St David’s Day

Lord Hanson of Flint Excerpts

Thursday 28th February 2019 Commons Chamber

[Tonia Antoniazzi]

Marvellous—but I need to make progress.

Many teachers have written to me to bring to my attention the significant cost pressures that Gower schools are facing as a result of unfunded increases in contributions to the teachers’ pension scheme. That is serious and damaging, and I want some answers. From 2019-2020, each school faces the prospect of having to increase its contribution. How can we expect schools to meet additional costs on that scale, over which they have no control? The Welsh Government and Swansea Council have made explicit commitments to ensure that all money that is released by the Treasury will flow directly to schools in Swansea, but what commitment can the UK Government give to cover the pension deficit and ensure that all my pupils in schools in Gower are given their fair share?

[David Hanson (Delyn) (Lab)]

My right hon. Friend the Member for Alyn and Deeside (Mark Tami) and I have written to the Chief Secretary to the Treasury about Flintshire County Council, and she has said, in a letter to me, that responsibility for that is devolved to the Welsh Assembly, but financial responsibility—the financial contribution from the Government—is not. Is that not unfair?

[Tonia Antoniazzi]

It is completely unfair. I really would like to have some answers, because that unknown is causing instability when it comes to planning the future of our children’s education.

I shall end my speech now. I look forward to listening to the debate and responding to it at the end. I wish everyone a happy St David’ Day.

--- Later in debate ---

[David Hanson (Delyn) (Lab)]

I thank my hon. Friend the Member for Gower (Tonia Antoniazzi) for securing this debate. Along with my hon. Friends, I pay tribute to Paul Flynn, my former hon. Friend the Member for Newport West, who would sit on this Back Bench close to us and make contributions every week tackling the Government and promoting Labour values.

I did not know Steffan Lewis personally, but I know that, taken at a young age, his family will be devastated. I also offer my condolences to the team in the Assembly and to Plaid Cymru as a political party.

I want to make just four points in this debate. The first point is about Brexit. Whatever we end up doing on Brexit, the Secretary of State for Wales has an absolute duty to make sure that a no-deal Brexit is ruled out. He will have before him the evidence from Airbus near my constituency, which employs 14,000 workers across the United Kingdom, thousands of them in north Wales. Katherine Bennett and Tom Enders, two senior Airbus officials, have warned about the consequences of no deal. The Secretary of State will know that Tony Walker of Toyota, which employs hundreds of people in north Wales, and in Derbyshire, has said that a no-deal Brexit will cost Toyota £10 million a day. The Secretary of State will know from talking to farmers across Wales that a no-deal Brexit will mean that we cannot take Welsh lamb to the table of Europe while no deal remains on the table in the United Kingdom. He will know that firms such as Vauxhall, and myriad firms in my constituency, small and large, are facing uncertainty because no deal remains on the table. The one thing he can do in responding to this debate is to rule out no deal, whatever we settle on with regard to Brexit.

The second issue I want to focus on is getting some assurances from the Secretary of State about the north Wales growth deal. My hon. Friend the Member for Ynys Môn (Albert Owen) set out very clearly what is required. We have a potential growth deal of £335 million. We have had an announcement from the Government of about £240 million, with match funding from the Welsh Government and from local sources and the private sector. We need to ensure that the Government consider what they promised they would do in Budgets four and five years ago and deliver on the north Wales growth deal. As the right hon. Member for Clwyd West (Mr Jones) said, this is a great opportunity for investment to modernise the infrastructure of north-east Wales and north Wales as a whole, and the Government should take it.

My third point relates to council tax. My local authority has made it very clear that the difficulties it faces with teachers’ pensions, in particular, are putting it under tremendous strain. That is why this year we have had a council tax increase that is well above average. I know the pressures that my local colleagues are facing. The Secretary of State has devolved teachers’ pensions to the National Assembly for Wales and to the Welsh Government, but no money has gone with that. He needs to explain to this House today the financial settlement in relation to that, and to make sure that it is secured, not just for the past year but in future years.

My final point—my hon. Friend the Member for Cardiff North (Anna McMorrin) touched on it—is about scrutiny of the Welsh Office and scrutiny of the Conservative Government’s performance in Wales. There is now even more limited opportunity for that than there was previously. Let me take, for example, the Welsh Grand Committee. When we had a Labour Government from 1997 to 2010, the Welsh Grand Committee met 39 times to debate Welsh matters. In the nine years of this Conservative Government, it has met nine times. Six of those occasions were in the first two years of the Conservative coalition, from 2010 to 2012. There have been only three in the past three years, and there were a whole three years when the Welsh Grand Committee never met at all. The Welsh Grand Committee gives us an important opportunity to raise issues such as these. Does the Secretary of State wish to continue with it, and, if so, when will it meet in future?

