Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 13th January 2016 Commons Chamber

[Karen Lumley (Redditch) (Con)]

2. What assessment he has made of the adequacy of Government support for small and medium-sized businesses in Wales.

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

Our nation’s small businesses are the true heroes of this economic recovery, and I am proud to be part of a Government who are on their side. SMEs have created two thirds of all the new jobs in the private sector in Wales since 2010. As we continue to reduce regulation and lower taxes, support for small businesses right across the UK has never been stronger.

[Karen Lumley]

This year is the British Chambers of Commerce year of action on exports. Will my right hon. Friend update the House on how he is helping small businesses in Wales to punch above their weight this year?

[Stephen Crabb]

My hon. Friend raises a very important point. We have set ourselves a really ambitious target of £1 trillion of exports from the UK by 2020. If we are going to have any hope of meeting that target, we need to engage with SMEs right across the UK, especially in Wales. That is why I will be in north Wales tomorrow, with my right hon. Friend the Minister for Trade and Investment, promoting everything that north Wales has to offer.

[Stephen Kinnock (Aberavon) (Lab)]

The Welsh steel industry plays a critical role in underpinning business right across the board, including SMEs, but global headwinds affecting the industry have been growing stronger. Will the Secretary of State join me and Welsh MPs from all parties in asking for a meeting with his right hon. Friend the Secretary of State for Business, Innovation and Skills to ensure that no stone remains unturned in the fight to save the Welsh steel industry?

[Stephen Crabb]

I thank the hon. Gentleman for his question and for the spirit in which he asked it. He knows as well as we do that the steel industry right across the UK, not least in Wales, faces a global crisis. He is aware of all the different actions being taken by the Government to try to help the British and Welsh steel industry face the global nature of the crisis. I am very happy to pass on his request to the Business Secretary. We are obviously in very close contact, as is the hon. Gentleman, with Tata, and especially the plant in Port Talbot in his constituency.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

My right hon. Friend will know that one of the small businesses emerging in Wales is Tidal Lagoon Power Ltd, which has exciting plans for the Swansea bay tidal lagoon. The roll-out programme also includes Cardiff, Newport and north Wales. When can we expect to hear what financial support will be forthcoming from the Government so that this exciting project can proceed without delay?

[Stephen Crabb]

My right hon. Friend the former Secretary of State is right. The Swansea tidal lagoon proposition is very exciting and commands wide support across the business community in Wales, but we also need to recognise that the project is asking for a very significant level of public subsidy and intervention. It is absolutely right that my right hon. and hon. Friends in the Treasury and the Department of Energy and Climate Change should conduct very robust due diligence in making sure that such projects will deliver value for the taxpayer.

[Albert Owen (Ynys Môn) (Lab)]

One of the issues that small businesses raise with me in my constituency is the lack of connectivity for superfast broadband and, indeed, mobile connections. Now that the Government and the Prime Minister agree with me on the universal obligation for broadband, will the Secretary of State help me by supporting a pilot scheme on Ynys Môn, the Isle of Anglesey?

[Stephen Crabb]

The hon. Gentleman raises a very important point. We have discussed this many times in Wales questions and debates. Improvements are happening right across Wales, and we are seeing big improvements in internet connectivity and for mobile phones in his constituency and mine. There is much more that we can do. I am very interested to hear about a pilot project in Anglesey, which I am happy to discuss with ministerial colleagues.

[Dr James Davies (Vale of Clwyd) (Con)]

In early December, the UK Government announced £50 million of additional funding to address flooding issues. That figure has Barnett consequentials for Wales of £2.276 million. Since then, a further £90 million has been announced by the UK Government, and we await to see what, if any, Barnett consequentials will arise from that. On the new money to be allocated to Wales, will the Secretary of State join me in calling on the Welsh Assembly Government to allocate it to St Asaph? Many SMEs, as well as local residents, were flooded there three years ago, and there is currently a £4 million shortfall for the necessary flood defence works.

[Stephen Crabb]

I absolutely join my hon. Friend in making that suggestion and recommendation. It is worth putting it on the record that our sympathy and thoughts are with all the families and businesses in Wales, as well as with those right across the UK, that suffered damage due to flooding over the Christmas period. All the new money that the Government have announced to address flooding issues has delivered Barnett consequentials for Wales. It is up to the Welsh Government to decide how to use that money, but we certainly want them to use every single penny to help to address flooding issues. I am afraid that we will have to come back time and again to such issues and discuss them in this place.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Further to the question from the hon. Member for Aberavon (Stephen Kinnock), the Minister will undoubtedly share our concern about press reports over the weekend. What contingency plans do the UK Government have for a worse-case scenario? Would he support a Welsh public stake in the Welsh operations of Tata, as was afforded to the banks of London during the financial crash of 2008?

[Stephen Crabb]

I will not engage in the speculation about job cuts that we saw in the press at the weekend. Members from all parts of the House need to be responsible in how we debate these issues. We are in very close contact with Tata internationally and with regard to its operations across the UK, including in south Wales. We are discussing closely what its needs are at this moment. There are big issues and questions that need to be addressed.

[Nick Smith (Blaenau Gwent) (Lab)]

3. What steps the Government are taking to improve rail connectivity to south Wales.

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

Last week my right hon. Friend the Chancellor of the Exchequer visited Cardiff and announced his desire to deliver a city deal by Budget 2016. We are now working with the Cardiff capital region to deliver on ambitious proposals that will increase economic growth, not only in the city but across the entire south Wales region.

[Craig Williams]

Last week the Chancellor brought a welcome sense of urgency to the Cardiff city deal process, with the deadline of March and a down payment of £50 million for a compound semiconductor catapult centre. Does the Secretary of State agree that with a semiconductor catapult at the heart of the city deal process, we stand a real chance of securing a long-term transformation of the south Wales economy?

[Stephen Crabb]

My hon. Friend is right, and I put on record my thanks for his work in championing the city deal for Cardiff. The Chancellor’s announcement last week was a massive statement of this Government’s confidence in Welsh business and our ambition for Wales. The £50 million is a down payment on the Cardiff city deal, and it is now time for local partners, Welsh businesses and the Welsh Government to crack on and conclude this transformational project.

[Jo Stevens (Cardiff Central) (Lab)]

We do not want just warm words from the Chancellor about the Cardiff city deal; we want to know whether the UK Government will match the £580 million that has been pledged by the Welsh Government for the Cardiff city deal. Can the Minister answer that?

[Stephen Crabb]

I am not sure whether the hon. Lady noticed, but during our visit to Cardiff last Thursday we were not just using warm words; we were investing £50 million of UK Government money in a new high-tech centre of innovation at Cardiff University. The Chancellor made it clear in his speech in Cardiff last Thursday that we will support in principle the infrastructure fund that will be at the heart of the Cardiff city deal project.

[David Rutley (Macclesfield) (Con)]

7. What recent assessment he has made of the economic effect on north Wales of the northern powerhouse; and if he will make a statement.

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[Craig Tracey (North Warwickshire) (Con)]

8. What assessment he has made of trends in the number of workless households in Wales.

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

In all parts of the United Kingdom our welfare reforms are working, transforming the lives of those from the most disadvantaged backgrounds. The number of workless households in Wales continues to fall, with 12,000 fewer in the last year alone.

[Craig Tracey]

Does the Secretary of State agree that the Government’s welfare reforms are improving the life chances of children in Wales?

[Stephen Crabb]

I absolutely agree with my hon. Friend. We on the Government Benches understand that work is the best route out of poverty. I am very pleased that in Wales the number of children growing up in a home where no parent works has halved, falling by 62,000 since 2010. I am clear that if we are to transform life chances, we have to go much deeper and address the root causes of worklessness, as my right hon. Friend the Prime Minister pointed out in his speech on Monday.

[Ian C. Lucas (Wrexham) (Lab)]

Four years ago, my constituent Margaret Foster was sacked from Remploy by this Prime Minister. Yesterday, I raised her case in a debate. Today, I have been approached by local employers offering her work. Why are the Secretary of State and the Prime Minister presiding over a system to support disabled workers so useless that it takes a Member of Parliament raising the issue in Parliament for anything to happen?

[Stephen Crabb]

The proportion of disabled people in Wales in work has increased under this Government. There was a time when Labour Members understood and talked the language of welfare reform. Maybe when they have stopped kicking lumps out of each other they will get back to addressing it.

[Derek Thomas (St Ives) (Con)]

9. What steps the Government are taking to establish a tidal lagoon in Swansea?

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

I recognise that the proposed Swansea tidal lagoon project has the potential to establish Wales as a major hub for tidal power, creating thousands of jobs and attracting millions of pounds of investment. Robust due diligence is, of course, essential in the interest of taxpayers, who would incur the cost of any subsidy through their energy bills.

[Derek Thomas]

Dean Quarry in my constituency is likely to be the source of stone for the tidal lagoon. For over a year, local residents have been concerned about that because it is an important tourist area and marine conservation zone, and we believe there are cheaper areas from which to source the stone. Does the Minister agree that the impact on the environment and the economy is too great and that other sources of stone are available? Will the Government look for places other than Dean Quarry to get the stone?

