Strengthening the Union as it Relates to Wales (First sitting)

Ben Lake Excerpts

Tuesday 18th January 2022 General Committees

[Ben Lake (Ceredigion) (PC)]

Diolch yn fawr iawn, Mr Davies. Mae’n bleser i wasanaethau dan eich cadeiryddiaeth chi a hefyd i wneud hynny drwy’r Gymraeg heddiw.

Rwy’n croesawu teitl y ddadl heddiw oherwydd ymddengys ei fod e’n cydnabod bod yna ddiffygion yn yr Undeb yn ei bresennol wedd a bod angen ei gryfhau er mwyn gwasanaethu pobl Cymru yn well. Felly mae gennym gyfle i drin a thrafod gwendidau polisïau’r Llywodraeth Brydeinig, ond hefyd efallai y cawn gyfle i ystyried y llwybrau sy’n agored i’n cenedl wrth i ni edrych tua’r dyfodol. Mae un llwybr wedi’i osod ar seiliau bregus y setliad cyfansoddiadol presennol, gwaddol cyfuniad anffodus o echdynnu economaidd ac ymyleiddio gwleidyddol. Mae’r llwybr yma’n gofyn i ni israddio ein hadnoddau a’n huchelgeisiau fel cenedl er mwyn gwasanaethu blaenoriaethau’r Undeb yn lle, a derbyn nad oes modd gwella ar y status quo.

Y llwybr arall, a bydd neb efallai’n cael syndod o glywed hyn, y llwybr yr hoffwn i ac—efallai bydd hyn yn syndod i rai pobl—yr hoffai nifer gynyddol o bobl ledled Cymru ei gymryd, yw’r llwybr sy’n arwain at annibyniaeth—llwybr llawn cyfle sy’n gofyn i ni ddyheu am ffyrdd tecach a mwy cynhwysol o lywodraethu, ond yn bwysicaf oll, yr her i gymryd y cyfrifoldeb dros wireddu hynny dros ein hunain.

Rwyf am ganolbwyntio fy sylwadau heddiw ar feysydd allweddol y dylai rhai sy’n credu yn yr Undeb weithredu arnynt ar fyrder os ydynt am gryfhau’r Undeb fel y mae teitl y ddadl yn crybwyll, oherwydd ar hyn o bryd, gwelwn eu bod nhw’n prysur danseilio’r berthynas rhwng cenhedloedd ynysoedd Prydain.

Yn fy marn i, mae problemau’r Undeb ar ei wedd bresennol yn deillio yn syml iawn o adeiladwaith diffygiol. Gwelwn Undeb rhwng sawl cenedl a rhanbarth yn cael ei ddominyddu gan un genedl ac un Senedd. Mae’r fath oruchafiaeth yn golygu y caiff hawliau a chyfrifoldebau’r cenhedloedd eraill eu hanwybyddu yn aml. Mae anghymesuredd y setliadau datganoli gwahanol ond yn gwaethygu’r sefyllfa, ond does dim awgrym bod gan y rhai sydd am weld dyfodol i’r Undeb unrhyw fwriad, na hyd yn oed awydd, i ddiwygio’r setliad cyfansoddiadol presennol er mwyn mynd i’r afael â’i ddiffygion.

Ystyriwch am eiliad sut y mae San Steffan wedi canoli grym yn gynyddol yn Whitehall ers Brexit, ac wedi ceisio uno gwledydd Prydain trwy orfodaeth yn hytrach na meithrin y cydweithrediad hynny rhwng ei Llywodraethau. Mae ond angen i ni edrych ar Ddeddf y Farchnad Fewnol 2020 neu’r Bil Rheoli Cymorthdaliadau am enghreifftiau o hyn. Mae’r ddau wedi cael eu gorfodi ar Gymru. Yn wir, wrth gyfeirio at yr ail fesur hwnnw, dywedodd Gweinidog Cyllid Llafur Cymru:

“Er gwaethaf awgrymiadau gan Lywodraeth y DU bod ymgysylltu manwl wedi’i gynnal, nid yw’r Bil ond yn adlewyrchy buddiannau cul Llywodraeth y DU.”

