(11 years, 6 months ago)
Commons Chamber1. What recent discussions he has had with the First Minister on future investment in the aerospace industry in Wales.
The aerospace industrial strategy published in March sets out a vision for the sector, including a joint industry and Government investment of £2 billion across the next seven years. I am pleased that the Welsh Government have endorsed that strategy.
Aerospace and Airbus are great success stories in Wales, so why do the Secretary of State and his Government believe that now is the time to create uncertainty on the question of Europe, which could threaten future investment in the sector? Does he not want quality jobs in Wales?
I agree entirely with the hon. Gentleman that Airbus is an important and innovative employer. I have visited it twice recently, including when the contract for the AirAsia order was signed. However, Europe is an important issue. The Prime Minister considers it right that we should debate it properly, and that, at the end of that debate, we should have a vote. After the dust has settled, the fact will remain that, of all the mainstream parties, only the Conservative party wants to give the people of this country a vote on Europe.
St Athan enterprise zone in my constituency is focused on aerospace, and offers fantastic facilities, including hangars, runways and skills. What action is the Secretary of State taking to ensure that UK Trade & Investment is playing its full part to work with the community, those employed in St Athan and the Welsh Government to develop its status?
My hon. Friend is entirely right that St Athan offers an enormously important resource in south Wales. The Aerospace Technology Institute will lead collaborative research and development projects across the UK, which will involve universities and industry. I suggest that that is a tremendous opportunity for St Athan.
Airbus is a quintessentially European company. It employs 6,000 people in Wales and 10,000 in the UK, and 100,000 further jobs support it. Does the Secretary of State believe that those jobs will be more or less secure if Wales is not part of Europe?
The hon. Gentleman is wrong because Airbus employs 6,600 people in Wales, but he is right that it is an extremely important employer. Nevertheless, the people of this country deserve to have their voice on Europe. The Prime Minister will carry out important negotiations in the next few years. At the end of that period, the issue of Europe will be put to the British people. It is right that it should be. I am astonished that the hon. Gentleman and the Labour party want to deny the people of Wales and the UK their voice on that important issue.
Leaving the pedantry aside, we had no answer from the Secretary of State on whether he believes that those 6,600 jobs in Wales will be more or less secure if Wales is not part of the EU. For the record, could he clarify his position on whether the jobs will be more secure if Wales is in or out of the EU? What is our Secretary of State’s opinion?
I am entirely happy to clarify the point. Membership of the EU will be subject to negotiation. To repeat, at the end of that negotiation, we will see whether the conditions are right for this country to remain in the EU. The interests of companies such as Airbus will, of course, be taken fully into account.
2. What assessment he has made of the effects of changes to housing benefit rules in Wales.
4. What discussions he has had with the Welsh Government on the effects on the economy in Wales of the Government’s fiscal policies.
I have regular discussions with the Welsh Government on economic issues. Action taken by the Government to deal with the deficit has helped keep interest rates at near record lows, helping families and businesses across Wales.
How many people in Wales have seen their personal tax-free income tax allowances increase since May 2010, and how many small businesses in Wales are set to benefit from the new £2,000 national insurance employment allowance being introduced next April?
The increase in the personal allowance announced by the Government will benefit 1.1 million taxpayers and remove 130 individuals from paying income tax altogether. More than 35,000 businesses in Wales will benefit from the national insurance employment allowance, with 20,000 of them being taken out of national insurance altogether.
I welcome the drop in unemployment in Wales—that is in sharp contrast to unemployment in England—and credit must go to the jobs growth fund introduced by the Welsh Government. What practical steps are the Secretary of State and the Government taking to work with the Welsh Government to eradicate long-term unemployment, which is rising in north Wales and in his and my constituencies?
The hon. Gentleman should also commend Welsh businesses, which are increasing the number of their employees, but certainly I am happy to commend initiatives by the Welsh Government. His point highlights the importance of the UK and Welsh Governments working closely together. That is something that we are prepared to do, and I expect to see reciprocation from the Welsh Government.
The UK Government-sponsored Silk commission recommended empowering the Welsh Government and Welsh local authorities with fiscal responsibility to incentivise economic development. Why were these recommendations not included in the Finance Bill or the Queen’s Speech in a Government of Wales Bill?
6. What assessment he has made of the potential for co- operation between enterprise zones in England and Wales.
I see great potential in a joined-up approach to enterprise zones in England and Wales. Co-operation will enhance the offer that each of the zones presents, and I will continue to engage with the Welsh Government to explore these opportunities.
Today’s unemployment figures show that the Chester and north-east Wales economic sub-region is becoming a jobs powerhouse in the local area. By working together, the three enterprise zones in the area—Deeside, Wirral and Daresbury—can pack a stronger punch than if they act individually. Will the Secretary of State ensure that local authorities work together to pack that bigger punch?
I visited the Deeside industrial park forum last Friday, and that was very much the message I got from employers in that enterprise zone. There is far more to be gained from the three enterprise zones working closely together. One of the catalysts for expansion of those zones would be electrification of the Wrexham to Bidston railway line, which is a matter that my office is working on.
I am delighted to hear that the Wrexham to Bidston line project is under consideration by the Secretary of State’s office. Will he convene a meeting of MPs and Assembly Members from north-east Wales, and of MPs from Cheshire, to discuss the project and what steps can be taken, using enterprise zones, to take it forward?
I am pleased to hear the hon. Gentleman welcome that initiative. His proposal is certainly worthy of consideration. I am having a number of meetings in the immediate future with representatives of other enterprise zones, and in due course I will write to him and perhaps invite him to such a meeting.
It is indeed heartening to hear the Secretary of State speak supportively of the Wrexham to Bidston line upgrade project, which we want to see happen. Does he welcome Network Rail’s publication of its Long Term Planning Process, which sees connections between Wrexham and Liverpool being much improved, and can MPs from Merseyside also be invited to any such meeting he might convene?
I am pleased to hear the hon. Lady’s comments. I think she would agree that electrification of the railway line between Liverpool and Wrexham would add greatly to the economies of north-east Wales, and Wirral and the north-west of England. It is important that we work with Merseyrail, and I hope to meet Merseyrail in the very near future. I am grateful to the hon. Lady for her support.
7. What discussions he has had with his ministerial colleagues and others on the contribution of the M4 to the UK’s national transport infrastructure.
I have regular discussions with ministerial colleagues, Welsh Ministers and others on the strategic importance of the M4 to the UK road network.
Does my right hon. Friend agree that it is excellent news that the talks between the Welsh Assembly Government and the UK Government have resumed after 10 years of inactivity on this subject? Is he aware of the recent remarks of the director general of the CBI, who indicated that progress on this issue, coupled with electrification of the line through to Swansea, would represent the biggest investment in the Welsh economy for a generation?
I certainly agree with that. Furthermore, I would point out that the M4 is an extremely important UK national asset and it is a great pity that it was not upgraded long ago. Recently, I have had discussions with Welsh Assembly Ministers on this issue, and I hope that we will be able to make further progress.
Will the Secretary of State press the Treasury to invest now in the M4 above Newport and Port Talbot, going westwards, and to reduce the Severn bridge tolls, to give a real stimulus to the south Wales economy?
I am heavily engaged with the Treasury on that very issue. However, I must point out to the hon. Gentleman that the road network in Wales is a devolved competence, and it is a great shame that the Welsh Government have not attended to this problem sooner, before the situation declined to the extent that it has. We are certainly engaged with the Treasury, and I hope that we will be able to make announcements in the future.
