub-Committee. I hope that that demonstrates the joint work that is taking place. The hon. Lady talks about putting party interests first. I cannot understand why the First Minister of Wales is happy to meet the Prime Minister—they will be meeting later today—but the Leader of the Opposition refuses to meet her to discuss the prospect of a deal, yet seems always happy to meet the IRA.
Welsh Affairs
Christina Rees Excerpts(6 years, 9 months ago)
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Alun Cairns
The hon. Lady raises an important point. As we talk about the 24 areas, we will of course want to apply the Sewel convention. That is the basis on which devolution has worked since the change to the UK constitution back in 1999. We will always want to get there by agreement, but that is the basis on which the Sewel convention works. Whatever legislation there is in the 24 areas of law that we want to use to protect the UK market, we will always seek agreement with the devolved Administrations under that convention. That demonstrates the level of co-operation between the UK Government and the devolved Administrations, and I have already mentioned my positive relationship with the Welsh Government.
Christina Rees (Neath) (Lab/Co-op)
The Secretary of State says that this is a temporary measure. Why is he altering the Government of Wales Act 2006, because that surely makes it permanent?
Alun Cairns
I am not quite sure which specific element the hon. Lady is referring to, but I will happily meet her to discuss the details. We are having an ongoing positive discussion with the Welsh Government, as well as with the Scottish Government, and we are keen to get to a position where we will gain a legislative consent motion.
Christina Rees
I am talking about the UK Government’s amendment to clause 11, which specifically says that there will be an obligation on UK Ministers to consult Welsh Government Ministers, not to seek their consent.
Alun Cairns
Clearly, we will consult, but we will also use and honour the Sewel convention, which is the basis on which legislation has been developed and drafted ever since 1999—with the agreement of the devolved Administration.
Christina Rees (Neath) (Lab/Co-op)
The Opposition echo the Secretary of State’s comments about the sad passing of Lord Crickhowell and Lord Richard.
The St David’s day debate is now a firm fixture in the parliamentary calendar, as it provides a great opportunity to discuss the issues, challenges and priorities that matter to Wales. Even though this year we are debating these issues a little later than usual because snow stopped play on 1 March, today it will take more than the beast from the east to put us off our stride.
There is so much to celebrate about our great nation, but there are also many challenges and uncertainty against the backdrop of Brexit and the negative effects of austerity on so many Welsh communities and families. The challenging times make it more important than ever to have a strong shadow Wales team here in Westminster, working with Carwyn Jones and the Welsh Labour Government in Cardiff Bay. It remains a huge privilege to serve as shadow Secretary of State for Wales, supported by the tremendous team of my hon. Friends the Members for Vale of Clwyd (Chris Ruane) and for Gower (Tonia Antoniazzi). We are all kept in line by my hon. Friend the Member for Newport East (Jessica Morden).
Serious matters confront us, and the people of Wales are watching. The people of Wales heard loud and clear the Government’s commitment to modernise and electrify the railways in our country. That included the main line between Cardiff and Swansea as well as the north Wales main line. The people of Wales will hold the Government to account for their failure to deliver.
The Opposition will continue to make the case to give the go-ahead to the Swansea bay tidal lagoon. That vital investment in Wales’s infrastructure would represent a step change in technology, provide hundreds of jobs and help equip Wales for 21st-century energy generation, as well as sending a strong signal of confidence throughout the Welsh economy. It is long past the time for the UK Government to work with the Welsh Government and match the latter’s commitment to that indispensable project.
The UK Government must recognise the folly of continuing to frustrate efforts to launch a major new domestic market for Welsh steel at a time when Donald Trump is slapping tariffs on exports. The pathfinder tidal lagoon requires around 100,000 tonnes of steel, much of which can be sourced in Wales with a clear commitment from the investors and businesses involved to buy Welsh.
