Welsh Affairs
Alun Cairns Excerpts(7 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Wales (Alun Cairns)
Rwyf yn ddiolchgar i’r Pwyllgor Busnes—I am grateful to the Backbench Business Committee for recognising the importance of holding this debate on Wales near St David’s day and for allocating the time. I pay tribute to the hon. Members for Ynys Môn (Albert Owen), for Ceredigion (Mr Williams) and for Dwyfor Meirionnydd (Liz Saville Roberts) and to my hon. Friend the Member for Gower (Byron Davies) for securing the debate on this motion on behalf of Members on both sides of the House. I am grateful for the commitment and drive that has delivered this debate.
I welcome the hon. Member for Neath (Christina Rees) to the Dispatch Box, and I look forward to working closely with her in the interests of Wales and of all the people of Wales. I thank her predecessor for her robust scrutiny when she was in post.
I highlight the importance of the Union to Wales. I will cover as many points as I can, but I need to underline that the Union of the United Kingdom is the most successful political union of nations that has ever existed. It is important that we recognise the precious bond between England, Scotland, Wales and Northern Ireland. As we leave the European Union, the Union of the UK is more important than ever, and we will seek to strengthen it as the negotiations progress. We want the United Kingdom to emerge from this period of change stronger, fairer, more united and more outward-looking than ever before. We will make sure that no new barriers to living and doing business within our nations are created. That was the spirit in which the hon. Member for Ynys Môn introduced this healthy debate, and I hope it has been underlined throughout.
By being part of the Union, Wales has prospered and developed, and in turn the UK has benefited from the flow of ideas and innovation from our proud nation. Some issues relating to universities were mentioned during the debate, and the hon. Members for Ceredigion and for Cardiff Central (Jo Stevens) and others talked about the great innovation and expertise in our universities, from which the Union of the UK benefits. Organisations such as Innovate UK have a key part to play in driving innovation and capturing the expertise that exists.
North and south Wales form single economic regions with the north-west and south-west of England. After all, 50% of Wales’s population and 10% of England’s live within 25 miles of the Wales-England border.
I shall address other points later, but first, there was much focus by Members on funding. I hope we can recognise the funding settlement that was negotiated before Christmas. It puts Wales in a strong financial position as we look forward: it will receive around £120 for every equivalent £100 spent in England. That will fall, over a long period, to £115, which is the funding floor. I hope that demonstrates the positive, open relationship that we want. We want to work with the Welsh Government to secure and bind the Union in the best possible way so that we can benefit from the assets, culture and diversity of all the nations in the Union of the United Kingdom.
There is no denying that, as a Union, we are inextricably linked. Companies in Wales have access to help and support from both Governments, and we are keen to work closely with the Welsh Government to secure further inward investment, as well as to develop businesses and the industrial strategy that my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy is driving forward. He will be in Wales shortly to ensure that Welsh businesses are playing a full part in the consultation on the recent Green Paper.
There are challenges ahead as we exit the European Union, but there are also some great opportunities. We are working with the Welsh Government and discussing the process and progress in the negotiations on our exit from the EU. Reference has been made to the Joint Ministerial Committee on EU negotiations, which brings together the UK Government and the devolved Administrations to seek to develop a UK-wide approach to the challenges we face and the opportunities we can grasp as we leave the EU. At the last meeting of that Committee, the Welsh Government presented their White Paper, which sets out their priorities for our exit from the EU, and we are discussing their proposals.
As part of the discussions, my right hon. Friend the Secretary of State for Exiting the European Union met the Welsh Government Finance Minister yesterday, along with officials from my office and the Cabinet Office. We are having parallel discussions on a whole range of issues to ensure that Wales is at the heart of the discussions. We will intensify our work with the Welsh Government on all aspects of the EU ahead of, and following, the triggering of article 50. It is important to remember that, despite political differences, we share many objectives. The Welsh Government’s White Paper was a welcome contribution, and I believe we have significant common ground from which to work.
We all want the freest possible access to the single market. In that context, the Ford plant at Bridgend was mentioned by not only the hon. Member for Bridgend (Mrs Moon) but several other Members, including the hon. Member for Torfaen (Nick Thomas-Symonds). The latter also mentioned steel, as did the hon. Members for Aberavon (Stephen Kinnock) and for Newport East (Jessica Morden).
We need to recognise that, in relation to Ford, there is the natural life cycle of a product, and that we need to be realistic about where we were expected to be at this stage of development. The hon. Member for Bridgend said that there were challenges in efficiency and productivity that the unions and the plant must face. When I met Ford two days ago, there was optimism about a sustainable future, but also a recognition that we need to win further business for when the natural life cycle of the existing engines ends. It is on that basis that I look positively at the challenges that we face in order to make those jobs sustainable over the longer term.
Some of the information out there has been highly selective, and I do not necessarily subscribe to the way in which it has been presented. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy and I have already discussed this matter, and I know that ongoing engagement with Ford is something that we want to pursue.
On the points that were made in relation to steel, I do not accept the criticism that the hon. Member for Aberavon made. He talked about trade defence measures. Although I have mentioned them time and again, he fails to recognise them. The 41 trade defence measures that have been introduced have had an effect. Imports of rebar and wire rod into the European Union are down by 99%, as a result of the Secretary of State, and his predecessor, driving that forward to ensure that we have a fair and level playing field for the steel industry. Rolled-flat products and organic coated steel are similarly down by 90%. The hon. Gentleman will recognise that, as a result of the action taken by the workforce and the responsible approach taken by Community union, the Government and the Welsh Government, the steel industry in Wales and across the United Kingdom is in a much, much stronger position now than it certainly was just a year or so ago. I am optimistic about the future. Yes, there are challenges to overcome, but there is a sustainable future that we need to find for steelmaking in Wales.
There are millions of people across the world looking for the skills, expertise, and goods and services that we have in Wales. Through the Wales Office and the Department for International Trade, we can use our exiting of the European Union to exploit those opportunities that exist. We have landed some significant investments, including GE in Nantgarw yesterday and the F-35 global repair hub in Flintshire. Those are just two examples of our recent significant progress.
I am sorry that I have not been able to cover all the issues, including the points about tourism that were made by my hon. Friends the Members for Brecon and Radnorshire (Chris Davies) and for Gower. They rightly highlighted the value that tourism brings. I recognise the points that they made about the Cardiff city deal. My hon. Friend the Member for Cardiff North (Craig Williams) drives that project with great enthusiasm. My hon. Friend the Member for Gower is pressing the point on the tidal lagoon. It is only right that we give that matter the time that it deserves in terms of examining the numbers and looking at it fairly so that it is right not only for energy production, but for the taxpayer.
Wales Bill
Alun Cairns ExcerptsTuesday 24th January 2017
(7 years, 10 months ago)
Commons ChamberRead Full debate Wales Act 2017 View all Wales Act 2017 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Amendments as at 24 January 2017 - (24 Jan 2017)
The Secretary of State for Wales (Alun Cairns)
I beg to move, That this House agrees with Lords amendment 9.
Madam Deputy Speaker
With this it will be convenient to discuss Lords amendment 44.
Alun Cairns
I am pleased to open the debate on the amendments made to the Wales Bill in the other place. Given the number of Members who wish to speak in this relatively short debate, I shall aim to keep my comments relatively brief.
First, I place on record my gratitude to the peers who contributed to the scrutiny of the Bill during its passage through the House of Lords. It would be dangerous to try to name them all for fear of forgetting some, but a number who regularly attended briefing sessions and gave feedback throughout the process helped to get this important Bill through the other place without any Government defeats. I thank in particular Lord Bourne of Aberystwyth for steering the Bill so ably through the other House on behalf of the Government, supported by Baroness Mobarik as Whip for the Bill.
I also take the opportunity to place on record my thanks to a number of right hon. and hon. Members of this House. My right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) started the process when she established the Silk commission in 2011. My right hon. Friend the Member for Clwyd West (Mr Jones) expertly guided through Parliament the Wales Act 2014, which implemented the Silk commission’s fiscal recommendations. I pay particular tribute to my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb). In his time as Secretary of State he took a number of bold decisions, most notably the establishment of the cross-party St David’s day process, which put in place the framework of the Bill. That was a bold move, as I have suggested—one that sought to bring all parties together to make a constitutional agreement that would bring both Houses together, understanding the politics of both sides of this House and of the other place.
My right hon. Friend was unstinting in his belief in the importance of the Bill and subjected himself to immense scrutiny with respect to its contents. I pay tribute to his work in setting the framework that has allowed my hon. Friend the Under-Secretary of State for Wales and I to take it through the Chamber.
It is also appropriate to pay tribute to Members on the other side of the House who played an important part in the scrutiny of the Bill, especially the former shadow Welsh Secretary, the hon. Member for Newport West (Paul Flynn), and his predecessor, the hon. Member for Llanelli (Nia Griffith), who was involved in the work, negotiations and discussions throughout the process, as well as the current Opposition Front-Bench team.
I wanted amendments 9 and 44 to be spoken to separately, to give right hon. and hon. Members the opportunity to consider the fiscal framework agreed between the UK Government and the Welsh Government. The amendments are directly linked to that agreement.
The agreement reached between the UK Government and the Welsh Government is an historic agreement that is fair for Wales and fair to the rest of the UK. During scrutiny of the Bill last summer, this House approved the removal of the requirement for there to be a referendum before Welsh rates of income tax were implemented, and the fiscal framework paves the way for the devolution of those historic tax powers from April 2019.
The block grant adjustment mechanisms that will take account of the devolution of stamp duty land tax and landfill tax are also part of that agreement, ensuring that the replacements for those taxes in Wales, which the Welsh Government are already legislating for, come on stream in April 2018.
Nick Thomas-Symonds (Torfaen) (Lab)
While the Secretary of State is talking about the fiscal framework, may I welcome the lifting of the cap on borrowing for capital expenditure to £1 billion? That is not quite the £2 billion that Front-Bench colleagues in the other place asked for, but I welcome it as a step forward. Does the Secretary of State agree that that measure will give the opportunity to continue investment in infrastructure in Wales, both digital and physical, and can also contribute to increased productivity?
Alun Cairns
I am grateful to the hon. Gentleman for the scrutiny he provided at previous stages, and for his comments just now. I will come to the numbers later, but I hope he recognises that there was a mature discussion between two institutions, and he is absolutely right that this measure paves the way for the Welsh Government to use their new borrowing powers to legislate for and finance things that really matter to the Welsh people.
The agreement ensures that, when tax powers are devolved, the Welsh Government will have fair funding for the long term, taking into account Welsh tax capacity and treating population change consistently across tax and spending. In doing so, we are delivering on the independent Holtham commission’s ambition of a long-term fair funding settlement and agreement for Wales.
Indeed, I spoke to Professor Holtham only last week, and he is clear that this is a “very fair settlement” and that there is now no case to argue that Wales is underfunded. The Government previously stated that Wales receives a fair settlement. This cements that in place and enhances the settlement.
Paul Flynn (Newport West) (Lab)
Does not the Secretary of State agree that the fiscal framework is already out of date because it is pre-Brexit and we now know that Wales will suffer severely if we come out of the single market? Is it not true that the Bill is just another stepping-stone on the way to a new Bill, which we will get when the terms of Brexit are declared?
Alun Cairns
The hon. Gentleman is well aware that we have a positive dialogue with the Welsh Government on the nature and framework of the process and the ultimate outcomes of exiting the EU. I was happy to receive yesterday from the Welsh Government a paper outlining their proposals, and we will of course give it close consideration. It will be subject to a future Joint Ministerial Committee for the European negotiations.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
No doubt, then, the Secretary of State would disagree with the hon. Member for Brecon and Radnorshire (Chris Davies), who said yesterday in an interview with me on ITV Wales that Wales should simply get in line with the Brexit process and just kowtow to the Prime Minister’s agenda?
Alun Cairns
I did not hear my hon. Friend’s comments, but should there be any attempt to frustrate the process of exiting the EU by the Welsh Government, the Welsh population would not expect or want it. After all, Wales voted to leave the EU, and it is only right and proper that we act on that instruction and direction, which came from the public in Wales. I would hope that the Welsh Government continue to engage positively in the way that they have.
Owen Smith (Pontypridd) (Lab)
Given the respect that the Secretary of State says there is between the institution of the National Assembly and the Government here at Westminster, should he not be disappointed that the Supreme Court has not ruled today that there should be a formal consultation with Wales via the National Assembly?
Alun Cairns
We have maintained that the views of the Welsh Government are important, but the views of other stakeholders in Wales are also relevant to the discussion. The Welsh Government will rightly form their view, and the UK Government will come to a conclusion that serves all parts of the United Kingdom, including other stakeholders in Wales, as part of the process. The legal action that the Welsh Government took was a matter for them. We have had the judgment, and we need to respect and act on it.
I shall return to the fiscal framework and the funding settlement for Wales. I have already mentioned Professor Gerry Holtham, but it is appropriate that we pay particular tribute to him for the work that he did. We should also pay tribute to my right hon. Friend the Chief Secretary for the part he played in the negotiations, and to the way the Welsh Government and Mark Drakeford, the Cabinet Secretary for Finance and Local Government, went about the negotiations with my right hon. Friend, whereby two mature institutions discussed serious matters that will have long-term positive consequences for Wales.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Does not the Secretary of State share my concern that the needs-based factor will be based on sums ascertained in 2009-10, which will be effectively 10 years old when it comes into effect? There should be a review before it starts.
Alun Cairns
I am grateful to the hon. Lady for her intervention, and for the scrutiny and interest she has rightly given the Bill, but I hope she recognises the significance of the fiscal framework. The needs-based factor to which she refers is 115%, and the current level is well above that. It will fall to 115% over time, recognising the fair settlement that Wales gets because of its needs. It is significant that that needs-based factor is being introduced into the Wales settlement for the first time. It is something for which the hon. Lady and her party have been calling for some time, but it took a Conservative Government to deliver it.
Stephen Crabb (Preseli Pembrokeshire) (Con)
My right hon. Friend has done a fantastic job of steering the Bill through its Commons stages. The hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) says that the figures are out of date, but when I sat down with Professor Holtham to think about how to scope out a fair funding floor for Wales, he was absolutely clear that there was no reason to think that just because of the passage of time the figures that he had in mind were somehow incorrect. The level that has been set by the Treasury is exactly right for Wales’s needs at this time.
