Autumn Budget as it Relates to Wales (Morning sitting) Debate
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Main Page: Alun Cairns (Conservative - Vale of Glamorgan)Department Debates - View all Alun Cairns's debates with the Wales Office
(6 years, 6 months ago)
General CommitteesDiolch Mr Cadeirydd. Cynigaf,
Bod y Pwyllgor wedi ystyried Cyllideb yr hydref mewn perthynas â Chymru.
Mr Owen, diolch am y cyfle i agor y drafodaeth heddiw. Mae’n bleser gwasanaethu o dan eich cadeiryddiaeth unwaith eto. Rwy’n falch o fod yn siarad gyda chi i gyd heddiw yn yr iaith Gymraeg. Mae’r iaith yn bwysig i mi, yn bwysig i’r gymuned rwyf yn ei chynrychioli ac yn ganolog, yn amlwg, i hanes a diwylliant Cymru.
(Translation) I beg to move,
That the Committee has considered the matter of the autumn Budget as it relates to Wales.
Thank you, Mr Owen, for allowing me to open the debate. It is a pleasure to serve under your chairmanship. I am proud to speak to the Committee in the Welsh language, which is important to me and to the community that I represent and is integral to the history and culture of Wales.
Wnaiff yr Ysgrifennydd Gwladol ildio?
(Translation) Will the Secretary of State give way?
Os gai wneud bach mwy o dro.
Rwy’n gwybod bod llawer o Aelodau ar y Pwyllgor heddiw wedi ymgyrchu ac wedi galw am y newid hwn ers blynyddoedd, ac hoffwn gydnabod bob ymdrech gan bob aelod. Mae heddiw yn ddiwrnod hanesyddol i’r Senedd ac i Gymru ac, yn uniongyrchol, hoffwn sôn am y Gweinidog dros Swyddfa’r Cabinet a Changhellor Dugiaeth Caerhirfryn, a wnaeth gefnogi’r alwad drawsbleidiol a ddaeth ar y pryd.
Mae’n bwysig ein bod yn dod at ein gilydd yma, yn fforwm yr Uwch Bwyllgor Cymreig, ac mae’n bleser agor y drafodaeth hon trwy drafod Cyllideb yr hydref mewn perthynas â Chymru. Hoffwn amlinellu’r gwaith mae’r Llywodraeth yn ei wneud i sicrhau ein bod yn mynd i’r afael â’r heriau economaidd mewn ffordd sy’n codi’r economi ym mhob rhan o’r Deyrnas Unedig, gan gynnwys Cymru. Dyna pam y bydd y mesurau yng Nghyllideb yr hydref—fel y cynlluniau i wella cysylltiadau rheilffyrdd yng Nghymru, buddsoddi mewn bargeinion dinesig a thwf, a chyllid ychwanegol i Lywodraeth Cymru—yn rhoi rhagor o bŵer gwario i Gymru a fydd yn rhoi hwb i’r economi leol ac yn galluogi Cymru i ffynnu.
(Translation) Let me make a little progress.
Many Committee members have campaigned for this change for many years, and I pay tribute to every Member’s work. This is a historic day for Parliament and for Wales. My right hon. Friend the Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster backed the cross-party call for this change. It is essential that we come together in the forum of the Welsh Grand Committee, and it is a pleasure to open this debate on the matter of the autumn Budget as it relates to Wales.
I want to outline the work that the Government are doing to ensure that we meet economic challenges in a way that increases prosperity in all parts of the UK, including Wales. The measures in the autumn Budget, such as plans to improve Welsh rail links and to invest in city and growth deals, and of course the additional funding for the Welsh Government, will provide Wales with greater spending power, which will bolster the local economy and enable Wales to thrive.
Rwyf yn ddiolchgar i’r Ysgrifennydd Gwladol ac yn ddiolchgar hefyd ddaru’r Llywodraeth newid ei meddwl ynglŷn â defnydd yr iaith Gymraeg yn y Pwyllgor yma. A ydy’r Ysgrifennydd Gwladol yn meddwl bod hynny, efallai, yn arwydd bod y Llywodraeth yn barod i newid ei meddwl, er enghraifft, ynglŷn â’n haelodaeth o’r undeb tollau? Mae hynny’n hynod o bwysig i ni.
(Translation) I am grateful to the Secretary of State for giving way, and to the Government for changing their mind on the use of the Welsh language in the Committee. Does he believe that that is a sign that the Government are willing to change their mind, for example, on our membership of the customs union, which is very important to us?
Rwyf yn ddiolchgar am yr ymyrraeth gan y Foneddiges anrydeddus. Mae’r hen rheolau wedi bod yn eu lle dros ddegawdau ac roeddwn felly yn falch iawn bod y Llywodraeth yma wedi cefnogi’r newidiadau a ddaeth ar lefel drawsbleidiol.
Ni all y Llywodraeth weithredu ar ei phen ei hun i gyflawni’r newidiadau sydd eu hangen ar Gymru. Dyma pam rwyf am bwysleisio fy awydd i gydweithio’n agos gyda Llywodraeth Cymru er budd Cymru. Rwy’n annog Llywodraeth Cymru i ddefnyddio ei phŵerau ei hun a’r Cynulliad i gyflawni buddiannau economaidd tebyg i Gymru.
Rwyf yn edrych ymlaen at drafodaeth ddiddorol a bywiog heddiw yma yn y Pwyllgor.
(Translation) I am grateful to the hon. Lady for her intervention. The orders have been in place for decades, so I was pleased that this Government supported the changes that came about on the basis of cross-party support.
This Government cannot act alone to deliver the changes that Wales needs, so I reiterate my desire to work closely with the Welsh Government in the best interests of Wales. I urge the Welsh Government to use their powers and the Welsh Assembly’s powers to deliver similar economic benefits to Wales.
I look forward to an interesting and stimulating debate.
The Secretary of State talks about the Welsh Government using their functions to their economic benefit. One way that he could use his powers would be to secure the tidal lagoon at Swansea by working with the Welsh Government on the financial offer that they put to the Prime Minister. That will bring real economic prosperity across south Wales and beyond.