It is about time that we reviewed the issue of cross-party discussions on English votes for English laws. In the Brexit debates, when I have had to discuss issues in my constituency relating to teachers, health workers and people working in businesses in England, I cannot vote on those issues for my constituents on the border who are impacted by them. That is not sustainable for the future. As my hon. Friend the Member for Cardiff North also mentioned, a 30-minute—

[Mr David Jones]

The right hon. Gentleman makes an important point about cross-border issues where Welsh MPs may wish to have input into matters that are discussed here, but does not this cut both ways? For example, as he will know, my right hon. Friend the Member for Forest of Dean (Mr Harper) has frequently raised issues relating to hospitals in south Wales. Do we not need a new settlement to accommodate these things?

[David Hanson]

I would be very happy to discuss those issues with the right hon. Gentleman when there is more time. I simply say that my constituents are served more poorly by the fact that I can no longer vote in this House on some of the issues that affect them.

With unemployment rising in my constituency by 30% in the past two years, the need for a growth deal is clearly there. If we have a no-deal Brexit, that unemployment figure will be worse. I hope that the Secretary of State can answer these points today.

Welsh Affairs

Lord Hanson of Flint Excerpts

Monday 19th March 2018 Commons Chamber

[David Hanson (Delyn) (Lab)]

Indeed, 1 March would have been a very special day for the debate. Would it not also have been a special day to announce the finalised growth deal for north Wales, given that one was announced for other parts of Wales on that day, and given that there has been a tremendous amount of work on it? We have now had the spring statement. Will the Secretary of State give some indication of when he will announce the funding and outcomes for the growth deal in north Wales?

[Alun Cairns]

I am encouraged by the sense of urgency from the right hon. Gentleman, and from other Members from north Wales. He will well know, however, that this is a matter for local partners, because we can respond as quickly as possible as they develop and bring forward their initiatives and ideas. We are making very good progress. My hon. Friend the Under-Secretary was in north Wales last week, working with local partners—local authorities and businesses—to progress the case as quickly as possible.

[David Hanson]

I am grateful to the Secretary of State for giving way again. He will know how important the deal is. It is certainly locally driven, but the framework for it is the spending limits set by the UK Government and the Treasury and the indications that he gives. If he gave an indication via the Treasury of what the spending limit was, the deal could be signed very quickly.

[Alun Cairns]

The right hon. Gentleman tempts me, but he knows that that is not the way it works. We assess and break down the merits of each individual part of it. We then break down which areas are devolved and which are reserved, and we come up with a package that is jointly supported by the Welsh Government, the UK Government and partners in the community, including those in the private sector and local authorities. I am as anxious as he is to see the deal progress as quickly as possible, on the basis of the success we are seeing elsewhere.

--- Later in debate ---

[Mr Jones]

Like most city deals and growth deals, this is a question of partnership working. Nevertheless, we are seeing investment in Swansea and in Cardiff, so I felt it was slightly churlish of the hon. Member for Neath to complain.

I shall concentrate on north Wales, as that is the part of Wales of most interest to my constituents. North Wales is an important part of what is, in reality, a cross-border north-west England and north Wales regional economy. I think that hon. Members on both sides of the House realise that and, as a consequence, we have seen the formation of the all-party group on Mersey Dee North Wales, which is very ably chaired by the hon. Member for Wrexham (Ian C. Lucas). In no small part due to the work of the all-party group, policies have developed that I believe will be of immense benefit to not only north Wales itself, but the north-west of England.

I sometimes think that hon. Members from other parts of Wales may not fully realise the extent to which the economies of north Wales and the north-west of England are closely integrated. We have major employers on both sides of the border. We have heard already about Airbus, JCB and Toyota on the Welsh side, but there are also major employers on the other side of the border, including Vauxhall. Every day people from both sides of the border commute across it to their places of work. A great deal more could be achieved if we sought to achieve a synergy between north-west England and north Wales. I think that, perhaps a little belatedly, the Welsh Government are starting to recognise that, too. Recently I paid a visit to Cardiff with the Public Administration and Constitutional Affairs Committee. We took evidence from the First Minister, Carwyn Jones. Hearteningly, he recognised that there could be a role for further devolved institutions in north Wales, which could work with institutions on the English side of the border to further the economies of both regions.

[David Hanson]

I agree fully with what the right hon. Gentleman says, but I wonder how he squares that with the fact that I, as a north Wales Member of Parliament, cannot vote on matters that affect England, such as business support, health and education, which my constituents use.

[Mr Jones]

The right hon. Gentleman has raised this question on numerous occasions, but sadly that is one of the paradoxes of devolution.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Wednesday 13th December 2017 Commons Chamber

[Guto Bebb]

The hon. Gentleman is the chair of the all-party group and I would be delighted to meet it. I am well aware of the work it has done. This is a deal for north Wales, which means we will have to work with all stakeholders and all partners, including the hon. Gentleman.

[David Hanson (Delyn) (Lab)]

Unemployment has risen by 10% in my constituency, showing the need for this growth deal as a matter of urgency. Will the Minister focus particularly on cross-border issues to improve transport links to north Wales?