[Stephen Crabb]

I am aware of the issue raised by my hon. Friend, who is as ever a powerful and effective voice on behalf of his constituents. Planning applications in relation to Dean Quarry would be dealt with by the Marine Management Organisation and local authorities, which should absolutely take into account local concerns.

[Christina Rees (Neath) (Lab)]

Local businesses across Wales are eagerly anticipating the investment that the tidal lagoon will bring. It would be a travesty if the UK Government were to pull the plug on the lagoon, so can the Minister confirm that they remain committed to the project and to agreeing a strike price for the tidal lagoon?

[Stephen Crabb]

The hon. Lady is right: this is a big, potentially very exciting and significant project. It is also a project that is looking for a large amount of public subsidy and intervention, and it is absolutely right—not that we would expect Opposition Members to understand this—that when we are dealing with large sums of taxpayers’ money, there needs to be due diligence.

[Mr Speaker]

Last but not least, I call the Chair of the Environmental Audit Committee.

[Huw Irranca-Davies (Ogmore) (Lab)]

Swansea bay tidal lagoon and the other potential lagoons that may result from it provide amazing opportunities for exports of intellectual property, technology and supply chains across south Wales. Will the Secretary of State at least commit to making it happen and doing it as soon as possible?

[Stephen Crabb]

I repeat the answer I gave to the hon. Gentleman’s colleague. We recognise that this is a potentially very exciting and significant project, in delivering low-carbon renewable energy over a long period. We need to look carefully at the finances to ensure that it delivers value for taxpayers, who will be asked to put a large amount of subsidy into the project.

The Prime Minister was asked—

Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 18th November 2015 Commons Chamber

[Wayne David (Caerphilly) (Lab)]

1. What steps the Government are taking to support the steel industry in Wales.

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

I would like to start by putting on record the enormous sense of solidarity felt by all people across Wales with the French nation. We stand with them shoulder to shoulder in these difficult and anxious days.

The steel industry in Europe is facing a perfect storm as a result of a glut of cheap imports, falling prices and high energy costs. With nearly half of the UK’s primary steel industry employed in Wales, we fully recognise the impact of these global challenges on Welsh steelworkers and their families. We are working closely with the industry and with the devolved Administrations to do everything possible to support the industry at this time.

[Wayne David]

We on the Labour Benches associate ourselves with the Secretary of State’s words about the people of Paris.

On 28 October, the Secretary of State for Business, Innovation and Skills attended an extraordinary meeting of the Competitiveness Council on the steel industry. Following that EU meeting, plenty of warm words were issued in a written statement, but can the Secretary of State tell the House what practical measures were agreed to help the steel industry in this extremely difficult time?

[Stephen Crabb]

I thank the hon. Gentleman for the question. Before I answer it substantively, I should make the House aware that there has been an explosion in the past hour at the Celsa Steel plant in the constituency of the hon. Member for Cardiff South and Penarth (Stephen Doughty). Our thoughts are with the workers at this time and with the emergency services who are at the plant as we speak.

On the practical response to the global challenges facing the steel industry, the hon. Member for Caerphilly (Wayne David) will be aware of the specific practical working groups that we established following the national summit. Those engage the Welsh Government as well as the Scottish Administration, and action has been taken by the Business Secretary at a European level to get our European partners to focus much more seriously and more urgently on tackling dumping and bringing forward state aid clearance so that we can fully compensate our steel industry for the higher energy costs that it faces.

[Chris Davies (Brecon and Radnorshire) (Con)]

What assurances can my right hon. Friend give me that procurement for large infrastructure projects, such as the electrification of the great western main line, will prioritise the use of British steel?

[Stephen Crabb]

I am grateful to my hon. Friend for that question, as it gives me the opportunity to talk about one practical measure that we have taken in recent weeks: we have changed the guidelines for Departments on procuring steel for major projects, allowing for Government contracts to take into consideration wider economic and social impacts, which we hope will create more opportunities for UK steel manufacturers to win those bigger contracts. With this Government making a record investment in infrastructure, that creates future growth opportunities for the British steel industry.

[Mark Tami (Alyn and Deeside) (Lab)]

Although we clearly need measures such as help with business rates and energy costs, does the Secretary of State agree that if we do not tackle Chinese dumping, all those other measures will count for nothing and that the future of the industry in this country is bleak?

[Stephen Crabb]

I agree with the sentiment and the direction of the question. That is the backdrop to the global challenge, not just for the British steel industry, but for the steel industry in north America and all across Europe. With a glut of cheap Chinese steel coming on to the market, we are leading efforts at a European level to tackle dumping. We voted for the anti-dumping measures in one specific section of the steel industry and we are continuing with those discussions.

[Bob Blackman (Harrow East) (Con)]

I thank my right hon. Friend for the answers that he has given so far, but what measures is he taking with the Wales Office to lobby other Government Departments to pre-order steel from Wales and other areas of the country for our infrastructure projects to ensure that there is a future for steel in Wales?

[Stephen Crabb]

My hon. Friend is right. That taps into the point that I made a few moments ago about the changes that we have made in the procurement guidelines. The Crossrail project, for example, which has used 50,000 tonnes of high-quality steel from Celsa Steel, which I mentioned a few moments ago, is a great example of the UK Government investing in infrastructure and using the power of our procurement to create growth opportunities for British steel manufacturers.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The incident this morning at Celsa in my constituency to which the Secretary of State has referred is obviously deeply concerning news. Can he say anything more about the incident and ensure that there is full support from all in responding to and investigating it?

[Stephen Crabb]

As I understand it, the incident happened in the past hour. Ambulances are at the scene. I am told by officials that there are three injuries at the site. That is all I know at this moment. As the hon. Gentleman says, our thoughts are very much with the workers, their families and the emergency services at the scene.

[Nia Griffith (Llanelli) (Lab)]

First, I echo the words of the Secretary of State in respect of the tragic events in Paris and the explosion at Celsa this morning.

The Secretary of State knows just how serious is the crisis facing the steel industry in Wales, and indeed the whole of the UK. Four years ago, the Chancellor promised a compensation package for energy-intensive industries. What reassurance can the Secretary of State now give to the thousands of workers in Wales whose jobs depend on the steel industry that his Government will deliver that package by the end of this month?

[Stephen Crabb]

The point I would make first up is that we are in the process of delivering that compensation. We have already paid out about £50 million in compensation to British steel companies, not least to companies based in Wales, so the money is already getting to them. What we are talking about at the moment is getting state aid clearance for the final element of the compensation package. That is really important for the steel companies, and we are pressing hard to get it.

[Nia Griffith]

After four years, the Secretary of State’s Government have still not finished negotiating one package. That hardly bodes well for the promises the Prime Minister is making about EU reform.

The Government have made much of merely renewing existing anti-dumping measures, but with 94% of the Chinese steel that comes into the EU flooding the UK market, why is the Secretary of State’s ministerial colleague in the EU Council of Ministers blocking the much needed reform of the trade defence instruments?

[Stephen Crabb]

I am not sure that the hon. Lady is fully sighted on all the actions on steel that we are taking at a European level. My right hon. Friend the Secretary of State for Business, Innovation and Skills and his colleague, the Minister for Small Business, Industry and Enterprise, have been at the forefront in discussions and negotiations at a European level to get change, with real, practical, urgent action on anti-dumping and on state aid clearance for compensation for energy costs. We are leading the way in trying to get change at a European level to support and protect our British steel industry.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

2. What steps he has taken to ensure access to justice services in Welsh.

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[Andrew Griffiths (Burton) (Con)]

3. What assessment he has made of trends in the level of inward investment in Wales.

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

Almost exactly one year on from the UK investment summit in Newport, inward investment figures for Wales show the best performance for a quarter of a century. This is no coincidence. With the support and assistance of UK Trade & Investment and the UK Government, Wales continues to provide a world-class offer for foreign investors.

[Andrew Griffiths]

Will the Secretary of State join me in congratulating all the workers in Wales who make it such a brilliant place in which to invest? Does he agree that this record investment shows that the Government’s long-term economic plan is working?

[Stephen Crabb]

I completely agree with my hon. Friend. The economy in Wales is getting stronger, thanks partly to new inward investment. Just a few weeks ago, I had the pleasure of welcoming Israeli investors to south Wales, where they announced £3 million of new investment, creating almost 100 new jobs. We should all be encouraged by the fact that inward investment in Wales is back to the level of the days of the Welsh Development Agency before the Welsh Labour Government abolished it.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I am pleased to hear the Secretary of State welcome the more than 100 inward investment projects in Wales in 2014-15. Will he now congratulate the Welsh Labour Government on making it possible?

[Stephen Crabb]

The important thing is to welcome the more effective partnership that now exists between the UK Government and the Welsh Government to deliver the inward investment. Of the new projects coming into Wales, 87% were secured on the basis of co-operation between the Welsh Government and the UK Government, and I have no hesitation in congratulating both.

[Mr David Jones (Clwyd West) (Con)]

High-quality transport infrastructure is crucial to attracting inward investment. I was therefore delighted to see the Under-Secretary at the rail summit in Llandudno last week. Will my right hon. Friend convey to his colleagues in the Department for Transport the clear message that came out of that summit that north Wales regards itself as part of the northern powerhouse and demands an electrified railway line?

