Leaving the EU: Infrastructure in Wales

Debate between Stephen Doughty and Guto Bebb

Tuesday 17th January 2017 Westminster Hall

[Guto Bebb]

As the announcement was made only today, it would be incorrect of me to respond immediately to the question of special status for west Wales ports. The hon. Gentleman is perfectly right that decisions relating to Interreg funding will remain with the British Government but, on EU structural funds in a Welsh context, I hope that I have offered the clarity that the hon. Member for Cardiff South and Penarth requested.

It is crucial to understand that the investment in the south Wales metro is part and parcel of the electrification of the Great Western main line, because unless that line is electrified the metro system will not work as we envisage. Across the divide in this debate, we should at least recognise that the investment being made in rail infrastructure in Wales, both north and south, is both to be welcomed and crucial.

[Stephen Doughty]

The point that my hon. Friend the Member for Ynys Môn (Albert Owen) made is absolutely crucial, and it raises a wider question about what the suggestion of engagement, with both the Welsh Government and the Welsh Assembly, means. It is not clear, is it, whether if we did not like parts of the deal—solutions, for example, regarding the common British-Irish travel area—we could dispute, veto or change them in some way? Or is it a like-it-or-lump-it strategy?

[Guto Bebb]

I sincerely hope it would not be a like-it-or-lump-it strategy, because that would not be proper engagement. Proper engagement means listening to the arguments being made by the devolved authorities and taking their views into account. It is clear that a decision will have to be made on a UK basis. I suspect that the hon. Gentleman is not arguing that we should have different settlements for different parts of the UK in relation to exiting the European Union.

We entered the European Union as a United Kingdom and I suspect we will leave as a United Kingdom, but it is imperative in that debate that we take on board the arguments being made by the devolved Administrations. It is important to highlight that we, as a Government, have set up Joint Ministerial Committees to ensure that those discussions happen on a Minister-to-Minister basis. I have been part of those discussions, as a representative of the Wales Office. So this is not a case of attempting a Westminster fix that ignores the views of the devolved Administrations; it is a genuine attempt to take on board the concerns of those Administrations, to ensure that we come up with an approach that reflects the complexities of the United Kingdom.

Exiting the EU: Businesses in Wales

Debate between Stephen Doughty and Guto Bebb

Wednesday 14th December 2016 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr McCabe, and to follow the excellent speeches by colleagues from Wales. I congratulate my hon. Friend the Member for Ogmore (Chris Elmore) on securing this debate. We have all been listening to and hearing the concerns of businesses in our constituencies, which is why we are here today. I hope the Minister will have some helpful responses to the concerns that we have raised.

I have been listening to businesses in my constituency of Cardiff South and Penarth. I have spoken to small, large and medium-sized businesses and to individuals who have raised concerns with me at surgeries, on the doorstep and on many other occasions. There is a lot of concern. The issue is not minor; it comes up again and again. There is a willingness to get on and make things work, but there are a lot of questions and a lot of uncertainty.

Having listened to all those concerns, I am not prepared to support a blank cheque for the Government in activating article 50, particularly when there is so little information available about the plan. Members may be interested to know that the Brexit Secretary has been speaking to the Brexit Committee while we have been sitting; he has confirmed that no plan will be published until February at the latest, because, apparently, a lot of research and policy work needs to be done. He says there will be a transitional deal only if necessary. That is concerning. When in February? How late? If we are talking about activating article 50 on 31 March, we will not get any clarity on the Government’s plans until very late in February.

[The Parliamentary Under-Secretary of State for Wales (Guto Bebb)]

I do not think there is anything new in what the Secretary of State has said. Did not the Opposition accept the argument that article 50 will be triggered by the end of March on production of a plan before that?

[Stephen Doughty]

If the Minister checks the voting list, he will see which way I voted on that matter. I am speaking about my own views on this issue and I certainly have a great deal of concern about the lack of information.

--- Later in debate ---

[Guto Bebb]

I will of course give way to my Parliamentary Private Secretary—no, had I better not. Certainly, the debate has been interesting, but hon. Members are well aware that Members have responsibilities in different parts of the House and are in different debates that are going on, and it is unworthy of the hon. Member for Caerphilly (Wayne David) to try to score that political point.

