Government Debt

Debate between Lord Wigley and Lord Bates

Tuesday 9th April 2019 Lords Chamber

[Lord Bates]

Obviously, there will be issues, which will be addressed in the spending review. Simon Stevens made that proposal about what is needed for the NHS, £20 billion—I think—was delivered to meet it, and there has been a significant increase with this further amount. However, we are aware of the pressures, which is why we have been clear that, when it comes to public services, the NHS is our priority.

[Lord Wigley (PC)]

My Lords, is not the key to this the question of labour productivity? The figures for that in the last year were depressing: only 0.2%. What will the Government do to improve labour productivity?

[Lord Bates]

This is an historic problem that we have debated many times in this House. Because we are a heavily services-oriented economy it is difficult to capture all the value. We set up the national infrastructure investment scheme with £37 billion to help us to tackle those issues.

Access to Cash

Debate between Lord Wigley and Lord Bates

Wednesday 3rd April 2019 Lords Chamber

[Lord Bates]

That is partly within the role of the Payment Systems Regulator, although not entirely. On the point about cash and Link machines, Link is a network of banks that supervise these things. It has increased the intercharge fee between ATMs so that it can meet its obligation to ensure that ATMs are at least 1 kilometre from the next free ATM in rural areas. That is a very important commitment, which the regulator will hold them to account for.

[Lord Wigley (PC)]

Does the Minister accept that in those scattered rural areas there is the very real problem that it is impossible to get good broadband connectivity, and therefore internet banking is not possible? That is not just an inconvenience; it means it is very difficult to get economic development of the sort that is needed.

[Lord Bates]

I am aware of that. There is obviously the universal service obligation. This year for the first time telephone banking apps will overtake digital online as the way in which most people access their banking services, so that is another factor. However, I am aware of the concern.

Brexit: Economic Analysis of Various Scenarios

Debate between Lord Wigley and Lord Bates

Wednesday 28th November 2018 Lords Chamber

[Lord Bates]

We have the EU (Withdrawal) Act which, of course, commits us to a course of action. The choice I mentioned was clearly the preference that we would have a deal as negotiated by the Prime Minister, but that is subject to the will of Parliament as expressed in a meaningful vote on 11 December, and we are seeking to inform that debate.

[Lord Wigley (PC)]

My Lords, the Minister will be aware that the Welsh economy benefits substantially from European structural funds. At the time of the referendum, guarantees were given by those campaigning for Brexit that these funds would continue way into the future, not just up to 2020. What assumption was made in this document about the continuation of such funding for the Welsh economy?

[Lord Bates]

I do not have specific information on that. I know that, when we leave the European Union, the intention is to establish a fund to seek to address the points that the structural funds dealt with. On whether Wales will continue to benefit from or be eligible for the structural funds, I am very happy to write to the noble Lord on that and what is covered in the analysis.

Brexit: Costs

Debate between Lord Wigley and Lord Bates

Wednesday 29th November 2017 Lords Chamber

[Lord Bates]

We have honoured those obligations and they are part of negotiating a settlement. The Prime Minister set out in her Florence speech that we will continue to honour that, that no country will have to pay in more and no country will get out less. I think that has been well received by our European partners and we look forward now to moving on to negotiating the more important area for us of continued trade with the frictionless access that we want to a very large and important single market.

[Lord Wigley (PC)]

My Lords, further to the point made by the noble Lord, Lord Lamont, will the Minister confirm that, if there is indeed a transition period beyond 2020, we may well need to make further payments for that period?

[Lord Bates]

We will find that out when we find out the outcome of the negotiations.

Brexit: Financial Settlement

Debate between Lord Wigley and Lord Bates

Monday 13th November 2017 Lords Chamber

[Lord Bates]

The noble Lord is absolutely right in pointing to the fact that there are assets of the European Union. Those are highlighted in the consolidated report and account, the difficulty with which is that it shows assets of £162 billion, but liabilities of £234 billion. In agreeing what our share of the assets is, we also have to be fair and recognise that there may be some concomitant responsibility for some of the liabilities.

[Lord Wigley (PC)]

My Lords, further to the point made a moment ago about the date being written into the Bill, does that not mean that on that date in March 2019, if all is not agreed at that point, nothing is agreed, and we would leave without even any semblance of a security agreement?

[Lord Bates]

That is a fact that should be borne in mind by all parties for the negotiation.

Barnett Formula

Debate between Lord Wigley and Lord Bates

Thursday 13th July 2017 Lords Chamber

[Lord Wigley]

To ask Her Majesty’s Government what changes they propose to make to the application of the Barnett formula to Wales and Scotland arising from any potential additional financial provision for Northern Ireland.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the Government remain committed to the Barnett formula, which is designed to ensure that devolved Administrations are funded to deliver their priorities within their devolved responsibilities. Like those previous interventions, this exceptional funding will be made outside the normal ongoing Barnett funding system. It will therefore not attract Barnett consequentials.

[Lord Wigley (PC)]

Surprise, surprise. The noble Lord will be aware that £1,000 million has been allocated primarily to hospitals, schools and roads in Northern Ireland—mainstream Barnett elements. Clearly the Government have perceived an extra need in Northern Ireland, however that is defined. Will they therefore move towards a needs-based formula for Scotland, Wales and indeed, for the regions of England, to ensure that valuable and important economic projects, such as the M4 in south Wales, the A55 in north Wales and the Swansea Bay lagoon—things that are important to the economy—can move ahead and are not constrained by the way in which these matters are approached at present?

[Lord Bates]

The noble Lord will be familiar with the long-running debate over the needs-based versus the population-based formula. The Government always remain responsive to needs. That is one reason why a number of investments have taken place in Wales, for example, outside the Barnett formula. There is the Cardiff capital region city deal of £500 million, the Swansea city deal of £115 million, and I hope the north Wales growth deal. All those will be outside the Barnett formula and reflect the particular needs of Wales, as the deal to which he referred reflects the particular needs of Northern Ireland.