Rural Post Offices

Debate between Lord Wigley and Lord Henley

Tuesday 9th July 2019 Lords Chamber

[Lord Henley]

My Lords, I agree with my noble friend about the value that we place on the Post Office, and rural post offices in particular. That is why we made that commitment in the 2017 manifesto. Obviously, I cannot make any commitments for the future beyond 2021, when current agreements come to an end. But bearing in mind the commitment we have made and the value we see in the Post Office network, it is exceedingly likely that something similar will be there.

[Lord Wigley (PC)]

My Lords, is the Minister aware of the growing evidence from rural areas, particularly in Wales, of increased crime because of the closure of banks in those areas? Some businesses are having to go 40 or 50 miles to find banks. In those circumstances, can the services available through the Post Office be extended to reduce that danger?

[Lord Henley]

My Lords, I am not aware of that connection with the closure of banks in rural areas causing an increase in crime, but I am aware that there is a decline in bank services in certain areas. I think of my own small nearby town, where both the banks have gone. The important thing is that with the agreement that the banking industry has come to with the post offices, they can provide a great many of the banking services that people require, such as paying in cheques and so on. I could go on in great detail for the noble Lord but there are agreements between the banking sector and the Post Office to help deal with that.

Nuclear Energy: Small Modular Reactors

Debate between Lord Wigley and Lord Henley

Monday 10th June 2019 Lords Chamber

[Lord Henley]

My Lords, I can confirm to my noble friend that Trawsfynydd remains a potential site; it has been neither ruled in nor ruled out. We believe that small and advanced nuclear reactors have the potential to drive down costs through technology and production innovations.

[Lord Wigley (PC)]

My Lords, may I add my support to the bid made in favour of Trawsfynydd? The old nuclear power station there is half decommissioned, but the lake is too small for a full new nuclear power station. Given that the Wylfa project is, to say the least, in doubt, will he look positively at the Trawsfynydd option for SMRs in order to keep this technology alive in north-west Wales?

[Lord Henley]

The noble Lord speaks with great experience on this subject. He was involved in the building of Trawsfynydd, more years ago than he probably cares to remember. I note what he says; he is correct to say that the lake is on the small side for a full-scale nuclear reactor, which might make the small modular reactor more appropriate, but as I said, nothing has been ruled in or out.

State Aid (EU Exit) Regulations 2019

Debate between Lord Wigley and Lord Henley

Thursday 14th March 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)]

My Lords, I beg to move that the draft State Aid (EU Exit) Regulations be approved. I will speak also to the draft European Structural and Investment Funds Common Provisions and Common Provision Rules etc. (Amendment) (EU Exit) Regulations 2019, which were laid before the House on 28 January.

The draft State Aid (EU Exit) Regulations transpose the existing EU state aid regime into UK domestic law by correcting deficiencies in retained EU law. In doing so, they transfer the state aid regulatory functions of the European Commission to the UK’s Competition and Markets Authority. The regulations will ensure that state aid rules continue to operate in a domestic context and will come into force on exit day in the event of a no-deal exit.

State aid rules govern the way subsidies can be given, and exist to stop companies getting an unfair advantage over their competitors. The rules are not intended to prevent public authorities supporting industry, but rather to do so in a way that minimises distortions to competition. Where there are good justifications for state aid, the rules enable it to be given. The state aid rules are about supporting fair and open competition. Ultimately, they are good for taxpayers, consumers and businesses.

The existing principles for the regulation of state aid will remain substantively unchanged in the domestic regime, in accordance with the aims and powers under the withdrawal Act 2018. The provisions in the regulations will therefore have minimal impact on public authorities that grant state aid or entities that receive it.

The main practical change under the new regime is that the rules will be regulated by the CMA. To prepare for EU exit and its new state aid role, the CMA received £20 million for 2019-20. This is in addition to the £23.6 million it received for 2018-19. The Government are working to ensure that the CMA will be ready to take on this new role and have every confidence in its ability to do so.

The CMA will adopt the Commission’s existing state aid guidelines, which provide clear parameters for how and when aid should be approved. It will also receive enforcement powers broadly equivalent to those of the Commission. I should, however, explain one point of divergence from the EU regime. Under EU rules, the European Council has the power in exceptional circumstances to intervene and approve aid before the Commission has reached a decision.

