Ford in Bridgend

David Jones Excerpts

Monday 10th June 2019 Commons Chamber

[Alun Cairns]

I am grateful to the hon. Gentleman for raising those points and for his comments and contributions in the call that we had earlier today. He rightly points out that this is a consultation from Ford, and we will therefore work closely with the unions in challenging the assumptions and statements that Ford has made where we believe them not to be the case.

The UK has a good record of investment in this sector. According to the latest available data, there is a 20% uplift in investment in the automotive sector, which demonstrates that we still remain attractive. We will of course work closely with the Welsh Government on attracting investment to the area, to serve the hon. Gentleman’s constituents and the employees who come from a much wider field than just the community of Bridgend. We remember that there was a Ford plant in Swansea not so long ago and that people travelled to that. The effects therefore stretch much further west, east and north than just the Bridgend site.

The Welsh Government clearly have a responsibility under the devolution settlement for economic developments, but we will continue to work closely with them, as well as with the Department for International Trade, the Department for Business, Energy and Industrial Strategy and the whole might of Whitehall to support the employees by attracting investment to that site.

[Mr David Jones (Clwyd West) (Con)]

The shadow Secretary of State, the hon. Member for Neath (Christina Rees), has sought to blame Brexit for Ford’s decision, but Stuart Rowley, the European President of Ford, has said in terms that it has nothing to do with Brexit. He has also said that

“if Brexit had never happened, would there be a different decision, and the answer to that is no.”

Does my right hon. Friend not agree that it is particularly regrettable that Opposition Members should seek so cynically to exploit the personal tragedy of 1,700 people for such nakedly political purposes?

St David’s Day

David Jones Excerpts

Thursday 28th February 2019 Commons Chamber

[Mr David Jones (Clwyd West) (Con)]

I shall try to adhere to your quite reasonable constraints, Madam Deputy Speaker. It is a great pleasure to participate in this annual debate. As the hon. Member for Gower (Tonia Antoniazzi), whom I congratulate on securing it, said, it gives us an opportunity to celebrate all that is good about Wales. Unlike the hon. Member for Ynys Môn (Albert Owen), whose remarks were rather Eeyore-ish, I want to celebrate what this Government are doing for Wales, and especially for north Wales.

In particular, I would like to pay tribute to the Government for their total commitment to the North Wales growth deal, which was pioneered by George Osborne and has been taken forward by this Chancellor, with an announcement in the last Budget of £120 million- worth of funding. That funding has now been matched by the Welsh Government. This is a huge opportunity for north Wales. It gives us the opportunity to put in place transformational programmes that will benefit not only this generation but the generations to come. It is extremely important that the Government should continue to do what they are doing at the moment—that is, not only listening to local government but working with Members of Parliament. The Government have been working extremely closely with the all-party parliamentary group on Mersey Dee North Wales, which is chaired by the hon. Member for Wrexham (Ian C. Lucas), and listening closely to what north Wales MPs think.

We are now arriving at the moment when the design of the growth deal is coming to fruition, and we should be considering what the transformational projects should be. I believe that infrastructure, particularly digital infrastructure, should be the key to this. That will be the key to our future economic growth. Historically, north Wales has been at a disadvantage in that regard, but that disadvantage will shortly be overturned by 5G, which will bring in gigabit speeds right across the country, including the difficult-to-reach areas of north Wales.

[Tonia Antoniazzi]

I understand the need for technology to advance in Wales. Our geography means that broadband cannot get to those most difficult areas, but has the right hon. Gentleman thought about the impact on people of the electromagnetic fields? I am concerned that we are throwing up masts that are larger than ever before, willy-nilly, without thinking about the people who choose to live in areas with no wi-fi or 5G.

[Mr Jones]

All I can say is that most of my constituents, particularly the farmers, are desperately keen to have access to the internet, which has been patchy so far. Clearly, we have to take health considerations into account, but that is what we rely on experts for, and I am entirely happy to accept the expert evidence. I urge the Government to listen to experts such as the Deeside Business Forum, which is calling for high quality broadband infrastructure to be put in place as part of the North Wales growth deal.

