Wales: Additional Financial Resources

Lord Morris of Aberavon Excerpts

Wednesday 18th January 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, we have a difference of opinion on the figures. That might be because government budgets are routinely translated into real terms using the GDP deflator, by both the Treasury and independent bodies such as the OBR and the IFS. Using those figures, we see that the Welsh spending settlement is still growing in real terms this year and over the spending review period, even after the higher costs, and we believe that the Welsh Government are well funded to meet their obligations.

[Lord Morris of Aberavon (Lab)]

My Lords, have the Government any intention at all of reforming the Barnett formula in this Parliament? Would such a reform not be a levelling up that the Government aspire to?

[Baroness Penn (Con)]

My Lords, the fiscal framework between the UK and the Welsh Governments was agreed in 2016; that added a needs-based factor into the Barnett formula to ensure that Wales receives fair funding. It receives at least 15% more funding per person than the equivalent UK government spending in the rest of the UK. In fact, in the current spending review period, that additional amount is 20%.

Queen’s Speech

Lord Morris of Aberavon Excerpts

Wednesday 25th May 2016 Lords Chamber

[Lord Morris of Aberavon (Lab)]

My Lords, as a presumptuous new MP, I commented in the Queens’s Speech debate in 1959 on the need for a bypass to serve the area of Port Talbot steel and the south Wales economy generally. I return in tonight’s debate to a greater issue: the whole future of the steel industry in Port Talbot, which is a vital part of the economy in south Wales. I am glad that the Business Secretary has found time to be present in Mumbai today, when fateful decisions may be taken, with whatever support Her Majesty’s Government are able to give. That is in contrast with the role of union leaders and my successor but one as MP, Stephen Kinnock, who were aware of the importance of the last board meeting in Mumbai. They are to be congratulated. They observed the first rule of Welsh politics: be there. The Minister’s advisers seemed not to be aware of the speed of the developments revealed, or the Minister, regrettably, put his own diary and convenience first. I welcome very much the change in his priorities, and the presence of Carwyn Jones, the First Minister.

As a junior Minister, I supervised the writing of the White Paper to bring steel into public ownership. The main reason for public ownership was the cyclical nature of the market for steel, with years of plenty followed by years of famine, as in the Bible itself. Stability was essential for British steel production.

The first question for the Government to answer is: do they believe in the need for a British steel industry? Many years ago, believe it or not, this was challenged in the Economist magazine. If we do believe in that need, what should be the basis of decisions to ensure that British steel production continues in its various forms, and who should take them?

Secondly, how have we come to a position where the whole future of steel-making in Port Talbot is under threat? Is it because of Chinese dumping, the extra costs that British steel has to bear for energy, business rating, or some other reason? Has the Commission in Brussels acted too leisurely to meet the challenge of Chinese dumping which has developed over the years, or has there been lack of direction and rigour on the part of the British Government in making representations? How does the action taken in Brussels and here compare with that of the United States, which, we are told, has increased tariffs by more than 500% and doubled those on cold rolled steel from China? How significant is the EU’s 16% provisional tariff? The Business Secretary is reported as saying that it would not be right for the EU to scrap the lesser duty rule. There it is. How do we compare with the States?

I wish the proceedings in Mumbai today well. I hope that we get something significant from them. But the problem of dumping will remain. What Port Talbot needs is a level playing field. Is it true that the Government have offered to pump in hundreds of millions by way of a loan and a 25% stake in the industry to avoid Port Talbot closing before referendum day? I marvel at how the approach of the referendum and the Government’s need not to make enemies now is having such wide repercussions, including, mercifully, the emasculation of the Trade Union Bill.

One question of general significance remains: how do major companies—this is not the only one—amass huge unfunded pension liabilities without inhibition? This particular pension deficit seems to be a stumbling block for buyers. I welcome the reported comments of Community Union that there needs to be swifter and more robust action by the EU. I tried in this House, by way of a Question, to find out when the Government first took action. The replies were unimpressive. I was told:

“The government makes regular representations to the … Commission”.

