Oral Answers to Questions

Nick Smith Excerpts

Wednesday 4th March 2015 Commons Chamber

[Chris Evans (Islwyn) (Lab/Co-op)]

5. What discussions he has had with Ministers in the Welsh Government on the role of Jobs Growth Wales in tackling youth unemployment in Wales.

[Nick Smith (Blaenau Gwent) (Lab)]

8. What discussions he has had with Ministers in the Welsh Government on the role of Jobs Growth Wales in tackling youth unemployment in Wales.

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

I am proud of the efforts of this Government that have seen youth unemployment in Wales fall by 46% over the course of this Parliament. I have discussed with the Welsh Government the support that is available to help people into work to ensure that there is a coherent and joined-up approach in Wales.

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[Stephen Crabb]

The Jobs Growth Wales scheme has been popular with employers—it is a wage subsidy, so of course employers like it. It is important to recognise that Jobs Growth Wales is for people who are so-called job-ready. An independent evaluation by Ipsos MORI, which was commissioned by the Welsh Government, found that 73% of people who found work through Jobs Growth Wales would have found work anyway. That raises questions about whether it is a good use of taxpayers’ money.

[Nick Smith]

Jobs Growth Wales has created more than 400 jobs for young people in Blaenau Gwent. However, people need to be able to get to the jobs market on the coast in Cardiff and Newport. Given that the funding is now agreed, when will the valley lines electrification be completed?

[Stephen Crabb]

I am pleased that the hon. Gentleman has referred to the valleys electrification project. It was a great achievement of this Government, along with the Welsh Government, to secure a deal to deliver electrification not just of the great western line to Swansea but, crucially, through to the valleys communities as well. We look forward to work starting on that project, subject to the Welsh Government agreeing the details, in 2018-19.

Wales Bill

Nick Smith Excerpts

Wednesday 10th December 2014 Commons Chamber

[Alun Cairns]

I pay tribute to the hon. Member for Vale of Clwyd (Chris Ruane) for the positive way in which he has ended this debate. He contributed to it by highlighting the need for young people to be educated about the process, and the need for us to engage with the activities of electoral registration officers, which were mentioned by my hon. Friends the Members for Brecon and Radnorshire (Roger Williams) and for Ceredigion (Mr Williams).

The Lords amendments are intended to be positive. They will extend the powers of the Assembly. They provide greater powers than those in the original Bill, and this is the first time that we have had the opportunity to discuss them. At some stages of the debate, I felt that although all parties are in favour of those powers, they were being welcomed almost through gritted teeth. I am therefore grateful to the hon. Member for Vale of Clwyd for finishing on a positive note.

Some hon. Members said that they have campaigned for votes at 16 for a very long time, but if there was such support, the extension of the vote could have been done during the 13 years of the previous Labour Administration. The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) pointed out that he tabled amendments at the time and they were certainly not accepted by Labour. However, I want to be positive.

[Nick Smith (Blaenau Gwent) (Lab)]

It is a shame that the Minister is speaking on a sour note. May I ask him to bear in mind the point that my hon. Friend the Member for Vale of Clwyd (Chris Ruane) made about encouraging electoral registration officers and others to register young people at age 15, when they get their national insurance number? That seems a good idea, so will the Minister contact his colleagues in the Cabinet Office to encourage it? It would be administratively neat and I suspect that, as my hon. Friend suggested, it would help boost voter registration among young people, which has to be a good thing. We should have this debate in that positive way rather than go in a sour direction, as the Minister has done.

[Alun Cairns]

I do not intend to be sour in any way, shape or form. I want to be positive, because the Bill will extend the powers of the Assembly and is welcomed by all parties. It is important that it is recognised in that way, rather than in the churlish way in which it has been welcomed in some quarters. I take the hon. Gentleman’s point positively, and the Cabinet Office will have heard his suggestion and the contributions of other Members, including the hon. Member for Vale of Clwyd. Those points go well beyond the scope of the Lords amendments, but they have been well made and received in a positive way, which is how the debate should finish.

