Oral Answers to Questions
David T C Davies Excerpts(1 year, 5 months ago)
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Chris Elmore (Ogmore) (Lab)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with Cabinet colleagues on a range of issues. As a result of Putin’s illegal invasion of Ukraine, households in Wales have seen their energy bills increase, which is why the Government have provided support totalling £94 billion, or £3,300 per household, to help with higher bills.
Chris Evans
A constituent of mine who is a mother and a carer for her disabled son wrote to me recently. She told me that she is watching every penny and is deeply worried about how she will afford energy in the coming winter. She is one of the nine in 10 families with a disabled child who the Family Fund says are struggling to afford simple household bills. What direct advice does the Secretary of State have for my constituent and thousands like her who are in a hopeless situation?
David T. C. Davies
There are indeed many people suffering at the moment, and I feel very sorry for the hon. Gentleman’s constituent. The Government have supported households with the rising cost of living by maintaining the energy price guarantee at £2,500 from April to June 2023, saving households an additional £160. Over the winter, the Government were paying on average about half of people’s energy bills. For those living in households where someone has a disability, there has been an extra payment of £150.
Chris Elmore
The most recent statistics published by the Welsh Government show that almost a quarter of those in the private rented sector in Wales are living in fuel poverty, compared with only 13% of those who own their homes. Will the Secretary of State set out what additional support those who live in the private rented sector will get from the Government? The reality is that their rents and fuel bills are going up, and the Government seem to be sitting idle and doing nothing to support these people.
David T. C. Davies
The Government are certainly not sitting idly around and not supporting people. The Government do not differentiate between people in private and people in rented accommodation; we have stipulated that those who are the least well off will get the most support. That is why we have ensured that pensions have gone up in line with inflation, the minimum wage has gone up in line with inflation, and those living on benefits have seen their benefits rise in line with inflation.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
As fuel poverty runs rampant and families right across Wales are struggling, does the Secretary of State not realise how appalling it looks that Shell is making £61,000 a minute? When will his Government get a grip, close the loopholes worth billions and extend the windfall tax?
David T. C. Davies
The hon. Gentleman should be aware that the Government have extended the windfall tax and are charging very high levels of tax—indeed, about three times the usual level—on companies taking oil out of the North sea. It is extraordinary that those who call for a windfall tax on energy companies do not recognise that we are already levying it and do not want to support the Government in allowing more oil and gas to be exploited from the North sea, which will enable us to raise even more in taxation.
Gerald Jones
Tory Ministers seem to think that the energy crisis is all over. I am not sure when the Secretary of State last struggled to pay an energy bill, but bills are still almost double what they were before the crisis began, and the Tory Government have scrapped vital support. Does the Secretary of State agree that the way to get energy bills down for good is to back Labour’s policy to retrofit 19 million homes and reach 100% clean power by 2030?
David T. C. Davies
I have no idea who would be paying for the hon. Gentleman’s proposals—no doubt they are among the many things that will be paid for using the same tax about half a dozen times. He will no doubt be pleased that today inflation is down yet again, and the Government are well on course for achieving their target of cutting inflation by half as well as growing the economy.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
None the less, food inflation remains above 19%, and it hits the poorest hardest, with the Trussell Trust warning that the past year saw a record 185,000 food parcels provided in Wales. Meanwhile, supermarkets continue to make record-breaking profits—many speak of a greedflation crisis. European Governments have negotiated with supermarkets to cap food prices. Why will the Secretary of State’s Government not do that, too?
David T. C. Davies
I have already mentioned some of the help and support that the Government have given to the least well-off. I remind the right hon. Lady that, in addition to pensions and benefits rising in line with inflation, there are payments of £900 to those on benefits, £300 to pensioners and £150 to those in households with disability. Quite frankly, if she is seriously worried about food inflation, she should be talking to her colleagues in the Welsh Labour Government who are propping up the Welsh Labour Government about their ridiculous proposals to ban meal deals, which would make meals even more expensive for people in Wales.
Liz Saville Roberts
It is a good job somebody is protecting Wales, because Tory Brexit has served Wales badly. The European Union (Withdrawal) Act 2018 and the United Kingdom Internal Market Act 2020 have grabbed the Senedd’s powers, and paltry post-Brexit funding is robbing Wales of millions. Enough is enough. The House of Lords recently passed Lord Wigley’s Government of Wales (Devolved Powers) Bill to prevent any change to the Senedd’s powers without a two-thirds vote majority from Members of the Senedd. Will the Secretary of State support Plaid Cymru’s Bill and ensure time for debate, or is he happy to see the people of Wales lose the powers for which they have voted time and again?
David T. C. Davies
Far from taking powers away from the Welsh Government, the Conservative Government have, on a number of occasions, actually increased powers to the Welsh Government. By leaving the European Union, we have repatriated powers from Brussels, where we were being governed by an unelectable elite, and brought them back to both Westminster and Cardiff. If the right hon. Lady wants to stop money being wasted, she should have a word with her colleagues in Plaid Cymru, who are propping up the Welsh Labour Government as they waste hundreds of millions of pounds in the Betsi Cadwaladr health service, hundreds of millions of pounds on an airport with no planes, and over £100 million on plans for a relief road that will never get built.
Liz Twist (Blaydon) (Lab)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with Cabinet colleagues on a range of issues. Interest rates are rising across the world as countries manage rising prices due to the pandemic and Putin’s illegal invasion of Ukraine. However, I am very pleased to see that the UK average two and five-year fixed mortgage rates have declined in recent months.
Liz Twist
The Chancellor failed to bring in a proper windfall tax in the Budget in March. Does the Secretary of State agree that there are still huge holes in that levy, which mean that billions of pounds that could be used to help Welsh households with the cost of living are being ignored?
David T. C. Davies
The Chancellor and this Conservative Government have brought in windfall taxes on energy companies taking oil and gas out of the North sea. Energy companies are paying around three times more in taxation than other companies. I hope the hon. Lady will be supportive of the companies that want to take more oil and gas out of the North sea, so we can raise even more in taxation to support the least well-off in the United Kingdom.
Jo Stevens (Cardiff Central) (Lab)
Since the Secretary of State’s Government’s mini-budget, 43,000 Welsh households have paid an extra £20.3 million in mortgage payments. That is a £20 million Tory mortgage premium in just seven months. His Government’s economic recklessness continues to cause misery for people across Wales, so will he take the opportunity to apologise to them?
David T. C. Davies
The economic policies being pursued by this Government are to bring inflation down, as the news today demonstrates. I very much hope the hon. Lady will want to celebrate the fact that inflation is now falling. This United Kingdom Government are committed to seeing inflation halved. The policies of her party would push inflation through the roof and push us into another financial catastrophe and crisis of the sort we saw the last time it left office.
Chris Clarkson (Heywood and Middleton) (Con)
Bob Blackman (Harrow East) (Con)
The Secretary of State for Wales (David T. C. Davies)
The Government have established Great British Nuclear to drive forward the UK’s new nuclear programme. GBN will be working with the Government on access to potential sites for new nuclear projects and I will continue to build on the clear cross-party support there is to promote Wales as the destination of choice for one of the first projects.
Chris Clarkson
My hon. Friend the Member for Ynys Môn (Virginia Crosbie) has been subtly, almost subliminally, making the case for new nuclear in her constituency, but of course with the advent of small modular reactors there is the opportunity for communities across Wales to benefit from clean nuclear energy. What discussions has the Secretary of State had with ministerial colleagues in the Department for Energy Security and Net Zero and the Welsh Government to make sure Wales is primed to take advantage?
David T. C. Davies
I had a meeting with the Minister for Nuclear, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), and yesterday I met the interim chair of GBN, Simon Bowen. We had a very interesting and informative discussion on this emerging technology, which I think is very exciting and offers huge potential for Wales.
Bob Blackman
I thank my right hon. Friend for his answers thus far. Clearly, Wales has a bright future as part of the new nuclear capability across the United Kingdom. What further measures will he take, for example on fusion, as well as on nuclear energy, which has already been provided?
David T. C. Davies
The Government have set out support for investigating nuclear fusion, but I fear that others might be better qualified to provide the detail on that. What I can say to my hon. Friend is that in all the meetings I have had with various stakeholders, I have made the case for Wales to be at the forefront of everyone’s minds as a place where we can have a new reactor or SMR technology. And of course, I have been encouraged very much by my hon. Friend the Member for Ynys Môn, who has been an absolute champion for nuclear technology—not for nothing is she known across Wales as the atomic kitten.
Tonia Antoniazzi (Gower) (Lab)
The Secretary of State talks the talk on nuclear, but forgets that the Tories previously pulled the plug on new nuclear in Wales. They have boasted about GB Nuclear, but two years on, nothing at all has happened. Is this not more of the same broken promises from a tired Tory Government who have run out of steam?
David T. C. Davies
It would be tempting, though time will prevent me, to draw attention to the poor record of the last Labour Government on nuclear energy. The fact of the matter is that we are driving forward a new nuclear reactor at Hinkley. We are looking to bring forward a final investment decision on a new nuclear reactor in the next term. The establishment of Great British Nuclear fully demonstrates our commitment to nuclear technology.
Dave Doogan (Angus) (SNP)
In the Secretary of State’s conversations about nuclear with the Welsh, I wonder if he has discussed the pie-in-the-sky nature of small nuclear reactors, the lack of a cogent plan for nuclear waste and the unenviable unit cost in comparison to renewables. Has he indicated that he has a better plan that is not nuclear?
David T. C. Davies
The fact of the matter is that, when one considers all the costs of renewable energy, nuclear comes out very well, not least because it is not possible to predict when exactly the sun will shine or the wind will blow. That is why nuclear has a role to play in our march towards net zero by 2050.
Selaine Saxby (North Devon) (Con)
Dr Luke Evans (Bosworth) (Con)
The Secretary of State for Wales (David T. C. Davies)
Healthcare services are devolved to the Welsh Labour Government. However, it is deeply worrying that only last week the Welsh Government revealed that their target for people waiting more than two years for treatment has once again been missed, with over 31,000 people waiting in pain over two years for their treatment. In England, which has virtually 20 times the population, the equivalent figure is virtually zero.
Dr Evans
One of the most important things for improving healthcare systems is the ability to compare data. There is a problem, though, if different legislators use different metrics. Will the UK Government commit to an agreement between the devolved nations to share the same data, so that comparisons can be made adequately?
David T. C. Davies
My hon. Friend makes a very good point: we do need comparable data so that we can see exactly what is going wrong in the health service in Wales. From the data that we have, we already know about the 31,000 people who have been waiting more than two years in pain for treatment. We also know that the Welsh Government have a copy of the EY report into what has gone wrong in the Betsi Cadwaladr University Health Board—a report that they are sitting on and trying to hold secret because it points out that over £100 million was misspent by the health board under a Welsh Labour Government.
Samantha Dixon (City of Chester) (Lab)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with Cabinet colleagues on a range of transport matters. HS2 will benefit people travelling from north Wales to London, with the interchange at Crewe providing shorter journey times to north Wales than is currently possible on the west coast main line.
Samantha Dixon
Chester station is the key that can unlock connectivity between England and north Wales. Connectivity is vital for not only thousands of rail users but businesses on both sides of the border and beyond. Will the Government commit to the rapid electrification of the north Wales train line, which will transform the north Wales and Cheshire regional economy?
David T. C. Davies
That is one of the best questions I have heard from anyone on the Opposition Benches so far this morning. Yes, I think electrification of the north Wales coast line would be a very good idea, or certainly improvements would be. As the hon. Lady will be aware, various improvements to the Welsh railway structure are being discussed in the rail network enhancements pipeline, and I look forward to it being published shortly.
Alexander Stafford (Rother Valley) (Con)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with Cabinet colleagues to discuss transport links between Wales and the rest of the UK. Roads are devolved to the Welsh Labour Government, and their opposition to the M4 relief road, and indeed to any kind of road building at all, continues to hold the Welsh economy back—a matter that is of great disappointment to me and my Cabinet colleagues.
Alexander Stafford
The economy of Wales has always worked on an east-west basis, so a journey starting from Bangor in the north takes three times longer to Cardiff in the south than it does to Manchester or to my seat of Rother Valley. Can the Secretary of State offer an explanation, then, of why the Welsh Government have banned all new road development and how that might possibly help the Welsh economy?
David T. C. Davies
My hon. Friend raises an excellent point. The Welsh Labour Government’s response to the roads review is absolutely extraordinary. Their opposition to road building is going to hold the Welsh economy back, and I urge them to reconsider the impact of banning all road building on the long-term prosperity of Wales.