Alun Cairns
My right hon. Friend played an important role in ensuring that we have the needs-based factor by framing the debate in such a way as to make possible a successful conclusion. Ultimately, the Welsh Government would understandably have rejected the Bill unless it was associated with an appropriate and fair funding settlement. I hope that Opposition Members will recognise the significance of the settlement, because it really does matter to the long-term funding of public services in Wales.
Stephen Doughty
Does the Secretary of State accept that, as the First Minister set out yesterday in the White Paper published with the support of Plaid Cymru and the Liberal Democrats, there is a difference between the Barnett funding formula and funding arrangements of the sort that we currently have under the common agricultural policy and the structural funds? As things are moving on very rapidly, will he make a commitment that Wales will not be left a penny worse off as a result of leaving the European Union?
Alun Cairns
The hon. Gentleman tempts me to go down a route for which no decisions have been taken. We are keen to engage and discuss those matters and, as we have already said, we are keen to engage with the Welsh Government and the other devolved Administrations on future funding arrangements. I hope that the hon. Gentleman will recognise the fairness of the way we have approached the Barnett settlement and the fiscal framework, and that that will give him confidence that, as we hope, we will achieve a fair settlement for Wales and all parts of the United Kingdom as we exit the European Union.
Alun Cairns
I would like to make a little progress, but I will happily give way later if time permits.
We have agreed a fair way for the block grant to be adjusted to take account of tax devolution and the devolution of a portion of income tax, and a transitional multiplier of 105% in the Barnett formula that will give the Welsh Government additional money, over and above current levels, whenever we increase spending in a devolved area. That 105% demonstrates the even longer-term transition to getting down to the floor of 115%. We are doubling the Welsh Government’s capital borrowing limit, so that they will be able to borrow up to £1 billion —as the hon. Member for Torfaen (Nick Thomas-Symonds) pointed out a moment ago—to invest in infra- structure throughout Wales.
Lords amendment 9 puts the new capital borrowing limit in place now, so that it will be available as soon as the Welsh Government start to raise revenues through the taxes we are devolving. Lords amendment 44 ensures that Lords amendment 9 comes into force two months after Royal Assent, thereby putting the new borrowing limit into place well in advance of the devolution of tax powers. As the hon. Member for Torfaen rightly highlighted, that will allow the Welsh Government to get on with things that matter, and to legislate and use the new financial capacity that the Bill will grant. Taken with the Wales Bill, the agreement paves the way to making the Welsh Assembly a more powerful, accountable and mature institution, with greater powers and responsibilities to grow and support the Welsh economy.
The fiscal framework agreement resolves once and for all the perceived issues of underfunding that have overshadowed political debate in Wales for so long. It provides the Welsh Government with a powerful new borrowing limit to deliver much-needed infrastructure investment, and it ensures that the devolved Government in Wales can become truly accountable to the electorate by raising around a quarter of the money that they spend. Gone are the days when poor levels of public service in Wales could be blamed on perceived underfunding. For too long, funding was used as an excuse for poor outcomes, but not any longer. If they want big government, the Welsh Government could even raise taxes to pay for it. Or, if they want to reduce income tax levels, they could look to drive out inefficiencies and allow Wales to be seen in a new entrepreneurial light. I urge the House to agree to the Lords amendments.
Jo Stevens (Cardiff Central) (Lab)
In the spirit in which the Bill has so far developed, we will this afternoon see something of a rarity in my life: I will, on occasions, agree with the Government and some of the measures they are taking. Before the Secretary of State gets too excited about that, though, it has to be put on record that the Bill has had a chequered history. It started out very badly—so badly that the Government had to take it away and start all over again. The second attempt was better, and we have now reached a point at which although it is still far from ideal, there has been considerable movement by the Government as a result of pressure from the Opposition and in the other place.
I put on record my thanks to my predecessors, my hon. Friends the Members for Llanelli (Nia Griffith) and for Newport West (Paul Flynn), and their Front-Bench teams, for their work during the Bill’s passage. I particularly thank my colleague Baroness Morgan of Ely and our team in the other place for the sterling efforts they made to secure numerous improvements to the Bill through debate and discussions with the Government, who took a largely constructive approach to concessions. We therefore support the Bill in its current, improved form, and will not attempt to frustrate its passage.
I shall not detain the House longer than necessary on matters on which there is agreement, but I wish to make substantial points on the Opposition amendments at the tail end of the selection list, on which I may wish to test the will of the House. We are hopeful that we can make good progress and reach those amendments.
Given the importance of the consequences of Lords amendments 9 and 44, it is right to put something on the record about them. They will raise the Welsh Government’s overall capital borrowing ability to £1 billion, and from April 2019 the annual capital borrowing limit will rise to £150 million—15% of the overall figure. As the Secretary of State pointed out, all that stems from the fiscal framework agreed by the Government here in Westminster and the Welsh Assembly Government. It is welcome news; I congratulate the Welsh Government. Like the Secretary of State, I particularly congratulate the Cabinet Secretary for Finance and Local Government, Mark Drakeford, for working so hard to seal this important deal with the UK Government. I also pay tribute to the Government for moving on this issue.
The increase in borrowing ability is so important because the austerity that successive Conservative Chancellors have imposed on Wales has had severe consequences for the Welsh Government’s ability to invest, particularly in infrastructure. As has been pointed out, with the loss of European funding that Wales will experience once we leave the EU, the ability of the Welsh Government to invest in infrastructure becomes even more critical. Therefore, moves to enhance the Welsh Government’s ability to invest in and develop infrastructure for the future are of course welcome. It is all about investing in Wales and boosting our economy, and this measure will go a significant way towards doing that.
Sensible infrastructure investment led by the Welsh Government will help improve productivity rates in Wales and increase the gross value added of Wales. However, as Members will hear me say several times today, the Government plans do not go far enough. In the other place, my Front-Bench colleague, Baroness Morgan, tabled an amendment to raise the borrowing cap to £2 billion based on the Holtham recommendations. We accept £1 billion as a step forward, but it is clearly not enough to properly meet the demands of the Welsh economy. Before the Minister responds to that point, I caution the Government against viewing the cap as a target. The point is to see the flexibility and dynamism provided by the higher limit, rather than to look at only how much is borrowed.
Many successful businesses do not use 100% of their borrowing facility, but leverage their borrowing to a sensible percentage of the facility based on the economic context in which they are operating. The higher £2 billion that was sought would not necessarily have been used, but would have allowed greater flexibility and freedom for the Welsh Government to invest in a greater number and a greater scale of critical schemes and infrastructure projects.
I make these points to the Minister to put them on record and to push his conversations with the Treasury ahead of the forthcoming Budget, but, as I have said, we do welcome the step forward that Lords amendments 9 and 44 provide and we will not vote against them.
Liz Saville Roberts
I am sure that the House will join me in wishing the best to my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards), who is expecting the imminent arrival of the latest member of his family. [Hon. Members: “Hear, hear.”] I sympathise with all MPs who have to balance family life and parliamentary duty.
I, of course, welcome to an extent the fact that a fiscal framework is on the verge of being in place, giving the Welsh Government a degree of financial accountability that is intrinsic for any functioning democratic Parliament. Judgment is still very much out, however, on whether it can really deliver the economic accountability and levers for growth that are required in this tumultuous time. I therefore want to start with a few brief comments about the framework’s ambition, or lack thereof. I then want to ask the Minister a specific question about how the framework will operate before finally discussing the capital expenditure limit outlined in amendment 9.
Despite finally having this fiscal framework in place, we still lag behind every other devolved Administration in terms of powers and responsibilities. Earlier today—like most days—we were embroiled in the Brexit conundrum and all its unravelling economic implications, but the Government’s insistence on a patchwork approach to devolution means that Wales will not have the real levers for growth that it needs at this most difficult of economic times. If the Conservative party wants to talk about the real opportunities that a single market and customs union exit brings for Wales, it should be looking at the fiscal levers for growth, including VAT, the most important tax for Wales, and how it could be devolved. I hope the Minister will indicate that he plans to review the framework in the light of recent developments to ensure that Wales has such fiscal levers.
I briefly want to touch on a technical point that my party colleague, Adam Price AM, has already raised with the Welsh Government’s Cabinet Finance Secretary. The much trumpeted relative need provision of the fiscal framework—the 115% rule, which is referred to as the Holtham floor—was based on a set of criteria that determined Wales’s relative need in 2009-10. There seem to be no plans to conduct a review of that relative need when the floor is set to be implemented approximately three years from now, meaning that those relative needs will be based on figures that are 10 years out of date. This was discussed briefly in earlier interventions, but the 115% rule surely cannot be set in stone for all time, so I ask the Minister to propose a review to investigate that.
Alun Cairns
I am happy to clarify that the fiscal framework agreement, which is supported by the Welsh Government, includes opportunities for periodic reviews.
Liz Saville Roberts
I welcome those comments about periodic reviews as opposed to using 10-year-old statistics. I also have some concerns about the framework’s dispute resolution mechanism, but there may not be the time to discuss them here. We may be able to resolve that problem in future discussions.
I want to finish by emphasising the fact that both Governments lack ambition. In the Lords, Plaid Cymru called for a £2 billion capital expenditure limit, which was supported by Labour. However, under pressure from the devo-sceptic Tory party, we can see in amendment 9 that we are left with a capital expenditure limit of exactly half that. Although I am pleased that a fiscal framework is finally in place, I cannot avoid the observation that Wales is once again being short-changed through a lack of vision and ambition.
Madam Deputy Speaker (Natascha Engel)
With this it will be convenient to discuss the following:
Lords amendments 2 to 8, 11 to 27 and 33 to 35.
Lords amendment 36 and amendments (a) and (b) thereto.
Lords amendments 37 to 43, 45, 47 to 136 and 138 to 177.
Alun Cairns
As I stated earlier, we have engaged constructively with peers, the Welsh Government, the Assembly commission, colleagues on both sides of the House and a range of other interested parties on the issues raised, and we have made changes to improve the Bill where there is a good case to do so. The Bill today is a better one as a result. The large number of amendments in the group is testimony to the fact that the Government have been open to improving the new devolution settlement where possible. I do not intend to discuss each amendment in detail, but I will draw some of them to the House’s attention.
We have amended the Bill to deal with concerns about how universities are treated in the new reserve powers model. During the Bill’s passage through the other place, concerns were raised by the higher education sector that defining universities as “Wales public authorities” might suggest that they should be classified more widely as “public authorities”. This was not our intention. Amendments 3, 4 and 115 resolve this issue by renaming “Wales public authorities” as “Devolved Welsh authorities”. This responds to calls from universities and Universities Wales. We have also ensured that the Open University will be defined as an authority that carries out a mix of devolved and reserved functions, reflecting its status as a UK-wide institution. This will allow the Assembly to legislate to confer functions on the Open University in devolved areas without requiring the consent of a UK Minister. We have also expanded the list of devolved Welsh authorities in response to concerns raised by the Welsh Government and others.
The Government have introduced several amendments relating to tribunals that resulted from extensive discussions with the Welsh Government, the Ministry of Justice and the senior judiciary and which are intended to improve the management of the workload of devolved tribunals and to maximise flexibility in the deployment of judicial resources in Welsh tribunals. The amendments tabled in the other place will create a statutory office of president of Welsh tribunals to oversee the work of the devolved Welsh tribunals. New schedule 5 provides for a two-stage process for the appointment of a person to this new statutory role. The new clauses will also allow for the deployment of judges between Welsh tribunals and reserve tribunals in England and Wales so that they might share expertise in a way that cannot happen under current legislation. These are important amendments that are the product of constructive work with the Welsh Government, the Ministry of Justice and others.
The Government’s key aim in introducing the new reserved powers model is to deliver clarity on the boundary between the Assembly’s competence and the competence of this Parliament, particularly in the light of the Supreme Court judgment on the Agricultural Wages Board settlement. Many amendments therefore either alter or remove altogether reservations contained in new schedule 7A to the Government of Wales Act 2006.
The Government have tabled a number of amendments to deal with the planning system and the law that governs the construction of buildings, responding to concerns raised by the Welsh Government. Amendment 71 devolves competence for planning in relation to railways, making it consistent with the position in Scotland. We have also brought forward amendments that replace the full reservation of compulsory purchase with one that covers only compensation. This was again in response to discussions between the UK Government and the Welsh Government.
As for amendments to schedule 1 more widely, we have demonstrated our willingness to devolve significant further powers to the Assembly where a clear rationale can be made for doing so. Amendment 80 removes the reservation relating to teachers’ pay and conditions. This was something that I was keen to devolve from the outset, but I recognised concerns that were expressed by colleagues on all sides of the House as well as by the teachers’ unions. Following constructive engagement with the First Minister and discussions between officials, we are pleased that we both came to the same conclusion—that education is a devolved matter and that it makes more sense for the Assembly and Welsh Ministers to decide the pay and conditions of teachers in Wales, particularly in the light of the greater divergence between the education models that exist in England and the education model that exists in Wales. It is sensible to devolve teachers’ terms and conditions.
Amendment 72 devolves the community infrastructure levy in Wales. That was a priority for the Welsh Government, and has been for a number of years. We have listened to the case that they made and we are again delivering on a demand made by them. We were happy to respond positively and constructively to these calls.
Finally, amendments 36 and 52 devolve legislative and Executive competence to the Assembly and Welsh Ministers to regulate the number of high-stake gaming machines, authorised by new betting premises licences in Wales. This is an issue in which the hon. Member for Swansea East (Carolyn Harris) showed particular interest and passion during the earlier stages of the Bill’s scrutiny. The Silk commission made no recommendation on the devolution of betting, gaming and lotteries, but we agreed as part of constructive dialogue with the St David’s day process to consider non-fiscal recommendations made by the Smith commission that it would be appropriate to take forward in Wales.
Nick Thomas-Symonds
I, too, place on record my congratulations to my hon. Friend the Member for Swansea East (Carolyn Harris) on the success of her campaign on this issue. Does the Secretary of State agree that when statistics show that an average of £3,000 a day is being staked on these machines, it is very important to devolve these powers and for the regulations to be implemented?
Alun Cairns
I will come on to that specific point, because a review is being conducted by the Department for Culture, Media and Sport which will address the specific issues that the hon. Gentleman raises. For the moment, I shall stick to explaining the rationale behind the amendments on fixed odds betting terminals.
