Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 26th June 2019 Commons Chamber

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

1. What recent assessment he has made of the potential effect on manufacturing in Wales of the UK leaving the EU without a deal.

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

The manufacturing sector is of vital importance to the Welsh economy. The UK’s modern industrial strategy plays a key part in supporting industry. We want to get a deal with the European Union to give a smooth and orderly exit.

[Stephen Doughty]

The Secretary of State says that he wants to get a deal, yet he is backing a candidate for the Conservative leadership who advocates no deal. With the news from Ford, Airbus, Honda and Nissan, and from so much of Welsh manufacturing industry and the steel industry, how on earth can he, as Secretary of State, justify that position? Or is he simply trying to keep his job?

[Alun Cairns]

The hon. Gentleman is highly selective in what he cites. If he heeds the calls of some of the employers he mentioned, he will know that they supported the deal that came before Parliament and urged him to vote for a deal. By definition, his voting against the deal made no deal far more likely.

[Bob Blackman (Harrow East) (Con)]

Does my right hon. Friend agree that the opportunities for manufacturing in Wales when we leave the European Union will be to supply the rest of the United Kingdom with goods and services?

[Alun Cairns]

My hon. Friend is absolutely right. Manufacturing in Wales is more productive than the UK average, so is well placed to take the new opportunities both in the UK and globally that will arise as a result of our leaving the European Union. Like both leadership candidates, I would prefer to have a deal than not to have one.

[Hywel Williams (Arfon) (PC)]

How many Welsh exporting manufacturers are moving workers to the EU27 to set up front offices, distribution centres and so forth, and what help are the Government giving them to export Welsh jobs?

[Alun Cairns]

I am grateful to the hon. Gentleman for providing me with the opportunity to highlight the Welsh economy’s export record. Exports are now at £17.7 billion—that is a 7.5% increase, which highlights how the Welsh economy is exporting strongly and at record levels.

[Jeremy Lefroy (Stafford) (Con)]

As someone who started his working life at Ford in Bridgend, may I ask the Secretary of State what he is doing to ensure that high-quality, high-value manufacturing jobs are going to continue at that excellent site, which has such good rail and road connections?

[Alun Cairns]

I am grateful to my hon. Friend; with his local knowledge, having worked at the plant, he truly understands the value of the skills that the people there bring. Those skills are a real incentive to attract further investment. Along with the Welsh Government, we have set up a joint taskforce that will be led by Richard Parry-Jones, an industry expert who is best placed to make recommendations to the Government. We look forward to receiving that report shortly.

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

Given the almost daily news of business closures in Wales as a result of Brexit uncertainty, and the real prospect of no deal, how can the Secretary of State justify his support for a candidate to be Prime Minister who is prepared to sacrifice thousands of manufacturing jobs in Wales to further his own personal ambition? Does the Secretary of State think it is a “do or die” Brexit?

[Alun Cairns]

I am disappointed that the hon. Lady looks to undermine the Welsh economy. She needs to recognise that unemployment is at record low levels, economic activity is at record high levels, exports are growing and manufacturing is prospering. When it comes to Brexit, she also needs to recognise that when she voted against the deal on 29 March, she was the one who increased the prospect of no deal.

[Christina Rees]

The last thing I would do is undermine Wales. I am proud of my country and I am proud to have represented Wales many times. When you pull on that red jersey, Mr Speaker, there is nothing like it.

I will try again: given the Secretary of State’s apparent support for a no-deal Brexit as a price worth paying to keep his own job, what can he possibly say to people in Wales who stand to lose their manufacturing jobs as a result of his Government’s catastrophic mishandling of the Brexit negotiations?

[Alun Cairns]

I highlight the fact that manufacturing is doing well in the Welsh economy, with 12,000 more manufacturing jobs in the economy now than there were in 2010. There are now 4,000 more manufacturing jobs in the Welsh economy than there were last year. Manufacturing employers would like to see a deal with the European Union; perhaps the hon. Lady should explain why she has voted against a deal with the European Union. Furthermore, she needs to explain why she is rejecting the will of the Welsh people, who voted in stronger numbers than the UK average to leave the European Union.

[Geraint Davies (Swansea West) (Lab/Co-op)]

2. What recent assessment he has made of the potential effect on the Welsh economy of the withdrawal agreement on the future relationship between the UK and the EU.

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

The Government are clear that the best outcome for Wales and the Welsh economy is that the UK leaves the European Union in an orderly manner with a deal. That is why I voted for one on three separate occasions.

[Geraint Davies]

The Secretary of State knows that, if we stay within the EU, British people will get a 20% uplift in structural funding to £440 per person. Will he ensure that, in the event of our leaving with a deal, that money is sustained completely with a new UK prosperity fund? If we have a no-deal outcome, there will, quite simply, be no structural funding and we will hit a cliff edge, and more firms like Tata, Airbus and Ford will leave on his watch.