Pan wrthododd y Senedd y cynnig cydsyniad deddf-wriaethol, anwybyddodd San Steffan ei gwrthwynebiad yn llwyr. Felly yn hytrach na chydweithio, yr hyn a welwn yw deddfwriaeth sy’n tanseilio’n uniongyrchol alluoedd y gwledydd datganoledig i wella bywydau pobl yng Nghymru.

(Translation) It is a pleasure to serve under your chairmanship, Mr Davies, and to be able to do so through the medium of Welsh.

I welcome the title of today’s debate, because it appears to recognise that there are shortcomings in the Union in its current format and that there is a need for it to be strengthened in order to serve the people of Wales better. We have an opportunity to deal with the weaknesses of the UK Government’s policies, and perhaps an opportunity to consider the pathways that are open to our nation as we look to the future. One pathway is clearly set on the vulnerable foundations of the current constitutional settlement, with an unfortunate situation of political leadership. This pathway requires us to lower our ambitions, to follow the Union’s principles, and to accept that we cannot continue with the status quo.

The other pathway, which perhaps nobody will be surprised to hear is the pathway that I and an increasing number of people in Wales and the UK would like to take, leads towards independence, an opportunity to look for fairer and more comprehensive ways of governing and, most important, the challenge of taking responsibility for realising that for ourselves.

I will focus my comments on the key areas that those who believe in the Union should take strong action on as a matter of urgency if we are to strengthen the Union, as the title of the debate suggests, because at the moment, we can see that they are undermining the relationship between the nations of the British isles.

In my view, the problems of the Union in its current format emanate from a flawed structure. We are dominated by one nation and one Parliament, and such supremacy means that the rights and responsibilities of the other nations are frequently being disregarded. An imbalance in the different devolution settlements exacerbates the situation, but there is no suggestion that those who want to strengthen the Union have any intention or desire to reform the current constitutional settlement in order to address the flaws in it.

Consider for a moment how Westminster has increasingly centralised power in Westminster since Brexit and sought to unite the nations of Britain by enforcement, rather than nurturing collaboration between its Governments. We need only to look at the United Kingdom Internal Market Act 2020 and the Subsidy Control Bill, both of which are being forced on Wales. Indeed, referring to the second piece of legislation, the Welsh Labour Finance Minister said:

“Despite suggestions from the UK Government that detailed engagement has been undertaken, the Bill only reflects the narrow interests of the UK Government.”

When the Senedd rejected the legislative consent motion, Westminster disregarded its opposition. Rather than collaboration, what we see is legislation that directly undermines the abilities of the devolved nations to improve the lives of people in their countries.

[Hywel Williams]

Onid ydy hyn yn codi allan o ryw ddryswch sylfaenol sy’n cael ei arddangos gan y Llywodraeth ac, yn wir, gan yr Wrthblaid swyddogol? Hynny yw, eu bod nhw’n aml iawn yn cymysgu buddiannau Prydain a Lloegr. Dw i’n meddwl y gwnaethon ni glywed Aelod anrhydeddus dros De Clwyd yn nodi hynny gynnau, pan ddywedodd o “Llywodraeth Lloegr”. Does yna’r un!

(Translation) Does not this situation arise from a fundamental confusion on the part of the Government and, indeed, the official Opposition? That is, they often confuse the interests of Britain and England. I think we heard the hon. Member for Clwyd South indicate as much when he referred to the “English Government”. There is no English Government.

[Ben Lake]

Rwy’n ddiolchgar iawn i’m Ffrind anrhydeddus am ei sylwadau. Yn wir, rwy’n un o’r rheiny sy’n credu’n fawr y byddai’r Undeb, os ydyw e am barhau tuag at y dyfodol, yn buddio’n llwyr o gael Llywodraeth i Loegr a Senedd i Loegr, oherwydd ar hyn o bryd does dim sefydliad o’r fath yn bodoli ac mae’n rhaid i’r Senedd Brydeinig a’r Llywodraeth Brydeinig wisgo dwy het. Rwy’n bell o fod yn berffaith, ond rwy’n credu ei bod hi’n anodd iawn i unrhyw Lywodraeth gyfiawnhau dwy swydd mor bwysig ar yr un pryd.

