Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 15th May 2019 Commons Chamber

[Jeff Smith (Manchester, Withington) (Lab)]

3. What recent assessment he has made of the effect on the Welsh economy of the proposed withdrawal agreement with the EU.

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

The withdrawal agreement means we can leave the European Union with a deal that honours the referendum result, protects our economy and security and safeguards our Union. The best outcome for Wales and the Welsh economy is for the UK to leave the European Union in a smooth and orderly way.

[Jeff Smith]

What assessment has the Secretary of State made of the impact of non-tariff barriers? They would result in customs procedures and technical barriers to trade, meaning delays and costs that would be particularly damaging to the Welsh economy.

[Alun Cairns]

The hon. Gentleman makes an important point that further underlines why the deal we have negotiated with the European Union will work in the interests of Welsh manufacturers, Welsh agriculture and other sectors across the whole UK. The political declaration says “as frictionless as possible,” which is the objective we want to achieve.

[Glyn Davies (Montgomeryshire) (Con)]

The economy of Montgomeryshire is very dependent on the sheepmeat industry. Does the Secretary of State accept that retaining tariff-free access to the EU market is crucial to the future of all of rural Wales where sheepmeat is important? Will he do everything he can, alongside me and many others, to ensure that the withdrawal agreement is passed when it returns to the House?

[Alun Cairns]

My hon. Friend speaks with great authority and expertise, and he has been an extremely strong advocate for rural Wales in all the roles he has conducted, be it on the Development Board for Rural Wales, as an Assembly Member or, now, as a Member of Parliament. He is right about the withdrawal agreement and the support it has received both from the Welsh farming unions and from farmers directly because it will give them access to the European market and will allow them the freedoms that being an independent trading nation delivers, as well as stopping freedom of movement.

[Nick Smith (Blaenau Gwent) (Lab)]

Some 12,000 jobs in the Welsh economy rely on steel. Given the crisis in this sector, how will the right hon. Gentleman work with the Business Secretary to get the steel sector deal over the line?

[Alun Cairns]

I am grateful to the hon. Gentleman for raising this important point. I spoke to a director of Tata earlier this week and, along with a Minister from the Department for Business, Energy and Industrial Strategy, I will be meeting him next week. This is an important sector of the economy, not only for south Wales but for north Wales and the rest of the UK. The sector is of strategic importance, and we are determined to work to secure a steel sector deal that offers a long-term future.

[Hywel Williams (Arfon) (PC)]

Given that the Wales Office has no exclusive responsibility for any of the 300-odd work streams associated with Brexit and that we have had 20 years of devolution under a Welsh Government who have legislative and taxation powers, can the Secretary of State give the House a necessarily brief definition of his role and function?

[Alun Cairns]

The hon. Gentleman raises an interesting question. Of course the cross-Government responsibilities in which the Wales Office is active and interested go far and wide. I happily point to the crossings and the Severn toll as one example. Wales is also the only part of the UK to have a city and growth deal in every area.

[Hywel Williams]

I thank the right hon. Gentleman for that answer but, just for starters: electrification of the railway west of Cardiff, abandoned; electrification of the north Wales line, a pipe dream; the Swansea Bay tidal lagoon, cancelled; the post-Brexit shared prosperity fund, handed to an England-only Department; and, as I said, the Wales Office has no exclusive Brexit responsibilities. Is not his function just to nod through Conservative policies, whatever the cost to Wales?

[Alun Cairns]

The hon. Gentleman should be practical and realistic in what he calls for. He will be fully aware that electrification of the railway to Swansea offers no tangible benefits to passengers. He will also be aware that the Public Accounts Committee called for re-analysis of each section of the electrification, and it was on that basis that we came to the same outcome by delivering the most modern trains, which happen to be hybrid. Is he seeking to support a tidal lagoon that would be three times the cost of an alternative green provider?

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

4. What discussions he has had with (a) Cabinet colleagues and (b) Welsh Government Ministers on the effect of the industrial strategy on the Welsh economy.

[Albert Owen (Ynys Môn) (Lab)]

9. What discussions he has had with (a) Cabinet colleagues and (b) Welsh Government Ministers on the effect of the industrial strategy on the Welsh economy.

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

I have been working closely both with Cabinet colleagues and with the Welsh Government to ensure that Wales benefits from the industrial strategy. We have already delivered a number of projects in Wales, with Wales receiving £90 million from the industrial strategy challenge fund.

[Mark Tami]

What is the Secretary of State’s Department doing to ensure that the north Wales growth deal actually happens, that the Heathrow logistics hub goes to Shotton and that more Welsh small and medium-sized enterprises work with our defence companies, such as Raytheon? He needs to get a grip on his Department—we have had more junior Wales Ministers than you could wave a stick at.