The UK Tory Government continue blindly with their austerity agenda, while families and entire communities struggle to make ends meet. The Chancellor’s spring statement signalled simply more of the same. The Government’s failed prescription of austerity will deliver nothing except even slower economic growth, wage stagnation and even longer queues at food banks the length and breadth of Wales. It will deliver only further pressure on the NHS and social care, on our schools, our police services and right across the public sector. Those of us who believe in decent public services will continue to fight for the investment that they desperately need to serve us all.
Wales needs investment, as the whole UK needs investment, and the people of Wales will judge this Government harshly if they continue to fail to deliver it. As the date for Brexit looms ever closer, it becomes ever more urgent to take the necessary measures to protect Welsh industry and Welsh business. There is still no clarity for Welsh businesses on customs arrangements and no clear steer for Wales’s key exporters in the agriculture, aerospace and automotive sectors that rely so heavily on friction-free trade with our EU partners.
Wales’s close and indispensable economic ties to Ireland must be maintained. How will the UK Government deliver that? Thousands of jobs in Wales depend on clarity and on sensible agreements being reached. The clock is ticking. If the UK Government fail to deliver stability for Welsh industry post Brexit, the consequences could be nothing short of calamitous.
Chris Elmore
On stability in industry, the Secretary of State talked a lot about export and import within the UK market and with the EU. A concern is Ford in Bridgend, which neighbours my constituency, where a lot of the workforce live. Does my hon. Friend agree that, if we do not get stability post Brexit and are not inside a customs union at the very least, there would be a real risk of Ford pulling out of Bridgend, with the loss of thousands of jobs in the tributary system?
Christina Rees
I totally agree. As a former councillor on Bridgend County Borough Council, I have close ties with the factory and I fully understand my hon. Friend’s point.
Ports make a huge contribution to the Welsh economy, supporting around 11,000 jobs and providing an economic hub and trade gateway with Europe and the rest of the world. Indeed, 80% of goods carried in Irish-registered HGVs between the Republic of Ireland and Europe pass through Welsh ports. In 2016, 524,000 lorries passed through major Welsh ports to and from the Irish Republic. Ireland holds a key position in Welsh inward investment, with more than 50 Irish-owned companies in Wales employing 2,500 people.
Opposition Members will continue to speak up for Wales and for Welsh families, communities and businesses. We will continue to stand up for the devolution settlement itself. Twice the Welsh public have gone to the polls in referendums to shape their devolved Government, and they have set down the parameters on how the Government in Wales relate to the Government of the whole UK. It is not for any UK Government unilaterally to rewrite the rules of devolution—to attempt to power-grab and centralise functions set out in law and agreed through the ballot box—using Brexit as a cover for those actions. Opposition Members will stand up for Wales and for devolution.
The Welsh Labour Government have made it clear that they will not recommend that legislative consent is given to the UK Government’s proposals while they impose unacceptable constraints on current devolved powers, which remain unworkable in practice.
The Welsh Labour Government also made it clear that, in the event of the UK Government failing to bring forward satisfactory amendments, they will introduce their own legislation to provide legal continuity in Wales for EU-derived legislation relating to devolved competences.
Susan Elan Jones
I agree wholeheartedly with my hon. Friend, but does she think that it is time we got it into the heads of some Government Members that Wales did not vote just once for devolution, but for full law-making powers in a second referendum? The Government are totally disrespecting democracy in Wales.
Christina Rees
My hon. Friend makes a powerful point, with which I agree. Sometimes, I think the Government just do not get it.
David T. C. Davies
I am grateful. Let me agree with the point that the hon. Member for Clwyd South (Susan Elan Jones) made and emphasise the importance of politicians of all parties respecting the results of referendums.
Christina Rees
And we do, and I will see the hon. Gentleman in the gym in the morning.
The law derived from the full Welsh Government Bill was introduced in the Welsh Assembly on 7 March 2018, but the Welsh Government are clear this is not their preferred option. What the Bill categorically does not do is to block or frustrate Brexit. The Welsh Labour Government respect and accept the outcome of the EU referendum. However, the vote to leave the EU was not a vote to reverse devolution. The current devolution settlement in Wales has been backed by two referendums, in 1997 and in 2011. Brexit is not an excuse to ignore those votes.