[Guto Bebb]

I thank the right hon. Gentleman for his question, and I am aware of his support for this growth deal. It is fair to say, however, that the unemployment situation in Wales has dramatically improved since 2010, with 54,000 more jobs in Wales and unemployment falling in most constituencies in Wales. My constituency has the lowest unemployment it has recorded for a long time. But I assure him that if a cross-border deal will help his constituency, we will help to deliver it.

Rural Economy of Wales

Lord Hanson of Flint Excerpts

Tuesday 28th November 2017 Westminster Hall

[Ben Lake (Ceredigion) (PC)]

I beg to move,

That this House has considered the future of the rural economy in Wales.

It is a pleasure to serve under your chairmanship, Mr Hollobone. I am grateful for the opportunity to have a debate on a topic that is of great importance to the people of Ceredigion, whom I serve, and a subject that is close to my heart.

An economic strategy that facilitates growth in rural and urban Wales and forges stronger links between them is sorely needed if we are to avoid building a geographically unbalanced Welsh economy. I hope that we can debate the ways in which the current approach fails rural Wales and how those failings can be addressed. The rural economy is resilient and there is potential for greater development that should not be left unrealised. At the very least, I hope to persuade hon. Members that securing a prosperous future for the Welsh rural economy is not a cause that should be championed only by those fortunate enough to represent rural constituencies; it should be a priority for us all. As such, it is good to see right hon. and hon. Members from urban as well as rural constituencies here, and I look forward to their contributions.

The development of the rural economy should form a key part of an economic strategy for Wales if we are to avoid a national economy unhelpfully concentrated in a few areas or in one corner of the country. We need look no further than the UK economy to understand the consequences of an unbalanced approach to economic development. Page 218 of the “Industrial Strategy” White Paper illustrates all too clearly how focusing attention and investment on urban centres has meant that the productivity of rural areas is consistently below the UK average, in stark and rather depressing contrast to that of larger towns and cities. I am sure that we will hear a great deal in this debate about the supposed successes of the UK’s current economic approach, but who benefits from the status quo? If that approach gives rise to such grotesque regional inequality, can it truly be considered a success? It is not over-ambitious, let alone idealistic, to believe that the prospects for individuals living in the countryside should be just as promising as those for individuals living in cities.

Although I am not surprised, I am concerned that the development of the rural economy is not high on the UK Chancellor’s list of priorities. Last week’s Budget offered no sign of imminent change in the UK’s approach to rural development, and even less promise for the rural economy in Wales. Indeed, one is left to infer from the few policies on offer that the Government’s intentions for the rural economy, at least in England, amount to little more than improving existing connections between the countryside and the cities to ensure that the prosperity of the economic engines and powerhouses trickles to the rural periphery that little bit faster. Yet again, I fear we have a Budget that serves the south-east of England rather well, at the expense of the rest of the UK.

Buried deep in the Budget, however, there was a cautious and no doubt carefully worded announcement about a growth deal for mid-Wales. It does not overwhelm me with confidence, nor am I over-enamoured of the thought of delineating new economic areas without considering whether there are sufficient cultural, economic and social links to justify those new lines on the map. Nevertheless, I appreciate that the growth deal for mid-Wales—or perhaps the Welsh midlands—could be a real opportunity to deliver for some of those rural communities that have suffered chronic under-investment and neglect by successive Governments. It is also a chance to diversify the base of the rural economy to ensure that, just like the economic success stories of the cities, the economy of rural Wales is rooted in a rich mixture of sectors and industries.

Agriculture, the food and drink industry and tourism are at the heart of the present rural economy, as I am sure other right hon. and hon. Members will explain in more detail. A growth deal for rural Wales would need to safeguard those foundations, but it could also enable us to build a more mixed economy on them, and in so doing secure a more prosperous future for rural areas. It is therefore important to stress that if a growth deal is produced for mid Wales, it cannot mindlessly replicate the model used for city deals. The Government must do more than merely pay lip-service to the idea; they should work with the Welsh Government to engage with stakeholders and forge a bespoke package that focuses on addressing the unique challenges and opportunities facing the rural economy.

One fundamental problem that could be addressed by a worthwhile growth deal is the poor connectivity in many rural areas of Wales. Broadband, or rather the lack of it, is by far the most prevalent issue raised by my constituents in Ceredigion, which is among the 10 worst constituencies for broadband speeds—an affliction that also plagues the Minister’s constituency. Wales has the perceived benefit of being able to receive investment from the Welsh Government and the UK Government, but thus far both have failed to outline how broadband will be delivered to some of the most rural parts of the country.

Recently, the UK Government invested significant sums to improve broadband infrastructure in three of the four UK nations, but unfortunately not Wales. They managed to find £20 million extra for ultrafast broadband in Northern Ireland. For the time being, I am confident that residents in Ceredigion would happily settle for superfast broadband. The UK Government also managed to find £10 million for full-fibre broadband in six trial areas across England and Scotland, but what about rural Wales?