One proposal was for the powers to be devolved to stop the proliferation of these so-called fixed odds betting terminals. We concluded that these powers should be devolved in Wales, as they are in Scotland, coming out of the Smith commission. Amendments 36 and 52 therefore ensure that the Bill mirrors the provisions in the Scotland Act 2016 in respect of high-stakes gaming machines. The amendments apply to sub-category B2 gaming machines, and would provide the Welsh Government with a means to address public concerns in Wales regarding the proliferation of these machines. These machines were regulated by the Gambling Act 2005, which was introduced when the Labour party was in power.
The Opposition amendments would go much further than what is already devolved in the Scotland Act by extending this provision to all existing gaming machines with a stake of more than £2, and by devolving powers over existing licences. We did not believe that that was appropriate. As I mentioned a moment ago, the Government have already announced a review into the issue because we recognised the flaws in the 2005 Act. As a result, we are carrying out a thorough process to examine all aspects of gaming machine regulation, including the categorisation, maximum stakes and prizes, location and number of machines, and the impact that they have on players and the communities in relation to, for instance, problem gambling and crime. All those factors are potentially relevant and interrelated. The powers that we have agreed to devolve are intended to enable the Welsh Government and the Assembly to take action to prevent the proliferation of fixed odds betting terminals.
The review that we have announced is the appropriate mechanism for consideration of all those issues in a far more holistic way. I urge Opposition Members not to press their amendments to a vote, but if they pursue them, I shall do my best to respond to some of the issues that concern them. I urge Members to support the Lords amendments.
Susan Elan Jones
I support Labour’s amendment (a) to Lords amendment 36, which would reduce the relevant stake for fixed odds betting terminals to £2. I welcome the review that is being carried out by the Department for Culture, Media and Sport, and I also welcome the move to devolve this power to the Welsh Assembly. My reason for doing so is very much in line with all the work that has been done by my hon. Friend the Member for Swansea East (Carolyn Harris), but I fear that we could find ourselves in a ridiculous position. All of us—apart from certain advocates for the betting industry—know that what is happening with fixed odds betting terminals is deeply concerning. Figures as high as about £1.7 billion have been quoted as the profits made on these horrible machines, which cause so much devastation in our communities. We all agree that something must be done fairly urgently, but I fear that the House of Commons could collectively vote to put in place a stake of below £10 but then, if we pass the Lords amendment as it stands, the stake could be reduced only to a minimum of £10 in Wales. That does not seem right to me.
Let me put it another way. Collectively, the House could vote for a maximum stake of £2 in England and Wales, but once the matter is devolved to Wales, the Welsh Government would be limited to £10 and then the House of Commons could not go for a lower stake here, simply because the Government would tell us that that this was a case of English votes for English laws and we would be banned from lowering the stake.
All we are asking for is something very pragmatic—something that would give us the right to decide the level of the stake and benefit communities. Let us make no bones about it: these machines, and what is happening in the gambling industry, are hitting our poorest communities the hardest. We see the impacts of it in our industrial villages and in our towns. Let us say once and for all to the harder elements of the gaming industry, some of whom I am sure will be e-mailing us all later, that the nonsense of what is happening with FOBTs must come to an end. Let us say, “Do not think you can intimidate us, or those in the communities who are fed up with the hold that you have on them.”
It is time for us to act firmly. It is time for us to give the Welsh Government full devolution in this regard. It is time for us to lower the stake even further, if possible. It is time for the Welsh Government to have the power to do that, and, hopefully, this place will as well.
Alun Cairns
With the leave of the House, Madam Deputy Speaker, I would like to respond to the points that have been made. I thank all those Members who have made contributions today, and throughout the Bill’s passage through the House and the other place.
I am disappointed that the Opposition want to divide the House on the proposals we introduced in the other place on fixed odds betting terminals. Those proposals responded positively to calls that were made by colleagues on both sides of the House and by the Welsh Government. The Silk commission made no recommendations in that area, but having considered the Smith commission recommendations for Scotland we believe it is right to put the Assembly on the same footing as the Scottish Parliament and allow it to legislate on the proliferation of fixed odds betting terminals in Wales.
Albert Owen (Ynys Môn) (Lab)
The Secretary of State asserts that only Members on this side of the House oppose the proposals, but Conservative Members of the Welsh Assembly oppose what the Government are proposing and have supported my hon. Friend the Member for Swansea East (Carolyn Harris), including Darren Millar from north Wales. Has the Secretary of State consulted his Assembly Members on this point?
Alun Cairns
The hon. Gentleman makes a relevant point. We take the issue of problem gambling seriously. As I mentioned, we are committed to looking at all aspects of gaming machine regulations as part of a wide-ranging review of gambling. The regulation of fixed odds betting terminals is covered by the Gambling Act 2005, and we recognise that flaws exist in the current regulatory arrangements. They were introduced by the Labour party and it is time that they were reviewed. That is what my right hon. Friend the Secretary of State for Culture, Media and Sport is doing. We will act when that work has been completed, so I hope hon. Members will vote against the Opposition amendments and in support of the Lords amendments tabled by the Government.
The hon. Member for Newport West (Paul Flynn) suggested that the Bill showed a half-hearted approach to devolution. In the positive spirit in which the Bill has progressed through both Houses, I remind him that legislative competence orders were in place when we came into power in 2010 and started this process. A conferred model was in place then; the Bill introduces a reserved model. We have in place a needs-based funding settlement—something that has been called for for decades—and we are devolving significant tax powers. We have removed the water intervention powers and extended the Welsh Government’s powers in a significant range of areas, such as energy, fracking, elections and running their own affairs. A host of positive steps have been taken.
We all know that Members in the other place rightly pay close scrutiny to matters of constitutional importance in Bills such as this. Despite being in a minority in the other place, the Government were not defeated on the Bill, so I hope that Members from both sides of the House, and all Opposition Members, will recognise the significance of the Bill and, once and for all, welcome it because of the positive steps it takes in bringing about a devolution settlement that will last for a long time to come.
Lords amendment 1 agreed to.
Lords amendments 2 to 8, 11 to 27 and 33 to 35 agreed to.
After Clause 48
Gaming machines on licensed betting premises
Amendment (a) proposed to Lords amendment 36.— (Jo Stevens.)
Question put, That the amendment be made.
Wales Bill: English Votes for English Laws
Alun Cairns Excerpts(7 years, 11 months ago)
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The Secretary of State for Wales (Alun Cairns)
I am pleased to announce the publication of analysis of English votes for English laws in relation to Government amendments to the Wales Bill during its passage through the House of Lords.
The English votes for English laws process applies to public Bills in the House of Commons. To support the process, the Government have agreed that they will provide information to assist the Speaker in considering whether to certify that Bill or any of its provisions for the purposes of English votes for English laws. Bill provisions that relate exclusively to England or to England and Wales, and which have a subject matter within the legislative competence of one or more of the devolved legislatures, can be certified.
The memorandum provides an assessment of tabled Government amendments to the Wales Bill, for the purposes of English votes for English laws, ahead of Commons consideration of Lords amendments (CCLA). The Department’s assessment is the amendments do not change the territorial application of the Bill.
This analysis reflects the position should all the Government amendments be accepted.
The memorandum can be found on the Bill documents page of the Parliament website at: http://services.parliament. uk/bills/2016-17/wales.html and I have deposited a copy in the Libraries of both Houses.
[HCWS423]
Welsh Government Fiscal Framework
Alun Cairns Excerpts(8 years ago)
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The Secretary of State for Wales (Alun Cairns)
The UK Government and Welsh Government are today announcing a new funding settlement for Wales based on need, empowering the Welsh Government to grow the Welsh economy.
This historic agreement lies at the heart of the Wales Bill’s determination to provide secure, long-term funding for the Welsh Government. The deal sets out how the Welsh Government will be funded alongside the devolution of stamp duty land tax, landfill tax and Welsh rates of income tax in a manner that is fair for Wales and fair for the rest of the UK.
Through these new and principled arrangements, the Government have ensured that the Welsh Government will have a fair level of funding for the long term, taking into account Welsh tax capacity and treating population change consistently across tax and spending.
This deal underlines the mature relationship between Westminster and Cardiff as we move closer to agreeing a lasting settlement for the people of Wales.
This will be achieved through the creation of a new needs-based factor within the Barnett formula to determine changes in the Welsh Government’s block grant in relation to devolved spending. The Governments have also agreed to use the Comparable model to determine changes in the Welsh Government’s block grant in relation to tax devolution. Alongside the Barnett formula, this will ensure population change is treated consistently within the Welsh Government’s block grant funding.
This agreement will also double the Welsh Government’s overall capital borrowing limit to £1 billion and increase the annual limit to £150 million. We will also create a new Wales reserve to enable the Welsh Government to better manage its budget.
This agreement therefore paves the way for the National Assembly for Wales to consent to the Bill and enable the Welsh Government get on with the job of using their new tax powers to grow the Welsh economy.
[HCWS377]
Oral Answers to Questions
Alun Cairns Excerpts(8 years ago)
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Wayne David (Caerphilly) (Lab)
The Secretary of State for Wales (Alun Cairns)
The Welsh economy approaches EU exit from a very strong position. Since the vote to leave the EU we have seen economic inactivity continue to fall in Wales while employment has risen to a record high. Businesses continue to show confidence in the economy, with new investment across the UK fundamental to prosperity in Wales.
Margaret Ferrier
Wealth inequality in the British state hits Wales hard, with Welsh gross value added just scraping 71.4% of the UK average. EU structural funds have been key to combating this home-grown unfairness. Will the Minister guarantee today continued future UK funding to replace in full the lost EU regional money?
Alun Cairns
The hon. Lady raises an important issue, and I would say that Wales has been the fastest growing part of the UK outside London since 2010. She makes an important point in relation to the future of structural funds. She will also appreciate that they are meant to be a short-term boost to the economy, but after 16 years and after £4 billion has been spent, west Wales and the valleys have 64% of UK GVA. I am sure we need to use this opportunity to be positive and do something better with similar structural support.
Wayne David
Does the Secretary of State’s answer to that last question imply the Government intend to change the agreed priorities for the spending of the structural funds?
Alun Cairns
The hon. Gentleman will appreciate both that his constituency has experienced some significant falls in unemployment since 2010 and that after all that money has been spent those areas voted in the strongest numbers to leave the EU. The point I am making is that the current programme has not worked and has not fitted those communities. Exiting the EU presents an ideal opportunity to revisit this and look to see what we can do better for the hon. Gentleman’s constituency and other communities in Wales in need.
David T. C. Davies (Monmouth) (Con)
Does my right hon. Friend agree that the people of Wales voted clearly for Brexit and they do not need to be represented by the SNP or the Welsh Assembly Government who are ignoring their views, but will be pleased to have a Conservative Government and an excellent Secretary of State for Wales who will carry out their wishes?
Alun Cairns
I am grateful to my hon. Friend for his kind comments, but of course we have a close and constructive working relationship with the Welsh Government and all devolved Administrations because it is in our interests to get the strongest deal for the whole of the UK. After all, as my hon. Friend will recognise, the most important market for Welsh business is the UK market, and getting the best deal for the whole of the UK is in all our interests.
Stephen Crabb (Preseli Pembrokeshire) (Con)
The automotive and aerospace sectors are of enormous strategic importance for the Welsh economy. Given that Brexit probably will not mean retaining full membership of the single market, will my right hon. Friend nevertheless commit to do everything he can to retain full single market-style benefits for those critically important sectors in the Welsh economy?
Alun Cairns
My right hon. Friend raises an important point. He recognises the strength of the automotive and aerospace sectors, and I would point to some significant major investments the UK has landed. We are all familiar with Nissan investment in Sunderland, but it is equally important to the Welsh economy—Calsonic Kansei in Llanelli is a supplier to Nissan in Sunderland. We want to maintain the most open market arrangements, and the confidence shown by Nissan demonstrates it understands the priority we are placing on that.
Hywel Williams (Arfon) (PC)
This week Hybu Cig Cymru, the Farmers’ Union of Wales and NFU Cymru have all made the overwhelming case in favour of tariff-free access to the EU for our world-class Welsh red meat. What is the Minister doing to ensure the voice of agriculture is heard in government?
Alun Cairns
The hon. Gentleman raises an important point and the Under-Secretary, my hon. Friend the Member for Aberconwy (Guto Bebb), was at the winter fair in Builth Wells yesterday in Llanelwedd where he met the FUW and the NFU. We are in close dialogue with the farming unions in Wales and across the whole of the UK. Clearly Welsh agriculture is an important part of the Welsh economy and of our export market, and we want to maintain the most open trading relationship possible in its interest.
Hywel Williams
Welsh agriculture is spectacularly successful in EU markets; 93% of our excellent Welsh beef and lamb exports go to EU countries. What steps is the Secretary of State taking to ensure French, Italian, Spanish and German people continue to eat Welsh meat in the future?
Alun Cairns
The hon. Gentleman makes an important point. I too want to ensure that those across the European Union and elsewhere have the opportunity to benefit from the excellent produce that comes from Wales, including Welsh beef and Welsh lamb. We want to be global leaders in free trade. We also want the most open trading relationship with Europe that we can possibly get, and that is our determination and focus in our negotiations.
Mr Peter Bone (Wellingborough) (Con)
I ran a manufacturing business in south Wales for 13 years, and it is a great place to do business. We manufactured and sold all over the world. Does the Secretary of State agree that the fall in the pound as a result of the Brexit vote makes it much easier for Welsh exporters to increase their sales?
Alun Cairns
I am grateful to my hon. Friend for his question, because it gives me the opportunity to highlight the fact that Wales now has 37,000 more manufacturing jobs than in 2010. That demonstrates the strength and vibrancy of the Welsh economy. Clearly we want to do all we can to support our manufacturers. The value of the pound will have positive results for some businesses and perhaps present challenges for others, but those exporters who want to grow are clearly in a stronger position.
Jo Stevens (Cardiff Central) (Lab)
The Secretary of State referred earlier to the importance of the automotive industry in Wales. Ford announced in September that it would guarantee around a third of the jobs in its 1,800-strong workforce at Bridgend. Those jobs are vital to the local community and to the supply chain in Wales, but we are still concerned about the lack of commitment post-2020. The lack of any plan from the Government for Brexit is exacerbating the uncertainty and causing doubts about the plant’s future, so will the Secretary of State today commit his Government to giving Ford the same deal that they gave to Nissan in order to secure the future of the Bridgend plant and Ford’s presence in the UK post-Brexit?