I repeat that serious matters confront us. I doubt there has been a St David’s day since the second world war when there was so much at stake for Wales. The future of whole sectors of industry, as well as the ability of families simply to get by, hangs in the balance. The people of Wales have a right to see a UK Government acting in their best interests: protecting their jobs and investing in the public services they rely on and the infrastructure we desperately need to secure Wales’s future.
Wayne David
Does my hon. Friend agree that one of the most unfair things we regularly see in our surgeries is the manifestation of the assessment system for benefits, particularly with regard to employment and support allowance and personal independence payments? That is greatly unfair and is entirely due to what the Government are doing here in London.
Christina Rees
I totally agree. My surgery is full of people who are desperately trying to make ends meet and who have been subject to the terrible PIP measures.
Liz Saville Roberts
If the hon. Lady and her party have the best interests of Wales at heart, surely they should get behind calls for permanent membership of the customs union and the single market, because that is where the economic interests of Wales lie.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Will the hon. Lady give way on that point, because this is a very interesting debate?
Jonathan Edwards
The hon. Lady is being very kind. As I understand it, the Labour party’s policy is that it supports being in a customs union, not the customs union. She will know that as a member of the customs union we benefit from trade deals with over 60 countries across the world, accounting for £150 billion-worth of trade at UK level—there are no figures for Wales, of course. If we are in a customs union, we will lose those trade deals. Surely, it would be far better for the Welsh economy if we stayed in the customs union, rather than trying to create some kind of a customs union, which is more or less a trumped up trade deal?
Christina Rees
Technically, when we leave, we leave the customs union, so we advocate a customs union and a very close relationship to the single market.
Christina Rees
No, it’s not.
There are, at present, no signs that the Tory Government understand this agenda, let alone how to respond to it. As I have said, serious matters confront us and the clock is ticking.
Several hon. Members rose—
Autumn Budget as it Relates to Wales (Morning sitting)
Christina Rees Excerpts(6 years, 10 months ago)
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Christina Rees (Neath) (Lab/Co-op)
As always, it is a pleasure to serve under your chairmanship, Mr Owen, and on behalf of the Labour party I welcome all Members of Parliament for Wales to the first Welsh Welsh Grand Committee. It is great to be here, and it is my first Welsh Grand since being appointed shadow Secretary of State—[Interruption.]
The Chair
Order. I am sorry to disturb the hon. Lady. Members are taking their headphones off but leaving them switched on, and the sound circulates around the room and causes feedback. If Members are not using their headphones, please can they turn them off?
Christina Rees
Thank you, Mr Owen.
It is great to be here. There have only been two Welsh Grand Committees in almost four years since July 2014. If a day is a long time in politics, four years is an age. I will not even try to articulate the changes that we have seen in that time, or say what the world looked like back then, except to say that Boris Johnson was still claiming credit for the London Olympics, David Cameron was still pretending to have a long-term economic plan, a European referendum was Nigel Farage’s dream, and Donald Trump was a rich but harmless reality TV star.
In real terms, we have seen positive changes to Wales’s representation in Westminster—three new Labour MPs are standing up for Wales as a result of the snap general election last year. My hon. Friend the Member for Gower (Tonia Antoniazzi) won back her constituency, overturning the narrowest Tory majority in the UK of 27 votes with a thumping 3,269 majority. My hon. Friend the Member for Cardiff North (Anna McMorrin), my phantasmagorical Parliamentary Private Secretary, won back Cardiff North from the Tories with a majority of 4,174, and my hon. Friend the Member for Vale of Clwyd (Chris Ruane) returned to the green Benches, winning back the seat that he held from 1997 and lost by 237 votes in 2015. We are so pleased that he came back in 2017 with a majority of 2,379, after a two-year sabbatical promoting mindfulness around the world. I am so grateful that Mr Statistics, as he is known, agreed to be my shadow Minister.