We do not consider it necessary or appropriate to use the regulations to vest the Government with similar powers. Ultimately, the Government could bring forward legislation to amend the state aid rules if deemed absolutely necessary. This option is not readily available to the European Council in the EU context.

[Lord Wigley (PC)]

Will the Minister give way?

[Lord Henley]

I shall not give way at the moment. I will take advice from the noble Lord, Lord Adonis, who pointed out earlier that the noble Lord will have his moment to speak later. It would probably be helpful if I get through what I want to say and the noble Lord can speak later.

I mentioned earlier that state aid rules will ensure fair and open competition throughout the UK. Over the past year, the Government have engaged extensively with each of the devolved Administrations and shared drafts of the regulations. The Government have also offered to sign a memorandum of understanding about the operation of the state aid regime with the devolved Administrations, which we hope to agree. These discussions have indicated broad agreement on the substance of the Government’s policy to establish a UK-wide state aid regime that mirrors the EU’s. We will of course continue to work closely with the devolved Administrations on state aid policy.

In conclusion, as we leave the EU, these regulations will give certainty to public authorities and recipients of state aid, and help maintain confidence for businesses across the UK.

I turn now to the overview of the structural funds SI. In a no-deal scenario, this instrument will repeal the European regulations concerning the European structural funds, while ensuring that they can continue operating domestically. It will also repeal the regulations for the Cohesion Fund, for which the United Kingdom is not eligible. Structural funds include the European Regional Development Fund and its cross-border European Territorial Cooperation component, and the European Social Fund. Structural funds support regional investment across the UK and are funded via the EU budget, with match-funding from project participants. In a no-deal scenario, the United Kingdom is expected to lose access to European funding.

HM Government have guaranteed funding for structural funds projects signed before the UK leaves the EU. The guarantee also enables new projects to be signed after exit until 2020. This guarantee covers UK beneficiaries, all beneficiaries of the PEACE programme in Ireland and Northern Ireland, and Interreg VA in Ireland, Northern Ireland and Scotland.

This instrument facilitates the domestic delivery of structural funds in a no-deal situation. It repeals the European regulations for these funds, as they would become inoperable retained law. It also ensures that for European Regional Development Fund and European Social Fund projects started before exit, current fund delivery rules are upheld through existing funding arrangements—without keeping redundant EU regulations. The powers to continue paying beneficiaries for projects already exist under domestic law. This instrument does not make provisions for projects started after exit. New projects will none the less continue to be signed using existing domestic powers and delivery systems, with appropriate simplifications. Structural funds delivery will also remain a devolved matter.

The instrument also makes special provisions for European Territorial Cooperation programmes that fund collaborative projects. It includes a transitional provision that enables the guarantee to be paid out to bodies involved in a European Territorial Cooperation programme. The power to fund beneficiaries of cross-border programmes currently comes from European law, and therefore needs to be continued in domestic law through this instrument to protect beneficiaries in a no-deal situation. The EU has made special provisions to enable the United Kingdom to continue in PEACE and Interreg VA in a no-deal scenario if the United Kingdom continues to pay its share of the programmes. The transitional provisions in this instrument enable the United Kingdom to make such payments to the EU. This is consistent with the United Kingdom’s commitments to PEACE and Interreg VA.

In this arrangement, the European regulations do not need to be retained. The United Kingdom will sign an agreement with the EU to ensure that programme beneficiaries continue to follow relevant rules. The EU regulation does not resolve the question of payment powers addressed by this instrument. That is why we need both the EU regulation and this instrument to safeguard these programmes. The transitional provision to pay the guarantee to European Territorial Cooperation beneficiaries also ensures that beneficiaries of cross-border programmes other than PEACE and Interreg VA can be paid through the guarantee. Without this instrument, delivery departments would lack the powers to pay out the guarantee to beneficiaries of European Territorial Cooperation programmes.

In conclusion, in a no-deal scenario, this instrument repeals redundant European law while ensuring that projects previously supported by the EU, including those supporting peace in Northern Ireland, are protected. I commend the regulations to the House and I beg to move.

Amendment to the Motion

Nissan in Sunderland

Debate between Lord Wigley and Lord Henley

Tuesday 5th February 2019 Lords Chamber

[Lord Wigley (PC)]

My Lords, the Minister in the other House made it clear that he was reinviting Nissan to submit an application for assistance on possibly different terms in order to overcome the difficulties that might now be facing the company. Can the noble Lord confirm that such an offer will be equally open to companies such as Ford, which is facing similar difficulties in Bridgend?

