Leaving the EU: Wales

Debate between Stephen Kinnock and Carolyn Harris

Tuesday 25th October 2016 Westminster Hall

[Stephen Kinnock]

I thank my hon. Friend. One of the huge risks to Wales of Brexit is that we will see a power grab by the Westminster Government. We will start to see the Westminster Government using the opportunity to claw back funding. We know that the £350 million was a lie. The figure was far more like £190 million, but where will that money go? Will it just disappear into the black hole of the Treasury in Westminster, never to be seen again in Wales? That is a huge risk for Wales in light of Brexit.

Now that all the bluff and bluster of the referendum campaign is behind us, it is all about what the Prime Minister’s Government actually do. So far on that score, the signs have not been positive. Despite repeated requests from the First Minister for a commitment to full continued funding, so far the Government have pledged only to continue funding agreed EU-funded projects until 2020.

That is not as powerful a pledge as it may first seem, for a number of reasons. First, it is for only one additional year after we are scheduled to leave the European Union in March 2019. The Government have made zero assurances that funding will be retained after 2020. Secondly, the Chancellor made clear in his statement on 13 August that the pledge applied only to projects signed before this year’s autumn statement. Apparently, any projects signed after that will be assessed by a method that is yet to be revealed to us—a mystery method. Funding is therefore not guaranteed for multi-year projects signed after next month, even if they are in the current EU 2014 to 2020 funding round.

[Carolyn Harris (Swansea East) (Lab)]

I congratulate my hon. Friend on securing this debate. He is making an excellent case. Does he agree that uncertainty is the enemy of business? The Government have made no commitment on funding post-2020, and that could have devastating consequences for attracting investment to Wales.

[Stephen Kinnock]

I absolutely agree. We have seen in all the feedback since the Brexit vote that businesses are in a holding pattern. Many companies, both outside and within the UK and the EU, are waiting to see how things develop in the wake of Brexit. We have no idea what the Government’s top-level negotiating position will be in terms of hard or soft Brexit, and we have no idea what the plan is on the budgetary side in terms of replacing EU funding. That double whammy causes massive uncertainty for business. It relates back to the point on the multiplier effect. EU funding opens the door for other businesses coming in, and that uncertainty is the enemy of business, as my hon. Friend says.

Welsh Affairs

Debate between Stephen Kinnock and Carolyn Harris

Thursday 3rd March 2016 Commons Chamber

[Stephen Kinnock]

I agree absolutely. The Energy and Climate Change Committee has just produced a compelling report that clearly demonstrates that we are losing investment and jobs precisely because of the mixed messages and signals that this Government send to investors. Business abhors a vacuum. Business needs stability. It needs to know whether there will be a return on its investments, and at present it sees no evidence whatever of that in the United Kingdom.

Wales, and south-west Wales in particular, can also be at the forefront of an internet revolution. Swansea Bay city region has based its city deal proposal on the concept of an “internet coast” to drive the digital future of energy, health and economic acceleration. All eyes are on the Chancellor. If he really wants a “march of the makers”, he must give his full backing to that exciting vision. The Swansea University bay campus, which, I emphasise, is based in my Aberavon constituency, has a huge role to play in the development of the internet coast. I look at my hon. Friend the Member for Swansea East (Carolyn Harris) for verification of that.

[Carolyn Harris (Swansea East) (Lab)]

indicated assent.

[Stephen Kinnock]

This outstanding project, made possible by EU and European Investment Bank funding, is one of the largest and most important knowledge economy projects in Europe, producing cutting-edge research focusing on science and innovation.

The “internet coast” is a plan for the future. It is a pity the same cannot be said of the Government’s draft Wales Bill, which does not provide anything like the lasting settlement that it was intended to create. Instead, it has thrown up more uncertainties around the legislative process, and succeeds only in generating reams of constitutional red tape. Just this week the Welsh Affairs Committee, under the chairmanship of the hon. Member for Montgomeryshire (Glyn Davies), called on the Government to pause the proposed timetable for the Bill so that there is opportunity to reflect fully. That is the least that is needed. My specific concern is about ministerial consent and the risk that the process is seen as tantamount to an English veto, but my more general concern is that the Bill has been drafted in a bubble, isolated from the broader debate about the constitutional reform that our country so desperately needs.

The UK is more centralised than any other leading industrialised economy, and the Scottish referendum demonstrated that the constitutional foundations of the UK are cracking beneath our feet. The British people need and deserve better. The piecemeal, make-do and muddle-through approach that is epitomised by this Wales Bill is simply not going to get the job done. We must, therefore, have a full constitutional convention that would formulate a bold, radical, rational, root-and-branch reform of our constitution. The convention would develop a written constitution that is anchored in a confederal UK, an elected senate, a more proportional electoral system, and properly defined devolution of powers to the nations and regions of the United Kingdom.

We have also seen the results of government by muddle in Wales with the Trade Union Bill. Having taken a sledgehammer to crack a nut, the Government have found that the nut is not entirely theirs to crack in the first place. I am delighted that my Labour colleagues have stood eyeball to eyeball with the Government, and it was the Government who blinked first. The Trade Union Bill, coupled with the changes in voter registration and the alterations in constituency boundaries, are blatant and disgraceful attempts to turn the UK into a one-party state, the thinly veiled agenda being to eradicate parliamentary opposition altogether. Vladimir Putin would be proud of such fixing. Wales is disproportionately hit by the boundary changes, losing around a quarter of our MPs, reducing Wales’s voice in the House and marginalising the Welsh people.

There is great potential in Wales, but we will realise that potential only with bold leadership. There is vision and willingness in Cardiff Bay, but we find those qualities abysmally lacking on the Government Benches. As we go into elections in May, we should remember all that we have to be proud of in Wales: a Labour Government delivering for working people, creating 50,000 apprenticeships and getting 15,000 young people back to work with Jobs Growth Wales; ground-breaking legislation on violence against women; a Labour Government who have improved the cancer survival rate faster than anywhere in the UK, and who are training more nurses than ever before; a Labour Government who stood up to Westminster to protect farm workers’ wages; a Labour Government who stood by Remploy, while the Tories were shutting it down across the rest of the UK.

Let us remember that it is the work of the Welsh Labour Government under the leadership of First Minister Carwyn Jones that has enabled the creation of 750 jobs at Aston Martin in St Athan. Under Carwyn, Labour will make use of the Welsh Government’s new powers by cutting business rates for small businesses and supporting entrepreneurship, growth and jobs. That is the kind of leadership we need in Wales.