Christina Rees
I consider myself chastised, Mr Owen, and I am sorry to have incurred the wrath of the Chair.
Since the last Welsh Grand we have a new Secretary of State for Wales—he is rapidly approaching becoming the longest serving Welsh Secretary over the past eight years. I teased the new Under-Secretary of State for Wales during Welsh questions, so I shall move swiftly on before Mr Owen gives me the evil eye again.
We are here today to discuss the autumn Budget of 22 November and its impact on Wales. A famous Welsh Labour politician once said that politics is the “language of priorities”. That sentiment is never better displayed than in the setting of a Budget. Considering what Wales got out of the autumn Budget, we would be forgiven for thinking that this might be a brief sitting. I want to describe how a transformative Government Budget could be created, in the right hands. A Budget can be progressive and social. It can articulate investment in vital public services, demonstrate support for key industries and ensure that money is spent to benefit the many, not the few.
Nick Thomas-Symonds
Does my hon. Friend share my disappointment about the Tory Government’s lack of investment in communities? I am referring to the closure of local Department for Work and Pensions centres, including the proposed closure of the pension centre in Cwmbran. That is taking jobs out of communities.
Christina Rees
I agree wholeheartedly with my hon. Friend. It is happening not only in his constituency but throughout Wales.
The famous Labour politician I mentioned was of course Nye Bevan, who knew that politics, power and responsibility come down to one thing: priorities. It is in their Budgets that Governments reveal their priorities. The autumn Budget revealed that Wales is not one of the UK Tory Government’s priorities. In the right hands, a Budget for Wales could deliver investment and the greatest good for the greatest number: money for the NHS, local government, education, and skills; investment in projects to tackle youth homelessness and to improve air quality; support for small businesses and business rate relief; funding to promote our language, which is a cornerstone of our culture, and for a growth in the use of Welsh in schools and colleges across the country; and a 21st century schools capital investment programme, investing not only in facilities but in our children’s future. That is a Budget. That is what a Budget can achieve when power is put in the right hands for Wales.
Of course those are not just warm words or hopeful rhetoric. They are the commitments of a Welsh Labour Government budget published less than a fortnight ago—a radical, progressive budget for the many, not the few. However, the Welsh Labour Government are working with one hand tied behind their back. Why? Because the failing Tory UK Government continue to press on with their futile and unnecessary austerity measures, impose cuts on the Welsh Labour Government’s block grant, and let Wales down.
Welsh Labour called on the Chancellor to end austerity and fund the Welsh Labour Government properly, enabling them to invest further in Welsh public services. He failed to do that. We demanded that he provide new funding to lift the public sector pay cap in Wales, which is hitting public sector workers year after year. He failed to do that. The autumn Budget—the Chancellor’s first since the change of pattern—shows once again the contempt and disregard that the UK Tory Government have for Wales. It is a shameful catalogue of missed opportunities, shot through with a callous disregard for the communities and people in Wales most in need of support.
Geraint Davies
Does my hon. Friend accept that, given that Wales is the poorest part of western Europe and we are going to lose convergence funding, it is appalling that the Welsh Government’s block grant should be cut by 5%—£900 million—at a time when we need to invest in education, rail and productivity and lift our opportunities rather than crush them?
Simon Hoare
I thank the hon. Lady for giving way, and her colleagues for keeping the seats they picked up in June warm until we pick them up next time. She has been very good at explaining how her party would spend and spend—one can only assume it would be by taxing and taxing, and borrowing and borrowing. Does she not accept that one of the first duties of the UK Treasury is to try and make sure that we live within our means, balance our books and set the framework for economic growth to deliver the taxes to pay for the services?
Christina Rees
Eight years of cuts and where has it got us? Your policies have driven up the debt. I really do not see where you are coming from.