Helen Morgan (North Shropshire) (LD)
When he delivered his Budget in 2020, the Prime Minister, who was then the Chancellor, promised a bypass for Llanymynech and Pant in my constituency on the road that links Oswestry and Welshpool. Will that road ever come to fruition, or is it just another broken promise?
David T. C. Davies
I did not hear all of that question, but I think it related to the Llanymynech bypass in mid-Wales. The fact of the matter is that the Welsh Labour Government will continue to receive Barnett consequentials for the road building that takes place in England, and it is for them to decide whether they wish to spend that money on building new roads, which is something I would like to see them do, or to keep throwing it away on white elephants such as the airport that has lost hundreds of millions of pounds over the last few years.
Stephen Morgan (Portsmouth South) (Lab)
Robbie Moore (Keighley) (Con)
The Secretary of State for Wales (David T. C. Davies)
The coronation saw people in Wales and throughout the United Kingdom come together to celebrate the monarchy. It was a wonderful occasion, which united our public and demonstrated just how strong our Union is.
Robbie Moore
Over the coronation weekend I had the pleasure of attending a fantastic coronation church service at Haworth parish church and listening to our brilliant “Yorkshire Harpist”, Fiona Katie Widdop, as well as joining in many of the community events that undoubtedly brought the whole United Kingdom together. I know that my right hon. Friend attended similar events in Wales. What does he see as the legacy of the coronation and that fantastic weekend of community spirit?
David T. C. Davies
I thought it notable that His Royal Highness the Prince of Wales spoke of the importance of service and of volunteering being at the heart of the coronation, and encouraged us all to take part in some voluntary work. I was pleased to join the residents of Llanhennock village in my constituency for an afternoon of litter picking on the day after the coronation, which I thought was almost as great an honour as attending the coronation itself.
Jim Shannon (Strangford) (DUP)
The celebrations for the coronation in Wales were exceptional, and the celebrations for the coronation in Northern Ireland were equally successful. Does the Minister agree that when it comes to cementing the Union, the fact that all four regions—Scotland, Wales, Northern Ireland and England—can be one country is an indication of why royalty is so important to this whole great United Kingdom of Great Britain and Northern Ireland? Always better together.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State for Wales (David T. C. Davies)
The UK Government are committed to supporting renewable energy generation in Wales—including the innovative tidal stream technologies at Morlais, through our flagship contracts for difference scheme—and supporting the huge potential of our floating offshore wind industry through the £160 million in floating offshore wind manufacturing investment scheme funding for port infrastructure.
Alan Brown
The devolution of the Crown Estate in Scotland has allowed the Scottish Government to have a more coherent supply chain development for renewable energy, and 75% of the Welsh public want to see it devolved in Wales so that it too can benefit from those natural resources. Will Westminster listen to the people of Wales, or is this another case of “Westminster knows best”?
David T. C. Davies
Devolving the Crown Estate would be very risky for Wales, given that at present the revenue spent by the UK Treasury is invested across the whole United Kingdom, but I can assure the hon. Gentleman that this UK Government will be committed to seeing renewable energy spread across the UK, alongside our other priorities of halving inflation, cutting debt, ending small boat crossings and reducing NHS waiting lists in the areas where we are responsible for doing so.
Virginia Crosbie (Ynys Môn) (Con)
Anglesey leads the way in renewable energy but it is being let down by poor connectivity. This week the Britannia bridge closed suddenly and, given that there is a 7.5 tonne limit on the Menai suspension bridge, that created chaos. Does the Secretary of State agree that Labour in Cardiff should be focused on building a third crossing?
David T. C. Davies
My hon. Friend is absolutely right about this. The Welsh Labour Government need to start building roads and start building bridges as well.
Oral Answers to Questions
David T C Davies Excerpts(1 year, 6 months ago)
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Mick Whitley (Birkenhead) (Lab)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with Cabinet colleagues on a range of topics. The Government are providing total support of more than £94 billion across the UK to help households and individuals with the cost of living, at an average of more than £3,300 a household. That includes extending energy support by keeping the energy price guarantee at £2,500 for the next three months.
Mick Whitley
Last month, we learned that household incomes are falling at the fastest rate since records began, forcing the people of Wales to work even harder for less in return, but Britain’s leading food retailer has gouged more than £3 billion in profits from its customers over the past two years alone. With food inflation now at 19%, does the Minister agree that we are living through a cost of greed crisis? When will this Government get serious about tackling the excessive profiteering that is driving up prices and causing real pain for families across Wales and the UK?
David T. C. Davies
The Government are serious about dealing with the cost of living crisis, and that is why I am pleased that inflation is shown to be continuing to fall at the moment. This Government are on track to reach our target of halving inflation over the next year. This Government have always supported the most vulnerable in society, which is why I am pleased that we have made sure that pensions, benefits and the minimum wage have gone up in line with inflation.
David T. C. Davies
My right hon. Friend is absolutely correct. It really is extraordinary that the Welsh Labour party not only wants to spend millions of pounds handing out a universal basic income to people including asylum seekers, but then wants to exempt them from having to pay the same legal bills that the rest of us would be subject to. This Government will continue to support the most vulnerable in society, and that is why I am pleased not only with the raising of pensions, benefits and the minimum wage in line with inflation, but with the extra payments made to those most in need.
Alex Davies-Jones (Pontypridd) (Lab)
Last week, in response to the cost of living crisis, the Labour Government in Wales increased the education maintenance allowance to £40 a week. This boost is a lifeline to thousands of students in Wales, and I am proud that we have a Labour party stepping up to help, while the UK Government have turned a blind eye. I am sure that the Secretary of State welcomes the uplift, so can he therefore share what discussions he is having with his Cabinet colleagues to ensure that the UK Government can once again follow the Welsh Labour Government’s lead?
David T. C. Davies
I can assure the hon. Lady that there are no circumstances under which the UK Conservative Government would want to follow the lead of the Welsh Labour Government, who are coming forward with policies such as raising taxes by wanting to charge people for using the motorways, bringing in a tourism tax and even scrapping meal deals. How will that help a cost of living crisis?
Tom Hunt (Ipswich) (Con)
Just to hammer home the point that has already been made, does the Secretary of State agree that it speaks to the kind of values that the Labour party has that it is prioritising providing huge support for those who have illegally entered our country over maximising cost of living support for Welsh citizens? The same might be the case in England, were a Labour Government ever to be elected.
David T. C. Davies
My hon. Friend is absolutely correct. The humanitarian response is to disincentivise people from risking their lives by crossing the channel illegally and arriving in small boats. That is why last night I jointly signed a letter that rejects what the Welsh Labour Government are asking for. We are not prepared to see the Welsh Labour Government handing out universal basic incomes to people who should not be in this country in the first place, and then on top of that providing them with legal funding and lawyers, so that they can challenge the decisions being made by the Government. Those are not the priorities of the Welsh people.
David T. C. Davies
Of course, the hon. Lady is correct that we have had financial problems, as a result of having to spend £400 billion during the covid pandemic and the inflation that has been caused by the illegal invasion of Ukraine, and that is why the Government have continued to support the most vulnerable in society. However, the fact of the matter is that the Welsh Labour Government’s response to all of this seems to be to squander taxpayers’ money, with £100 million going to create extra Members of the Senedd, £150 million wasted on plans for a relief road that was never going to be built and now more millions of pounds to be spent on universal basic income and legal fees for asylum seekers.
Jo Stevens
The Secretary of State mentioned inflation earlier, but of course falling inflation does not mean that prices are falling—just that the rate of the price rises is slowing. If Cabinet Ministers cannot get a grip on basics like that, it is no wonder the economy is in such a mess. Is it not the reality that his Government continue to fail households right across Wales, while protecting and rewarding the super-wealthy by refusing to abolish non-dom status and giving a huge pension bung to the top 1%?
David T. C. Davies
First, of course, the so-called top pension bung was for doctors, which is actually something that Labour Members had called for themselves. If the hon. Lady is seriously worried about food prices, perhaps she could explain why the Welsh Labour Government want to scrap meal deals and stop people enjoying a drink and a packet of crisps with their food. The fact of the matter is that we will prioritise our help towards the most vulnerable, while the Welsh Labour Government continue to squander it on people who do not need it.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
My constituents Malcolm Atherton and Beth Cluer run a café in Trawsfynydd, and they have had to face making the heartbreaking decision to hibernate their business in the face of cripplingly high energy bills. Small and medium-sized businesses are the beating heart of the Welsh economy and employ 62.6% of Welsh workers, yet they received no additional support with their energy bills from the Chancellor in the spring Budget. To ensure that Malcolm and Beth can one day reopen their café, will the Secretary of State be urging his colleagues in the Treasury to increase the energy support available to small businesses?
David T. C. Davies
The right hon. Lady will be aware that the Government have provided an unprecedented package of subsidies for businesses through this winter worth £18 billion—those were figures set out by the Office for Budget Responsibility—and, in addition, there have been things such as the freeze on fuel duty. I am very sorry to hear about the circumstances that some individual businesses face, but I can absolutely assure the right hon. Lady that supporting businesses through this difficult time remains a priority for this Conservative Government.
Liz Saville Roberts
Of course, businesses that are off grid have suffered another experience and a lack of support, but with your tolerance, Mr Speaker, I would like to take the opportunity to raise another matter with the Secretary of State.
Thames Water wastes 630 million litres of water every day through leaky pipes. Rather than fix this environmentally baffling waste, they are planning on moving vast volumes of water from Wales instead. Our natural resources are being diverted elsewhere without recompense, and without consultation with local people either. He says he is Wales’s man in Cabinet. Will he prove it by activating section 48 of the Wales Act 2017 so that decisions about Wales’s resources are made by the people of Wales in Wales?
Mr Speaker
Order. Can I just say to the right hon. Lady that I have a lot of people trying to get in and that this is unfair? You do get the two questions. Please do not take advantage of the rest of the Chamber.
David T. C. Davies
I am not responsible for Thames Water, but I have regular meetings with Welsh Water, and this is not an issue it has raised with me. One of the things I am sure the right hon. Lady would agree with is that Welsh Water needs to do more to ensure that there is less sewage and less leakage going into our rivers. Holding it to account is of course something for which the Welsh Labour Government are responsible.
John Mc Nally (Falkirk) (SNP)
Patrick Grady (Glasgow North) (SNP)
The Secretary of State for Wales (David T. C. Davies)
The Welsh Government are well funded to deliver for Wales. The spending review provided the Welsh Government with a record block grant of £18 billion a year. As a result of the Budget, Welsh Government funding is increasing by a further £180 million over the next two years. This is all on top of the additional £1.2 billion announced at the autumn statement.
John Mc Nally
I thank the Secretary of State for that answer, but the UK Government, as he has just alluded to, have recently clawed back £155 million from the Welsh Government Budget, rather than allowing it to be carried forward into the next financial year. I can only assume that, in clawing back these funds, for some bizarre reason the Secretary of State thinks the UK Government are working in the best interests of the Welsh people. Can he tell us if that is so?
David T. C. Davies
The funds were not “clawed back”, and there was no “bizarre” reasoning about it. The money was not spent by the Welsh Government; they managed to fail to spend £155 million in the midst of a pandemic, which is extraordinary. The Welsh Government are receiving £1.20 on the NHS for every £1 spent in the United Kingdom, and that money is not being passed on in full. That is why in Wales, under a Labour Government, we wait longer for our ambulances, longer on hospital waiting lists, and we have less access to the treatment that people are now taking for granted in England.
Patrick Grady
The Secretary of State is making the case for precisely the kind of financial flexibility that the devolved Administrations require. The reality of inflation and the mishandling of the economy is that the Welsh budget is worth £4 billion less than it was when it was first agreed, and the same thing is happening in Scotland. If the Government will not adequately finance the devolved institutions, why will they not devolve reasonable borrowing powers, so that we can ensure that adequate budgets are set for the benefit of our constituents?
David T. C. Davies
If I ever decide that I want to have lessons in sound management of public finances, I probably will not be asking the Scottish National party. The Welsh Labour Government have had a real-terms increase in spending over the spending review period, and it is for others to answer for why they are unable to deliver the same level of healthcare and education, why they are not building roads, and why they are spending the money they are getting on paying the legal bills of asylum seekers.
Virginia Crosbie (Ynys Môn) (Con)
Under this UK Government, my constituency has been awarded £17 million from the levelling-up fund to regenerate Holyhead, £20 million to refurbish the Holyhead Gateway, £16 million from the shared prosperity fund, £2.7 million from the culture recovery fund, hundreds of new jobs at the inland border facility, £175 million for the RAF Valley, and now Anglesey has freeport status, with the potential to create 13,000 jobs and £1 billion to the economy. Does the Secretary of State agree that this Conservative UK Government are determined to level up places such as Anglesey in north Wales that have been forgotten by Labour in Cardiff—
Mr Speaker
Order. Can we try to help? I want to get more people in, and the only way I can do that is with shorter questions.