The other issue that I want to raise is essentially a constituency one, but I believe that it has wider implications. It concerns the sea defences at Old Colwyn in my constituency. Two Members have mentioned climate change so far, and there is no doubt that coastal erosion is going to become an increasing problem. In Old Colwyn, we have a significant problem of crumbling sea defences. In February last year, the promenade there was badly affected by high seas. It has now been repaired, with contributions from Welsh Water, but the engineers tell us that the sea defences are now in such a parlous condition that they are in danger of being swept away into the sea. This is more than an issue of the promenade at Old Colwyn, because the sea defences at Old Colwyn also protect the main sewer for Colwyn bay, the main London to Holyhead railway line and the A55 main trunk road to Holyhead. If these sea defences are compromised to the extent that they are destroyed, there would be an immediate and serious environmental incident in the Irish sea, there would be the potential loss of that important rail connection between London and Holyhead, and the A55 would be closed, too.

Everyone agrees that the defences need repair, and the cost is estimated at some £37 million. The problem is who actually pays the cost. I have been in correspondence with the responsible Welsh Government Minister, who has said that, although coastal defences are a devolved competence, the Welsh Government will not contribute to the cost of repair if the defences do not protect houses or dwellings.

Welsh Water has spoken optimistically about a contribution but, of course, it requires others to contribute, too. Network Rail has very few funds available to contribute to the repair. Conwy County Borough Council, the responsible local authority, has no capital-raising powers, so it cannot pay for the repairs, either.

We remember what happened in Dawlish five years ago, when the railway line was swept into the sea, and the chaos it caused on the south-west peninsula. As we speak, the whole north-west Wales economy is in danger of being affected by a serious incident in Old Colwyn. I ask Ministers to give consideration to that and to seek to work with the Welsh Assembly Government, and with all the other interested parties, to try to get these defences repaired.

This problem affects my constituency but, because of climate change and coastal erosion, it will affect many other constituencies right across Wales. I believe this is a matter that requires priority attention, and I hope Ministers will do all they can to try to find a way forward.

--- 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.

Oral Answers to Questions

David Jones Excerpts

Wednesday 27th February 2019 Commons Chamber

[Nigel Adams]

Absolutely. I have a sneaking feeling that rugby might be a running theme throughout these questions. We recognise the importance of REHAU as an employer in the region and on Anglesey, and we will work closely with the hon. Gentleman and with the company to achieve the best possible outcome, most importantly for the important staff who work there.

[Mr David Jones (Clwyd West) (Con)]

There are many excellent international trading companies in north Wales, but in order to continue to thrive they need access to the most modern digital infrastructure. What discussions is my hon. Friend having with the North Wales Economic Ambition Board to ensure that growth deal funding is targeted towards improving digital connectivity?

[Nigel Adams]

My right hon. Friend is indeed a great champion of north Wales. I recently met that board to discuss its progress in finalising its proposition to utilise the £120 million that we and the Welsh Government each allocated to the deal. Digital infra- structure is currently an underpinning project, but we have set the region a challenge to go even further and to be even more ambitious about what the project can achieve for the region by working closely with a range of partners, including the private sector.

Oral Answers to Questions

David Jones Excerpts

Wednesday 23rd January 2019 Commons Chamber

[Alun Cairns]

I am grateful to the hon. Gentleman for his question, in which he highlights some of the most recent data. The complete data on the period since European structural funding was introduced show that more than £4 billion has been spent over 17 years, but I am sure he agrees that we have not always got the best value out of that investment—there are several audit reports to that effect. Of course, any quantum of the UK shared prosperity fund is a matter reserved for my right hon. Friend the Chancellor during the comprehensive spending review.

[Mr David Jones (Clwyd West) (Con)]

Given the not unreasonable concern in north Wales about Hitachi’s decision to suspend development of Wylfa B, is my right hon. Friend willing to meet representatives of the North Wales Economic Ambition Board to discuss ways in which the shared prosperity fund may be used to support the regional economy?

[Alun Cairns]

I pay tribute to my right hon. Friend’s work in securing Hitachi’s interest in Wylfa when RWE and E.ON withdrew their interest from the project. Although last week’s decision is disappointing, our focus is on maintaining momentum towards the development consent. Of course I am happy to meet the board and my right hon. Friend to discuss how we can best use influences such as the shared prosperity fund and the north Wales growth deal. We will happily keep an open mind, but these matters are project-led, and the strength of resource depends on the quality of the project.

