Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 2nd February 2011 Commons Chamber

[Mrs Siân C. James (Swansea East) (Lab)]

6. What recent discussions she has had with the Secretary of State for Transport on the electrification of the great western main line.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

I have many discussions about this matter, and I remain fully supportive of electrifying the great western main line.

[Huw Irranca-Davies]

I thank the Secretary of State for that update. I never thought that I would say this, but I agreed with the Chancellor when he said last week that high-speed rail

“will provide for the next generation.”

This generation of businessmen and commuters from south Wales are looking forward to a fully electrified higher-speed rail all the way to Swansea. Will the right hon. Lady do everything in her power to ensure that we have that as soon as possible?

[Mrs Gillan]

I hear the hon. Gentleman, and I am pleased to agree with him that good infrastructure will be of great benefit to our economy in Wales. However, I should remind him that his party had 13 years to electrify the great western line to Swansea, yet failed to electrify a single inch.

[Mrs James]

I am sure that the Minister is aware that electrification of the south Wales main line to Swansea is vital, especially for the economy of the city, but also for the economies of west Wales. The recent Centre for Cities report forecast that Swansea would face severe challenges during the recovery period. Given that news, does she agree that rail electrification to Swansea is even more vital to local businesses and citizens in the region?

[Mrs Gillan]

I am happy to say that I have had sight of that report. I continuously worry about how we will build up our economy in Wales and restore our fortunes. Like her hon. Friend the Member for Ogmore (Huw Irranca-Davies), the hon. Lady is absolutely right to say that infrastructure is important, whether it be railway or roads infrastructure, or broadband. I would encourage her to make her representations directly on this matter. I hope that she has written to my right hon. Friend the Secretary of State for Transport and also to my office.

[Jonathan Evans (Cardiff North) (Con)]

My right hon. Friend is right to draw attention to the abysmal record of the outgoing Labour Government, but let me make it clear that we on the Government Benches are arguing just as passionately for electrification right through to Swansea, to see the Welsh economy rebalanced from the public sector and private sector jobs coming through. We cannot have money spent on high-speed rail without electrification in Wales.

[Mrs Gillan]

My hon. Friend knows that we plan to invest £14 billion over the next four years to fund maintenance and investment in our railways. Whatever we end up with when an announcement is made, he can rest assured that we have left no stone unturned in making the case for electrification into Wales.

[Roger Williams (Brecon and Radnorshire) (LD)]

Electrification will take many years to complete, so will the Secretary of State consult the franchisee to see whether we can have direct routes from London Paddington to Bristol, Newport and Cardiff, thereby reducing the journey time to that achieved 20 years ago?

[Mrs Gillan]

My hon. Friend is right. I have already met First Great Western on that very subject, and I will continue to hold meetings. We appreciate that we are talking about a crucial project but, as my hon. Friend knows, the last Government had 13 years, and all they came up with was a cheap promise and no funding to back it up.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

Will the Secretary of State please confirm that it is entirely Westminster’s responsibility to maintain and develop the south Wales line?

[Mrs Gillan]

I am sure I do not have to tell the hon. Gentleman what is devolved and what is not. He knows that the electrification of the main line is Westminster’s responsibility. However, let me remind him that there are also important improvements that could be made to the diversionary lines and the Cardiff valleys network. That is the responsibility of the devolved Administration, yet we have not seen any progress on that front.

[Mr Llwyd]

Is the right hon. Lady aware that the cost-benefit analysis for electrification of the south Wales line is far better than that for Crossrail? However, whereas Crossrail, at £16 billion, is going apace, nothing has happened for the past nine months on this vital issue for the south Wales line.

[Mrs Gillan]

I remind the hon. Gentleman that plenty has happened in regard to this vital issue, but this is not a decision that can be taken overnight. The previous Government were very happy to make uncosted promises about this routing, but this is not a simple process. A range of factors must be thoroughly considered and, to that end, the Wales Office has been working not only with the Department for Transport but with the Welsh Assembly Government, and I remain optimistic about a good outcome.

[Mr Peter Hain (Neath) (Lab)]

Does the Secretary of State have any meetings on rail electrification scheduled for 1 April?

[Mrs Gillan]

I am sure that if the right hon. Gentleman wants details of my diary, he can ring the office.

[Mr Hain]

As it happens, I have details of the right hon. Lady’s diary here. Instead of progressing rail and other Wales matters, the entire Wales Office ministerial team—the Secretary of State and the Under-Secretary, the hon. Member for Clwyd West (Mr Jones)—will be at a Conservative party fundraising event in Chesham and Amersham. This is no April fool’s day story: I have the invitation here.