Going back to the success of the Welsh economy, we need to identify the fact that small businesses are a great part of that success story. Small businesses are growing. Indeed, we have seen the figures that show that small businesses’ growth in turnover in Wales has been among the best in the UK during the past year. The best performing part of the entire UK has been small businesses in Cardiff, which have enjoyed 12% growth in turnover, outpacing the situation in London. I pay tribute to all small businesses in Cardiff that have been part of that success story.

[Stephen Doughty]

I pay tribute to them, too, as I did in my speech. On the Minister’s earlier comments, to be fair, I did make it very clear that there had been work on the city deal and on the enterprise zone, and that kind of constructive work needs to continue through this period of uncertainty. Does he agree that the very real concerns being raised by a number of businesses in my constituency, despite that growth, are valid and need to be answered?

[Guto Bebb]

As a Minister in the Wales Office, I fully accept that small businesses have concerns—indeed, all businesses in all sectors of the economy in Wales have concerns—but they also see opportunities, and we have heard precious little on those opportunities in this debate. The Secretary of State for Wales and I have been out dealing with stakeholders regularly—those in the farming industry, the third sector, the university sector and the further education sector; businesses small and large; the Confederation of British Industry; the Institute of Directors; and the Federation of Small Businesses. We have been talking to all those stakeholders. We have been doing that because this change—the decision made by the people of Wales and the United Kingdom to leave the European Union—is huge, so it is imperative that we talk to individuals, businesses and stakeholders who will be affected.

A Government who were arrogant enough to think that they had all the answers are not a Government I would want to be a part of. The fantastic thing about my involvement in the Wales Office since March has been the opportunity to meet so many stakeholders in Wales and listen to what they want from the decision that was made to leave the European Union.

Wales Bill

Debate between Stephen Doughty and Guto Bebb

Monday 12th September 2016 Commons Chamber

[Stephen Doughty]

The Minister is talking about Cardiff airport, but what consultations did he undertake with the airport management and Cardiff airport passengers? I take issue with him on this: he said that Cardiff airport and Bristol were only 60 minutes apart. Having driven that distance many times, I am pretty sure that that is not the case, not least because of some of the challenges along the M4 at the moment.

[Guto Bebb]

I am sure there are challenges along the M4 at this point in time, but my understanding is that the distance between Cardiff and Bristol can be covered in an hour.

On the consultation, we looked widely at a number of options in relation to the impact of the proposed change. The clear point is that we have to take into account the impact of changes to APD on devolution. We need to consult regional airports in England that will be affected and Cardiff airport, the single international airport in Wales. However, the analysis, which we have concluded, shows quite clearly that the scale of the impact of such a change would be detrimental to Bristol to such an extent that it could have a detrimental effect on the availability of flights to south Wales consumers and businesses. In other words, it could have an unintended consequence that would be bad for the economy of south-east Wales, because we would damage Bristol before we saw any upsurge in Cardiff. On that basis, we have concluded that we are opposed at this point in time to the devolution of APD to Wales.

The Government have listened carefully to the debate about the devolution of APD and are fully appreciative of the importance of the aviation sector for creating jobs and growth in Wales. I understand the reason that hon. Members offer in proposing the change, but we cannot justify the distortion it would cause to the wider economy of Wales and to the economy of the south-west of England. That is why the Government reject the devolution of APD.

New clause 7 seeks to assign a share of the VAT revenues generated in Wales to the Welsh Government, in the same manner that a share of Scottish VAT revenues will be assigned to the Scottish Government from April 2019, following the cross-party Smith commission agreement and given effect through the Scotland Act 2016. It is important to understand the purpose of VAT assignment, which is to increase the link between the Scottish Government’s policy decisions and their budget, and thereby further to increase their accountability for the decisions they take.

Of course, that argument could be made in support of VAT assignment for Wales. The Welsh Government have a similar range of economic policy levers as the Scottish Government, and one of our key aims is to increase accountability—that is one of the key aims of the Bill. However, the independent cross-party Silk commission gave full consideration to assigning a share of VAT receipts generated in Wales. It recognised that the main argument in favour of assignment is that it would strengthen the link between the performance of the Welsh economy and the size of the Welsh Government’s budget. However, the Silk commission pointed out that it would also mean taking on additional revenue risks arising from factors over which the Welsh Government could have less control. The commission concluded that assignment of Welsh VAT revenues to the Welsh Government’s budget should not be pursued.