The pleas of high energy users such as the steel and paper industries were not listened to in the past. How far is a balanced view being taken of a fair energy policy for high energy users, coupled with our obligations to prevent climate change? Surely the danger of destroying whole industries should not be ignored.

Lastly, how far has a business rate for Port Talbot steel militated against its economic survival? I thought the rating for the new harbour, the basis of Port Talbot’s survival, had been fixed years ago. What happened in the intervening years? I hope the Minister will expand on his answers by letter to me, and will place that in the Library.

Spending Review

Lord Morris of Aberavon Excerpts

Wednesday 26th June 2013 Lords Chamber

[Lord Deighton]

I thank the noble Lord for raising this important issue. It is the Government’s intention to implement the recommendations of the Richard review, which will see through the apprentice programme. It sits very neatly alongside the success that we have seen over the past four years, with the private sector picking up and generating employment to compensate for the small number of losses in the public sector. A strong apprentice programme sits very nicely with that.

[Lord Morris of Aberavon]

My Lords, will the Minister comment on whether the Government have fulfilled all their statutory obligations, in particular the Public Bodies Act 2011, in their spending review decisions?

[Lord Deighton]

My Lords, I am working on the assumption that we have fulfilled those, but I am sure somebody will tell me very quickly if we have not. It is not a stipulation I am familiar with.

Royal Bank of Scotland: LIBOR

Lord Morris of Aberavon Excerpts

Wednesday 4th July 2012 Lords Chamber

[Lord Sassoon]

My Lords, I was looking at the setting of one of the rates the other day, and there is a panel of 18 banks. I think that is typical of the number of currencies and the different time horizons, so it is of the order of 18 or so banks on each one. Of course, they are typically the complete spread of global banks. It is by no means an activity of UK banks, notwithstanding the name of the rate.

[Lord Morris of Aberavon]

My Lords—

[Lord Davies of Stamford]

My Lords, at the heart of the LIBOR scandal we now have a classic conflict of evidence—

--- Later in debate ---

[Lord Morris of Aberavon]

Will the Minister confirm that the legal provisions for the offences—

[Lord Davies of Stamford]

I have already given way once. Tucker is saying one thing and Diamond is saying another, so one or other of them must be lying. On the outcome—

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

When two noble Lords are trying to speak at the same time one really ought to give way to the other. They are both from the Labour Party so perhaps they ought to decide among themselves.

[Lord Morris of Aberavon]

Will the Minister confirm that the legal provisions for the offences of conspiracy to defraud and false accounting are sufficiently wide to cover most, if not all, of the wrongdoing in this field?

[Lord Sassoon]

The noble and learned Lord clearly points to a couple of very important offences in this area, but in the various inquiries that my right honourable friends have announced we also want to see whether there are any gaps. There is one obvious and glaring gap, which a Front-Bench spokesman from the Opposition conceded a couple of days ago, in that FiSMA is defective in the sense of not allowing direct prosecution for LIBOR fixing under the regime, and that needs to be put right.

FSA Investigation into LIBOR

Lord Morris of Aberavon Excerpts

Thursday 28th June 2012 Lords Chamber

[Lord Morris of Aberavon]

My Lords, when I was a young barrister, I occasionally prosecuted, on behalf of the Board of Trade, persons thought to be unfit to be directors of a public company. Those cases, as I recollect, were not all that difficult. The Minister has mentioned criminal sanctions, where of course the burden of proof is the usual one and it is high. Without prejudice to a particular case, is similar procedure still available to prevent directors holding positions in future on the grounds of unfitness?

[Lord Sassoon]

My Lords, I am grateful to the noble and learned Lord. As I said, we have concerns about the question of directors, particularly directors of banks, to make sure that the regime is appropriate and tough enough. The regime for directors of banks, because of the special nature of their role, should be looked at on its own merits. That is why it is timely that the RBS report and consultation, going very much to this point, will be published next week by the Treasury. I hope that we will get a debate going about what is appropriate in terms of the special regime that might be appropriate for directors of failed banks if they are shown to have behaved negligently.