The Bill has passed through both Houses, and we all need to recognise that it represents a major shift in powers and that there is a great opportunity for Wales, the Assembly and the Welsh Government if they use those powers productively and enthusiastically. I pay tribute to the Secretary of State for how he has handled the Bill since taking office, but also to his predecessor, my right hon. Friend the Member for Clwyd West (Mr Jones), for his contribution in steering the Bill through the House, and to Baroness Randerson for her activities in the other place. I also pay tribute to the officials and everyone else who has worked on the Bill, particularly in the Wales Office. I hope that the House will support the Lords amendments.

Lords amendment 14 agreed to, with Commons financial privilege waived.

Lords amendments 15 and 16 agreed to, with Commons financial privilege waived.

Oral Answers to Questions

Nick Smith Excerpts

Wednesday 3rd December 2014 Commons Chamber

[Alun Cairns]

The shadow Secretary of State has clearly got his facts wrong. The long-term economic plan is working for Wales. If there has been a reduction in tax receipts from Wales, it is because of our increase in the personal allowance, under which next year the average worker will pay less than £800 as a result, taking 155,000 people in Wales out of income tax altogether by next April.

[Nick Smith (Blaenau Gwent) (Lab)]

8. What discussions he has had with the Secretary of State for Transport on when the electrification of the valleys railway line will be completed.

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

When I became Secretary of State, I made resolving the dispute over funding for the electrification project my No. 1 priority. I have had many discussions with my right hon. Friend the Secretary of State for Transport in recent weeks, and I am delighted that we have settled a deal between the Department for Transport and the Welsh Government to deliver that important project.

[Nick Smith]

Has the Secretary of State considered improving the frequency of trains after electrification? Two or three trains an hour on the valleys line to Cardiff would be a massive boost to my constituents in Ebbw Vale, Llanhillith and the surrounding valley towns.

[Stephen Crabb]

The hon. Gentleman makes an important point. There are frequency issues on those lines, but he must recognise that decisions on the frequency of services will need to be taken by Welsh Ministers, because we are devolving the franchise to the Welsh Government as part of the electrification deal.

Oral Answers to Questions

Nick Smith Excerpts

Wednesday 22nd October 2014 Commons Chamber

[Stephen Crabb]

I was aware of that point, and I want to raise that issue with Arriva Trains Wales. The growth in usage of the valley lines is one of the reasons why we need to press ahead and create new capacity and make improvements to all the valley lines.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the delay in the delivery of the electrification of the valley lines mean that the final cost will go up?

[Stephen Crabb]

I hope that there will be no delay in delivering the electrification project for the Great Western line and the valley lines. We are involved in productive and constructive discussions with Ministers in London and in the Welsh Government to find a way to crack on and deliver that important project for south Wales.

Welsh Affairs

Nick Smith Excerpts

Thursday 6th March 2014 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I am pleased to be able to speak in this St David’s day debate.

Let me remind the House, as I like to on these occasions, of the strengths of Blaenau Gwent and the challenges that it faces. We have a proud cultural and political heritage. We gave the United Kingdom its precious national health service, and we have a strong record of serving our country in the armed forces. The Brecon Beacons national park is on our doorstep, and our industrial legacy of coal and steel is a proud one. Yet in the last decade there has been no alternative large-scale industry to take the place of steel and coal. There has been investment in transport, health and education, but our readiness for development has been cruelly coincidental with a worldwide recession and a reduction in the public sector employment that has been so important in Wales. We know that our Welsh valleys communities are resilient and look after their own, but we need jobs.

I want to talk about transport, jobs and education. The year 2014 has not brought the glad tidings for which we hoped. Unemployment has risen, and Government action is needed to deliver the jobs and growth that will secure our economic recovery. The heads of the valleys line has been greatly improved in recent years, but work is still needed on the Gilwern to Brynmawr section. The council and the Welsh Government have reopened the Ebbw Vale to Cardiff railway line, but it needs to be electrified and redoubled. In December I asked the Chief Secretary to the Treasury if he would consider bringing forward the electrification of the south Wales valleys lines, but we have heard nothing so far.