Rwyf yn falch bod y Bonheddwr anrhydeddus wedi gofyn y cwestiwn. Fel rwyf wedi dweud yn y gorffennol, byddem yn hapus i weld y cynllun yn mynd yn ei flaen, ond mae’n rhaid inni ddangos gwerth am arian. Ni fedrwn gefnogi’r cynllun heb brofi gwerth am arian. Mae fy swyddogion, yn ogystal â swyddogion yr Adran Busnes, Ynni a Strategaeth Ddiwydiannol—BEIS—a swyddogion Llywodraeth Cymru, wedi cwrdd. Mae Pwyllgor Dethol Materion Cymreig wedi gofyn am dystiolaeth gan Brif Weinidog Cymru. Yn amlwg, wnawn ni ddal ati i gydweithio i geisio dangos gwerth am arian. Rhaid hefyd gofio mae’r Llywodraeth hon a roddodd ganiatâd cynllunio wedi’r etholiad yn 2015, sydd yn dangos ein bod ni’n awyddus i’r cynllun llwyddo, ond ni ddylem ei gefnogi heb brofi gwerth am arian, oherwydd ein trethdalwyr a’n cymunedau ni byddai’n cefnogi’r cynllun, gyda’r pergygl bod y gost yn llawer mwy iddyn nhw na beth sydd yn cael ei gyflawni mewn llefydd eraill.
(Translation) I am pleased that the hon. Gentleman raised that question because, as I said previously, I would be very happy to see that project go ahead. Obviously, however, we must test its value for money, because none of us would wish to support that funding without it being proved good value for money. I have considered this with officials from the Department for Business, Energy and Industrial Strategy and in the Welsh Government, and the Welsh Affairs Committee has asked to take evidence from the Welsh First Minister. We will continue to work together to test the value for money of the plan. We must also bear in mind that it was this Government who gave planning permission for the project after the 2015 election, which shows that we are eager to see it succeed. However, we do not believe we should support it if there is no value for money. Taxpayers and our communities will support this project, but not if it is not good value for money and the cost will be higher than what has been achieved in other countries.
Does my right hon. Friend appreciate that the Swansea tidal lagoon is supported not only in the Swansea area but right across Wales? It is an advanced technology that could be of enormous benefit to the British economy, and it would also be welcomed in north Wales where a large tidal lagoon has been proposed for the coast in my constituency and that of the hon. Member for Vale of Clwyd. Will my right hon. Friend speak in very strong terms to his colleagues in BEIS about this matter?
Out of courtesy, I will respond to my right hon. Friend in the language in which he raised the issue. Of course we would like this project to happen and I recognise the enthusiasm for it, but I am sure that he would not want any project to go ahead that does not prove to be value for money. Many claims have been made about the technology and the export potential, and about the regeneration of the economy that the tidal lagoon would provide, but I am sure he would want the Government to scrutinise those claims appropriately and establish whether the project is genuinely value for money. We must not forget that our constituents will be asked to support it, and if they support this project over other projects that might be better value for money, there is a risk of higher energy costs.
I understand fully that the benefits or otherwise of the project must be scrutinised, but how long is that scrutiny likely to take?
My right hon. Friend will recognise that this is a dynamic environment and costs in the energy industry are changing at various stages. Indeed, there has been a significant change in energy costs since this project was first proposed.
My right hon. Friend will remember as acutely as I do the debates about the merits and demerits of the Cardiff bay proposals in the ’80s and early ’90s. I am sure we all accept the need to make an economic case and to ensure value for public money, but does he accept that the message that the tidal lagoon proposal sends about a commitment to renewable energy and to the industrial base of Wales is very strong? That must be taken into account when making the economic assessment of the proposition.
I absolutely accept my hon. Friend’s point. Ultimately, however, the project must prove to be value for money because otherwise taxpayers will risk paying more than they would for an alternative source of energy, in addition to pushing up consumer prices. Two years ago, we were considering the crisis in Tata Steel, which is adjacent to the proposed site for the Swansea bay tidal lagoon. One of Tata’s core concerns was the rising cost of energy. It is not in anyone’s interest for a project to go ahead that risks driving up energy costs. It is therefore only right that we scrutinise this project to establish whether it provides value for money, as is believed.
Hon. Members mentioned delay. There is a chance that the UK could become a world leader in this technology, and if we delay this project we will miss out. We missed out on wind power, but we have a chance with tidal. Four of the six potential sites for lagoons are in Wales, so Wales could become a world leader. The Secretary of State should see the vision and develop the vision.
The hon. Gentleman is on the record as saying that it is worth paying over the odds for paying for a scheme of this type. If we are paying over the odds, at what level do we stop? What is he prepared to ask his constituents to pay? How much is he prepared to ask his constituents to add to their electricity prices to support such a scheme? I ask him to think long and hard about this. How much over the odds is he prepared to pay?
Is the Secretary of State aware that we paid over the odds for nuclear power in the 1950s and 1960s, and that in the long term the investment was paid back? Paying over the odds in the initial period will have a long-term payback. We will get energy from this project for the next 125 years, and we will be able to time that energy to the minute. I believe that it is worth investing in, even if it is over the odds in the short term.
Order. May I say two things? First, if hon. Members are patient, they will get the opportunity to make lengthy speeches themselves. Secondly, if you are not using the translation system, can you switch it off, please, because there is feedback going through the system?
I am not sure that nuclear is the comparison I would make as a previous long-term decision, but that is an interesting contribution none the less.
Buasai’r Ysgrifennydd Gwladol yn annog Prif Weinidog y Cynulliad i ddod o flaen y Pwyllgor Materion Cymreig i esbonio’r cynnig a wnaeth i’r Llywodraeth? Ar hyn o bryd, dydy e ddim yn barod i ddod a dydw i ddim yn deall pam.
(Translation) Would the Secretary of State encourage the First Minister to appear before the Welsh Affairs Committee to explain the proposals he has made to the Government? At the moment, he is not willing to come, and I do not understand why.