David T. C. Davies
Others in the House may try to shout down my hon. Friend, but they will not succeed, because she has been unstinting in her support for her constituency. It is no coincidence that the Prime Minister wanted to make Ynys Môn the first place he visited as Prime Minister, to celebrate the announcement of growth deals that will deliver growth and levelling up across the whole of Wales and the United Kingdom.
Michael Fabricant (Lichfield) (Con)
Many of my constituents, including me, visit Tywyn in Gwynedd. Is my right hon. Friend aware that people need healthcare there, funded of course by the grant, yet Tywyn Hospital has closed its minor injuries unit and its in-patient ward? Will he speak to the Welsh Minister for Health and Social Services and discuss how English tourists will get proper healthcare when they are on holiday in Wales?
David T. C. Davies
I am, as ever, grateful to my hon. Friend for his comments, but unfortunately I am unable to give a detailed answer because the national health service is devolved in Wales. I very much hope that Welsh Labour Ministers will want to explain why, with all the extra money they are getting, above the money that is given to the national health service in England, they are unable to deliver the same standards of healthcare, or for that matter education, as those we take for granted under a Conservative Government run in Westminster.
Mark Tami (Alyn and Deeside) (Lab)
Ashley Dalton (West Lancashire) (Lab)
The Secretary of State for Wales (David T. C. Davies)
I regularly engage with Cabinet Ministers on a range of transport measures. Over £390 million has already been provided for rail improvements in Wales since 2020, including at Bow Street Station, with the electrification of the Severn tunnel and through Cardiff Crossrail.
Liz Twist
Avanti chaos has hit services between Holyhead and Crewe. For communities in north Wales and the north-west of England, the line is an ongoing nightmare. What guarantees will the Secretary of State provide that those services will be restored?
David T. C. Davies
The hon. Lady has a point. A number of complaints have been made about Avanti by Members of Parliament of all parties and I think there is a recognition that things could be a lot better than they are. Avanti is well aware of that and has been told that it needs to improve the service quickly. I can assure her that the Department for Transport is well aware of the problems she raises.
Ashley Dalton
Rail connectivity is crucial to the border communities of Wales and England, such as connections between Wrexham and Merseyside. Furthermore, Merseyside is just as inaccessible for some communities in the north of England as it is in Wales. Skelmersdale in my constituency is a community of 40,000 people, but has been left without access to a train station since 1958. Will the Secretary of State tell me how the Government plan to make sure our communities on both sides of the border have access to rail services?
David T. C. Davies
I welcome that question from the hon. Lady. I am sure the people of north Wales would welcome many more of her constituents coming down to visit and spending money in the local tourism industry, if they can afford the tourism tax imposed by the Welsh Labour Government. To answer her question simply, there will be a rail network enhancements pipeline review out shortly. I believe it will contain good news for rail users across Wales, which will benefit travellers from across the United Kingdom.
Kevin Foster (Torbay) (Con)
With meal deal bans, tourism taxes and road charges, it is no surprise that many Welsh residents will be thinking of getting the train for a holiday in Torbay to avoid all of them. What discussions is the Secretary of State having to ensure that the rail infrastructure between south Wales and the south-west of England will be able to cope with the demand?
David T. C. Davies
I am sure that Torbay is a wonderful place, but I would still recommend that people come to Wales instead to enjoy its coastline. To do that, they would need to go either by train or by car, so it is unfortunate that the Welsh Labour Government have also decided to stop all road building, whereas the United Kingdom Government are getting on with building roads and railways.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
One of the most important rail links into mid-Wales is through Shrewsbury. We are proud to be a border community, and of our links with Wales. We are campaigning for electrification of the line from Birmingham to Shrewsbury and beyond to Wales. Will the Minister take an interest in our project to try to electrify this vital artery for residents in mid-Wales?
David T. C. Davies
I will take an interest in that matter, but it is more for the Department for Transport than for my good self. I have taken an interest in the fact that a great deal of work is going on in the Forest of Dean area to ensure that commuters on both sides of the border can enjoy more reliable rail travel.
Robbie Moore (Keighley) (Con)
Contingencies Fund Advance: Wales
David T C Davies Excerpts(1 year, 8 months ago)
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The Secretary of State for Wales (David T. C. Davies)
I hereby give notice of the Wales Office’s intention to seek a repayable cash advance from the Contingencies Fund. The Department requires an advance to meet an urgent cash requirement pending parliamentary approval of the supplementary estimate 2022-23.
The Welsh Government are operating within their budgets, so this does not represent additional spending. However, an increase in net cash requirement will be sought in the supplementary estimate, so accessing the Contingencies Fund will allow the Welsh Government to fund this existing spending in the meantime.
Parliamentary approval for additional non-budget expenditure of £150,000,000 will be sought in a supplementary estimate for the Wales Office. Pending that approval, urgent expenditure estimated at £150,000,000 will be met by a repayable cash advance from the Contingencies Fund.
The advance will be repaid immediately following Royal Assent of the Supply and Appropriation (Anticipation and Adjustments) Bill in March.
[HCWS631]
Welsh Affairs
David T C Davies Excerpts(1 year, 8 months ago)
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The Secretary of State for Wales (David T. C. Davies)
I wish you, Mr Deputy Speaker, and everyone in the Chamber dydd gŵyl Dewi hapus.
I begin by offering my hearty congratulations to the hon. Member for Swansea East (Carolyn Harris), who always talks a lot of sense and always has something worth listening to. I would like to think that we all share the values she espouses when she talks about the charities she supports in her constituency—I think they rang bells with all of us—but we know that she does not just talk the talk, but walks the walk in what she does. She has been campaigning on menopause and mentioned the difference in treatment between women in England and Wales. I have been informed that, as of April, women in England will be able to get a one-year prescription payment certificate, partly as a result of her campaign, so that is worth mentioning. She has been a campaigner on many issues and I thank her for securing the debate.
In the brief time I have, I will try to go around the Chamber and mention something from all the speeches and pick up on some of the questions. If I leave anything out, forgive me—I am sure it will be taken up at a later date. My right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) spoke next. He started by talking about the importance of football, including women’s football. As a parent who has watched many football matches, I believe a lot can be learned from women’s football and the way it is played in a supportive and nurturing environment. I welcomed listening to the inspirational speech by the head of women’s football yesterday in London.
My right hon. Friend and the hon. Member for Aberavon (Stephen Kinnock) spoke about the importance of steel and FLOWMIS. On floating offshore wind, the Government are very supportive and we look forward to bringing 4 GW by 2035 in the Celtic sea. I have been engaging with the companies involved and the Crown Estate about how quickly we can bring that forward. There will be an announcement shortly on FLOWMIS—I am told that it will be very shortly indeed, but I am unable to give a date. The Government also very recently brought in an energy-intensive users scheme to ensure that steel companies, which the hon. Member for Aberavon feels very passionately about, are not losing out, in competition terms, to companies in the rest of Europe, which are paying less per megawatt hour for the electricity they use.
Stephen Crabb
What the Secretary of State says about the FLOWMIS announcement is really significant. It is very good to hear confirmation from the Treasury Front Bench that there will be an announcement. I do not expect him to go into detail, but that pot of money is meant to be shared between ports in Scotland and Wales. Wales should get its fair share and that has to mean at least half.
David T. C. Davies
My right hon. Friend is tempting me here. Clearly, Wales should get its fair share of that—as Secretary of State for Wales, I am hardly going to disagree. On what that fair share is and how it is calculated, I do not have access to the exact detail yet, but he, as Chair of the Welsh Affairs Committee, and I will certainly be taking a very strong interest.
I will come back to universities, which I think were raised by the hon. Member for Aberavon. Before I do, the hon. Member for Delyn (Rob Roberts) made a very good point about the state of the national health service in Wales. If we are honest about it, we have all heard and dealt with constituents who have grave concerns. The fact that Betsi Cadwaladr University Health Board is back in special measures is proof positive that there is a problem and where there is a problem it needs to be acknowledged. Somebody in the Welsh Government needs to get on and deal with it. It was interesting that the hon. Member for Cardiff Central (Jo Stevens) in her summing up mentioned a lot of things, which I will come on to in a moment, but did not mention the national health service. Given that the Labour party says it has a plan for the national health service, it was surprising that she did not want to draw attention to her own party’s running of it in Wales, where it has been in charge for around 20 years.
The hon. Member for Ceredigion (Ben Lake) made a very good point about depopulation, which I think would be shared in many rural areas. If we can get broadband rolled out in the way we want to, I believe it would help. We have seen a change in the way society works over the past three or four years, partly as a result of covid. Many more people will be able to work from home and that may be positive. He said that he did not have all the answers— I certainly do not, either. I hope he would recognise that growth deals that are being put together by local authorities in all areas across Wales hold part of the problems. He will know that in his area, tourism and agriculture are strong. Growth deals are being set up specifically to deal with that and to offer people careers rather than jobs, precisely because that is a widely recognised problem across the political spectrum. We want young people to be able to stay in their own areas, rather than having to go to the big cities to work.
The hon. Member for Gower (Tonia Antoniazzi) made a powerful and insightful speech. She has spoken out on misogyny in sport and rugby before, including around 12 months ago and, unfortunately, not enough action was taken. Everyone will have listened carefully to what she said. She has spoken out on women’s issues in other areas than just sport, and I suspect she has had quite a lot of abuse on social media in the past for some of her comments when standing up for women’s rights. I fear that many women who have spoken out will probably get abuse on social media from cowardly people who probably would not look them in the eyes and say to them what they say online.
The hon. Lady knows that I have no locus in the WRU. After the allegations were made, I reached out to the WRU and asked for a meeting to discuss them. I met Nigel Walker briefly, who I find an impressive individual, but it was informal and I do not feel that we got down to address those issues. My office has been in touch with the WRU and I would be pleased to meet a little more formally and go through some of them. The hon. Lady is absolutely right that those people with complaints need them to be treated with anonymity and respect. I fear it may not just be rugby; many organisations probably have to deal with some of the issues that recently have been confronted.
The hon. Lady for Swansea West—[Interruption.] Do forgive me, I have not celebrated dydd gŵyl Dewi yet today. The hon. Member for Swansea West (Geraint Davies) was somewhat critical of Labour’s plan for HS2, which was put together around 2008-09 and was continued by the subsequent Conservative and coalition Governments. As I understand it, the reason that the Labour Government gave—
Geraint Davies
With all due respect, I was not critical of it as such. I said that we should get our fair share of the investment—the £5 billion. Will he support that? He is the Welsh Secretary—he should.
David T. C. Davies
I am not sure how the hon. Gentleman calculates that figure—we have discussed that before.
David T. C. Davies
I think that the current cost would be rather less than £100 billion for HS2. Also, it is being built over many years. If we took the £50 billion figure over 10 years, that is £5 billion a year. Five per cent. of that would be considerably less than the huge increase in funding already given to the Welsh Government by the UK Government—£2.5 billion of record-breaking funding.
David T. C. Davies
I will give way, but let me make one last point. It is an England-Wales project because Wales will benefit, particularly north Wales, from the faster connections via Crewe. That was always made clear, and I am not aware that the Labour Government said anything different.
Geraint Davies
Would the Secretary of State support the shovel-ready schemes already developed by Transport for Wales, which are worth £2.5 billion to be invested over 15 years—half the amount we should get? I raised that with the Minister of State, Department for Transport, the hon. Member for Bexhill and Battle (Huw Merriman), this morning, who said that his officials would work with Transport for Wales. Would he support joint funding so that we can get that going rather than resisting all investment in Wales?
David T. C. Davies
I am aware of probably three schemes ongoing at the moment within the rail network enhancements pipeline project, which I hope will be brought to fruition shortly, but I support as much spending as possible on the railways in Wales.
I might be being discourteous to the shadow Secretary of State, because I promised to speak for about seven minutes. Let me quickly say, because it was of interest to the hon. Member for Swansea West, that on university research funding, I committed to go around all the eight universities in Wales as quickly as I could. I am currently doing that, and I think I am on about No. 5. I have been looking at what they have to offer in terms of research, to see the best of it and to bring everyone to an event in London to meet UK Research and Innovation so that we can get more UKRI funding into Wales. That is something that I am happy to update him about shortly.