Does my right hon. Friend agree that the M4 in south Wales is in desperate need of improvement, to relieve congestion that is hampering economic development there?
Yes, the congestion on the M4 is causing significant difficulty to Welsh commerce and, of course, to Welsh motorists. I repeat that it is a great pity that the Welsh Government did not carry out their statutory function by upgrading that road long ago. This is a matter on which I am engaged with the Welsh Government, and I hope we will be able to make further announcements in due course.
Will the Government introduce road tolls on the new M4 relief road?
8. What discussions he has had with his ministerial colleagues and others on increasing the accessibility of educational institutions in Wales to students from overseas.
The Government have no plans to change the name of the National Assembly for Wales.
In the light of the Silk review, which is likely to give fundraising powers to the National Assembly, does the Secretary of State not agree with me—and, more importantly, with the leader of the Welsh Conservatives, Andrew R. T. Davies—that now is the time to consider calling it the Welsh Parliament?
Well, have I got news for my hon. Friend! The Silk commission has not yet completed its work; it will report in the spring of next year. The title “National Assembly” is used by the primary legislatures of countries such as France and South Africa, and also by the regional legislature of Quebec. The issue is what the legislature does, rather than what it is called.
12. What assessment he has made of the potential effects in Wales of the reduction in the rate of corporation tax to 20%.
In total, the main rate of tax is set to fall by 8 percentage points under this Government. The United Kingdom will have the lowest rate in the G20, lower than most of our main competitors.
As well as reducing corporation tax, what else can the Government do to help small businesses in Wales?
The reduction in corporation tax will be of immense benefit to Welsh small businesses. The Budget did, of course, announce that the national insurance employment allowance will benefit 35,000 businesses in Wales, with 20,000 of them taken out of paying national insurance contributions altogether.
13. What assessment he has made of the effects of the Government’s policies on the living standards of people in Wales.
This Government are committed to supporting those on low and middle incomes and to assisting growth by putting more money in the pockets of ordinary taxpayers. For example, the cumulative effect of this Government’s announced increases to the income tax personal allowance will result in a cash gain of £705 per annum for a typical basic rate taxpayer.
Some 400,000 individuals across Wales will face real-terms cuts in tax credits and benefits at a time when 13,000 millionaires across the UK will get a tax cut. Does the Secretary of State think this is right—yes or no?
What I would say is that those on higher earnings will be paying more tax under this Government than they did during any year of the last Labour Government. We are supporting families with lower taxation and we are reducing the tax burden progressively; it would appear that the hon. Lady’s party has no interest at all in supporting the interests of hard-working families.
(11 years, 8 months ago)
Commons Chamber11. What recent assessment he has made of the effects of the Government’s economic policies on Wales; and if he will make a statement.
Before answering the question, I wish the House dydd gwyl Dewi da or a very happy St David’s day for Friday.
The Government are committed to delivering the plan that has cut the deficit by a quarter and given us record low interest rates and a record number of jobs, benefiting families and businesses in Wales. Moody’s decision to downgrade the UK Government bond rating is a reminder of how important it is to fix the country’s finances and a warning to those who think that we should simply borrow more.
What is good for the economy of north Wales is good for Merseyside and what is bad for that economy hurts us too. The fact that 1,240 more people are in long-term unemployment in north Wales than a year ago does not give me hope for the economy of my constituency. What is the Secretary of State going to do about that?
The hon. Lady is entirely right that the economies of north Wales and Merseyside are inextricably linked. The Government have created more jobs since we came to power. The rate of employment has increased by 1.6%. She should bear it in mind that the Welsh Assembly Government are responsible for economic development in Wales. They should therefore align their policies closely with those that this Government are pursuing.
Will the Secretary of State admit that his economic policies are failing Wales disastrously? His new jobs are a mirage. One new worker in 10 is underemployed. They are part-timers seeking full-time work or temporary workers who want a proper job. There are underemployed breadwinners who are struggling to put food on the table and heat their homes. That is contributing to the 200,000 children who are living in poverty in Wales. Why does he not apologise for that shameful record?
I will take no lessons from the right hon. Gentleman, whose party oversaw the trashing of the British economy and was responsible for the mess that we are having to clear up. The Government have created more than 1 million private sector jobs since we came to power, against the international trend, and we are proud of that.
Will the loss of the triple A status of the British economy be bad or very bad for Wales?
The loss of the triple A status is a stark reminder of how important it is to develop sensible policies to fix the economy. I remind the hon. Gentleman that Moody’s recognises that the UK’s creditworthiness remains extremely high and points to the strong track record of fiscal consolidation. Were it not for that, we would be on a negative outlook, rather than a stable one.
I am glad to see that the Secretary of State is reading from a script today. No doubt, he is not trusted to make off-the-cuff comments again. I wish him a dydd gwyl Dewi hapus. What will life be like from April, after dydd gwyl Dewi, for the 170,000 working families who will lose their tax credits thanks to his Government, who prefer to give the money to millionaires?
What recent assessment has my right hon. Friend made of the prospects for the Welsh house building industry?
The house building industry is extremely important in Wales and a major driver of economic recovery. I was therefore disappointed to read today the comments of Steve Morgan, the chairman of Redrow plc, Wales’s largest building company, who says that the Welsh Government’s housing policies are potentially “catastrophic” for the industry, with the new regulations made in Cardiff likely to add £11,000 to the cost of a three-bedroom house. At a time when Welsh builders need work and Wales needs more homes, that cannot be right. I consequently urge the Welsh Government to align their policies with those of my right hon. Friend the Secretary of State for Communities and Local Government.
Although unemployment in the Vale of Glamorgan is well below the national average, Barry still needs to attract private sector investment. Ten years ago, Barry was left out of the assisted areas map, which sadly has led to its increased decline. Will the Secretary of State work with the Welsh Government to ensure that Barry receives assisted area status this time around?
The Wales Office is in discussion with the Department for Business, Innovation and Skills and the Welsh Government about the assisted areas map for 2014 to 2020, but the decision on which sea areas are awarded assisted area status will be determined by the Welsh Government, subject to criteria set by the European Commission. I am sure they will listen to what my hon. Friend has to say.
No coalition Government policy has a greater economic impact on Wales than increasing the spending power of the poorest through raising the tax-free allowance. Will my right hon. Friend tell the House how many people the coalition Government have lifted out of paying tax in Wales over the past two years?
The Welsh economy benefits from students from developing countries attending our excellent universities. Following the Prime Minister’s visit to India, will the Secretary of State join our universities in telling students from India, China, Malaysia and Indonesia that Welsh universities are open and that they would be welcome to study there?
Higher education is a major export earner for Wales and, of course, for the United Kingdom as a whole. During his recent visit to India my right hon. Friend the Prime Minister made it clear that there is no arbitrary limit on the number of students who can study in the UK, provided they have the necessary qualifications and can speak the language. They are more than welcome to come to the UK.
Last week the Joseph Rowntree Foundation warned that Wales faces a decade of destitution as a result of policies pursued by this Government, and the Welsh Government said that £600 million is being taken out of the pockets of ordinary Welsh people. Is the Secretary of State telling the Prime Minister and his Cabinet colleagues what people are saying about his Government in Wales, or is he just there to cheerlead for policies that are hammering his country?[Official Report, 28 February 2013, Vol. 559, c. 7-8MC.]
If this Government were to pursue the policies advocated by the Labour party and try to fix a debt crisis simply by borrowing more, the plight of the individuals whom the hon. Gentleman mentions would be infinitely worse. So far we are providing 109,000 additional jobs for the people of Wales, and we are reducing their tax bills and doing our best to ensure that they get sustainable private sector jobs. The hon. Gentleman has no answer to that.