(Translation) I am grateful to my hon. Friend for those comments. I am one of those who strongly believes that the Union, if it is to continue in the future, would really benefit from there being a Government and a Parliament for England. At the moment, there is no such institution, and the UK Government and Parliament have to wear two hats. Despite the fact that I am far from perfect, I think it is difficult for any Government to justify two such important jobs at the same time.

--- Later in debate ---

[The Chair]

I have not said anything.

[Ben Lake]

Thank you, Mr Davies. I am grateful to the hon. Member for Bridgend for that intervention. I acknowledge the truth of what he is saying, in that a number of the Wales Acts have been introduced in the last 10 years under Conservative Administrations, although I would point out that we still have an asymmetric devolution settlement in which Wales does not enjoy the same level of autonomy and discretion over policy areas that Northern Ireland and Scotland take for granted. Indeed, even certain city regions in England have greater discretion and influence over certain policy areas than the Welsh Government, such as policing. I will come on to that point in a moment.

Y meysydd polisi sy’n amlygu canlyniadau anffodus yr ymagwedd hon fwyaf yw polisi isadeiledd trafnidiaeth a llywodraethiant Ystad y Goron yng Nghymru. Os trown ni’n gyntaf at ein rheilffyrdd, mae’n ffaith bod nifer o aelodau ar ddwy ochr y Pwyllgor wedi crybwyll yn y gorffennol bod rheilffyrdd Cymru yn cael eu hesgeuluso’n ddifrifol dan y setliad presennol a bod gwaith adnewyddu a gwella’r rhwydwaith yn dioddef o danariannu sylweddol. Mae gan Gymru tua 11% o rwydwaith rheilffyrdd y Deyrnas Unedig, ond ar gyfartaledd mae’n derbyn dim ond tua 6% o wariant Prydeinig ar weithrediadau, gwaith cynnal a chadw ac, yn bwysig iawn, gwaith adnewyddu. Mae Llywodraeth Cymru wedi cyfrifo y bydd rheilffyrdd yng Nghymru yn dioddef tanfuddsoddiad o tua £2.9 biliwn yn y cyfnod rhwng 2001 a 2029 am y rheswm hynny.

Nid yw’r ffigurau hyn yn syndod, wrth gwrs, os cofiwn ni fod Llywodraeth y Deyrnas Unedig wedi ymrwymo i fuddsoddi jyst £350 miliwn yng Nghymru yn y cyfnod hwn ar welliannau o gymharu â thua £50 biliwn ledled y DU. Yn wir, bu Llywodraeth Cymru yn go blwmp ac yn blaen am y sefyllfa, yn dadlau bod methiannau’r Undeb yn y maes hwn wedi arwain at ddibrisio a thanfuddsoddi yn rhwydwaith rheilffyrdd Cymru

“o gymharu â’r rhwydwaith yn Lloegr.”

Mae hyn yn amharu nid yn unig ar yr economi ond hefyd ar ein gallu i ddatgarboneiddio ein rhwydwaith trafnidiaeth.

Efallai y cawn yr enghraifft gliriaf o fethiant, ac yn wir ffolineb, y setliad presennol yn HS2, prosiect fydd, yn ôl un adroddiad gan Lywodraeth Prydain—ac rwy’n eithaf siŵr mai’r Trysorlys ei hun wnaeth gomisiynu adroddiad gan KPMG—yn golygu y byddai Cymru’n gweld colled o tua £150 miliwn y flwyddyn mewn allbwn economaidd. Ond er gwaetha’r ffaith yma, mae’r Trysorlys yn parhau i adnabod y prosiect fel un sydd o fudd i Gymru a Lloegr. O ganlyniad i hyn, mae Cymru mewn perygl o golli rhwng £4 biliwn a £5 biliwn mewn buddsoddiad yn yr isadeiledd trafnidiaeth, a hynny oherwydd yr ymdriniaeth a gaiff gan y Trysorlys.