The hon. Member for Midlothian (Owen Thompson) made a wonderful speech. He almost seemed to be apologetic about representing a non-Welsh constituency, but most of us in this Chamber are proud Unionists and we welcome hon. Members from all parts of the Union. He spoke about the fantastic character Archibald Hood, who is described in the book “From Rosewell to the Rhondda”. Clearly Mr Hood, 150 years ago, was making the most of the opportunities we have to move around the Union. Let me say tapadh leat, which I think is Scottish Gaelic for thank you, to the hon. Gentleman.
The hon. Member for Cardiff Central rightly acknowledged the huge bravery of the Ukrainian people, 6,000 of whom are in Wales. In Chepstow last week, I met Ukrainian constituents, as the hon. Lady has done—they are now our constituents. We say, “Croeso mawr i bob un ohonyn nhw.” They are all incredibly welcome in Wales. We hope that they have an opportunity to go back to their country at some point, but we are delighted that they are here at the moment.
The hon. Member made a point about the cost of living crisis. I will take a leaf out of my own book and say that we absolutely acknowledge it: there is a cost of living crisis. That is why we have been prioritising our help for pensioners by making sure that pensions, benefits and the minimum wage go up in line with inflation. We have been making payments of £900 to those who are on benefits, £300 to pensioners and £150 to those who are on disability benefits. We are spending £18 billion this winter to ensure that around half of people’s energy bills are being paid. What we certainly will not do is ban meal deals, because that would hit people in the pocket.
Rob Roberts
The shadow Secretary of State said that Welsh Labour is putting more money in the pockets of Welsh people. Labour has a penchant for fantasy economics. Does the Secretary of State agree that before devolution the average wage in Wales was exactly the same as the average wage in Scotland, but now—25 years later—it is 20% lower?
David T. C. Davies
It is tempting, but I promised the hon. Member for Cardiff Central that I would speak for only seven or eight minutes and I have overrun, so I will simply thank everyone for a very constructive debate today and say, “Diolch yn fawr iawn i bawb. Dydd gŵyl Dewi hapus.”
Mr Deputy Speaker (Sir Roger Gale)
With the leave of the House, I call Carolyn Harris to wind up the debate.
Carolyn Harris
How wonderful it has been to have so many communities across Wales represented today—from Caswell to Cardiff, from Pembroke to Penlan, from Aberavon to Aberystwyth, from Delyn to Dunvant.
Carolyn Harris
Not all hon. Members have been able to speak in this debate, but as my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones) is here on the Front Bench, I will say, “And from Merthyr to Monmouth.” Whether we have talked about rugby or renewables, about cost of living or community, we have all spoken with passion not just for Wales, but for being Welsh, which is something we are all most definitely very proud of. When we wake up of a morning before coming to this wonderful building, we want to be able to look in the mirror, look ourselves in the eye and say, “What I do, what I say and how I behave are what my constituents would want. This is how they would want me to represent them.”
I have just two more things to say. First, I must say thank you to Scotland for Keir Hardie. Secondly, I sincerely apologise to the hon. Member for Delyn (Rob Roberts), who I truly feel has been let down: I had not thought of coming with red and green hair, but I promise to do better next St David’s day.
A happy belated St David’s day. Thank you, one and all.
Oral Answers to Questions
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Marco Longhi (Dudley North) (Con)
The Secretary of State for Wales (David T. C. Davies)
A gaf i hefyd ddymuno dydd gŵyl Dewi hapus i bawb?—[Translation: May I also wish everyone a happy St David’s day?]
Health is a devolved matter and we therefore have no control over how the National Health Service is delivered in Wales—that is a matter for the Welsh Labour Government—but improving health outcomes for people across the UK is, of course, a priority for this Government, and we have made sure that the devolved Administrations have the funding to enable them to deliver the same high standards of care that have been delivered in England by this Conservative Government.
Theresa Villiers
Does my right hon. Friend agree that a top priority for the Welsh Government should be helping the 45,000 people who are currently waiting more than two years for treatment in the NHS in Wales, rather than focusing on things such as banning meal deals and axing road improvement schemes?
David T. C. Davies
I agree completely with my right hon. Friend. Figures from the Office for National Statistics this week suggest that around 1 in 5 people in Wales is now on a waiting list as opposed to just 1 in 18 people in England. As she has just pointed out, 50,000 people have been waiting more than two years for healthcare in Wales. I would far rather see the money that will be spent on creating extra Senedd Members spent on delivering healthcare in Wales.
Marco Longhi
Despite the Welsh Government receiving £1.20 for every £1 spent on public services in England, they spend only £1.05 of that money. Does my right hon. Friend agree that the Welsh Government should spend less time and money on expanding the Senedd and putting tampons in men’s toilets, and focus on delivering a proper service for the people of Wales?
David T. C. Davies
I agree completely with my hon. Friend. I am sure that the 50,000 people who are in pain and on waiting lists at the moment would far rather see the £100 million that will be spent on expanding the Senedd being spent on delivering healthcare and reducing waiting lists in Wales.
Geraint Davies (Swansea West) (Lab/Co-op)
The Secretary of State will be aware that higher levels of poverty give rise to higher healthcare costs and higher absolute numbers of people needing healthcare, so how can he justify the fact that Wales does not get its 5% share of High Speed 2—£5 billion—and is losing enormous amounts of money from EU funding, which he promised would be provided, and thousands of jobs in Welsh universities? We need that productivity to alleviate poverty and to put less pressure on the NHS. It is his fault that those waiting lists are growing.
David T. C. Davies
I certainly do not recognise the figures that the hon. Gentleman has come up with on HS2. The fact is that the UK Government have replaced EU funding in full through the shared prosperity fund, the community ownership fund, the community renewal fund, levelling-up funds and much else besides. The UK Government have also made certain that £1.20 is delivered per head of population for NHS care in Wales, as opposed to £1 in England. It is very hard for him to explain why Wales receives more money to deliver healthcare and yet delivers lower standards.
Kirsten Oswald (East Renfrewshire) (SNP)
If the UK Government were to uplift NHS and social care pay in England to the level in Scotland, it would unlock funding for all the devolved nations to support their national health services through the cost of living crisis. Will the Secretary of State discuss the possibility of a pay uplift and its impact on Wales with Cabinet colleagues?
David T. C. Davies
The hon. Lady is right that Scotland is very generously funded. She seems to be making an argument that Wales and England should receive more money per head than Scotland does at the moment and that she would be happy with that: I doubt it very much. The reality is that despite the generous funding that the Scottish Government receive, they have very poor outcomes, and some of their own members have said that health care in Scotland is close to collapse.
Jeff Smith (Manchester, Withington) (Lab)
Dr Luke Evans (Bosworth) (Con)
The Secretary of State for Wales (David T. C. Davies)
I share the concerns of all hon. Members about the grave allegations of misogyny that have been made about the Welsh Rugby Union, and the recent contract negotiations with players have also been a matter of concern. Rugby has always been at the heart of Welsh culture and, as such, I was pleased to meet the acting chief executive officer Nigel Walker recently. He is an honourable man and well thought of. I am sure that he takes the allegations seriously and will be dealing with them.
Dr Evans
Being half Welsh and half English, the game at the weekend can often be difficult, but I am united in being a rugby fan. In England, I have met the CEOs of premiership rugby and of the Rugby Football Union, and the Minister, to ensure good governance. What conversations has the Secretary of State had with the Welsh Labour Government to ensure that the players, fans and good governance secure rugby union and its elite stars in Wales?
David T. C. Davies
Obviously, sport is a devolved matter, but I have had conversations with Nigel Walker and other members of the WRU informally. The UK Government, and I am sure the Welsh Government, were appalled by the allegations. I would be happy to work with the Welsh Government, the WRU or any other body, including the external body that has been set up to look at the issue, to ensure that the allegations are properly dealt with.
Anna McMorrin (Cardiff North) (Lab)
Dydd gŵyl Dewi Sant hapus, Mr Speaker. I am sure that all hon. Members are concerned about the allegations of discrimination and misogyny within the WRU that victims have come forward and said they have faced. What conversations is the Secretary of State having with his colleagues in the Department for Digital, Culture, Media and Sport about the matter and the pressure that they can put on the WRU to address these serious allegations?
David T. C. Davies
The hon. Lady will be aware that sport is a devolved matter, but those concerns will be shared in DCMS. Those sorts of allegations have been made about not just rugby, but other sports, so there is a nationwide problem. My colleagues in DCMS will be doing everything they can to deal with such allegations in England. I would honestly be happy to work with her, the WRU and the Welsh Government—or any other body that has some means of dealing with the issue. We must absolutely ensure that sport is safe for women, minorities and everyone to take part in without any form of discrimination.
Simon Baynes (Clwyd South) (Con)
Alun Cairns (Vale of Glamorgan) (Con)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with ministerial colleagues about how the £330 million allocated to Wales so far through the levelling-up fund is supporting communities, creating jobs, driving up economic growth and keeping the Government’s commitment to ensure that Wales does not lose a penny as a result of coming out of the European Union.
Simon Baynes
The Labour Welsh Government have badly let down Clywd South and Wrexham by scrapping the A483 junction upgrade, which would have unlocked substantial investment and jobs in our community. Does my right hon. Friend agree that they need to support and maximise the benefits of the UK Government’s Welsh levelling-up fund projects by investing in road upgrades across Wales?
David T. C. Davies
My hon. Friend makes an excellent point. The Welsh Government’s response to the roads review gives the impression that Wales is closed for business by determining that no further road-building projects will take place. I urge them to consider the impact of not building roads on the economy and the long-term prosperity of Wales. They should consider how they might build on the record support that Wales has received through the levelling-up fund and city and growth deals by rebuilding roads and improving connectivity across Wales.
Alun Cairns
Dydd gŵyl Dewi hapus, Mr Speaker. The levelling-up fund offered prospects for communities such as Barry that had been ignored by the Welsh Labour Government for many years. In the last levelling-up fund round, however, Cardiff bay, which has received billions of pounds for regeneration in recent decades, received a further £50 million, but Barry Making Waves, which is delivering a marina project, was ignored. What hope, prospect and opportunity can I offer people in Barry for the next round of levelling-up funding?
David T. C. Davies
I fully understand my right hon. Friend’s disappointment that the bid was not successful on this occasion, and I pay tribute to him for being such a champion for that particular bid and for his constituency. I suggest to him that there is going to be a third round of levelling-up funding, and I hope that local authorities that have not thus far been successful will apply.
Beth Winter (Cynon Valley) (Lab)
Dydd gŵyl Dewi hapus i bawb. Will the Minister please join me in congratulating Mountain Ash in my constituency on being shortlisted for the Let’s Celebrate Towns competition, which is being announced here in Parliament this evening? On this St David’s Day, will he also now join me in urging the UK Government to restore the £1.1 billion missing in Wales, and allow the Welsh Government to administer those funds to enable every community in Wales, including Cynon Valley, to thrive?
David T. C. Davies
First, Mr Speaker, I would like to say llongfyfarchiadau mawr to the constituents of the hon. Lady. I do not recognise the figure that she has just quoted: the UK Government have made sure that record funding has flowed through to the Welsh Government, and in replacing the funds that we used to receive from the European Union we have made sure that Wales has not lost out by one penny. The UK Government have been working directly with the 22 local authorities across Wales, including the hon. Lady’s, to ensure that we can continue to deliver jobs, prosperity and growth in Wales.
Dave Doogan (Angus) (SNP)
The Minister says that he does not recognise the figure of £1.1 billion—well, the people and communities of Wales will recognise that £1.1 billion when it fails to materialise any significant improvement in their communities and healthcare outcomes, or in business investment. What will he do to compensate the people of Wales for the paltry levelling-up funding that is no match for European funding?
David T. C. Davies
The hon. Gentleman will know perfectly well that it is not just levelling-up funding that is replacing EU funds: it is levelling-up funds, community ownership funds, community renewal funds and shared prosperity funds. On top of that, the Government are delivering nearly £790 million in growth deals. Wales has not lost out by one penny as a result of the UK Government’s implementing the result of the referendum, in which the people of Wales voted to leave the European Union.
Chris Elmore (Ogmore) (Lab)
The Secretary of State for Wales (David T. C. Davies)
This Government have provided an unprecedented package for non-domestic energy users through this winter, worth £18 billion, and our new energy bills discount scheme will provide a discount on high energy costs to give businesses certainty while limiting taxpayers’ exposure to volatile energy markets.
