Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 23rd January 2019 Commons Chamber

[Hywel Williams (Arfon) (PC)]

13. What assessment he has made of the potential effect on Wales of the EU withdrawal agreement.

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

With your permission, Mr Speaker, before I answer the questions, may I say that I am sure the House will want to join me in paying tribute and respect to Assembly Member Steffan Lewis, who sadly died just over a week ago? He was a bright and dedicated politician who had an exceptional future in front of him, with so much to offer Wales. My prayers and thoughts are with his wife, Shona, and son, Celyn, at this most difficult time.

I can update the House that the UK air accidents investigation branch is working with the relevant rescue and transportation authorities in relation to Emiliano Sala and the pilot who went missing on Monday evening. I am sure that the whole House wishes to join me in hoping for a positive outcome.

The Government are working to identify the broadest possible consensus on a way forward so that we leave the European Union in a smooth and orderly manner. We are engaging with Members on both sides of the House and with representatives of business groups, civil society, trade unions and others.

[Angela Crawley]

A recent report by The UK in a Changing Europe has found that almost half of all respondents oppose the Prime Minister’s deal, with only 23% in support. How can the Secretary of State reconcile his position of being Wales’s champion in Westminster when this place is working contrary to Welsh public opinion?

[Alun Cairns]

In the first instance, I remind the hon. Lady that Wales voted to leave the European Union in even stronger numbers than the rest of the United Kingdom. The withdrawal agreement sets out the basis on which, and how, we will leave the European Union. In the light of last week’s votes, we are determined to make amendments and to develop a document in consultation with colleagues across the House in order to win the House of Commons’ support.

[Chris Elmore]

May I associate myself with the Secretary of State’s comments about Steffan Lewis? He and I worked together as young researchers in the National Assembly for Wales. We must remember the words of our colleague Jo Cox that we do have a lot more in common across this House and across the devolved institutions.

Will the Secretary of State simply rule out now, and make representations to the Prime Minister to rule out, no deal, so that the automotive industry in Bridgend—Ford in Bridgend employs many of my constituents—can have certainty beyond March? This continuing planning for no deal is providing no certainty to anybody.

[Alun Cairns]

I would say to the hon. Gentleman that the best way of avoiding no deal is obviously to get a deal. It was interesting that the hon. Gentleman voted against the deal last week. We will continue to engage across the House and with the devolved Administrations, and we are optimistic that we will continue to make amendments to the document that will gain a deal with the European Union.

[Hywel Williams]

In an excellent briefing on the 9th, organised by the Secretary of State for Northern Ireland, on the effects of leaving the European Union on businesses in Northern Ireland, I was told the slightly unknown fact that 40% of Northern Ireland perishable food exports come through Holyhead. This fact was not known to the people I met then, and is perhaps not known to other Members of this House. What assessment has the Secretary of State made of the impact of a no deal on the supply chains that sustain the exports of such foods through the port of Holyhead, and will he confirm what steps he is taking personally to mitigate that impact?

[Alun Cairns]

The hon. Gentleman makes an important point about the port of Holyhead. It is the second busiest port in the UK during the summer months, but of course all year round it is pretty critical to the supply chain, particularly for foodstuffs that come from both Northern Ireland and the Republic of Ireland. A ports working group has been in place for quite some time—it involves the UK Government, the Welsh Government and the relevant UK Government agencies—to plan for a deal, and also to plan for no deal, as a responsible Government would do.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Does my right hon. Friend agree that voters in Wales will not forgive this place if we fail to respect the outcome of the 2016 referendum, and that businesses in Wales will not forgive us if we create a set of circumstances that makes their job of creating jobs in Wales even harder? Given those two imperatives, does my right hon. Friend agree that actually passing a withdrawal agreement—passing a deal—is absolutely essential now?

[Alun Cairns]

I am grateful to my right hon. Friend for his question. He obviously recognises the importance of gaining a deal, and I have no doubt he will play a significant part in working with the Government and influencing colleagues in understanding the opportunities and the challenges that we face. He is absolutely right: the ports in Pembrokeshire are extremely important to the Welsh economy—my right hon. Friend regularly highlights those—but he also understands the importance of agriculture and manufacturing, and why a deal is so important to those sectors, too.

[Bob Blackman (Harrow East) (Con)]

What assessment has my right hon. Friend made of the opportunities for Wales, once we leave the European Union, of more jobs and investment, and also of the potential for Wales to boom, as opposed to the doom and gloom of the Labour party?

[Alun Cairns]

I am grateful to my hon. Friend for raising that question. He will be well aware that, in the past quarter, the UK economy was growing faster than the eurozone economy—the UK grew by 0.6% while the German and Italian economies went into decline. That highlights some of the opportunities that we face but, of course, we can grasp them in the smoothest way only if we manage to get a deal with the European Union.