Alun Cairns
The hon. Lady has raised an important point. My understanding of the situation is that Ford is continuing with more than £100 million-worth of new investment in the plant. That demonstrates the confidence that Ford has, not only in the Bridgend plant but in the UK economy. This builds on the strength of the automotive sector, which is extremely important to the Welsh economy and to the UK economy as a whole.
Alex Cunningham (Stockton North) (Lab)
The Secretary of State for Wales (Alun Cairns)
The Welsh economy remains fundamentally strong, highly competitive and open for business. We are part of a strong United Kingdom, and leaving the EU offers Wales an unprecedented opportunity to forge a new role for ourselves in the world, to negotiate our own trade agreements and to reap the benefits of foreign investment.
Alex Cunningham
What discussions has the Secretary of State had with the First Minister about the potential loss of links and connections that have been built up through organisations such as the European Committee of the Regions, and how will he seek to maintain those connections after Brexit?
Alun Cairns
The Welsh Government and I have a warm working relationship. Only last week, two Secretaries of State and two other Ministers met at the British-Irish Council that took place in my own constituency of Vale of Glamorgan. Of course we have strong bilateral relationships, and it is right that we use the Joint Ministerial Council to form the basis of the negotiations as we exit the European Union. I want to maintain the warmest and most constructive relationship possible with the Welsh Government, with all the devolved Administrations and with the Crown dependencies.
Michael Fabricant (Lichfield) (Con)
But does my right hon. Friend accept that this is not just about manufacturing, and that it is not only the exporters of Welsh Black beef who are important? One of the biggest exports for Wales is tourism. People tell me that, with the lower value of the pound, there are more foreign visitors in Snowdonia than ever before and that overseas companies are making more inward investment in Welsh hotels and marketing.
Alun Cairns
My hon. Friend makes an extremely important point. Wales has a fantastic record of attracting inward investment projects. He has focused on tourism, which gives me the opportunity to highlight the fact that north Wales has been named by Lonely Planet as the fourth top place in the world to visit in 2017. It is the only part of the United Kingdom to have been chosen, and that is something that we should celebrate and market to ensure that more people come not only to the UK but to north Wales.
Ian C. Lucas (Wrexham) (Lab)
Inward investment is a key driver of decisions to invest in particular areas, and the manufacturing powerhouse of north-east Wales needs inward investment not only from the private sector but from the Government. Will the Secretary of State put his money where his mouth is and commit the UK Government to matching Welsh Government investment in new infrastructure, including road and rail, in north-east Wales?
Alun Cairns
The hon. Gentleman shows a close interest in the Mersey Dee area and has shown particular interest in the north Wales growth deal, which my right hon. Friend the Chancellor mentioned in the autumn statement. We are keen to progress it and are waiting for details of the bid. I am sure that the hon. Gentleman will recognise the major success of that part of the world being chosen for the global F-35 repair centre, which will inject billions of pounds over decades into north-east Wales and MOD Sealand. We should recognise and celebrate that.
Jo Stevens (Cardiff Central) (Lab)
More than £2 billion of capital investment has been made over the past decade across Wales in social housing, transport, energy, water and education through the European Investment Bank. What plans has the Secretary of State put in place to mitigate the potentially disastrous consequences of leaving the EU on pre-existing EIB loans to organisations and public bodies in Wales? Crucially, what plans does he have to replace the funding that the EIB has been able to provide?
Alun Cairns
Our negotiations with the EIB will run in parallel with our negotiations with the European Commission. The hon. Lady has a responsibility to try to instil confidence in investment in Wales, not to undermine it. Only last week, the Chancellor announced a further capital injection of £436 million. I would hope that the hon. Lady would want to welcome that, not undermine investment, employment and jobs—it really does not become her.
Alberto Costa (South Leicestershire) (Con)
Karl MᶜCartney (Lincoln) (Con)
The Secretary of State for Wales (Alun Cairns)
Since the referendum in June, I have had discussions with a wide range of stakeholders across Wales, from the Wales Council for Voluntary Action, to the farming unions, the CBI Wales and the Institute of Directors in Wales, to hear their views on how to secure the best deal for Wales and the UK as we leave the EU. Those conversations are informing my discussions with Cabinet colleagues, as well as with the Welsh Government.
Nigel Huddleston
Does the Secretary of State agree that we should not just focus on businesses as we leave the EU? We should also consider the implications for the third sector, charities, local authorities and universities in Wales.
Alun Cairns
My hon. Friend makes an extremely important point. I have already talked about my warm relationship with the Welsh Government, but of course the UK Government should also have a warm relationship with universities, charity groups and environmental groups, as well as with businesses directly in Wales. The Welsh Government have an important part to play, but we also have a direct relationship with those key stakeholders.
Karl MᶜCartney
Does my right hon. Friend recognise that there is more than one voice in Wales and not simply the voice of the Welsh Government, who still cannot accept that the majority of Welsh people voted to leave the European Union? We must therefore engage with all Welsh stakeholders and partners who are key to ensuring that Brexit will be a success for everyone in the UK.
Alun Cairns
My hon. Friend raises an important point. Of course we engage positively with the Welsh Government, and we will continue to do so. I have already had scores of meetings with key stakeholders in Wales. My hon. Friend the Under-Secretary of State for Wales was at the Royal Welsh Agricultural Society’s winter fair yesterday doing that very thing—engaging with Welsh farmers and with Welsh farming unions.
Mr David Hanson (Delyn) (Lab)
Given the uncertainty over the single market and the Prime Minister’s failure to raise steel when she met the Indian Government recently, what steps will the Secretary of State take in the near future when he meets trade unions representing the steel industry to discuss the impact of the loss of the single market?
Alun Cairns
I hope that the right hon. Gentleman will do all he can to instil confidence in our ambitions to gain the most open trading relationship possible. He rightly raises steel. I am sure that he will recognise that we are in a much stronger position now than we were back in March. That is a result of reduced energy costs for the sector of £109 million. We have changed the procurement rules, offered flexibility in environmental packages and implemented strong pan-EU anti-dumping measures, which will reduce the threats of imports by more than 90% in a whole range of sectors.
Mr Mark Williams (Ceredigion) (LD)
The success of the Welsh red meat sector has meant that £225 million has been ploughed back into some of the most fragile rural communities in Wales. In his meetings, has the Secretary of State heard that message, and will he push the case for access to the single market to protect those very communities?
Alun Cairns
Like the hon. Gentleman, I have a lot of confidence in the Welsh red meat sector. I am sure that our European nations do not want to go without our high-quality Welsh red meat. We are determined to support our farmers in gaining the most open trading relationship possible, so that European nations can continue to enjoy the quality of Welsh produce.
Susan Elan Jones (Clwyd South) (Lab)
Oral Answers to Questions
Alun Cairns Excerpts(8 years, 2 months ago)
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Alberto Costa (South Leicestershire) (Con)
The Secretary of State for Wales (Alun Cairns)
I am sure the whole House will join me in marking the 50th anniversary of the Aberfan tragedy this Friday. That event shocked not just Wales but the whole of the country and the wider world. I am sure colleagues across the House will pay tribute to the bravery and strong community ties that pulled the people of Aberfan through the immediate aftermath and provided so much support in the months and years that followed.
Wales is benefiting from millions of pounds of UK investment across the country. We are modernising our rail infrastructure, investing in the North Wales prison, and providing significant funding and support to improve internet speeds. This is a clear demonstration of the Government’s commitment to delivering improvements in infrastructure in all corners of Wales.
Alberto Costa
Wales receives its funding from the Barnett bloc, but does my right hon. Friend recognise that the UK Government have a part to play in UK infrastructure so that it meets the strategic need in the UK as well as in Wales?
Alun Cairns
My hon. Friend raises an important point. He rightly underlines the Barnett arrangements, and we were pleased to introduce a funding floor that provides Wales with £115 for every £100 that is spent in England. In addition, we have the electrification of the Great Western main line, North Wales prison is a significant project, and we have broadband roll-out. After all, we are interconnected economies, and the Government are determined to do the best for the whole of the UK.
Ian C. Lucas (Wrexham) (Lab)
Alun Cairns
I pay tribute to the hon. Gentleman for the work he is doing cross-border with the Mersey Dee Alliance and the all-party group on Mersey Dee North Wales. That resonates with our policy to develop a growth deal that works on a cross-border basis. We are working with those who are developing the north Wales growth deal. We are in negotiations on that. We have recently received the Growth Track 360 bid, and we will analyse that in due course. We are keen to work together, and with the Welsh Government.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
Alun Cairns
My hon. Friend highlights the investment in the Great Western main line, and much attention is rightly drawn to the infrastructure of the electrification itself. However, it is fair to say that, as soon as we have electrified as far as Didcot or Swindon, the new trains will be operational, so his constituents, my constituents and those in Wales and the south-west in general will benefit from modern trains well before the infrastructure has been completed.
Susan Elan Jones (Clwyd South) (Lab)
Roads are critical in infrastructural investment—roads on both sides of the border. What conversations has the right hon. Gentleman had with the Welsh Government about the A5/A483, which goes from Oswestry towards the Wrexham area, given the particular road safety problems in the community of Chirk?
Alun Cairns
The hon. Lady raises an important point. It is something that has crossed the discussions over the north Wales growth deal, and it underlines the interconnectivity of the region she mentions with Manchester, Merseyside and north Wales. We are working closely with the Welsh Government on their infrastructure plan and the national infrastructure plans for the whole of the United Kingdom. It is important that they dovetail appropriately.
Dr James Davies (Vale of Clwyd) (Con)
Alun Cairns
I pay tribute to my hon. Friend for the work he has done on this important issue. I think he drew attention to it at one of the first meetings immediately after the general election, and that started the discussions that have led to the Growth Track 360 proposal. There are growth elements and transport infrastructure elements, and it is important that we ensure that those come together for the benefit of the whole region. I am happy to work with him and with the Department for Transport as we approach the control period 6 considerations that will take place in due course.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
I, too, associate my party and myself with the Secretary of State’s comments on the Aberfan disaster.
The Treasury aims to pool local government pension schemes in Wales and England to create wealth funds to invest in infrastructure, with each fund containing accumulated assets of £25 billion. Combined Welsh assets amount to £13 billion, meaning that if the Treasury has its way, Welsh funds will be swallowed up by a cross-border pool. Will the Secretary of State demand a specific Welsh wealth fund so that the contributions of Welsh local government workers are used to invest in infrastructure projects in Wales?
Alun Cairns
The hon. Gentleman raises a fairly technical area of policy. Appropriate economies of scale are involved in this. I am happy to discuss the details with him. The Welsh Government have made their views clear. However, it is not only about “Welsh money for Wales”—which, on the face of it, would sound good—but about having the economies of scale such that we can access funding elsewhere as well. Therefore, it is not necessarily the right thing, but I am certainly not closed to the idea.
Geraint Davies (Swansea West) (Lab/Co-op)
Margaret Greenwood (Wirral West) (Lab)
The Secretary of State for Wales (Alun Cairns)
I remain in close contact with my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy on the proposed lagoon at Swansea bay. This is an exciting project for Wales. I am due to meet Charles Hendry tomorrow to gain an update on the progress of the independent review, and I look forward to reading the findings when he reports later this autumn.
Margaret Greenwood
Last week, Sheffield Forgemasters and a host of other industrial companies in the northern powerhouse urged Charles Hendry to back a new tidal lagoon project, so I welcome the Secretary of State’s comments. If the Government will not listen to Wales, will they listen to the industrial north and finally get on with the Swansea bay tidal lagoon project ?
Alun Cairns
I recognise the hon. Lady’s interest in all things environmental, but Charles Hendry’s review has been seen as a positive intervention. The approach he has taken has been welcomed, as has been pointed out, not only by the lagoon company, local authorities and politicians, but by the business community in south Wales and across the northern powerhouse. We recognise the contribution that it could make, and we are looking forward to his judgment.
Edward Argar (Charnwood) (Con)
While it is important to take the findings of the Hendry review into account, will the Secretary of State press for progress on this exciting project as soon as it reports? The project not only has the potential to deliver clean energy, but will continue to build on the success, vibrancy and ambition that characterises Swansea and Wales.
Alun Cairns
My hon. Friend, like me, looks forward to the Charles Hendry report. There is no doubt that, as a test project, it has great potential for Swansea bay, but he, like me, has an obligation to the taxpayer to ensure that it works for consumers and taxpayers, and that it represents good value for money for all concerned.
Carolyn Harris (Swansea East) (Lab)
Alun Cairns
The hon. Lady and I agree that we would like something like that to be developed and to go ahead for the prospects and opportunities it will provide, but we have an obligation to the taxpayer: we have to ensure that it provides value for money. Only in recent weeks, the hon. Lady and her colleagues have complained about the cost of energy for Tata and other energy-intensive industries. It is important that we generate energy in a cost-effective way that suits consumers as well as taxpayers.
Paul Flynn (Newport West) (Lab)
Alex Cunningham (Stockton North) (Lab)
The Secretary of State for Wales (Alun Cairns)
I am in regular contact with my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy, the First Minister and the Welsh Minister for the Economy. We have not lost focus while these issues have been out of the headlines. The Government leave no stone unturned in supporting the steel sector.
Alex Cunningham
What assurances can the Secretary of State give that, in the event of the completion of a joint venture by Tata Strip Products and ThyssenKrupp, commitments will be made on jobs, investment and the continuation of primary steel making at Port Talbot and across Wales?
Alun Cairns
It is in the UK’s strategic interests to maintain a steel-making capacity, and so quite obviously to maintain that at Port Talbot. The Government stand ready and waiting to support any bidder. It is a matter for Tata as to whether it pursues the joint venture. We are maintaining a relationship with Tata and other potential bidders that were in discussions earlier this year. We are keen to maintain a sustainable future.
Wayne David (Caerphilly) (Lab)
Welsh steel is obviously of the highest quality, and I hope that when Heathrow airport is expanded Welsh steel will be used. In that sense, will the Secretary of State have a word with the Prime Minister to ensure that she stops faffing around on Heathrow expansion and that we have a positive decision as early as possible?
