Welsh Affairs

Debate between Lord Davies of Gower and Gerald Jones

Thursday 3rd March 2016 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

I congratulate my hon. Friend the Member for Aberavon (Stephen Kinnock) on securing this important debate on Welsh affairs, which marks St David’s day.

I would like to focus on three issues, albeit briefly. First, there is no doubt that Wales has been hit hard by the UK Tory Government’s austerity measures. In my constituency advice surgeries, the most common theme is the hardship people face due to the welfare reform agenda being pursued by the Tory Government. I think there are Tory Members who do not understand the situation people find themselves in.

Specifically, the spare room subsidy, or bedroom tax, is harming people in my constituency and across Wales. A report by the Welsh Affairs Committee in 2013 showed that Wales was disproportionately affected compared with the rest of Britain, and that remains the case. This tax is, quite frankly, the most unfair and pernicious since Margaret Thatcher’s poll tax.

I have spoken with staff at my local citizens advice bureau in Merthyr Tydfil, who have told me about the many cases they regularly see coming through their doors—people who have nowhere else to turn. Those clients already have a number of other significant issues in their lives, and the bedroom tax only adds to them. Some of those people are now in rent arrears because of it, and some could lose their homes. That could have massive consequences, and for those who are physically or mentally disabled, it could result in even more severe issues, such as homelessness, suicidal thoughts, substance misuse or further debt—a downward spiral.

Unfortunately, in many communities in my constituency, there is not a huge number of smaller properties. Therefore, people affected by the bedroom tax decide either to stay in their property, thus incurring a financial penalty and placing great strain on their ability to manage, or to move to a smaller property, which can often be in a village some miles away. I have spoken with constituents who are in debt for the first time because of having to pay the bedroom tax. Food bank usage has increased massively, which is totally unacceptable in 21st-century Britain.

The second issue I want to focus on is the forthcoming EU referendum. As other Members, including my hon. Friends the Members for Aberavon and for Neath (Christina Rees), have outlined, Wales has benefited considerably from EU investment. Projects right across Wales have been delivered using EU funding, which is vital in helping to create a skilled and inclusive labour market and in driving economic prosperity.

[Byron Davies]

When we had the first round of funding, the then First Minister, Rhodri Morgan, said it was a once-in-a-lifetime opportunity, but here we are now with a third round of funding. Would the hon. Gentleman like to comment on that?

[Gerald Jones]

EU funding is important, and it has benefited Wales considerably—the evidence is there in terms of jobs and the businesses that have been supported—but there is still work to do. [Interruption.] If I may, I will carry on.

A key example of the projects I mentioned is the Welsh Labour Government’s Jobs Growth Wales fund, which has supported more than 15,000 young people across Wales since 2012, when it was created in response to the Tories’ scrapping of the future jobs fund. Using £25 million of European funding, the programme has supported countless young people. There are many more examples of how the EU has benefited Wales, which is why it is so important for Wales that the UK remains a strong part of the EU.

I turn now to the Wales Bill. As the party that established the Welsh Assembly, the Labour party supports the additional powers for Wales proposed in the draft Bill, but we had significant concerns about how the Assembly’s powers were rolled back in other parts of the Bill. It is fair to say that the draft Bill was not met with universal support. In fact, despite the Welsh Affairs Committee having witnesses from various aspects of Welsh life, it was a struggle to find anyone who had anything positive to say about it. I am pleased that the Secretary of State has finally listened to the overwhelming body of evidence from experts, lawyers and politicians from all parties, and to the Committee’s recent report. The Bill is deeply flawed and I welcome the fact that he is now not pushing ahead with it in its current form. Labour Members have been raising concerns about the Bill since its publication last October. If those concerns had been listened to then, perhaps we would not be in this situation now. Only last month, in the Welsh Grand Committee, many of the same concerns were again raised with the Secretary of State, who at that point, just a few short weeks ago, was defending many of the provisions he now seems to have binned.

It is only fair, right and proper that Members of this House, and indeed members of the Welsh Affairs Committee, have clarity about the detail of what the Secretary of State announced on Monday. Specifically, we need to know if anything is going to replace the necessity test, what system will be used for Minister of the Crown consents, and how different the list of reservations will be. It is imperative that the Secretary of State gets the Bill right this time and sticks to a timetable. Any delay means a consequent delay in the powers being transferred to the Welsh Assembly. It is also important that the Secretary of State and the Government fully consult the Welsh Government to iron out the practicalities.

The fact that the Secretary of State has presented a radically different Bill from the one that the Select Committee scrutinised may be problematic. The Committee’s report states:

“Whilst this pre-legislative process has flushed out views, it has also made it apparent that the final Bill will be significantly different to that which we have been scrutinising. That is wrong. Whilst changes and improvements are what this process seeks to provide, the weight of the evidence we received has meant we have had to focus on fundamental principles of the draft Bill rather than the specifics of the text. The Government should have focused its effort on resolving these matters of principle, before proceeding with a draft Bill.”

The Secretary of State said that he wanted a lasting devolution settlement that would resolve the constitutional situation for a generation, and I am sure that is what we all want. The best way to get it is to consult and negotiate with all stakeholders, such as the Welsh Government, the Welsh public sector, and other key interested parties to get broad agreement on the direction of travel and iron out the practical difficulties and issues. Ideally that should have been done before the Bill was put to this House, but it should be done now. The Bill is deeply flawed as it stands, and progress is needed. I urge the Secretary of State—who is now, thankfully, in his place—to get things back on track.