Welsh Affairs

David Jones Excerpts

Monday 19th March 2018 Commons Chamber

[Alun Cairns]

The hon. Gentleman raises an important point. Like me, he highlighted Halen Môn, which has gained significantly from its geographical indicator brand. He will recognise that these issues are subject to negotiations. I expect our discussions with the European Union to take place on a positive footing, but of course we cannot pre-empt anything.

[Mr David Jones (Clwyd West) (Con)]

Does my right hon. Friend agree that the European Union has an equal interest in ensuring that its products receive similar protection? For example, the United Kingdom is one of the biggest markets in the world for champagne. I am sure that the new Conwy vineyards in Mochdre would be delighted to label their excellent products as champagne, but I think they would be entirely happy to see their products equally protected.

[Alun Cairns]

My right hon. Friend is very sharp on these matters and recognises their importance, as I am sure do many of the champagne drinkers on the other side of the Chamber. A vineyard in my constituency was caught out by the geographical indicators when it labelled its sparkling wine “llampagne”. Unfortunately, the European Commission threatened to take action and the company rebranded its product. My right hon. Friend underlines my point that we hope that these elements of the negotiation will take place on a positive basis as we leave the European Union and consider the new opportunities that that will provide.

On another topical issue, I want to reassure Members that work continues between my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy, my office and the Welsh Government on the Swansea Bay tidal lagoon. As the Business Secretary said last week, the Swansea proposal is more than twice as expensive as Hinkley nuclear power station, so we will continue discussions with the Welsh Government to look at the affordability of the case and do everything possible to make it a reality. However, the challenges are quite obvious.

--- Later in debate ---

[Mr David Jones (Clwyd West) (Con)]

May I say how pleased I am that the traditional St David’s day debate is taking place again this year, albeit on the wrong side of St Patrick’s day? Like the hon. Member for Neath (Christina Rees), I was very disappointed when the beast from the east paid its visit. Of course, we had a further visit this weekend from its little cousin, and I was a bit concerned that we would not be able to have the debate again today, but here we are. It is important that hon. Members on both sides of the House have the opportunity to debate Welsh affairs.

I would like to start by saying how much I, in north Wales, appreciate, contrary to what the hon. Lady said, the Government’s investment in Wales. I was astounded to hear her complaining about a lack of investment. We have had city deals in both Cardiff and Swansea, which have been welcomed on both sides of the House and by the Welsh Government. As the right hon. Member for Delyn (David Hanson) pointed out, we expect a north Wales growth deal shortly, for which I personally thank George Osborne. Like the right hon. Gentleman, I am impatient to see exactly what the shape of that growth deal will be. Councils across north Wales, the Mersey Dee Alliance and businesses are all working very hard to shape it, and I very much hope that later this year we will see some flesh on the bone.

[Jonathan Edwards]

I do not think that the right hon. Gentleman can get away with trying to portray the Swansea Bay city deal as some sort of UK Government giveaway to the Welsh economy, because 90% of the money comes from the Welsh public and private sectors.

[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.

[Mark Tami]

Further to that point, the Countess of Chester hospital was built to serve Chester and Deeside, yet I cannot have any view about it, despite the fact that a large number of people from Wales will attend that hospital.

[Mr Jones]

That, too, is one of the paradoxes of devolution. Many hon. Members find their constituencies served by hospitals on the Welsh side of the border and, because of devolution, they are unable to make representations on behalf of their constituents.

[David T. C. Davies]

My right hon. Friend makes the point very well indeed. A lot of people living in the Forest of Dean are served by the Welsh NHS and are taking legal action because they are desperate to be served by Jeremy Hunt’s Conservative-run NHS in England. That is absolutely true. They have no say over what Labour Ministers are doing, despite being inflicted with the Welsh Labour-run NHS.

[Mr Jones]

I do believe that my hon. Friend, in his own manner, is agreeing with what I have just said, but I am straying from the subject I want to discuss—improving the synergy between north Wales and the north-west of England.