According to Ministers, the decision on where to invest that money was based on how likely they believed the investment was to stimulate economic growth. Rural Wales should not be written off as an area that has no potential, that would not be successful even if it had effective digital infrastructure, or that is simply not worth it. Why should shared office spaces and other opportunities afforded to start-ups and small businesses be poorer in rural areas? Why should essential utilities such as adequate broadband and mobile infrastructure be dismissed as luxuries for those who live in the countryside? If we are to make Ceredigion and other rural areas of Wales more practical places for businesses to locate and expand, and if we are to ensure that communities can fully benefit from the opportunities afforded by better digital connectivity, investing in broadband and mobile infrastructure is crucial.

Why stop there? A potential growth deal for the Welsh midlands—sorry, for mid-Wales—could also include an ambitious package of investment in transport infrastructure. Reopening the railway line between Aberystwyth and Carmarthen would help to reconnect north and south Wales. Installing a network of electric vehicle charging points would allow rural Wales to make the most of advances in electric cars. As well as improving connectivity, such investment by the UK and Welsh Governments would send a clear signal to budding entrepreneurs and start-ups that the countryside is open for business. It would be a strong statement of intent and confidence.

I am not alone in thinking that rural Wales is worth such an investment. Ceredigion has almost 9,000 microbusinesses, which account for up to 94% of all businesses in the constituency. They sustain the local economy and make up our communities, yet they are penalised by poor all-round connectivity. Improving that connectivity is key to supporting and sustaining those entrepreneurial, innovative and hugely important businesses while opening the door to new enterprises.

I am conscious that other hon. Members wish to speak, but it would be remiss of me not to speak briefly about the need to secure the current foundations of the rural economy, or about how a potential growth deal could help to steady nerves in what is proving to be a most uncertain time. Food and drink manufacturing contributes £1.5 billion to the Welsh economy, supports more than 22,000 jobs and generates more than £330 million in exports. It sits at the heart of the food and drink supply chain that generates a total of £4.5 billion for the economy and supports more than 240,000 jobs across Wales. Agriculture in Ceredigion directly employs more than 6,000 people. Some £40.8 million is spent on goods and services purchased by farmers, which in turn sustains additional spending of £96.9 million.

Although they are seldom associated with the rural economy, the teaching and research conducted in our universities also make a vital contribution: on Ceredigion’s economy alone, they have an annual economic impact worth approximately £250 million. The uncertainty surrounding Brexit is throwing our higher education sector into uncertainty. Clarifying future funding and visa arrangements would go a long way towards addressing that.

[David Hanson (Delyn) (Lab)]

The hon. Gentleman will know that sheep and beef farming are critical parts of the economy, not just in his constituency but in north Wales. Does he agree that the Minister should give an assurance that those products will eventually be tariff-free post-Brexit? If they are not, we will face potential loss of business and therefore loss of income to the rural economy.

[Ben Lake]

I agree that an assurance that beef and lamb exports will not be subject to tariffs or non-tariff barriers post-Brexit would go a long way towards securing the future of agricultural industry and would settle a lot of nerves across the country.

It is imperative that any growth deal for mid-Wales takes account of the significant burden that leaving the EU places on such sectors. The UK Government’s steadfast pursuit of severing all ties with the single market risks undermining the rural economy. We should strive to build a more mixed rural economy, but we must also secure its foundations. I was therefore glad to learn that my Plaid Cymru colleagues in the Welsh Assembly have helped to safeguard the future of Welsh agriculture by securing £6 million of funding for a grant scheme to help young entrants to establish themselves in agriculture. With Brexit negotiations stumbling at every possible hurdle, such funding cannot come quickly enough. The right hon. Member for Delyn (David Hanson) alludes to the effect of Brexit on tariffs; it looks increasingly likely that any meaningful beneficial relationship with the single market and customs union will be abandoned.

I am deeply concerned that Welsh agriculture will be sacrificed in EU negotiations. We will have to compete with markets with far lower food hygiene and animal welfare standards, while losing unrestricted access to our main export market. Welsh farmers will be hardest hit by the double whammy of cheap imports and new regulatory barriers. A staggering 90% of Welsh food and drink produce, produced mainly in rural areas such as mine, is exported easily, directly and freely to the European Union. Do the Government expect farmers simply to replace 90% of their customers overnight? We desperately need certainty and clarity.

The damaging impact of Brexit uncertainty on the whole rural economy should not be underestimated. The National Farmers Union’s farm confidence survey in April showed that 20% of farmers are likely to reduce investment as a result. Without clarity on trading relationships or the support payments that make up to 80% of farm incomes in Wales, it is hardly surprising that many are postponing further investment in their businesses. That should alarm us all, because for every £1 invested in the farming industry, more than £7.40 is put back into the local economy. Our communities simply cannot afford to lose such investment. Without it, the future of the rural economy looks very bleak indeed.