Alun Cairns
The hon. Gentleman tempts me, but he knows that that decision will be coming soon. He makes an important point about the use of steel in infrastructure projects. The UK Government have already changed procurement rules, making it easier for British steel to be used in contracts. For example, Crossrail, Europe’s largest civil engineering scheme, uses almost entirely British steel.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
As the representative for Merthyr Tydfil and Rhymney—[Interruption.]
Gerald Jones
Thank you, Mr Speaker. As the representative for Merthyr Tydfil and Rhymney, I too would like to associate myself with the comments of the Secretary of State and the shadow Secretary of State, my hon. Friend the Member for Cardiff Central (Jo Stevens), in relation to the 50th anniversary of the Aberfan disaster, an unimaginable loss for the families and, indeed, the whole community.
One major challenge—if not the major challenge—facing the Welsh steel industry is that its energy costs are far higher than those of our competitors. Despite warm words, little action has been taken. What action is the Secretary of State or the Government taking to bring down energy costs faced by energy-intensive industries?
Alun Cairns
I welcome the hon. Gentleman and his hon. Friend the shadow Secretary of State to their positions. He makes an important point on steel-making capacity and energy costs. He will be well aware that the energy-intensive industry package the Government have brought forward responded to the demands from the industry and from Tata specifically. We have reduced energy costs to the steel sector by £109 million, which has been welcomed and has put the sector in a much stronger position, with a turnaround in finance from a loss of £64 million to an operating profit of £95 million.
Louise Haigh (Sheffield, Heeley) (Lab)
Wales Bill: English Votes for English Laws
Alun Cairns Excerpts(8 years, 3 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Wales (Alun Cairns)
I am pleased to announce the publication of analysis of English votes for English laws in relation to Government amendments to the Wales Bill at Commons Report.
The English votes for English laws process applies to public Bills in the House of Commons. To support the process, the Government have agreed that they will provide information to assist the Speaker in considering whether to certify that Bill or any of its provisions for the purposes of English votes for English laws.
The memorandum provides an assessment of tabled Government amendments to the Wales Bill at Commons Report, for the purposes of English votes for English laws. The Department’s assessment is the amendments do not change the territorial application of the Bill.
The memorandum can be found on the Bill documents page of the Parliament website at: http://www.parliament. uk/bills and I have deposited a copy in the Libraries of both Houses.
[HCWS145]
Wales Bill
Alun Cairns Excerpts(8 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Wales (Alun Cairns)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
Government amendments 3 to 7.
Amendment 60, in clause 1, page 2, leave out lines 4 to 9 and insert—
“Part 2B
Establishment of Two Distinct Jurisdictions
92B Legal jurisdictions of Wales and of England
The legal jurisdiction of England and Wales becomes two legal jurisdictions, that of Wales and that of England.
92C The law of Wales and the law of England
(1) The law of England and Wales is divided into the law of Wales and the law of England.
(2) All of the law that extends to England and Wales immediately before the coming into force of this section—
(a) except in so far as it applies only in relation to England, is to extend to Wales (and becomes the law of Wales), and
(b) except in so far as it applies only in relation to Wales, is to extend to England (and becomes the law of England).
(3) In this section “law” includes—
(a) rules and principles of common law and equity,
(b) provision made by virtue of an Act of the United Kingdom Parliament, an Act of the Welsh Parliament or an Act or Measure of the National Assembly for Wales, and
(c) provision made pursuant to the prerogative.
(4) Any provision of any enactment or instrument enacted or made, but not in force, when subsection (1) comes into force is to be treated for the purposes of that subsection as part of the law that extends to England and Wales (but this subsection does not affect provision made for its coming into force).
92D Senior Courts system
(1) The Senior Courts of England and Wales cease to exist (except for the purposes of sections 92H (3) and (4)) and there are established in place of them—
(a) the Senior Courts of Wales, and
(b) the Senior Courts of England.
(2) The Senior Courts of Wales consist of—
(a) the Court of Appeal of Wales,
(b) the High Court of Justice of Wales, and
(c) the Crown Court of Wales, each having the same functions in Wales as are exercisable by the corresponding court in England and Wales immediately before subsection (1) comes into force.
(3) The Senior Courts of England consist of—
(a) the Court of Appeal of England,
(b) the High Court of Justice of England, and
(c) the Crown Court of England,
each having the same functions in England as are exercisable by the corresponding court in England and Wales immediately before subsection (1) comes into force.
(4) For the purposes of this Part—
(a) Her Majesty’s Court of Appeal in England is the court corresponding to the Court of Appeal of Wales and the Court of Appeal of England,
(b) Her Majesty’s High Court of Justice in England is the court corresponding to the High Court of Justice of Wales and the High Court of Justice of England, and
(c) the Crown Court constituted by section 4 of the Courts Act 1971 is the court corresponding to the Crown Court of Wales and the Crown Court of England.
(5) Subject to section 92I—
(a) references in enactments, instruments and other documents to the Senior Courts of England and Wales (however expressed) have effect (as the context requires) as references to the Senior Courts of Wales or the Senior Courts of England, or both; and
(b) references in enactments, instruments and other documents to Her Majesty’s Court of Appeal in England, Her Majesty’s High Court of Justice in England or the Crown Court constituted by section 4 of the Courts Act 1971 (however expressed) have effect (as the context requires) as references to either or both of the courts to which they correspond.
92E County court and family court
(1) The county court and the family court cease to exist (except for the purposes of sections 92H (3) and (4)) and there are established in place of them—
(a) the county court of Wales and the family court of Wales with the same functions in Wales as are exercisable by the county court and the family court (respectively) immediately before this subsection comes into force, and
(b) the county court of England and the family court of England with the same functions in England as are exercisable by the county court and the family court (respectively) immediately before this subsection comes into force.
(2) For the purposes of this Part—
(a) the county court is the court corresponding to the county court of Wales and the county court of England, and
(b) the family court is the court corresponding to the family court of Wales and the family court of England.
(3) Subject to section 92I references in enactments, instruments and other documents to the county court or the family court (however expressed) have effect (as the context requires) as references to either or both of the courts to which they correspond.
92F Judiciary etc.
(1) All of the judges, judicial office-holders and other officers of Her Majesty’s Court of Appeal in England or Her Majesty’s High Court of Justice in England become judges, judicial office-holders or officers of both of the courts to which that court corresponds.
(2) All of the persons by whom the jurisdiction of the Crown Court constituted by section 4 of the Courts Act 1971 is exercisable become the persons by whom the functions of both of the courts to which that court corresponds are exercisable except that (despite section 8(2) of the Senior Courts Act 1981)—
(a) a justice of the peace assigned to a local justice area in England may not by virtue of this subsection exercise functions of the Crown Court of Wales, and
(b) a justice of the peace assigned to a local justice area in Wales may not by virtue of this subsection exercise functions of the Crown Court of England.
(3) All of the judges, judicial office-holders and other officers of the county court become judges, judicial office-holders or officers of the county court of Wales and the county court of England.
(4) All of the judges, judicial office-holders and other officers of the family court become judges, judicial office-holders or officers of the family court of Wales and the family court of England except that (despite section 31C(1)(y) of the Matrimonial and Family Proceedings Act 1984)—
(a) a justice of the peace assigned to a local justice area in England is not a judge of the family court of Wales, and
(b) a justice of the peace assigned to a local justice area in Wales is not a judge of the family court of England.
92G Legal professions
(1) Every legal practitioner who would (but for this Part) at any time after the coming into force of this Act be entitled to carry on a reserved legal activity for the purposes of the law of England and Wales, in proceedings in England and Wales or before the courts of England and Wales, has at that time the same entitlement for the purposes of the law of England and the law of Wales, in proceedings in England and proceedings in Wales and before the courts of England and the courts of Wales.
(2) In this section—
“legal practitioner” means every solicitor, barrister, notary, legal executive, licensed conveyancer, patent attorney, trade mark attorney, law costs draftsman, accountant or other person who, in accordance with the Legal Services Act 2007 (c. 29), is entitled to carry on a reserved legal activity;
“reserved legal activity” has the same meaning as in the Legal Services Act 2007.
92H Division of business between courts of Wales and courts of England
(1) The Senior Courts of Wales, the county court of Wales, the family court of Wales and the justices for local justice areas in Wales are to apply the law extending to Wales (including the rules of private international law relating to the application of foreign law).
(2) The Senior Courts of England, the county court of England, the family court of England and the justices for local justice areas in England are to apply the law extending to England (including the rules of private international law relating to the application of foreign law).
(3) All proceedings, whether civil or criminal, pending in any of the Senior Courts of England and Wales, the county court or the family court (including proceedings in which a judgment or order has been given or made but not enforced) must be transferred by that court to whichever of the courts to which that court corresponds appears appropriate.
(4) The transferred proceedings are to continue as if the case had originated in, and the previous proceedings had been taken in, that other court.
Supplementary
92I Power to make further provision
(1) Her Majesty may by Order in Council make provision (including provision amending or otherwise modifying any enactment or instrument, including this Act) that appears appropriate in consequence of, or otherwise in connection with, the provision made by this Part.
(2) The provision that may be made under subsection (1) includes in particular provision relating to—
(a) courts,
(b) tribunals,
(c) the judges, judicial officers and other members and officers of courts and tribunals,
(d) the Counsel General or other law officers,
(e) the legal professions,
(f) the law relating to the jurisdiction of courts and tribunals, and
(g) other aspects of private international law (including, in particular, choice of law, domicile and the recognition and enforcement of judgments and awards).
(3) No Order may be made under subsection (1) unless a draft of the Order has been laid before, and approved by resolution of—
(a) each House of the United Kingdom Parliament, and
(b) the Welsh Parliament.”
This amendment replaces the Bill’s proposed recognition of Welsh law with provisions to establish two distinct legal jurisdictions of England and Wales, as drafted by the Welsh Government.
Government amendments 8 to 12.
Amendment 68, in clause 8, page 10, line 2, at end add
“in relation to any of the matters in subsection (2)(a) to (c) or a majority of the total number of Assembly seats in relation to the matters in subsection (2)(d) or (e).”
This amendment would substitute a majority of Assembly Members for the two-thirds super-majority required to change the existing specification or number of constituencies, regions or any equivalent electoral area, and the number of members to be returned for each constituency.
Government amendment 13.
Amendment 69, page 10, line 26, at end add
“in relation to any of the matters in section 111A (2)(a) to (c) or a majority of the total number of Assembly seats in relation to the matters in section 111A (2)(d) or (e).”
This amendment is consequential on amendment 68, to substitute a majority of Assembly Members for the two-thirds super-majority required to change the existing specification or number of constituencies, regions or any equivalent electoral area, and the number of members to be returned for each constituency.
Government amendments 14 to 22 and 26.
Amendment 63, in schedule 1, page 50, line 31, leave out “Betting, gaming and”.
This amendment with amendments 64 and 65 would devolve betting, gaming and lotteries in Wales (other than the National Lottery) to Welsh Ministers and the National Assembly for Wales.
Amendment 64, page 50, leave out line 32 and insert “The National Lottery”.
See amendment 63.
Amendment 1, page 50, line 32, at end insert—
“Exception
In the case of a betting premises licence under the Gambling Act 2005, other than one in respect of a track, the number of gaming machines authorised for which the maximum charge for use is more than £10 (or whether such machines are authorised).”
This amendment would modify section B18 (betting, gaming and lotteries) of proposed Schedule 7A to the Government of Wales Act 2006 such that the number of gaming machines authorised by a betting licence in Wales would fall within the legislative competence of the National Assembly for Wales. A corresponding amendment (NC2) proposes that powers be granted to the Welsh Ministers, under the Gambling Act 2005, to regulate the number of gaming machines authorised by a betting licence in Wales.
Amendment 65, page 50, line 32 , at end insert—
“Exception
All lotteries other than the National Lottery”.
See amendment 63.
Amendment 67, page 59, line 36, at end add
“other than the Wales and Borders franchise”.
This amendment allows the Welsh Government to be responsible for the Wales and Borders franchise.
Amendment 61, page 68, line 17, at end insert—
“Exceptions
Welsh language broadcasting and other Welsh language media.”
This amendment would devolve competence to the National Assembly for Wales in relation to Welsh language broadcasting and other Welsh language media.
Amendment 2, page 72, line 28, leave out paragraph 184.
This amendment would modify section M4 (development and buildings) of Part 2 of proposed Schedule 7A to the Government of Wales Act 2006 such that the community infrastructure levy would fall within the legislative competence of the National Assembly for Wales.
Government amendments 27 to 33.
Amendment 66, in schedule 2, page 85, line 3, at end insert—
“(11A) The requirement for consent by the appropriate Minister under—
(a) paragraph 8 above, in relation to a reserved authority,
(b) paragraph 10 above, in relation to public authorities (other than Wales public authorities), or
(c) paragraph 11 above, in relation to functions of a Minister of the Crown or any power of the Secretary of State under section 6 of the Railways Act 2006
does not apply where the provision of an Act of the Assembly relates to a Welsh language function.”
This amendment removes the requirement for Ministerial consent for Acts of the Assembly affecting functions of reserved authorities, public authorities or Ministers where the Act of the Assembly relates to a Welsh language function.
Government amendments 34 to 42.
New clause 2—Gaming machines on licensed betting premises—
“(1) The Gambling Act 2005 is amended as follows.
(2) In subsection (12) of section 172 (gaming machines), after paragraph (a) insert—
‘(aa) the Welsh Ministers, so far as, in the case of a betting premises licence in respect of premises in Wales and not in respect of a track, the order varies—
(i) the number of gaming machines authorised for which the maximum charge for use is more than £10, or
(ii) whether such machines are authorised;’
(3) In section 355 (regulations, orders and rules)—
(a) in subsection (1) after “the Secretary of State” for “or the Scottish Ministers” substitute ‘, the Scottish Ministers or the Welsh Ministers’;
(b) at the end insert—
‘(12) An order made by the Welsh Ministers under section 172 shall not be made unless a draft of the Order has been laid before and approved by resolution of the National Assembly for Wales.’
(4) The amendments made by this section do not apply in relation to a betting premises licence issued before this section comes into force.”
This new clause would give powers to the Welsh Ministers, under the Gambling Act 2005, to regulate the number of gaming machines authorised by a betting licence in Wales. A corresponding amendment (amendment 1) has been proposed to modify this aspect of the reservation to the legislative competence of the National Assembly for Wales on betting, gaming and lotteries (section B18 of proposed Schedule 7A to the Government of Wales Act 2006 set out in Schedule 1 to this Bill).