Rwyf yn ddiolchgar i fy Nghyfaill anrhydeddus am godi’r pwynt. Yn amlwg, dydw i ddim yn gwybod pam nad yw Prif Weinidog y Cynulliad yn fodlon rhoi tystiolaeth i’r Pwyllgor Dethol. Yn amlwg, byddai hynny’n cryfhau’r sylwadau sydd wedi eu gwneud a, hefyd, yn rhoi mwy o fanylion ynglŷn â’r gefnogaeth mae Llywodraeth Cymru yn fodlon rhoi. Yn amlwg, rwyf yn awyddus i gydweithio’n agos gyda Llywodraeth y Cynulliad, fel yr ydym wedi gwneud gyda chymaint o wahanol gynlluniau dros yr amser rwyf wedi bod yn Ysgrifennydd Gwladol a’r rhai sydd wedi bod o’m blaen.
(Translation) I am grateful to my hon. Friend for raising that point. I do not know why the First Minister of the National Assembly is not willing to give evidence before the Select Committee. Obviously, that would strengthen the comments that have been made, and would give further clarity about the support that the Welsh Government are willing to give. I am eager to collaborate with the Welsh Government, as we have done on many schemes during the period that I have been Secretary of State.
Rwy’n gallu rhannu rhai o’r pryderon ynglŷn â’r model contracts for difference. Mae’n ffordd ddrud iawn o ariannu prosiectau fel hyn ac mae’r pris, yn y pen draw, yn cwympo ar y defnyddwyr. Pam nad yw’r Llywodraeth yn edrych ar model o ariannu cyfalaf uniongyrchol? Yn y pen draw, mae pobl yn talu naill ai trwy brisiau ynni neu drwy trethi. Byddai’n llawer rhatach i bobl dalu trwy eu trethi na thrwy brisiau ynni.
(Translation) I share some of the concerns about the contracts for difference model. It is a very expensive way of funding such projects, and the ultimate price will fall on the consumer. Why are the Government not looking at a direct capital funding model? People pay either through energy prices or through their taxes, and it is far better that they pay through taxes rather than energy prices.
Yn amlwg, pa bynnag ffordd mae unrhyw brosiect neu gynllun fel hyn yn cael ei ariannu, mae’n rhaid bod trethdalwyr yn cefnogi’r peth. Dyna’r pwynt sydd yn cael ei wneud, felly mae’n rhaid ein bod yn profi gwerth arian unrhyw fath o gynllun, a byddwn yn tybio bydd yr Aelod dros Ddwyrain Caerfyrddin a Dinefwr yn cefnogi’r peth. Mae’n rhaid ein bod yn cefnogi gwerth yr arian a gwerth unrhyw gynllun a dyna wirionedd y peth yn y pen draw.
Yn ei ddatganiad o’r Gyllideb, nododd fy Nghyfaill anrhydeddus y Canghellor gynlluniau i sicrhau cynnydd o £1.2 biliwn i gyllideb Llywodraeth Cymru. Mae’r cynnydd yn y cyllid yn cynnwys, am y tro cyntaf, mwy na £65 miliwn dros y tair mlynedd nesaf o ganlyniad i wella fformiwla Barnett o ryw 5%, a gytunwyd yn fframwaith cyllidol Llywodraeth Cymru. Mae hyn yn addasu grant bloc Llywodraeth Cymru i adlewyrchu’r ffactor seiliedig ar anghenion a gytunwyd yn ei fframwaith cyllidol.
Mae’r drafodaeth ynghylch cyllid Cymru wedi bodoli ers datganoli—ac ers degawadau—a’r Llywodraeth hon sydd wedi rhoi sicrwydd ariannol tymor hir i Gymru. Ar hyn y bryd, mae Llywodraeth Cymru yn cael £120 am bob £100 cymaradwy sydd yn cael ei wario yn Lloegr.
(Translation) Evidently, whichever way a scheme such as this is financed, taxpayers must support it. That is the point. Therefore, we must test the value for money of any such scheme, and I believe that the hon. Gentleman will support that. That is the truth of the matter.
In my right hon. Friend the Chancellor of the Exchequer’s Budget statement, he set out plans to increase the Welsh Government budget by £1.2 billion. The increased funding includes, for the first time, more than £65 million over the next three years resulting from the 5% Barnett formula boost agreed in the Welsh Government’s fiscal framework, which adjusts the Welsh Government block grant to reflect the needs-based factor, as agreed by their fiscal framework.
Many hon. Members will know that that discussion about the Welsh budget has taken place since devolution and has gone on for decades. This UK Government have given long-term financial security to Wales. The Welsh Government receive £120 for every equivalent £100 spent in England.
Mae’r Ysgrifennydd Gwladol yn gwneud pwynt diddorol iawn. Wrth gwrs, mae yna ryw gynnydd wedi bod yng nghyllideb Llywodraeth Cymru, ond a yw e’n hapus, fodd bynnag, gyda sut mae’r cynnydd yna’n cymharu gyda’r cynnydd yng nghyllideb yr Alban, neu hwnnw yng nghyllideb Gogledd Iwerddon yn sgil y gytundeb rhwng Llywodraeth y Deyrnas Unedig a phlaid yr Unoliaethwyr Democrataidd?
(Translation) The Secretary of State makes an interesting point. Yes, there has been an increase in the Welsh Government budget, but is he happy about how that compares with the increase in Scotland or Northern Ireland, given the deal between the UK Government and the Democratic Unionist party?
Yr unig ffordd gallaf ymateb yw trwy gyfeirio at beth ddywedodd Llywodraeth Cymru a Gerry Holtham ar y pryd. Dywedodd Gerry Holtham ei fod yn “setliad teg iawn”, ac fe wnaeth Llywodraeth Cymru eu hunain gyhoeddi, yn y Cynulliad, y byddai’r fargen hon yn darparu cyllid tymor hir teg i Gymru. Dyna beth ddywedodd Gweinidogion y Cynulliad ym Mae Caerdydd.
(Translation) I can only go back to what the Welsh Government and Gerry Holtham said at the time. He said it was a very fair settlement, and the Welsh Government said in the Assembly that the deal would provide fair, long-term funding for Wales. That is what the Assembly’s Ministers said in Cardiff Bay.
The Secretary of State talks about the needs of Wales. A couple in my constituency are moving into a property. As a result of the move from employment and support allowance to universal credit, they will be £169 a month worse off, and they will be hit by the bedroom tax. Has not the Budget done absolutely nothing for that couple, and indeed for many of my other constituents?