Chris Elmore
I welcome the Secretary of State’s support running up to April, but he must accept that the changes that the Government are introducing from April are also bringing about huge amounts of uncertainty for many businesses, including in my constituency of Ogmore. One business is looking at potentially making several hundred of its workforce redundant because it is unable to get guarantees on funding beyond April. Will the Secretary of State meet me to see what work we can do to try to ensure that business is secured, and convince the Chancellor that more support is needed in the Budget for businesses in Wales and across the UK?
David T. C. Davies
I certainly know that the Chancellor and the Treasury have been having discussions with businesses in Wales about what support can be given, but I would be perfectly happy to meet the hon. Gentleman and that business in his constituency to see what further support can be given.
Virginia Crosbie (Ynys Môn) (Con)
Dydd gŵyl Dewi hapus. Businesses on Ynys Môn have been impacted by the cost of living crisis, compounded by a lack of investment in key infrastructure. With the cancellation of plans for a third Menai bridge, it is clear that Labour and its Plaid chums in Cardiff would rather Anglesey was on a road to nowhere. Does the Secretary of State agree that a freeport on Anglesey would demonstrate that my constituency is on a superhighway to the future?
David T. C. Davies
I pay tribute to my hon. Friend, who has been a doughty champion for not only a freeport, but a nuclear power station and a third Menai bridge, in her constituency of Ynys Môn. She must have been as disappointed as I was that the Welsh Labour Government have decided that they will build no more roads in Wales, meaning that her constituents will lose out as a result of not being able to have that vital road connection.
Christina Rees (Neath) (Ind)
Oral Answers to Questions
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Ben Lake (Ceredigion) (PC)
The Secretary of State for Wales (David T. C. Davies)
We are delivering unprecedented support to protect households across Wales from the cost of living. We understand that people across the UK are worried about the cost of living, and this winter we will stick with the plan to spend £55 billion to help households and businesses with their energy bills—one of the largest support plans in the whole of Europe.
Ben Lake
I welcome the right hon. Member to his role as Secretary of State for Wales. As he will be aware, off-grid households and businesses have experienced quite rapid increases in the price of their heating. That is a big concern in areas such as Ceredigion, where 74% of properties are not connected to the mains gas grid. Quite simply, when does he expect those households and businesses to receive support for their off-grid heating costs?
David T. C. Davies
The hon. Gentleman is quite right to raise the issue of off-grid domestic premises. The Government have heard the issue being raised by Members, including him, and we have increased the support available from £100 to £200. I would be happy to come back to him with details of exactly when that payment will be made. It was because of calls from people such as him that that increase was made.
David T. C. Davies
I am delighted to take full collective responsibility for all the excellent decisions that the last three Prime Ministers have made. May I remind the hon. Lady that we are committing ourselves to spending £55 billion to support the least well-off households across the United Kingdom? Yes, we have had to raise taxes because we have had to pay for a covid crisis that has cost £400 billion; we have had to deal with the effect of the disgraceful invasion of Ukraine, which has pushed up energy bills and pushed up inflation across the United Kingdom; and we have raised taxes to support the most vulnerable. I am yet to hear what she would do to raise money to help people.
Jo Stevens
The Secretary of State cannot hide from his record. He mentioned tax rises. I will make it easy for him: which of the 24 Tory tax rises in this Parliament did he not support?
David T. C. Davies
I am quite happy to support a tax rise to make sure that the living wage goes up. I will support tax rises to make sure that pensions and benefits can go up in line with inflation. What I still have not heard from the hon. Lady, or indeed from the many Labour Members whom I hear on the radio talking about taxation and borrowing, is where exactly they would find the extra money that they want to use to increase spending on public services.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
I too welcome the Secretary of State to his place. I am sure that he will join me in expressing llongyfarchiadau—congratulations—to the Wales football team on their performance. If there had only been a third half, we would have been the winners.
The Chancellor told us last week that his financial statement was based on British values. The Wales Governance Centre calculates that, because of failed economic strategies—mostly by his Government—average Welsh incomes will, by 2027, be £10,300 lower than if pre-financial crisis growth levels had been sustained. As the Conservatives prepare to squander another decade, should the people of Wales take it that the British values of the Secretary of State’s Government stand for relentless grinding poverty?
David T. C. Davies
In the first instance, I thank the right hon. Lady for her kind words. Of course, I will be happy to say llongyfarchiadau i’r wal goch—congratulations to the red wall—in a few days’ time.
As far as the Government’s economic policies are concerned, I remind her that the Government have had to deal with the after-effects of a financial collapse partly caused by the previous Labour Government, the effects of a covid crisis that has cost £400 billion, and the effect of a land war in Europe. Despite all that, this Government have quite rightly prioritised the least well off in our society, and I am very proud of our economic record.
Liz Saville Roberts
Today of all days, we must look forward to how the democracy of these isles will best serve our people, particularly the people of Wales. In June, I asked the Deputy Prime Minister whether his so-called Bill of Rights would include the right to self-determination. He did not give me a direct answer, so I will ask the Secretary of State. Will he support the inclusion in the Bill of Rights of the right to self-determination for the peoples of the devolved nations, or does he not believe that Wales should have the right to decide our own destiny?
David T. C. Davies
Wales has decided its own destiny in several referenda recently. It decided that it would like a devolved Administration, which is something that this Conservative Government will fully support. Wales voted to leave the European Union, which I fully supported, but I am not sure the right hon. Lady or her party did. I fully respect the self-determination of the Welsh people to leave the EU, and I look forward to her support on that one in the future.
Chris Elmore (Ogmore) (Lab)
Owen Thompson (Midlothian) (SNP)
The Secretary of State for Wales (David T. C. Davies)
The Bill of Rights will continue to protect the same rights and freedoms currently in place, but will restore a common-sense approach to human rights, safeguarding the public interest and respecting the will of Parliament.
Deidre Brock
Secretaries of State, previously and just now, have failed to answer the question from the Plaid Cymru leader, the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), on this, so I will have another go. The right to self-determination is set out in article 1 of the international covenant on civil and political rights. Will the proposed British Bill of Rights uphold that by enshrining the right to self-determination for the peoples of Wales, Scotland, England and Northern Ireland?
David T. C. Davies
The Bill of Rights is clearly a reserved matter for the UK Government. The UK Government will always respect the right of devolved Administrations to legislate in areas for which they are responsible, and we would assume that the devolved Administrations will respect the right of the UK Government to legislate in areas for which they are responsible. That is what respect and self-determination are all about.
Owen Thompson
Again, I do not think that got to the point. The Joint Committee on Human Rights recommended in its report last year that the UK Government should “not pursue reform” of the Human Rights Act
“without the consent of the Scottish Parliament, the Welsh Senedd and the Northern Ireland Assembly.”
As the UK Government have failed to get that consent, does the Minister not see the vital need for devolved nations to have a right to self-determination enshrined in law?
David T. C. Davies
I think the devolved nations, such as Wales, will be very pleased that my right hon. Friend the Justice Secretary is bringing in legislation that will stop the ridiculous time-wasting of people taking endless appeals, at public expense, to the courts to challenge judicial decisions. The Bill of Rights will not take away fundamental freedoms, such as the right to wear the suffragette colours in the national Parliament, which Members of the hon. Gentleman’s party should support in their own Chamber.
Sir Oliver Heald (North East Hertfordshire) (Con)
Does my right hon. Friend agree that the Bill of Rights places the Supreme Court at the top of the decision-making tree for rights, and so does our constitutional settlement as regards the devolved nations? Does he agree that we would look to the Supreme Court for correct, rightful decisions in this area, as we have just seen in another context?
David T. C. Davies
I agree with my right hon. and learned Friend. It is incumbent on all of us in this Chamber to support the decisions of the court, as I am sure all of us do.
Mr Philip Hollobone (Kettering) (Con)
Carolyn Harris (Swansea East) (Lab)
The Secretary of State for Wales (David T. C. Davies)
I have frequent discussions with my ministerial colleagues on a range of matters, including the cost of living. I am pleased to say that this year, as a result of the autumn statement, the Government will be spending £55 billion to help households and businesses with their energy bills. We have also announced further support for 2023-24 so that the most vulnerable households will continue to be supported.
Carolyn Harris
Swansea East-based charity Faith in Families supports 500 households a week who are struggling to pay for food, energy and living costs. Currently, it raises money to provide vouchers for toys so that children will be able to open a gift on Christmas morning. The Everyone Deserves a Christmas campaign, which is also based in Swansea, is desperately trying to raise funds to provide festive hampers for those families. Community organisations are doing their bit to ensure that nobody goes without this Christmas. What will the Government do?
David T. C. Davies
First, I commend the hon. Lady for her support for the hamper campaign. I believe that my office has sent out hampers, possibly as part of the same campaign that she has championed, and I am sure other hon. Members may want to do so. On the wider issue, we all accept that a Christmas hamper is not going to solve economic problems, so I refer her back to my earlier answer, which was that the Government have done absolutely everything possible to target help at the least well-off in society. That is why in addition to the inflation-linked increases to pensions and benefits, and to the living wage, the Government have made sure that those on benefits will receive a payment of £900, pensioners will get £300, and households where there are people with disabilities will get £150. We are proud of our record on doing our best for those with the least.
Alun Cairns (Vale of Glamorgan) (Con)
I welcome my right hon. Friend to his position. He just highlighted the range of generous support that has been made available to households facing the energy crisis, but park home residents are still waiting for clarification about how they will receive their support. The Government have clearly made strong, warm commitments to park home residents. When will they be in a position to explain, technically, how the money will be paid to those households?
David T. C. Davies
I thank my right hon. Friend for his kind words. I note that he has raised the issue on a number of occasions. I am told that details are forthcoming imminently on that particular point, and I am sure that other colleagues on the Front Bench, who are more directly involved in that, have heard his question and will respond to him shortly.
Tony Lloyd (Rochdale) (Lab)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with Cabinet colleagues on a wide range of transport measures, including High Speed 2. HS2 will enable quicker and more train services to north Wales via the Crewe northern connection, and will improve connections from north Wales to the HS2 network, potentially bringing passengers within two hours 15 minutes of London.
Tony Lloyd
The Secretary of State must recognise, though, that north Wales in particular can obtain the benefit of HS2 only with proper connectivity, which means electrification of the north Wales line. Will he guarantee that that will take place? If not, will he accept that that is a betrayal of the interests of the people of north Wales?
David T. C. Davies
I do not necessarily think that it would require electrification of the north Wales line. With respect, there are proposals at the moment to make improvements to the north Wales line that are based more around changes to signalling, which will allow more trains to run on the track. I do not pretend to be a rail engineer, but the proposals I have seen do not include electrification. They would decrease journey times across the north Wales line and, feeding into Crewe, would therefore decrease journey times between north Wales and London and bring benefits to all passengers.
Theresa Villiers (Chipping Barnet) (Con)
Virginia Crosbie (Ynys Môn) (Con)
The Secretary of State for Wales (David T. C. Davies)
I met officials from the Department for Levelling Up, Housing and Communities last week to discuss this very subject, and I feel confident that there are going to be several high-quality bids from Wales. The bidding process closes tomorrow at 6 pm, and I look forward to the announcement being made early in 2023.
Virginia Crosbie
I welcome the Secretary of State to his place—croeso. Will he join me in thanking all those who support Anglesey’s bid to become a freeport, and does he agree that a freeport in Wales delivers on our Conservative manifesto commitment and will strengthen Wales’s bond with the UK Government and our important Union?
David T. C. Davies
I am absolutely delighted to agree with my hon. Friend, and indeed to thank all those who have been involved in freeport bids across the whole of Wales. Freeports have the potential to spread wealth across the areas in which they are established, they deliver on the Government’s commitment to level up and they are an example of the benefits of Wales being a part of the Union. I would like to congratulate my hon. Friend, who has spoken on this issue on 26 occasions, and I look forward to that announcement being made in February.
Hywel Williams (Arfon) (PC)
We have seen many claims about the number of jobs that will be created in Holyhead. Can the Secretary of State give me a precise assessment or even a wild guess as to how many jobs will be created, how many of them will be new and how many will be merely transferred from other areas?
David T. C. Davies
I have certain powers as Secretary of State, but the powers of absolute clairvoyance are not among them. Therefore, I find it rather difficult to give an exact figure for the number of jobs that would be created as a result of any one of the many projects that the Government are doing to level up across the United Kingdom. What I can tell the hon. Member is that, where freeports have been trialled in Humber and Teesside, they have created thousands of new jobs, and I look forward to seeing something similar happen no matter where a freeport is established in Wales.