2. What recent discussions he has had with the Secretary of State for Work and Pensions on the roll-out of universal credit in Wales.
4. What recent discussions he has had on the roll-out of superfast broadband in Wales.
The Government have demonstrated our commitment to superfast broadband by providing £150 million across the UK to fund super-connected cities including Cardiff and Newport, and almost £57 million to the Welsh Government to ensure that broadband access is available to homes and businesses in the hardest-to-reach parts of Wales.
Will my right hon. Friend assure the House that the Government’s aim is to provide a truly modern digital infrastructure that does not leave behind rural communities in Wales—and, for that matter, in Macclesfield?
Even though there is a lot of rain in Swansea, the council wants to create a new cloud over Swansea—a wi-fi cloud. Will the Minister meet me and the council to discuss the prospect of super-connectivity for Swansea in the forthcoming Budget, so that the sun continues to shine through the clouds, and we can bathe in the glory of being League cup winners?
This Government are committed to broadband, but does the Secretary of State share my bewilderment—and that of many of my businesses and farmers in the Ceredigion constituency—at the Welsh Assembly Government’s curious prioritisation, which means that some rural and hard-to-reach areas of Wales will not benefit from broadband initiatives for two years?
It is good to see my hon. Friend speaking up for Ceredigion on Ceredigion day. A number of colleagues have commented on the choice of areas for the first roll-out. Suffice it to say that Broadband Delivery UK is keeping a close watch on how that develops, and I will speak to it on that very issue.
Because of the lack of coverage on main-line televisions, many of us had the great joy at the weekend of watching Swansea’s triumph on broadband. Will the Secretary of State assure us that the future triumphs of Newport County, Cardiff City and Wrexham will be available on broadband?
6. What discussions he has had with Ministers in the Welsh Government who have partial responsibility for justice and law and order.
I have meetings with Ministers in the Welsh Government on a wide range of issues, including justice and law and order, although they are of course not devolved.
I will wish the Secretary of State a happy St David’s day on St David’s day and not today.
There is an all-Wales legal circuit, four excellent police forces and an all-Wales probation trust. It is high time that we devolved justice and policing to Wales. The Secretary of State will know that there is a huge clamour of enthusiasm for this move. I hope he will join it.
I understand that Plaid Cymru has made its submission to the Silk commission, which will no doubt consider those proposals. It will report in spring next year. The Government have shown our commitment to devolution of policing by creating the office of police and crime commissioner, which brings policing as close as possible to the policed public.
I heartily disagree with the Secretary of State on that—police and crime commissioners are nothing of the sort—but the obvious point is that laws in Wales are diverging naturally from those in England, including in administrative law, family law and criminal law. It is high time that the legislature in Wales had its own system. Otherwise, it will probably be the only legislature in the world without such a system.
The Welsh Assembly may be able to prevent parents from having their children educated in England and prevent patients from being treated by the excellent English national health service, but they will not be able to stop criminals crossing the border and breaking the law in England, or vice versa. Does the Secretary of State agree that it would be a disaster to devolve policing and justice to the Welsh Assembly?
In his discussions with Welsh Ministers, has my right hon. Friend had an opportunity to look at the costs and implications of a separate legal jurisdiction in Wales? Can he tell the House whether he favours such a separation?
8. What discussions he has had with the Secretary of State for Defence on the closure of the army recruitment offices in Wales.
9. What discussions he has had with his ministerial colleagues and others on building a new prison in north Wales; and what progress has been made.
The Ministry of Justice is carrying out a review to examine the feasibility of constructing a new prison. I am pleased that north Wales is being considered as a possible location and reiterate my strong support for locating a new prison in the area.
I thank my right hon. Friend for his response, and I warmly welcome the possibility of a so-called “super prison” in north Wales. Does he agree, however, that while further public sector investment in north Wales is welcome, it should not detract from the need to rebalance the Welsh economy and ensure that we move away from the dependence on public sector pay in Wales?
My hon. Friend makes a fair point. The new prison would provide approximately 900 new jobs of high quality, but its economic impact on the area would be approximately £17.5 million, which would itself be a stimulus to the private sector. The new prison is widely welcomed in north Wales.
The Secretary of State said that the Ministry of Justice was reviewing the possibility of a prison in north Wales. Has the Wales Office itself identified sites? I believe, and he believes, that this would boost economic activity in north Wales. It would be good for the economy as well as the justice system.
10. What assessment he has made of the potential effect of the under-occupancy penalty on social housing in Wales.
(11 years, 10 months ago)
Commons Chamber2. What recent assessment he has made of the defence industry in Wales; and if he will make a statement.
The defence industry is a significant contributor to Wales and the UK’s economy, contributing more than £22 billion of annual revenues, of which £5.4 billion is from exports. Companies such as General Dynamics, EADS and BAE Systems ensure that the defence industry makes a vital contribution to the economy in Wales.
I am always extremely grateful—as I am sure the entire House is—to see my hon. Friend take such an interest in Welsh matters. In November I visited EDGE UK, which is part of General Dynamics, and I was tremendously impressed with its exciting research and development programme. It is an excellent example of a part of the defence industry that is benefitting Wales hugely.
The Royal United Services Institute think-tank produced a paper demonstrating that 40p of every pound spent on a UK-based—indeed, a Welsh-based—defence contractor brought 40p back into the UK economy. Will the Minister ensure that the Treasury and the Ministry of Defence understand the importance of supporting our Welsh defence industries so that we can also support the UK economy?
The Wales Office and the MOD are keenly aware of the importance of the defence industry to the economy of this country, and the hon. Lady is right to say that it makes a significant fiscal contribution. That is why I was extremely pleased to visit EDGE UK last year and see it making such a huge contribution to the economy in that part of Wales.
The MOD has disclosed that on safety grounds it has ruled out Devonport as a suitable relocation site for Trident following Scottish independence. Is the Secretary of State as surprised as I am that the First Minister is making a case for Milford Haven, when the MOD has not undertaken any safety assessment of the casualty rate in south-west Wales following a strategic attack or a Trident-related accident?
3. What recent assessment he has made of the automotive industry in Wales; and if he will make a statement.
4. What recent discussions he has made on aviation policy in Wales; and if he will make a statement.
I have had discussions with Cabinet colleagues and the First Minister about Cardiff airport and aviation policy in Wales more generally.
The Welsh Government have taken the remarkable decision to tie up much needed capital public funds in the purchase of Cardiff airport, in spite of our thoughts and concerns. Will the Secretary of State take every proactive step possible to encourage new airlines to consider using Cardiff airport in order to increase the number of destinations it serves and to make the place sustainable, especially given the importance of the British Airways maintenance centre, which uses that runway?
As I said, I discussed this matter with the First Minister recently. The purchase of Cardiff airport is of course a matter for the Welsh Government. I have no doubt that they will be looking to see a robust business case for that purchase, and we will be considering the issue of the operator of the airport very carefully, too. My hon. Friend makes an important point about the importance to the local economy of the BA maintenance facility.
In order to stimulate jobs in aviation and the aerospace industry, will the Secretary of State press the Chancellor to give Swansea super-connected city status in the forthcoming Budget?
The hon. Gentleman will know that Swansea made a bid for super-connected status, which was considered. Newport got super-connected status, which I am sure is welcomed by the people of Newport. He will know that a business case has to be made. He was very much to the fore in the business case for the electrification of the railway line to Swansea, and I hope he will play a similar role with regard to super-connected status.
