Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 2nd May 2018 Commons Chamber

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

2. If he will discuss with Network Rail its decision to reduce levels of investment in south Wales; and what recent discussions he has had with Cabinet colleagues on the cancellation of the electrification of the line between Cardiff and Swansea.

[The Secretary of State for Wales (Alun Cairns)]

Network Rail’s budget for investment in the Wales route is more than £1.3 billion—record investment in Wales’ railway infrastructure. Passengers in south Wales are also directly benefiting from our £5.7 billion of investment in the new intercity express trains operating from west Wales through Swansea to London.

[Geraint Davies]

The Secretary of State knows that Wales has 5% of the population and 6% of the railways yet less than 2% of the investment. Network Rail has just cut £1 billion from its projects, and £700 million has been cut from rail electrification. Will he now promise to support the Swansea bay electrified city metro scheme, alongside alignment, which would reduce the time between Cardiff and Swansea and result in faster, greener connectivity for Swansea bay?

[Alun Cairns]

The hon. Gentleman well knows that Wales does not operate in isolation. The hon. Member for Wrexham (Ian C. Lucas), for example, has been campaigning for the Halton curve, which is in England but of course would serve north Wales and link it better with Merseyside, demonstrating how the rail network in Wales does not operate in isolation. I have met Mark Barry, the proponent of the Swansea bay metro. He is undertaking a host of work on it, and we will happily look closely at it, but I point the hon. Gentleman to the need for a decent cost-benefit ratio.

[Michael Fabricant (Lichfield) (Con)]

On the subject of electrification of the line to Swansea, is my right hon. Friend aware that the South Wales chamber of commerce, in Swansea, is a darned sight more concerned about there being an old Labour Government in this country destroying industry than about shaving two minutes off a journey time?

[Alun Cairns]

My hon. Friend makes an important point. The political grandstanding by some Opposition Members does nothing other than undermine potential investment in Swansea. Nor will we take any lectures from a party that left Wales in the same league as Moldova and Albania in not having a single track of electrified railway line.

[Ben Lake (Ceredigion) (PC)]

There is considerable disagreement about the total amount saved by the cancellation of electrification to south Wales—the figures range from £430 million to £700 million—but, irrespective of the total amount saved, does the Secretary of State not agree that there is a compelling case for reinvesting any funds saved by the cancellation in the Welsh network?

[Alun Cairns]

The hon. Gentleman has made an important point. There are opportunities for new railway investment in Wales. The Department for Transport’s strategic outline business case includes a range of options, one of which is improving access to west Wales; that would be transformed by a Swansea parkway railway station, for which there is a growing demand. We are well aware of the Welsh Government’s interest in linking Aberystwyth and Carmarthen, and I think that those schemes would be complementary.

[Christina Rees (Neath) (Lab/Co-op)]

Before I ask my question, Mr Speaker, I hope you will allow me to mention Tecwyn Thomas, a stalwart of Welsh Labour for many years, who has sadly passed away. He was my agent, and the agent of many Labour candidates in Wales. My colleagues and I send our condolences to Tecwyn’s widow Iris, and to his family.

According to a report from the National Audit Office, the Transport Secretary knew that bimodal trains would not provide the equivalent of electrification and that no trains exist that could deliver the timetable. Does the Secretary of State agree that the Transport Secretary acted against the advice that he was given when he cancelled electrification to Swansea, and that that has resulted in poor execution of Network Rail’s electrification work in south Wales?

[Alun Cairns]

Let me also pay tribute to the late member of the Labour party whom the hon. Lady mentioned.

A report from the Public Accounts Committee, to which I refer the hon. Lady, said that the plan for electrification between south Wales and Paddington should be reassessed on a stage-by-stage basis, and that is exactly what we did. Electrification would provide no practical journey time saving between Cardiff and Swansea; passengers would sit on the same train. I think we need to get over that issue. I am seeking to attract investment to Swansea, and constantly criticising the cancellation of a plan that would deliver no practical benefits to passengers does nothing to help that.

[Christina Rees]

In the Transport Secretary’s statement of 20 July 2017, which cancelled the electrification of the line of Swansea, it was proposed that a new pipeline service be established for rail enhancement schemes. However, details of the process, and mechanisms for the development and delivery of the schemes, have not been forthcoming, and no Welsh scheme has yet entered the pipeline. Will the Secretary of State explain what the Transport Secretary is doing to prioritise the funds that Welsh projects so desperately need through that pipeline service?

[Alun Cairns]

As I have said, there are a number of options in the strategic outline business case, and it is important for us to use that to assess the merits of the study. The increase in the costs of electrification projects throughout the United Kingdom has naturally caused alarm—I mentioned the report of the Public Accounts Committee earlier—but I am excited by the proposals in the business case. I have already mentioned the potential, and the growing demand, for a Swansea parkway station, as well as a new station at St Mellons. There is a host of opportunities.