[Stephen Crabb]

My right hon. Friend has been a powerful champion and advocate for investment in transport infrastructure in north Wales. The summit that happened last week was very important, and the Transport Secretary has received loud and clear the message about the importance of investing in transport in north Wales.

[Mr Mark Williams (Ceredigion) (LD)]

Welcome though the figures are, the Secretary of State will acknowledge the important contribution of higher education to inward investment. Is he satisfied that UKTI is fully aware of what is happening in Welsh universities? That would give it more ammunition to promote the very good story of Wales.

[Stephen Crabb]

The hon. Gentleman raises an important point. We have some world-class higher education institutions in Wales that are at the cutting edge of innovation. It is a reminder to us to keep reminding UKTI of the importance of that, and how higher education links into business growth in Wales.

[Neil Carmichael (Stroud) (Con)]

4. What assessment he has made of the economic value to Wales of the single market.

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

The single market offers enormous opportunities for Welsh business, accounting for 42% of Welsh exports. However, exports to non-EU countries account for 58% of our total exports and are worth more than £7 billion to the Welsh economy. That is why we are seeking EU reform to go further and faster on economic competitiveness, trade and deregulation, which will strengthen Welsh exports.

[Neil Carmichael]

Does the Secretary of State agree that the success of Airbus in Wales and in the south-west, which has connections to my constituency, demonstrates the value of the single market, and that reforming it further to include the digital economy and energy will give those important sectors even more capacity to expand and grow?

[Stephen Crabb]

My hon. Friend makes an important point, not least about the importance of investing in technology. If we are to drive up prosperity in Wales, we need more growth in higher technology. This afternoon, I am proud to be helping to launch a new compound semiconductor centre for IQE and Cardiff University. That is emblematic of the changes in the Welsh economy.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Twenty-five thousand jobs in Swansea bay city region rely on being in the single market. Swansea is, of course, in the convergence funding area. Will the Secretary of State support Swansea bay city region MPs’ bid to get the new tax centre for Wales in Swansea bay city region, given that it is an area of relative deprivation, and not Cardiff?

[Stephen Crabb]

Exciting things are happening in Swansea and the Swansea bay city region. I am delighted that Swansea MPs are working together. If they have a proposal about future changes to the delivery of Government services, with opportunities for Swansea, I ask them please to send them through and we will consider them.

[Mr David Nuttall (Bury North) (Con)]

Does the Secretary of State agree that no one who believes we should leave the European Union is suggesting that we stop trading with our European neighbours, and the fact that they sell more to us than we do to them means that there is no chance of their wanting to stop trading with us?

[Stephen Crabb]

The truth is that Wales’s future prosperity depends on whether we can transform the economy, improve productivity, invest in transport infrastructure and improve our skills and education. That is where Wales’s future prosperity and success lie, and the question of whether or not we remain in the European Union is therefore a secondary one.

[Susan Elan Jones (Clwyd South) (Lab)]

The Secretary of State is just a little bit shy today. Why cannot he just recognise that 191,000 Welsh jobs are totally dependent on EU trade and that Wales is a net beneficiary of EU aid? Cannot he just say—we will protect him from the Tory “Little Britain” sketch on the Benches behind him—that Wales is better off in?

[Stephen Crabb]

I am not often described as shy; I am interested that I have come across in that way to the hon. Lady this morning. I do not recognise the figure that she cites. The important point is that the single market creates a really strategic opportunity for Welsh business. That is what we need to defend and extend.

[Tom Pursglove (Corby) (Con)]

5. What effect the hosting of international sporting events has had on the Welsh economy in 2015 to date.

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

Our long-term plan is turning around the Welsh economy: since 2010, unemployment has fallen, manufacturing industry has created 12,000 jobs and the Welsh economy has grown faster than any other part of the United Kingdom.

[Andrew Bridgen]

Does the Secretary of State agree that key to rebalancing the economy is getting a proper grip of the public finances? Does he share my shock and horror at the recent TaxPayers Alliance report that exposes the enormous amount of waste in the public sector in Wales?

[Stephen Crabb]

With his eagle and sharp eye on the care of the public finances, my hon. Friend makes a really important point. I was actually shocked by some of the examples from the TaxPayers Alliance that we have read. Clearly, the Welsh Government and the entire public sector in Wales need to get a much stronger grip on the disciplines of cost control and to get on top of managing the national finances.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Provisional results from the annual survey of hours and earnings by the Office for National Statistics show that Wales is at the bottom of the pay table and is the only part of the British state where earnings have gone down. Does that not indicate that the Welsh Government need to be empowered with a wide portfolio of fiscal powers—the Secretary of State has supported that for Scotland—as direct control from Westminster is clearly failing?

[Stephen Crabb]

I agree with the hon. Gentleman that the Welsh Government need more fiscal tools. They need the responsibility of income tax devolution to encourage them to be a more financially responsible Administration. The point that he makes about earnings is also important. That is why he should be giving full-throated support to the steps that we are taking to drive up wage levels and end the curse of low pay in Wales.

[Hywel Williams (Arfon) (PC)]

7. What progress he has made on consulting civic society in Wales on the likely effects of the provisions of the draft Wales Bill; and if he will make a statement.

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

Last month, I published the draft Wales Bill for pre-legislative scrutiny and I continue to meet members of civil society, the judiciary and leading business organisations across Wales to take soundings and hear their views.

[Hywel Williams]

I thank the Secretary of State for that answer. There was a substantial deliberation on our country’s constitutional future, led by a distinguished former Officer of the House, Sir Paul Silk. However, the Secretary of State has so far chosen to include very few of the recommendations of the Silk commission in the draft Wales Bill. Will the final version of the Wales Bill give his final vision of our country’s constitutional future? Is this it for the foreseeable future?

[Stephen Crabb]

A lot of the Silk recommendations do not require primary legislation and we have already delivered them. We are committed to delivering the Silk recommendations that we have agreed on, which we set out in the St David’s day announcement earlier this year.

[Hywel Williams]

There is general, substantial and growing dissatisfaction with the draft Wales Bill, not least among legal colleagues. Would the Secretary of State not be better advised to withdraw the Bill and start again?

[Stephen Crabb]

I fear that if we were to withdraw the Bill, we would see no progress whatsoever on strengthening and clarifying Welsh devolution, which I understood Plaid Cymru and the Labour party supported.

[Michael Fabricant (Lichfield) (Con)]

When I raised this issue before the general election, a previous Secretary of State for Wales said that I was wrong. Will the present Welsh Secretary say that if the Welsh people would like a Welsh Parliament, rather than a Welsh Assembly, they will be able to have one?

[Stephen Crabb]

To paraphrase the famous old man of Pencader, it will be the Welsh people ultimately who determine the direction and pace of Welsh devolution. The draft Wales Bill will give powers to the Welsh Assembly to call itself a Parliament and take on more law-making responsibilities.

[Mr David Hanson (Delyn) (Lab)]

8. What assessment he has made of the effect of changes to tax credits on families in Wales.

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[Mr Ranil Jayawardena (North East Hampshire) (Con)]

9. What assessment he has made of the effect in Wales of the Government’s measures to support small businesses.

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

Small businesses are the lifeblood of the Welsh economy and are leading the way in creating new jobs and driving growth. There are now 22,000 more businesses in Wales than in 2010. Supporting these businesses to grow is a key part of the Government’s long-term plan for Wales and the UK.

[Mr Jayawardena]

Does the Secretary of State agree that infrastructure is critical to supporting small businesses and that the electrification of the Great Western railway, which serves my constituency too, will unlock social and economic opportunities for his constituents and mine?

[Stephen Crabb]

I totally agree with my hon. Friend. Of course, investing in the Great Western line is just one part of the largest programme of investment in British railways since the days of Isambard Kingdom Brunel.

[Craig Williams (Cardiff North) (Con)]

May I associate myself with the comments about the explosion in Cardiff today and the sad situation at the Celsa steelworks, and thank the Secretary of State for making us aware of it?

The legal profession is a crucial part of the small business sector in my constituency. The Secretary of State will be aware that the First Minister now wants a separate Welsh legal jurisdiction, despite what he said 18 months ago. Will he assure me he is protecting our jurisdiction?

[Stephen Crabb]

I am aware of the calls from the First Minister and Plaid Cymru for Wales to have a separate legal jurisdiction. One of the sources of Cardiff’s growth in recent years has been investment in legal and professional services, and I fear that moves to create a separate jurisdiction for Wales will lead to a flight of talent from the Welsh legal profession.

The Prime Minister was asked—

Steel Industry

Stephen Crabb Excerpts

Wednesday 28th October 2015 Commons Chamber

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

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“is concerned by the impact that recent redundancies in the steel sector could have on local communities and welcomes Government support for affected people in those communities; recognises the unprecedented global challenges currently facing the UK steel industry and agrees that all parties, including Government, opposition parties and the industry need to work together to secure a sustainable future for UK steel; and notes that the Government is in regular dialogue with the industry, including hosting a recent Steel Summit, and is taking urgent action to address both the industry's short-term and long-term concerns, including energy costs, unfair trade, the Industrial Emissions Directive and long-term procurement opportunities for the industry so as to ensure that the UK steel industry has a sustainable future.”.