5. When he last met representatives of the tourism industry in Wales and what representations he received at that time; and if he will make a statement.
6. What assessment he has made of the economic effect on people working in Wales of reductions in tax credits and other benefits for working people.
The measures announced in the autumn statement will mean that working households are on average £125 per annum better off in 2013-14.
Is the Secretary of State aware that Neath food bank is now seeing more people in work—many part time and desperate—than out of work? One hundred thousand working people in Wales are now being hammered by his welfare cuts, some among the 230,000 households in Wales that will be forced by the Government to pay council tax for the first time in April. Will he now take down from the Wales Office website his promise that people will be better off under this Government in work and admit that some cannot even afford to eat?
Certainly not. In fact, people who are in work are considerably better off. The average earner on the minimum wage who works full time will by next April be paying half as much in tax as he did at the beginning of this Parliament, in the wake of the right hon. Gentleman’s Government. If he is not willing to tackle the appalling legacy of the welfare shambles that he left, we will be prepared to do so.
Does my right hon. Friend share my amazement at the complaint we have just heard from a senior member of the last Government, a Government who twice froze personal allowances and doubled tax for low earners, from 10p to 20p as a starting rate? Is not the reality that the massive £3,000 hike in the personal allowance—which Labour does not like to hear about—is helping low-paid people in Wales and the whole of—
Order. The hon. Gentleman is an experienced Member, but unfortunately his question was too long and substantially irrelevant. The Minister will focus on the responsibilities of the current Administration, briefly.
Could the Secretary of State tell us exactly how many households will see their modest incomes cut as a result of the reductions in tax benefits and other social security benefits that he voted for last week?
There was no answer there from the Secretary of State, as usual. Let me tell him the answer. There is no excuse for his not knowing, because his own income assessment makes it clear that 400,000 households—a third of all households in Wales—will lose out as a result of these changes. Let us contrast that with the 4,000 households—that is 4,000 versus 400,000—that will get a tax break as a result of the millionaires’ tax cut. That ratio of 100:1 tells us everything we need to know about this Government. The 99% pay while the 1% profit. Let me be clear: Labour will continue to speak for the 99%; the Secretary of State can speak for the 1%.
As a consequence of the measures taken by this Government, 1.1 million taxpayers in Wales are paying less tax, while 109,000 taxpayers in Wales are now paying no tax at all. That is what we are doing for hard-working people, and I am appalled that the hon. Gentleman sees fit not to support them.
7. What assessment he has made of the availability of skills in the nuclear power industry in Wales.
Hitachi’s investment at Wylfa will help to ensure that our nuclear work force remain highly skilled and some of the best in the industry. Talented young apprentices on Anglesey can look forward to an excellent future at Wylfa.
Locally in Gloucestershire, as well as through the national training academy for nuclear, we are working hard to ensure that we have sufficient skills—and retain those skills—ready for nuclear new build. What measures will the Secretary of State be proposing to ensure that Wales, too, benefits from the ability to improve that capacity?
The Secretary of State will be aware of the new energy centre in Llangefni—indeed, he has visited—which upskills people in the nuclear industry and for low carbon. However, with unemployment increasing considerably in 2012 and the announcement of a further 350 jobs at risk at Vion, will he meet me urgently to discuss the skills and jobs issues that are harming the prospects of young people and under-skilled people in Wales?
Would it not be better to invest the money elsewhere because of the uncertain future of nuclear power, given the huge cost overruns in Finland and France and the fact that those two power stations are already three to four years late? Owing to the uncertainties relating to nuclear power, should we not be investing in renewable energy, and particularly in tidal energy, which is Wales’s North sea oil?
The Government are committed to a mix of energy that includes renewables and nuclear, and nuclear will play an extremely important part in that mix. The Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), has announced that the generic design assessment of the Wylfa reactor has commenced. The reactor will be a huge asset to the nuclear industry in this country.
8. What steps he is taking to tackle fuel poverty in Wales.
9. What recent assessment he has made of the aerospace industry in Wales; and if he will make a statement.
The aerospace industry plays a key role in the Welsh economy, and Wales benefits from the continued investment made by major aerospace companies such as Airbus and GE Aviation.
I thank the Secretary of State for that answer. Will he join me in welcoming Air Asia’s £5.5 billion purchase of 100 A320 aeroplanes from Airbus? That will be good news for the aerospace sector in Wales and in my constituency, where there are several aerospace companies with Airbus contracts.
The success of Airbus is based on European co-operation. Does the Secretary of State think that his hopeless Government could possibly learn from that example?
10. What assessment he has made of the Government’s income tax policy so far as it relates to Wales.
(11 years, 12 months ago)
Commons Chamber1. What recent discussions he has had with his ministerial colleagues on the prospects for the energy generation sector in Wales.
Before I answer the question, Mr Speaker, with your permission I would like to express my sympathy—and, I am sure, that of the whole House—for the victims of the flooding in north Wales and our thanks for the hard work of the emergency services. I propose to visit the affected area tomorrow.
I have regular discussions with ministerial colleagues on the prospects for the energy generation sector in Wales, particularly in relation to the recent good news that Horizon Nuclear Power has been bought by Hitachi, helping to secure the future for new nuclear on Anglesey.
I thank my right hon. Friend for that answer and join him in paying tribute to our emergency services. On the specific issue of nuclear power, in my constituency of Pendle we have the excellent Graham Engineering, which is part of the nuclear supply chain and supports more than 300 local jobs. In light what he has just said about the Hitachi-Horizon announcement and nuclear generation in Wales, can he say more about supply chain job creation in both Wales and other parts of the UK?
The announcement by Hitachi provides an enormous opportunity for all those involved in the nuclear industry in this country, particularly those in the supply chain. I am heartened that Hitachi has already said that up to 60% of the total cost of the first nuclear reactor will come from British content. I have no doubt that there is a tremendous opportunity for companies such as those in my hon. Friend’s constituency.
I welcome the support the Secretary of State has given to Horizon and for the takeover by Hitachi. To get 21st-century technologies such as offshore wind and nuclear power on to the grid, we need to improve the infrastructure, and 21st-century infrastructure should include subsea and subsea stations. Will the Secretary of State agree to meet me to discuss the proposals from National Grid that are in front of the public in north Wales?
I commend the hon. Gentleman for the work he has done in seeking to obtain new nuclear on Anglesey. He knows that I have always been anxious to work closely with him on all aspects of nuclear generation on Anglesey and of course I am prepared to meet him, because he has raised a very important point.
As the Secretary of State knows, Wales is very well placed for energy generation and the Swansea bay tidal lagoon project plans to offer educational services to the university in Swansea to foster skills in green energy creation. Will he commend the project and those similar to it for their commitment to creating jobs and local expertise in Wales?
The right hon. Gentleman makes an important point. Green energy presents enormous opportunities to Wales and I commend the project he mentions. We now have the green investment bank, which has just been launched today. It will provide the most enormous opportunity to leverage investment into that important future sector.
I thank the Secretary of State for being so positive. He knows that renewable energy generation in Wales increased by 58% between 2004 and 2010 and employs hundreds of people, including in the solar panel industry in mid-Wales, and of course we have seen the developments on Ynys Môn, the energy island. Does he agree that now is perhaps the time for us in Wales to showcase our skills, our resources and our prospects to the rest of the world at a green energy summit? If he is so minded, would it not be a good thing to place that summit in the enterprise zone at Trawsfynydd?
Actually, I had not thought of that, but it is an excellent idea that we should take further. I was speaking to the leader of Gwynedd council, Councillor Dyfed Edwards, the other day and discussed the important enterprise zone at Trawsfynydd. Let us explore the prospects of a summit at Trawsfynydd.