Wales Bill

Debate between Stephen Doughty and Guto Bebb

Tuesday 5th July 2016 Commons Chamber

[Guto Bebb]

It is currently envisaged that the group will report in the autumn, and, as things stand, that is its aim. I hope that that satisfies the hon. Gentleman, at least in terms of clarity.

It is important to understand what the group will and will not do. It will consider the administrative and operational implications of a shared but single legal jurisdiction, but it will not discuss broader constitutional questions such as whether there should be a separate jurisdiction. The Government’s view is clear: the single legal jurisdiction of England and Wales is the most effective, efficient and consistent way to deliver justice. I hope that provides the clarity for which Members have been asking.

Amendment 10 seeks to omit subsection (2) of the proposed new section 92B of the Government of Wales Act. Subsection (2) recognises that a body of Welsh law made by the Assembly and by Welsh Ministers forms part of the single legal jurisdiction of England and Wales, while giving due regard to the boundaries of competence set out in the Bill. It is important for the Assembly to have full and effective powers to enforce its legislation on devolved matters, and in order to achieve that, a growing body of distinct law will necessarily continue to be made by the Assembly and Welsh Ministers.

The Bill provides for that throughout. In particular, paragraphs 3 and 4 of new schedule 7B, which schedule 2 inserts into the Government of Wales Act and which the Committee will debate next week, make it clear that the Assembly may modify the private law for a devolved purpose, and that only certain core elements of the criminal law are outside its competence. Those elements are listed in paragraph 4 of the new schedule. The Assembly will, for example, be able to create and modify offences when they are for the purpose of enforcing devolved provisions.

Subsection (2) of new section 92B is intended to be helpful, explaining that the purpose of the provision is to recognise the ability of the Assembly and Welsh Ministers to make laws forming part of the unified legal system of England and Wales. The new section constitutes a declaratory statement, and does not bestow any further powers on the Assembly than are provided for elsewhere in the Bill. It is, however, important in that it enables the contribution made by the Assembly and Welsh Ministers to the law of England and Wales to be recognised for the first time, while having due regard to the other provisions in the Bill. Subsection (2) is required to clarify that the statement must be considered in the context of the rest of the Bill. Without it, there might be uncertainty about the meaning of subsection (1).

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

So that the public can understand the divergence that has, to a limited degree, taken place so far, will the Minister tell us what proportion of the current law he considers to be distinctly Welsh, as opposed to England and Wales law? May we, in future, be given a regular update on that distinction, so that ordinary people understand where the law is diverging?

[Guto Bebb]

That is a good question, because it highlights the importance of ensuring that people in Wales understand where law is made. The percentage of Welsh law is currently tiny by comparison with the overall impact of the law on those people, but I think we should keep an eye on the position.

Clause 1 sets the scene for the new model of Welsh devolution that is presented in the Bill. It inserts a new part 2A into the Government of Wales Act, ensuring that, for the first time, the permanence of the National Assembly for Wales and the Welsh Government is confirmed. It recognises both as a permanent element of the United Kingdom’s constitutional arrangements, and as part and parcel of our nation’s constitutional fabric, and reflects the importance of the National Assembly and the Welsh Government to political life in Wales.

The Silk commission recommended that it be recognised that the National Assembly for Wales is permanent for as long as that is the will of the majority of people in Wales. In the St David’s day agreement, the Government gave an undertaking to enshrine that commitment in legislation, which we are delivering in clause 1; we did the same for the Scottish Parliament and the Scottish Government in the Scotland Act 2016. I think it fair to say that most Members welcome that certainty.

New section 92A also provides that the Assembly and the Welsh Government are not to be abolished except on the basis of a decision by the people of Wales voting in a referendum. I hope that such a referendum will not be forthcoming, but I think it important to recognise that the decision on whether we have a Welsh Assembly and a Welsh Government is a decision for the people of Wales, to be made by them.

