Government Policies (Wales)

Debate between Lord Murphy of Torfaen and Stephen Crabb

Wednesday 26th November 2014 Commons Chamber

[Paul Murphy]

I fancy it is because of the money that has been cut from the budget generally, because of what the Government here are doing by reducing the amount of money that is coming through the block grant. The Secretary of State actually said somewhere in his speech—he is getting a bit like his boss now, making things up from time to time—that there was no inward investment in Wales in 13 years of the Labour Government. That is rubbish—of course there was inward investment in Wales during those 13 years. As Secretary of State, I went around talking to firms that had benefited from inward investment and so on.

[Stephen Crabb]

I did not actually say that, and I apologise if I did give that impression. The point I was making was that there was a collapse in the inward investment: compared with what we had seen in the ’80s and ’90s, there was a huge decline over that 13-year period in the amount of inward investment coming to Wales. Thankfully, with the Welsh Government and UK Government working together, we are seeing that go back up.

[Paul Murphy]

The Welsh Government are certainly doing it, because foreign investment in Wales has increased by 30% whereas the figure for England is 10%—I rather suspect the work of the Welsh Government has made the difference.

The other issue the Secretary of State has to take into account is the welfare policies of the Government. In effect, those changes in Wales are doing two things that are detrimental to the people of Wales. I agree with reforming the welfare agenda and I agree that we should not have workless families in Wales—we all agree on that—but the great brunt of the cost of these welfare reforms often falls not on those who are out of work but on those who are in work. Those people in work are suffering sometimes more than anybody else.

Last week’s report by Sheffield Hallam university showed graphically how the south Wales valleys have been hit harder by welfare reform than any other part of the United Kingdom. We can talk about the impact on individuals, which is catastrophic, but we can also talk about the sucking out of the local economies the money that would have gone in had these people still been receiving these benefits. The reforms will cost £34 million a year in my constituency alone, and the average loss of income per working age adult in Torfaen is nearly £600 a year—in one ward, Trevethin, the figure is £850. Some 3,000 jobs in the south Wales valleys could have been created but for the impact of these so-called welfare reforms put in place over the past few months and years, which have been pretty botched.

Finally, I wish to refer to the bedroom tax and make no apology for doing so. One of the first things the new Labour Government will do is abolish it, and everybody in Wales will cheer. Not only is it cruel and wicked, but it is not working. Some 20% of housing benefit claimants in my constituency are affected. In the first year of the policy Bron Afon, which runs social housing, had 268 tenants fall into arrears; we are talking about some £63,000 of arrears that people never had before until this came about. That is not helping anybody. It does not help the tenants, the local authority or the social landlords, and it again takes out of the local economy vital money that could be used to boost local businesses, particularly small and medium-sized enterprises. Ultimately, that is why we have seen an enormous increase in the number of people using food banks in both my constituency and the rest of Wales. Until two or three years ago, I never saw a food bank. Now, we visit them time and again. Our churches and our chapels collect for them every Sunday. That increase is a direct result of the Government’s policies in Wales, which will undoubtedly be rejected by the people of Wales next year. We will then have a Government in Cardiff and a Government in Westminster working together for the benefit of the people of Wales.

Wales Bill

Debate between Lord Murphy of Torfaen and Stephen Crabb

Tuesday 24th June 2014 Commons Chamber

[Paul Murphy]

It certainly is not a wrecking tactic. I have made the position clear. I am just a Back Bencher, but Labour Front Benchers will also make it clear that the Labour party is committed to reserved powers for Wales. In the light of what is likely to happen in Scotland, that becomes much more important.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

I am grateful to the former Secretary of State for giving way. He is definitely not just a Back Bencher, but does he genuinely believe that moving to a reserved powers model is a panacea for all the difficulties and challenges of a devolution settlement between England and Wales—issues such as water, transport, and the populous border, which the shadow Secretary of State described earlier? Does he genuinely believe that moving to a different starting point is a panacea to overcome the challenges in the current devolution settlement?

[Paul Murphy]

I do not think for one second that the model is a panacea for all the issues and problems that we face, but I think that it will give tools to the National Assembly and the Welsh Government that they currently may not have and make it easier for them to resolve various issues. I do not suggest for one second that the model means that we will have to end the important cross-border co-operation that exists, or that there will be no need for the Governments to discuss matters. Of course that will have to happen, because of points Members made earlier; large swathes of the population live on the border in Wales, in contrast to Scotland. I agree with the Minister that this model is not the complete answer but it is an answer. It is also an answer in the light of what both parties are thinking with regard to Scotland. Whatever happens in Scotland—like me, the Minister will argue for a no vote—it will undoubtedly change the political and constitutional landscape of our country and so Wales must be in a position to take part in that. Otherwise, we will be seen as an adjunct to a very large England, with Northern Ireland, with its own special issues, on one side.

Therefore, I agree with the new clause. I am sure that my hon. Friend the Member for Llanelli will be able to make the points that I have not made and that have been discussed by Members.

Oral Answers to Questions

Debate between Lord Murphy of Torfaen and Stephen Crabb

Wednesday 16th January 2013 Commons Chamber

[Stephen Crabb]

I saw the news that Toyota is once again the world’s largest car manufacturer. That is obviously good news for the company itself, but it is great news too for the UK and for Wales, not least at Deeside where Toyota is now in its 21st year of manufacturing. During that time, it has created thousands of high-quality jobs and made a vital contribution to the north Wales economy.

[Paul Murphy (Torfaen) (Lab)]

The Minister will know that one of our biggest brake manufacturing companies is Meritor, based in Cwmbran in my constituency. It relies heavily on European business, so the exchange rate with the euro is important, as is our membership of the European Union. Does the Minister not agree that mixed messages coming from his Government about our membership of the European Union do great damage to industry in Wales, including our automotive industry?