Tourism is a £2.8 billion Welsh industry that employs 4,000 people in Ceredigion and contributes £70 million to gross value added. It often goes hand in hand with agriculture and is an important contributor to the rural economy. Plaid Cymru has proposed a 15% reduction in VAT for the tourism and hospitality sector, which would generate an estimated 5,500 additional jobs and an economic boost of £166 million. Our proposal is not innovative or pioneering thinking, but simply common sense. It would stimulate investment, create jobs, increase consumer spending and help to ensure that Wales’s visitor economy continues to thrive. Even the UK Government think it is a good idea: the Chancellor announced a review of tourism VAT in his Budget, although of course it applied only to Northern Ireland. If it is good enough for Northern Ireland, why is it not good enough for us? Could it not be included as part of a growth deal package for the Welsh midlands—sorry, mid-Wales? At the very least, it should offer resources to support organisations such as Mynyddoedd Cambria that work to forge closer links between the old market towns of the Elenydd—the Cambrian mountains—and ensure that coastal and inland areas benefit from tourism.

It is deeply frustrating that the potential of the Welsh rural economy was not adequately pursued in last week’s Budget, but a growth deal could be the first step towards correcting that mistake. Offering the support and investment required to sustain today’s rural economy will be crucial, but just as important is the opportunity to change how the rural economy is understood, recast how rural development is pursued, and rejuvenate our aspirations for such development. Such new thinking is already being explored by colleagues of mine, including a former Member of this House. The economic region of Arfor aims to develop west Wales into a more cohesive and connected entity. There is no reason why a growth deal for the Welsh midlands—or mid-Wales—could not support and work in conjunction with such an economic area.

I have already mentioned the importance of the agriculture, food and tourism sectors to today’s rural economy. Let us make the most of the opportunity presented by the growth deal to redefine the rural economy of tomorrow. If done properly, such a deal could begin to address the issues plaguing today’s industries and could implement the conditions necessary to facilitate a more versatile future for the rural economy. It could concentrate on improving connectivity and offering greater support to higher education institutions so that they can build on their expertise and cement themselves as centres for the technologies of the future.

After all, why should rural Wales not be at the forefront of biotechnology and research? It could be the centre of cutting-edge knowledge, tackling global issues such as food security. Aberystwyth University’s institute of biological, environmental and rural sciences is already an internationally renowned research and teaching centre for biotechnology and environment studies. It is leading the work to address some of the most pressing issues facing the agricultural sector, and it has already received support from the Biotechnology and Biological Sciences Research Council for its Aberystwyth innovation and enterprise campus. Just imagine the potential benefits of further investment in our other universities in rural Wales! Such investment could serve as the foundation of a bigger Welsh biotechnology industry, shaping the future of food and farming for generations and increasing the breadth of highly skilled and highly paid careers available in rural Wales. That is just one example that is open to the rural economy if we wish to explore it.

I am in no doubt that the Welsh and UK Governments desperately need to reconsider their approach to economic development and to refocus attention on the rural economy, to ensure that it forms an integral part of any economic strategy for Wales and that it is more than a simple afterthought, an also-ran, a non-essential addition to the real work of developing our cities and urban areas.

People should have a realistic hope of being able to pursue a career, and of being able to afford to settle down and lead a prosperous life in any part of Wales. I hope the Minister accepts the points I have raised in the spirit in which they are offered. The possibilities for a mixed and advanced rural economy in Wales are endless, provided that the potential is unlocked with the right investment and the right growth deal for the Welsh midlands—or mid-Wales.

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

Tapadh leibh, a Cathraiche. It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Ceredigion (Ben Lake) on securing this timely debate. He is a passionate campaigner and champion for the people of Wales in this House. In the less than half a year that he has been here, he has done an enormous amount to hold both of Wales’s Governments to account, and I have no doubt he will continue to do so in the coming months and years.

The focus on the future of our rural economy is timely, because we stand at a fork in the road, given our Brexit negotiations. The decision of the United Kingdom to leave the European Union, which was rejected in all 32 of Scotland’s local authorities, will have potentially catastrophic consequences for rural communities across these islands—not least in Wales, which has benefited enormously from EU funding. Indeed, in some cases, it is the only money that has come into Wales in recent years. The current negotiating position taken by Her Majesty’s Government is deeply flawed, isolationist and wrong-headed. I will outline one or two areas in which I feel a change in tone and position could help soften the forthcoming Brexit blow to our economy. I will also outline a couple of ideas from a domestic policy perspective that would deal with some of the challenges facing our Welsh colleagues.

First, I will add a bit of context to the scene so eloquently set out by the hon. Gentleman. Given that time is at a premium, and I am conscious that I am something of an intruder on this debate, 1 will focus solely on food and drink. Quite rightly, food and drink is a priority economic sector in Wales, with 170,000 people contributing to gross sales of £17.3 billion. Much like Scotland, Wales is staring into the abyss as we look over the cliff edge of a hard Brexit, to which we have been driven by the Back Benchers of the Conservative party. Although Wales as a whole narrowly voted to leave the EU, it is worth noting that not all areas did. Ceredigion, for example, which is mainly rural, voted 54.6% to remain, and Gwynedd, with a large agricultural industry, voted 58.9% to stay in the EU. If the Minister is serious about being Wales’s voice in Whitehall, and not Whitehall’s voice in Wales, he should immediately commit to joining the Welsh and Scottish Governments in calling for our membership of the single market and customs union to be maintained.