Chris Bryant
Is not there another point? If the Government keep on trying to run the state on the cheap, they will end up spending more because they have to buy in agency workers in the NHS and schools, and pay consultants to do work that could have been done in-house. It is a complete and utter false economy that they have been running all these years.
Christina Rees
I really cannot add to that—my hon. Friend put it so well and I totally agree. That was my opinion on Budget day. I wonder if I could be persuaded differently by Conservative Members by the end of this Welsh Grand Committee today. The way things are going so far, I do not think I will.
Let me demonstrate the appalling attitude to Wales shown by the UK Tory Government through a budget that embodies this disdain. More than half of the new funding announced for Wales will have to be paid back to the UK Tory Government. Two thirds of the additional capital funding is made up of a form of funding called financial transactions, which must be repaid to the Treasury. There are also restrictions on what it can be spent on. The Welsh budget has experienced year on year cuts as a result of the UK Tory Government’s ongoing ideological programme of austerity. There is an ongoing battle between the social democratic values of the Welsh Labour Government versus the neoliberal ideology of the UK Tory Government.
Even with these small increases in funding, our budget will still be 5% lower in real terms in 2019-20 than it was in 2010-11, which is equivalent to having £900 million less to spend on public services in Wales. If we exclude the financial transactions funding, which we will have to pay back, our budget will be 7% lower, or equivalent to £1.1 billion less by 2019-20.
Wales has been let down elsewhere too. The Welsh Labour Government have repeatedly called on the UK Tory Government to fully fund a pay rise for all public sector workers. The UK Tory budget was a missed opportunity to do just that. The Welsh Labour Government have called on the UK Tory Government to invest in key infrastructure projects in Wales, including the Swansea bay tidal lagoon, which has been mentioned before, and rail, but the Chancellor once again turned his back on Wales. The only feedback we have had on the tidal lagoon is the vague point about value for money that was trundled out again last week and today, despite the UK Tory Government’s independent Hendry review recommending its support as a no-regrets decision. The Secretary of State has told us that Welsh Labour Government and UK Tory Government officials met to discuss the tidal lagoon, but what about the UK Tory Government decision-makers? When are they going to front up and put up? The Secretary of State knows that the Welsh Labour Government have pledged millions to support the Swansea bay tidal lagoon.
The UK Tory Government have cancelled the electrification of the main line from Cardiff to Swansea, as mentioned by my hon. Friend the Member for Caerphilly (Wayne David). None of their explanations for doing so make economic or environmental sense. If the UK Tory Government had kept their promise to electrify the main line from Cardiff to Swansea, we would not have needed bimodal trains, which are heavier because they need to carry both sources of power, making each journey more expensive. The heavier trains increase wear and tear on the track, the buffet car has been taken out to make 130 more seats, and so on.
There has been no devolution of air passenger duty to Wales. Last week at Wales questions, the Secretary of State failed once again to answer a question put by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) about devolving airport taxes. Building on the excellent work of Visit Wales, the Welsh Labour Government would be able to use the control of air passenger duty to support and promote Welsh tourism. Anyone who visits Wales will agree that it is spectacularly beautiful.
If I were being magnanimous––I am a very gentle, understanding person––I could mention something that the Tories did include for Wales in their Budget. They announced that the Severn bridge tolls will be scrapped by the end of next year, following an immediate cut to various charges. What they did not tell us is that the drop in toll prices is merely down to the removal of VAT, because legislation, rather than political priorities, dictates that VAT cannot be charged once the bridges have been brought back into public ownership. Who is to say that the Tories will not break yet another promise and fail to remove the tolls, even though it is difficult to do a U-turn while driving on the Severn bridges?
We urge the UK Tory Government to pause and fix universal credit, which is creating appalling poverty, debt and desperation for families across Wales. They choose not to, instead tinkering around the edges of a broken system. We ask the UK Tory Government once again to join Welsh Labour and support business, infrastructure and innovation, for on each and every one of these, Wales has been let down once again. On the crucial issue of the north Wales growth deal, after sustained pressure from Welsh Labour MPs and the Welsh Labour Government, the Chancellor indicated that discussions would begin to take the project forward. I am pleased to hear that that is going to happen today.