The best way out of poverty is to encourage people into work and to progress within a work environment. Universal credit has been transformational in that. I point the hon. Gentleman to the data: unemployment in his constituency and others across Wales and the whole of the UK has fallen by close to 50%, depending on the community, and the greatest effect is being felt in areas where universal credit is being rolled out.
There are two responses to that. First, the jobs referred to are often, I am afraid, zero-hours contract jobs and very insecure. They are not the jobs where people can build a life, whether by taking out a car loan or indeed having a mortgage. Secondly, and worse still, we talk of jobs as a route out of poverty, but the Government have driven in-work poverty up to record levels.
I do not recognise the hon. Gentleman’s points. The working environment is changing, and that is exactly why today the Government published our response to the Taylor review, which recognises the further rights we need to give workers to protect those who find themselves in what they consider to be vulnerable situations. That is an example of the Government responding to concerns raised. I am sure the hon. Gentleman will give credit to Matthew Taylor and the work he did on the report.
Yn unol ag argymhellion Comisiwn Holtham, a’r hyn y cytunwyd arno yn y fframwiath cyllidol, ni fydd y swm y soniais amdano—sydd yn cael ei roi yn y grant bloc dan fformiwla Barnett—byth yn disgyn yn is na £115. Dyma’r cyllid gwaelodol—“funding floor”—mae rhai wedi bod yn galw amdano ers degawdau, a’r Llywodraeth yma sydd wedi cyflawni hynny. Yn unol â’r cytundeb hwn, mae Llywodraeth Cymru yn gallu tyfu’r economi, denu buddsoddiadau newydd, cynnal eu gwasanaethau cyhoeddus a chefnogi pobl sydd yn gweithio’n galed ar hyd a lled Cymru.
Ar ôl datganoli treth stamp ar dir a threthi tirlenwi ym mis Ebrill, yn ogystal â chyfraddau treth incwm yng Nghymru y flwyddyn nesaf, bydd Llywodraeth Cymru yn gallu codi mwy o’u cyllid ei hunain trwy’r trethi hyn. Bydd hyn yn gwneud Llywodraeth Cymru, a’r Cynulliad yn gyffredinol, yn llawer mwy atebol i’r bobl maent yn eu gwasanaethu. Am y tro cyntaf, yng Nghyllideb yr hydref fe wnaeth Llywodraeth y Deyrnas Unedig addasu grant bloc Llywodraeth Cymru i ystyried hyn, gan roi rhagor o gyfrifoldeb i Lywodraeth Cymru dros y bobl maent yn eu gwasanaethu. Fel ddywedais ynghynt, wnaeth Gerry Holtham gefnogi’r newid a wnaeth Llywodraeth Cymru dderbyn y newid a’i groesawu ar y pryd.
Mae Cyllideb yr hydref yn cynnwys mesurau penodol a fydd o fudd uniongyrchol i Gymru. Yn ogystal â pharhau i gefnogi’r bargeinion dinesig ar gyfer Caerdydd ac Abertawe trwy fuddsoddi £615 miliwn dros yr 20 mlynedd nesaf, cyhoeddwyd yn y Gyllideb bod Llywodraeth y Deyrnas Unedig yn croesawu cynigion ar gyfer bargen twf i ganolbarth Cymru ac y byddai’n dechrau trafodaethau ffurfiol ar gyfer bargen twf i ogledd Cymru.
(Translation) In accordance with the Holtham Commission’s recommendations, agreed through the fiscal framework, the sum given via the block grant under the Barnett formula will not fall below £115. Some have called for that funding flow for decades, and it is this Government who have delivered on those calls. In accordance with the agreement, the Welsh Government have the means to grow the Welsh economy, to attract investment, to maintain public services and to support hard-working people across Wales.
Following the devolution of stamp duty land tax and landfill tax from April, in addition to the Welsh rate of income tax next year, the Welsh Government will be able to raise more of their own funding through those taxes. That will make the Welsh Government—and the Assembly in general—much more accountable to the people they serve.
For the first time, in the autumn Budget the UK Government adjusted the Welsh Government’s block grant to take that into account, giving the Welsh Government further responsibilities and making them more accountable to the people they serve. As I said earlier, Gerry Holtham supported this change, and the Welsh Government accepted and welcomed the change at the time.
The autumn Budget also includes specific measures that will be of benefit to Wales. In addition to continuing to support the Cardiff and Swansea city deals by investing £650 million over the next 20 years, the Budget announced that we as a UK Government are open to proposals for a mid-Wales growth deal. We will also begin formal negotiations for a north Wales growth deal.
Ar fargen twf canolbarth Cymru, un o’r pethau rwyf yn siwr y bydd y tri ohonom sydd yn cynrychioli etholaethau yng nghanolbarth Cymru yn dweud yw cysylltedd—connectivity. Mae dirfawr angen i wella ar hyn yng nghanolbarth Cymru ac rwyf yn fawr obeithio y bydd modd cynnwys hyn yn y fargen yma.
(Translation) On the mid-Wales growth deal, one of the issues for the three of us who represent constituencies in mid-Wales is connectivity. We truly need to make improvements to that in mid-Wales and I hope that it can be included in the growth deal.
Rwyf eisiau tynnu cymunedau at ei gilydd: yn amlwg cymunedau o Geredigion ac o Bowys, ond hefyd rwyf yn gobeithio bydd cyfleoedd i rai o’r siroedd yn Nghymru ac ar yr ochr arall i gydweithio er mwyn denu buddsoddiant newydd i’r ardaloedd ac er mwyn cefnogi’r economi. Mae hynny’n golygu y byddai pob rhan o Gymru yn cael budd o’r gefnogaeth leol a phenodol y mae bargeinion dinesig a thwf yn ei chynnig. Ac mae hyn, wrth gwrs, ar ben y fformiwla Barnett newydd sydd wedi ei chytuno.
(Translation) I am very much in favour of bringing communities together, whether they be the communities of Ceredigion or of Powys, but I am also eager to give opportunities to some of the counties of Wales—and those on the other side of the border too—to work together to attract new investment into those areas and to support the economy. Our policy means that every part of Wales will benefit from the local, targeted support offered by the city and growth deals. That is above the new Barnett formula that has been agreed.
Rydym yn croesawu bob cyhoeddiad am fargen twf gogledd Cymru, ond byddwn yn ei chroesawu’n fwy pan fydd yn digwydd. Pryd mae’n mynd i ddigwydd?