[Alun Cairns]

There have been countless engagements with local authority leaders across north Wales, and the growth deal is an important project. The hon. Gentleman will be aware that, at the last Budget, we committed to funding for that scheme. It is a great example of where the Welsh Government, the UK Government and local authorities are working together. We are optimistic about signing and supporting a number of projects in the near future, but this is of course locally driven, and we are responsive to the demands and the drive of local authorities.

[Albert Owen]

The Secretary of State will be aware of the negative impact that proposed factory closures and the suspension of major projects has had on my constituency and on north-west Wales. Unemployment is already rising in my constituency, so we need an action plan. What positive steps can the industrial strategy put in place now, and what is the role of the Wales Office in delivering that action plan?

[Alun Cairns]

The hon. Gentleman points to unemployment data, but I would also point to employment rates. Identifying individual months will clearly offer one picture, but I think he would recognise the record numbers of people in work and the trend in falling unemployment, irrespective of what happened last month.

On the industrial strategy, I would point to the thermal hydraulics facility in the hon. Gentleman’s constituency, which will be world leading. That is just one tangible example, in addition to the active investments we are pursuing elsewhere in the marine environment.

[Chris Davies (Brecon and Radnorshire) (Con)]

Will my right hon. Friend update the House on any progress that has been made on the mid Wales growth deal?

[Alun Cairns]

I am grateful to my hon. Friend for the excellent work he is doing in supporting the mid Wales growth deal. The leader of Powys council was in Westminster last week, and I know she has met my hon. Friend. They have been key in co-ordinating and driving some of the themes that are developing from the deal. It is an exciting prospect, and they are working with Ceredigion council and the hon. Member for Ceredigion (Ben Lake), who has shown similar enthusiasm.

[Antoinette Sandbach (Eddisbury) (Con)]

A number of my constituents have set up companies in Cheshire that actually operate in Wales. What research and development grants have there been that benefit companies operating in Wales?

[Alun Cairns]

My hon. Friend raises an important question. I highlighted earlier the £90 million from the strength in places fund that had been made available to the UK’s industrial strategy, making Wales fourth in the UK for the value of grants it receives. That works, absolutely as my hon. Friend highlights, on a cross-border basis, and the industrial strategy deliberately talks about cross-border growth corridors.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

12. Steel is of course the foundation of any successful industrial strategy, so can the Secretary of State explain what he has done to offset the lost opportunities for Welsh steel producers such as Celsa in my constituency as a result of the loss of the Swansea Bay tidal lagoon and the electrification to Swansea? What projects has he actually secured to provide procurement opportunities to Welsh steel producers?

[Alun Cairns]

The hon. Gentleman points to prospects that the tidal lagoon may have provided, but when we analyse the data, it shows that demand from the tidal lagoon would lead to less than a month’s output of steel, so I would suggest that he really look closely at the numbers. Was he advocating supporting a project that is three times more expensive than an alternative? The steel producers in his constituency would be extremely excited to get the go-ahead for the M4 relief road around Wales. The money is available and the planning recommendations are in favour—all we need is a decision from the Welsh Government.

[Tom Pursglove (Corby) (Con)]

The UK steel industry is undoubtedly a key part of the industrial strategy, but what benefit will the strategy bring specifically for Welsh steel making, which is important for my constituency, given that coil from Port Talbot is fundamental to tube production?

[Alun Cairns]

My hon. Friend is a strong champion of the steel industry. He recognises how the investments in his constituency will also be important to the investments taking place in south Wales. There has been renewal of the blast furnaces in south Wales, and we are working hard to secure a steel sector deal. Those things will support the industry in north Wales and south Wales, as well as in Corby and elsewhere across the UK.

[Ben Lake (Ceredigion) (PC)]

Wales is ideally placed to develop pioneering renewable energy projects, especially in wave, tidal and hydro, and that could make an invaluable contribution to achieving net-zero carbon emissions. Will the Secretary of State assure us that Wales will receive sufficient support from the industrial strategy, and in particular the £2.5 billion clean growth fund, to realise its potential, and that Wales will not be left to rue missed opportunities yet again?

[Alun Cairns]

I have already pointed out that Wales is fourth out of any UK nation or region in terms of being successful in gaining grants from the industrial strategy challenge fund. Swansea University’s project for the active home is world-leading, using the latest materials to develop energy-positive properties, and just down the road from the hon. Gentleman’s constituency is Pembroke Dock marina. These are exciting areas of policy from which his constituency can develop and take opportunities.

[Owen Smith (Pontypridd) (Lab)]

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

--- Later in debate ---

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

I have regular discussions with the Welsh Government on a range of issues, including the UK shared prosperity fund. Officials have also already held useful preliminary discussions with their Welsh Government counterparts, and they will of course continue.