One of the most important areas in which that can be achieved is transport, specifically rail transport. It is a sad fact that the rail network in north Wales is, frankly, not up to dealing with the employment conditions that prevail on both sides of the border. We have previously debated the Wrexham to Bidston railway line in the House. That line is incredibly important to the people of north-east Wales, and its importance is growing, as it now links the two enterprise zones at Deeside and Wirral Waters. As north Wales Members will know, the sad fact is that if someone wants to travel from Liverpool to Wrexham, they have to get off the train at Bidston. That is an incredible inconvenience—actually, it is more than an inconvenience, as it is holding back the north Wales and north-west economy—so I was very pleased when we recently had the launch in this House of the “West and Wales Strategic Rail Prospectus”, which was attended by the Under-Secretary of State for Wales, my hon. Friend the Member for Pudsey (Stuart Andrew). I was also pleased that it was attended by the Secretary of State for Transport.

It is important that we aim for a much more closely integrated transport system in that part of the world. I believe that the prospectus that was put forward at the meeting earlier this month in the House lays out a very sensible blueprint for travel in north Wales. Furthermore, it provides connectivity to the new HS2 hub that will be constructed at Crewe. My plea to my right hon. Friend the Secretary of State is that he works very hard with the Secretary of State for Transport on pursuing the vision of the prospectus and achieving something that will provide for the sort of rail transport that we require in north Wales.

I wish to touch on two other issues, one of which has been raised by the hon. Member for Neath: the question of the Swansea tidal lagoon. I fully accept my right hon. Friend the Secretary of State’s point about the importance of achieving value for money in a project of this scale. I also appreciate that it will be an expensive development, but it is fair to say that the technology that could be developed if the lagoon were constructed would give the United Kingdom, and Wales in particular, a world lead. We need an answer fairly soon on when the Government will respond to the recommendations of the Hendry report. The lagoon not only would provide a hugely important facility in terms of the generation of clean energy in Swansea, but would be a pathfinder for similar developments right around the western coast of Britain, not least in my constituency and that of the hon. Member for Vale of Clwyd (Chris Ruane), where a proposal for a lagoon with five times the generating capacity of Swansea is being considered. It would be possible to work this up into something that would be genuinely valuable for the United Kingdom, and I really hope that the Government will not miss this opportunity.

[Liz Saville Roberts]

Does the right hon. Gentleman concur not only that Wales needs to be an exporting nation in the future and that energy gives us that potential, but that with tidal lagoons, we are looking at a situation in which our energy security could be that much safer?

[Mr Jones]

Yes, I would agree. In fact, the proposals from the developers of the Swansea lagoon are for a chain of lagoons from Lancashire right through to Somerset. That would provide virtually 24-hour-a-day generation so, again, it would be an important development for energy security. There would be other benefits too, such as for sea defences on vulnerable coasts such as that of north Wales. I again plead with my right hon. Friend to consider carefully the recommendations of the Hendry commission and to ensure that a response is made reasonably soon.

In connection with that, I also make the case, as I am sure that the hon. Member for Ynys Môn (Albert Owen) will, for the consideration of Wylfa Newydd, which would be a hugely important element of the north Wales economy. We should also listen to suggestions for the development of small modular reactors in Trawsfynydd which, again, I suggest would represent a hugely beneficial element of the north Wales economy. 

I am conscious of your strictures about time, Madam Deputy Speaker. Despite the somewhat downbeat assessment of the Welsh economy that we heard from the hon. Member for Neath, I, as a north Wales Member, am very optimistic about the future. I think that the Government are investing strongly in the north Wales economy and I am very proud to be a Conservative Member of Parliament.

--- Later in debate ---

[Patrick Grady]

It is important that efforts are made by the devolved Assemblies wherever possible. I have seen figures from Dyfed-Powys police showing that were policing to be fully devolved to Wales and funded per head of population, Welsh forces would be £25 million better off. We welcome the UK Government’s recent decision finally to allow the Scottish integrated police service to reclaim the VAT it is owed. We are looking for a refund and hope that similar progress can be made in Wales. That demonstrates the strength of devolution. I should also pay tribute to my friends in Plaid for the influence that they are exerting on the Welsh Administration. I hope that one day they will exert even more influence by taking full control.