I should perhaps explain to the House that I am responding to this debate on behalf of my right hon. Friend the Secretary of State for Business, Innovations and Skills who is in Brussels right now having urgent and important discussions with European Commissioners to address the crisis that the steel industry faces all across Europe.

I wish to start by saying that I have total respect for constituency Members who represent steel communities and who have come here this afternoon to speak passionately and earnestly on behalf of the workers and their families who are affected by this crisis. What has been really disappointing about the debate so far is the way that the Labour party has tried to turn this into a political football. I look across at the Opposition Benches to the faces of Members who were here before 2010 and I do not recall a single one of them coming to this place and standing up to speak up for steelworkers during Labour’s term of office, when the number of steelworkers in the UK fell by a half and the volume of steel production fell by a half. I think, therefore, that the Labour party needs to show some humility on this issue.

[Several hon. Members rose—]

[Stephen Crabb]

As we debate this crisis today—[Interruption.]

[Madam Deputy Speaker (Natascha Engel)]

Order. I think hon. Members need to calm down a little. If the right hon. Gentleman is not giving way, Members must sit down. If he is giving way, he will say so.

[Stephen Crabb]

I am happy to give way to the hon. Member for Penistone and Stocksbridge (Angela Smith).

[Angela Smith (Penistone and Stocksbridge) (Lab)]

I thank the Secretary of State for giving way. I was in this House from 2005, and Labour Members repeatedly made representations to the then Prime Minister, who listened to what we had to say. Before 2010, we did not have the carbon price floor. It is now damaging the steel industry significantly and this Government are doing nothing about it.

[Stephen Crabb]

I am not going to engage in a tit-for-tat on this. Let us just say that the record of the previous Labour Government on steel and on manufacturing was not a stellar one.

[David T. C. Davies]

Does my right hon. Friend agree that Labour Members ought to do him the courtesy of listening to what he has to say? Does he agree that it was they who started bringing in the carbon taxes that have caused problems for manufacturing and that it is this Government who have tried to hold those taxes down?

--- Later in debate ---

[Stephen Crabb]

As we debate this crisis today, we rightly make the thousands of workers in the steel industry and their families, who have faced devastating news about their jobs, and the many more who are working with the cloud of uncertainty hanging over the industry at this time, the central and primary focus of our concerns. When an individual loses their job, the pressures it creates can be a tragedy for their family and themselves. When whole communities are affected by large-scale job losses, the impact can be devastating—I completely recognise that.

[Nic Dakin (Scunthorpe) (Lab)]

I am pleased that the Secretary of State is now looking forward, because I, along with my colleagues on the other side of the House, have been talking about the needs of the steel industry in our community since being elected to Parliament in 2010. We need to look forward together and work together to build a better future. It just so happens that it is his Government who can make decisions now, not anybody else.

[Stephen Crabb]

I completely take the hon. Gentleman’s points and I pay tribute to the work he does on behalf of his constituents.

[Andrew Percy (Brigg and Goole) (Con)]

I wish to make a similar point to that made by the hon. Member for Scunthorpe (Nic Dakin). Although the Secretary of State is right to point out that the steel industry halved under the last Labour Government, does he agree that it would be a cruel deception for anybody to suggest that the solution to this crisis is wholly in the hands of any one Government, be they the British Government or even the European Union? Does he also agree that the best way forward is to have as much political consensus as we can across the House, just as we do in north Lincolnshire? That is the only way of ensuring that we do as much as possible at the national level and at EU level to deal with a crisis where, sadly, many of the factors are outside the control of any of those Governments?

[Stephen Crabb]

My hon. Friend makes an essential point about two things: the global nature of the crisis, which I shall discuss a little further during my remarks; and the need for political consensus, where it is possible. Opposition Members and Conservative Members who know me from Wales know that that is exactly the kind of approach I like to take, but it does require two sides to play—

[Several hon. Members rose—]

[Stephen Crabb]

I will take one more intervention and then I will make some progress.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Jobs in my constituency are at risk at Caparo in Wolverhampton. I am asking, on behalf of the people there: when did the Government first see the signs of this crisis? Why has it taken them so long to do something about it? Those are the kinds of questions that my constituents are asking, because their jobs are at risk. This is not a party political thing; this is a practical thing about job losses that may be happening in my constituency and elsewhere.

[Stephen Crabb]

There is continuous engagement with the steel industry and there has been for a long time; we have been discussing concerns with the industry since the beginning of the coalition Government in 2010. A Labour Member made the point earlier that this crisis has been around for a long time, but the phenomenon that the hon. Member for Wallasey (Ms Eagle) described as a “tsunami” of cheap Chinese steel is very recent, and it has completely changed the global dynamics of the steel industry.

[Several hon. Members rose—]

[Stephen Crabb]

I am not going to take any more interventions for the time being.

The steel industry across Europe and around the world is in the midst of a crisis, the magnitude of which has not been seen in at least a generation. Chronic global overcapacity has squeezed prices to the extent that the price of certain products has halved in recent times and is expected to fall further still. European demand is still about 30% below pre-crisis levels. The Chinese economy, which has until recently been the driver behind global steel demand, is slowing down. The world is awash with cheap steel looking for markets. For some products, cheap Chinese imports have gone from accounting for 0% of the market to representing 37% of the UK market share within 18 months—that is an extraordinary growth in a very short period. Chinese steel exports roughly doubled between 2011 and 2014. That is the extremely challenging backdrop to the current crisis facing our steelworkers. It has been described as a “perfect storm” in terms of the configuration of different events and phenomena that are affecting the global steel industry, but that is why the Government remain absolutely committed to doing everything in our power to support steelworkers across Britain in the weeks, months and years ahead.

[Geraint Davies]

Does the right hon. Gentleman accept that giving the contract on HS2 to the Chinese will increase the probability that they will use Chinese steel? Moreover, if we had given that contract to a British consortium, those companies would have paid British corporation tax, British national insurance and British income tax, and they would have supported British supply chains and built British capacity for the future. Is not his laissez-faire approach, which has neglected British steel and British industry, at the root of this problem—or a large part of it at least?

[Stephen Crabb]

Forgive me for saying so, but the hon. Gentleman makes a slightly confused point. The investment going into the rail industry is creating opportunities, now and in the future—huge opportunities for the UK steel industry. The Government are determined to help the UK steel industry take advantage of those investment opportunities.

[Mr Kevan Jones]

Will the right hon. Gentleman give way on that last point?

[Stephen Crabb]

I will take an intervention later.

We are providing support for those communities and families who have been affected by recent announcements. In Redcar, we have outlined a support package worth up to £80 million. We are working with the local taskforce we have established to develop proposals to support the individuals, the local economy and the supply chain. It is worth making the point that this is not a Whitehall, top-down solution; our commitment is to work with local partners to develop the right solution for those workers, their families and the communities. In Scunthorpe, we have set up a local taskforce to look at what needs to be done to support those affected and the local economy. Funding of up to £9 million has been provided to the Scunthorpe taskforce—

[Mr Kevan Jones]

On a point of order, Madam Deputy Speaker. I thought we were having a debate on steel today, but what we have is a Minister just reading out a civil service brief to the House. It is an absolute insult that he will not take any interventions. I know that BIS is not his own Department, so he might not understand the subject but surely the Government should have sent somebody who knows something about the subject rather than someone who is simply reading out what the civil service has given him.

[Madam Deputy Speaker (Natascha Engel)]

I think the hon. Member has put his point on the record. Let the Secretary of State continue.

[Stephen Crabb]

Madam Deputy Speaker, the hon. Member for North Durham (Mr Jones) was one of those Members I mentioned earlier who were here before 2010 and sat in silence while employment and manufacturing plummeted and UK steel production plummeted.

Moving on, we are also supporting the Scottish Government’s taskforces in Dalzell and Clydebridge. We will work with them and also continue to monitor the situation in the black country to make sure that necessary support is provided for communities and families affected by the Caparo Wire announcements.

The House understands that there are no easy solutions in the face of what are, unquestionably, incredibly difficult market conditions right now. Excess capacity in global steel is enormous—about 570 million tonnes last year, almost 50 times the UK’s entire annual production. The price of steel slab has fallen by a half in the past year alone, while fluctuating exchange rates have added further pressures.

[Tom Blenkinsop]

The right hon. Gentleman makes an interesting point about production, but what we have in the home UK economy is 3 million tonnes of scrap steel, which we export to Turkey and China, and it comes back here in slab. Will the Government look at developing a potential strategy for electric arc furnaces on sites such as Redcar to use to create a new home market to supply the British market rather than exporting to Turkey and China?

[Stephen Crabb]

That is a useful and constructive point. It is, of course, the model that Celsa Steel uses in Cardiff. At the moment, we are looking at all aspects of the steel industry to identify future growth opportunities.

[Mr David Hanson (Delyn) (Lab)]

The Secretary of State talks about what he cannot do, so can he talk about what he can do, which is in the area of procurement? What proposals do the Government have to procure British steel products in the next 12 months to keep this business open and flourishing?