(Translation) The main policy areas that manifest the unfortunate results of this attitude are transport infrastructure and the Crown Estate in Wales. A number of Members on both sides of the Committee have suggested that Welsh railways are being seriously neglected by the current settlement and that refurbishment work really lacks funding. Wales has around 11% of the UK rail network but on average receives only about 6% of the current expenditure on maintenance and, importantly, refurbishment and renewal work. The Welsh Government have estimated that railways in Wales will suffer an underinvestment of about £2.9 billion between 2001 and 2029 for that reason.

Those figures are no surprise if we bear in mind that the UK Government committed to investing around £350 million in Wales in that period on improvements, compared with around £50 billion across the United Kingdom. The Welsh Government were quite clear about the situation, arguing that failings of the Union in that regard had led to the devaluing of and underinvestment in the Welsh rail network

“compared to the network in England.”

That impairs not only the economy but our ability to decarbonise our transport network.

A clear example of the failure, and indeed stupidity, of the current settlement is the HS2 project. The UK Government said—I am sure that it was the Treasury that commissioned a KPMG report—that Wales could see a loss of £150 million a year in economic output. But despite that, the Treasury continues to recognise the project as one that is beneficial to Wales and England. Wales is in danger of losing between £4 billion and £5 billion in investment in transport infrastructure as a result of the treatment that it receives from the Treasury.

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

Rwy’n ddiolchgar i’r Aelod anrhydeddus am ildio. Ydy e’n derbyn bod Network Rail wedi dweud bod Cymru, yn enwedig gogledd Cymru, yn mynd i elwa o’r ffaith bod ni’n mynd i gael cysylltiadau gwell gyda Llundain oherwydd HS2?

(Translation) I am grateful to the hon. Gentleman for giving way. Does he accept that Network Rail has said that Wales—particularly north Wales—was going to benefit from better connections with London as a result of HS2.

[David T. C. Davies]

Sorry, Mr Davies; that is not normally a problem I suffer from. Network Rail has said to us that it believes north Wales will benefit greatly from the better connections with London that will come about as a result of HS2.

[Ben Lake]

Rwy’n ddiolchgar iawn i’r Gweinidog am ei ymyriad. Mae Plaid Cymru wedi cydnabod o’r cychwyn cyntaf y byddai rhai o welliannau HS2—pe baen nhw’n cael eu gwireddu yn llawn, wrth gwrs—yn fuddiol i ogledd Cymru. Ond os edrychwn ni at Gymru yn ei chyfanrwydd, mae’r adroddiad a gomisiynwyd gan y Trysorlys ei hunan yn dangos y bydd colled net o £150 miliwn y flwyddyn mewn allbwn economaidd. Mae’n rhaid i ni ystyried yr effaith mae hyn yn ei gael a bod y Trysorlys yn gostwng y ffactor cymaroldeb a’r gwariant ar gyfer yr Adran Drafnidiaeth yn y datganiad cyllid.

Dyna pam rwyf am annog Aelodau yma heddiw i wrando ar argymhelliad y Pwyllgor Materion Cymreig y dylai HS2 cael ei adnabod fel prosiect sy’n buddio Lloegr yn unig. Fe fyddwn i’n mynd yn ymhellach, ac annog pobl i gefnogi datganoli cyfrifoldeb dros y rheilffyrdd i Senedd Cymru. Yn wir, yn ôl Canolfan Llywodraethiant Cymru, pe byddai’r cyfrifoldeb hwn eisoes wedi ei ddatganoli i Gymru, byddai buddsoddiad ychwanegol o hanner biliwn o bunnoedd wedi bod rhwng 2011 a 2020.