[Alun Cairns]

I do not recognise any of the hon. Gentleman’s comments. Let me ask him this one question: does he recognise that Swansea voted to leave the European Union in higher numbers than the national average, and, if so, why does he reject the will of his constituents?

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Many Welsh businesses will be able to cope with a no-deal Brexit, but one sector that the Secretary of State and I know will not be able to cope is sheep farming. Will he confirm whether he has had any discussions with the Secretary of State for Environment, Food and Rural Affairs about an income protection measure or a compensation package for hill farmers when their industry gets decimated under a no-deal Brexit?

[Alun Cairns]

My right hon. Friend makes an extremely important point and highlights the importance of the agriculture sector, specifically sheep farming, to the Welsh economy. Clearly, it is our will to protect that sector in every possible way that we can, but the best way to protect it is to get a deal with the European Union. I have voted on three separate occasions for the deal. I think that Opposition Members need to explain why they have voted against a deal, because, by definition, that creates a higher chance of our leaving the European Union without a deal. They would need to explain that to their constituents.

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

12. Yesterday, I met a managing director of a local manufacturing company who imports most of his goods through ports. He is stockpiling raw material at the moment, which is affecting his cash flow and his future plans. The Secretary of State went to Holyhead in April and spoke about the importance of ports, saying that we needed a deal. Now he has said recently that we need to prepare for no deal. I must tell him that his comments have deeply concerned that chief executive officer. If we do end up with a no deal, what would he say to him?

[Alun Cairns]

I want a deal with the European Union. I have voted for a deal with the European Union on three separate occasions. I suspect that the employer to whom the hon. Gentleman has spoken would have supported a deal with the European Union. Perhaps he should have explained why he voted against that, because that has clearly increased the uncertainty, which is not good for anyone. He needs to look at himself and his colleagues and consider why they voted to block the deal.

[Glyn Davies (Montgomeryshire) (Con)]

Along with the Secretary of State, I supported the withdrawal agreement the three times it came before Parliament because of the impact that it will have on my constituency, and particularly on the sheep farming industry. Will the Secretary of State go to the Royal Welsh show and explain to the farming unions that he, I and both of the candidates who might be Prime Minister are very supportive of reaching a deal with the European Union that will protect the future of my constituency and the sheep farming industry in particular?

[Alun Cairns]

I pay tribute to my hon. Friend for his strong record in this area. Yes, I am looking forward to my visit to the Royal Welsh show. That will give me an opportunity to continue my ongoing proactive dialogue with the agriculture sector and with the farming unions in particular. I have spoken to both leadership candidates, and both recognise the importance of agriculture to the UK economy and the significance of the agriculture sector in Wales. They believe that it is best to leave the European Union with a deal, but will take positive steps to protect those industries in the absence of a deal.

[John Mc Nally (Falkirk) (SNP)]

14. Brexit has serious implications for Welsh farmers, with an average of 80% of a farmer’s income in Wales coming from direct payments received through the EU’s common agricultural policy. The Secretary of State is backing a contender for Prime Minister who, during the referendum campaign, promised farmers that their subsidies would remain as they are after Brexit. Can the Secretary of State give a guarantee that the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) will not pursue any Brexit policy that harms the lives and the livelihoods of farmers and that impacts on agriculture?

[Alun Cairns]

I am excited about our prospects outside the European Union—clearly having had the privilege of travelling internationally. A deal on beef exports was agreed last week between China and the UK, and we continue our dialogues in relation to other products and foodstuffs. That demonstrates the markets that are available. The hon. Gentleman is absolutely right that it is better to get a deal with the European Union, because that would give us a smooth and orderly exit, but if he will continually vote against the deal with the European Union, by definition he will increase the chances of a no deal.

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

The Secretary of State is easy about a no-deal Brexit, which threatens to create a perfect storm for sheep farmers in Wales—and his Government are going to have to own it. Tariffs of 46% are set to kick in on 31 October, to coincide exactly with the season when mountain lambs come to market for export. There is a mart in Bala on 31 October. Will he join me there and tell farmers to their face why the value of their lambs has gone through the floor?

[Alun Cairns]

I remind the right hon. Lady that farming unions in Wales strongly supported the deal agreed by the Prime Minister and the European Commission. Would she stand at their mart, look them in the eye and tell them that she voted against their wishes and for a no-deal position? That is exactly what she did on three separate occasions.

[Liz Saville Roberts]

So that is the Secretary of State failing to take responsibility, then. He talks up the threadbare benefits of his insular Union while denigrating the real rewards of the European Union. The majority of Tory party members would sacrifice the United Kingdom for Brexit. Will he therefore tell me which is closest to his heart—his beloved Brexit, on which his career depends, or his precious Union?