New section 92B underpins the commitment to permanence by recognising that there is a body of Welsh law made by the Assembly and Welsh Ministers that forms part of the law of England and Wales. It is important that we recognise that in statute—which we are doing for the first time—while also recognising the elements that are common to England and Wales. Clause 1 is a declaratory statement, but its recognition of the contribution made by the Assembly and Welsh Ministers to the law of England and Wales is important none the less. Meanwhile, the Justice in Wales working group of officials that I mentioned earlier will consider what changes are necessary to reflect the distinctiveness of Wales within the administrative arrangements for justice, and, as I have said, I expect a report in the autumn.

Amendment 23, tabled by the hon. Member for Dwyfor Meirionnydd, seeks to broaden the scope of the commitment given in relation to the convention about Parliament’s legislating on devolved matters by removing the word “normally”. The commitment in clause 2 that Parliament will not normally legislate with regard to devolved matters without the consent of the Assembly reflects the current convention on legislative consent. We gave a commitment to put that convention on a statutory footing in the St David’s day agreement, and that is what clause 2 does. The clause is also in line with the provision made in relation to the Scottish Parliament in the Scotland Act 2016. Since the convention was established, a legislative consent motion has always been sought before Parliament has passed legislation for Wales in relation to devolved matters. This is part of the normal working arrangements between the UK Government and the Welsh Government and we expect it to continue, but to remove “normally” from the clause would fundamentally change the convention. The “not normally” element of both the convention and clause is essential as it acknowledges parliamentary sovereignty and, within the clause, signals to the courts that this clause is not intended to be subject to adjudication.

Cardiff Coal Exchange

Debate between Stephen Doughty and Guto Bebb

Wednesday 20th April 2016 Westminster Hall

[Guto Bebb]

Concerns have been raised by my hon. Friend the Member for Cardiff North (Craig Williams) and by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on the inactivity, or otherwise, of the Welsh Government. It is not for me to comment on that, but I am sure that the hon. Member for Cardiff South and Penarth will be making his views known in due course.

Two specific issues have been raised to which I can respond. First, I cannot respond to the sales process adopted by City of Cardiff Council, but it is only right and proper that I address the involvement of the Crown Estate, about which the hon. Gentleman expressed concern. It is clear that the whole process was subject to the escheat process, which means that the building was never owned by the Crown Estate. As such, the Crown Estate was neither consulted nor involved in the process by which the property’s ownership is being transferred. That is not unique; it is a pattern that can be seen in many circumstances involving the Crown Estate. The actual decision-making process will be for City of Cardiff Council and the Welsh Government. Although the Crown Estate is technically involved, it is not odd that it was not consulted and did not provide any input in the process.

The hon. Gentleman mentioned the tax allowance scheme, and it is fair to say that the business premises renovation allowance is central to the redevelopment plan. He is right to highlight the fact that the scheme will be coming to an end at the end of this financial year at the end of March 2017. He is also correct that concerns have been raised about the way in which the scheme has been utilised in the past. Those concerns, which were raised, I think, back in 2011-12, have been addressed by Her Majesty’s Revenue and Customs, and it was stated in summer Budget 2015 that the scheme would be coming to an end. That is still the case. It is important to highlight the fact that the BPRA is a capital allowance scheme, and my understanding is that under such schemes any claim for the allowance would have to be made retrospectively, after the expenditure is made. It is also important to highlight the fact that any claim for a capital allowance under such a scheme would have to refer to expenditure incurred during the 2016-17 financial year. Any expenditure incurred after that point would obviously be outside the scope of the allowance scheme, which is a fairly important point.

[Stephen Doughty]

rose—

[Guto Bebb]

I apologise, but I am afraid that I have only one minute.

The hon. Gentleman’s concerns have been heard, if nothing else. By raising this issue in Westminster, he has ensured that the concerns of tenants, the local community and elected representatives have been heard. The concerns raised in relation to the tenants of the coal exchange are valid and should be addressed, and everyone would agree that the redevelopment of such an iconic business should be open and transparent and should have the support of the local community. However, on the issues relating to the involvement of the Westminster Government, I restate that the Crown Estate process has been par for the course. In the same way, the concerns raised about the tax allowance scheme are valid if this redevelopment does not happen before the end of March 2017 but, as it currently stands, the scheme is still in existence.

Question put and agreed to.