Oral Answers to Questions

Geraint Davies Excerpts

Wednesday 18th November 2015 Commons Chamber

[Stephen Crabb]

My hon. Friend makes an important point, not least about the importance of investing in technology. If we are to drive up prosperity in Wales, we need more growth in higher technology. This afternoon, I am proud to be helping to launch a new compound semiconductor centre for IQE and Cardiff University. That is emblematic of the changes in the Welsh economy.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Twenty-five thousand jobs in Swansea bay city region rely on being in the single market. Swansea is, of course, in the convergence funding area. Will the Secretary of State support Swansea bay city region MPs’ bid to get the new tax centre for Wales in Swansea bay city region, given that it is an area of relative deprivation, and not Cardiff?

[Stephen Crabb]

Exciting things are happening in Swansea and the Swansea bay city region. I am delighted that Swansea MPs are working together. If they have a proposal about future changes to the delivery of Government services, with opportunities for Swansea, I ask them please to send them through and we will consider them.

Steel Industry

Geraint Davies Excerpts

Wednesday 28th October 2015 Commons Chamber

[Ms Eagle]

The hon. Lady is correct. Many EU Governments manage to deal with the state aid rules far more creatively than this Government.

[Geraint Davies (Swansea West) (Lab/Co-op)]

On the EU helping out, does my hon. Friend agree that there is a strong case for carbon tariffs from the EU so that we do not displace clean steel produced in Britain with dirty steel produced in China and elsewhere?

[Ms Eagle]

My hon. Friend’s practical suggestion should be considered with great seriousness not only by the Government but by the EU.

The steel summit in Rotherham was convened only following the Backbench Business Committee debate, and it ended with more job losses and no significant Government announcements. Far from keeping the House informed as the crisis has unfolded, the Government have had to be dragged kicking and screaming to the House to answer urgent question after urgent question.

Steel is an energy intensive industry that inevitably results in extra costs being placed on it for environmental reasons, but the Government have the power to lower energy costs for steel producers through implementing the energy intensive industry compensation package immediately.

--- Later in debate ---

[Stephen Crabb]

I am not going to take any more interventions for the time being.

The steel industry across Europe and around the world is in the midst of a crisis, the magnitude of which has not been seen in at least a generation. Chronic global overcapacity has squeezed prices to the extent that the price of certain products has halved in recent times and is expected to fall further still. European demand is still about 30% below pre-crisis levels. The Chinese economy, which has until recently been the driver behind global steel demand, is slowing down. The world is awash with cheap steel looking for markets. For some products, cheap Chinese imports have gone from accounting for 0% of the market to representing 37% of the UK market share within 18 months—that is an extraordinary growth in a very short period. Chinese steel exports roughly doubled between 2011 and 2014. That is the extremely challenging backdrop to the current crisis facing our steelworkers. It has been described as a “perfect storm” in terms of the configuration of different events and phenomena that are affecting the global steel industry, but that is why the Government remain absolutely committed to doing everything in our power to support steelworkers across Britain in the weeks, months and years ahead.

[Geraint Davies]

Does the right hon. Gentleman accept that giving the contract on HS2 to the Chinese will increase the probability that they will use Chinese steel? Moreover, if we had given that contract to a British consortium, those companies would have paid British corporation tax, British national insurance and British income tax, and they would have supported British supply chains and built British capacity for the future. Is not his laissez-faire approach, which has neglected British steel and British industry, at the root of this problem—or a large part of it at least?

[Stephen Crabb]

Forgive me for saying so, but the hon. Gentleman makes a slightly confused point. The investment going into the rail industry is creating opportunities, now and in the future—huge opportunities for the UK steel industry. The Government are determined to help the UK steel industry take advantage of those investment opportunities.

Oral Answers to Questions

Geraint Davies Excerpts

Wednesday 16th September 2015 Commons Chamber

[Stephen Crabb]

What matters above all else is our commitment, from the Prime Minister downwards, to completing the project. Opposition Members have expressed a lot of concern about the progress of the project. If they do not believe it is happening, I would encourage the hon. Lady and her colleagues to walk the length of the route, because they will see work happening right now to deliver this really important project.

[Geraint Davies (Swansea West) (Lab/Co-op)]

14. Will the Secretary of State give a cast-iron guarantee, here and now, that in his review Sir Peter Hendy, the newly appointed chief executive of Network Rail, will not look again at stopping the electrification of the line to Cardiff and having dual fuel from Cardiff to Swansea?

[Stephen Crabb]

I am not sure the hon. Gentleman quite knows about these issues. We are totally committed—I cannot be clearer than that—to electrifying the Great Western line all the way through to Swansea, as part of a programme of infrastructure investment bigger than anything this country has seen since the days of Isambard Kingdom Brunel.

Oral Answers to Questions

Geraint Davies Excerpts

Wednesday 17th June 2015 Commons Chamber

[Alun Cairns]

My hon. Friend makes an important point. Renishaw, which is in his constituency, is doing exceptionally well in Wales, including, I should add, in my constituency. It is providing the higher engineering skills and investment that we are seeing across the United Kingdom and beyond.

My hon. Friend makes an important point about STEM subjects. He will welcome the establishment of the STEMNET UK-wide network of volunteer ambassadors to support STEM careers. Additional funding of £6.3 million has been provided to support the network.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Wales’s output per head amounts to 70% of the United Kingdom average, which explains why we have the lowest wages in Britain yet some of the largest cuts. What is the Minister doing to ensure that we have our fair share of investment in engineering, in order to boost productivity, boost wages, and boost family incomes for once?

[Alun Cairns]

I am surprised to hear that question from the hon. Gentleman. After all, it was his party that left Wales the poorest part of the United Kingdom. Since then, it has become the fastest-growing part of the United Kingdom, and the UK is the fastest-growing nation in the G7. He ought to welcome that, along with the fact that wages and gross domestic household income are growing faster in Wales than in any other part of the United Kingdom. However, we will further improve both productivity and wealth through significant infrastructure spending.

--- Later in debate ---

[Mr Osborne]

I can confirm that 3 million apprenticeships is the objective of this Government in this Parliament, building on our success of providing 2 million apprenticeships in the last Parliament. I think the whole House will want to congratulate my hon. Friend on becoming the apprenticeships adviser to the Prime Minister. He has a very important role to play, because there are many great companies who run great apprenticeship programmes, but not enough companies do have apprenticeship programmes. I hope they will receive a knock on the door from my hon. Friend.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Q5. Will the Chancellor confirm that the waste water from fracking will be properly treated, so that it is safe to drink again?

[Mr Osborne]

We will have the proper environmental standards around the exploration of shale gas, but I think for this country to turn its back on one of these great natural resources, which other countries are using, would be to condemn our country to higher energy bills and not as many jobs. Frankly, I do not want to be part of a generation that says, “All the economic activity was happening somewhere else in the world, and was not happening in our country, and was not happening on our continent.” So we should get on with the safe, environmentally protected exploration of our shale gas resources.