Amendment (a) to new clause 2, leave out “£10” and insert “£2”.
Amendment (b) to new clause 2, leave out “do not”.
New clause 3—Rail: franchising of passenger services—
“(1) Section 25 of the Railways Act 1993 (public sector operators not to be franchisees) is amended as follows.
(2) At the end of subsection (2A) insert ‘or a franchise agreement in respect of services that are or include Wales-only services.’
(3) After subsection (2A) insert—
‘(2B) For the purposes of this section a “Wales-only service” has the same meaning as in section 57 of the Railways Act 2005.’
(4) This section does not have effect in relation to any invitation to tender under section 26(2) of the Railways Act 1993 issued before the day on which this section comes into force.”
This new clause would remove a restriction in section 25 of the Railways Act 1993 on certain public sector bodies bidding to operate a rail franchise that is made up of or includes rail services within Wales.
New clause 10—Wales and Borders rail franchise—
“(1) Executive franchising functions are devolved to the Welsh Government.
(2) The Welsh Government must consult the Secretary of State on details of the devolved franchise, including how cross-border routes are procured and managed.
(3) The Welsh Government must maintain the existing Wales and Borders franchise until it expires in 2018.
(4) The Welsh Government is solely responsible for letting and managing the new Wales and Borders franchise to take effect after the expiry of the current franchise in 2018.”
This new clause allows the Welsh Government to be solely responsible for letting and managing the new Wales and Borders franchise to take effect after the expiry of the current franchise in 2018.
Government amendments 43, 44, 48, 49, 51, 52, 55 and 57.
Alun Cairns
The Government new clauses and amendments deal with a number of issues, in three main categories. First, there are a number of technical drafting changes to ensure that the new devolution settlement functions as it should. Secondly, there are amendments addressing several issues that have arisen during the ongoing discussion of the Bill with the Welsh Government, the Presiding Officer and the Assembly Commission. Thirdly, I am pleased to have tabled a number of amendments that address issues that I committed to return to when they were raised in Committee before the summer recess.
New clause 4 deals with a drafting issue and is a consequence of the devolution of responsibility for local government elections. It makes changes to provisions in the Police Reform and Social Responsibility Act 2011 relating to the timing and franchise for police and crime commissioner elections, which are reserved under the Bill and are currently linked in law to timing and franchise for local government elections. Under the Bill, responsibility for that provision will be devolved to the National Assembly for Wales. The new clause is therefore necessary to avoid certain aspects of PCC elections in Wales being subject to any future changes that the Assembly makes for future local government elections in Wales.
Hon. Members will be aware that the St David’s Day agreement provided that all aspects of the election of PCCs in Wales would remain the responsibility of the UK Government and Parliament. The Bill provides that PCCs, including their elections, are reserved matters, so the Government believe that the new clause is appropriate. It provides that the timing of ordinary elections of PCCs in England and Wales will cease to follow the timings of other ordinary elections in England and Wales. Instead, it provides for them to be held on the first Thursday in May in the year of an election.
The new clause also amends section 52 of the 2011 Act so that the franchise for PCC elections in Wales ceases to correspond directly to that for local elections and instead corresponds to the parliamentary franchise, with the exclusion of overseas electors and the inclusion of peers and EU citizens, who are entitled to vote in local government elections.
Wayne David (Caerphilly) (Lab)
My understanding is that the Government are currently considering a report from the Law Society on consolidating and simplifying electoral law. Given that PCCs are not a devolved matter, would it not be sensible for the Government to hold their fire and amend legislation on that, rather than introducing an amendment at this point?
Alun Cairns
The hon. Gentleman is clearly missing the purpose of what we are trying to do. We are seeking to devolve responsibility for local elections to Wales, but because the franchise for those elections is linked to that for the elections for police and crime commissioners, any change to the franchise for local government elections in Wales will have a consequential effect on that for PCC elections, which are non-devolved. We are therefore seeking to separate the franchises, so that the same people have the right to vote as is currently the case. That will give the Welsh Government the freedom to change the franchise for local government elections as they see fit, should they, for example, wish to change the voting age. It would not be appropriate for such changes to be extended to elections for police and crime commissioners. That is the purpose of the new clause.
Paul Flynn (Newport West) (Lab)
The right hon. Gentleman will remember that when elections for police and crime commissioners first took place, only 14% of the electorate voted; one polling station in my constituency achieved an unbeatable world record because no one voted there. When those elections were held on a day that coincided with other elections, 45% of the electorate voted. Is it not best that we and the Assembly ensure that, if possible, elections for police and crime commissioners are held on the same day as other elections?
Alun Cairns
I am grateful to the shadow Secretary of State for his comments. That would of course be the preferred option. It is only appropriate that PCC elections remain reserved and local government elections are devolved; that does not remove the requirement for both Administrations to co-ordinate where possible, but nor do we want to tie the hand of the Assembly should it see fit or need to change the franchise or timings of local government elections. I absolutely concur with his intentions, however.
Kevin Brennan (Cardiff West) (Lab)
The Secretary of State is making it clear that the reason for separating the franchises is the Government’s concern that the Assembly could then reduce the voting age for police and crime commissioners from 18 to 16. Does he have any other concerns about the franchise that have made him bring forward this new clause?
Alun Cairns
That will a matter for the Welsh Government. I am seeking to give them absolute freedom over local elections, within the limitations in the Bill, but it is not right that any changes they bring about—which may well change the franchise, if they believe that to be appropriate—should have consequences for PCC elections, for which the Welsh Government do not have responsibility as they are reserved under the Bill.
The new clause also makes consequential changes to the provisions in the 2011 Act for giving notice of a vacancy in the office of the police and crime commissioner and the provisions on the eligibility of candidates.
Amendment 27 is the second technical amendment in the group. It removes the reference to section 14(1)(f) of the Planning Act 2008 from the definition of “relevant nationally significant infrastructure project” in the planning reservation. That section applies only to England so the reference to it in the Bill is superfluous.
Amendments 33, 49, 52, 55 and 57 are all also technical and address an issue with the numerous references to the legislative competence of the Assembly across the statute book. Since devolution began, Acts of Parliament have often sought to define policies by reference to the devolution boundary involving expressions such as
“the legislative competence of the Assembly”.
For example, a power to make subordinate legislation could be conferred on the Secretary of State for provisions that are not within the legislative competence of the Assembly where the provisions are within such competence. In determining for the purposes of UK Acts what is and is not within the Assembly’s competence, proposed new section 108A and proposed schedules 7A and 7B to the Government of Wales Act 2006 set out the relevant tests. However, provisions such as paragraphs (8) to (11) of schedule 7B include a consent mechanism whereby a provision will be within competence only if the consent of a UK Minister has been given.
Those consent mechanisms exist so that there is an appropriate role for UK Ministers in relation to Assembly legislation that affects reserved authorities—I underline that that means reserved authorities only. However, that requirement for consent is not appropriate when considering UK legislation. For that reason, amendment 33 disapplies any requirement for a UK Minister’s consent when the legislative competence of the Assembly is being interpreted in the context of UK Parliament legislation.
Amendments 49, 52, 55 and 57 ensure that, where Acts of the UK Parliament refer to the Welsh devolution boundary, they do so in accordance with the new reserved powers model as inserted by the Bill. Those are sensible and practical technical changes to ensure that the new reserved powers model of devolution is interpreted and applied consistently in respect of all UK legislation.
The next amendments resulted from ongoing discussions with the Welsh Government, the Assembly’s Presiding Officer and the Assembly Commission.
Nick Thomas-Symonds (Torfaen) (Lab)
Before the Secretary of State moves on, I want to ask about the reserved powers model. He has mentioned the consistency of interpretation throughout the Bill, which is to be welcomed, but it would be useful if he could give at the Dispatch Box the commitment that it is the desire of the UK Government not to be going to the Supreme Court so much to argue about reserved powers. Let us have clarity going forward to avoid the number of clashes in the courts that there have been.
Alun Cairns
One key purpose of the Bill is to provide clarity of powers and responsibility. I want anyone who lives and works in Wales and outside to understand who is responsible for what. Therefore, the requirement to go to the Supreme Court to clarify individual points will be needless because of the clarity provided in the Bill.
Nick Smith (Blaenau Gwent) (Lab)
To go back to the earlier point about PCC elections, will they be allowed to be held in conjunction with other elections so that turnout is higher, and so that we have better elections as a result?
Alun Cairns
The hon. Gentleman makes an important point. There was significant progress in the turnout of PCC elections, as the hon. Member for Newport West (Paul Flynn) said, when they were on the same day as local elections. That continues to be the desired timing of PCC elections. The purpose of the amendments I mentioned relates to the franchise for those elections. The Welsh Government may want to make changes to the franchise or consider the timing of PCC elections. We would like them to continue to be on the same day as local government elections, as per the last PCC elections.
Mrs Madeleine Moon (Bridgend) (Lab)
I want to be clear on the separation of the franchises for PCC elections and for local government elections. Does the Secretary of State have concerns—they have perhaps not been expressed—that 16 or 17-year-olds are seen as fit and able citizens to vote in elections that deal with social services, planning and education, but that they are seen as not capable of voting in elections for police and crime commissioners? Is that what he is trying to suggest, because I would find that very worrying?
Alun Cairns
I suspect the hon. Lady has misunderstood the points I am trying to make. I am seeking to give the Welsh Government freedom in the franchise for local elections, but the current legislation ties the PCC franchise to that of local elections. Should the Welsh Government want to make a change in Wales because of their policies or desires to extend or amend the franchise within the powers conferred in the Bill, it should not be consequential on UK Government policy, and PCC elections are reserved.
It is for the Welsh Government to decide who is eligible to vote—the hon. Lady mentions age—and that is not tied or linked to the policies of the UK Government of the day, whoever they may be. I hope this proposed legislation will be settled for many years and decades to come. Extending or curtailing the franchise, in particular in relation to local elections in Wales, is a matter for the Welsh Government rather than the UK Government. Similarly, any consideration of the franchise for PCC elections is a matter for the UK Government. They are linked under current legislation. The amendments seek to separate that link, so that the responsibility lies with the respective legislature. I hope that clarifies the points raised about a number of amendments. The intention is to give greater freedom to the Welsh Government, so that if they want to change the franchise they are not restricted by the franchise that already exists for PCC elections from this place.
Amendments 14 to 18, 29 to 31, 44, 58 and 51 make a number of technical changes to arrangements in clause 12 and related schedules relating to financial control, accounts and audit. Since introducing the Bill, the Government have continued to discuss its financial control provisions with the Welsh Government and the Assembly commission. The amendments arise from those discussions. Amendment 16 inserts provision in section 124 of the Government of Wales Act 2006, equivalent to the provisions of the Scotland Act 1998, so that a sum paid out of the Welsh consolidated fund may not be applied for any purpose other than that for which it was charged or paid out.
Amendment 29 removes the prohibition on an Assembly Act, amending section 145 or 145A of the Government of Wales Act 1998, which makes provisions for examinations and studies by the Auditor General for Wales. Amendment 18 removes from the Comptroller and Auditor General reserve powers to carry out examinations regarding payments into and out of the Welsh consolidated fund, and the power to carry out value-for-money studies in relation to Wales public authorities. All amendments in this grouping are consequential on amendment 18, to remove the Comptroller and Auditor General’s powers over specific Welsh public authorities. With these amendments, the Auditor General for Wales will be the sole auditor of Welsh funds and Welsh public bodies. The Government have confirmed with the Comptroller and Auditor General that he is content with the removal of these powers, which have never been exercised.
Amendment 28 similarly results from discussions with the Welsh Government and removes the reservation for the Children’s Commissioner, whose post was established through the Children Act 2004. The UK Children’s Commissioner will be a reserved authority subject to the restrictions in paragraphs 8 and 10 of new schedule 7B. The effect of paragraphs 8 and 10 is that a provision of an Assembly Act cannot change the UK Children’s Commissioner’s functions unless the Secretary of State has consented. Removing the reservation will ensure that there are no barriers to the Assembly amending the functions or constitution of the Children’s Commissioner, provided the consent of the UK Government has been obtained.
Amendment 32 removes a needless provision from the Bill, paragraph 9(5) of new schedule 7B to the Government of Wales Act 2006. The amendment is being tabled in the interests of brevity and to avoid confusion, and at the suggestion of the Welsh Government. I am grateful to them for raising this point.
Amendments 34 to 37 remove from new schedule 3A several functions that are currently listed as concurrent, but have in fact either been repealed or transferred entirely to Welsh Ministers. Amendment 38 inserts into new schedule 3A concurrent functions provided for in clause 7 on the UK digital service in relation to Assembly elections and local government elections in Wales. The need to make the changes to new schedule 3A has been agreed as part of the constructive discussions on the Bill that my officials and I are having with the Welsh Government. The amendments are relatively minor and technical, but they are necessary to ensure the Bill delivers a clear and coherent devolution settlement for Wales.
Graham Jones (Hyndburn) (Lab)
The Minister mentioned the amendments that I tabled. Has he had representations from the Welsh Assembly and the Welsh Government? Has he followed the debate in the Welsh Assembly, and listened to Welsh Ministers’ comments? Has he factored that into the equation? There certainly seems to be some interest in some devolution in Wales.
Alun Cairns
I have had representations from the Welsh Government, and we are happy to continue a dialogue in order to refine the reservations. However, amendments 63 to 65 would extend extremely broad powers in this regard. We do not intend to accept them, because we do not believe that devolving the wider competence to which they refer would be the right course. They were not raised by the Silk commission or in the St David’s Day agreement. Nevertheless, in our usual pragmatic style, we are naturally happy to continue to discuss a range of issues. Indeed, the Bill has continually refined itself through its progress, from the Silk commission and the St David’s Day agreement to the draft Bill, and thence to the stage that we have reached today.
New clause 3, tabled by the hon. Members for Newport West, for Arfon, for Dwyfor Meirionnydd and for Carmarthen East and Dinefwr, and new clause 10 and amendment 67, tabled only by the Plaid Cymru Members, seek to probe the progress that the Government have made in implementing our commitment to devolve executive rail franchising functions. New clause 3 also seeks to press the Government to make a decision on whether to enable Welsh Ministers to invite public sector operators to bid for rail franchises for which they are the responsible franchising authority.