2. What discussions he (a) has had and (b) plans to have with the Welsh Government on effective ways of increasing organ transplantation in Wales.
5. What steps he plans to take to implement the recommendations of the first report of the Commission on Devolution in Wales published in November 2012.
I welcome the publication of the commission’s first report. It is an important piece of work that is thorough and wide-ranging, and I am giving each of the 33 recommendations my full consideration in consultation with Treasury and other Cabinet colleagues. The Government will respond formally in due course.
I, too, congratulate Paul Silk and his team on the excellent work they have done and on the report they produced. Will the Secretary of State make a commitment to introduce legislation in this Parliament to carry forward some of the recommendations in the Silk report?
The Silk Commission makes a compelling case on the devolution of partial income tax to the Assembly. How swiftly does the Secretary of State believe that we can proceed on this, given the apparent reluctance of the First Minister to countenance reform before full Barnett reform, despite a very good agreement that was brokered in October?
The First Minister’s position is a matter for him, but Paul Silk makes it clear that the commission recommended the devolution of income tax-varying powers within different bands, subject to agreement between the Welsh and the British Governments on issues such as funding. That matter must continue to be looked at.
Does the Secretary of State agree that those who argue that Wales does not have the tax base to partially devolve income tax are fiscally illiterate?
Does the Secretary of State agree that if the Assembly is given, and uses, powers to raise unlimited amounts of income tax, the effects on the Welsh economy could be devastating?
I think it unlikely that the Assembly could raise unlimited amounts of tax, because it would need unlimited levels of income, which everyone would agree it does not have. Paul Silk’s work is important, and it deserves careful consideration, and that is what is happening at the moment.
May I first add my words of sympathy and best wishes to those who have been affected by the floods in Wales, and my thanks to the emergency services and volunteers, and to the Secretary of State for going there tomorrow?
As the Secretary of State will know, the Silk commission’s report is a very important document that has produced recommendations relating to air passenger duty and income tax—issues that affect not just Wales, but the whole of the UK. Does he therefore agree that the whole House ought to be able to debate those issues, and can he explain why he seems to want to limit that debate to the Welsh Grand Committee?
I believe that we should have an early debate in the Welsh Grand Committee on this important issue. The hon. Gentleman will know that my office is in touch with his office and the offices of the leaders of other parties with a view to agreeing that. It should be done as quickly as possible. On the question of a further debate, that is clearly a matter for the Treasury, the Wales Office and the Welsh Assembly Government to progress the work that is being done to discuss the issue, and at that stage we should consider a further debate, which could potentially be on the Floor of the House. Certainly, any legislation would require primary legislation, which would have to be a matter for the House to deal with in the usual way.
I think the Secretary of State said he is in favour of a debate on the Floor of the House, which is welcome, as his predecessor committed to holding such a debate when we last discussed the Silk commission. In anticipation of that debate and outside the Silk commission, so to speak, the right hon. Gentleman will know that borrowing powers are extremely important to the Welsh Government. Can he confirm that the Silk commission’s recommendation that £200 million-worth of non-income tax powers would constitute, in his view, an independent income stream that would facilitate borrowing for the Welsh Government?
4. What recent assessment he has made of repatriating from the EU regional policy as it relates to Wales.
7. What recent discussions he has had with UK Trade & Investment on attracting investment to enterprise zones in Wales.
When I met the chief executive of UKTI last month we discussed how to attract more investment into Wales, including via enterprise zones.
The progress of enterprise zones in Wales has been somewhat patchy, compared with those in England. Will my right hon. Friend agree to work with the enterprise zone in St Athan in seeking to attract major international airlines because of its policy on aerospace?
14. With 11 jobseeker’s allowance claimants chasing every vacancy, we need jobs in Blaenau Gwent. A planning application for a world-class motor sport project will be kick-started this week. Will the Secretary of State help the investors to meet the Treasury to nail down the tax incentives needed for that game-changing development?
I commend the hon. Gentleman for his efforts on behalf of that enterprise zone. He will know that I have met the potential operators of the race track. I understand that bids for enhanced capital allowances have been made by the Welsh Government to HM Treasury. As he knows, I am always happy to discuss these issues with him in person.
8. What recent estimate he has made of the number of long-term unemployed people in Wales; and if he will make a statement.
9. What departmental savings he plans to make in 2013-14.
The Wales Office will be making savings of around £550,000 in 2013-14, which amounts to a 10% saving in its administration budget.
With Wales, Scotland and Northern Ireland now having Assemblies or Parliaments of their own, many of us would like to see the three territorial Departments rolled into one to save taxpayer funds. Given that that is not part of the coalition’s programme, will my right hon. Friend at least look at more joint working and shared services between the three Departments so as to save money for the taxpayer?
I am pleased to say that that joint working already takes place. In fact, the Wales Office is working actively with the other territorial offices to identify shared working arrangements and we also have a shared parliamentary team. I must take issue with my hon. Friend: I think that Wales benefits immensely from having a Wales Office here at Westminster and I would not want to see it submerged in a quasi-colonial office.
10. What discussions he has had with (a) his ministerial colleagues and (b) Welsh Government Ministers on the development of enterprise zones in Wales and the Welsh borders.
I am determined that we should maximize the opportunities that enterprise zones can offer in attracting private sector investment and growth into Wales. I am working with ministerial colleagues and the Welsh First Minister to secure this.
My right hon. Friend will be aware of the proximity of the Deeside enterprise zone with those in Wirral Waters and Daresbury. Does he think there is a case for those three enterprise zones to work together to maximise the potential for economic growth in the economic sub-region?
Yes. As my hon. Friend has said, the Deeside enterprise zone is close geographically to that in Wirral Waters, and I believe that there is a tremendous opportunity for synergy between the two zones. In fact, I have already had discussions with the chairman of the Deeside enterprise zone to see what can be done to advance that.
What processes does the Secretary of State have in place to try to resolve some of the issues that Welsh border constituencies have with access to the NHS, road maintenance and other services? They are finding it very difficult to resolve such issues through their local MPs, because the Welsh Assembly and Government will not give time to consider them.
My hon. Friend raises an important issue. I believe that, in his part of the world, the Mersey Dee Alliance is an appropriate focus and I was very heartened by the proposals in Mrs Elizabeth Haywood’s report to the Welsh Government to create a cross-border city region focused on the Mersey Dee Alliance area.
12. What steps he is taking to tackle fuel poverty in Wales.
13. What recent discussions he has had with the Secretary of State for Transport on capital investment in rail infrastructure in Wales; and if he will make a statement.
I discussed railway infrastructure with my right hon. Friend the Secretary of State for Transport when I met him last month. Last week I met local authorities and business leaders in north Wales to confirm my commitment to progressive electrification of the railways in Wales.
I was disappointed to read in a recent letter from the Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns) that the Welsh Government has not prioritised the electrification of the north Wales line. In view of the fact that the Welsh Government do not seem to be interested in north Wales, will the Secretary of State provide an assurance that the Wales Office will prioritise expenditure on the north Wales line in due course?
As my hon. Friend will know, only last Friday I held a meeting in Llandudno, the consequence of which was the formation of a working group to work towards the electrification of the north Wales coast line. The group has started its work and I hope that it will receive support from hon. Members in this House.
Far from the Assembly’s Transport Minister not being interested in north Wales, he represents a north Wales seat and has been communicating with me about electrifying the Wrexham-Bidston line. Will the Secretary of State please join our communication and work with us to improve public transport networks in north-east Wales?