On the decision to electrify rail, the former Transport Secretary, Lord Adonis, said:

“The business case for electrification to Swansea is strong. All the technical issues, for example, electrifying the Severn tunnel, were resolved.”

If he says that the business case is strong, why the delay?

[Mrs Gillan]

I am ashamed that the shadow Secretary of State for Wales has wasted his two questions and resorted to trivia. Unlike him, I take this matter very seriously. The letter that I received from his wife actually made more sense than his questions at the Dispatch Box today.

[Andrew Griffiths (Burton) (Con)]

2. What discussions she has had with the Welsh Assembly Government and other stakeholders on steps to attract inward investment into Wales.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

I have had various discussions with the First Minister and the Deputy First Minister on attracting inward investment to Wales. I have also discussed the matter with ministerial colleagues, including the Secretary of State for Business, Innovation and Skills and the Government’s trade adviser, my right hon. Friend Lord Brittan. This afternoon, I shall facilitate a meeting between the First Minister, the Deputy First Minister and my hon. Friend Lord Green, the Trade Minister, on the same issue.

[Andrew Griffiths]

The Secretary of State will know that Wales is heavily reliant on a small number of very large companies: 1.8% of the companies in Wales account for 69% of turnover, and the number of new businesses established between 2004 and 2009 fell by 28%. What meetings is she having with the Welsh Assembly Government on support for small and medium-sized enterprises in Wales?

[Mrs Gillan]

My hon. Friend is quite right about the figures on the private sector in Wales. Indeed, the shadow Secretary of State has often said that he thought the private sector in Wales was too small, but he failed to address that issue while he was in government. I have continual meetings with the Welsh Assembly Government on these matters, and we are particularly committed to encouraging business confidence through the measures that we are taking for small businesses and others. I know, from meeting businesses in Wales, that the cancellation of the job tax proposed by Labour went down particularly well with the business community.

[Dr Hywel Francis (Aberavon) (Lab)]

Higher education plays a big role in attracting high-quality inward investment to Wales. Will the Secretary of State therefore join me in welcoming the decision of the Labour-led Welsh Assembly Government to announce a large investment in Swansea university’s new science and innovation campus, which will be located in my constituency? Will she also outline what she intends to do to support such initiatives across the whole of Wales?

[Mrs Gillan]

The hon. Gentleman is absolutely right. I have had the privilege of going down to Swansea and looking at the Institute of Life Science buildings, ILS1 and ILS2, and I welcome that investment. As he knows, this is a devolved matter, and the levers of power and the decisions about money rest with the Welsh Assembly Government. That is why I was so sad to see the closure, by the Labour Welsh Assembly Government, of some of the techniums across Wales. However, the hon. Gentleman can rest assured that I will continue to press this case, because I believe we have some of the best universities in the country providing the best research and support to businesses that are looking to invest in Wales.

[Jenny Willott (Cardiff Central) (LD)]

3. What discussions she has had with the Secretary of State for Transport on the closure of the Driving Standards Agency office in Cardiff.

--- Later in debate ---

[Robert Halfon (Harlow) (Con)]

7. What recent discussions she has had with the Secretary of State for Business, Innovation and Skills on the effects of her Department's policies on apprentices on the number of apprentices in Wales.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

I have regular discussions with Cabinet colleagues on a range of issues, including apprentices. The Government believe that apprenticeships are a key component of the development of work force skills and one of the best forms of work-based learning.

[Robert Halfon]

Will the Secretary of State give Welsh backing to my campaign—supported by the Minister for Further Education, Skills and Lifelong Learning, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who is responsible for apprenticeships—for the establishment of a royal society of apprentices and an apprenticeship card to provide training, support and mentoring which would benefit apprentices in the whole United Kingdom, including Wales?

[Mrs Gillan]

This is the first time I have heard about such a scheme from my hon. Friend. Next week is apprenticeship week: between 7 and 11 February, efforts will be made to encourage more businesses to provide opportunities for apprentices in Wales. I should be delighted to meet my hon. Friend, and to give whatever support I can to that new organisation in order to confer greater status on what I consider to be a fantastic opportunity for many young people.