[Chris Evans]

My hon. Friend uses the Ebbw Valley railway when he travels through my constituency. Does he agree that if we are to bring jobs and growth to the valleys in constituencies such as ours, the lines must be electrified as a matter of urgency?

[Nick Smith]

My hon. Friend makes a powerful point.

Another important rail improvement is a new spur line to Abertillery. On Facebook this week, I was told that

“the youngsters in Abertillery need to be given the same access to employment as young people everywhere. The rail link is vital for the valley.”

I find the young people in Blaenau Gwent eager to work, but lacking in opportunity and experience. Along with the local jobcentre, I shall be hosting a seminar later this month for local employers, much as my hon. Friend did. I hope that they will sign up to offer work experience to our under 21s. The longer people are out of work, the more difficult it is for them to find work again and make ends meet.

As might be expected, when investors do come to Blaenau Gwent with a project, we take it seriously. The proposed development of a motor sport facility, the Circuit of Wales, in my constituency represents a once-in-a-generation opportunity. When I first heard the proposal for a racing track in the clouds I was sceptical, but having now watched “Top Gear” too often, I have a better understanding of the petrolheads who want an exciting circuit rather than an old airfield track.

It is, of course, important for the business plan for the circuit to stand up to scrutiny, and the Welsh Government have done the due diligence on it, but because of planning complications, there is a delay. Although this will be a largely private sector investment, United Kingdom Government support is still needed. The Welsh Secretary—fair dos—has repeatedly indicated support for the Circuit of Wales, but it still has no Treasury support. The Circuit of Wales developers believe that the UK has underinvested in motorsport infrastructure, as they foresee a significant demand for new facilities to meet the needs of modern motor sports. They are working hard to recruit the investors who are needed for this £250 million, 800-acre proposal. That is the key test. The developers now need to put together a portfolio of financial support, and they have my wholehearted backing for that endeavour. I hope that the Minister will continue to be positive about the proposal, especially in view of the Government’s proposal for a new public-private partnership.

Finally, let me stress the importance of education, which is paramount if we are to look forward to a brighter future in Blaenau Gwent. Our education system must give all pupils the tools that will enable them to succeed, in Wales and in our global world. If Blaenau Gwent is to enjoy the 21st century, we need investment across the board, and that means improved transport, sustainable jobs, and a first-class education system.

Oral Answers to Questions

Nick Smith Excerpts

Wednesday 27th June 2012 Commons Chamber

[Mrs Gillan]

I have stressed that the continuation of a strong military presence in Wales is of great importance both to the local communities and to the country as a whole. I proudly display at the entrance to Gwydyr House the emblem of the Queen’s Dragoon Guards, which celebrates the bravery and commitment of our armed forces in Wales on behalf of Queen and country. I will continue to give every support to our Welsh regiments, including the QDG.

[Nick Smith (Blaenau Gwent) (Lab)]

The feet-dragging by the Ministry of Defence over the future of the Welsh cavalry is deeply damaging to its morale. Will the Secretary of State strongly urge Defence Ministers to keep it?

[Mrs Gillan]

The hon. Gentleman is well aware that I have fully supported the Welsh cavalry—the QDG. I will take no lessons from a party which, in restructuring the Army, consigned more than 600 years of military tradition in Wales to the history books when it abolished the Royal Welch Fusiliers and the Royal Regiment of Wales to form the Royal Welsh. I, certainly, will continuously press the Welsh regiments’ case at the highest level, and the hon. Gentleman should take comfort from that.

Oral Answers to Questions

Nick Smith Excerpts

Wednesday 25th April 2012 Commons Chamber

[Mr Jones]

Yes, indeed. It is vital, too, that the Welsh Assembly Government work closely with the Government in Westminster for the good of the people of Wales. I very much hope that we will now see a far more joined-up approach taken by the Welsh Assembly Government in that regard.