(Translation) I welcome any announcement on a north Wales growth deal, but I will welcome it more when it happens. When will it happen?
Rydw i’n falch fod y Foneddiges anrhydeddus wedi gofyn y cwestiwn. Y peth sydd wrth wraidd y cynlluniau twf a’r bargeinion dinesig yw bod y grym yn nwylo’r awdurdodau lleol a busnesau lleol. Felly, rydym yn rhoi cyfle at ei gilydd ac, yn amlwg, yn gobeithio bydd y Foneddiges anrhydeddus yn fodlon cydweithio gyda’r cymunedau a’r busnesau er mwyn eu bod yn cyflawni’r cynlluniau ac i ddod â realiti i’r broses wrth ei bod yn datblygu.
Fel Aelodau Seneddol o bob cwr o Gymru, mae’n bwysig ein bod i gyd yn rhan o’r broses hon. Felly, rwyf yn falch iawn y llwyddodd gymaint ohonoch i ymuno â Swyddfa Cymru cyn y Nadolig i glywed yn uniongyrchol gan ein partneriaid lleol ynglŷn â’u cynnydd yng ngogledd Cymru. Yn amlwg, mae angen mwy o waith i gefnogi’r gwaith da sydd wedi mynd o’i flaen.
(Translation) I am glad that the hon. Lady asked that question. What lies at the heart of the growth and city deals is that the power lies in the hands of local authorities and local businesses, so we are giving them an opportunity to come together. We hope that she is willing to work with communities and businesses to achieve the deals and to make them a reality as they develop.
It is important that Members of Parliament from all parts of Wales are part of the process. I was therefore delighted that so many of the Members present were able to join us before Christmas to hear directly from local partners on the progress that they are making in north Wales. Obviously, we need more work in that regard to support the good work that has taken place already.
Mae angen i’r Ysgrifennydd Gwladol fod yn effro i’r perygl o weithio’n drawsffiniol: y bydd yr ardaloedd tlotaf, sef yr ardaloedd yn y gorllewin, o hyd yn olaf yn y dewisiadau. Rydym wedi cael yr un profiad gyda chysylltedd, lle mae dechrau gyda’r prif drefi yn golygu bod y cymunedau pellaf i ffwrdd yn cael eu anghofio erbyn y diwedd.
(Translation) The Secretary of State must be alive to the dangers of working on a cross-border basis: that the poorest areas—those in the west—will be left behind. That is the same problem we have had with connectivity, which started in the main towns, so the most remote communities were ultimately forgotten.
Rwyf yn falch iawn fod y cwestiwn yna wedi cael ei ofyn. Rwyf yn deall y peryg ac yn ymwybodol o’r sensitifrwydd. Mae’n rhaid bod y partneriaid lleol yn ymateb i hyn, er mwyn bod setliad gan bawb. Os nad yw pawb yn gytûn, yn amlwg, bydd y bargen dinesig a’r bargen twf ddim yn cael cefnogaeth gen i na’r partneriaid lleol eraill. Mae’n rhaid fod pawb yn gytûn yn y broses. Rwyf yn awyddus i weld busnesau ledled y rhanbarth a thu hwnt yn hybu'r bargeinion hyn, gan adeiladu ar gryfderau'r ardaloedd—pob ardal—gweithio'n drawsffiniol a rhoi hwb i'r economi lleol.
Roedd y Gyllideb hefyd yn cydnabod bod angen gwella ein rhwydwaith rheilffyrdd, gan roi hwb i gysylltiadau a gwella teithiau i gwsmeriaid ar y trenau mwyaf diweddar.
(Translation) I am very glad that that question was asked. Obviously, I understand the risk, and I am aware of the sensitivity that arises. Local partners must respond to that to ensure that the settlement is for everyone, because if everyone is not agreed, obviously the city or growth deal would not be supported, whether by me or by other local partners. Everyone must be agreed on the process. I am keen to see businesses across the region and from further afield driving the deals, building on the strength of the regions—that is all regions, cross-border too—and boosting the local economy.
The Budget also recognised the need to see further improvements to our rail network, boosting connectivity and delivering better journeys on the newest trains.
What possible justification can the Secretary of State give for the breaking of a promise to electrify the railway line—
What possible justification can the Secretary of State give for breaking the promise to electrify the railway line from Cardiff to Swansea?
I am grateful to the hon. Gentleman for asking that question, but he will be fully aware of the calls by the Public Accounts Committee, which is formed on a cross-party basis, for every element to be reviewed case by case for value for money. Projects that were not deemed to be value for money because there would be no improvement, such as the time to be delivered between Cardiff and Swansea, did not justify the additional sums of money made available. Under the current proposals, it will be the same trains travelling on the same track arriving at the same time as would have been the case under electrification that went the whole way to Swansea or stopped in Cardiff.
When the previous Tory Prime Minister, David Cameron, said how transformational that project would be and committed to it, he was wrong, was he?
The hon. Gentleman will be well aware that when that commitment was made, the intention was to use electric-only trains rather than bimodal trains.
The former Secretary of State for Transport also categorically stated in the House of Commons that the valleys lines would be electrified by the end of 2018. There is absolutely no prospect of that happening, is there? Why do Conservative politicians keep making promises that they know they have no prospect of fulfilling?
The hon. Gentleman is well aware that that responsibility has been passed over to the Welsh Government, with additional money being made available by the UK Government for that scheme. I suggest that he puts that question to his colleagues in Cardiff Bay, because the former Transport Secretary would have been repeating the claims and the comments that had been made by politicians in Cardiff Bay.
Given that there are new proposals on the table for the straightening of the line to Cardiff and Swansea to reduce the journey time by half an hour, alongside Swansea metro, will the Secretary of State look positively at those ideas as part of a wider city deal? Given that Wales has 6% of the track line and only about 2% of the investment in railway infrastructure, he should be standing up for Wales, rather than sitting down and thinking about his job before he thinks about Wales.
In the first instance, I would say that of course we will look at whatever project comes forward. The hon. Gentleman will be aware of demands that have been made. The First Minister made positive statements about a Swansea parkway station earlier this week in the Assembly, and there are demands coming from some community leaders in Swansea about such a station. Those are issues that we are happy to look at, and the Chancellor talked about proposals of that sort.