As with so much, however, all that is overshadowed by Brexit. The Secretary of State has championed the Welsh economy and its great trading relationship with the EU, but the Government’s own analysis shows that Wales will be one of the parts of the UK that bear the brunt of Brexit. If we crash out on World Trade Organisation terms, we are looking at a contraction of almost 10% in the Welsh economy, meaning huge cuts in wages and potentially thousands of jobs lost. Some 200,000 Welsh jobs are based on trade within the single market and the customs union, and Wales is a net beneficiary of EU funding by around £245 million, or £79 per head. All that is at risk from an extreme Tory Brexit, and the only solution that can guarantee frictionless trade is continued membership of “the” single market and “the” customs union.

Of course, we are having this debate on the day when the House of Peers is debating clause 11 of the EU withdrawal Bill—the great power grab of the great repeal Bill. The Scottish and Welsh Governments have a unity of purpose at present and are doing a fantastic job of defending not only Scottish and Welsh interests but the very foundation of the devolution settlement from the crude attack being perpetrated by the Tories here at Westminster. We have seen the Cabinet Office list outlining 24 areas of devolved competence in Wales that it wants to snatch back, which is why Plaid was right to introduce the continuity Bill in the National Assembly for Wales as a way to safeguard the devolution settlement from the Tories’ power grab.

The Tory Government here always speak of the will of the people, but as we heard from the Labour Front- Bench spokesperson, the people of Wales have endorsed the devolution settlement not once but twice, in 1997 and again in 2011, so they cannot use the UK Brexit referendum as an opportunity to overrule the decisions people made in Wales to have power devolved to their Assembly. There is still time for the UK Government to reach an agreement with the Welsh and Scottish Governments on the question of clause 11 and the devolution of powers post Brexit—both those Governments have indicated their desire to do so—but we are absolutely clear that UK-wide frameworks to deal with the post- Brexit scenario have to be arrived at on the basis of the consent of the devolved Assemblies, not simply consultation.

As has been noted, this debate was originally scheduled for St David’s day. In Scotland, St Andrew’s day is recognised as a public holiday, because the Scottish Government had the power to make that change. That is an anomaly in Wales that ought to be put right, both by introducing a public holiday and by giving the Welsh Assembly the power to make that determination.

[Mr David Jones]

Will the hon. Gentleman accept it from me that very few Welsh people would have appreciated a public holiday on St David’s day this year, given the weather?

[Patrick Grady]

Indeed, although most of them got an involuntary day off in any event as a result of the snow.

I look forward to other contributions to the debate. I know that many other Members want to take this opportunity to celebrate the important contribution that Wales makes to the economy, society and culture of these islands. I am reminded of the motto of my city: let Glasgow flourish. The same ought to apply throughout the rest of this debate and in the approach of this House, the Welsh Assembly, the Government and everyone with the interests of Wales at heart: let Wales flourish.

Autumn Budget as it Relates to Wales (Morning sitting)

David Jones Excerpts

Wednesday 7th February 2018 General Committees

[Mr David Jones (Clwyd West) (Con)]

Does my right hon. Friend appreciate that the Swansea tidal lagoon is supported not only in the Swansea area but right across Wales? It is an advanced technology that could be of enormous benefit to the British economy, and it would also be welcomed in north Wales where a large tidal lagoon has been proposed for the coast in my constituency and that of the hon. Member for Vale of Clwyd. Will my right hon. Friend speak in very strong terms to his colleagues in BEIS about this matter?

[Alun Cairns]

Out of courtesy, I will respond to my right hon. Friend in the language in which he raised the issue. Of course we would like this project to happen and I recognise the enthusiasm for it, but I am sure that he would not want any project to go ahead that does not prove to be value for money. Many claims have been made about the technology and the export potential, and about the regeneration of the economy that the tidal lagoon would provide, but I am sure he would want the Government to scrutinise those claims appropriately and establish whether the project is genuinely value for money. We must not forget that our constituents will be asked to support it, and if they support this project over other projects that might be better value for money, there is a risk of higher energy costs.