[Nick Smith (Blaenau Gwent) (Lab)]

4. What assessment she has made of the treatment of capital allowances in enterprise zones in Wales; and if she will make a statement.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

The Chancellor announced funding for enhanced capital allowances in the Deeside enterprise zone in the Budget in addition to the money already provided for enterprise zones in Wales. We are committed to looking at how we can provide these allowances elsewhere but the Welsh Government must develop strong, detailed and robust business cases.

[Nick Smith]

I thank the Secretary of State for her interest in the Blaenau Gwent enterprise zone. Plans for a motor industry complex there are now at a critical juncture. We need to know if capital allowances can be delivered or if other tax treatments are a better prospect. May I press her for a meeting between developers and the Chief Secretary to the Treasury, so that we can thrash out a solution?

[Mrs Gillan]

The hon. Gentleman has worked tirelessly for his constituency to develop these proposals for the Ebbw Vale enterprise zone, and I really do congratulate him on that. We have met on other occasions and I have written to him again today, saying that I am very willing to try to secure a meeting with the Chief Secretary to the Treasury, but without a business case the Treasury cannot make any decisions on further enhanced capital allowances. I urge the hon. Gentleman to discuss the subject with the Welsh Government as well as with our Government.

Oral Answers to Questions

Nick Smith Excerpts

Wednesday 18th January 2012 Commons Chamber

[Mr Jones]

Governments of all political complexions have recognised for many years the need for some parts of the UK to be funded differently from others. Concerns have, of course, been expressed about the Barnett formula, but the priority now is to reduce the deficit, and any changes to the system must happen once the public finances have been stabilised.

[Nick Smith (Blaenau Gwent) (Lab)]

The Welsh Assembly has funded the initial development of a motorsport complex in Blaenau Gwent. Will the Minister please ensure that the Government give every funding support possible to get that project off the drawing board and on to the track?

[Mr Jones]

I commend the hon. Gentleman for the hard work he has done on that project. The Wales Office is very interested in the matter and we will continue to show interest.

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[The Prime Minister]

First of all, it is very important that we commemorate the Falklands war this year—the 30th anniversary—and remember all those who served and fought so hard and some who gave their lives and did not come home. We should remember all those people this year. The absolutely vital point is that we are clear that the future of the Falkland islands is a matter for the people themselves. As long as they want to remain part of the United Kingdom and be British, they should be able to do so. That is absolutely key. I am determined to make sure that our defences and everything else are in order, which is why the National Security Council discussed the issue yesterday. The key point is that we support the Falkland islanders’ right to self-determination. I would argue that what the Argentinians have said recently is far more like colonialism, as these people want to remain British and the Argentinians want them to do something else.

[Nick Smith (Blaenau Gwent) (Lab)]

Q9. Blaenau Gwent has seen a rise in unemployment today to more than 3,000—a 16% increase in the past year. When does the Prime Minister expect unemployment to start falling?

[The Prime Minister]

The forecast is set out by the Office for Budget Responsibility and it is for it to make the forecasts—and it expects unemployment to be lower at the end of this Parliament than at the start, and employment to be higher. The Government’s job is to try to do everything they can to help the hon. Gentleman’s constituents into work—via the Work programme, the youth contract, the apprenticeship schemes and work experience, but above all, by keeping interest rates low, so our economy can grow and we do not fall into the mistakes that others in Europe have.

Oral Answers to Questions

Nick Smith Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Mrs Gillan]

This is becoming a common theme. Although the enterprise zones have been declared by the Welsh Government, we have only a recent letter from the Minister for Business, Enterprise, Technology and Science of 22 November to Assembly Members, which says that the Department is currently working hard with colleagues in transport, planning and elsewhere to ensure that its enterprise zone policy can be delivered. We can only hope that it gets a wiggle on and gets those details out to businesses as fast as possible.

[Nick Smith (Blaenau Gwent) (Lab)]

Blaenau Gwent, with high unemployment but great potential, includes an enterprise zone. I thank the Secretary of State for meeting developers who propose to build a £200 million race track there. She offered to speak to Ministers from the Treasury and from the Department for Business, Innovation and Skills about that infrastructure plan and capital allowances. Following those representations, will she meet me to feed back on progress?