[Lord Henley]

My Lords, it is open to any company to apply for any funds that are available, as my right honourable friend made clear in the Statement, and that will be reviewed in the proper way, independently of my right honourable friend. I can tell the noble Lord that, of that £61 million, about two-point-something million pounds has been spent. It will be up to Nissan to make an application for the rest of it, although obviously it will not be needing it at the moment.

Nuclear Power: Future Energy Needs

Debate between Lord Wigley and Lord Henley

Thursday 17th January 2019 Lords Chamber

[Lord Henley]

My noble friend is quite right. That was the tail end of the question from the noble Lord, Lord West; I apologise to the House for not being able to address it in the time that was available to me. I certainly agree that it would be timely to have a debate on this in the light of the recent announcement; I was hoping to be able to repeat the Statement, and perhaps there might be other moments when this could happen. However, obviously that is a matter for the usual channels.

[Lord Wigley (PC)]

My Lords, does the Minister accept that putting Wylfa Newydd on indefinite hold causes economic planning blight in north-west Wales, and the north Wales growth deal is based on the assumption that it is going ahead? Will the Government now raise the level of support allocated to this region?

Nuclear Sector Deal

Debate between Lord Wigley and Lord Henley

Thursday 28th June 2018 Lords Chamber

[Lord Henley]

My Lords, I believe my noble friend is correct, but she will appreciate that I was informed about repeating this Answer only some 15 minutes before the House met. I cannot give precise details about the Trawsfynydd site at this stage, but I will write to her with further details. As I said, I think she is correct.

[Lord Wigley (PC)]

My Lords, as one who worked on the construction of Trawsfynydd in 1963, I welcome the Statement but perhaps I may ask the Minister for some further clarity. First, on the SMR programme, does the fact that the announcement is being made in Trawsfynydd today indicate that the location of an SMR reactor is likely to be Trawsfynydd? Secondly, can he confirm that the lessons experienced over a prolonged period with the decommissioning at Trawsfynydd could be the basis for a study of decommissioning in future? Finally, can he give an assurance that additional money will be available for training and education, particularly for institutions such as Bangor University, to ensure that local people have the skills and take up the jobs?

[Lord Henley]

My Lords, if the noble Lord was working on the site in 1963, it is unlikely that he will be offering himself to work there in any future programme.

Swansea Tidal Lagoon: Hendry Review

Debate between Lord Wigley and Lord Henley

Tuesday 1st May 2018 Lords Chamber

[Lord Henley]

I am more than happy to take up the noble Lord’s offer but he has also raised other matters that must be considered.

[Lord Wigley (PC)]

My Lords, what on earth is taking so long with this decision? Is it not an appalling example for business and everybody else that the Government are so slow on this matter? Yes, the cost must be taken into consideration, but it is a matter of taking a decision based on the information. Surely we should be getting on with it.

[Lord Henley]

My Lords, the Government will not be rushed.

European Structural and Investment Funds

Debate between Lord Wigley and Lord Henley

Tuesday 12th December 2017 Lords Chamber

[Lord Henley]

My Lords, again the noble Lord will not expect me to give any specific guarantees at this stage. He knows why we have introduced the shared prosperity fund and that we also have the Industrial Strategy White Paper. In that White Paper, we refer to the inequalities between the regions, particularly in relation to productivity but also in other respects. It seems to me obvious, therefore, that we would want to devote the shared prosperity fund—the name of which gives some indication of what it is supposed to do—to doing just that.

[Lord Wigley (PC)]

My Lords, the Minister will be aware that Wales has been a significant beneficiary of these funds over the past 17 years. The Government have given an undertaking that they will replace money lost from European sources if we suffer Brexit. Will the Minister enlighten the House as to the criteria that will be used to ensure that the money goes to those areas that need it most?

[Lord Henley]

My Lords, the way that the Welsh voted in the referendum probably gives some indication of what they think we are likely to do with things such as the shared prosperity fund. The Welsh have considerable faith in how this Conservative Government will direct resources from the fund. Again, the noble Lord will not expect me to give any guarantees at this stage.