Enghraifft arall o ddiffyg yn y setliad presennol yw triniaeth yr Undeb o Ystad y Goron yng Nghymru. Er gwaetha’r ffaith y datganolwyd rheolaeth Ystad y Goron i’r Alban yn 2017, mae San Steffan yn cadw rheolaeth dros yr ystad yng Nghymru. Mae hyn yn golygu bod refeniw o adnoddau naturiol Cymru yn cael ei drosglwyddo i’r Trysorlys yn hytrach nag aros yn y cymunedau lle cânt eu cynhyrchu. Ddoe, fe welon ni bod Ystad y Goron yr Alban wedi cwblhau ei arwerthiant diweddaraf o hawliau gwely’r môr i ddatblygwyr ynni gwynt. Trwy 17 o brosiectau, mae’r Alban wedi sicrhau bron i £700 miliwn ac wedi denu consortiwm byd-eang o ddatblygwyr i fuddsoddi ymhellach yng nghadwyn gyflenwi yr Alban. Er bod ein hadnoddau adnewyddadwy ni yn llai yng Nghymru, dangosodd y rownd ddiweddaraf o arwerthiannau yr hyn sy’n bosibl yn ein hadnodd ynni gwynt morol. Gwelwyd gwerth portffolio morol Cymreig Ystad y Goron yn cynyddu’n sylweddol o tua £50 miliwn i dros £500 miliwn.

Mae Plaid Cymru wedi gwthio ers tro am ddatganoli Ystad y Goron ac rwy’n falch cael dweud bod y cytundeb cydweithredu rydym wedi’i gyrraedd gyda Llywodraeth Lafur Cymru yn cynnwys sicrhau ei ddatganoli fel prif amcan.

(Translation) I am grateful to the Minister for his intervention. Plaid Cymru has recognised from the very outset that HS2 improvements, if they were fully realised, would be beneficial to north Wales. For Wales in its entirety, however, the report commissioned by the Treasury shows that there will be a net loss of £150 million a year in economic output. We have to consider the impact all of that, and the fact that the Treasury depleted the comparative factor for Department for Transport expenditure in the finance statement.

That is why I encourage Members to listen to the Welsh Affairs Committee recommendations that HS2 be recognised as a project that benefits only England. I would go a step further and encourage people to support the devolution of responsibility for the railways to the Senedd. According to the Wales Governance Centre, if that responsibility had already been devolved to Wales, there would have been additional investment of half a billion pounds between 2011 and 2020.

Another flaw in the current settlement is the treatment in the Union of the Crown Estate in Wales. Despite the fact that control of the Crown Estate was devolved to Scotland in 2017, Westminster retains control of the Crown Estate in Wales, meaning that revenue from natural resources in Wales is transferred to the Treasury rather than remaining in Wales. Yesterday, the Crown Estate in Scotland completed its latest sale, with 17 projects that will bring in £700 million, and attracted a global consortium of investors to invest further in supply in Scotland. Even though our renewable resources are fewer in Wales, that latest round of sales shows what is possible in our marine energy. Welsh Crown Estate marine energy increased in value from £50 million to more than £500 million.

Plaid Cymru has pushed for some time for the devolution of the Crown Estate, and I am pleased to say that the agreement we have reached with the Labour Welsh Government includes devolution as one of its main objectives.

[Stephen Crabb]

Will the hon. Gentleman give way?

[Ben Lake]

I will, but it will be the last time.

[Stephen Crabb]

The hon. Gentleman is making a really interesting point about the Crown Estate and the Scottish Government’s announcement yesterday about the slew of investment going into offshore wind projects. He will know, as he also serves on the Welsh Affairs Committee, that we have the same opportunity in west Wales. Why does he think that devolving the Crown Estate to Wales will unlock investment in the Welsh offshore wind fields faster? What is different about an independent Welsh Crown Estate that it would change that?

[Ben Lake]

The right hon. Gentleman raises an important point. Simply put, I think we will see quicker action. When action is taken, we can realise some of the abundant potential we have on the coast of his wonderful constituency in south-west Wales. We will see those benefits being retained closer to the community that he represents and closer to the communities in which the revenues are generated.