[Stephen Crabb]

I am coming on to exactly those issues. We all have to acknowledge and be honest about the fact that there are limits to what we can do in response to the economic realities facing the steel industry. I see Opposition Members shaking their heads, but I make the point again—they need to step back and be honest about the realities of a global steel crisis that is affecting steel manufacturers across north America and all across Europe.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I grew up in a steel-working family and have constituents who work in Llanwern. Will the right hon. Gentleman accept what is being said to me—that there is not an acceptance that the Government have done enough? There are social as well as economic consequences. There are huge problems in the global steel industry currently, but is this not the very moment for protecting our foundation steel industry and keeping it for the future?

[Stephen Crabb]

I do not disagree with the hon. Gentleman’s point. That is exactly why my right hon. Friend the Business Secretary is talking to European Commissioners right now and exactly why we have set up a programme of working groups to look at all aspects of how the UK steel industry functions to identify future growth opportunities and help the UK industry to take advantage of them. Where we can, we want to protect, as the hon. Gentleman describes it, the foundation of a strong UK steel sector.

We cannot influence the price of steel and we cannot fix foreign exchange rates. The rules governing state aid to the steel sector are very strict. The UK steel industry signed up to those state-aid rules for a very good reason: the rules help secure a level playing field for UK steel within Europe. Within those strictures, we have done—and we are doing—all we can to help the steel industry at this very difficult time.

[Mr Peter Bone (Wellingborough) (Con)]

I am grateful for the way in which the Secretary of State is conducting his speech and not making party political points. That is good news.

On this specific point, the Government believe they can introduce compensation; the Prime Minister said that from the Dispatch Box today. If we believe that is within state-aid rules, let us just get on and do it—even if the European Union says no. We can worry about that consequence afterwards.

[Stephen Crabb]

We are pushing for a quick decision on the state-aid decision. Labour Members have referred to the German example. I have looked at it: Germany had a pre-existing scheme set up. When the new state-aid rules kicked in, that prevented other European countries from implementing a scheme on their own prior to seeking state-aid rules. That is why we have gone to get state-aid approval prior to bringing forward the compensation package.

[Stephen Doughty]

rose—

[Stephen Crabb]

The hon. Gentleman represents a steel constituency, so I give way to him.

[Stephen Doughty]

The Secretary of State is well aware of these issues, as I raised the issue of state-aid clearance with him and Celsa on 11 November last year. Will he confirm whether the state-aid clearance for the steel industry, which the Government say has been a top priority, has actually been at the top of the UK Government’s state-aid clearance priorities at any point in the last 12 to 24 months—and is it now? It is all very well talking about what the Secretary of State is doing today, but has that been at the top of the priority list for the last 12 months?

[Stephen Crabb]

We have absolutely been pushing for state-aid clearance on this. It is really important. As my right hon. Friend the Prime Minister made clear today, as soon as that state-aid clearance is given, we will start paying the compensation to steel companies. It is worth pointing out that we have already paid out £50 million to a number of steel companies to compensate them for additional energy costs arising from environmental and climate change policies, a lot of which were imposed by a previous Labour Government.

[Several hon. Members rose—]

[Stephen Crabb]

We are taking action to tackle unfair trading practices. We have already supported and voted for the renewal of anti-dumping measures at an EU level and lobbied for an investigation into cheap imports of reinforcing steel bar. We lobbied the EU because the steel industry raised its concerns with us; when the industry provides us with evidence, we act on its behalf. We will continue to do that by pressing the European Commission for firmer, faster action against unfair trade practices, and that is exactly what my right hon. Friend the Secretary of State for Business, Innovation and Skills is doing at this moment in Brussels.

[David Mowat]

A few moments ago, my right hon. Friend referred to the pre-arrangements in Germany, by which its steel industry pays 4p for a unit of electricity and its consumers pay between 10p and 15p a unit. That was pre-arranged, but it cannot be right that the state-aid rules do not apply to those circumstances, while everything we try to do falls foul of those rules. That simply cannot be right; it may well be an EU rule, but it is not adequate.

[Stephen Crabb]

I agree with my hon. Friend about the price differential. We recognise that very significant differential, and we are determined to take action, but I do not agree that we fall foul of state-aid rules all the time. We are committed to doing what we can within the rules, to which not just the British Government but the UK steel industry have signed up.

[Sammy Wilson (East Antrim) (DUP)]

If we go down the road of looking for EU approval for changes to state-aid rules, does the right hon. Gentleman accept that the situation will not be resolved quickly? When it came to corporation tax in Northern Ireland, it took four years, and when it comes to the aggregates levy, we are still fighting on the issue after eight years. Does he accept that by the time the EU gets round to making a decision, the steel industry is likely to be well gone?

[Stephen Crabb]

I do not accept that the European or the British steel industry will be “well gone”, to use the hon. Gentleman’s phrase, but I think he is right when he talks about the length of time it takes to get state-aid clearance on these issues. This is one aspect of the overall issue that we are pushing for. My right hon. Friend the Minister for Small Business, Industry and Enterprise has had some discussions about this herself. This is a matter on which we are determined to take action—and not with respect only to the issue of state-aid approval that we are seeking at the moment, because we are concerned about the overall process for speeding up state-aid applications generally.

My right hon. Friend the Prime Minister discussed this issue with President Xi of China during the important state visit last week. President Xi recognised the UK’s concerns and will be taking action to address Chinese overcapacity. The working group on international comparisons in the steel industry, chaired by the Minister for Small Business, Industry and Enterprise, met last week and is looking at how we can speed up cases within the EU by working with other member states facing similar issues and working with the industry to speed up its provision of evidence on dumping, which would mean that we could then take action.

[Andrew Gwynne]

rose—

[Stephen Crabb]

Secondly, we are addressing the impact on intensive energy users such as the steel industry of policies to reduce the negative impacts of climate change.

As I said a moment ago, we have already given more than £50 million of support to the steel industry. We were the first EU country to pay compensation for indirect costs of the EU emissions trading system to energy intensives in 2013, we started to pay compensation for the costs of the carbon price support mechanism as soon as the European Commission gave state clearance in 2014, and we exempted the metallurgical industry from the climate change levy in the same year. As my right hon. Friend the Prime Minister has announced, we will provide further compensation for climate change policies, with payments starting as soon as state aid is approved and continuing throughout the current Parliament.

[Andrew Gwynne]

Will the Secretary of State give way?

[Stephen Crabb]

The hon. Gentleman has been very persistent, so I will.

[Andrew Gwynne]

We must remember that behind all this are communities, and individuals living in those communities, who are facing a very uncertain future. Will the Secretary of State take this opportunity to dissociate himself and the Government from the views of his noble Friend Lord Heseltine, who has said that now is as good a time as any to lose a job? Is it not time that he found himself a different job too?

[Stephen Crabb]

I have no idea what comments the hon. Gentleman is referring to, but I do know that the noble Lord whom he mentioned has a track record of regeneration, winning support for UK industries, selling UK plc around the world and driving up growth in some of the most deprived parts of the UK to which not a single Labour Member could aspire.

All energy-intensive industries will benefit from the compensation at the earliest opportunity, and we are working with the Commission to gain approval quickly for proposals to provide additional relief for the impact of indirect low-carbon energy policy costs. The Business Secretary spoke to the Commissioner last week, and, as I said, he is in Brussels again today to make the need for urgency clear to our colleagues there. Once they are in place, these measures will save energy-intensive industries such as the steel industry hundreds of millions of pounds over the next five years.

Thirdly, we are determined to drive up the number of public contracts won by UK steel manufacturers and their partners through fair and open competition. In the last Parliament, we successfully renegotiated EU procurement rules to allow wider social and economic considerations to be taken into account, and we were the first country to put those new rules into action in February 2015.

We have identified more than 500 infrastructure projects and programmes, valued at over £400 billion and listed in National Infrastructure Pipeline, to help the industry to plan for and win contracts. Those contracts include Crossrail, which we are building with more than 50,000 tonnes of British steel, and HMS Queen Elizabeth, for which Tata provided 40,000 tonnes. We are currently embarking on the biggest programme of investment in our railways since Victorian times. Network Rail’s £38 billion, five-year investment and replacement programme includes demand for British steel worth billions of pounds, and Network Rail sources 95% of its steel from the UK.

[Mr Kevan Jones]

Will the Secretary of State give way?

[Stephen Crabb]

I will give way one last time, because I know that the hon. Gentleman likes talking about these issues.

[Mr Jones]

I thank the Secretary of State for finally giving way. The Department for Business, Innovation and Skills is sponsoring a £200 million contract for a new polar research vessel. I know that his Department is not involved, but can he guarantee that the ship, which is to be built in Birkenhead, will be produced with British steel?

[Stephen Crabb]

As I think the hon. Gentleman knows, I have had no sight of the details of that issue, but I shall try to find an answer for him by the end of the debate.

The steel procurement working group chaired by my right hon. Friend the Minister for the Cabinet Office met representatives of UK Steel last week to work out what steps need to be taken to ensure that Government projects use as much British steel as possible, and that includes considering the feasibility of more central procurement.