Industrial Strategy

Debate between Lord Wigley and Lord Henley

Monday 27th November 2017 Lords Chamber

[Lord Henley]

My Lords, I thank the noble Lord for his welcome and for his very kind words about my noble friend Lord Prior. I would be very grateful if my noble friend was still here doing this, because he played a much larger part in the development of the White Paper than I did. I came somewhat late to it.

If the noble Lord would like me to identify one area, I go back to the five principles that I iterated to the noble Baroness: ideas, people, infrastructure, business environment and places. When the White Paper was developed, I played a small part in its redrafting and in our vision as set out on page 13. I was rather anxious to get the first five points at the top of that page into short, easy, memorable sentences. That is why we talk about a vision for the world’s most innovative economy, good jobs and greater earning power for all, a major upgrade in the UK’s infrastructure, the best place to start and grow a business, and prosperous communities across the UK. I can assure the noble Lord that he will find the whole of the White Paper very good reading. I will have a word with him tomorrow or perhaps the day after and test him on it to make sure he has fully grasped all of it.

[Lord Wigley (PC)]

My Lords, I draw attention to my registered interests. The document is certainly strong in aspiration, which I welcome, but perhaps lacking in some of the detailed pathways to delivery. The Minister referred to Wales and Scotland. When will this be taken forward with the devolved Administrations? How will that happen with sector deals for the creative sector and the very welcome proposed food and drink sector, where so many of the responsibilities are devolved? Will the responsibility for their running be with the devolved Administrations? Will they have the resources to do the job?

[Lord Henley]

When a similar question was put to my right honourable friend in another place, he made it clear that he had very recently spoken to his opposite number in Wales. That process will continue in Wales and Scotland. My right honourable friend and other Ministers, as appropriate, depending on who is where at any given time, will talk to all Ministers in the devolved Administrations in Wales, Scotland and Northern Ireland. I will certainly play my part as much as possible in that. There will also be adequate resources for the devolved Administrations from their own budgets to do this as appropriate. Whether the noble Lord will consider that adequate is obviously another matter, because no doubt he will be screaming for more—but then he would say that, wouldn’t he?

We will continue to talk with our opposite numbers in the three devolved Administrations. I am sure they will want to make a success of this just as much as we do. That is why I pointed out that we have problems with productivity imbalances between our UK averages and those of other parts of the United Kingdom. It would be right to try to address those imbalances.

European Union: Trade

Debate between Lord Wigley and Lord Henley

Monday 28th November 2016 Lords Chamber

[Lord Henley]

My Lords, as the noble Lord knows, no special deal was made for Nissan. A certain number of assurances were given, which were set out by my noble friend in repeating the Statement here on 31 October. We look forward to Nissan producing as many cars as it does. We are grateful for the fact that it has put such faith in the north-east and in this country. Seven thousand jobs, and a great many others in the supply stream, are dependent on that. We also look forward to continuing to trade freely with Europe.

[Lord Wigley (PC)]

My Lords, is the Minister aware that some 200 American companies and 50 companies from Japan have located in Wales in order to sell into the European market and that any system of financial aid to industry has to be open, equally accessible and transparent so that companies such as Ford, Toyota, Airbus and Siemens are not disadvantaged in regard to their competitors?

[Lord Henley]

My Lords, as my right honourable friend made clear in another place, there has been no compensation package for Nissan. Nissan will continue to produce its vehicles in the north-east, and we hope that all those firms in Wales and other parts of the United Kingdom will continue to produce whatever they are good at in those countries and will continue to trade freely with the rest of the European Union.

Public Bodies Bill [HL]

Debate between Lord Wigley and Lord Henley

Monday 7th March 2011 Lords Chamber

[Lord Henley]

My Lords, I might have to spend a few minutes on this but I hope I can satisfy most of the points that have been raised by noble Lords. I am grateful to my noble friend Lord Maclennan for moving this amendment on behalf of his noble friend Lord Greaves.

As noble Lords will know, IDBs manage flood risk and the drainage of agricultural land. In doing so, they also seek to conserve and enhance the environment in those areas of special drainage need where they operate. They play an important role, which is recognised by their inclusion as flood risk management authorities in the Flood and Water Management Act 2010. Like my honourable friend Mr Benyon, I pay tribute to what the IDBs did in the manner that was cited by the noble Baroness, Lady Quin. She also made it clear that the Land Drainage Act 1991 sets out the IDBs’ functions and the arrangements under which they operate, but reminded us that those are based on considerably earlier legislation. She took us back to the 13th century. I do not know whether there was legislation at that stage but she is certainly right in saying that one can go back a long way.