Commission on Devolution in Wales

Nick Smith Excerpts

Thursday 3rd November 2011 Commons Chamber

[Paul Murphy]

That is for the two Governments to discuss. In the House of Commons, we are debating what it is sensible for the Silk commission to consider. I said that I did not want that to hold up any discussions that are under way, because there are implications for Scotland and Northern Ireland, but it is crazy that that cannot be discussed while all the other issues affecting money are being discussed.

I cannot understand from the response of the Secretary of State to the hon. Member for Monmouth the difference between current and future borrowing. Either one agrees with the concept of the Welsh Government being able to borrow, or one does not. The Northern Ireland Executive and the Scottish Government will be able to borrow, and local government can borrow, so why on earth can the Welsh Government not borrow? It is quite incongruous that that is the case, and I am glad at least that they can discuss borrowing, even if they cannot discuss borrowing at the moment.

Part II of the terms of reference is about powers and functions, and I agree that there is a case for looking at incongruous and difficult cross-border issues, which need to be tidied up. Most Members of the House of Commons would be wary of transferring policing and justice to the Welsh Assembly. We have a different system from Scotland, and we are so bound up with the English judicial and legal system that I would not agree with such a transfer. Another issue that will not be discussed at all by the commission—this is why it would have been useful for the House of Commons to discuss its terms of reference before we had the debate—is the way in which the Assembly is voted in. If there is going to be a reduction in the number of constituencies, presumably to 30, with a relationship between Parliament and the National Assembly, which is voted on, it is unusual that that issue should not be debated or discussed by the Silk commission, particularly as any decision on how we elect the Welsh Assembly should be based on a proper mandate at a general election. I hope that the Secretary of State and her Government will not even contemplate discussing those matters until after the next election.

[Nick Smith (Blaenau Gwent) (Lab)]

I am interested in my right hon. Friend’s point about constituencies and coterminosity. Wherever possible, Assembly constituencies should align closely with boroughs and parliamentary constituencies, because that leads to better government, better democracy and better services.

[Paul Murphy]

But the Parliamentary Voting System and Constituencies Bill had nothing to do with better democracy and everything to do with partisanship. The Government were so stubborn in the other place in refusing 10% flexibility that taking local government boundaries into account is hardly possible because of the rigidity that has been introduced in the system. If there had been consensus, that might have been considered, but there was no such consensus.

Finally, we have to be careful that the proposals are not based on a hidden agenda from the Government—what I call the Trojan horse. The hon. Member for Monmouth referred to the West Lothian question, and the Silk commission’s hiving off financial responsibility to the Welsh Assembly, and perhaps—we do not know for sure —taking away the block grant is part of the agenda of the new Conservative party. It used to be the Conservative and Unionist party, but it has long since ceased to be Unionist.

The West Lothian question means that the Government want to have two classes of Members of Parliament, not British-United Kingdom Members of Parliament who speak on everything because we have been elected by our electors to talk about the United Kingdom—every part of it: Northern Ireland, Scotland, Wales and England. I referred to the complaints time and again that we are getting too much money in Wales and Scotland. Perhaps the most obvious thing is that out of 117 Members of Parliament representing constituencies in Wales, Scotland and Northern Ireland, only nine come from the Conservative party. It will probably be wiped out at the next general election in Scotland and who knows where else. The combination of all those things, to me, means that the Conservative party has now become a party of little England. I am sure the hon. Member for Monmouth, who represents a Welsh constituency, would agree.

