Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 25th May 2016 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

2. What steps the Government are taking to support the steel industry in Wales.

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

With your permission, Mr Speaker, may I pay tribute to my predecessor, my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), who is now the Secretary of State for Work and Pensions, for the work he did when he was Secretary of State for Wales in all matters supporting Wales, but particularly in relation to the steel industry?

We are doing everything we can to support the sale of Tata Steel UK, including offering support to potential buyers worth hundreds of millions of pounds. Our discussions with buyers, the Welsh Government and the unions continue, and we stand ready to negotiate with the preferred bidder to ensure the future of steelmaking in Wales and across the UK.

[Stephen Kinnock]

As we know, a critical meeting is taking place in Mumbai later today, and the future of the industry is hanging in the balance. What measures have the Secretary of State and his colleagues in the Cabinet taken to ensure that a viable and sustainable pension scheme is developed as a result of the sale of the business? Can he assure the House that it will be sustainable for the 130,000 members of the scheme?

[Alun Cairns]

I have spoken to the Secretary of State for Business since his meetings with Tata in Mumbai. Pensions are rightly one of the issues under consideration, and the hon. Gentleman will be aware that my right hon. Friend highlighted them at the outset, when he said that pensions, plant and power were three of the issues that needed to be addressed. Pensions are an extremely complex issue and cross a number of Departments, but we are determined to find a way through in the interests of the members, the trustees and the company.

[Byron Davies (Gower) (Con)]

8. The sale of the steelworks is at a critical stage. It is crucial to the survival of the plant that both Governments act with purpose to support a successful buyer. Has my right hon. Friend agreed a way forward with the First Minister and the Welsh Government in Cardiff Bay to ensure that that is the case?

[Alun Cairns]

I pay tribute to my hon. Friend for the work he is doing in his constituency, where a number of steelworkers reside, and for the responsible way in which he has pressed issues that are fundamental to a successful steel sale. I met the First Minister earlier this week, and we absolutely agreed that this issue is our priority. We are determined to continue in close dialogue and to work closely together to secure the sale.

[Hywel Williams (Arfon) (PC)]

We on the Opposition Benches are solidly with the steelworkers who will be marching through Westminster today. The European Parliament has voted against giving China market economy status. Will the Secretary of State press his colleagues in the Cabinet to agree to higher tariffs on Chinese steel?

[Alun Cairns]

I look forward, like the hon. Gentleman, to meeting the unions that are marching through Westminster later today. Of course, we are determined to work with the unions and with Tata. However, market economy status for China is separate from the capacity of the European Commission to introduce tariffs. Where tariffs have been introduced, they absolutely work. There are 37 trade defence measures in place at the moment. On wire rod, for example, imports are down by 99%, and I could highlight a range of other speciality steels. So let us not confuse market economy status and the capacity to introduce trade defence measures.

[Hywel Williams]

Steel was a significant element in Wales’s £5 billion-worth of exports to the EU in 2015—that is in fact a third of the whole Welsh Government budget. Will the Secretary of State now make the positive case for the advantages to Wales’s businesses, jobs and profitability of remaining in the European single market and the European Union?

[Alun Cairns]

The hon. Gentleman is absolutely right: 69% of steel produced in the UK is exported to the European Union. Access to that single European market is fundamental to the steel industry, but it is also fundamental to attracting a buyer. That was the very point I was seeking to highlight to business leaders in Swansea last week.

[Tom Pursglove (Corby) (Con)]

The steel produced at Port Talbot is transported to Corby and used to produce steel tubes. What steps are Ministers taking to make the case that it is vital to keep that supply chain together as one?

[Alun Cairns]

I also pay tribute to my hon. Friend for the way in which he represents the interests of his constituents. He recognises the interdependency of all these plants—the site in Corby, the site in Port Talbot and other sites across the UK. We talk to suppliers regularly because we need to maintain confidence that they will be able to continue to buy steel. We are determined to find a buyer that is in the interests of workers and the economy.

[Paul Flynn (Newport West) (Lab)]

Is the right hon. Gentleman inspired by the minor miracle that has taken place in Newport, where Mr Sanjeev Gupta and his enterprising workforce have brought the dead Alphasteel company back to productive life? Is not this spirit of entrepreneurship, co-operation among the workforce, hope and confidence the way to stage a renaissance of the entire British steel industry?