The main issues that arise are restrictive arrangements on governance, limits on the functions of the IDBs and burdensome procedures for changing boundaries and other arrangements. In respect of governance, dealt with under Clause 3 and Schedule 3, the law currently means that, even where most of the funding is from local authorities, an authority can have no more than one member more than half the total membership of a board—the so-called bare majority. This weakens the incentives for efficiency, which would be present with a stronger relationship between sources of funding and levels of representation. I hope that the noble Baroness will accept that point. In addition, despite the wider environmental function of IDBs, there is no provision for specialist members to represent those functions, or other wider interests, on the boards. Experience has shown that specialists can add greatly to the effectiveness of boards.

In respect of the functions of IDBs, in terms of Clause 5 and Schedule 5, it is not proposed to transfer those functions to any other body—I give that assurance—or to take away any functions. However, simplification of some of the burdensome procedural requirements so that, for example, IDBs can formalise their rules or procedure with Environment Agency consent, rather than ministerial consent, requires modification of the functions of IDBs. In addition, as the Flood and Water Management Act 2010 imposes a sustainable development duty in relation to IDBs’ flood risk functions, and as their flood risk and drainage roles are hard to separate, it is important to align these duties to improve clarity and certainty. For example, where certain works have a bearing on soil carbon, this would be a relevant consideration whether the aim of the work was flood risk management or land drainage.

For the sake of flexibility and efficiency, we are also exploring the possibility of IDBs having the power to carry out other related water management functions in their areas. The Government will keep this under review and will propose a transfer of functions to the IDBs if and when that is appropriate. It is for these reasons that we have included IDBs in Schedule 5. This will mean a more flexible framework for IDBs, which will allow them to adapt to change and therefore put them on a stronger footing. I repeat the assurances that my honourable friend has given and his phrase about IDBs being part of the big society.

As I have explained, at present the procedure for IDB boundary changes, amalgamations and reconstitutions —that is, changes to board memberships and other matters relating to IDBs—is very lengthy and cumbersome, involving advertising and consideration of objections by the Environment Agency and Defra. We would like to simplify this process by giving the Environment Agency the power to approve these changes other than, for example, in the dispute cases. This is what the noble Lord, Lord Cameron, referred to. I make it clear to the noble Lord that cases described as “non-contentious” are those where there is no dispute. Therefore, in the non-disputed cases there would be no need to have ministerial involvement. I hope that that assurance will be sufficient to satisfy the noble Lord. The aim of that is to reduce the bureaucratic controls and to allow IDBs to be more responsive to change. For this reason the Environment Agency is also listed in Schedule 5.

There is also a lengthy procedure involving Defra and the Environment Agency in respect of varying maps that show the extent of watercourses deemed to be “main river”. The Environment Agency is responsible for those watercourses. Hence some changes can be significant but others relate simply to alterations in the course of a river. We propose to give the agency the power to make these changes in respect of uncontested, non-contentious changes. That again would reduce unnecessary administrative costs.

The noble Lord, Lord Maclennan, asked about the legislative timetable and whether there were other more appropriate Bills in which to tackle this issue. There is no guarantee that a water Bill will be brought forward. From my own experience over the years—no doubt this is the experience also of the noble Baroness, Lady Quin—I know that there is uncertainty about the legislative timetable and about obtaining the agreement of colleagues. The noble Baroness gives a wry grin but it is sometimes difficult to agree on relatively minor changes. Therefore, we think that it is prudent to provide for these relatively minor changes in the Bill rather than to delay them further. However, I give an assurance that the Bill requires consultation to take place before any order is made. I guarantee that that will take place.

Government Amendments 72A and 94A in the name of my noble friend Lord Taylor restrict the order-making power of government Ministers to IDBs that are wholly or mainly in England. This is a result of reaching agreement with the Welsh Assembly that it is more appropriate for Welsh Ministers to have this power for those IDBs which are wholly or mainly in Wales.

[Lord Wigley]

Hear, hear!

[Lord Henley]

I am very grateful for that “Hear, hear” from the Cross Benches. For the reasons I have explained, I hope that the Committee will agree to the Government’s amendments and that my noble friend will feel able to withdraw the amendment.