Rydw i’n brysur rhedeg allan o amser, felly wnai beidio cymryd unrhyw ymyriadau pellach, ond hoffwn sôn am ddwy broblem arall sydd yn codi o’r setliad presennol. Yr un pennaf yw’r hon sy’n ymwneud â’r system gyfiawnder. Tra bod cyfiawnder yn Lloegr, yr Alban a Gogledd Iwerddon wedi’i hintegreiddio yn llawn i bolisïau cynhenid y gwledydd hynny, yng Nghymru, cedwir pwerau dros gyfiawnder yn San Steffan. Dywedodd y Comisiwn ar Gyfiawnder yng Nghymru, dan arweiniad yr Arglwydd Thomas, nad oedd unrhyw sail rhesymegol i’r sefyllfa presennol a bod y sgil effeithiau yn rhai anffodus dros ben.

Rydym eisioes wedi clywed gan yr Aelod anrhydeddus dros Caerdydd Canolog bod tangyllido cronig gan San Steffan mewn gwasanaethau cyfiawnder wedi golygu bod Cymru wedi gorfod llenwi’r bwlch a adawyd gan yr Undeb. Ond yn waeth na hyn, gwelwn fod polisïau San Steffan wedi cyfrannu at lefelau anghynaladwy o garcharu a olygai yn 2019 bod gan Gymru y cyfraddau carcharu uchaf yng ngorllewin Ewrop. Mae’r setliad cyfansoddiadol presennol, felly, wedi methu mewn dyletswydd sylfaenol: y dyletswydd hynny i sicrhau mynediad teg a chyfartal i gyfiawnder. Gan ddod i’r casgliad unfrydol bod pobl Cymru ar eu colled yn y system bresennol, argymhellodd y comisiwn yn 2019 y dylid datganoli cyfiawnder deddfwriaethol llawn ynghyd â phwerau gweithredol i Gymru. Fel dywedodd y Comisiwn Thomas, yn eithaf huawdl yn fy marn i:

“Mae angen gwell system ar bobl Cymru, ac maent yn haeddu hynny.”

Nid ynys yw cyfiawnder a dylid ei integreiddio â pholisïau ar gyfer Cymru gyfiawn, deg a llewyrchus.

Mi wnaf i ysgubo trwy ambell i ddarn o’m haraith, ond hoffwn ddweud bod Plaid Cymru wedi croesawu ers tro ymrwymiad rhethregol y Llywodraeth hon i ddatblygu economi Cymru a’i chefnogi i fod yn gydradd â gweddill y Deyrnas Unedig. Wrth wneud hynny, rydym yn disgwyl i’r Llywodraeth ddatganoli pŵer i ffwrdd o’r Trysorlys, sicrhau bod penderfyniadau a gweithredu yn digwydd yn nes at ein cymunedau, a bod eu rhethreg yn gyfateb i’r cyllid caiff ei glustnodi ar gyfer y dasg.

Mae’n rhaid i mi gyfaddef, serch hynny, bod yna eisioes rheswm i boeni na chaiff yr addewidion lu eu gweithredu, ac yn hytrach fod anghydraddoldeb rhanbarthol yn rhan annatod o economi a phenderfyniadau sefydliadol gwladwriaeth y Deyrnas Unedig. Er enghraifft, yn Llundain mae cynhyrchiant ac enillion rhwng traean a hanner yn uwch na chyfartaledd y Deyrnas Unedig, yn ôl yr Institute for Fiscal Studies. Yng Nghymru, mae ein cynhyrchiant o leiaf 15% yn is na chyfartaledd y Deyrnas Unedig ac enillion bron 40% yn is nag yn Llundain. Yng Ngheredigion, mae’r gwerth ychwanegol gros lleol y pen bron i 37% yn is na chyfartaledd y Deyrnas Unedig. Gwelwn, wedyn bod buddsoddiad mewn ymchwil, sy’n allweddol i sbarduno arloesedd a chynhyrchiant gwell, wedi ei ganolbwyntio ers tro yn Llundain a de-ddwyrain Lloegr, gyda gwariant y pen yn 2019 yn rhyw £577: mwy na dwywaith y swm cyfatebol i Gymru.