On 16 October, we hosted a summit with the key players from the UK steel industry to discuss where more progress could be made. The summit, which brought together industry leaders, trade unions, Members of Parliament and senior figures from the Government, created a framework for action that will help us to support steelworkers now and in the future. Progress needs to be made quickly, but we also need to find the right solutions rather than just rushing into action.

[Several hon. Members rose—]

--- Later in debate ---

[Stephen Crabb]

We have working groups from the summit who will now supply evidence and recommendations to the Department for Business, Innovation and Skills. The subjects will include driving up the number of public procurement contracts won by UK steel manufacturers, the lessons that can be learnt from other countries in the EU and beyond—

[Several hon. Members rose—]

[Nic Dakin]

Minister!

[Stephen Crabb]

—and what more the Government can do to boost productivity and help steel manufacturers to cut production costs.

[Nic Dakin]

Minister!

[Stephen Crabb]

The UK’s steel industry is part of the foundation of many of the nation’s great, world-beating supply chains—

[Nic Dakin]

Minister!

[Madam Deputy Speaker (Natascha Engel)]

Order. The Secretary of State has indicated that he is not giving way. Shouting “Minister!” from a sedentary position is not going to help anyone.

Let me also say that Members who are included in a very long list of speakers and who make constant interventions will not be called. We shall not be able to fit everyone in as it is, but if the interventions are kept to a minimum, we may have a chance of getting a little way down the list.

[Stephen Crabb]

This is a very important debate, and loads of Members want to speak in it. I think that I have been quite generous with interventions, and I shall now bring my remarks to a close.

As I was saying, the UK’s steel industry is part of the foundation of many of the nation’s great, world-beating supply chains: automotive, aerospace, construction and energy, to name just four. The Government therefore remain committed to a healthy and growing steel industry in the UK. That is essential if we are to increase productivity and thereby raise standards of living for everyone in the country. However, during what is an extremely difficult time for the UK steel industry, we must do as much as we can to support the families of those affected by these changes, as well as supporting the UK steel industry, here and abroad, so that it can compete on a level playing field.

[Madam Deputy Speaker]

Before I call the hon. Member for Livingston (Hannah Bardell)—on whose speech a time limit will not be imposed—I must inform Members that there will be a time limit of four minutes for Back-Bench speeches. I hope that that will enable us to get everyone in.

Draft Wales Bill

Stephen Crabb Excerpts

Tuesday 20th October 2015 Written Statements

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

I am pleased today to publish the draft Wales Bill for pre-legislative scrutiny.

The draft Bill sets out the Government’s plans for a stronger, clearer and fairer devolution settlement for Wales that will stand the test of time. It implements the commitments made in the St David’s Day agreement and set out in the Command Paper Powers for a Purpose: Towards a lasting devolution settlement for Wales (CM 9020), published in February.

The key measures include a new reserved powers model for Welsh devolution, similar to the one which currently operates in Scotland, providing a clear and complete boundary between devolved and reserved subjects. The draft Bill devolves important new powers for Wales in areas such as energy, transport and local government and Assembly elections. It also provides greater powers to the Assembly over its own affairs, including the ability to change its name.

The new devolution settlement provided for in the draft Bill will create a stronger Wales within a strong United Kingdom. It will work better for the people of Wales and allow more time for the Welsh Government to focus on delivering growth, jobs and better public services.

I am grateful to the Welsh Affairs Committee for agreeing to undertake pre-legislative scrutiny of the draft Bill and I look forward to receiving their report. The Government will continue discussions with the Welsh Government on the detail of the reserved powers model alongside pre-legislative scrutiny. It is vital that we deliver a robust new devolution settlement that works for the people of Wales.

[HCWS254]

Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 16th September 2015 Commons Chamber

[Ann Clwyd (Cynon Valley) (Lab)]

1. What assessment he has made of the effect of the summer Budget 2015 on people in Wales.

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

With your permission, Mr Speaker, I congratulate the new shadow Wales team and welcome them to their places. I particularly congratulate the hon. Member for Llanelli (Nia Griffith), and wish her well in her new role.

The summer Budget was a one nation Budget to benefit the whole of the United Kingdom. It was a Budget to help to create a higher-wage, lower-tax, lower-welfare economy, and a Budget to reward hard work while protecting the most vulnerable in our society.

[Ann Clwyd]

I congratulate my hon. Friend the Member for Llanelli (Nia Griffith) on her very well-deserved promotion. The Budget actually cut millions from over 200,000 working families in Wales. How can the Secretary of State justify pushing even more Welsh children into poverty?

[Stephen Crabb]

I just do not accept the right hon. Lady’s charge. We discussed this issue at length in this place yesterday, and the measures passed with a comfortable majority. The truth is that the vast majority of people in Wales will benefit financially from all the measures we are putting in place through the Budget. I never thought I would see the day when Labour Members stood up to talk down the efforts we are making to increase pay for working people across Wales.

[Mr Philip Hollobone (Kettering) (Con)]

What happened to the level of unemployment in Wales over the lifetime of the last Parliament, and what impact does the Secretary of State think the Budget will have on employment over the lifetime of this Parliament?

[Stephen Crabb]

My hon. Friend asks a really good question. What we have seen over the past five years, despite the scaremongering and Labour’s talking down of the Welsh economy, is unemployment continuing to fall. Today’s figures demonstrate once again that record numbers of people in Wales are going back to work—there is no reason to think that that will not continue—and we will achieve our long-term ambition of full employment.

[Nia Griffith (Llanelli) (Lab)]

The Prime Minister repeatedly promised before the election not to cut child tax credits, so will the Secretary of State explain to the 250,000 families in Wales who are losing an average of £1,000 a year, 90% of which will not be recouped by the rise in the minimum wage, just why his Conservative Government are breaking that promise? By reducing work incentives and hitting low-income families, any pretence they ever had to represent working people has been exposed as the sham it always was.

[Stephen Crabb]

I am really surprised by the tone that the shadow Secretary of State adopts for her first question. As I said, we discussed this issue at length yesterday. We have just come through an election in which the people of this country gave a very strong mandate and endorsement to one party to carry on fixing the economy and reducing the deficit. We cannot get on top of that or achieve it without tackling our spiralling welfare costs. I thought during the election campaign that Labour Members seemed to be getting close to understanding that, but I now see that they have abandoned all hope.

[Nia Griffith]

We have a broken promise on child tax credits. The majority of the 250,000 families affected are in work, and the Government are deliberately choosing to push them into poverty. It is not only they who will lose out. These cuts will suck £200 million out of the Welsh economy, which is money that families, out of sheer necessity, spend directly in their local high streets. What assessment has the Secretary of State made of the knock-on effects of that lost income on jobs in our communities across Wales?

[Stephen Crabb]

Ahead of the summer Budget, we of course analysed how the measures taken together would affect people up and down the country. As I have said, eight out of 10 families will be better off as a result of the measures we are taking. The hon. Lady knows as well as I do that low pay has been a curse on the Welsh economy for far too long. I repeat the point that I never thought I would see the day when Labour Members stood up to talk down the efforts that we are making to drive up wage levels for people all across our country.

[David T. C. Davies (Monmouth) (Con)]

2. What discussions he has had with Ministers in the Welsh Government on ensuring that the new Welsh curriculum is accepted across the UK. [R]

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

5. What assessment he has made of the effect of benefit sanctions in areas of Wales which have high numbers of economically inactive people and low numbers of available jobs relative to the rest of the country.

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

I congratulate the hon. Gentleman on his new role as leader of his party. Benefit sanctions are a necessary part of a welfare system that encourages people to take up support, while being sustainable and fair. Our welfare reforms have helped thousands of people from across Wales move from inactivity into work.

[Hywel Williams]

I thank the Secretary of State for his kind words. Some areas of Wales have high unemployment and low economic activity, and getting a job or extra hours is not easy, or even impossible. What has he done personally, as our Secretary of State, to ensure that our people are not subject to arbitrary and unfair benefit sanctions?

[Stephen Crabb]

I repeat that we need benefit sanctions if we are to reform the welfare system in a way that will encourage hard work and responsible decisions, but they are used as a matter of last resort. I take the hon. Gentleman’s point about rurality as I am from a rural area myself, but I remind him that unemployment has fallen significantly in his constituency over the past five years, and we thoroughly expect that to continue.

[Hywel Williams]

Following yesterday’s decision, Welsh families will lose between £1,000 and £2,500 in tax credits every year. Is the Secretary of State confident that his constituents, and mine, are aware of that change, so that they can plan cuts to food, fuel, clothing, footwear and—dare I say it?—even travelling to work?

[Stephen Crabb]

The hon. Gentleman paints a very negative picture. His constituency, like a great many in Wales, has suffered too long from the curse of low pay, so I thought he would welcome the fact that one of the things we are doing to transform the Welsh economy is introduce a national living wage, which will benefit thousands of families in his constituency and mine

[Christina Rees (Neath) (Lab)]

Would the Secretary of State allow made-up quotes to be included in leaflets from the Wales Office? If not, does he think it is acceptable that the Department for Work and Pensions did just that when it made up quotes about benefits sanctions?