15. What recent discussions he has had with his ministerial colleagues on increasing private sector employment in Wales.
(12 years, 1 month ago)
Commons Chamber1. What recent discussions he has had with the Secretary of State for the Home Department on preparations for elected police and crime commissioners in Wales.
With permission, Mr Speaker, I would like to take this opportunity to pay tribute to the dedication and professionalism of Dyfed-Powys police and all the other agencies involved in the search for April Jones, who went missing on 1 October. I am sure that the whole House will join me in praising them for their continued work to find April and in praising the support shown by so many of the people of Machynlleth for her family.
The Wales Office and the Home Office have been working closely with the Welsh Government and partners to make the police and crime commissioner reforms a success in Wales. Considerable progress has been achieved through the Wales Transition Board.
I welcome the Secretary of State to his new job. Will he let us know how much printing the second set of ballot papers for the police commissioner elections in Wales will cost the Home Office?
A serious potential problem has been averted over the preparation of voting papers in the Welsh language. Will the Secretary of State engage with the Welsh Language Commissioner to ensure that the commitment to bilingualism in Wales is fully respected in all non-devolved areas, where the problem arose?
Yes, the Wales Office is committed fully to the Welsh language and its support, not only in the devolved areas but in the un-devolved ones. I am pleased to report that my office is working closely with the Welsh Language Commissioner, and indeed it is proposed that an official of the commissioner will be embedded in the Wales Office.
I know that the right hon. Gentleman is a great proponent of the Welsh language, but I urge him to ensure that in all aspects and in all avenues of work within the Palace of Westminster the Welsh language is given the respect it so rightly deserves. I hope that this type of thing is not going to happen again.
The hon. Lady has identified a problem that needs to be resolved, in that the Welsh Language Commissioner is, of course, a position that was created by the Welsh Assembly. It is important that in the non-devolved areas sufficient support should be given to the Welsh language, and I am pleased to report that my office is prepared and anxious to undertake that duty.
2. What recent discussions he has had on the future of the steel industry in Wales.
3. What steps he plans to take to promote the Prime Minister’s respect agenda in dealings between the UK Government and the Welsh Government.
I am committed to working with the Welsh Government to deliver economic growth in Wales. I do not intend that political differences should stand in the way of such co-operative working in the interests of Wales.
I congratulate the Secretary of State and his hon. Friend the Minister—llongyfarchiadau, as we say in Wales. When the Prime Minister promised a respect agenda, did he mean trying to block Welsh Assembly legislation, unilaterally abolishing wage protection for agricultural workers in Wales and tearing up a cross-border GCSE exam system without consultation? If that is the case, can he even spell the word respect? It is R. E. S. P. E. C. T., by the way.
As we say in Wales, diolch am y llongyfarchiadau. I can assure the hon. Gentleman that this Government are fully committed to the respect agenda. We are working closely with the Welsh Government and I am very pleased with the relationship I am cultivating with Carwyn Jones, the First Minister.
Would both Ministers, whom I warmly congratulate, agree with me that parch, as we say in Monmouthshire, is something that works in both directions, and that the refusal of Welsh Assembly Ministers to appear before Select Committees shows a disgraceful lack of respect not only to this House but to those of us who were put in it by the people of Wales?
I welcome the Secretary of State to the job and although I wish his predecessor all the best, may I say how good it is to have a Welsh MP as Secretary of State for Wales again, but why on earth is he referring the first two laws passed by the Welsh Assembly under the Government of Wales Act 2006 to the Attorney-General? The provision I included in that Act was not to allow the Secretary of State to block Welsh legislation but primarily to deal with any cross-border issues, which I cannot see apply in these cases. Why is he interfering in this anti-devolution manner?
I echo the tribute the right hon. Gentleman pays to my predecessor, who was an excellent Secretary of State. As for the references to the Supreme Court, as he knows these matters are set out in the Government of Wales Act, for which he was responsible. The reference of the first Welsh Bill—that is, the Local Government Byelaws (Wales) Bill—to the Supreme Court should not be regarded as disrespectful or hostile in any sense. It is simply an administrative procedure to clear up the issue of competence and that is it.
I add my words of support to those of the Secretary of State for Dyfed-Powys police and the community of Machynlleth as they live through the awful events of recent weeks. I also warmly congratulate the Secretary of State and his deputy and welcome them to their new role. The Opposition are thrilled that the Prime Minister finally found a Welsh MP to take on the post.
In fairness, the Secretary of State’s predecessor, with whom I did not always agree, has found a new spirit of candour in recent weeks since she left the job and has admitted, for example, that his Government have lost all reputation for competence. On this question of respect, will he continue in this spirit of openness and clear up the question of his attitude to devolution? Will he tell us straightforwardly—does he think that devolution has been good for Wales?
I do not think I can carry on accepting all these welcomes; it is far too much for me—[Interruption.] I am sure they will soon come to an end. I feel strongly that devolution is developing, and that as the Assembly and the Assembly Government mature as institutions they could be very good for Wales indeed. That is why I and my office are determined to work closely with them to assist in doing our best for Wales with them.
Mr Speaker, you will forgive me if I think that the Secretary of State’s view that the Assembly “could” be good for Wales is hardly a ringing endorsement of the devolution settlement that was so decisively supported by the Welsh people. Are not his view that the devolution settlement has “damaged our constitution” and his deputy’s view that it is “constitutional vandalism” what they really think and where they really have disrespect for devolution? Is not the truth that the right hon. Gentleman cannot speak for modern Wales—devolved Wales—but we on this side of the House can and will?
When I used the word “could”, my intention was to point out that under the Labour Assembly Government, coupled with 10 years-plus of Labour Government here in London, Wales has been the poorest part of the United Kingdom. I believe that a lot more could be done to make Wales a happier place to live, and for that purpose it is necessary for us in the Wales Office to work closely with the Welsh Assembly Government. I am willing to do that; I hope that the hon. Gentleman will support me.
4. What steps he is taking to promote enterprise zones in Wales.
5. What steps his Department is taking to increase the level of inward investment into Wales.
I am working with UK Trade and Investment, ministerial colleagues and the Welsh Government to improve levels of inward investment into Wales. In fact, I am meeting the chief executive of UKTI later today.
Does my right hon. Friend agree that the scrapping of the Welsh Development Agency has had a negative effect on inward investment into Wales, as highlighted recently by the Welsh Affairs Committee?
I warmly associate myself and my colleagues with the right hon. Gentleman’s remarks regarding Dyfed-Powys police and all the emergency services which are looking for little April Jones. I also congratulate the Secretary of State and the Under-Secretary on their appointments.
What assessment has the right hon. Gentleman made of the loss to Wales of inward investment since the disappearance of the Welsh Development Agency brand? Who has the last word on inward investment—this Government or the Government in Wales?
It is clear, as the right hon. Gentleman says, that Wales needs a strong brand in order to promote itself around the world. It is clear also that although economic development is devolved to the Assembly Government, it needs to have the leverage that it will get from UKTI. That is why I am encouraging the Welsh Government to work closely with UKTI.
What discussions have the UK Government had with the Welsh Government about the establishment of a dedicated trade promotion agency, either sitting within the Welsh Government or as a private sector vehicle, as recommended by the Welsh Affairs Committee back in February?
Academic research and development and its commercialisation are key ingredients in inward investment. I am heartened that the Secretary of State is meeting UKTI later today. Will he impress on it at that meeting the excellent work that is being undertaken in Bangor, Glyndwr university, Aberystwyth and Swansea? We have a good message to sell and we need UKTI to help us to sell it.