[Alun Cairns]

There is no doubt that Wales prospers fantastically through being part of the United Kingdom, and there are great opportunities for the United Kingdom outside the European Union. I want to maintain a very close trading relationship with the European Union, which is why I would strongly prefer to have a deal. As a passionate Welsh lady, the right hon. Lady will recognise that Wales voted to leave the European Union. We are trying to honour the outcome of the referendum and maintain a close trading relationship so that farmers, manufacturers and service providers in Wales can continue to trade with the European Union and globally.

[Liz McInnes (Heywood and Middleton) (Lab)]

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

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[Tom Pursglove (Corby) (Con)]

6. What recent steps the Government have taken to support steel producers in Wales.

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

The Government are extremely supportive of the Welsh steel sector. Since the European Commission blocked the Thyssenkrupp joint venture, I have met unions and management to discuss the challenges and opportunities.

[Tom Pursglove]

As well as the success of the industrial strategy in supporting UK steel making, and the adoption of the new UK steel charter, what more can we do to support and promote the whole UK steel supply chain through the GREAT Britain campaign?

[Alun Cairns]

I again pay tribute to my hon. Friend for his role in supporting the steel sector in Corby. He will be well aware that five major steel producers have come together on this. In addition, the Government are supporting a sustained manufacturing hub led by Swansea University that will not only be of direct benefit to the steel industry in Wales but will have a significant impact on the steel sector in his constituency. That demonstrates the great strength of the industrial strategy.

[Jessica Morden (Newport East) (Lab)]

Tata’s Cogent Power in my constituency has huge potential to develop electrical steel in the automotive industry and electrification, but it needs Government support to help to develop the supply chain, which I wrote to the Secretary of State about recently. Will he come and see for himself by visiting the Orb plant?

[Alun Cairns]

I would be happy to support the hon. Lady and Orb in Newport. It is an important site that employs 350 people. As the manufacturing sector is doing well in Wales, I think there is a great future for the plant.

[Karin Smyth (Bristol South) (Lab)]

7. With reference to the closure of the Ford plant in Bridgend, what assessment he has made of the strength of the Welsh economy.

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

I am extremely disappointed with Ford’s intention to close its Bridgend plant in 2020. However, this bad news is not a reflection of the Welsh economy as a whole.

[Karin Smyth]

No wonder the Secretary of State does not want to answer the question, because the Government are being totally complacent. I have no doubt that the closure of the Ford plant in Bridgend will have huge consequences along the M4 corridor, damaging our economy, including in Bristol South. Just when will we see the start of any kind of industrial strategy? Right now, with continued closures and the impact of this closure on the supply chain, we are going backward, not forward, and that damages the economy in Bristol South.

[Alun Cairns]

The manufacturing sector is extremely important to the UK economy and Wales specifically. There are 4,000 more manufacturing jobs in the Welsh economy now than there were this time last year, but that is not to undermine the importance of those Ford jobs. The Welsh Government and I are working closely together. We have commissioned Richard Parry-Jones to come up with recommendations on how we can best promote the plant, but I am encouraged by the early discussions we have had with potential investors. Some of those discussions are more mature than others, but the hon. Lady should recognise that they are private and confidential at this stage.

[James Gray (North Wiltshire) (Con)]

I join the Secretary of State and the hon. Member for Bristol South (Karin Smyth) in their deep disappointment at the closure of the Ford factory in Bridgend. Does he agree that there is huge potential on the M4 corridor for the development of electric cars and automotive technology of all kinds, right down as far as my constituency in Wiltshire?

[Alun Cairns]

My hon. Friend makes an extremely important point. The UK’s industrial strategy has invested £1.5 billion in automotive research and development, to ensure that we maximise the opportunities of the shift from petrol and diesel engines to electric vehicles. A great demonstration of the success of that is that 20% of electric vehicles sold in Europe are manufactured here in the UK.

[Ann Clwyd (Cynon Valley) (Lab)]

8. What recent assessment he has made of the potential merits of redeveloping the former Phurnacite works in Abercwmboi; and if he will make a statement.

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

I pay tribute to the right hon. Lady for the proactive approach she is taking to redeveloping this site, which has been an outstanding issue for decades. I was pleased that we were able to bring together the current owners of the site with her to come up with a positive plan for the future.

[Ann Clwyd]

I thank the Secretary of State for coming to the area and knocking heads together in a way that we have waited for for 30 years. The people of Abercwmboi have lived in dirt and dust on the site of what was the worst industrial polluter in the whole of Britain. I am grateful for the interest he has taken and the way he has managed to knock heads together.

[Alun Cairns]

I pay tribute to the right hon. Lady, who has highlighted this issue for some time. I am keen to work closely with her to bring the landowners together and see what plans can be made. The local authority is playing a key part. We need to establish a clear plan of action, and we are well on our way to delivering that.

[Ben Lake (Ceredigion) (PC)]

11. What recent discussions he has had with (a) businesses, (b) local authorities and (c) representative groups on the mid-Wales growth deal.