[Alun Cairns]

The hon. Gentleman is right that the interest of Sanjeev Gupta in Liberty Steel demonstrates the dynamism in the industry and the great opportunity that is out there. Liberty Steel has reopened a plant that closed some time ago, and it sees that there is a future in British steelmaking. I hope that we will continue to use that momentum to secure steel for the whole of the Tata operations across the UK.

[Nick Thomas-Symonds (Torfaen) (Lab)]

Given the Secretary of State’s previous answer on the effectiveness of tariffs, why do the UK Government keep being at the head of a blocking minority for reform of the lesser duty rule? Is it not the case that they simply have not done enough to save the British steel industry?

[Alun Cairns]

The hon. Gentleman is confused about the impact of the lesser duty rule, which relates to the framework. There are currently 37 trade defence measures in place. Where the European Commission has acted within the lesser duty rule, it has had a significant effect, be it in rebar, wire rod, seamless pipes or cold-rolled flat products. I could highlight a whole range of speciality steels where the tariffs are working within the lesser duty rule, because otherwise there would be an impact on other manufacturers and other costs. We need to work within the rule because it currently operates effectively.

[Karl MᶜCartney (Lincoln) (Con)]

3. What assessment he has made of the financial accountability of the Government in Wales.

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

In order to become truly accountable, the Welsh Government need to take responsibility for raising more of the money that they spend. That is why, as part of the Wales Bill, we will devolve income tax powers to the Welsh Assembly. I look forward to continuing to work alongside the Welsh Government to implement those powers.

[Karl MᶜCartney]

I hope my right hon. Friend agrees that while the Welsh Government are profligate in many ways, the reinstatement of the Aberystwyth to Carmarthen railway via Llanbedr Pont Steffan will be helpful to the entire Welsh economy. Such spending would be welcomed by all the citizens of Wales, who realise that investment in transport infrastructure is a precursor to economic prosperity.

[Alun Cairns]

My hon. Friend is absolutely right that there are several examples of the strange priorities shown by the Welsh Government. Investment in railways is a priority of the UK Government, as shown by the electrification of the line from Swansea through to Paddington. That in itself will provide greater opportunities for rail travel, such as the upgrade of the valleys lines, which, in turn, provides a knock-on, positive effect on more rural communities.

[Jo Stevens (Cardiff Central) (Lab)]

Air passenger duty has already been devolved to the Northern Ireland Assembly and is shortly to be devolved to the Scottish Parliament, but despite this, the Budget did not propose that it be devolved to the Welsh Assembly. Will the Secretary of State support the devolution of air passenger duty, and if not, why not?

[Alun Cairns]

Rates of taxation, including air passenger duties, are a matter for my right hon. Friend the Chancellor, who always keeps levels of taxes under review. The hon. Lady will be well aware that the Treasury is looking at this matter and will report in due course.

[Michael Fabricant (Lichfield) (Con)]

13. A few years ago in Boston, Massachusetts, a few revolutionaries said, “No taxation without representation”, so does my right hon. Friend agree that it is very important that the Welsh Assembly takes advantage of the Wales Bill and applies its own income tax?

[Alun Cairns]

I am grateful to my hon. Friend for the continued interest that he shows in Wales. I want the Welsh Assembly to be a mature legislator taking more responsibility for the money that it spends by raising money itself. On that basis, it will become truly accountable to the people of Wales, and will have to look differently at the sorts of spending priorities it has and the commitments it makes.

[Sir Henry Bellingham (North West Norfolk) (Con)]

4. What assessment he has made of the effect in Wales of the Government’s measures to support small businesses.

--- Later in debate ---

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

6. What the Government’s plans are for the future of S4C.

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

I was delighted to visit S4C last week to see at first hand the exciting developments at the channel, including the launch of its HD service in time for the European championship. I am sure we all wish Chris Coleman and the boys well.

[Jonathan Edwards]

What assurances can the Secretary of State give us that the UK Government’s review of S4C will not be compromised, as it will be conducted after the BBC’s charter review? Can he confirm that all options will be on the table, including securing an independent financial stream for S4C funded from revenues raised for public service broadcasting, and from direct Government support?

[Alun Cairns]

The hon. Gentleman will recognise that a fundamental principle is operational and editorial independence. The BBC White Paper offers protection and support for S4C, but, of course, there is a review ongoing that will look at all these matters, such as governance and financing, in order to secure a long-term future for the channel. [Interruption.]

[Mr Speaker]

Order. Let us hear Mr Glyn Davies.