If any other project comes forward, we will happily look at it, but I remind the hon. Gentleman that in 13 years of Labour Government only 3 miles or 12 miles of track were electrified—there is a debate about that and we are not sure which, but I will happily give the benefit of the doubt and say that it was 12 miles. I also remind hon. Members that Wales was left as one of those nations, along with eastern European nations such as Moldova and Albania, with not a single track of electrified railway.
Mr Owen, gyda’ch cytundeb, ildiaf i’r anrhydeddus Aelod dros Dwyrain Caerfyrddin a Dinefwr.
(Translation) With your permission, Mr Owen, I will give way to the hon. Member for Carmarthen East and Dinefwr.
O ystyried hoffder y Llywodraeth Prydeinig o drenau dau-danwydd yng nghyd-destun rheilffyrdd Cymru, gallaf gymryd mai trenau dau-danwydd bydd yn rhedeg ar HS2, HS3 a Crossrail 2?
(Translation) Given the Government’s liking for bimodal-fuel vehicles for Welsh railways, may I assume that bimodal trains will be running on HS2, HS3 and Crossrail?
Rwy’n siwr bydd y Bonheddwr anrhydeddus yn cefnogi edrych ar unrhyw brosiect i ddefnyddio’r dechnoleg orau posib ar gyfer cyflawni’r gwariant a’r gwerth arian sydd ymhob prosiect.
Gaf i symud ymlaen, Mr Owen? Rydym wedi gwella’r cysylltiad yng ngogledd Cymru, gan roi budd i bobl ar ddwy ochr y ffin. Bydd gwasanaethau uniongyrchol o ogledd Cymru i Lerpwl ar gael am y tro cyntaf mewn degawdau, diolch i’r buddsoddiad o £16 miliwn i’r Halton curve. Nawr rydym yn darparu prosiect ail-signalu gwerth £50 miliwn i uwchraddio rheilffyrdd gogledd Cymru. Byddai moderneiddio prif linell rheilffordd arfordir y gogledd yn rhoi hwb sylweddol i gysylltiadau trafnidiaeth y rhanbarth. Mae ein rhaglen moderneiddio Great Western, gan gynnwys ein buddsoddiad o £5.7 biliwn mewn trenau IEP o'r radd flaenaf, yn torri 15 munud oddi ar yr amseroedd teithio o dde Cymru i Lundain.
(Translation) Obviously, I am sure that the hon. Gentleman will be supportive of any project that will use the best possible technology to achieve the expenditure and the value for money that all projects require.
May I move on? We are improving connectivity for north Wales, benefiting people on both sides of the border, and direct services from north Wales to Liverpool will be possible for the first time in decades. That is thanks to our £16 million investment in the Halton curve. We are now delivering a £50 million re-signalling project to upgrade north Wales’s railway, and modernising the north Wales coast main line would be a significant boost to the region’s transport links. Our Great Western modernisation programme, including a £5.7 billion investment in new, state-of-the-art IEP trains, will cut journey times from south Wales to London by 15 minutes. At the Budget—
Rwyf yn fwy na hapus i ildio, ond rwyf hefyd yn gwbl ymwybodol o’r amser sydd yn cael ei gymryd.
(Translation) I am happy to give way, but I also feel very aware of the time that is being taken.
If the Secretary of State is serious about improving cross-border connectivity between parts of my constituency and Bristol and beyond, can he get the Department for Transport to improve those cross-border rail services that take my constituents to Bristol, Bath and beyond to work? They are woefully inadequate.
Rwyf yn falch iawn i ymateb yn bositif. Mae’r ymgynghoriad yn mynd yn ei flaen ar hyn o bryd ynglŷn â franchise Great Western Railways a pha fath o fodel y dylem gydweithio i’w sicrhau, ac rwyf yn argymell bod y Foneddiges anrhydeddus yn ymateb i’r ymgynghoriad. Rwyf eisiau gweld y cysylltiadau gorau posib rhwng Caerdydd, Casnewydd, Bryste a llefydd y tu hwnt yn gyflym ac yn effeithiol, er mwyn iddynt addasu at y cyfleoedd newydd a ddaw yn y rhanbarth sydd yn datblygu wrth i ni gael gwared o’r tollau ar bont Hafren. Hoffwn hefyd dalu teyrnged i’r Foneddiges anrhydeddus am ei hymgyrchu i gael gwared o’r tollau.
(Translation): I am very happy to respond positively. The consultation is under way on the Great Western railway franchise and the type of model that we should be collaborating to get. I recommend that the hon. Lady responds to that consultation. Obviously, I want to see the best possible connections between Cardiff, Newport and Bristol, and further afield. They should be quick and efficient for us to grasp the new opportunities that will arrive in a region that is developing, as we get rid of the tolls on the Severn bridge. I pay tribute to the hon. Lady for her campaigning to remove those tolls from the bridges.
Hoffwn fwrw ati i orffen yr araith rhywfaint a byddaf yn ildio yn nes ymlaen. Mae fy Ffrind gwir anrhydeddus Canghellor y Trysorlys hefyd wedi amlinellu gwaith ar gyfer y dyfodol i lunio cynigion ar gyfer cynlluniau rheilffyrdd posib eraill ar hyd a lled rhwydwaith Cymru. Roedd ein strategaeth ddiwydiannol yn sail i gyhoeddiadau’r Gyllideb ac rydym yn awyddus i adeiladu ar y bargeinion a gyhoeddwyd ar gyfer y sectorau deallusrwydd artiffisial, lle mae Casnewydd yn rhagori; gwyddorau bywyd, lle mae Cymru eto ar flaen y gad, gyda nifer o ddatblygiadau cyffrous ac arloesol; a’r diwydiant cerbydau yng Nghymru, sy’n gartref i Toyota, Ford ac Aston Martin.
(Translation): Let me make some progress and I will give way later. The Chancellor of the Exchequer has outlined further work to develop proposals for other potential rail schemes across the Wales network. Our industrial strategy was a basis of the Budget announcements. We are keen to build on the sector deals on artificial intelligence that were announced, where Newport excels. In life sciences, Wales is at the forefront of several exciting and pioneering developments. In the automotive industry, Wales is home to Toyota, Ford and Aston Martin.