On trade, it is abundantly clear that access to the single market is essential for our agriculture sector. No one wants to see prime Welsh lamb, or any other fresh produce for that matter, stuck on a lorry, in a queue, waiting for customs clearance. I very much echo what the right hon. Member for Delyn (David Hanson) said. I will not get into the battle about whose lamb is better—I think I might lose that one. As it stands, what will happen is that lamb will be stuck in a queue on a lorry.

On labour, it is vital that our sectors retain the ability to recruit staff from across the European Union. That is why free movement of people must be protected, which can easily be achieved by remaining in the single market. Scotland and Wales’s problem has never been immigration; it has been emigration. Just as in Scotland, Wales needs to build a strong rural economy that will encourage young people to stay, and not exacerbate the brain-drain problem outlined by the hon. Member for Ceredigion.

We need action on a domestic front from the Conservative Government in London as well as the Labour Government in Cardiff. It is important that we ensure that the right infrastructure is in place to support the rural economy. That means action to improve broadband provision, and investment in mobile coverage and drastically improving the rail network. To give an example, in Scotland every year we provide more than £1 billion for public transport and other sustainable options. I know from personal experience of visiting and holidaying in Wales—I spent some time in the summer of 2016 in the constituency of the hon. Member for Ynys Môn (Albert Owen) in north Wales and I echo what he says about connectivity—that the rail network is particularly poor and could do with upgrading. The hon. Member for Ceredigion has already outlined why and how that can be done, including a rail link between Aberystwyth and Carmarthen.

Before I conclude, I want to say a word about how we support the most vulnerable and those on low incomes in our rural communities. With respect, my advice is perhaps aimed more at colleagues on the Labour benches, who would do well to take a leaf out of the SNP Scottish Government’s book and axe the bedroom tax and the public sector pay cap, which affects people in rural communities. Delivering for the many, not the few, cannot just be a soundbite. It needs to be backed up with action, because with devolved power comes devolved responsibility, and there is a moral responsibility on the Welsh Labour Government in Cardiff to act here too.

[David Hanson]

rose—

[David Linden]

If the right hon. Gentleman wants to indicate how he is going to lift the public sector pay cap, I am happy to give way.

[David Hanson]

I think the hon. Gentleman will find the bedroom tax is not devolved in Wales.

[David Linden]

My understanding is that the Welsh Government have spent something like 0.44% of what the SNP Government have spent on discretionary housing payments. I am happy to give way again if the right hon. Gentleman wants to correct that. I see he does not want to.

Wales cannot be stuck between an isolationist Government in Westminster and a lethargic Government in Wales. I very much commend the hon. Member for Ceredigion for bringing this matter to the House.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Wednesday 1st November 2017 Commons Chamber

[Guto Bebb]

Again, I agree with my hon. Friend. The importance of hub airports is understood by businesses across the United Kingdom. It is therefore imperative to have regular flights into Heathrow, which is one of the reasons why we need the expansion of Heathrow. That expansion will be good not only for the United Kingdom, but for regional economies, as connectivity into a major hub airport such as Heathrow will be beneficial to our local economies.

[David Hanson (Delyn) (Lab)]

Trade unions, the CBI and local authorities all support the potential £6.2 billion of investment that Heathrow expansion will bring, but that depends on two things: the extension of HS2 to the Crewe hub; and a final decision on Heathrow. When are they both going to happen?

[Guto Bebb]

The right hon. Gentleman makes a really important point. I hope that the decision on Heathrow will be forthcoming very soon. I agree entirely with him about the Crewe hub. A development in Crewe that links HS2 services into the north Wales main line represents a real opportunity for north Wales. We in the Wales Office have been involved in that with our colleagues in the Department for Transport.

Queen’s Speech: Implications for Wales

Lord Hanson of Flint Excerpts

Wednesday 19th July 2017 Westminster Hall

[David Hanson (Delyn) (Lab)]

I congratulate my hon. Friend the Member for Cardiff Central (Jo Stevens) on securing the debate. One thing she said that struck me forcibly was that the Government lost the general election in Wales. I was pleased to see my hon. Friends the Members for Vale of Clwyd (Chris Ruane), for Gower (Tonia Antoniazzi) and for Cardiff North (Anna McMorrin) gain their seats from the Conservative party.

Having three new Labour Members of Parliament in Wales is relevant to the Queen’s Speech, because it has put a stop to the Government’s grammar schools policy, their proposed legislation on free schools meals and their dementia tax proposals, which caused tremendous upset in my constituency during the election. Positive things have happened because of the general election result, such as last week’s announcement of the inquiry into contaminated blood that my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) had demanded. [Interruption.] The Minister looks quizzical, but he knows that 28 Labour Members and four Plaid Cymru Members were elected in Wales. The Government’s majority is non-existent in Wales.