Christina Rees (Neath) (Lab/Co-op)
Does the Secretary of State agree that changes in railway powers are needed to put Wales where it should be, on a par with Scotland?
Alun Cairns
Negotiations are ongoing on the devolution of the franchise and how it can be achieved. If we accepted the new clauses and the amendment, that would set the whole franchise process back considerably. It has already been advertised, and we are anxious to press ahead as possible with the aim of reaching an agreement with the Welsh Government to fulfil the franchise obligations.
Albert Owen (Ynys Môn) (Lab)
The franchise would not change the Wales boundaries if we had a different model. We have a model in Wales, Dŵr Cymru Welsh Water, which is not for dividend, and which the Secretary of State fully supports. What is the difference between having our water run by a not-for-profit organisation, and having our railways run in that way?
Alun Cairns
A host of considerations, debates and discussions are taking place between the Wales Office, the Welsh Government and the Department for Transport, and we are conducting detailed negotiations over the franchise arrangements. We need to find suitable arrangements that will protect Welsh passengers and the accountability and responsibility of the Welsh Government, but let us not forget that that extends across the border. The Manchester-to-Cardiff line, for example, enters significant elements of England. The fact that a significant number of passengers will be domiciled or residing in English constituencies, and their right to seek redress through the parliamentary process, are details that we need to continue to discuss.
We are in a positive position with the Welsh Government, and I am anxious to continue on that basis. Accepting the new clauses and the amendment could undermine that positivity, and the franchising process. We intend to use other powers—under the Government of Wales Act 2006—to devolve franchising functions, in agreement with the Welsh Government. That would achieve many of the objectives that the new clauses and the amendment seek to achieve.
Nia Griffith (Llanelli) (Lab)
Will the Secretary of State explain clearly to us what the difference is between a German state-owned railway running a railway in Wales and a public body in England, or a Welsh Government-supported public body, doing so over the border?
Alun Cairns
The hon. Lady will be fully aware that the rail franchise is a Wales and borders franchise, and that a significant number of passengers cross the border. The line itself crosses the border. It may well be the will of the Welsh Government to set up a state-run rail operation, but that clearly has implications for reserved or English matters, and the United Kingdom Government will want to protect both Wales and England in the process. Positive discussions are taking place about how we can best secure an efficient, effective, operating railway in Wales. The notices from the Official Journal of the European Union have already been issued, and, all being well, the franchise will take effect in April 2018.
Ian C. Lucas (Wrexham) (Lab)
Is the Secretary of State really saying that it is OK for a German state-run organisation to run the railways in Wales, but not OK for a UK state-run organisation to do so?
Alun Cairns
I think that the hon. Gentleman is missing the point. If he has read the Silk report, he will recognise the complexities that even Silk has highlighted. In relation to those complexities, we are negotiating with the Welsh Government in a positive, constructive environment. The new clause and the amendment do not meet the technical requirements, because their provisions would effectively stop at the administrative border. As the hon. Gentleman knows, many of the trains running in and out of his constituency come to and from England. Accepting the new clauses and the amendment would not meet the criteria that he seeks to meet.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Will the Secretary of State give way?
Stephen Doughty
The Secretary of State still has not answered the question. Does he not believe that, at the very least, there should be a level playing field? It seems that while a German company can run rail services in Wales, a United Kingdom company—let alone a co-operative or a partnership—would be prohibited from running the Welsh rail franchise.
Alun Cairns
The OJEU advert has been made for the franchise. Good progress is being made and we wish to continue in the spirit in which the Welsh Government have made that advert—in the delicate and sensitive negotiations taking place, in the positive, constructive environment that already exists.
Nick Smith
Going back to the issue of financial controls and audits, I welcome the examinations in Wales of the economy, efficiency and effectiveness of sums paid out by the Welsh Consolidated Fund in Wales. That is a good thing. However, can the Minister confirm who will be responsible for audit studies and scrutiny of future large-scale projects where funds have been sourced from both Cardiff and Whitehall? I am thinking in particular of large-scale infrastructure projects that have got both Cardiff and Whitehall money.
Alun Cairns
The hon. Gentleman raises an important point. The adjustments to the auditing arrangements demonstrate the maturity of the organisation. Where the money from the Welsh Consolidated Fund is being used and is being spent, it is absolutely right that the Auditor General for Wales acts and scrutinises that. Where money is being used from UK departmental funds and the Treasury, it is right for the Comptroller and Auditor General to scrutinise and develop that. I will happily look at further detail in the issues the hon. Gentleman raises about the potential of joint projects, and I will come back to him in due course. But these adjustments have been made at the request of the Welsh Government, supported by the Auditor General for Wales and accepted by the Comptroller and Auditor General. I hope the satisfaction of those bodies will satisfy the concerns in the relevant question that has been raised.
So we do not agree with the proposal, but, as I have mentioned, positive progress has been made between the UK Government and the Welsh Government on the franchising arrangements. Outstanding issues remain, and the Welsh Government and UK Government have been working over recent months to get to a position that works for all passengers and both Governments.
In amendment 2 the hon. Member for Newport West proposes devolving powers over the community infrastructure levy. I am pleased to see that uptake of the levy in Wales has made some progress with three charging authorities now collecting the levy—Caerphilly, Merthyr Tydfil and Rhondda Cynon Taff. It is a key objective of national planning policy in both England and Wales that local planning authorities plan positively for infrastructure needs. The levy is an important mechanism for securing funding for infrastructure. This amendment ties with the calls of the Welsh Government, but I can also see that in many ways it makes sense to have a unified development levy system across England and Wales. Complexities across borders can hinder investment. I am not therefore minded to agree to the amendment. Much of the argument behind the calls for it has been that the policy does not work for smaller authorities, of which there are many in Wales, but I would point out that Merthyr Tydfil and Caerphilly are two of the smallest authorities in Wales and they have made effective use of the community infrastructure levy.
Amendment 60 seeks to establish Wales as a separate legal jurisdiction, an issue that was debated extensively as part of the pre-legislative scrutiny of this Bill and in Committee. In its second report, published in March 2014, the Silk commission recommended that there
“should be further administrative devolution in the court system”.
Nick Thomas-Symonds
On the issue of the separate legal jurisdiction, while it is obviously sensible with an emerging body of distinct Welsh law to monitor and review that going forward, does the Secretary of State agree that what we must be careful of with a separate legal jurisdiction now is imposing separate legal jurisdiction service requirements and other things that would lead to Offa’s Dyke becoming a barrier to access to justice?
Alun Cairns
The hon. Gentleman has made an important point and contributed in Committee to that effect, which considerably influenced a number of Members who had raised questions and concerns as the issue was debated. The hon. Gentleman’s expertise in this area should be well-heeded by those who want to see Wales flourish with a distinctive body of Welsh law, but who also recognise that the joint jurisdiction has worked and served well and effectively, and sends a clear message to potential investors and operators in Wales over the clarity and simplicity that is provided.
Many of the recommendations relating to administrative devolution in fact reflect the current position in Wales: the senior courts already sit in Wales, the administration of Welsh courts is overseen by HMCTS Wales, and court sittings are co-ordinated locally. The broader question of the case for devolving legislative responsibility was one of the key issues examined in the cross-party discussions under the St David’s Day process. Members will be aware that, as set out in the St David’s Day agreement, there is no political consensus to devolve justice. My party’s 2015 election manifesto made it clear that we would continue to reserve justice and policing. The Government are fully committed to maintaining the single legal jurisdiction of England and Wales. It has served Wales very well. It is also our firm view that it is the most effective, efficient and consistent way to deliver justice.
Mr Mark Williams (Ceredigion) (LD)
The right hon. Gentleman alluded to the Silk report, but Silk talks about the need to review the system. I appreciate the standpoint of the right hon. Gentleman and his party, but this is an evolving picture, and does that not necessitate the recommendation of the Wales Governance Centre’s recent report that we should at least have a commission to look at these matters over a period of time?
Alun Cairns
I am grateful to the hon. Gentleman for the way in which he has made his intervention, but I would still underline the stability of the existing system and the certainty it provides. The title of the St David’s Day agreement was “Powers for a purpose” and I am still seeking to understand what additional purpose would be provided to anyone living or working Wales should there be a separate jurisdiction.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The Secretary of State pointed to the administration of the courts in Wales and HMCTS, which has of course recently decimated court service provision across many parts of Wales, including the magistrates court in Carmarthen. When he talks about the benefits of a single jurisdiction, is that what he has in mind?
Alun Cairns
The consequence, of course, would be to spend more money on public sector administration such as that. That would preclude the new innovations the Ministry of Justice is seeking to introduce, and new innovations clearly provide new opportunities. There is the opportunity for new services to be brought closer to communities, should we look at how we can enhance and make the system more efficient.
Alun Cairns
I will come back to the hon. Member, but I want to finish my point.
I would remind Members that the whole debate around a separate legal jurisdiction came as a consequence of the necessity test in the draft Bill. The necessity test has been removed and the consequence could be that that call and demand for a separate jurisdiction should therefore fall. However, it is almost as though it has taken on a life of its own, but I still question the purpose, because I am still trying to find out what difference a separate legal jurisdiction would make for anyone living or working in Wales, other than uncertainty for investors when the reputation of the England and Wales legal system is recognised right around the world.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
But surely the purpose of a distinct legal jurisdiction would be the quality of justice provided in Wales, and at the end of the day this is the only legislature in the world which does not have a jurisdiction. This situation is crying out to be resolved, and if not now, when?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I know the Secretary of State has a lot to tell us, but I am sure he is aware that quite a lot of other Members would also like to speak. Will he bear that in mind?
Mr Deputy Speaker
The debate has to finish by 7.57 pm. I call the Secretary of State.
Alun Cairns
Thank you, Mr Deputy Speaker. I will of course make swift progress, as you have requested.
Amendment 61 seeks to devolve legislative competence to the Assembly over Welsh language broadcasting and other Welsh language media. The Welsh language is a critical part of our cultural heritage in Wales, and the Government’s continued commitment to Welsh language broadcasting is a key element of preserving the language. It is a source of great pride for me that S4C was established by a Conservative Government over 30 years ago, and I note the welcome from a number of stakeholders for the statements made by the BBC on the funding of the channel. This demonstrates our commitment to the Welsh language. The proposal is not recognised by stakeholders and operators in this field, and neither was it called for by the Silk commission or the St David’s day agreement.
Amendment 66 would remove the requirement for the Assembly to seek the consent of UK Government Ministers for an Act of the Assembly that would modify the functions of a reserved authority if such an Act related to a Welsh language function. It is obviously right that the Welsh Government should have the freedom to act in the interest of the Welsh language, but it is also right that when those policies or obligations extend to reserved matters, a UK Government Minister should also approve them. This means that the UK Government have the responsibility to see the Welsh language protected in reserved areas too. That is not the sole preserve of Members of the Welsh Assembly; we all have a responsibility towards the Welsh language.
Amendments 68 and 69 seek to provide that future Assembly legislation altering the specification or number of constituencies or regions, or the number of Members they return, would be subject to agreement by a majority of Assembly Members rather than a super-majority. I think the hon. Member for Newport West is being rather mischievous in tabling these proposals, particularly in the light of the news—which Members heard about today and which will be made public tomorrow—about the potential changes to constituencies that send Members to this place.
The Smith commission recommended a two-thirds majority for Scottish Parliament legislation seeking to change the franchise, the electoral system or the number of constituency or regional Members. This was provided for in the Scotland Act 2016 and the UK Government committed in the St David’s Day agreement to implement the same arrangements for Wales. I believe that I have explained clearly why I cannot support the Opposition amendments and, on that basis, I urge Opposition Members to withdraw them in due course.
Paul Flynn
This is one of those occasions to which we return every four or five years, and I am afraid that we are doomed to do so for the foreseeable future, because this is not the final word. We are all grateful for the amount of consensus on the Bill. Its main features are progressive and they will introduce stability and a new dignity to the Assembly, which is winning more respect for its position virtually every time we debate these Bills. There is general agreement on these measures, and I thank the Government for being pragmatic and generous enough to accept a reasonable number of our amendments. I also welcome the Secretary of State’s decision to appoint a young, thrusting MP as his new Parliamentary Private Secretary. It is nice to see that the spirit of giving youth a chance on our Front Bench has been extended to the hon. Member for Montgomeryshire (Glyn Davies) as well.
There is, however, a degree of timidity in the Bill. The Secretary of State’s responses to several of my hon. Friends’ points about Glas Cymru showed his failure to recognise the brilliant and unique initiative that was taken first at a meeting in this building and then honed elsewhere. It sounded too good to be true at the time, but it has recently celebrated its 15th anniversary. It has been going since 2001 and it has delivered all that it promised as a not-for-profit company that would pay dividends. It has delivered £1 billion to the Welsh economy every single year. It has also delivered below-inflation price increases, and by 2020, it will have done that for 10 successive years. Glas Cymru was hailed in 2001 by an international financial review newspaper as the best deal in the world, and it still is. We should celebrate that fact. It is still the only one of its kind; there is nothing else like it in the United Kingdom. On that basis, we hope to press new clause 3 to a Division.
Nia Griffith
I rise to speak to new clause 3, on railways, and to amendment 2, on the community infrastructure levy.
Back in our Labour manifesto for the 2011 Assembly elections, we put forward the idea of exploring the possibility that a not-for-profit organisation should have the option to bid for the Wales and Borders rail franchise, in the same way that Dŵr Cymru Welsh Water is owned by a not-for-profit organisation. Giving the Welsh Government further powers over rail transport brings decision making closer to people in Wales. Currently, the provisions of the Railways Act 1993 mean that it is not possible for a public sector body to bid for the franchise, which limits the options. Yet, ironically, a German state-owned company can operate the very same franchise.
Alun Cairns
I hope I can provide clarity and be helpful. Many interventions earlier—and what the hon. Lady is alluding to—related to Glas Cymru. Can I clarify that Glas Cymru is a private company with no shareholders? Nothing precludes Glas Cymru, or a company such as Glas Cymru, from bidding for the franchise, because the Railways Act 1993 prevents just Crown local authorities or associated bodies from bidding.
Nia Griffith
I thank the Secretary of State for his clarification.