--- Later in debate ---

[Mr David]

Yes, very unfair indeed. He asked how a Member from the south-east of England can have a proper understanding of the situation in Wales—but of course, as we all know, Chesham and Amersham is not in the south-east of England; it is in Buckinghamshire, which is a lot closer to Wales. However, I doubt whether that fundamentally alters the lack of understanding, let alone empathy, for the people of Wales on the part of our current Secretary of State. That is clearly shown in the way that the boundary changes that we are soon to see enacted were pushed through the House of Commons against the interests of democracy and without proper discussion in this House. Unfortunately, therefore, when the word “consensus” is used regarding constitutional matters, a question mark has to be put over whether that involves a genuine statement of intent.

I am concerned that the terms of reference are written in such a way that the work of the commission will be conducted within the parameters of the United Kingdom’s fiscal objectives. We all know what those central Government objectives are—to make cuts, cuts, cuts, and nothing but austerity, austerity, austerity. It is important to realise that when we are talking about fiscal matters regarding Wales, we are talking about not increased resources but fewer resources. The question is how that reduction in resources will be introduced.

We all know that Wales is very dependent upon the block grant, which has been cut by 1.3% since the Conservative-Liberal Democrat coalition came to power. The big danger is that there will be bigger cuts before too long, which is why the context of the commission is very important.

Another of the commission’s terms of reference is worth noting—the need to ensure consistency of fiscal powers within the UK. The hon. Member for Monmouth (David T. C. Davies) made the point that devolution, by definition, is asymmetrical, so why does consistency have to be a bedrock principle of the commission? We ought to recognise that whatever is proposed for Wales will be different from what happens in other parts of the UK, and so it should be.

My third and final reservation about the commission is the fact that Wales has historically been, and currently is, very dependent upon public expenditure. We all know that the Barnett formula and the block grant are important, but let us also recognise that there are other elements of public expenditure in Wales, which are often not recognised but are nevertheless crucial to its well-being.

One of the strengths of the United Kingdom is that, contrary to the nationalist interpretation of British history, Wales is not a subjected nation, under the heel of England. The reality is that there have been transfers of resources from the richer parts of the United Kingdom, particularly the south-east of England, to the poorer parts, and that is how it should be. That is the strength of the UK, and I would not like to see any measures adopted that placed a question mark over the integrity of the UK. Anything that did that would be not just a retrograde step for the concept of the United Kingdom, but potentially damaging to the people of Wales.

I mentioned Gerry Holtham, and we must recognise the importance of his in-depth analysis of the possibilities and options for the development of fiscal powers for Wales. In his introduction to that report, he stated:

“To be sure, economic reality and the integrity of the UK impose constraints on what it is practical or advisable to devolve.”

It is extremely important to bear that in mind, not least because he is an eminent economist but also because he is passionately committed to the principle of devolution. He is saying, in other words, that there is no point having devolution for devolution’s sake. We have to take a pragmatic approach of bringing power closer to the people, but we also need measures that enhance the material well-being of the people of Wales.

[Nick Smith]

I, too, support the principle of devolution, but what people in the towns of Tredegar, Ebbw Vale, Abertillery and Brynmawr are interested in at the moment is jobs. With long-term youth unemployment having risen by 60%, they want a Government who deliver real jobs to boost our economy in Wales.

[Mr David]

My hon. Friend makes a very important point. It is essential that we do not consider this as an abstract constitutional debate, because it has a direct bearing on the well-being of the people of Wales, their economic prosperity and the levels of employment that they enjoy.

I have sought to emphasise the importance of public expenditure to Wales. It remains important and will continue to be so well into the future. We are in the process of changing the nature of the Welsh economy, but by definition that process will take a long time to work through. It is important to recognise that. My hon. Friend the Member for Blaenau Gwent (Nick Smith) is correct, therefore, about the need to ensure that this is not an abstract debate, because it impinges on the lives and realities of the people of Wales.

I hope that this will be the start of the ongoing debate that unquestionably we need to have. I also genuinely hope that if we are to have change, there will be a political consensus, not only in the House, but among our colleagues in the Welsh Assembly and many people in Wales, too. That is a desirable outcome to work for, and I hope that it will be achieved, but at the end of the day, whatever course of action is decided upon, our acid test must be: what is best for Wales and its people?

