UK Shared Prosperity Fund

Albert Owen Excerpts

Thursday 5th September 2019 Commons Chamber

[Drew Hendry]

It is absolutely true that the money has had a massive impact on the infrastructure of the highlands and it must be replaced.

[Albert Owen (Ynys Môn) (Lab)]

This is an important debate and I know that the Minister has worked hard on the matter and been very good with Members. The hon. Gentleman talks about peripheral areas, and west Wales and the valleys have particularly benefited. However, small businesses tell me that they need to plan. They need some indication of what is happening. We have just talked about science and technology. Does the hon. Gentleman agree that research and development also require planning? Brexit has taken the Government’s eye off the ball, but we need some answers now.

[Drew Hendry]

I am grateful to the hon. Gentleman for those comments and I can confirm that I will underline those very points later in my speech.

--- Later in debate ---

[Hywel Williams]

The hon. Gentleman may be right, but I would like some confirmation of that, and certainly more information than “the immediate future” because we are looking beyond 2021. There are projects whose timescales demand that. In fact, there are projects in my community that require funding for many years into the future, including projects at Bangor University.

What is also extremely unclear, to me at least—perhaps the Minister can enlighten us—is the criteria for the allocation of money under the shared prosperity fund. I would argue for allocation on the basis of need. We will not accept the milking of funds that would otherwise have gone to Wales to fund projects elsewhere. That is certainly a fear. For example, Welsh farming might proportionately get considerably less money than one would expect if the criteria were based on, say, per head funding.

[Albert Owen]

I represent a neighbouring constituency, so I share many of these projects in north-west Wales with the hon. Gentleman. He talked about the agricultural community. Is it not important that any new allocation of funds is not made through the Barnett formula, as this would mean a huge reduction in moneys allocated? We are talking here about food production, much of which is exported to mainland Europe.

[Hywel Williams]

The hon. Gentleman makes a good point. I raised it with the then Minister over two years ago and was given a verbal assurance that that would not be the case. Were we to use the Barnett formula, funding to Welsh farming would probably be halved. At that time, the Minister gave us a verbal assurance, but I seek a similar reassurance from the Minister today.

Funding should go directly to our Government in Cardiff, rather than being allocated directly from London to individual local authorities and organisations. There is much merit in ensuring that local organisations and local government get the maximum funding. I have heard the argument that diverting money through Cardiff would increase bureaucracy and cost, but the fundamental argument is that the competent authority should be the Government in Wales. Any move in any other direction would undermine the devolution settlement and would be resisted by Members on these Benches and others.

To close, I should point out again to the Government that Wales is another country and that EU membership has had a different value and quality for us in Wales, as reflected in the funding we have been getting. That is particularly the case in my own area of Gwynedd, despite its poverty. One might suppose that that would put us in with areas that voted strongly to leave the EU, because of the marginalisation, poverty and distance from London and the seat of power. In fact Gwynedd voted 60:40 to remain, because of our values, the way we see the world, our culture, our bilinguality and our happiness at being part of the EU, which is much more congenial to us. Gwynedd is a different place—Wales is a different place—and should be treated with respect.