[Stephen Kerr (Stirling) (Con)]

3. What recent steps his Department has taken to improve co-operation between the UK, Welsh and Scottish Governments.

[The Secretary of State for Wales (Alun Cairns)]

I was always optimistic that discussions with the Welsh Government would result in agreement on the European Union (Withdrawal) Bill. The agreement that has been reached is testimony to the close intergovernmental working that has taken place and to the spirit of co-operation, and I am still hopeful that the Scottish Government will sign up to it as well.

[Stephen Kerr]

Does my right hon. Friend agree that the agreement—announced last week—between the Welsh Government and the UK Government in respect of clause 11 of the Bill shows what can be achieved when Governments work together constructively for the benefit of the whole United Kingdom and all its peoples?

[Alun Cairns]

My hon. Friend has made an extremely important point. I think the agreement demonstrates the maturity of the relationship between the UK Government and the devolved Administrations. The Welsh Government recognised the merits of providing certainty and security for businesses and communities. I am still hopeful that we can underline the benefits of the scheme to Scottish businesses and communities, and that we can attract the support of the Scottish Government.

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

The heavy hand of the Treasury is still delaying investment in north Wales. Will the Secretary of State commit to real devolution, as we in north Wales want the freedom to invest and attract investment ourselves, to improve our infrastructure?

[Alun Cairns]

I draw the hon. Gentleman’s attention to the north Wales growth deal that we are currently negotiating between the authorities and businesses in north Wales. I met Ken Skates, the Economy Minister, just last week to discuss it. We are anxious to see greater devolution, but some Assembly Members do not want that, because some areas of north Wales have traditionally felt as isolated from Cardiff Bay as from Westminster.

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

Will my right hon. Friend extend to the Welsh Government the thanks of many hon. Members of this House for accepting the UK Government’s sensible and pragmatic proposals for resolving the issue of the repatriation of powers, thereby reflecting the fact that Wales voted to leave the European Union in 2016?

[Alun Cairns]

I am grateful to my right hon. Friend for that question, because he rightly focuses on the practical benefits and the outcomes. I believe that so long as we are focusing on an environment in which business can continue to invest, employ and represent communities in the way we have negotiated with the Welsh Government, that will put us in the strongest position to get the best benefits for every part of the UK.

[Patrick Grady (Glasgow North) (SNP)]

I am sure that, in the interests of co-operation, the Government would not want to do anything that undermines the devolution settlement. Do they not recognise that the Conservatives are isolated in the Scottish Parliament, where there is a cross-party consensus that the EU withdrawal Bill is not fit for purpose? Will the Secretary of State therefore ensure that the House of Lords is not asked to consider the European Union (Withdrawal) Bill on Third Reading until all the devolved Assemblies have had a chance to pass a legislative consent motion?

[Alun Cairns]

As my right hon. Friend the Member for Clwyd West (Mr Jones) highlighted, so long as we focus on outcomes—and the Scottish Government focus on outcomes and delivering for Scottish businesses—I am confident we can reach an agreement. The Welsh Government clearly would not undermine the devolution settlement as far as Wales is concerned, and I hope the Scottish Government will see the merits of the certainty and security that we can offer Scottish industry and Scottish business with this agreement.

[Jo Stevens (Cardiff Central) (Lab)]

4. What assessment he has made of the effect of changes to policing budgets since 2015 on Welsh police forces.

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[Kevin Foster (Torbay) (Con)]

11. What steps the Government are taking to ensure that the industrial strategy benefits Wales.

[The Secretary of State for Wales (Alun Cairns)]

There are significant opportunities for Wales from the industrial strategy, particularly in relation to innovation, where there is a commitment to raise the total research and development spend to 2.4% of the economy. This is already benefiting Wales, with almost £6 million committed to 17 Welsh partner projects.

[Tom Pursglove]

I am grateful to the Secretary of State for that answer, but will he outline how he is ensuring that research and innovation, which is a key part of the industrial strategy in Wales, is recognised across the world?

[Alun Cairns]

My hon. Friend is a key campaigner for the steel industry, and I draw his attention to the Swansea bay city deal and the industrial strategy, which has established a new national Steel and Metals Institute, not only offering long-term viability to the industry in Wales, but complementing his constituency’s interests.

[Kevin Foster]

I thank my right hon. Friend for his answers so far. Does he agree that the combination of scrapping the Severn tolls and the cross-border commitment to the industrial strategy represents a significant boost for south Wales, mid-Wales and even south-west England?

[Alun Cairns]

My hon. Friend rightly draws attention to our commitment to scrap the Severn tolls by the end of this year, which will benefit south-west England and his constituency, as well as the south Wales economy. We are developing a new economic region and the industrial strategy commits to cross-border growth corridors. There is a great deal of excitement in south Wales and the south-west.

[Jessica Morden (Newport East) (Lab)]

In view of the lack of news about a sector deal for steel—[Interruption]—coupled with looming trade disruption caused by US steel tariffs, what is the Secretary of State doing in Cabinet to press for action to get the UK—[Interruption.]

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[Jessica Morden]

In the light of the lack of news about a sector deal for steel, coupled with the looming trade disruption caused by US steel tariffs, what is the Secretary of State doing in Cabinet to press for action to get the UK steel sector a more sustainable future? When is the next Steel Council?

