Welsh Affairs

Alun Cairns Excerpts

Thursday 2nd March 2017 Commons Chamber

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

Rwyf yn ddiolchgar i’r Pwyllgor Busnes—I am grateful to the Backbench Business Committee for recognising the importance of holding this debate on Wales near St David’s day and for allocating the time. I pay tribute to the hon. Members for Ynys Môn (Albert Owen), for Ceredigion (Mr Williams) and for Dwyfor Meirionnydd (Liz Saville Roberts) and to my hon. Friend the Member for Gower (Byron Davies) for securing the debate on this motion on behalf of Members on both sides of the House. I am grateful for the commitment and drive that has delivered this debate.

I welcome the hon. Member for Neath (Christina Rees) to the Dispatch Box, and I look forward to working closely with her in the interests of Wales and of all the people of Wales. I thank her predecessor for her robust scrutiny when she was in post.

I highlight the importance of the Union to Wales. I will cover as many points as I can, but I need to underline that the Union of the United Kingdom is the most successful political union of nations that has ever existed. It is important that we recognise the precious bond between England, Scotland, Wales and Northern Ireland. As we leave the European Union, the Union of the UK is more important than ever, and we will seek to strengthen it as the negotiations progress. We want the United Kingdom to emerge from this period of change stronger, fairer, more united and more outward-looking than ever before. We will make sure that no new barriers to living and doing business within our nations are created. That was the spirit in which the hon. Member for Ynys Môn introduced this healthy debate, and I hope it has been underlined throughout.

By being part of the Union, Wales has prospered and developed, and in turn the UK has benefited from the flow of ideas and innovation from our proud nation. Some issues relating to universities were mentioned during the debate, and the hon. Members for Ceredigion and for Cardiff Central (Jo Stevens) and others talked about the great innovation and expertise in our universities, from which the Union of the UK benefits. Organisations such as Innovate UK have a key part to play in driving innovation and capturing the expertise that exists.

North and south Wales form single economic regions with the north-west and south-west of England. After all, 50% of Wales’s population and 10% of England’s live within 25 miles of the Wales-England border.

I shall address other points later, but first, there was much focus by Members on funding. I hope we can recognise the funding settlement that was negotiated before Christmas. It puts Wales in a strong financial position as we look forward: it will receive around £120 for every equivalent £100 spent in England. That will fall, over a long period, to £115, which is the funding floor. I hope that demonstrates the positive, open relationship that we want. We want to work with the Welsh Government to secure and bind the Union in the best possible way so that we can benefit from the assets, culture and diversity of all the nations in the Union of the United Kingdom.

There is no denying that, as a Union, we are inextricably linked. Companies in Wales have access to help and support from both Governments, and we are keen to work closely with the Welsh Government to secure further inward investment, as well as to develop businesses and the industrial strategy that my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy is driving forward. He will be in Wales shortly to ensure that Welsh businesses are playing a full part in the consultation on the recent Green Paper.

There are challenges ahead as we exit the European Union, but there are also some great opportunities. We are working with the Welsh Government and discussing the process and progress in the negotiations on our exit from the EU. Reference has been made to the Joint Ministerial Committee on EU negotiations, which brings together the UK Government and the devolved Administrations to seek to develop a UK-wide approach to the challenges we face and the opportunities we can grasp as we leave the EU. At the last meeting of that Committee, the Welsh Government presented their White Paper, which sets out their priorities for our exit from the EU, and we are discussing their proposals.

As part of the discussions, my right hon. Friend the Secretary of State for Exiting the European Union met the Welsh Government Finance Minister yesterday, along with officials from my office and the Cabinet Office. We are having parallel discussions on a whole range of issues to ensure that Wales is at the heart of the discussions. We will intensify our work with the Welsh Government on all aspects of the EU ahead of, and following, the triggering of article 50. It is important to remember that, despite political differences, we share many objectives. The Welsh Government’s White Paper was a welcome contribution, and I believe we have significant common ground from which to work.

We all want the freest possible access to the single market. In that context, the Ford plant at Bridgend was mentioned by not only the hon. Member for Bridgend (Mrs Moon) but several other Members, including the hon. Member for Torfaen (Nick Thomas-Symonds). The latter also mentioned steel, as did the hon. Members for Aberavon (Stephen Kinnock) and for Newport East (Jessica Morden).

We need to recognise that, in relation to Ford, there is the natural life cycle of a product, and that we need to be realistic about where we were expected to be at this stage of development. The hon. Member for Bridgend said that there were challenges in efficiency and productivity that the unions and the plant must face. When I met Ford two days ago, there was optimism about a sustainable future, but also a recognition that we need to win further business for when the natural life cycle of the existing engines ends. It is on that basis that I look positively at the challenges that we face in order to make those jobs sustainable over the longer term.

Some of the information out there has been highly selective, and I do not necessarily subscribe to the way in which it has been presented. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy and I have already discussed this matter, and I know that ongoing engagement with Ford is something that we want to pursue.

On the points that were made in relation to steel, I do not accept the criticism that the hon. Member for Aberavon made. He talked about trade defence measures. Although I have mentioned them time and again, he fails to recognise them. The 41 trade defence measures that have been introduced have had an effect. Imports of rebar and wire rod into the European Union are down by 99%, as a result of the Secretary of State, and his predecessor, driving that forward to ensure that we have a fair and level playing field for the steel industry. Rolled-flat products and organic coated steel are similarly down by 90%. The hon. Gentleman will recognise that, as a result of the action taken by the workforce and the responsible approach taken by Community union, the Government and the Welsh Government, the steel industry in Wales and across the United Kingdom is in a much, much stronger position now than it certainly was just a year or so ago. I am optimistic about the future. Yes, there are challenges to overcome, but there is a sustainable future that we need to find for steelmaking in Wales.

There are millions of people across the world looking for the skills, expertise, and goods and services that we have in Wales. Through the Wales Office and the Department for International Trade, we can use our exiting of the European Union to exploit those opportunities that exist. We have landed some significant investments, including GE in Nantgarw yesterday and the F-35 global repair hub in Flintshire. Those are just two examples of our recent significant progress.

I am sorry that I have not been able to cover all the issues, including the points about tourism that were made by my hon. Friends the Members for Brecon and Radnorshire (Chris Davies) and for Gower. They rightly highlighted the value that tourism brings. I recognise the points that they made about the Cardiff city deal. My hon. Friend the Member for Cardiff North (Craig Williams) drives that project with great enthusiasm. My hon. Friend the Member for Gower is pressing the point on the tidal lagoon. It is only right that we give that matter the time that it deserves in terms of examining the numbers and looking at it fairly so that it is right not only for energy production, but for the taxpayer.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

I call Albert Owen.