[Wayne David (Caerphilly) (Lab)]

Given that the Wales CBI has said that a no-deal Brexit will see a £7 billion annual fall in Welsh manufacturing output and output generally in the economy, will he, for goodness’ sake, simply admit that a no-deal Brexit will be bad for Wales? Before he responds, let me say that I do not want a Maybotic answer.

[Alun Cairns]

The hon. Gentleman will know that there are many predictions in economic forecasts, but they are forecasts rather than fact. He will have predicted a recession after the 2010 general election—he may well have even predicted a double or treble-dip recession—but I hope that he will recognise the fantastic employment data that was published yesterday showing record numbers of people in work in Wales. The inactivity rates in Wales are at staggeringly positive numbers, matching the rest of the UK for the first time since records began.

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

I echo the words of the Secretary of State with regard to Steffan Lewis and Emiliano Sala.

The Secretary of State voted for the Prime Minister’s disastrously flawed withdrawal agreement—he was one of the few, not the many. Will he explain why the Government pretend that nothing has changed, despite their suffering the biggest defeat in parliamentary history?

[Alun Cairns]

It is no secret that the House did not support the deal that was presented to it last week, but we are committed to working with colleagues across our own Benches, and across the House, to come forward with a proposal that can gather the support of the House of Commons and, obviously, to negotiate with the European Union in order to get a deal. I am sure that the hon. Lady would much prefer to see a deal and I challenge her to say whether she was comfortable being in the same Lobby as some colleagues, from all parts of the House, who would like to see no deal.

[Christina Rees]

I think that that was a Cairnsbotic answer.

Yesterday, the First Minister of Wales, Mark Drakeford, cleared Government business in the Welsh Assembly so that he and his Cabinet Ministers could make urgent statements on how a no-deal outcome would be so disastrous for the people of Wales. Will the Secretary of State tell us if he will be voting for amendments put forward in this House to avoid a no-deal outcome, or will he, like his Prime Minister, put party before country?

[Alun Cairns]

I can advise the House that the UK Government have laid 75 statutory instruments at the Assembly’s request. We have had countless meetings of the Joint Ministerial Committee and the Prime Minister has agreed to invite the First Minister to the European Union Exit and Trade (Preparedness) Sub-Committee. I hope that that demonstrates the joint work that is taking place. The hon. Lady talks about putting party interests first. I cannot understand why the First Minister of Wales is happy to meet the Prime Minister—they will be meeting later today—but the Leader of the Opposition refuses to meet her to discuss the prospect of a deal, yet seems always happy to meet the IRA.

[Jessica Morden (Newport East) (Lab)]

2. What recent discussions he has had with the Welsh Government on the design of the UK shared prosperity fund.

[Ben Lake (Ceredigion) (PC)]

6. What discussions he has had with Cabinet colleagues on the effect of the UK shared prosperity fund on Wales.

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

I have regular discussions with Cabinet colleagues and Welsh Government Ministers on a range of issues affecting Wales, including on the UK shared prosperity fund.

[Jessica Morden]

EU structural funds have been crucial for communities across Wales, and it is vital that Wales must not be left behind—we need that assurance. Why has it taken so long to get any detail from the Government on the shared prosperity fund, not least the consultation, which was promised by the Government before Christmas?

[Alun Cairns]

I agree that the UK shared prosperity fund will be extremely important to all parts of the UK. My specific interest is protecting Welsh interests in the development of that policy. On 14 January, I spoke to the Welsh Government’s Brexit Minister, Jeremy Miles, to update him on the latest stages of the plans for consultation, and I also committed to sharing that with him before we formally consult. Of course we want to engage with a whole load of stakeholders. There is widespread recognition that the current structure does not work, and we have an opportunity to get it right.

[Ben Lake]

Between 2014 and 2020, Wales will have received £2.4 billion in structural funding, or over 20% of the total UK allocation of EU funds. Will the UK Government ensure that Wales continues to receive at least an equivalent share of funding from the shared prosperity fund?

[Alun Cairns]

I am grateful to the hon. Gentleman for his question, in which he highlights some of the most recent data. The complete data on the period since European structural funding was introduced show that more than £4 billion has been spent over 17 years, but I am sure he agrees that we have not always got the best value out of that investment—there are several audit reports to that effect. Of course, any quantum of the UK shared prosperity fund is a matter reserved for my right hon. Friend the Chancellor during the comprehensive spending review.

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

Given the not unreasonable concern in north Wales about Hitachi’s decision to suspend development of Wylfa B, is my right hon. Friend willing to meet representatives of the North Wales Economic Ambition Board to discuss ways in which the shared prosperity fund may be used to support the regional economy?

[Alun Cairns]

I pay tribute to my right hon. Friend’s work in securing Hitachi’s interest in Wylfa when RWE and E.ON withdrew their interest from the project. Although last week’s decision is disappointing, our focus is on maintaining momentum towards the development consent. Of course I am happy to meet the board and my right hon. Friend to discuss how we can best use influences such as the shared prosperity fund and the north Wales growth deal. We will happily keep an open mind, but these matters are project-led, and the strength of resource depends on the quality of the project.