Simon Baynes (Clwyd South) (Con)
The Secretary of State for Wales (David T. C. Davies)
As a keen sportsman, I was absolutely delighted to visit the new 3G pitch at Baglan field. It received funds from the UK Government’s multi-sport grassroots facilities programme, which my right hon. Friend the Prime Minister championed when Chancellor. I look forward to meeting Welsh Government Ministers next week to discuss this and other issues around sports, as we cheer on our heroes in tîm Cymru a’r wal goch—team Wales and the red wall.
Simon Baynes
UK Government funding for grassroots football facilities in Clwyd South this year has included £57,000 for upgrading the pitch at Ysgol y Grango for the community hub, and £20,000 for Penycae football club, which is helping re-establish a girls team. Does my right hon. Friend agree that grassroots sport is vital for the health, wellbeing and quality of life of all our communities?
David T. C. Davies
I absolutely agree with my hon. Friend, and that is why we have allocated £1.3 million to 17 projects in Wales to make vital improvements to changing room facilities and artificial grass surfaces. Sports clubs are at the heart of every community in Wales, and Wales is at the heart of every decision taken by this Government and this Prime Minister.
Dame Nia Griffith (Llanelli) (Lab)
As people up and down Wales celebrate Wales’s success and wish them the best for the next couple of matches, this is an ideal and unparalleled opportunity to galvanise that enthusiasm and develop grassroots football in Wales. The Football Association of Wales tells me that £12 million has been earmarked by the Department for Digital, Culture, Media and Sport for the development of the sport over the next few years, but it could be threatened by the cuts announced last week by the Chancellor. Will the Secretary of State please speak to the Secretary of State for Digital, Culture, Media and Sport and beg her to safeguard that money for the development of grassroots football in Wales?
David T. C. Davies
The Government have already shown their commitment to sport—not just football but many other sports—through the funds disbursed by DCMS across the United Kingdom. I am sure that right hon. colleagues will have heard the hon. Lady’s comments, but I assure her of our commitment to grassroots sports across Wales and the United Kingdom. I look forward to joining her to support tîm Cymru a’r wal goch wythnos nesaf. Diolch. (Translation: I look forward to joining her to support team Wales and the red wall next week. Thank you.)
Mr Speaker
That completes Welsh questions. Before we come to Prime Minister’s questions, I point out that the British Sign Language interpretation of proceedings is available to watch on parliamentlive.tv.
Oral Answers to Questions
David T C Davies Excerpts(2 years ago)
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Martyn Day (Linlithgow and East Falkirk) (SNP)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
We have taken action to support households and businesses across Great Britain, including Wales, through schemes such as the energy bill relief scheme and the £400 energy bill rebate. The Welsh Government have been very well funded to deliver their devolved responsibilities, with the largest ever block grant of £18 billion in the 2021 spending review.
Stuart C. McDonald
The Secretary of State’s U-turn during the Tory leadership election was indeed truly eye-catching, but the U-turn about which people in Wales are most concerned at the moment is the Government’s U-turn on properly protecting benefits and pensions against skyrocketing inflation. Will the Minister be U-turning on that commitment as well, or will he fight the good fight in favour of proper uprating?
David T. C. Davies
This Government will always be committed to supporting the least well off, which is why we have come forward with schemes such as the £650 payment for those on benefits, the £300 for pensioner households and the £150 for those who are disabled. If the hon. Gentleman is really worried about the cost of living, perhaps it is time he persuaded his Government to start supporting new nuclear and the new oil and gas fields that we so desperately need for the energy that people want.
David Linden
I have just come from chairing the all-party parliamentary group on poverty, which has heard that the cost of living crisis will exacerbate the digital divides experienced by so many people in poorer communities. Will the Minister agree to meet the APPG to discuss how that affects people in Carmarthenshire, in Carmyle, and throughout these islands?
David T. C. Davies
I meet stakeholders who are dealing with poverty all the time, but if the hon. Gentleman is interested in dealing with poverty, perhaps he will be able to find out from his own Scottish National party Government why poverty levels in Scotland are rising, and why even the Labour party in Wales is making a better job of dealing with child poverty than his Government.
Patricia Gibson
The Secretary of State loves to tell a good story, does he not? The UK Government have already slashed devolved budgets by billions this financial year, and on Monday the Chancellor announced that plans for the millions of pounds that were meant to go to devolved nations for cost of living support were now to be abandoned. How does the Secretary of State think that slashing devolved budgets supports the supposed levelling-up agenda?
David T. C. Davies
The hon. Lady gave me a bit of a promotion there; I am the Minister, not the Secretary of State. I am not telling stories. The figures about child poverty in Scotland come from Audit Scotland, which is responsible to the Scottish Government. I suggest that she takes a look at the other figures, which show that far from cutting Wales’s devolved budget the UK Government have increased it every single year, and did so by £2 billion in the last financial year.
Martyn Day
Hundreds of thousands will find themselves in fuel poverty should average energy costs rise next April to the estimated £4,347 a year, as a result of the Government rowing back on their own proposals. How can the Minister claim that his party is fighting the cost of living crisis, when his Government are cutting back on the few measures that they have announced before they are even implemented?
David T. C. Davies
I am afraid that I did not hear all of the question, but I believe the hon. Gentleman mentioned fuel poverty. I remind him again that the Government are doing everything possible to ensure that people in this country can access the cheap gas, cheap electricity and cheap petrol that they need. It is members of his Government in Scotland who are doing their best to prevent that from happening.
Stephen Crabb (Preseli Pembrokeshire) (Con)
In welcoming the contributions from our friends from the Scottish National party to Wales questions, may I politely remind them that in March 2020 the Government stepped in to save thousands of businesses in every single one of our constituencies, protecting hundreds of thousands of jobs? Does that not demonstrate the value of staying part of a strong United Kingdom, and that the Government do not walk away from serious challenges but meet them head on?
David T. C. Davies
My right hon. Friend makes an excellent point. I could not put it better myself. The Government will stand up for the Union, and for the least well-off in society.
Virginia Crosbie (Ynys Môn) (Con)
Nearly 60% of my constituents on Ynys Môn rely on off-grid energy for heating. The average cost of filling an oil tank has almost doubled in the last year. On behalf of my constituents, will the Minister look at more targeted support for those on off-grid heating and liquefied petroleum gas?
David T. C. Davies
My hon. Friend makes a very important point. The Government have already come through with a £100 payment for those who are off-grid, but I believe that there are genuine issues there, and she makes a very good point. I am sure that our colleagues in the Department for Business, Energy and Industrial Strategy and the Treasury will look carefully at what she has said.
Alun Cairns (Vale of Glamorgan) (Con)
The Minister referred to the significant increases in the Welsh block grant over the past 10 years, which equate to £120 for every £100 spent in England. In spite of that very fair settlement, accepted and recognised by the Welsh Government, health waiting lists are longer, education standards are falling compared with the rest of the United Kingdom, and the economy is growing at a much slower pace. Does he agree that the Welsh Government need to focus on the right priorities: investing in public services and getting value for money?
David T. C. Davies
My right hon. Friend was responsible for ensuring that the Welsh Government got a more generous package than they had previously—£1.20 for every £1 spent in England. It is therefore very hard to understand why, under a Welsh Labour Government, health service waiting lists and ambulance response times have got longer. People have lower standards of healthcare in Wales than they do under a Conservative-run NHS in England, and Welsh Labour needs to take responsibility for that.
Sarah Green (Chesham and Amersham) (LD)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
The Secretary of State and I regularly engage with Cabinet Ministers on a range of transport measures. Over £340 million has already been provided for rail enhancements in Wales, including at Cardiff Central station and for the electrification of the Severn tunnel.
Sarah Green
Will the Minister explain why Wales is not receiving the £5 billion of consequential funding from HS2 that it is entitled to under the Barnett formula, and will he review that decision, as the Welsh Conservative party is also calling for?
David T. C. Davies
HS2 is of course a UK-wide project, which is partly being brought forward in order to enable the maximum number of people to get out of their cars and on to the trains, to use public transport, which I hope the Liberal Democrats would fully support. At the same time, the UK Government have been spending money to improve not only the rail service in Wales but rail services for travellers who go from Wales into England, such as through the Severn tunnel electrification. The UK Government have an extremely good record on supporting railways in Wales.
Mr David Jones (Clwyd West) (Con)
Avanti trains sometimes trundle along the rail infrastructure of north Wales, but these days it is an increasingly infrequent occurrence. Avanti has provided a shockingly poor service to the people of north Wales, and many of my constituents were deeply unhappy when the Department for Transport decided to extend its franchise for a further six months to give it a further chance. Will my hon. Friend please urge his counterpart in the Department for Transport to make sure this is Avanti’s last chance?
David T. C. Davies
A number of colleagues from north Wales have discussed Avanti’s performance in colourful terms, and I am sure Avanti will have listened to what my right hon. Friend has had to say, as will the Department for Transport, which I can confirm will be assessing Avanti’s performance before any further contracts are given out.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
It seems that rewarding failure is this Government’s guiding principle, and even Conservative Members agree. Avanti West Coast is the worst performing operator on the rail network, but Ministers spent an eye-watering £4 million of taxpayers’ money on bonuses to company executives for
“customer experience and acting as a good operator.”
Does the Minister agree that this is simply not good enough for the businesses and people of north Wales?
David T. C. Davies
I have already said that I accept many concerns have been raised about Avanti’s performance, but it all goes to show why it is important to modernise the rail network across the whole of Wales. That is exactly what the UK Government are doing at the moment.
Chris Elmore (Ogmore) (Lab)
Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
I have frequent discussions with ministerial colleagues on a range of matters, including the cost of living. As I have previously said today, we are supporting households and businesses across Wales with the cost of living challenges, including on energy costs.
Jonathan Edwards
People in Carmarthenshire who are off the gas grid have seen huge increases in heating costs—for oil, LPG and solid fuels. The alternative fuel payment of £100 does not seem to be equivalent to the cap for gas. Will the Minister write to Welsh MPs outlining the methodology used by the British Government to calculate the AFP rate?
David T. C. Davies
I am sure that my Treasury colleagues will be able to help with that, but there is one thing that the hon. Gentleman could do as well if he wants to support people on the cost of living challenges in Wales: persuade his Plaid Cymru colleagues to vote against Welsh Labour’s proposals to revalue council tax bands in Wales, which are going to be catastrophic for the finances of hundreds of thousands of people across Wales.
Wayne David (Caerphilly) (Lab)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
The four Welsh police forces are adequately funded and will receive combined funding of up to £826.7 million in 2022-23, an increase of up to £45.1 million on the previous financial year. Gwent’s funding will be up to £159.1 million, an increase of £9.1 million on the previous financial year.
Wayne David
South Wales police’s area contains Cardiff, the capital city of Wales, yet it gets no extra resources for the extra responsibilities that comes with that. Will the Secretary of State make representations to his Government colleagues to address this anomaly?
David T. C. Davies
South Wales police’s funding will be up to £352.5 in 2022-23, an increase of £19 million on the previous financial year. If the hon. Gentleman wants to do something to support police forces in Wales, may I suggest that he talks to the Welsh Labour Government about their failure to hand over the apprenticeship levy, which is being held back by them and should be passed on to police forces so that—[Interruption.]
Mr Speaker
Order. When somebody is answering the question, will Members please wait until it has been completed? Mr Davies was answering Mr David’s question. I call Selaine Saxby.
Dr James Davies (Vale of Clwyd) (Con)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
The Wales Office has been fully supporting the north Wales growth deal as it begins to deliver projects on the ground, and my officials will work closely with all partners in north Wales to ensure that the deal continues to deliver growth and investment across the region.
Dr James Davies
I thank my hon. Friend for that answer. Perhaps inevitably, not all projects initially identified for delivery through the north Wales growth deal can be progressed, and that applies to the Bodelwyddan key strategic site. Will he encourage a flexible approach to diverting the £10 million of funds that had been earmarked to Bodelwyddan to other economic development projects within Denbighshire?
David T. C. Davies
Obviously, it is for Ambition North Wales to bring forward projects for the UK Government and the Welsh Government to approve, but we have taken a very flexible view of the whole thing. I assure my hon. Friend that despite the international financial problems, which all countries are facing at the moment, this Government remain absolutely committed to support jobs, driving growth and levelling up across the whole of the United Kingdom, including in his constituency.
Bob Blackman (Harrow East) (Con)
Oral Answers to Questions
David T C Davies Excerpts(2 years, 4 months ago)
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Craig Williams (Montgomeryshire) (Con)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
The UK Government will continue to work closely with the devolved Administrations to ensure that everyone across the UK gets the healthcare they need. There is a memorandum of understanding with the Welsh NHS, which has been essential in resolving a number of long-standing issues over patients’ rights across the border.