[Alun Cairns]

I have already referred to the national Steel and Metals Institute at Swansea University, which is important for the sustainability of the steel sector. On the US trading arrangements on steel, the UK and European exemption was extended last week, and my right hon. Friend the Secretary of State for International Trade has travelled to the US specifically to discuss the matter. I have also raised the matter with the US ambassador here, and we are optimistic.

[Mr Speaker]

It is not possible to be more grateful to the Secretary of State.

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

At the heart of the industrial strategy is a commitment to 5G connectivity for businesses in Wales. Most businesses across Wales, including in my constituency, have little or no connectivity and slow connections. The Secretary of State has been warned by the CBI that the industrial strategy must be achievable. Is all this not just pie in the sky for businesses that are not connected at the moment?

[Alun Cairns]

I point to the commitment to the Swansea bay city deal and to our ambition for Cardiff to be a 5G testbed, and we are excited for the opportunities that they will bring. As for connectivity, the Welsh Government have a significant responsibility and, although they have recently committed more money, I ask them to look at their planning rules. The highest that a mast can be in Wales is 15 metres, whereas masts can go to 25 metres in England.

[Liz Twist (Blaydon) (Lab)]

7. What discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the effect on the Welsh economy of the Government not yet having made a decision on the Swansea Bay tidal lagoon.

[The Secretary of State for Wales (Alun Cairns)]

I have regular discussions with Ministers at the Department for Business, Energy and Industrial Strategy on energy matters pertaining to Wales, including the potential role that tidal could play in our energy mix. As I have said previously, it is an untried technology, so it is quite right that we take time to consider both the opportunities and challenges that it presents.

[Liz Twist]

Will the Secretary of State now make a statement on the timetable for a decision on the Swansea Bay tidal lagoon? Has he asked his colleagues in BEIS to commit to such a timetable?

[Alun Cairns]

I have regular discussions with my colleagues in BEIS and with my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy about the project. We would like it to go forward, but it must provide value for money, so it is right that we take time to consider the matter. Data has been shared with the Welsh Government, demonstrating the partnership approach that we are determined to take, but no one should want the project to go ahead if it does not represent good value for money for the taxpayer.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

8. What recent assessment he has made of the effect on the Welsh economy of the time being taken to legislate on the UK leaving the EU.

[Anna McMorrin (Cardiff North) (Lab)]

14. What recent assessment he has made of the effect on the Welsh economy of the time being taken to legislate on the UK leaving the EU.

[The Secretary of State for Wales (Alun Cairns)]

The agreement reached between the UK Government and the Welsh Government on the European Union (Withdrawal) Bill will ensure that we exit from the EU with the certainty and continuity that businesses and communities across Wales have called for.

[Bambos Charalambous]

Will the Minister reassure the House, and businesses across Wales, by confirming that arrangements will be put in place to ensure that new trade deals negotiated after we leave the European Union do not undermine devolved policies?

[Alun Cairns]

I am grateful that the hon. Gentleman is looking at the opportunities that leaving the European Union provides. Obviously, exports from Wales to the rest of the world are expanding at a much quicker rate than exports to the European Union, which demonstrates that businesses are already looking to those new opportunities, and more Members are looking to those opportunities as we have them.

[Anna McMorrin]

My constituent Damian Harris owns a cycle shop in Cardiff North but is struggling because of the uncertainty caused by Brexit. Twenty-nine of the 30 bikes he stocks come from the EU and, at the very least, he needs a customs union to have any sort of viable future. We are now hearing that 60 Tory MPs are plotting to sink their own Government to force the Prime Minister to abandon any form of customs arrangement. Will the Secretary of State guarantee that he will work with the Welsh Government and speak up against that decision? A low-skilled workforce and—

[Mr Speaker]

Order. We are grateful for the hon. Lady’s thoughts but, unfortunately, one has to take account of the situation in the Chamber. The question needed to be a bit shorter.

[Alun Cairns]

My right hon. Friend the Prime Minister is absolutely clear that we will be leaving the customs union but, of course, we are keen to negotiate to allow for the most frictionless trade possible with the European Union. We are also keen to take the new opportunities that leaving the European Union provides. We are keen to strike trade agreements right around the world, and to strike free trade agreements in due course.

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

My right hon. Friend will know that Labour’s economic development spokesman in the Welsh Government, Ken Skates, has spoken of the fact that Wales is receiving record amounts of inward investment. He said that Wales is “punching above its weight” at the moment. Is it not time that Labour Members started to listen to their own economic development Minister in Wales and stopped talking down the Welsh economy, which is booming under this Government?

[Alun Cairns]

Having met international investors from Japan, Qatar, the US and elsewhere over recent months, I am excited and optimistic about our prospects outside the European Union. Yesterday it was a privilege to be part of the inaugural flight from Qatar to Cardiff, which demonstrates that the industrial strategy, and the wider approach taken by the UK Government in seeking new markets, is already working.

[Bob Blackman (Harrow East) (Con)]

10. What steps the Government are taking to reduce reoffending rates in Wales.