[Mr David Jones]

I understand fully that the benefits or otherwise of the project must be scrutinised, but how long is that scrutiny likely to take?

[Alun Cairns]

My right hon. Friend will recognise that this is a dynamic environment and costs in the energy industry are changing at various stages. Indeed, there has been a significant change in energy costs since this project was first proposed.

--- Later in debate ---

[Christina Rees]

I really cannot add to that—my hon. Friend put it so well and I totally agree. That was my opinion on Budget day. I wonder if I could be persuaded differently by Conservative Members by the end of this Welsh Grand Committee today. The way things are going so far, I do not think I will.

Let me demonstrate the appalling attitude to Wales shown by the UK Tory Government through a budget that embodies this disdain. More than half of the new funding announced for Wales will have to be paid back to the UK Tory Government. Two thirds of the additional capital funding is made up of a form of funding called financial transactions, which must be repaid to the Treasury. There are also restrictions on what it can be spent on. The Welsh budget has experienced year on year cuts as a result of the UK Tory Government’s ongoing ideological programme of austerity. There is an ongoing battle between the social democratic values of the Welsh Labour Government versus the neoliberal ideology of the UK Tory Government.

Even with these small increases in funding, our budget will still be 5% lower in real terms in 2019-20 than it was in 2010-11, which is equivalent to having £900 million less to spend on public services in Wales. If we exclude the financial transactions funding, which we will have to pay back, our budget will be 7% lower, or equivalent to £1.1 billion less by 2019-20.

Wales has been let down elsewhere too. The Welsh Labour Government have repeatedly called on the UK Tory Government to fully fund a pay rise for all public sector workers. The UK Tory budget was a missed opportunity to do just that. The Welsh Labour Government have called on the UK Tory Government to invest in key infrastructure projects in Wales, including the Swansea bay tidal lagoon, which has been mentioned before, and rail, but the Chancellor once again turned his back on Wales. The only feedback we have had on the tidal lagoon is the vague point about value for money that was trundled out again last week and today, despite the UK Tory Government’s independent Hendry review recommending its support as a no-regrets decision. The Secretary of State has told us that Welsh Labour Government and UK Tory Government officials met to discuss the tidal lagoon, but what about the UK Tory Government decision-makers? When are they going to front up and put up? The Secretary of State knows that the Welsh Labour Government have pledged millions to support the Swansea bay tidal lagoon.

The UK Tory Government have cancelled the electrification of the main line from Cardiff to Swansea, as mentioned by my hon. Friend the Member for Caerphilly (Wayne David). None of their explanations for doing so make economic or environmental sense. If the UK Tory Government had kept their promise to electrify the main line from Cardiff to Swansea, we would not have needed bimodal trains, which are heavier because they need to carry both sources of power, making each journey more expensive. The heavier trains increase wear and tear on the track, the buffet car has been taken out to make 130 more seats, and so on.

There has been no devolution of air passenger duty to Wales. Last week at Wales questions, the Secretary of State failed once again to answer a question put by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) about devolving airport taxes. Building on the excellent work of Visit Wales, the Welsh Labour Government would be able to use the control of air passenger duty to support and promote Welsh tourism. Anyone who visits Wales will agree that it is spectacularly beautiful.

If I were being magnanimous––I am a very gentle, understanding person––I could mention something that the Tories did include for Wales in their Budget. They announced that the Severn bridge tolls will be scrapped by the end of next year, following an immediate cut to various charges. What they did not tell us is that the drop in toll prices is merely down to the removal of VAT, because legislation, rather than political priorities, dictates that VAT cannot be charged once the bridges have been brought back into public ownership. Who is to say that the Tories will not break yet another promise and fail to remove the tolls, even though it is difficult to do a U-turn while driving on the Severn bridges?

We urge the UK Tory Government to pause and fix universal credit, which is creating appalling poverty, debt and desperation for families across Wales. They choose not to, instead tinkering around the edges of a broken system. We ask the UK Tory Government once again to join Welsh Labour and support business, infrastructure and innovation, for on each and every one of these, Wales has been let down once again. On the crucial issue of the north Wales growth deal, after sustained pressure from Welsh Labour MPs and the Welsh Labour Government, the Chancellor indicated that discussions would begin to take the project forward. I am pleased to hear that that is going to happen today.