[Stephen Crabb]

The information the hon. Lady refers to was used for illustrative purposes only. I think it is actually helpful to provide information based around real-life case studies so that people can understand how changes we make affect families in different circumstances.

[Carolyn Harris (Swansea East) (Lab)]

6. What discussions he has had with the Secretary of State for Transport on the completion date for electrification of the Great Western line.

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

I have regular discussions with my right hon. Friend the Secretary of State for Transport. He and I share a total commitment to the electrification of the Great Western line all the way through to Swansea. Both he and the Prime Minister have been clear about the priority we all place on this strategic project.

[Carolyn Harris]

Earlier this week, the Secretary of State told the Welsh Affairs Committee about Sir Peter Hendy’s stakeholder consultation. Are all the stakeholders committed to the project and, more importantly, did he share the UK Government’s commitment to the project with Sir Peter?

[Stephen Crabb]

What matters above all else is our commitment, from the Prime Minister downwards, to completing the project. Opposition Members have expressed a lot of concern about the progress of the project. If they do not believe it is happening, I would encourage the hon. Lady and her colleagues to walk the length of the route, because they will see work happening right now to deliver this really important project.

[Geraint Davies (Swansea West) (Lab/Co-op)]

14. Will the Secretary of State give a cast-iron guarantee, here and now, that in his review Sir Peter Hendy, the newly appointed chief executive of Network Rail, will not look again at stopping the electrification of the line to Cardiff and having dual fuel from Cardiff to Swansea?

[Stephen Crabb]

I am not sure the hon. Gentleman quite knows about these issues. We are totally committed—I cannot be clearer than that—to electrifying the Great Western line all the way through to Swansea, as part of a programme of infrastructure investment bigger than anything this country has seen since the days of Isambard Kingdom Brunel.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Over the summer, it was reported that electrification of the Great Western line was costing four times more per mile than the UK’s last major infrastructure project, the east coast main line, which was completed in 1991. [Interruption.] One reason for the escalating costs are the compensation payments to train operators, which did not arise in the case of the east coast main line because the service was in public ownership. With the cost to the public purse now reportedly £1 billion more than projected, does the Secretary of State believe that the schedule 4 payments are justified, and does he agree that the profit-for-dividend model must be taken out of rail services? [Interruption.]

[Mr Speaker]

Order. We must have a bit of quiet. I could hardly hear the hon. Gentleman’s mellifluous tones. Let us hear the Secretary of State.

[Stephen Crabb]

In fairness, I did not hear all of the hon. Gentleman’s question, so I will write to him about the specific issues. He is right that electrification is a really expensive way of investing in our railways, but it is the right thing to do. We have asked Sir Peter Hendy to look at all the different projects that Network Rail is juggling and report back to us this autumn with an update, but nobody in this place or outside should be in any doubt about our commitment to delivering electrification all the way through to Swansea.

[Paul Flynn (Newport West) (Lab)]

7. What recent discussions he has had with his ministerial colleagues on the provision of civil service jobs in Wales.

--- Later in debate ---

[Antoinette Sandbach (Eddisbury) (Con)]

8. What assessment he has made of recent trends in the level of economic inactivity in Wales.

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

Our economic plan continues to bear fruit for Wales. This summer, we have seen more people in Wales going out to work each day than ever before, as economic inactivity falls.

[Antoinette Sandbach]

In 2011, the Labour Welsh Government announced that 5,000 jobs will be created in the Deeside enterprise zone. Four years later, fewer than 1,000 have been delivered. What is the Secretary of State doing to ensure that north Wales will benefit from the Mersey Dee Alliance?

[Stephen Crabb]

These are primarily Assembly issues, and I will look into them on behalf of my hon. Friend. What I can say is that business in north Wales, as throughout the whole of Wales right now, is filled with concern and dismay about the posture of a Labour party that is increasingly anti-business, anti-British and anti-worker.

[Stephen Kinnock (Aberavon) (Lab)]

The Port Talbot steelworks in my constituency accounts for over 4,000 jobs, but it is facing crippling energy bills. Does the Secretary of State agree that urgent action is now required to help the steel industry to reduce its energy costs?

[Stephen Crabb]

The hon. Gentleman may be aware that I was in his constituency just a fortnight ago with my right hon. Friend the Minister for Small Business, Industry and Enterprise to meet Tata Steel—and we also met Celsa Steel that day—to talk about precisely the issues he raises. It is a concern. People in the steel industry are a concern for us, and we are working with the industry to provide compensation for the higher bills it faces as a result of our renewable obligations.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Does the Secretary of State not agree that the economy of Wales would be boosted by the exciting proposed spaceport at Llanbedr? What discussions has he had with his Cabinet colleagues about bringing the spaceport to Llanbedr?

[Stephen Crabb]

The hon. Lady knows, because we discussed this on Monday, that I share her excitement and enthusiasm about the prospect of a spaceport coming to Llanbedr in her constituency. The Government are looking at various sites and various options, but I am in discussions with my colleagues at the Department for Transport about how we can secure that facility potentially for Wales.

[Mr David Jones (Clwyd West) (Con)]

9. What assessment he has made of the potential effect on north Wales of the northern powerhouse.

Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 17th June 2015 Commons Chamber

[Tom Pursglove (Corby) (Con)]

1. What discussions he has had in Wales on the implications for Wales of a referendum on the UK’s membership of the EU.

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

As this is the first Wales Office business since the election, I would like to take this opportunity to welcome new and returning Members, especially new Welsh Members. I look forward to working with them all over the next five years in the best interests of Wales.

On the EU referendum, I have been listening to what people and businesses across Wales have to say, and what they want is a less intrusive, less costly and less burdensome membership of the EU. We intend to secure that and deliver an in/out referendum by the end of 2017.

[Tom Pursglove]

Does my right hon. Friend agree that the spectacular U-turn by the Labour party demonstrates just how out of touch it is with business and local opinion in Wales?

[Mr Speaker]

The Secretary of State will focus his reply on the Government’s position. A brief sentence will suffice.

[Stephen Crabb]

I completely agree with my hon. Friend. The Labour party fought its entire election campaign by scaremongering about the EU referendum, showing that it was wrong on that issue, as on so many others—wrong in Gower, wrong in Cardiff North and wrong in the Vale of Clwyd.

[Ann Clwyd (Cynon Valley) (Lab)]

I am sure that the Secretary of State will agree that it is important to have an objective assessment of the implications for the people of Wales of pulling out of the EU. Will he therefore commission an objective report on the issues and publish the results?

[Stephen Crabb]

The right hon. Lady makes an extremely useful and important point. We want the people of the UK to make an evidence-led decision. It is not for the Wales Office to commission such a report, but I suspect that many other independent organisations will be looking at such evidence, and we look forward to seeing the results.

[Mr David Jones (Clwyd West) (Con)]

The provisions of the European Union Referendum Bill that relate to the dilution of purdah would apply no less to the Welsh Assembly Government than to Her Majesty’s Government. Will the Secretary of State please undertake to mention that to his right hon. Friend the Minister for Europe so that the people of Wales can expect a fair referendum?

[Stephen Crabb]

I have had several discussions with my right hon. Friend the Minister for Europe on issues relating to the EU referendum in Wales, and the important decision that has been taken is to avoid the referendum clashing with the Assembly elections.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I welcome the Secretary of State and his team back to the House, and I offer the apologies of my hon. Friend the Member for Pontypridd (Owen Smith), who has been detained on urgent personal business.

Given that more than 150,000 jobs in Wales depend on our membership of the EU, can the Secretary of State say whether any members of his ministerial team belong to or support the Conservatives for Britain group? What does he have to say to sceptical Government Members about the benefits of EU membership for Wales?

[Stephen Crabb]

I am absolutely clear: I want to approach the EU referendum campaigning for Britain to stay in a reformed EU. We have huge support from people and businesses across Wales for the Prime Minister’s strategy of seeking a less costly and less intrusive membership of the EU, and one of the most useful things we can do in this House is give him our full-throated support in those renegotiations.

[Byron Davies (Gower) (Con)]

2. What assessment he has made of the effects in Wales of the Government’s long-term economic plan.

--- Later in debate ---

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

11. What recent discussions he has had with the Chancellor of the Exchequer on the level of funding received by the Welsh Government.

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

I have regular discussions with the Chancellor of the Exchequer, Treasury Ministers, the First Minister and the Welsh Finance Minister on the level of funding received by the Welsh Government.

[Susan Elan Jones]

The Secretary of State may be aware that my constituency had the terrible news yesterday that Dobson & Crowther in Llangollen had gone into administration. Will he assure me that he will work with the Welsh Government on that? Does he agree that the £50 million of in-year cuts to the Welsh Government’s budget that the Chancellor has brought in are a very bad thing and that we cannot have the same thing again, because we need to be working together for the people of Wales?

[Stephen Crabb]

We are aware of the situation in the hon. Lady’s constituency. We stay in close touch with Jobcentre Plus and the Welsh Government to find ways to support those who face uncertainty over their jobs. We have just been through an election campaign in which responsibility over finances was at the heart of the debate. The fact that she is standing here today, saying that the Welsh Government should somehow be immune from shouldering any of the responsibility for getting on top of our national finances, shows that she has learned nothing from the past five years.