Craig Williams
I thank the Minister for that answer, and I am delighted that my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) is to the left of me. We have been working hard to try to get the Welsh Government and the Department of Health and Social Care together to talk about ambulance times. My constituents are suffering, because if they get into a Welsh ambulance or an English ambulance, they still go to the same district general hospital in Shrewsbury. Will the Minister pull together the two Governments to talk about ambulance waiting times in Shrewsbury?
David T. C. Davies
I would certainly be happy to write to the Department of Health and Social Care. I am afraid that I am not responsible for the Welsh Government, but I would be pleased to see them working harder to ensure that patients in his constituency get access to the healthcare they need. For 21 years, the NHS in Wales has been run by the Labour party, and one in four people are now waiting more than 12 months for treatment, and that is an absolute disgrace that Opposition Members are responsible for.
Alison McGovern (Wirral South) (Lab)
It is a bit farcical to be asking questions of Ministers when we have no idea whether they will still be at the Dispatch Box by the end of the day, but I will give it a go. Those in Wrexham need to get easily to Clatterbridge Cancer Centre in my constituency for specialist cancer care, and at the moment it is too hard because of the quality of public service. Will the Minister, before he leaves—maybe he is going to stay—give my constituents and people in north Wales an update on progress on the Wrexham-Bidston railway line?
David T. C. Davies
The Wrexham-Bidston line is one of a number of lines that are being looked at, including the south Wales relief line and the north Wales coast line. The reality is that constituents in Wales are fed up with having to wait more than 12 months for treatment, and the reason for that is 21 years of Labour Government running the NHS in Wales. Their record is an absolute disgrace.
Theresa Villiers (Chipping Barnet) (Con)
Mr Philip Hollobone (Kettering) (Con)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
My ministerial colleagues and I fully accept that there is a cost of living challenge, but this country has faced some exceptional challenges over the past few years, including a global pandemic and a European land war. We have responded vigorously by providing £37 billion to help households across the UK through these challenges.
Theresa Villiers
Does the Minister agree that the best way to help people in Wales with the cost of living is to deliver our long-term plan to grow the economy, increase productivity and reduce people’s taxes?
David T. C. Davies
I agree completely with my right hon. Friend. Households across the whole United Kingdom will be receiving a cost of living support payment worth £650 this month. By contrast the Welsh Labour Government want to spend £100 million to increase the number of Welsh Senedd Members. Some people believe in levelling up, but I am afraid that Opposition Members believe in leaving people behind and spending more money on further politicians.
Mr Hollobone
Across the UK, 8 million low-income households will get £1,200 in financial support to help with rising electricity and gas bills. Would not the £100 million being spent by the Welsh Government on extra politicians in Cardiff be better directed at helping those families?
David T. C. Davies
I fully agree with my hon. Friend. Not only will households receive an extra £1,200, but next week, 8 million households on means-tested benefits will get an extra £326 in their bank accounts; in September, 6 million people on disability benefits will receive a £150 payment; and in October, £400 will come off households’ energy bills. There is much more to follow, because the Government believe in levelling up, not in spending £100 million on extra Senedd Members.
Dame Nia Griffith (Llanelli) (Lab)
In spite of parliamentary questions, we still have no answers about how people who have their permanent residence in park homes or similar in Wales, who receive their energy bills via a third party, can receive the £400 discount. Will the Minister speak to his ministerial colleagues to sort that out so that those people can receive the money in a timely fashion?
David T. C. Davies
The hon. Lady has not actually contacted me about the issue previously, but it is a reasonable one to raise and I would be happy to see any correspondence from her on it.
Anna McMorrin (Cardiff North) (Lab)
Unsurprisingly, the UK Government have repeatedly broken their promises to fund Wales to the tune of nearly £800 million, and they are blatantly trying to undermine devolution at every opportunity. Can the Minister tell me how that serves the Welsh people when they are struggling with the cost of living crisis? While he is at it, can he tell us why he is still propping up a broken Government who promote an abuser and then lie about it?
David T. C. Davies
That statement is completely incorrect. Prior to Brexit, Wales received around £343 million a year in structural funds and £337 million a year was spent on agriculture. Post Brexit, the sums will be exactly the same. My question is why Opposition Members are still supporting a Government in Wales who have left us with lower education standards; lower standards in healthcare; and more taxes on business, such as a tourism tax and a tax on wine producers. Why do they now want to spend £100 million of taxpayers’ money on extra politicians? Those are the questions to which the people of Wales would like to know the answers.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
The Conservatives’ cost of living crisis is hitting Wales hard. The soaring costs of energy, fuel and food have been compounded by crippling increases in tax and national insurance. The meagre 5p cut to fuel duty has proved wholly inadequate and energy costs are due to rise even further this autumn. It is clear that the Government have run out of not only ideas but Ministers. Will the Minister commit to speaking to whoever holds the post of Chancellor this afternoon about taking immediate further action to tackle the cost of living crisis?
David T. C. Davies
We have already acknowledged that there is a cost of living crisis, which was partly caused by having to spend £400 billion on getting us through the covid pandemic and by a European land war. Of course, we are doing everything we can to support people through these difficult times, which is why we are spending £37 billion on support for hard-hit households and why we have introduced a new 25% energy profits levy on oil and gas companies, which will raise about £5 billion of revenue that will also go to relieving the burden on families.
Sally-Ann Hart (Hastings and Rye) (Con)
Support for the Welsh Economy and Funding for the Devolved Institutions
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The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
Does the hon. Gentleman agree that in the last year for which agricultural funding was calculated, £337 million was spent on agriculture—in 2019 before Brexit— and that in each year afterwards £337 million is being spent? If my figures are correct, Wales has not lost out by one penny as a result of leaving the European Union.
Stephen Kinnock
I thank the Minister for intervening, but these figures are from the House of Commons Library briefing, they have been checked and triple-checked, and the reality is that Wales’s rural communities are £243 million worse off than they should be. If the Minister wishes to contest that claim he is welcome to do so, but those are the facts of the matter.
The Government are also undertaking a game of smoke and mirrors around the pot of money being offered to Wales through the UK shared prosperity fund, which, of course, is replacing EU funding. What is absolutely clear is that over the coming decade and beyond—not just the next three years, which is the commitment that the Government have made, but the next three decades—the funding that Wales receives must match the amount that the EU would have given to Wales. Ahead of us now is a cliff edge. We need guarantees that when the £1.5 billion-a-year UK-wide commitment falls away, the £1.5 billion will continue, and I hope that the Secretary of State will confirm that from the Dispatch Box today. This is an issue of long-term planning that supersedes party politics and manifestos. It is about the key stakeholders who are on the coalface of delivering these shared prosperity fund projects. They need much more long-term planning capability than this three-year cliff edge is allowing them.
It is also essential that the Welsh Government are given a real and meaningful say in how these funds are administered. Devolution must be respected, and it is deeply disappointing that the UK Government are seeking to ride roughshod over fundamental constitutional principles, as manifested in the UK shared prosperity fund and the way in which it works.
It is time that the Conservative Government started to take levelling up seriously. Tory inflation and under-investment risk levelling down communities like mine in Aberavon. The decision not to support the Swansea Bay tidal lagoon, as well as the failure to implement the green steel deal that Labour is proposing, has shown a disregard for parts of our country that are desperately in need of investment and development. This must start with a fairer package of funding for Wales, less smoke and mirrors around budgets, and an emergency budget to meet the Tory cost of living crisis.
Let me end by saying that I agreed wholeheartedly with the right hon. Member for Preseli Pembrokeshire when he said he objected to the “older, sicker, poorer” narrative. We are a proud people: a proud, dynamic, entrepreneurial, innovative people. We are not victims and we are not looking for charity, but we need a level playing field, and that level playing field can only be delivered by a UK Government in Westminster—a Labour UK Government, delivering in partnership with the Welsh Labour Government for the people of Wales.
Jessica Morden (Newport East) (Lab)
It is a pleasure to follow my hon. Friend the Member for Aberavon (Stephen Kinnock), who made an excellent speech. I shall be speaking in a similar vein. I am also grateful to the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for securing the debate, along with the Welsh Affairs Committee, which pressed for it to take place. I greatly miss being a member of the Committee, which does valuable work, not least in sending us copies of the Library briefing for today’s debate. That briefing confirms the decrease in funding for Wales’s final budget, which was disputed earlier by some Members.
In fact, the Welsh Government’s budget over the next three years is likely to be worth at least £600 million less in real terms because of higher than expected inflation. With the outlook for inflation, economic growth and additional funding looking bleak, the spending power of the Welsh Government is likely to deteriorate further, which is why they have called on the UK to update its settlement. As other Members have pointed out, we are also set to lose more than £1 billion of vital EU funding, with the UK Government failing to honour their 2019 election pledge to replace and
“at a minimum match the size of”
EU structural and investment funds.
Against that backdrop, the Welsh Government face even more pressures in seeking to address the cost of living crisis, which should be a priority for all Governments in the UK. However, even in these hard times, the Welsh Government are trying their hardest with what they have at their disposal to help households that are struggling to get by—unlike the UK Government, who are out of ideas and out of touch with what people are really going through; refusing, as others have said, to bring in an emergency budget; and raising taxes during a cost of living crisis.
After Ofgem announced increases to the domestic energy cap, Rebecca Evans, the Welsh Finance Minister, set out a £330 million cost of living package of support, which goes beyond that announced by the UK Government. The Welsh Government provided the £150 cost of living payments to all households in council tax bands A to D and expanded the support to those in higher bands in receipt of council tax reduction. As other hon. Members have said, this included free school meals throughout the Whitsun and summer holidays, and additional funding for the winter fuel support scheme for 2022-23 will ensure that the scheme can once again provide people on low incomes with a non-repayable £200 cash payment towards their energy bills later in the year. That is on top of the Government’s £200 rebates on bills from October.
The average band D council tax bill in England is £167 more than it is in Wales. Even with the stuff that the Government have brought in recently, we pay £17 less in Wales. As has been said, we have a Labour Administration in Wales who are really serious about supporting the public through this perfect storm of rising costs. They stand in stark contrast to this Government and a Chancellor who had to be dragged kicking and screaming into introducing a windfall tax on oil and gas profits to partly fund cost of living support for households.
As the right hon. Member for Preseli Pembrokeshire mentioned, the cost of living crisis in Wales has been made worse by the shortcomings of the benefit system. In its March report, the Welsh Affairs Committee rightly identified that current benefit levels are inadequate and called for an urgent review of the Government’s cruel decision to end the £20-a-week universal credit uplift, as well as a re-evaluation of policies including the five-week wait, the benefit cap, the two-child limit, the bedroom tax, the shared accommodation rate of universal credit for under-35s and the freeze of the local housing allowance rate at March 2020 levels. Everything on that list is relevant to today’s debate, and I would add to it the lower rate of universal credit for under-25s. That has caused hardship for many constituents, with housing associations in Newport East reporting under-25s spending all their universal credit on utility bills and having nothing left for food. It is worth pointing out that cuts to universal credit and working tax credit will take around £286 million out of the Welsh economy, with more Welsh families being hit proportionally harder.
I mentioned the loss of EU funding earlier. The loss of £243 million in rural funding and the £772 million shortfall in EU funding is likely to mean the loss of £1 billion of vital funds. The Minister will be aware of the considerable scepticism that exists around the shared prosperity fund. The Welsh Government have also voiced concerns that the fund will redirect economic development funds away from areas where poverty is most concentrated. My hon. Friend the Member for Rhondda (Chris Bryant) also made that point. This is a missed opportunity to ensure that funding reflects the distinct needs of Welsh communities. The fact that the Welsh Government have been totally ignored in the decision-making functions around the fund appears to be a deliberate attempt to undermine the principles of devolution, as referenced by the Public Accounts Committee in its report.
There has also been frustration with how the levelling-up fund has operated in practice. Only three of the 10 successful Welsh bids for the first round of the fund came from south Wales, and none from Gwent. I urge the UK Government to put this right in the second round and to look carefully at bids such as the one for the regeneration of the town centre in Caldicot, which has cross-party support. Sixteen local authorities in Wales did not benefit from the fund at all in the first round, and it would be interesting to hear what Ministers are doing to address that.
On rail, Wales has 11% of the UK rail network but receives only 2% of rail enhancement funding from the Government. We are now set to miss out on billions of pounds of consequential funding from HS2.