[Mr David Jones]

I have hesitated to intervene, but the hon. Lady is being less than fair. Was not the pressure on the Chancellor exerted by the all-party parliamentary group on Mersey Dee North Wales, which is chaired by her colleague, the hon. Member for Wrexham (Ian C. Lucas)? That is a cross-party group and it was that group that applied the pressure.

[Christina Rees]

That group deserves some credit and I fully respect that the group has been moving things forward.

--- Later in debate ---

[Mr David Jones]

Mae’n bleser eich gweld chi yn y Gadair, Mr Owen. Mae’n dda hefyd bod Aelodau Seneddol yn cael y cyfle i siarad yn yr iaith Gymraeg yn San Steffan am y tro cyntaf, os dymunant wneud hynny. Yn siarad yn bersonnol, yn anffodus dydw i ddim yn teimlo’n ddigon cyfforddus yn yr iaith Gymraeg i wneud araeth drwy gyfrwng yr iaith, ond mae’n dda cael clywed cymaint o bobl yn siarad yr iaith bore yma.

(Translation) It is a pleasure to see you in the Chair, Mr Owen, and it is good that Members of Parliament have the opportunity to speak the Welsh language in Westminster for the first time, if they so choose. Speaking personally, unfortunately I do not feel sufficiently comfortable in the Welsh language to make a speech, but it is good to see so many people speaking Welsh here this morning.

It is good to have the opportunity, after a short interval, to debate the impact of the Budget statement on Wales. For constituency reasons, I wish to focus on the impact of the Budget on north Wales, because I believe that two particular announcements in the Budget and the Red Book were of considerable importance. We must consider north Wales economically as part of the greater north-western economic region. Within the boundaries of north Wales, we have important economic elements. Wylfa nuclear power station will soon, we hope, be developed as Wylfa Newydd. We have two great universities at Wrexham Glyndŵr and Bangor, and we have important manufacturing hubs at places such as Abergele, St Asaph, Wrexham, and, of course, Deeside, which is one of the most important manufacturing areas in the United Kingdom.

Those economic areas are hard by a border that is political and administrative, but in reality completely invisible to those who live around it. The northern powerhouse initiative of the former Chancellor, George Osborne, is also of great importance to the people of north Wales. It was therefore good that, in his 2016 Budget, he announced the north Wales growth deal, which was intended to provide for north Wales access to some of the benefits of the northern powerhouse. We also saw under him the reopening of the Halton curve, and although that stretch of railway line is just one and a half miles long, its economic importance to north Wales cannot be overestimated. It will link north Wales with Merseyside and, importantly, with John Lennon airport. I am not at all embarrassed to give due credit to George Osborne, who I believe did a great amount for the north Wales economy.

[Geraint Davies]

Airbus is massively important for north Wales, Wales and the UK. Its chief executive has said that it is crucial that we have a soft Brexit as opposed to a hard Brexit, and that we remain part of the customs union, which George Osborne would agree with. Does the right hon. Gentleman agree with him on that as well?

[Mr Jones]

I recognise the importance of Airbus not just to the regional economy of north Wales, but to the whole United Kingdom economy. It is the biggest manufacturing facility. The hon. Gentleman is entitled to his views on Brexit. I happen not to share them, and I believe that Airbus has a great future after Great Britain has left the European Union.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The right hon. Gentleman talked about an invisible border between England and Wales, and its importance to the regional economy. That is what we have seen in south Wales between Cardiff and Bristol and elsewhere. Currently, we have an invisible border between Wales and the Republic of Ireland. Does he agree that, if a hard border is introduced with customs checks and so on, it will be extremely detrimental to the economy in both north and south Wales? Ferry services have already been opened between Spain and Cork, specifically to circumvent the UK in the event of Brexit.

[Mr Jones]

The hon. Gentleman is aware of the Government’s position on the border with Ireland, and I will not be tempted into discussing Brexit when we are here to debate the Budget. This is an issue of importance to my constituency and north Wales, so I hope he will forgive me if I am not tempted to debate the pros and cons of Brexit on this occasion.