Mr David Jones
I have hesitated to intervene, but the hon. Lady is being less than fair. Was not the pressure on the Chancellor exerted by the all-party parliamentary group on Mersey Dee North Wales, which is chaired by her colleague, the hon. Member for Wrexham (Ian C. Lucas)? That is a cross-party group and it was that group that applied the pressure.
Christina Rees
That group deserves some credit and I fully respect that the group has been moving things forward.
Ben Lake
Rwy’n ofni na wnaf i wneud llawer iawn o ffrindiau gyda’r hyn sydd gennyf i’w ddweud. Mae’r Foneddiges anrhydeddus yn gwneud pwyntiau cywir iawn. Un o’r pethau mae’n cyfleu yw pa mor anwastad yw gwariant Llywodraeth Prydain ar draws Cymru yn ddaearyddol. Mae rhaid, er tegwch, pwyntio at ffigyrau Llywodraeth Cymru yn ddiweddar, sydd yn dangos bod eu cynlluniau nhw ar gyfer gwariant 2017-18 yn cyfrifo at £102 y pen i’r boblogaeth yn y canolbarth a gorllewin Cymru o’i gymharu â £380 y pen i’r rheiny sydd yn byw yn ne-ddwyrain Cymru. Mae yna fai ar y ddwy ochr.
(Translation) I doubt that I will make many friends with what I am saying, but the hon. Lady is making some interesting points. One thing that comes across is how uneven UK Government expenditure is across Wales geographically. In fairness, we must also point to the recent Welsh Government figures, which show that their plans for expenditure in 2017-18 account for £102 per capita of the population in mid and west Wales, compared with £380 for those living in the south-east. There is blame on both sides.
Christina Rees
I am sure the Welsh Government are looking at every area of Wales to increase prosperity, and making every effort to do so.
Susan Elan Jones
I am interested by what the hon. Member for Ceredigion said, but he should remember that, around that time, there was a coalition between Labour and Plaid Cymru. There is much consensual working in the Assembly, which I welcome. He should be careful before firing his darts.
Christina Rees
I totally agree with my hon. Friend and I thank her for speaking in English, which takes me less time to understand. [Interruption.] I am not going to respond to that. I can imagine what it meant, but I am not going to respond.
As with every Tory pledge, the devil will be in the detail, and we await the detail for the north Wales and mid-Wales growth deals.
The UK Tory Government’s claims of an extra £1.2 billion for Wales are pure smoke and mirrors. The truth is that the real uplift to the Welsh budget is significantly smaller. In 2022, after nearly 12 years of UK Tory Government rule, UK GDP is forecast to be £41 billion, or 3%, lower than previously predicted. The Office for Budget Responsibility has downgraded its growth forecast for each of the next five years. That means that Wales will be significantly worse off than previously thought. That will have an impact on tax receipts, which will be £26 billion lower by 2022, there will be higher borrowing, and less funding will be available for public services.
All that is a direct product of the UK Tory Government’s ideological commitment to the failed and damaging policy of austerity. Despite eight years of Tory austerity, continued cuts to the block grant of more than £1 billion in total and the UK Tory Government continually letting Wales down, the Welsh Labour Government continue to do a remarkable job. They have led the way on sprinklers, plastic carrier bag charges, free bus passes and prescriptions, and opt-out organ donation. Our Welsh Labour Government continue to protect and invest in frontline services, and continue to work to protect our communities against the cruellest excesses of UK Tory Government cuts. That work will be much harder following November’s weak and desperate Budget from a UK Tory Government who simply do not care about Wales. At the end of the day, there is a saying in Wales: “Cymru yn arwain, eraill yn dilyn.”