Disability Employment Ltd of Stoke wants to inwardly invest in Wrexham to put disabled workers sacked by this Government back to work. Will the Secretary of State come to Wrexham a week on Friday to meet disabled workers from Remploy to explain to them why the Government will not support that company?
As the hon. Gentleman knows, the Government’s policy on Remploy is to provide supported jobs in mainstream employment. I have had discussions with him previously about the issue. I am entirely happy to have further discussions with him if he requires. As to Friday, I cannot make any commitments as I do not have my diary. [Interruption.]
Order. There are far too many noisy private conversations taking place in the Chamber. Let’s have a bit of order for Karl MᶜCartney.
9. What discussions he has had with ministerial colleagues and others about foreign direct investment in Wales.
I have regular discussions with ministerial colleagues about attracting foreign direct investment to Wales. I was delighted that my right hon. Friend the Deputy Prime Minister, during his visit to Turkey earlier this month, announced that a Turkish steel company is to open a new factory in Cardiff.
The Secretary of State will know that one reason foreign companies do not invest in west Wales is the over-burdensome planning restrictions. Will he use his influence in the Welsh Assembly to sweep away those obstacles?
I am sure that my hon. Friend was pleased to hear that the Welsh Government have designated an enterprise zone in Milford Haven. Planning is indeed extremely important for the development of enterprise zones. It is being streamlined in England and I very much hope that the Welsh Government will follow suit.
I welcome the Secretary of State to his new post—perhaps he is overwhelmed by the welcome he has had thus far. Will he encourage Ministers to look at improving infrastructure in Wales, particularly port infrastructure, on which enterprise zones such as the one in Anglesey rely? He has passed the buck to the Welsh Assembly in the past. Will he now fight within Government so that we have a level playing field with English ports?
The proposed motor sport investment in Ebbw Vale could be an employment game-changer for Blaenau Gwent. Variable investment allowances are being sought by the international development. I urge the Secretary of State to get the Treasury on board now for a fair tax treatment to help deliver the project.
Enhanced capital allowances are an extremely important element of enterprise zones. They have already been granted in the case of the Deeside enterprise zone and we are urging the Welsh Government to make appropriate representations to HM Treasury so that they can be extended to other enterprise zones, such as the one in the hon. Gentleman’s constituency.
8. What assessment he has made of the potential effects of reductions in housing benefit in Wales.
I have regular discussions with my right hon. Friend the Secretary of State for Transport about a range of transport issues that affect Wales, including the importance of investing in rail infrastructure in Wales.
I thank the Secretary of State for his answer and warmly congratulate him on his new position. I also congratulate him and his predecessor on the electrification of the south Wales railway network, which the Labour party failed to achieve in 13 years. Will he join me in calling on the Department for Transport to look at the possibilities for new signalling on the north Wales main line?
14. How much of the £9.4 billion that is going to be spent on rail infrastructure to 2019 will be spent in north Wales?
I am sure that the hon. Gentleman will be pleased to hear that I am already holding discussions with the Welsh Government and local authorities in north Wales with a view to exploring the possibility of electrifying the north Wales railway line—105 miles, and an enormous economic benefit for north Wales.
I welcome the announcement of extra capital expenditure, but will the Secretary of State work with the Welsh Assembly to make sure that Welsh civil engineering companies help in competing for contracts for this work?
(13 years, 1 month ago)
Commons Chamber1. What recent assessment she has made of the level of youth unemployment in Wales; and if she will make a statement.
The latest youth unemployment figures for Wales are disappointing, and I am sure that there is still much for us to do to ensure that the recession does not leave a legacy of workless young people. We will ensure that young unemployed people get the personalised help that they need to find full-time permanent jobs. As part of our reform of the welfare system, we are introducing a number of measures to support young people in finding employment.
Forty-six per cent. of the workers in my constituency, and 45% of the workers in the hon. Gentleman’s constituency, work in the public sector. The Government want to sack up to 25% of those workers: the theory is that they will be employed by the private sector. Given today’s huge increases in unemployment, where are the jobs going to come from for those public sector workers?
The hon. Gentleman will know that this Government inherited the most appalling economic legacy from the Labour party. That party seems to think that there is a bottomless purse to fund public sector jobs, irrespective of the economic state of the country. However, I am sure he will pleased to know that in his constituency there are, according to the latest figures, 273 vacancies, and I suggest that he encourage his constituents to seek those places.
Is my hon. Friend aware of the reports from the Joseph Rowntree Foundation and the Prince’s Trust, which make it clear that the fivefold increase in youth unemployment in Wales is the legacy left to this Government by those on the Labour Benches? Given that context, and bearing in mind the Prince’s Trust’s success in getting 75% of young people into employment, work or training, will he commit the Government to working closely with the Prince’s Trust and involving it closely in the Work programme?
Like my hon. Friend, I commend the work of the Prince’s Trust, and my right hon. Friend the Secretary of State has already had meetings with its representatives. I also remind the House that the Welsh Government have a significant role to play. They are in charge of economic development and are responsible for training, which is key to reducing youth unemployment.
Is cutting the benefits for young people in order to encourage them to search for non-existent jobs not just a cruel mockery of their misfortune?
I think that the hon. Gentleman will find that the Work programme, which this Government brought in, has introduced a level of tailored support for young people and others seeking work. The most important thing for people in the position of those he mentions is to regain work as quickly as possible.
The Minister will be aware of the excellent work on youth training undertaken by Ceredigion Training in my constituency, which equips young people with the skills they need to gain work. Does he therefore share my concern that the Welsh Assembly Government have cut the work-based learning grant to Ceredigion Training, which means fewer apprenticeships and fewer opportunities for young people to get back into work?
As my hon. Friend points out, the issue of economic development is firmly in the hands of the Welsh Assembly Government, as indeed is training. That is entirely a matter for them, but I am bound to say that, given the current economic backdrop, I was surprised that the economic development budget was cut last week.
One of the flagship Government policies that was meant to help the private sector to grow in Wales was the national insurance holiday. That was meant to improve the prospects of 45,000 companies in Wales, but it has actually supported just 300—less than 0.7% of them. Will the Minister tell the Chancellor that it is not working in Wales and that he really needs to pull his finger out and help the 16,000 people who have found themselves on the dole as a result of this Government?
5. What assessment she has made of the effects of the Government’s economic policy on employment levels in Wales.
Through our economic policies, we are committed to delivering strong and sustainable growth balanced across the whole UK, including Wales, rather than concentrated in London and the south-east, as it was under the previous Government. We have made it clear that our top priority remains tackling the deficit while creating the right conditions for the private sector to expand in Wales and create jobs.
I welcome measures taken by the Welsh Government to stimulate the economy in Wales, but the UK Government, at a time of high unemployment, high inflation and rising borrowing, have taken money out of the economy by putting up VAT. Does the Minister agree with the Federation of Small Businesses that it is time to consider a temporary reduction in VAT to stimulate the economy, particularly in sectors such as construction and tourism, to increase employment in Wales?
Those are matters that my right hon. Friend the Chancellor keeps under constant review, but I am surprised that the hon. Gentleman does not appear to regret, as I do, that the Welsh Assembly Government have decided to cut their economic development budget at this difficult time.
Does the Minister accept that enterprise zones could create private sector employment in some of the most needy parts of Wales? Does he not think that the Welsh Government’s approach has been somewhat disjointed at best? Some prosperous parts have become enterprise zones, but some of the most needy parts, such as Barry in my constituency, have not.
