Leaving the EU: Wales

Debate between Stephen Kinnock and Wayne David

Tuesday 25th October 2016 Westminster Hall

[Stephen Kinnock]

That is a major concern. The British Government have been the ringleader of a set of countries trying to roll out the red carpet for China, to allow it to dump untold amounts of its unfairly subsidised steel on the EU and British markets. As we know, the Secretary of State for International Trade has said that he has no plans to support the steel industry with trade defence instruments. When combined with all the other uncertainty that Brexit has caused, that is a major concern for our industry.

Workways+ is a project that helps long-term unemployed people and people with complex needs to develop the skills and qualifications that will help them into paid positions. The Cynnydd Project works to help young people avoid the unemployment trap. BEACON is helping Swansea University to work with industry to pioneer renewable chemicals, fuels and other materials, bringing another key future industry to the area. Those are just three EU-funded projects already under way, and many others are in the pipeline. Each one makes the lives of our constituents better.

In reality, the situation in Port Talbot, Aberavon and across Wales calls for far more investment to accelerate our recovery from decades of under-investment in the face of the impact of globalisation and deindustrialisation. Yet all that funding and all that progress is at risk after the referendum vote to leave the European Union. While the leave campaign made promises that all EU funding would continue to flow to Wales at the same levels, I think we know that those promises are about as valid as what could be printed on the side of a bus.

[Wayne David (Caerphilly) (Lab)]

My hon. Friend will be aware that the Chancellor of the Exchequer has made that promise, but he has also said that he wants to guarantee funding for projects that meet UK priorities. Does that not imply that the Government intend to use this opportunity to insist that money is spent on their priorities, rather than those agreed with partners and the European Union?

[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.

Transforming Rehabilitation Programme

Debate between Stephen Kinnock and Wayne David

Wednesday 28th October 2015 Westminster Hall

[Stephen Kinnock (Aberavon) (Lab)]

I beg to move,

That this House has considered implementation of the transforming rehabilitation programme.

It is a pleasure to serve under your chairmanship, Mr Nuttall. It is now almost 12 months since the formal creation of the 21 community rehabilitation companies and the establishment of the new national probation services. It has since become clear that fundamental flaws in the former Secretary of State’s thinking are beginning to impact on service delivery. The CRCs were initially created to address new work arising from probation supervision being extended to clients leaving prison after serving less than 12 months in custody. The probation service supported extending statutory support to this group with adequate funding. Had a consultation taken place on how that could be best achieved, I have no doubt that genuine alternative methods could have emerged, but it was unfortunately evident from the outset that the Secretary of State’s predecessor was fixed upon the payment-by-results outsourcing model.

Prior to the reorganisation, probation trusts were highly successful, with a good record of reducing reoffending. They had won European-wide awards for public service and all the trusts had been recognised as either good or outstanding by recent inspections. Trusts had established good local partnerships with other agencies, including in the private sector, that had been producing excellent results. In a number of trusts—for example, West Mercia and the Willowdene project—these partnerships have extended into innovative work with the third sector, addressing and supporting the same group of clients whom the transforming rehabilitation reorganisation targeted. Indeed, a major review by the third sector review group indicates that the procurement process was incoherent and meant that third sector providers who were supposed to have opportunities to engage in TR were disfranchised.

[Wayne David (Caerphilly) (Lab)]

It is not only politicians who have opinions on this subject, but the voluntary organisations themselves. The National Council for Voluntary Organisations sent us a briefing for this debate, which made the point that, despite the warm words of the former Justice Secretary, there is very little voluntary sector involvement.

[Stephen Kinnock]

My hon. Friend makes an excellent point. The purpose of a consultation is to listen to the experts. In this case, the experts have described themselves as being used as “bid candy” to dress up the bids, rather than being involved in a truly engaged fashion. I agree entirely with my hon Friend’s point.

Significant challenges were immediately obvious. First, the marketplace was not interested in taking over the management of high-risk offenders for the limited profits associated with managing that target group. Further, the Ministry of Justice had been heavily criticised by both the Public Accounts Committee and the National Audit Office for its poor management of previous contracts in courts, community payback, electronic monitoring and the quality of some provision in private prisons and detention centres. There was therefore limited political support for privatising the whole lot, hence the “split” solution.

Several probation experts argued that splitting the probation service into two distinct groups was a far riskier solution than selling all the service to private providers. The split in the service creates challenges, some of which, with great patience, effort and commitment from all stakeholders, could be managed, but a world full of good will is not going to address the insurmountable structural flaws arising from the split. These include, but are not limited to: local service delivery and management of clients; bureaucracy and inefficiency, with additional processes generated to manage the allocation of cases and accountability; substandard internal communications, especially those founded upon outdated and unstable technology within the National Offender Management Service; and inefficient management of staff due to internal competition, which undermines morale and professional unity.

However, the greatest flaw was rushing the whole programme through to meet a strict political timetable without any adequate testing or piloting. The MOJ also failed to establish workable, sustainable contracts with the CRCs. These are already the subject of significant challenge from the new CRC owners. Equally, in its haste to successfully establish the CRCs, all efforts and energy were focused on the contracts share sale, and very limited evidence emerged of any serious planning or risk assessment of the future management of the newly nationalised National Probation Service.

With no piloting or credible assessment of what the new work meant or involved, the allocation of budgets and staff was largely guesswork. Initially, NOMS stated that 70% of work was expected to be transferred to the CRCs as only around 30% of total clients would be classified as high risk. This was not a scientific experiment, and it quickly became evident that it did not translate. The staffing split soon became 50/50, with ongoing confusion about where some work should sit. Current staffing levels and reliance on expensive agency staff are simply not sustainable, nor value for money for the taxpayer. A case needs to be made to the Treasury for emergency support for the NPS.