Oral Answers to Questions
Christina Rees Excerpts(7 years ago)
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Christina Rees (Neath) (Lab/Co-op)
Thank you, Mr Speaker; it is great to be back. I have missed you all so much. I thank everyone for their good wishes and support while I was away, and I give massive thanks to my hon. Friend the Member for Newport East (Jessica Morden) for standing in for me at last month’s Question Time.
Does the Secretary of State agree that unless his Government agree a common approach with the devolved nations in advance of phase 2 of the negotiations that is based on proper consideration of the evidence, it is unlikely that the Welsh Government will pass a legislative consent motion ratifying the European Union (Withdrawal) Bill?
Alun Cairns
We are working closely with the Welsh Government, and we have had another productive meeting of the Joint Ministerial Committee at which proposals were made, which will rightly be considered. The First Secretary of State and I met the First Minister just a couple of weeks ago, and that built on an ongoing relationship across Government that involves positive engagement not only with the Welsh Government, but with the businesses, local authority leaders and chief executives, and communities that will benefit from our leaving the European Union.
Christina Rees
I thank the Secretary of State for his response—I think. Does he agree that the UK Government could avoid clashing with the Welsh Government by agreeing to amend the European Union (Withdrawal) Bill on Report, by involving the Welsh Government in drawing up amendments to prevent the power grab, and by agreeing common frameworks, which would stop the Welsh Government putting in place their own legislation, which is worked up, in position and ready to go?
Alun Cairns
As we leave the European Union, we are determined to deliver as much certainty and continuity as we can. The European Union (Withdrawal) Bill focuses on delivering that, and I am sure that that is really what the Welsh Government want. After all, we should be focusing on the outcomes. This is about providing a framework in which businesses and communities can prosper. This is where politics needs to fit business and community need, rather than that of politicians.
Oral Answers to Questions
Christina Rees Excerpts(7 years, 3 months ago)
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Christina Rees (Neath) (Lab/Co-op)
Thank you, Mr Speaker. I love the new haircut and the tie. You look great.
Before the summer recess, the Transport Secretary—the Secretary of State’s Cabinet colleague—sneaked out news that the UK Government would break their promise to electrify the main line from Cardiff to Swansea. People in Wales are now rightly asking whether the Government can even be trusted to deliver electrification as far as Cardiff. Will the Secretary of State promise that that electrification will go ahead and not join the ever-growing list of broken promises the Government have made to the people of Wales?
Alun Cairns
The hon. Lady will be well aware that work is under way on electrification to Cardiff. The bimodal trains will affect service times and when the project is completed it will be of major benefit not only to Cardiff, but to Swansea. The major advantage of the bimodal trains means that we can take the latest rolling stock further in west Wales, whereas the electric-only project would have meant that any benefits stopped in Swansea.
Guto Bebb
The development of energy policy in Wales is about energy security. It is about securing our energy supply for the future, which is why I and my colleague in the Wales Office are always involved with projects such as the new Wylfa power station in Anglesey. We are looking at small modular reactors for parts of Wales, and we are, indeed, still looking at the tidal lagoon in Swansea.
Christina Rees (Neath) (Lab/Co-op)
Wales has a once-in-a-generation opportunity to become the world leader in tidal lagoons. The Swansea Bay tidal lagoon alone will generate 2,000 jobs and contribute £300 million to the Welsh economy during its construction. Welsh Labour MPs, the Welsh Labour Government and many public faces and campaigners have declared that they “Love the Lagoon”, so why are the Government refusing to publish their response to the Hendry review and, in so doing, putting the project at risk?
Guto Bebb
At the risk of repeating myself, I have to say that the hon. Lady highlights the fact that there is support for the concept in Wales—indeed, there is. But she also needs to be honest about the fact that the Labour Government in Wales, Labour MPs from Wales and Labour Assembly Members from Wales have highlighted the danger of high energy prices for the steel industry, for example. We need to make a decision that is right for industry in Wales and for the Swansea Bay tidal lagoon, but we need to do that on a calculated basis, looking at the facts. That is what we will do.