Ar y nodyn hwnnw, crëwyd cryn dipyn o gynnwrf cwpl o wythnosau yn ôl pan ddatgelwyd y pwerdy gorllewinol. Wrth gwrs, roedd yn siomedig i ni yng Ngheredigion mai gorllewin Lloegr yr oedd yr Ysgrifennydd Gwladol dros Gymru yn cyfeirio ati. O ran deallusrwydd artiffisial, eto dyma gyfle ar gyfer cynllun twf canolbarth Cymru. Mae Prifysgol Aberystwyth yn ganolfan arbenigol, felly byddai’n dda gweld unrhyw fesurau sydd gan y Llywodraeth i geisio ysgogi hyn.
(Translation): On that point, a few weeks ago there was quite some excitement when the western powerhouse was announced. It was unfortunate for Ceredigion that the Secretary of State referred only to south-east Wales and the south-west of England. On AI, there is an opportunity for the mid-Wales growth deal. Aberystwyth has great expertise in that area, so it would be good to see any proposals from the Government to encourage that development.
Rwyf yn ddiolchgar am y pwynt sydd wedi ei wneud a byddwn yn gobeithio y bydd Prifysgol Aberystwyth a phartneriaid lleol yn dod at ei gilydd er mwyn defnyddio’r arbenigedd lleol i dyfu’r economi a denu mwy o fuddsoddiad. Mae hynny’n swnio’n syniad cyffrous iawn o ran y fargen i dyfu’r economi.
Mae disgwyl i hyn fod o fudd i Gymru mewn sawl ffordd. Bydd yn cryfhau Cymru o ran ymchwil ac arloesi ac yn rhoi hwb i gysylltedd 5G ar gyfer busnesau bach a chanolig hanfodol Cymru. Fe gyhoeddwyd hefyd y bydd cronfa her yn cael ei sefydlu i drawsnewid y diwydiannau adeiladu, amaethyddiaeth a chynhyrchiant. Fel rhan o’n cynllun i hybu arloesi, rydym wedi ymrwymo i wario £2.3 biliwn ychwanegol ar ymchwil a datblygu ledled y Deyrnas Unedig, yn ogystal ag £21 miliwn pellach i ehangu Tech Nation dros y pedair mlynedd nesaf. Mae disgwyl i fusnesau digidol gael budd o’r ganolfan Tech Nation yng Nghaerdydd.
Rydym hefyd yn edrych ymlaen at ddatblygu cyfleoedd twf trawsffiniol ymhellach. Mae hyn i’w weld yn fwyaf amlwg yn ein hymrwymiad i ddiddymu tollau’r bont Hafren erbyn diwedd y flwyddyn, fel y soniais gynt. Mae hyn yn rhoi neges bwerus i fusnesau, cymudwyr a thwristiaid bod Cymru ar agor i fusnes. Bydd y polisi yn cryfhau'r cysylltiadau rhwng cymunedau ac yn helpu i drawsnewid rhagolygon economaidd de Cymru a de-orllewin Lloegr, gan greu coridor twf sy’n ymestyn o Geredigion, yr holl ffordd trwy Abertawe, Caerdydd a Chasnewydd i Fryste, Caerfaddon a thu hwnt. Bydd yr ymrwymiad hwn yn arbed tua £115 y mis i gymudwyr sydd yn teithio bob dydd. Ni fydd rhaid i gludwyr dalu £20 am bob lori sy’n cludo nwyddau chwaith. Bydd hwn yn newid mawr i’r tirlun economaidd ac yn cynnig cyfleoedd newydd i dde Cymru.
Bythefnos yn ôl, bum yn cynnal uwchgynhadledd yn y Celtic Manor yng Nghasnewydd, lle daeth partneriaid lleol at ei gilydd i drafod y cyfleoedd a fyddai’n dod yn sgil diddymu'r tollau. Roedd y digwyddiad yn llwyddiant ysgubol: daeth dros 350 o fusnesau a ffigyrau amlwg o Gymru a de orllewin Lloegr at ei gilydd i drafod ac ystyried y cyfleoedd newydd. Roedd 90% o’r rhai a oedd yn bresennol yn teimlo y byddai diddymu’r tollau yn rhoi hwb i'w busnes, ac roedd 97% yn teimlo y byddai diddymu’r tollau o fudd i Gymru. Mae hyn yn ddechrau partneriaeth gyffrous a hir-dymor ymysg diwydiant, academia, cymdeithas sifil a busnes. Gyda’n gilydd gallwn chwarae rhan allweddol yn y gwaith o hybu cynhyrchiant a ffyniant ledled y Deyrnas Unedig, lle bod Cymru i gyd yn elwa.
Roedd y Gyllideb hefyd yn amlinellu amrywiaeth o bolisïau ar gyfer y Deyrnas Unedig gyfan a fydd o fudd i Gymru. Rydym yn rhewi'r dreth danwydd am yr wythfed flwyddyn yn olynol, gan arbed bron i £9 i’r gyrrwr cyffredin yng Nghymru pan fydd yn llenwi ei gar. Rydym yn codi'r cyflog byw cenedlaethol, a fydd yn rhoi £600 o godiad cyflog blynyddol i weithwyr llawn-amser yng Nghymru. Rydym yn cynyddu lwfansau personol, bydd o fudd i fwy na 1.4 miliwn o bobl yng Nghymru. Bydd elusennau ledled Cymru yn elwa o dros £660,000 o gyllid LIBOR, gan gynnwys Gofal a Thrwsio Gogledd Ddwyrain Cymru, sy'n rhoi cyfleoedd gwaith a hyfforddiant i gyn-filwyr.
Mae Cymru mewn sefyllfa dda i fanteisio ar y cyfleoedd a ddaw yn sgil gadael yr Undeb Ewropeaidd. Cymru oedd y wlad wnaeth dyfu gyflymaf yn y Deyrnas Unedig yn 2016 a Chaerdydd oedd y brifddinas wnaeth dyfu gyflymaf. Ers y refferendwm, mae cwmnïau wedi dangos hyder yng Nghymru trwy fuddsoddi ynddi. Yn 2016-17, cafodd dros 2,500 o swyddi newydd eu creu trwy 85 o brosiectau yng Nghymru, o ganlyniad i fuddsoddiad mewnol.