Nid mewn termau economaidd yn unig y mynegir yr anghydraddoldeb hwn. Gwelwn goruchafiaeth Llundain a’r de-ddwyrain ym mhob man, o argaeledd ac ansawdd cysylltiadau trafnidiaeth i gefnogaeth i amgueddfeydd ac orielau. Ystadegyn syfrdanol oedd bod gwariant y pen ar ddiwylliant yn Llundain rhwng 2010-11 a 2017-18 gymaint â £687 y pen—bron i bum gwaith cyfartaledd gweddill Lloegr, heb sôn am Gymru. I’r pant y rhed y dŵr, fel y dywed yng Ngheredigion.

Cyn cloi, rwy’n troi at yr argyfwng presennol o ran costau byw. Rydym yn gwybod eisioes bod sefyllfa Cymru yn un eithaf bregus yn y maes hwn, ac ar ben popeth, nawr mae’n rhaid i deuluoedd ledled Cymru wynebu argyfwng y costau ynni nad yw Llywodraeth y Deyrnas Unedig wedi gwneud dim i fynd â’r afael ag ef hyd yn hyn. Mae’r diffyg yma yn cael effaith ofnadwy ar Gymru, lle mae 11% o aelwydydd yn byw mewn tlodi tanwydd a’r ffigwr ar fin gwaethygu. Yn anffodus, nid yw bod yn rhan o’r Undeb wedi ein hinswleiddio rhag yr argyfwng yma. Nid problem tymor bir fydd hi chwaith. Datgelodd y Gyllideb Prydeinig mai dim ond rhyw 0.8% y flwyddyn y disgwylir i incwm gwario gwirioneddol aelwydydd ledled Prydain dyfu dros y pum mlynedd nesaf. Roedd incwm gwario gros yng Nghymru yn gyfateb i ond tua 80% o gyfartaledd y Deyrnas Unedig yn 2019, sef yr ail isaf ar draws Prydain, felly mae’n syndod nad oes gweithredu ar fyrder yn digwydd tuag at y perwyl yma.

Yn olaf, ar ôl sôn am sefyllfa’r economi ar hyn o bryd, rhaid hefyd inni edrych tuag at y dyfodol. Yn fyr iawn, o ran polisi masnach, caf i ddim amser i fynd i berfedd y peth heddiw, ond yr hyn ddywedaf yw y pe bai gan Unoliaethwyr unrhyw fwriad i ddiogelu dyfodol yr Undeb, byddent yn ymrwymo ar unwaith i’r egwyddor bod rhaid i Lywodraeth y Deyrnas Unedig geisio cael cytundeb y Seneddau datganoledig cyn arwyddo cytundebau masnach newydd.

(Translation) I am running out of time, so I will not take further interventions. I want to briefly talk about two problems that arise from the current settlement. The predominant one relates to the justice system. While justice in England, Scotland and Northern Ireland is fully integrated into the policies of those countries, powers for justice in Wales are retained in Westminster. The Commission on Justice in Wales led by Lord Thomas stated that there was “no rational basis” for the current situation and that the knock-on effects were extremely unfortunate.

We have heard from the hon. Member for Cardiff Central that chronic underfunding by Westminster of justice services has meant that Wales has had to fill the gap left by the Union. Even worse, Westminster policies have contributed to unsustainable levels of incarceration and have meant that in 2019 Wales had the highest levels of incarceration in western Europe. The constitutional settlement has failed in its fundamental duty—the duty to ensure fair and just access to justice. Coming to the unanimous conclusion that the people of Wales are missing out in the current settlement, the 2019 commission stated that full legislative powers for justice should be devolved to Wales. As the Thomas commission stated quite eloquently, in my view,

“The people of Wales both need and deserve a better system.”

Justice should be integrated into policies for a just, fair and prosperous Wales.

Plaid Cymru has for some time welcomed the rhetoric of the Government on developing the economy of Wales and supporting it to be equal to the rest of the United Kingdom. In doing so, we expect the Government to devolve power away from the Treasury and ensure that decisions and actions take place closer to our communities. Their rhetoric should correspond to the finance earmarked for the task.