--- Later in debate ---

[Owen Smith]

Several Government Members have talked about what, to put it bluntly, is ancient history now and pointed to the size of the mandate and turnout, but we all know that politics is a precarious, parlous business. The Tory party clearly thought that it had a sufficient mandate at the last election. It did not get a majority, but nevertheless it is the ruling party. We have to bury that argument and move on. Right now, there is clear support for devolution in Wales, as was shown in the recent referendum. That is not in dispute. It ill behoves Government Members, who purport to support devolution, to keep dredging up these ancient concerns and this ancient history, because, frankly, it gives us the suspicion that they still have not quite bought into it.

I have a second concern, which, actually, I share with some Government Members—even, perhaps, the hon. Member for Monmouth (David T. C. Davies)—about the constant, cyclical nature of the interaction between demands and desires, legitimate or otherwise, for additional, incremental powers in Wales, Scotland, Northern Ireland and even, perhaps, England. That is a problem. It leads to perpetual pressure for change and to very few instances in which we—legislators in this place and the devolved Administrations, which have their own particular locus—can put our foot on the ball and contemplate the broader picture, the country’s longer-term trajectory. That is hugely important. The Silk commission ought to consider that wider context.

In particular, however, this House needs to consider that wider context and be the place in our country where we contemplate the aggregate impact of the changes to the particular discrete functions and powers of different parts of the UK and where we think long term about what the benefits and disbenefits might be. That is not to take an anti-devolutionist perspective, however. I am thoroughly committed to devolution and the principle of subsidiarity—pushing down power and democratic accountability as low as we can—which is why I talk in my excellent and recommended article for Compass about reinvigorating local government democracy in England, which would be a jolly good thing. However, I am also British—indeed, proudly so—and I feel that my values and those of the Labour party transcend national boundaries and the identity politics that stem from an obsession with national boundaries. My concern is that the wider picture—the longer-term perspective—is too infrequently considered in this place or, in particular, the devolved Assembly. I do not want Wales to be as politically peripheral in Britain as it is de facto geographically peripheral. I worry that at some point that will be the net consequence—the aggregate impact—of these things.

Let me turn briefly to some of the specificities of what Silk will consider. I will take only one—corporation tax—but for me, they all highlight the risk that we might face. Anyone picking up the Financial Times this morning could have read an article about Peter Robinson, the First Minister of the Northern Ireland Assembly, who has advocated adopting a 10% corporation tax rate to compete with the 12.5% rate in the south. My view is that this would be hugely difficult and dangerous. Although it might be advantageous for Northern Ireland in the short term, we should also consider the risk that it would necessarily lead to arbitrage between the two areas and to different pricing arrangements. If we had variable taxation bands between different parts of the mainland, we would certainly see arbitrage across the borders and we would need internal transfer pricing policy and legislation in this place and the other jurisdictions. Given the difficulties with legislative vehicles to deal with transfer pricing between European countries—the disaster, even—what on earth would they be like within the UK?

Westminster needs to hold the ring. Westminster needs to consider the risks. Westminster needs to be the place where this debate is thought about, in conjunction with the discrete and—from the perspective of the local jurisdictions—eminently reasonably changes that may be wished for. This place also needs to be where the broader economic context is considered, because, bluntly, some of the peripheral changes to taxation that we are talking about and that Holtham talks about—indeed, perhaps even the larger changes too—will not lead to the growth, jobs, wealth and opportunity that would be created by measures that the Government could be implementing right now, such as those in Labour’s five-point plan.

[Nick Smith]

I congratulate my hon. Friend on his support for subsidiarity and decisions being made at the right level. The success of the Welsh Assembly, particularly in the last few months, has been based on its good ideas, such as the Welsh job fund and introducing local police support officers, all because people in Wales are fed up with the horrible attacks that we have seen from the Government.

[Owen Smith]

My hon. Friend is absolutely right. The Welsh Assembly has understood that in order to stimulate our economy we need a stimulus. We cannot sit on our hands and assume, as the Government do, that laissez-faire economics will drive economic progress in our country.