(Translation): I am grateful for that point. I hope that Aberystwyth University and local partners will come together to use the expertise available locally, to grow the economy and to attract further investment. That sounds like a very exciting idea for the growth deal.
It is expected that Wales will benefit in many ways. Wales’s research and innovation will be boosted, as well as 5G connectivity for Wales’s vital small and medium enterprises. It was also announced that an innovation fund will be established to drive agriculture and productivity. As part of our innovation drive, we have committed to spend an additional £2.3 billion on UK-wide R&D, in addition to £21 million to expand Tech Nation over the next four years. Digital businesses in Wales are set to benefit from the Tech Nation hub based in Cardiff.
We look forward to further developing cross-border growth opportunities. That is most obvious in our commitment to abolish the Severn tolls by the end of the year, which I mentioned earlier. That sends a powerful message to businesses, commuters and tourists that Wales is open for business. This policy will strengthen the links between communities and help to transform the joint economic prospects of south Wales and the south-west of England, creating a growth corridor that stretches from Ceredigion through Swansea, Cardiff and Newport, to Bristol, Bath and further afield. This commitment will save the average commuter about £115 a month, and hauliers will no longer pay £20 for every truck transporting goods. It will make a profound change to the economic landscape and will offer new opportunities for south Wales.
Two weeks ago, I hosted a summit at Celtic Manor in Newport, which brought together local partners to discuss the opportunities arising from the abolition of the tolls. The event was a remarkable success. It was attended by more than 350 businesses and leading figures in Wales and the south-west of England, who all came together to discuss and consider the new developments. Some 90% of the attendees felt that their businesses will be boosted by the abolition of the Severn tolls, and 97% felt that the removal of the tolls will benefit Wales. It was the start of an exciting long-term partnership with industry, academia, civil society and business. Together, we can play a key role in driving productivity and prosperity across the whole of the UK, and all of Wales will benefit.
The Budget also outlined a range of UK-wide policies that will benefit Wales. We are freezing fuel duty for the eighth successive year, and the average driver in Wales will save nearly £9 every time they fill up their car. We are increasing the national living wage, which will deliver a £600 annual pay rise to full-time workers in Wales. We are increasing the personal allowance, which will benefit more than 1.4 million people in Wales. Charities across Wales—including Care & Repair North East Wales Ltd, which supports training and employment opportunities for veterans—will benefit from more than £660,000 of LIBOR funding.
Wales is well placed to seize the opportunities presented by exiting the EU. In 2016, Wales was the fastest-growing nation in the UK, and Cardiff was the fastest-growing capital city. Since the referendum, companies have shown their confidence by investing in Wales. In 2016-17, more than 2,000 new jobs were created through 85 projects in Wales as a result of inward investment.
Does the Secretary of State agree that business confidence would be increased massively if businesses had some sort of idea of what the Government are trying to negotiate in the Brexit negotiations?
The hon. Gentleman will recognise that we are in negotiations, and he would not expect us to show our hand during that process. I would point to the significant inward investment—the UK is the leading place for attracting inward investment in Europe, which demonstrates the confidence business is showing in the economy—and the uplift in economic growth last quarter.
More than 60% of Welsh trade goes to the EU. The 48% of people who voted to remain are in favour of the customs union and the single market, as are a portion of the people who voted to leave. Given that the majority of Welsh people are in favour of being in the customs union and the single market, will the Secretary of State fight for a soft Brexit?
It is far too simplistic to say that 60% of Welsh exports go to Europe, because supply chains are far more complex than that. The Welsh Government concluded that 80% of Welsh exports go to the rest of the United Kingdom, which demonstrates the complexity of the position. Therefore, maintaining the integrity of the single market is important.
In relation to the Secretary of State’s point about inward investment and jobs, one of the areas that is not growing is the car industry at the Ford plant in Bridgend, due to Jaguar Land Rover’s ending its contract early. One of the real concerns is that that is not linked to Brexit; it is about commercial decisions that I accept Ford has to make. It puts significant numbers of jobs at risk for people in my constituency. If we are not in a customs union, trade tariffs on car production could risk closing Ford. That is not scaremongering, before the Secretary of State accuses me of that; it is a real issue, which Ford is raising at the highest levels of Government in the UK, including the Welsh Government.
In the first instance, that is factually inaccurate. The contract is not being ended early; it was the natural end of the contract. I am sure the hon. Gentleman will be pleased that the Welsh Government and the UK Government are working together closely. Just over a week ago, I met the Assembly Cabinet Secretary for Finance to discuss how we can continue to work together and where officials can be part of a joint taskforce. That measure was requested and supported by the trade unions, and I was keen to respond positively to it.
The Aston Martin investment is just a short distance away, and that demonstrates the confidence that the industry has in the south Wales economy, with 700 jobs from one project, as well as the greater opportunities for the future that have been created. We take Ford very seriously, which is why we continue to work together with the unions, the Welsh Government and the UK Government, as well as Ford, to seek a positive outcome.
Mae’r ffigyrau hyn yn dangos bod Cymru’n parhau i fod yn gyrchfan atyniadol ar gyfer buddsoddiad tramor, gan roi hwb gwerthfawr i’r economi a chreu miloedd o swyddi.
Erbyn hyn, mae gan ein gwlad lwyfan aruthrol i adeiladu arno dros y misoedd nesaf wrth inni wneud cynlluniau i adael yr Undeb Ewropeaidd, creu cysylltiadau cryfach gyda phartneriaid rhyngwladol a denu mwy o fuddsoddiad o farchnadoedd sy’n dod i’r amlwg.
Mae’r Gyllideb hon yn amlinellu pecyn grymus o fesurau a fydd yn helpu i lunio economi Cymru fel ei fod yn addas ar gyfer y dyfodol.
(Translation) These figures demonstrate that Wales remains an attractive destination for overseas investment, and that provides a valuable boost for the economy and creates thousands of jobs. Our country now has a tremendous platform to build on over the coming months as we make plans to leave the EU, and to forge stronger relations with international partners and attract more investment from emerging markets. This Budget outlines a powerful package of measures that will help to shape Wales’s economy into one that is fit for the future.