On police funding, no area of the UK has been safe from damaging Tory cuts, but Ministers in this place have shown no recognition of the specific challenges facing Welsh police forces. For example, no Welsh force receives national and international capital city grant funding. That is relevant to Gwent police in my area and that of the Under-Secretary of State for Wales, the hon. Member for Monmouth (David T. C. Davies), which needs to draw on additional resources to support events in Cardiff in the neighbouring South Wales police area, as well as at the international convention centre and Celtic Manor in the constituency of my hon. Friend the Member for Newport West (Ruth Jones).
Similarly, Welsh forces have not been able to utilise their apprenticeship levy contributions in recent years, and they currently pay around £6 million a year more than their English counterparts towards the training of officers. That issue has been raised before in this place, including by my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones), but Ministers have—
Jessica Morden
I will not, on this occasion, because another Member wishes to speak and hon. Members have intervened many times during the debate.
As I was saying, Ministers have incorrectly attempted to pass the buck on to the Welsh Government for that issue. It is not a devolved issue, and it is time Ministers took some responsibility.
There are additional strains on finances that Welsh police forces just do not need, especially when we consider that the headline £5.2 million of extra grant funding for Gwent in the police grant report published earlier this year is effectively written off to fund the long-term costs of the final tranche of the police uplift programme and the 1.25% increase in national insurance contributions. The UK Government continue to leave police forces in Wales to fend for themselves rather than funding them properly.
Finally, it is worth remembering that Government Members have voted to cut the £20 universal credit uplift, voted against free school meals for children during school holidays, voted for an increase in NI contributions and voted against a windfall tax. That is the record they stand on as we debate this estimate.
Jo Stevens (Cardiff Central) (Lab)
I thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), Chair of the Welsh Affairs Committee, for securing this debate and for his excellent chairship of that Committee, which does valuable work for all of us in Wales. I also thank all Members who have contributed to the debate. We have had a number of wide-ranging contributions. This debate must be set in the context of the current economic climate. After 12 years of Conservative Government, with help from the Liberal Democrats for five of those years, we have a high-tax, low-growth economy, with the country suffering the biggest drop in living standards since records began and the highest tax burden since world war two.
The reality is that the Welsh Government’s budget over the spending review period we are discussing is, as has been mentioned, likely to be worth at least £600 million less than it was when it was first announced last autumn, because of that rocketing inflation. As my hon. Friend the Member for Newport East (Jessica Morden) said, the outlook for inflation, economic growth and any additional funding looks very bleak indeed. The spending power of the Welsh Government’s budget is therefore likely to deteriorate further. That is why the Welsh Labour Government have called on the UK Government to update their settlement to reflect the significant impact that inflation is having on important budgets being spent in Wales.
If we look at the UK Government’s record, leaving aside for the moment the squalid nature of the lawbreaking, the sleaze and the U-turns happening day after day, what stands out on spending is that they make many promises and deliver on very few of them. They have made promises to Wales and they have broken them.
Let us start with the explicit manifesto promise in 2019 that Wales would not be a penny worse off when it came to post EU membership replacement funding. We have heard a lot about that today. The Secretary of State and his colleagues have repeated that promise over and over again, but the facts are that Wales is set to lose more than £1 billion of vital funding.
My hon. Friend the Member for Aberavon (Stephen Kinnock), in a tour de force of a speech, went into detail about where the shortfall is placed; it is through the shared prosperity fund, the community renewal fund and the cut to Welsh rural communities. All of that adds up to more than £1 billion less than the Government promised. That is a broken promise to the people of Wales.
Jo Stevens
No, I think the hon. Gentleman has had plenty of interventions today. I will carry on because we are quite short of time.
As for the levelling-up fund, only six Welsh councils saw any benefit from the first round of the fund and just one of them was a Labour council. I will just leave that there, but I wonder why that was. The second round of applications to that fund has been delayed because the Government have not been able to get their application portal ready in time for the original deadline. They cannot even get the basics right on this.
The Government are using the UK Internal Market Act, as we have heard, to take decisions in devolved areas, excluding the Welsh Government from a transparent process of joint decision making for the shared prosperity fund. They are imposing a methodology on Wales for how those limited funds are decided on, which results in money being distributed away from the poorest areas in Wales. The Conservatives refused to countenance the Welsh Government’s alternative funding formula, which would have distributed money more fairly across Wales according to economic need. Let us be clear: this is a far cry from the rhetoric of levelling up and protecting the Union. It is this Prime Minister and this Government who are the greatest threat to the Union.
Turning now to infrastructure funding for Wales, I know the Secretary of State will not like this, but I am again going to raise the classification of HS2 as an England and Wales project by his Government. A £4.6 billion Barnett consequential is not going to Wales. I know he is tired of hearing about it, but it is not just me saying it, or even just Labour. The right hon. Member for Preseli Pembrokeshire, Chair of the Welsh Affairs Committee, agrees. His entire Select Committee agrees in its report. The leader of the Welsh Conservatives agrees—or is the Secretary of State the leader of the Welsh Conservatives? I do not think anybody is really sure.
The Treasury’s rules for evaluating infrastructure projects do not work in the interests of Wales, but have prioritised infrastructure projects in the south-east of England. Costs for HS2 and rail enhancement are allocated to Wales, but none of the benefits apply. In fact, HS2 explicitly disadvantages south Wales. The analysis of the Secretary of State’s own Treasury colleagues confirms that HS2 will result in an economic disadvantage to Wales of about £150 million every year. Because rail infrastructure is not devolved beyond the core valley lines, Wales, unlike Scotland and Northern Ireland, gets a double whammy: no £4.6 billion consequential and an annual economic hit. We have heard that there will be no mainline electrification in north Wales. Mainline electrification from Cardiff to Swansea was promised and then abandoned by the Conservatives. About 2 million tonnes of steel will be used across HS2, but Transport Ministers have confirmed that there is no target for the use of UK steel or Welsh steel in HS2 construction. This is such a missed opportunity for Wales, for Welsh steel jobs and for the people of our steel communities. The Government have got this all wrong and Wales is, literally, paying the price.
This does not just affect transport infrastructure. There are knock-on effects across climate change targets—the need for greater use of public transport and more active travel, with the consequential effects on health and wellbeing—and, critically, on narrowing the economic inequality that Wales suffers compared with other parts of the United Kingdom. As my hon. Friend the Member for Cynon Valley (Beth Winter) said, the truth is that this Government are holding Wales back. They are making decisions that take money from the people who can least afford it. The Conservatives voted to cut the £20 universal credit uplift, voted against free school meals, voted to increase tax during the cost of living crisis, and voted against a windfall tax, until they had to do a screeching U-turn forced by Labour. What is the Prime Minister’s response to the cost of living crisis? We hear today that he has invited the First Ministers of Wales and Scotland to a summit in the autumn—so more delay and more inaction while he focuses entirely on saving his own skin.
Contrast that with what the Welsh Labour Government have been doing, taking decisions that support households in greatest need to mitigate the worst impact of those Conservative Government decisions. The Welsh Government have invested more than double what they have received in consequential funding from the UK Government to support households with the cost of living crisis, and that support has been targeted at those who need it most. About 75% of households are expected to be supported in some way, and nearly twice as much will go to households in the bottom half of the income distribution compared with those in the top half. My hon. Friends the Members for Aberavon, for Newport East and for Cynon Valley spoke about all the measures that the Welsh Labour Government have been taking to help families and businesses in Wales. I would add these to the list: during the pandemic, businesses in Wales were able to access the most generous support package anywhere in the United Kingdom; and through Jobs Growth Wales Plus, over 19,000 young people have been helped into good-quality, meaningful employment across Wales. This is what a Labour Government in Wales deliver, solving the problems the Conservative Government have created.
A UK Labour Government will build a stronger, more secure economy, working hand-in-hand with the Welsh Labour Government for the benefit of everyone in Wales. We will get the cost of living crisis under control and make the whole of Britain more resilient, more secure and more prosperous, laying the foundations for a thriving, dynamic economy.
Oral Answers to Questions
David T C Davies Excerpts(2 years, 5 months ago)
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Paul Holmes (Eastleigh) (Con)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
The Wales Office has worked tirelessly to ensure there will be a freeport, which will deliver jobs and investment into Wales. As announced earlier this month, an agreement has now been reached between the UK and Welsh Governments to deliver that freeport, and this agreement will be backed by millions of pounds of Government funding.
Paul Holmes
I welcome the Government’s decision to have at least one freeport in Wales like the Solent freeport, which covers part of my constituency. Does my hon. Friend agree that, as well as bringing jobs and trade to Wales, it will bring mutual benefits to other freeports, it will be vibrant, and it is a stark reminder of why the Union between Wales and England is so important?
David T. C. Davies
I agree with both of those excellent points. We have already seen that the Thames freeport has suggested that there will be 21,000 jobs directly and indirectly created, so we know that the Welsh freeport will deliver jobs. I also agree that it is going to be good for the Union and good for Wales to have vessels of all kinds coming from all over the world, bringing their jobs and investment with them, including perhaps from across the Union—we may even look forward to seeing a few ferries from Scotland, if the SNP Government can actually get around to building them.
Ruth Jones (Newport West) (Lab)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
My ministerial colleagues and I fully acknowledge that there is a cost of living challenge, which has been caused by a combination of the covid-19 pandemic and the war in Ukraine. That is why we are providing £22 billion for households across the UK to try to get through this crisis.
Ruth Jones
The people of Newport West are facing the harsh effects of this Government’s failure to tackle the cost of living crisis. My constituent Hettie contacted my office because she is a single mum of two and must choose between food and heating. Both her cooker and her hot water are gas, so as the prices rise so do her bills. She works, in her words, “Every hour possible”. She is scared for her and her children’s future, and she is not alone. Local people need to see real action. If Tory Ministers will not take any fiscal steps, will the Minister do what many people in Newport West want and back a windfall tax on oil and gas companies?
David T. C. Davies
Taxes are a matter for the Chancellor, but what I can say is that I absolutely acknowledge that there is a challenge at the moment, which has been brought about by the international situation. That is why the Government are putting £22 billion aside. It is why they have changed universal credit to help people such as the hon. Lady’s constituent who are out working, and why we have increased the minimum wage. It is why national insurance contributions are going to fall, we have extended the warm home discount and put in place a whole package of other measures. While we are spending money helping people get through the cost of living challenge, the Welsh Government are spending money buying up farms in mid-Wales and increasing the number of Senedd Members.
Marco Longhi (Dudley North) (Con)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
The Wales Office works closely with the Department for International Trade to promote the excellent opportunities that there are to invest in Wales. Wales is an attractive destination for foreign companies to come to, to invest in and to create jobs in, as we have seen with the continued support from companies such as Airbus, which only recently announced plans to increase wing production in Broughton.
Marco Longhi
As the trade envoy to Brazil, I see the huge economic growth opportunities for both the UK and Brazil in the post-Brexit and post-pandemic environment. Does my hon. Friend agree that, like Dudley North, Wales plays a huge part in UK plc and that therefore we want to see the Welsh dragon flying just as proudly as the Black Country flag?
David T. C. Davies
I am delighted to say that Wales has an excellent trading relationship with Brazil. In 2021, we exported nearly £85 million-worth of goods to the country, while importing £165 million-worth of goods. Wales has good trade and investment with countries across the world. We have seen 72 direct investments in the last financial year, with 1,500 jobs created. Only last week, the Secretary of State for Wales and I were with the Member for the Vale of Glamorgan looking at the new Aston Martin supercar factory in the Vale of Glamorgan.
Chris Elmore (Ogmore) (Lab)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
The Secretary of State for Wales and I have regular discussions with ministerial colleagues on free trade arrangements. The Wales Office works closely with the Department for International Trade to ensure that Wales will enjoy the benefits that will flood in both directions from free trade deals with Australia and New Zealand.
Chris Elmore
The Government’s own impact assessment states that the Australia and New Zealand FTAs will see a reduction in gross value added in agriculture of more than £142 million. The measures are likely to have a disproportionate impact on Welsh agriculture because of its reliance on livestock and dairy farming. NFU Cymru is calling for Wales-specific impact assessments, so will the Minister ensure that they are delivered and that he starts working for Welsh farmers, rather than undercutting them and destroying the industry?
David T. C. Davies
I cannot really accept what the hon. Gentleman says. We were able to import lamb, beef and other kinds of food from Australia and New Zealand when we were members of the European Union. Both countries had an agreement that allowed them to export goods to us without paying tariffs, up to a certain quota, and the fact of the matter is that they never met that quota. It is a bit of a myth that there is cheap beef and lamb in Australia and New Zealand; anyone who wants to look at a website can see what people pay for those goods in Australian and New Zealand supermarkets. They have no plans to increase their flocks or herds. The trade deals that have been agreed are going to be good for farmers and for industry more widely throughout Wales.