I was pleased to see the Chancellor announce in the Budget that he was pushing forward with the north Wales growth deal. That will be greatly welcomed by Members of all parties, not least by the all-party parliamentary group on Mersey Dee North Wales, which is very ably chaired by the hon. Member for Wrexham, and on which you are a very active participant, Mr Owen. The APPG has done a great amount to focus the attention not just of Westminster but the Welsh Assembly Government in Cardiff on the unique circumstances of north Wales and the reason why north Wales and the north-west of England need to be more closely bound together economically. That is why the two Administrations should work closely together.

I was very pleased to see that announcement in the Budget—it shows that the Chancellor is taking forward the good work of his predecessor. I must also pay tribute to the current responsible Welsh Minister, Ken Skates, who has been a breath of fresh air. Let me be blunt. There was a strong feeling in north Wales that his predecessor did not understand the needs of the region and, I am bound to say, cared little about it. Ken Skates has taken to his task extremely well. He works well with the United Kingdom Government. He is not tribal and, for that reason, is indeed a breath of fresh air.

[David T. C. Davies]

May I take the unusual step of also praising Ken Skates?

[David T. C. Davies]

I very much hope that is not held against him but I put on record that he is a man of principle.

[Mr Jones]

I agree wholeheartedly. He has been extremely enthusiastic and held meetings with Members of Parliament. I am very hopeful that, as long as he is the responsible Minister, we will see some advance in the north Wales growth deal. I look forward to progress in the months ahead. As deputy chairman of the all-party group, I can say that it will work closely with both the Wales Office and the Welsh Assembly Government.

Another announcement made in the Budget Red Book was on transport infrastructure in north Wales. The truth is that we are over-reliant on road transport in north Wales. The roads are becoming increasingly crowded and are in dire need of upgrade. Frankly, they are being used because the rail infrastructure in north Wales is so poor, having been neglected by successive Administrations over many years, and needs to be upgraded.

I was pleased to see the announcement of the long-overdue upgrade of the north Wales coastline, and the announcement that the Department for Transport is providing funds for examining the business case for the upgrade of the Wrexham to Bidston line. North Wales MPs will fully understand the importance of that infrastructure—the railway line links the two new enterprise zones at Deeside and Wirral Waters.

The problem with the line, as you will know, Mr Owen, is that it is not continuous all the way to Liverpool. To get to Liverpool from Wrexham or anywhere south of Bidston, it is necessary to change trains at Bidston. The long-term ambition of Merseyrail is electrification of the whole line, of which every north Wales MP would approve. The importance of that infrastructure is that, if we are to obtain the maximum synergy between the two enterprise zones at Wirral Waters and Deeside, we need to ensure that transport links are good and that they improve. There are about 1 million cross-border commutes in that part of north Wales every month. People are divided by a political border that, at the moment, fragments transport, planning and service provision, and acts as a drag on economic growth.

The local authorities and businesses in north Wales have started to address the issue. They have established the Mersey Dee Alliance, which does a tremendous amount of work in focusing attention on the needs of this important part of the national economy and ensuring that Governments pay due attention to them. I was pleased to be present at the meeting a few weeks ago between members of the Mersey Dee Alliance, the Growth Track 360 initiative and the Secretary of State for Transport, when they pressed the case for the improvement of that piece of infrastructure. It is clear that the Secretary of State for Transport listened carefully to what they had to say, because that meeting was followed very shortly by the Red Book announcement that there would be a concentration on the upgrade of the line.

I suggest to north Wales colleagues that they continue to support the work of the Mersey Dee Alliance and the Growth Track 360 initiative. We have the potential to double the size of the north Wales economy by 2015—the ambition of the alliance is to double it from £25 billion to £50 billion. That can be done if there is close cross-party working in this place, and close working between the United Kingdom Government and the Welsh Assembly Government. We are in something of a sweet spot. We have people in both Administrations who get it and who understand the needs of north Wales. The fact that the United Kingdom Government get it is underlined by the provision of the upgrades, transport improvements and studies in the Budget. We in north Wales have a lot to look forward to and I welcome those Budget announcements.