To secure the passage of the Queen’s Speech through the House of Commons, the Government have effectively had to bribe the Democratic Unionist party with more than £1 billion. I ask the Minister: if the Government are going to give a significant £1 billion boost to Northern Ireland—including £400 million for infrastructure development, £150 million for the roll-out of ultrafast broadband, an extra £200 million investment in health, and further investment to tackle deprivation and mental health issues—is the Barnett formula now dead, as the hon. Member for Arfon (Hywel Williams) suggested? I support the Barnett formula; it works well, ensuring that UK Government expenditure is distributed on a par across the regions of the UK. However, if the Government can find £1 billion from the magic money tree that they said did not exist and give that money to Northern Ireland to invest in things that Wales also needs, such as broadband roll-out, strategic transport infrastructure, housing support and investment in health, then they need to come to defend the Queen’s Speech today.

As the First Minister of Wales has said, if that £1 billion had been apportioned correctly to Wales, it would have meant an extra £1.6 billion for the economy of Wales. That money would have been used, for example, to help to boost the projects that other hon. Members have mentioned today, including not only the south Wales tidal lagoon but proposals for a tidal lagoon in north Wales. It would also have helped us to build on the announcement made by the Secretary of State for Transport two days ago on High Speed 2 at Crewe, to ensure that we get the benefits of HS2 in north Wales through investment in the line from Crewe to Chester and the electrification of the lines across to north Wales. It would have ensured that we met the commitment that the Chancellor of the Exchequer made in the Budget statement to provide money for a growth deal for north Wales, which I am yet to see; I hope the Minister will give some indication of it in his winding-up speech today. There are a range of things that could have been done in the Queen’s Speech, but which the Government failed to do while giving money to Northern Ireland.

I will mention one other thing, because it is happening today. Today in the House of Lords, there is a by-election for a Member of these Houses of Parliament. It is a by-election for an hereditary peer, and among the hereditary peers who are standing is one of my constituents, Lord Mostyn. I had to fight an election six weeks ago to convince thousands of people to vote for me. His electorate today is 31 people—hereditary peers. I hope the Government will bring forward proposals to ban hereditary peers, to stop this nonsense in the House of Commons and the Houses of Parliament. We must abolish hereditary peers and end this system today.

[The Parliamentary Under-Secretary of State for Wales (Guto Bebb)]

Who created that system?

[David Hanson]

The Labour Government did in 1999, with the pledge to abolish it at an appropriate moment. Now is the appropriate time—let us do it today.

[Mr George Howarth (in the Chair)]

We have approximately seven minutes before I have to call the Front-Bench speakers to respond to the debate. I ask the remaining two Back-Bench speakers to divide the time judiciously between them.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Wednesday 8th March 2017 Commons Chamber

[Guto Bebb]

My hon. Friend makes an important point. It was highlighted to me at a recent reception in the Wales Office that since the partnership between S4C and the BBC has seen S4C programmes being available on the iPlayer, the largest area of S4C viewing figure growth has been in England—a 25% rise over the last year alone. This must be welcomed by everybody who cares about the Welsh language and culture.

[Mr David Hanson (Delyn) (Lab)]

The funding last year for S4C was £6.7 million; the funding for next year is £6.1 million. How does that square with the manifesto commitment that the Minister stood on in 2015 to protect funding for S4C?

[Guto Bebb]

The right hon. Gentleman will be aware that the commitment was that the funding for S4C would be frozen until after the delivery of a review of S4C, and I am quite certain that there will be an announcement that the funding will be frozen until after the review has taken place.

Welsh Affairs

Lord Hanson of Flint Excerpts

Thursday 2nd March 2017 Commons Chamber

[Albert Owen]

The hon. Gentleman is right. In fact, I was just coming to businesses. I welcome the Digital Economy Bill. I have been arguing for some time, like many other Members, that we need universal coverage in the UK, and it has been resisted for too long. Now it is in the Bill. United as Welsh MPs, we can take the lead and have the universal service obligation rolled out in Wales first. The Secretary of State, who I know is paying attention on the Front Bench, could be pivotal in taking this up in Cabinet. The Welsh Government, as a single body, are working with BT to roll this out in Wales, unlike in England, where there are several roll-out bodies. We can be ahead of the game, as we have been on many other big issues that have united us, so I hope he will listen and respond positively.

Like many Members, I have worked with BT Openreach and the Welsh Government, and I have worked to get individual businesses connected with fibre to their premises. The Welsh Government are moving forward, but according to the Library, many constituencies in Wales are behind the UK average when it comes to superfast broadband roll-out and the minimum of 10 megabits per second in the universal service obligation. We need to move forward on that. I say to the Secretary of State that we should have a cross-party group. We can be pioneers and lead the way. Wales, with its peripheral areas, rurality and sparse populations, can be a microcosm of the rest of the UK. I urge him to work with me and others on that. Many of the rural areas without superfast broadband also do not have mains gas, pay more for fuel and are greatly disadvantaged and socially excluded, so it is a serious issue I raise when I talk about broadband being a step forward for those areas. I hope that Members will work with me on that campaign.