The Bill offers an excellent opportunity to give the powers I mentioned to Wales, giving us the same powers as Scotland now has under the Scotland Act 2016. I do not accept the Secretary of State’s pretext for not accepting the new clause—that the time is wrong. This measure could be included in the Bill, whether or not sufficient time is available for bidding under any particular franchise timetable—the measure would be in the Bill, and it would be ready for whenever a new franchise timetable was put in place.
The Secretary of State has now clarified the point about Dŵr Cymru, which, of course, does serve customers in England—we need to remember that. I am sure that a Welsh-operated rail service could equally do so, whether operated by a public body, a not-for-profit organisation or a private company.
The Welsh Government have a strong track record of supporting rail services, from strengthening the Loughor bridge so that the dual track could be restored to ease congestion, to improving the valleys lines and pushing for electrification; supporting improvements to stations and surrounding areas, including integrated transport hubs, and developing plans for the Cardiff metro—not to mention supporting the Heart of Wales line, with exciting plans now to link the line to community regeneration, and looking at the feasibility of reopening the Carmarthen to Aberystwyth line. We now need to drive forward further connectivity across the Swansea Bay city region by improving services to and from Llanelli, Burry Port and Kidwelly and by developing the Swansea 9 lines services in the valleys around Swansea. I very much hope that the Secretary of State will rethink and will give the Welsh Government full powers and full options to look at every possibility for allowing not-for-profit companies, publicly owned bodies and so forth to bid for railway services in Wales.
On the community infrastructure levy, planning matters are wholly devolved, so it makes sense that the community infrastructure levy should be devolved too, given that it is an integral part of planning. The Secretary of State makes the point that developers could be put off by differences. Well, there are already some differences. The same argument was used against devolving building regulations, but they have now been devolved. It is up to the Welsh Government to think through whether particular differences will be a disadvantage or an advantage to Wales. Having the powers does not necessarily mean that they will have to make things different for the sake of being different; it is a discretion that is there to be used. It is crazy not to devolve this power when the CIL is so much part of the planning system.
Jonathan Edwards
Diolch yn fawr iawn, Mr Deputy Speaker. Amendment 67 and new clause 10, which are in my name and those of my parliamentary colleagues, would put the devolution of the Wales and Borders franchise clearly in the Bill, fulfilling the UK Government’s promise to do so. Before I get into my speech, may I say that I will gladly not say a word if the Secretary of State or the Minister intervenes to say that they will proceed with that promise and if they outline the legislative vehicle whereby these powers will be devolved to Wales?
Alun Cairns
We are negotiating with the Welsh Government over the use of a transfer of functions order under the 2006 Act.
Jonathan Edwards
The Secretary of State is telling us that he will introduce a statutory instrument once the negotiations are complete. In that regard, I will not be pressing the matter to a vote. I am glad that it is now on the record that he will keep that promise, which was made to the people of Wales in successive statements in the House by the former Prime Minister. Many people in Wales are slightly confused about why the promise has not been included in the Bill, but that is positive news, so I will cut my speech in half.
I would, however, like to raise an associated point about the way in which the franchise may be altered—or, to put it another way, butchered—by siphoning off the more lucrative routes. The Secretary of State is fully aware that those lucrative routes are very valuable to the franchise. The Welsh Government have to put in a huge subsidy, as I understand it, and £700 million was paid between 2011-12 and 2014-15. If those routes are taken away from the franchise, the public subsidy paid by the people of Wales for that franchise will increase significantly.
Alun Cairns
I beg to move, That the Bill be now read the Third time.
I start by thanking right hon. and hon. Members for their participation in our debates as the Bill has passed through the House. The scrutiny has been robust, and the Bill will be in a much better place as it arrives in the other place. The number of positive and constructive amendments that have been agreed today stand as testimony to that scrutiny. I thank my officials and those in other Departments in Whitehall for their contributions and support.
I thank the First Minister and the Presiding Officer in the Assembly for their continued constructive engagement in the process. Our discussions have run alongside those which have taken place in Parliament and have resulted in the Bill being amended to address concerns that they raised. I will continue to work with the First Minister to ensure his full support for the Bill, and to enable the Welsh Government to bring forward a legislative consent motion as early as possible to secure the Assembly’s agreement to the Bill.
The Bill has its origins in the work that was conducted by the commission on devolution in Wales, chaired by Sir Paul Silk. Its second report, published in 2014, was significant in setting the course for a clearer, stronger and more stable devolution settlement for Wales. I pay tribute to Sir Paul and the members of the commission for their work.
I thank my predecessors as Secretary of State, including my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) for her work to establish the commission, and my right hon. Friend the Member for Clwyd West (Mr Jones) for taking forward the recommendations of the commission’s first report through to the Wales Act 2014, and for overseeing the second stage of the commission’s work. The St David’s Day process was taken forward by my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), whose contribution to the Bill was also significant. He sought to identify the recommendations of the Silk commission’s report which there was a cross-party consensus to implement. The Government committed to implementing the agreement in full.
I also give thanks to my hon. Friend the Member for Monmouth (David T. C. Davies), the Chairman of the Welsh Affairs Committee, and the members of the Committee for their scrutiny of the draft Bill published last year. The Bill before us today is stronger as a result of the Committee’s work. I extend my appreciation to the Assembly’s Constitutional and Legislative Affairs Committee for its scrutiny of the draft Bill.
The Bill meets the commitments in the St David’s Day agreement. It delivers a devolution settlement for Wales that is clearer, fairer and stronger, and it delivers powers for a purpose. It delivers a historic package of powers to the National Assembly that will transform it into a fully fledged Welsh legislature, affirmed as a permanent part of the United Kingdom’s constitutional fabric, enhancing and clarifying the considerable powers it currently has. The Assembly is accountable to the people of Wales, with powers over taxes that will make it responsible not only for how money is spent in Wales, but for how it is raised. The Bill devolves further powers that will enable the Welsh Government to make a real difference on the things that matter to the people of Wales. The Assembly will be able to decide on, for example, the planning regime for major strategic energy projects, and whether fracking should take place.
The Bill introduces a reserved powers model that addresses the glaring deficiencies in the current settlement and establishes a clear line between those subjects that are devolved to the Assembly and those that are the responsibility of the UK Parliament. Simply, anything not reserved to Parliament is devolved to the Assembly. That provides clarity for anyone living or working in Wales not only on who is responsible for what policy and who should claim credit for the right policy decisions, but on who is accountable for policies that do not deliver as promised. As the Bill has moved through the House, our debates have focused on ensuring that that devolution boundary is the right one and that the reservations are appropriate.
I am sure hon. Members will recognise that the Bill has come a long way from the one that was published in draft form just over a year ago. The list of reservations is shorter and more succinct, with a clearer rationale for the inclusion of each. Importantly, the Assembly will be able to create offences to enforce its legislation. We are also fully committed to maintaining the single legal jurisdiction that has served Wales so well. Assembly legislation can be accommodated within the single jurisdiction of England and Wales.
As part of the clearer boundary of devolved and reserved matters established in the Bill, the Bill draws a clear line between those public bodies that are the responsibility of Welsh Ministers and the Assembly, and those that are the responsibility of the UK Government and Parliament. The Bill provides clarity on who is responsible for which authority.
In conclusion, the powers in the Bill together usher in a new era of devolution to Wales: one which draws a line under the constant squabbles over where powers lie; one in which it is clear who should be held to account for the decisions on public services that people use every day; and one in which the Welsh Government are truly accountable to the people of Wales. A manifesto commitment has been delivered that will lead to a stable devolution within a strong United Kingdom. I commend the Bill to the House.
Boundary Commission for Wales: Reappointments
Alun Cairns Excerpts(8 years, 3 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Wales (Alun Cairns)
I should like to inform the House that I have made the following reappointments under Schedule 1 to the Parliamentary Constituencies Act 1986:
Mr Paul Loveluck CBE reappointed as a member of the Boundary Commission for Wales, effective from 4 October 2016 until 3 October 2020, and
Professor Robert McNabb, reappointed as a member of the Boundary Commission for Wales, effective from 4 October 2016 until 3 October 2020.
[HCWS140]
Oral Answers to Questions
Alun Cairns Excerpts(8 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Christina Rees (Neath) (Lab)
4. What assessment he has made of the economic effect on Wales of UK membership of the EU.
The Secretary of State for Wales (Alun Cairns)
The British people have voted to leave the European Union, and my right hon. Friend the Prime Minister has made it clear that their will must be respected and delivered. We are now preparing for a negotiated exit from the EU, which will involve close engagement with all the devolved Administrations to ensure that the interests of all parts of the United Kingdom are protected and advanced.
Mr Jones
Structural funding for Wales is guaranteed until 2020. Given the substantial budgetary savings that will be made after British withdrawal from the EU, can my right hon. Friend confirm that his office will make every effort to ensure that the current level of funding will continue until at least that date?
Alun Cairns
The Government have a strong record in guaranteeing funds for Wales, most notably the Barnett floor, which was ignored for 13 years by Labour. That demonstrates that we will work hard in prioritising the areas of the UK that rightly need and deserve support.
Christina Rees
Has the Minister had talks with major employers in Wales such as Ford, Airbus, GE, Toyota and Tata to find out what their investment intentions are following the vote to leave the EU?
Alun Cairns
The hon. Lady raises an important question. Within a week of the Brexit referendum I met a number of business leaders in Cardiff and last week I met a number of business leaders in north Wales. I was struck by their pragmatism and approach—the positivity they were showing. One of the most positive quotes was that entrepreneurs “thrive on change.” They recognise that we are not turning our backs on Europe, but opening up new markets across the globe.
David T. C. Davies (Monmouth) (Con)
Does the Secretary of State agree that every single Government Minister who has spoken on this issue has expressed their desire to ensure spending remains at exactly the same levels in Wales as it always has done, and that that shows this Government’s commitment to the people of Wales?
Alun Cairns
My hon. Friend makes an important point and allows me to underline once again the positive financial commitments this Government have made to Wales. In addition to the 115% funding for the Barnett floor that we have introduced, there is a £2.8 billion investment in electrification and £500 million for a city deal, on top of a range of other projects—UK taxpayers’ money being invested in Wales on top of the Barnett consequentials.
Nia Griffith (Llanelli) (Lab)
Given that Wales will no longer receive funding through the European regional development fund, which is allocated on objective needs-based criteria, and that Holtham saw the Barnett floor as a temporary transition measure, what consideration is the Secretary of State giving to developing a clearly needs-based formula for allocating funding to Wales?
Alun Cairns
There were many campaigns for a Barnett floor but it was only this Government who delivered on that. On European funds, we have not yet concluded our negotiating position, but simply replacing what are currently EU funds with another source from Westminster misses the point: the EU referendum sent out a number of messages, and those areas that receive most EU funds were the areas, sadly, that voted most strongly to leave the EU. We need to look at models of regional aid in a different way.
Hywel Williams (Arfon) (PC)
The debate on our future in the EU was very badly informed. Will the Secretary of State convene an independent inquiry to identify, quantify and publish the losses, and indeed any benefits, to Wales from leaving the EU and the steps he can take, within his powers, to safeguard our national interest?
Alun Cairns
A European Union unit is being set up in Whitehall, which will consider all the implications for my right hon. Friend the next Prime Minister in order to form judgments and direct Government policy, but we must recognise that if any country can make a success of leaving the EU it is the United Kingdom, with its proud history as a global trading nation.
Hywel Williams
I did ask about the Secretary of State’s Department. Anyway, I am concerned about the loss of common agricultural policy and convergence funding, and of research moneys to universities, and about the lost opportunities for young people to live, work and study abroad. But also, being Welsh and European, I feel the closing of our horizons towards a parochial little Britainism. What more can he do to ensure the future of our Welsh cultural London bypass to the rest of our continent?
Alun Cairns
I am disappointed by the hon. Gentleman’s question. He will understand that I have a close working relationship with the Welsh Government and with the First Minister in particular. What is in Wales’s interest is in the United Kingdom’s interest, and I am determined to do everything possible to maintain that positive relationship as we negotiate to leave the European Union.
Paul Flynn (Newport West) (Lab)
The Secretary of State’s answers have been predictably vacuous and ambiguous. I want to give him a chance to boost his promotion hopes today by flouting all parliamentary traditions and giving a straight answer. Brexit is perilous to Wales, especially to the steel industry. There will be an immediate loss of £600 million, and there could be further losses later. The simple question—a one-word answer will do—is this: will he guarantee that under Brexit Wales will not lose any of the funding that it has now?
Alun Cairns
I can guarantee that Wales will get its fair share, through the Barnett floor and all the other means that I have highlighted. My party can give certainty of leadership with a strong visionary negotiating stance as we approach our departure from the European Union. It is quite obvious that we cannot have that certainty of leadership from the Labour party.
Karen Lumley (Redditch) (Con)
3. What assessment he has made of the effectiveness of steps taken to rebalance the economy in Wales.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
5. What assessment he has made of the potential effect of the outcome of the EU referendum on regeneration projects in Wales.
The Secretary of State for Wales (Alun Cairns)
As Secretary of State I am determined to maintain our recent economic success and to ensure that we manage our transition to the new arrangements in a calm and measured way. As we negotiate our way out of the EU, a whole range of decisions will have to be made in due course.
Gerald Jones
The A465—the heads of the valleys road—runs through my constituency and has historically had a bad safety record—[Interruption.]
Alun Cairns
The hon. Gentleman makes an important point. I underline that we remain full, active members of the EU, with all the benefits and obligations that that brings, for at least two years. The project he highlights is one of the more successful EU-funded projects, but not all of them were as successful but had questionable strategies and woolly outcomes. We need to reassess how we support regional aid programmes.
Susan Elan Jones (Clwyd South) (Lab)
Can the shadow Secretary of State—sorry, I mean the Secretary of State, who is just a shadow in his own party—give an absolute commitment that no regeneration projects will lose out as a result of the disastrous Brexit result?
Alun Cairns
I can guarantee that for the next two years at least no EU-supported project will lose out. We have of course not yet concluded our negotiating position, and simply replacing one source of funding with another misses the point. The EU referendum sent out a clear message from the communities that are purported to benefit the most from European aid that they simply did not want what was being offered to them.
Neil Parish (Tiverton and Honiton) (Con)
6. What assessment the Government have made of the potential contribution of tidal lagoons to energy production in Wales.