I must admit, though, that we already have reason to be concerned that those promises will not be fulfilled and that, instead, regional inconsistency and inequality will be part of the state of the United Kingdom. According to the Institute for Fiscal Studies, productivity and earnings are between one third and a half higher than the UK average. In Wales, production is at least 15% lower than the UK average, and earnings are almost 40% lower than in London. In Ceredigion, local gross value added per capita is almost 37% lower than the UK average. Investment in research, which is key to propelling better productivity, has focused for some time on London and south-east England, with investment per capita around £577, which is more than twice the equivalent sum for Wales.

It is not only in economic terms that these inequalities can be expressed. We see the supremacy of London and the south-east everywhere, from the availability and quality of transport connections to support for museums and galleries. An astounding statistic is that expenditure on culture per capita between 2010 and 2017-18 was as much as £687 in that region—almost five times the average of the rest of England, let alone Wales. Money follows money.

Before I conclude, I will turn to the current crisis around living costs. The situation in Wales is quite fragile in this regard. On top of everything else, families across the whole of Wales now have to face the crisis around energy costs that the UK Government have done nothing to deal with so far. This flaw is having an awful impact on Wales, where 11% of households live in fuel poverty—a figure that is about to deteriorate further. Unfortunately, being part of the Union really has not insulated us from this crisis. It is not a short-term problem, either. The UK Budget expressed that real household income was expected to grow by 0.8% over the coming five years. Gross household expenditure in Wales only corresponded to 80% of the average for the UK in 2019—the lowest across Britain—so it is surprising that there has been no urgent action taken towards this issue.

Finally, after talking about the situation of the economy at the moment, we must also look towards the future. I will not have time to go into the detail of trade policy today, but I will say that if Unionists had any intention of safeguarding the future of the Union, then they would take action immediately on the principle that the UK Government have to seek agreement with the devolved Governments before they sign any new trade agreements.

[Simon Hart]

Will the hon. Gentleman give way?

[Ben Lake]

In a moment, very briefly.

Cyhyd ag y byddwn yn rhan o’r Undeb, rhaid iddi fod yn Undeb gyfartal, ac mae’n bryd i’r polisi masnach adlewyrchu hyn.

(Translation) As long as we are part of the Union, it has to be an equal Union. It is about time that trade policy reflects that.

[Simon Hart]

I know we have raised this before, but the hon. Gentleman has avoided talking about the fiscal deficit. We can have an argument about it; it is worth something like £15 billion. If he is going down that road, perhaps he would at least treat the Committee to what his vision of the tax regime would be under the arrangements that he suggests. He seems to have rather conspicuously avoided what that would actually mean for families and businesses in Wales.

[Ben Lake]

I am grateful to the Secretary of State for that intervention. I only wish he had intervened earlier in the debate, when I might have had time to entertain him with some of my thoughts. All I would point out before closing is that, to my knowledge, I do not think the British state has run a surplus for many years in the past century, so if a deficit is good enough for the UK Government, why not for the Welsh Government?

I gloi, os ystyriwn holl diffygion y setliad cyfansoddiadol presennol, oes syndod o gwbl bod y rhai sy’n teimlo’n angerddol ynghylch yr Undeb mor bryderus i’w chryfhau? Mae Cymru yn haeddu gwell, yn fy marn i, ond does dim dwywaith y bydd rhaid i’r Undeb newid os fydd hi am oroesi. Y cwestiwn i’r Aelodau hynny sy’n ei chefnogi yw: ydyn nhw o ddifri amdani ac yn barod i wneud y newidiadau angenrheidiol hynny i sicrhau ei goroesiad? Neu a fyddan nhw, drwy eu hystyfnigrwydd, yn selio ffawd eu Hundeb annwyl?

(Translation) In conclusion, if we consider all the shortcomings of the current constitutional settlement, is it any surprise or wonder whatsoever that those who feel passionately about the Union are so concerned about strengthening it? Wales deserves better. There is no question but that the Union will have to change if it is to survive. The question for those Members who support it is: are they serious about it and are they ready to make the necessary changes to enable and ensure the Union’s survival—or will they be sealing the fate of their dear Union?