May I remind the Minister that he is not responsible for the Welsh Assembly Government, so a pithy reply would be in order?
In all pithiness, I agree with my hon. Friend the Member for Vale of Glamorgan (Alun Cairns) that enterprise zones are key to economic development, and I regret that the Welsh Assembly Government have still not clarified their intentions in that regard.
Lloyds TSB’s Wales business activity index for September reported the sharpest decrease in private sector employment for 27 months. What specific countervailing measures is the Minister arguing for with the Treasury to give the Welsh economy a competitive edge?
6. What recent discussions she has had on promoting economic growth in Wales.
7. If she will assess the effects of changes to the feed-in tariff scheme on the solar industry in Wales.
We will consult on proposed changes to the feed-in tariff scheme, and will produce an impact assessment setting out the effects across the UK in the autumn. My right hon. Friend the Secretary of State and I have spoken to a number of businesses across the UK and understand their concerns in this regard.
Labour’s feed-in tariff created 300 jobs in my constituency. The Tories have increased unemployment in Wrexham in the past six months by 12.6%. Why are they reversing the successful Labour policy that is creating private sector jobs, when they are supposed to be favouring jobs and growth?
I agree with the hon. Gentleman that Sharp is an extremely important employer in his constituency. He will be aware that the feed-in tariff scheme favoured large-scale solar farms, not the domestic installations, but I hope—indeed, I am sure—that he will welcome the announcement last month that Sharp has secured a multi-million-pound contract with Wrexham county borough council to install solar panels in 3,000 local authority homes.
The solar technology industry is just one of the growing green technology industries that could be vital to boosting job creation in Wales. Does the Minister agree that strong Government support for those industries will not put the country out of business, but will stimulate investment in this area and help the Welsh economy to recover?
Order. It is still far too noisy. I know the House will be united in wanting to hear Mr Peter Bone.
(14 years, 5 months ago)
Commons Chamber1. What recent discussions she has had with ministerial colleagues on encouraging the relocation of businesses to Wales.
Before I answer my hon. Friend, I am sure that the House will want to join my right hon. Friend and me in expressing condolences to the family of the right hon. Lord Walker of Worcester, whose death at the age of 78 was announced earlier this morning. A distinguished Member of the other place and a former Secretary of State for Wales, he was a good friend to the Welsh people.
My right hon. Friend the Secretary of State and I are committed to attracting more inward investment to Wales, as we believe it will be a key driver for future economic growth.
First, may I associate myself with what my hon. Friend said about Lord Walker? May I also take the opportunity to welcome my hon. Friend the Under-Secretary and my right hon. Friend the Secretary of State to their new responsibilities and to wish them well in the challenges that lie ahead?
Given the recognition even by the First Minister both in an interview on “The Andrew Marr Show” and during the Welsh Labour conference this year that there are not enough private sector jobs in Wales, does my hon. Friend agree that success depends on driving up private sector jobs in the Principality in the future?
Yes, my hon. Friend is entirely right. The private sector is the key to future growth in Wales, which is why yesterday’s Budget announced a major package of corporation tax reform that is aimed at making Britain—and, of course, Wales—one of the most competitive parts of the G20. In particular, the exemption of up to £5,000 of employer national insurance contributions for each of the first 10 employees, which applies outside London and the south-east, will be of benefit to Wales.
May I associate myself with the condolences expressed to the family of the late Lord Walker and also congratulate the right hon. Lady and the hon. Gentleman on their appointment to their posts?
Yesterday, there was a recognition by the Government of the need to grow economies outside the south-east of England. We have argued long and hard about the overheating of the south-east and its cost to the north of England and Wales. Will the Minister consider the idea of either regionalising corporation tax according to gross value added or devolving it altogether to the Welsh Assembly so that the needs of business can be met and real support provided for it?
I am glad to hear that the hon. Gentleman welcomes the announcements in yesterday’s Budget. The announcement of the exemption of up to £5,000 of national insurance contributions for new employment outside London and the south-east will certainly be of benefit; to that extent, it is a major departure, which I am sure that the entire House will welcome.
2. What recent discussions she has had with the First Minister on the proposed referendum on the law-making powers of the National Assembly for Wales.
My right hon. Friend the Secretary of State has discussed the issue of funding for Wales with the Chief Secretary to the Treasury, and also met the hon. Gentleman last week to discuss the subject. I hope that the hon. Gentleman found that helpful.
I welcome the Minister and the Secretary of State to their posts.
Notwithstanding the review that has been promised after a successful referendum, there is clear and understandable concern about the difficulties that will be faced in Wales because of the necessary measures being taken to reduce the deficit. Will the Minister commit himself to a dialogue with Gerry Holtham and with Treasury colleagues to ensure that Wales is given a fair deal, given its historic levels of underfunding and the severe pressure put on the Welsh Assembly Government?
The Government are committed to ensuring that Wales is properly funded, but it is clearly right for the Treasury’s energies to be concentrated on tackling the deficit left behind by the Labour party. We will certainly give careful consideration to the Holtham commission’s final report, which is to be published this summer. My right hon. Friend the Secretary of State has already met Mr Holtham, and intends to have further meetings with him.
Do the Minister and the Secretary of State recall that last November the Treasury was persuaded to accept an historic reform ensuring that Wales was not disadvantaged under the Barnett formula? Why are they not ensuring that the agreement to protect the Welsh Budget is implemented? On Barnett, the Chancellor promised on 12 February 2010 to
“move on it pretty quickly, as soon as a new Government is elected.”
How on earth can the Secretary of State and the Minister have allowed that pledge to be dumped in the long grass? Instead of capitulating immediately to savage cuts, why do they not stand up and fight for Wales as their Labour predecessors did?
Having read the so-called pledge that the right hon. Gentleman received from the Treasury, I think it fair to say that it was almost meaningless. As he knows, the Holtham commission is due to report substantively next month. My right hon. Friend and I intend to have further discussions with Mr Holtham, and it would be wrong to pre-empt his decision.
4. What discussions she has had with the Secretary of State for Defence on marking Armed Forces day in Wales in 2010.
7. When she next expects to discuss with ministerial colleagues the situation of manufacturing industry in Wales.
My right hon. Friend the Secretary of State has discussed various aspects of the Welsh economy, including manufacturing, with ministerial colleagues and will continue to do so in the coming weeks and months.
Would not jobs and manufacturing in Wales be helped by a decent employment initiative? The future jobs fund has provided 500 jobs in Blaenau Gwent in recent years. It has had a terrific impact in an area with high unemployment of nearly 12%. Will the Minister or the Secretary of State please visit Blaenau Gwent? I invite them to come and find out about employment in my borough.
9. What recent discussions she has had with the Secretary of State for Defence on the proposed defence technical college at St Athan.
10. What her most recent estimate is of the level of public expenditure per capita in Wales in 2010-11.
The latest public expenditure statistical analysis published by the Treasury in April included data up to 2008-09, in which identifiable public expenditure per head on services for Wales was £9,209 while the UK average was £8,206.
My hon. Friend is entirely right. The former Government seemed to regard it as a matter of success that they spent money that the country could not afford. We recognise the need for Wales to be properly funded, but yesterday’s Budget statement provides a firm foundation for good-quality jobs in Wales.
May I join the Secretary of State in paying tribute to Lord Walker? I do so genuinely, but I am led to reflect on the fact that, since 1987, the Conservative party has not had a shadow Secretary of State or Secretary of State who represented a Welsh seat.
On the issue of law-making powers for the Welsh Assembly: after the boundary changes, what is the Secretary of State’s opinion of how many Members the Assembly ought to have?