[Owen Smith]

A lot of people in Wales are worried that the shared prosperity fund is just a sneaky Tory plot to steal back a measure of devolution and cut our funds again. Will the Secretary of State reassure the House that that is not true? Will he start by telling us whether we will get £370 million in the first year of the shared prosperity fund?

[Alun Cairns]

Ensuring that all parts of Wales benefit from the UK shared prosperity fund is central to our approach. I hope the hon. Gentleman agrees with stakeholders throughout Wales, be they from businesses or local authorities, that there is a better way to deliver regional support than following the current model, which comes from the European Union. The hon. Gentleman seeks to tempt me to pre-empt the comprehensive spending review, which will of course talk about the quantum of the sum available.

[Mr Sweeney]

The Secretary of State will be well aware that the £1.3 billion a year from EU structural funds is vital to economies such as those in Scotland, Wales, Northern Ireland and the north of England. There is no clarity about what the replacement, the shared prosperity fund, is going to look like, and there has been no consultation whatsoever. Why has there been such a delay in the consultation, which was meant to happen last year?

[Alun Cairns]

Similarly, I hope the hon. Gentleman will recognise that there is a better way of delivering regional support. Wales has received £4 billion over 17 years. We will consult shortly, but even ahead of that formal consultation lots of preliminary work is ongoing. For example, the Welsh Government and the UK Government were recently at St Asaph, where the Welsh Government jointly presented. That demonstrates the joint work that is taking place.

[Chris Bryant]

The Government are talking about awarding the money in Wales on the basis of a competition between different local authorities and areas. Can the Secretary of State quash that rumour? All the money will inevitably end up going to middle-class areas rather than to the areas of greatest need, such as the Rhondda. What is wrong with the fundamental principle of “From each according to his or her ability, to each according to his or her need”?

[Alun Cairns]

The hon. Gentleman is pre-empting the consultation. We will of course work with local authorities, and there are different views among local authorities throughout Wales on how we deliver the UK shared prosperity fund. The hon. Gentleman’s local authority will have some frustrations as well as some successes in relation to the current European structural funds model, on which we have an opportunity to improve.

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

Will the Secretary of State confirm that the UK shared prosperity fund will mean that Wales will not lose a penny as a result of leaving the European Union? Will he also confirm that the funding could be used for projects such as the much needed Chepstow bypass?

[Alun Cairns]

The Chepstow bypass is of course a joint responsibility, but there is no doubt that my hon. Friend has campaigned vociferously for it for some time. My hon. Friend the Parliamentary Under-Secretary of State for Wales visited the area within days of becoming a Minister, to work with my hon. Friend. I am determined to do everything necessary to ensure that we can deliver on that, but of course we need the Welsh Government to act as well and highlight it as one of their priorities.

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

The shared prosperity fund represents a huge opportunity for north Wales. Will my right hon. Friend confirm that in designing the fund he will liaise closely with north Wales local authorities, and that he will urge his colleagues in the Treasury to avoid the temptation of simply passing it down to the black hole in Cardiff?

[Alun Cairns]

My right hon. Friend makes an extremely important point. We are of course already liaising with stakeholders in Wales, and with local authorities in particular. There is a range of views among local authorities on how we should deliver the UK shared prosperity fund. I do not want to pre-empt the consultation, and we will of course consider all the relevant matters. My right hon. Friend and I will want to deliver a scheme that serves all parts of Wales. That is central to our policy to ensure that every part equally can win some investment.

[Several hon. Members rose—]

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

May I welcome the new Minister, the hon. Member for Torbay (Kevin Foster), to his place and inquire whether he is on a temporary or permanent contract?

Our manifesto for the European elections states:

“Under Labour, no region or nation would lose out on funding, and power over decisions affecting investment will be taken in Scotland, Wales and in English regions.”

Will the Secretary of State tell us what his party’s European election manifesto says about EU funding in Wales post Brexit?

[Alun Cairns]

I do not need to read any manifesto because I can repeat what I and the Chancellor have said previously. We have already committed to fund any project that has been agreed before our departure from the European Union, even when the funding date falls beyond that point.

[Christina Rees]

I am still not sure whether the Secretary of State has a manifesto. If he has one, it is incredibly well hidden. I could not find it. It is as well hidden as the UK shared prosperity consultation, which should have started before Christmas—where is it? Will he commit here and now to the principle of not a penny less, not a power lost for the people of Wales, and will he do his job for once and stand up for the people of Wales?

[Alun Cairns]

I will ensure that Wales receives its fair share. Let me point to the record of the hon. Lady’s party in government and my party’s record in government. As a result of the new fair funding settlement, Wales receives £120 for every £100 spent in England, far in excess of anything that her party ever did.

[Tommy Sheppard (Edinburgh East) (SNP)]

6. What assessment the Government have made of the potential merits of devolving the administration of welfare to the Welsh Government.