[Carolyn Harris]

Wales did not benefit from Barnett consequentials from the Olympics. Will the Secretary of State tell the House whether south Wales will benefit from HS2? If it will not, will there be a Barnett consequential?

[Stephen Crabb]

I welcome the hon. Lady to the House. HS2 is a strategic project that will benefit the whole United Kingdom. It will benefit Wales, not least through the new hub station at Crewe, which will increase the potential for electrification in north Wales. On that basis, there is no argument for a Barnett consequential.

[Gerald Jones]

Does the Government’s failure to eliminate the deficit in the last Parliament not mean that Wales faces further significant cuts, which will be deeper than those we have had so far? Why should the people of Merthyr Tydfil and Rhymney pay for the Chancellor’s broken promises?

[Stephen Crabb]

The hon. Gentleman risks repeating the mistakes that his colleagues made throughout the five years of the last Parliament, when they set their face against responsibility and failed to support any of the measures that we took to get on top of the national deficit. Something that they might want to learn as they review their election defeat is that people up and down the United Kingdom support financial responsibility.

[Glyn Davies (Montgomeryshire) (Con)]

12. Does the Secretary of State agree that the Welsh Government should be held more financially accountable to the Welsh taxpayer for the money they spend? Will he consider including in the anticipated Wales Bill the devolution of income tax without the unnecessary block of a referendum?

[Stephen Crabb]

I absolutely agree with my hon. Friend about the need for the Welsh Government to assume greater responsibility for raising money, as well as just spending it. I hear his argument about the referendum, and other people are making similar arguments. However, if the Welsh Government are not up for the challenge of greater financial responsibility, any discussion about whether there should be a referendum is academic.

[Seema Kennedy (South Ribble) (Con)]

If money is so tight, how have the Welsh Government found millions of pounds to spend on refurbishing their offices and expanding the ministerial car fleet?

[Stephen Crabb]

I thank my hon. Friend for that question. There are many mysteries about the way in which the Welsh Government operate their finances—we could point to others. The important thing to remember is that at the general election the people of this country gave a strong mandate to this Government to get on top of our deficit and fix our national finances. It is beholden on every Department, where taxpayers’ money is spent, to play its part.

[Mr Mark Williams (Ceredigion) (LD)]

The historic underfunding of Wales is not in doubt. Has the Secretary of State given any further attention to commissioning an urgent report, by someone such as Gerald Holtham, into the precise figure of that underfunding, so that we can act accordingly?

[Stephen Crabb]

I thank the hon. Gentleman for that question. One of my first conversations after being reappointed as Secretary of State was to meet Gerry Holtham to talk about his analysis of Welsh funding. He agrees with me that we do not need to commission any independent new evidence. The work has been done and we need to crack on with introducing the fair funding floor. We are committed to doing that.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Both Labour and Conservative parties have cynically sought to redefine what constitutes fair funding for Wales, with both parties seeing it as a funding floor rather than putting us on an equal footing with Scotland. Will the Government join the people of Wales, 78% of whom believe that Wales should be funded to the same level per head as Scotland?

[Stephen Crabb]

Plaid Cymru had one single theme and policy during the general election campaign: funding and seeking parity with Scotland. [Interruption.] A voice behind her asks what about the north-east of England. The trouble with seeking parity with Scotland is that one would have to start dividing up the whole pie. The important thing is that we are delivering on a fair funding floor for Wales that will correct the way the Barnett formula operates for Wales, and she should be supporting that.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

4. How the views of English rail passengers will be taken into account after the transfer of responsibility for the Borderlands Line rail franchise to the Welsh Government.

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

7. What discussions he has had on returning control of health policy from the Welsh Government to Westminster.

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

None.

[Hywel Williams]

I am grateful for that reply. Will the Secretary of State ignore any siren calls there might be for the repatriation of health policy? Does he agree that this is not a matter of a war with Wales or of Offa’s Dyke being the border between life and death, and will he put the responsibility where it lies—with the Labour Governments who have reorganised health and tolerated the situation in north Wales for far too long?

[Stephen Crabb]

I agree with the hon. Gentleman’s point. The Welsh Government have full policy responsibility for health services and all the levers available to them. Full responsibility for the challenges and problems in Welsh health services lies with them.

[David T. C. Davies (Monmouth) (Con)]

Does my right hon. Friend agree that all those looking across the River Severn enviously at the shorter waiting times and better ambulance response times under the Conservative-run NHS in England have an opportunity for change next May, when they can vote for a Conservative Government in the Welsh Assembly?

[Stephen Crabb]

As ever, the Chairman of the Welsh Affairs Committee speaks truth and wisdom. It is not healthy for Wales or the Welsh Labour party for the latter always to assume it will be in power in Cardiff Bay. A non-Labour alternative to running the Assembly would do the Welsh health service the world of good.

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

Many constituents receive excellent cancer care from Velindre hospital. Is there not a danger when the NHS is used as a political football of diminishing the great work done in such hospitals by the fantastic professionals in the Welsh NHS?

[Stephen Crabb]

I do not know what the hon. Gentleman is referring to, but I know that the former leader of his party said he wanted to “weaponise” the NHS.

[Chris Davies (Brecon and Radnorshire) (Con)]

Does my right hon. Friend share my concern about the fact that the Welsh Government are ignoring calls for the provision of a cancer drugs fund in Wales, thus putting my constituents at a severe disadvantage in comparison with those on the other side of Offa’s Dyke?

[Stephen Crabb]

My hon. Friend makes a good point. On doorsteps throughout Wales during the election campaign, people expressed anger and frustration about their inability to gain access to the life-enhancing cancer drugs that are available to patients in England. A petition calling on the Welsh Government to introduce a cancer drugs fund has been signed by 100,000 people in Wales, and I cannot for the life of me understand why the Welsh Government are being so stubborn.

[Neil Carmichael (Stroud) (Con)]

8. What steps he is taking to promote engineering as a career in Wales.

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

10. What discussions he has had with the leaders of Newport, Cardiff and Bristol councils on the great western cities devolution proposal.

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

Last week I brought together council leaders from across the Cardiff capital region to hear their views on an emerging vision for an ambitious city deal for Cardiff that will create new economic opportunities for the wider area, including the great western cities region.

[Kerry McCarthy]

I thank the Secretary of State for his response, but obviously my concern is Bristol rather than Cardiff. How does he see a cross-border initiative such as this fitting in with the agenda for city regions, combined authorities and everything else that is going on?

[Stephen Crabb]

I am clear that my priority is Cardiff and not Bristol, but having a strong Cardiff capital region supported by an ambitious city deal will provide opportunities for both cities. That represents good news for Wales and for the hon. Lady’s constituency.

[Craig Williams (Cardiff North) (Con)]

I know that the Secretary of State shares my excitement about the Cardiff city deal. It has huge potential for Cardiff and it really will deliver for south Wales. Does he share my view that all parties should come together constructively to ensure that Cardiff does not miss out on this opportunity of a generation?

[Stephen Crabb]

I agree with my hon. Friend, and I pay tribute to him for the leadership that he has shown in driving forward a Cardiff city deal proposal. I am clear in my mind that a Cardiff city deal will work only with the Welsh Government, the UK Government, local partners and, crucially, the business community all working together.

The Prime Minister was asked—

Government's Legislative Programme (Wales)

Stephen Crabb Excerpts

Thursday 28th May 2015 Written Statements

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

The Government’s first session legislative programme announced in the Queen’s Speech on 27 May contains a wide range of measures that will apply to Wales, either in full or in part.

The following Bills and draft Bills will extend to Wales in whole or in part:

Wales Bill (Wales Office)

Scotland Bill (Scotland Office)

Northern Ireland (Stormont House Agreement) Bill (Northern Ireland Office)

Psychoactive Substances Bill (Home Office)

European Union Referendum Bill (Foreign and Commonwealth Office)

Charities (Protection and Social Investment Bill) (Cabinet Office)

Full Employment and Welfare Benefits Bill (Department for Work and Pensions)

Finance Bill (HM Treasury)

National Insurance Contributions Bill (HM Treasury)

Energy Bill (Department of Energy and Climate Change)

Immigration Bill (Home Office)

Enterprise Bill (Department for Business, Innovation and Skills)

Trade Unions Bill (Department for Business, Innovation and Skills)

Extremism Bill (Home Office)

Investigatory Powers Bill (Home Office)

Police Reform and Criminal Justice Bill (Home Office)

Armed Forces Bill (Ministry of Defence)

European Union (Finance) Bill (HM Treasury)

Bank of England Bill (HM Treasury)

Votes for Life Bill (Cabinet Office)

The following Bills will not extend to Wales:

Housing Bill (Department of Communities and Local Government)

Cities and Local Government Devolution Bill (Department for Communities and Local Government)

Childcare Bill (Department for Education)

Education and Adoption Bill (Department for Education)

Buses Bill (Department for Transport)

Discussions will continue with the Welsh Government on Bills that might include provisions that require the consent of the National Assembly for Wales or Welsh Ministers.

[HCWS3]