[Glyn Davies (Montgomeryshire) (Con)]

S4C is crucial to Wales, and particularly to the Welsh language. Does my right hon. Friend the Secretary of State agree that the Welsh language is too often seen as the secondary language in Wales? It is not a secondary language; it is at least equal first.

[Alun Cairns]

This Government have a strong record of supporting S4C, and previous Conservative Governments have a strong record of establishing S4C, introducing the Welsh Language Act 1993 and turning around the decline in the Welsh language that we saw previously. We should be rightly proud of the language of our culture and our heritage—a true Conservative policy.

[Richard Arkless (Dumfries and Galloway) (SNP)]

7. What assessment he has made of the potential effect on Wales of the UK leaving the EU.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

9. What assessment he has made of the potential effect on Wales of the UK leaving the EU.

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

At the February European Council, the Government negotiated a new settlement, giving the United Kingdom a special status in a reformed European Union. As I said in my speech in Swansea last week, I believe that Wales and the UK will be stronger, safer and better off remaining in a reformed European Union.

[Richard Arkless]

Eighty per cent. of Welsh farmers depend on common agricultural policy payments from the European Union, and the vast majority export their goods to the European Union. Given that Wales receives £245 million more from the European Union than it puts in, what assurances can the Secretary of State give us that the loss to those farmers will be plugged by the UK Government in the event of Brexit?

[Alun Cairns]

The Welsh economy is showing some spectacular employment figures at the moment, with more people in work than ever before, the claimant count falling and an unemployment rate well below the UK average. This economic success is based on a stable economic policy, and all the independent forecasts from the OECD, the IMF, the Governor of the Bank of England and my right hon. Friend the Chancellor show that there would be a negative impact should we leave the single European market.

[Stuart C. McDonald]

EU programmes such as Erasmus bring enormous benefits to young people in Wales, broadening their experience and strengthening their employability. Does the Secretary of State agree that ensuring Welsh students can continue to benefit from such programmes is just one of the many good reasons to vote remain?

[Alun Cairns]

I would like to advise the House and the hon. Gentleman that the Erasmus programme was developed by a Port Talbot man some years ago. It has provided fantastic opportunities for students across Europe to share best practice and broaden the base of their knowledge. Of course, the European Investment Bank has also invested hugely in higher education and the new campus at Swansea University, worth more than £450 million, has benefited from such diversification.

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

The Secretary of State will surely have seen yesterday’s Cardiff University report showing that Britain pays nearly £10 billion a year net to be part of the European Union. Does he agree that, under the Barnett formula, that money could leave Wales £500 million better off if we vote leave on 23 June?

[Alun Cairns]

My hon. Friend is of course failing to recognise that independent forecasters—whether the IMF, the OECD or the Governor of the Bank of England—have talked about the negative impact Brexit would have on the Welsh economy. A £2 billion reduction in the scale of the economy, costing 24,000 jobs, is a step we cannot afford to take.

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

Is it the case that Wales Office special advisers recently had a meeting with representatives of the Britain Stronger in Europe campaign, and if so, what did they discuss?

[Alun Cairns]

We of course discuss a range of issues that affect the Welsh economy. A Brexit vote would of course affect the Welsh economy in a negative way, with a £2 billion cost to the Welsh economy, costing 24,000 jobs. As we speak, we are seeing some spectacular employment data, but they are based on strong economic foundations and access to 500 million customers across Europe.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

11. Given that Wales is already underfunded by the Barnett formula and the UK Government, what detailed guarantees can the Secretary of State give that the £245 million actually reaches Wales?

[Alun Cairns]

I do not necessarily recognise the basis of the question. The hon. Lady forgets the historic funding floor, which my right hon. Friend the Chancellor introduced at 115%. That demonstrates the strength of the commitment that this Government are showing to Wales.

[Mr David Nuttall (Bury North) (Con)]

Will the Secretary of State join me in welcoming the fact that Toyota has made it clear it will continue to manufacture in the United Kingdom, including at its engine plant in Wales, regardless of whether the British people vote to leave the EU on 23 June?

[Alun Cairns]

I certainly recognise the comments made by Toyota. It has specifically said that

“British membership of the EU is best for our operations and their long term competitiveness.”

Of course, it is not only Toyota; 150 component industries in the automotive sector depend on companies such as Toyota and Ford which all want us to remain part of the single European market.

[Mr Speaker]

We now come to questions to the Prime Minister.