[Albert Owen (Ynys Môn) (Lab)]

There is a general consensus across the House that we need more apprenticeships in Wales, including apprenticeships in such areas as green technology. Will the Secretary of State ask the Secretaries of State for Business, Innovation and Skills and for Energy and Climate Change to reconsider their ports policy, which allows the construction of wind farms throughout the United Kingdom? The Government have now changed the rules to give English ports precedence over Welsh ports. Will the Secretary of State ask them to reconsider, and to introduce joined- up thinking to attract inward investment and create apprenticeships?

[Mrs Gillan]

Despite the deficit, we remain committed to apprenticeships, as, I am sure, does the hon. Gentleman. We are spending £250 million a year in England, and the Welsh Assembly Government have received consequential funding.

I have looked into one of the issues pertaining to ports, namely the money provided by the Department of Energy and Climate Change for renewables. I understand that there has been a Barnettised consequential. However, I will double-check because I know how important the issue is, but I suggest to the hon. Gentleman that when matters are Barnettised, he should press the Welsh Assembly Government to spend the funds in that way.

[Mr Speaker]

Order. Far too many private conversations are taking place in the Chamber. I want to hear Stephen Mosley.

[Stephen Mosley (City of Chester) (Con)]

8. What discussions she has had with the Welsh Assembly Government and other stakeholders on steps to attract inward investment into north-east Wales.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

I have regular discussions with Welsh Assembly Government Ministers and other stakeholders on a range of issues affecting Wales, including attracting inward investment.

[Stephen Mosley]

North-east Wales and Chester share the single economic sub-region that straddles the Anglo-Welsh border, so inward investment in north-east Wales benefits Chester too. What action is the Secretary of State taking to ensure that local authorities and the new local enterprise partnerships in England, over the border, support much-needed inward investment in north-east Wales?

[Mrs Gillan]

My hon. Friend knows that I am very keen on inward investment. One of the things I did in the past two weeks was visit the Deeside hub to look, in particular, at the apprentice training taking place at Deeside college. The college has links to large cities such as Manchester and Liverpool, which are established clusters of high technology and innovative business. I am keen to work with the Welsh Assembly Government and other Departments of state to get institutions working together in the interests of the Welsh economy and attracting inward investment to Wales.

[Mr Speaker]

May I appeal to the Secretary of State to face the House so that we can all hear her?

[Mr David Hanson (Delyn) (Lab)]

Will the Secretary of State make contact with Kerry Foods of Ireland, which proposes to transfer business out of north-east Wales from Headland Foods Ltd in Flint, in my constituency, to Grimsby? Will she examine whether steps can be taken, even at this late stage, to retain those jobs in Wales? If they cannot be retained, will she ensure that she stands up for the work force and their redundancy terms and seeks alternative inward investment to help to replace those jobs?

[Mrs Gillan]

I am sad to hear from the right hon. Gentleman that someone is thinking of moving business out of his constituency and across the border. I hope that he has made representations to the Welsh Assembly Government—I would not want to cut across anything that they are doing, as they are responsible for economic development, but my door is always open to him. If he would like to write to me about this particular case and company, and the associated issues, I will make investigations to see how I can help. I think that that is the proper way of conducting business.

[Greg Hands (Chelsea and Fulham) (Con)]

9. What recent discussions she has had with ministerial colleagues on steps to assist economic growth in Wales.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

In the past week, I have met my right hon. Friends the Secretary of State for Transport and the Home Secretary, and the Minister for Trade and Investment, Lord Green, to discuss a range of issues to assist economic growth in Wales.

[Greg Hands]

Given this year’s corporation tax cuts, the new national insurance contributions holiday for small businesses and the cancellation of Labour’s national insurance tax hike next month, does the Secretary of State agree that this Government are restoring Wales’s good reputation as a destination for inward investment, which was so badly damaged by the previous Government?

[Mrs Gillan]

My hon. Friend knows that we will be working night and day to restore Wales’s reputation as a good destination for inward investment. Indeed, my right hon. Friends have already started that work by reducing over-regulation on business, reducing the taxes on business, introducing national insurance holidays and rolling back the wicked jobs tax that would have affected business in Wales and all over the United Kingdom.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

In the light of last week’s disastrous economic figures, where will the private sector jobs come from to replace the public sector jobs that the Government are intent on slashing?

[Mrs Gillan]

I think the hon. Gentleman should take a deep breath and not talk Wales down, but talk it up. I was particularly pleased to see this week’s manufacturing figures, which reflect very well on the United Kingdom and are a great source of optimism. I hope he will join me in sending out the message that Wales is open for business and that businesses should look to us for their investment.