[Stephen Kerr (Stirling) (Con)]

The UK shared prosperity fund should be just that—a UK-wide fund. What discussions have my right hon. Friend and the Secretary of State for Scotland had with the Treasury to ensure that the UK Government have a positive impact on the lives of the people of Wales and Scotland?

[Alun Cairns]

My hon. Friend has highlighted inefficiencies in the current proposal, and there is a range of options for how we can best work on those. We are going out to consultation very soon. We have cross-Government discussions and consideration of this subject, but I do not want to pre-empt the consultation. I encourage my hon. Friend to engage with me, the Secretary of State for Scotland and the Treasury.

[Susan Elan Jones (Clwyd South) (Lab)]

In the late 1990s, the Secretary of State’s party was voting against the existence of the National Assembly. In 2005, it had a manifesto option of abolishing the Assembly. Can he understand why many Opposition Members do not believe that he truly wants to involve our National Assembly for Wales in the governance of the UK shared prosperity fund?

[Alun Cairns]

That question is a bit rich coming from the hon. Lady, given that her party’s Government left us with the famous legislative consent order motions, which meant that the Welsh Government could not even pass primary legislation in certain areas without Parliament’s explicit control. I point to the Wales Acts 2014 and 2017 and to the referendum, which extended the powers of the Welsh Assembly, as well as countless Joint Ministerial Committee meetings and this afternoon’s meeting between the Prime Minister and the First Minister to discuss how best to manage Brexit.

[Ruth George (High Peak) (Lab)]

3. What assessment he has made of the effect on low-income families of the roll-out of universal credit in Wales.

--- Later in debate ---

[Kevin Foster (Torbay) (Con)]

4. What assessment he has made of the effect on the economy of Wales of removing the tolls from the Severn bridges.

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

The removal of the tolls from the Severn river crossings will drive the biggest economic stimulus Wales has seen in decades, putting over £1,400 a year back into the pockets of hard-working motorists and boosting the south Wales economy alone by £100 million.

[Kevin Foster]

I am delighted to hear that positive assessment from my right hon. Friend of the impact of removing the tolls, which add a significant cost to doing business between the south-west of England and Wales. Will he advise on what discussions he is having to exploit this opportunity by identifying any job-creating developments this might inspire on the M4/M5 corridor?

[Alun Cairns]

I pay tribute to my hon. Friend for his work in this area to encourage closer working between this super-region that is being developed. The great western powerhouse allows the south-west of England and south Wales to market themselves jointly to start competing with the northern powerhouse and the midlands engine. I know that he has a strong interest in the M5 and the business around it. I obviously have a strong interest in the M4, and together we will attract more investment.

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

May I begin by associating myself with the comments that the Secretary of State made about Steffan Lewis? As his local MP, I always admired and respected him, and his passion for Wales will be greatly missed within the Assembly. It is a loss to Welsh political life.

The closing of the tolls at the M4 bridge creates massive opportunities. What discussions has the Secretary of State had with other Government Departments to bring regional offices and Government jobs to Wales?

[Alun Cairns]

I am grateful to the hon. Gentleman for such a question. A number of discussions are going on across Government Departments about the drive to decentralise civil service opportunities from London. He will be aware of the Cardiff hub, and we are looking to where other opportunities exist. But abolishing the Severn tolls has also created challenges. We need better integration for projects such as the Chepstow bypass and other road projects that work cross-border, and we need to harness those as priorities.

[Mark Tami (Alyn and Deeside) (Lab)]

7. What recent assessment he has made of the strength of the Welsh economy.

--- Later in debate ---

[Anna McMorrin (Cardiff North) (Lab)]

10. What assessment he has made of the potential effect on (a) the economy and (b) public services in Wales of the UK leaving the EU without a deal.

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

As we leave the European Union, our economy is growing faster than the eurozone, employment is at record high levels, and economic activity in Wales is at the highest level since records began.

[Anna McMorrin]

May I associate myself with the Minister’s comments on Steffan Lewis, who was one of the most able and talented politicians that Wales has ever had?

With days to go until we crash out with no deal, we know the devastating impact. The CBI is warning us, the Army is on stand-by to slaughter lambs set for export, and the Government are refusing to rule out no deal. What does the Minister say about that, given that the Prime Minister is not going to get her deal through?

[Alun Cairns]

My right hon. Friend the Prime Minister has set out our position and is determined to work not only on our side of the House but across the House to introduce proposals that will allow the House of Commons to support a deal. It is interesting that the Welsh First Minister, Mark Drakeford, is prepared to meet her to discuss the proposals, but the Leader of the Opposition refuses to do so, in spite of being more than happy to meet the IRA on other occasions.

[Several hon. Members rose—]