We also need a transport system that works for the whole UK. I know that the Government have been pushing the case, with the Welsh Government and others, for better cross-border facilities, particularly in the south and north of Wales. It is important that we are an integral part of the UK network. The Secretary of State will get the backing of the Opposition if he pushes not just for electrification of the north Wales line but for better connections between north Wales and Manchester and Liverpool airports. That is essential. Many of my constituents, such as the hon. Member for Aberconwy (Guto Bebb), do not come down to Heathrow or Gatwick if they can get to Liverpool or Manchester. Making that easier for them will be a good deal for the people of north Wales.

I was in the Chamber for the beginning of the International Women’s Day debate, and was very moved by the comments in the opening speech of my hon. Friend the Member for Birmingham, Yardley (Jess Phillips) about our colleague Jo Cox. Jo’s maiden speech will go down in history, not because she so sadly left us, but because she talked then about uniting people and highlighted that there is more that unites us than divides us. We need to go forward with that as an emblem.

One of my predecessors, Lady Megan Lloyd George, moved the first St David’s day debate, and she was one of the first pioneers: she stood up for women across the United Kingdom; she stood up for Wales as an integral part of the United Kingdom; and she was not afraid to talk about high unemployment and to fight for the national health service and social insurance. She had the good sense to move from the Liberal party to the Labour party, and she was a pioneer on those very big subjects. Wales can be very proud that in this House of Commons we have an annual debate, and also that throughout the year we are pioneering Members of Parliament across the parties, and that we work together for the best for our constituents, and work best for Wales within a United Kingdom as outward-looking internationalists. I am proud to open this debate, and—

[Mr David Hanson (Delyn) (Lab)]

rose—

[Albert Owen]

I am sure that my right hon. Friend wants to intervene, as he tried to earlier.

[Mr Hanson]

I am grateful to my hon. Friend for allowing me to intervene. He raised a number of issues that he wants to put to the Government, and I want to ask if he would include among them the impact of the revaluation of business rates on businesses throughout England and Wales. The Welsh Assembly Government are helping businesses quite considerably, but I have, for example, only today received notice from one business that its business rates are rising from £22,000 a year to £66,000 from 1 April. Does my hon. Friend agree that the Government should be looking to address this in next week’s Budget?

[Albert Owen]

I certainly do, and if we had had more time I would certainly have raised the issue, because we did have a revaluation earlier in Wales. We had a transitional period, and now that that has come to an end many of our friends in England are looking to Wales to see what is happening. We need to work together to help in particular rural businesses that are being evaluated on the size of their premises. There are many horse-riding schools in my constituency, one of which I visited on Friday—I did not ride a horse—and it is suffering due to that.

I conclude by saying that the UK Government must take the Welsh dimension to Brexit far more seriously; I hope, and am sure, that they will. The Joint Ministerial Committee is important in areas that are wholly devolved to Wales. That voice of Welsh MPs and the Welsh people needs to be filtered through to Government level. The Prime Minister is the Prime Minister of the United Kingdom and she represents Welsh interests, and it is important that the devolved Administrations have a firm voice in those negotiations going forward.

I will listen to, and respond to, the debate.

Exiting the EU: Businesses in Wales

Lord Hanson of Flint Excerpts

Wednesday 14th December 2016 Westminster Hall

[Chris Elmore]

I completely agree with my hon. Friend. I am getting that constantly from businesses in my constituency. My hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), the shadow Secretary of State for Exiting the European Union, has asked the Government 170 questions on how the UK will be shaped after we have left. To minimise that, I will ask the Government only three simple questions about the effect of exiting the EU on businesses in Wales. Will the Government guarantee to replace post-2020 EU funding that has not yet been underwritten by the Treasury? What steps will be taken to ensure that there is not a training shortage in Wales once we have left the EU? How will the Government involve business in Wales in their EU negotiations, and in representations made by the Secretary of State for International Trade?

[Mr David Hanson (Delyn) (Lab)]

May I add a fourth question to my hon. Friend’s helpful list of three? Will the Government come clean on whether deals have been done with companies such as Nissan in the north-east? In my constituency and that of my hon. Friend the Member for Alyn and Deeside (Mark Tami), we have a large number of car manufacturers. For example, Vauxhall, although in England, and Toyota employ my constituents and those of my hon. Friend, and they depend on access to the single market.

[Chris Elmore]

I completely agree with my right hon. Friend. In addition, the constituency of my hon. Friend the Member for Bridgend (Mrs Moon), who could not attend today, includes the Ford plant that borders my constituency, and I would ask for similar guarantees on the automotive industry, because it has a direct effect in Ogmore.

I will be surprised if the Minister answers any of my questions, but I will conclude with a warning. Leaving the EU will inevitably have an effect on businesses in Wales, but the uncertainty that the Government have created is completely unnecessary. The Government need a plan for businesses in Wales, which they need to announce to the House for the attention of businesses in all our constituencies. The EU is embedded in businesses throughout Wales, and it contributes to funding, training and opportunity.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Wednesday 30th November 2016 Commons Chamber

[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.