Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 29th June 2011 Commons Chamber

[Paul Murphy (Torfaen) (Lab)]

1. What recent discussions she has had with the First Minister on the remit of a commission on devolution and funding for Wales.

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

The Government are committed to a Calman-like process for Wales and will be putting forward proposals. I have discussed the issue with the First Minister, and will be continuing to have discussions with relevant colleagues and of course the First Minister.

[Paul Murphy]

The Secretary of State will know that the Northern Ireland Executive can borrow money and the Scottish Government will soon be able to borrow money, but the Welsh Government cannot. With the cutback in capital spending on schools and hospitals, is it not now time for the right hon. Lady to enter into immediate negotiations with the Welsh Government and the First Minister so that the Welsh Government can also borrow money?

[Mrs Gillan]

I thank the right hon. Gentleman for that question. He is effectively asking why Wales is the only home nation without borrowing powers. It is fair to say that the new borrowing powers for Scottish Ministers, which are set out in the Scotland Bill, will not take effect until 2015-16, which is in line with our commitment not to change the system until stabilisation of public finances. May I make it clear that we are not ruling borrowing powers for the Welsh Government in or out at this stage.

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

The recent Labour Government amply demonstrated their enthusiasm for taxing and borrowing. Does my right hon. Friend think that it would be wise to allow the Welsh Assembly to follow that example?

[Mrs Gillan]

I am grateful to my hon. Friend for that question. [Hon. Members: “No, you’re not.”] Despite the laughter from the Opposition, I am grateful to him. However, I cannot be drawn on this, and as I answered straightforwardly, we are not ruling it in or out at this stage. I want to have those discussions with the First Minister and other colleagues for the simple reason that many commentators, including the First Minister, are unsure of exactly what powers the Welsh Government would like to have.

As with the Calman process, it is right that we try to reach consensus on this and move forward. It is far too important a matter to be rushed or dealt with in a cavalier fashion.

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

Very important though borrowing powers are, would the right hon. Lady assure the House that the remit of the Calman-style commission will be far broader than matters financial, given the excellent work already carried out by the Holtham commission?

[Mrs Gillan]

I am committed to establishing a process for the Assembly that is similar to that set out by the Calman commission. I have made it clear that we intend to review the financing arrangements for Welsh devolution. I must repeat, however, that I think that this matter is far too important to Wales, and far too important a subject matter, to be rushed or not to be discussed fully. I am seeing the First Minister on Monday to take forward our discussions and I do not want to pre-empt them by setting any parameters.

[Mr Llwyd]

No doubt the right hon. Lady would not wish to pre-empt any decision, but in a co-operative spirit, may I suggest that matters administrative and constitutional should be considered? I am thinking of the possibility of devolving police and justice powers to Wales, for which there is a huge amount of support throughout Wales. On the vital issue of broadcasting, it is high time that Wales had control of its own broadcasting; S4C would not be in its current position if there were such control.

[Mrs Gillan]

The right hon. Gentleman is trying to lay out his own manifesto and his party’s position with clarity, but that is not how we want to take matters forward. May I make it clear that I know how important S4C is to the Welsh language and culture? We have reached an arrangement on it, and I assure him that I will always look to the interests of S4C because I know how important a part it is of Wales’s culture.

[Mr Mark Williams (Ceredigion) (LD)]

2. What recent discussions she has had with the First Minister on the devolution of planning decisions for electricity projects with a generating capacity greater than 50 megawatts.

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[Guto Bebb (Aberconwy) (Con)]

3. What recent discussions she has had with the First Minister on the establishment of enterprise zones in Wales; and if she will make a statement.

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

I had initial discussions with the First Minister on the day of the Budget, following the announcement of the introduction of enterprise zones in England. I have also written making clear my commitment to work with the Welsh Government to establish enterprise zones in Wales. I am therefore delighted that the First Minister has now confirmed that Wales will benefit from enterprise zones. Having zones in Wales will provide a much-needed boost to businesses and make Wales more attractive to investors.

[Guto Bebb]

I thank the Secretary of State for her answer, which is most welcome. Conwy county corporate plan and the Wales spatial plan have identified Llandudno junction in my constituency as an area that is ready for growth. In my view, an enterprise zone at Llandudno junction would move from a potential for growth to real growth and create real employment in my constituency. What we need to see is co-operation between Westminster and the Assembly to ensure that that happens.

[Mrs Gillan]

I agree entirely with my hon. Friend, who is a great champion for Aberconwy and has mentioned this matter to me before. I would welcome meetings with any Welsh Members of Parliament who think that their constituency would be an ideal location for an enterprise zone. Indeed, I have already met some Members who have made such representations.

I encourage my hon. Friend to make contact with the Minister for Business, Enterprise and Technology in the Welsh Assembly. We were all surprised and disappointed that she is not yet able to agree to appear before the Welsh Affairs Committee. I encourage her to rethink that decision and to work together with the Wales Office in a spirit of co-operation, because that would be in the interests of Welsh business.

[Several hon. Members]

rose—

[Nia Griffith (Llanelli) (Lab)]

Given the Secretary of State’s discussions about enterprise zones with the First Minister and other Welsh Assembly Ministers, does she accept that whatever we do on the ground in Wales, and whatever stimulus the Welsh Assembly can provide, we still need a proper fiscal stimulus from her colleagues in the Cabinet here? What discussions has she had with her colleagues in the Treasury about ensuring that growth happens?

[Mrs Gillan]

The hon. Lady makes a very good point, and that is exactly why, following the Budget, there was an increased provision for the Welsh Assembly Government of £65 million. Just to correct any figures that have been bandied about, I have checked with the Treasury and £10 million of that £65 million was Barnett consequentials for enterprise zone expenditure, and £20 million was for small business rate relief consequentials. I am sure that with £30 million the Welsh Assembly Government will be able to do something.

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

Since the sad demise of the Development Board for Rural Wales, there has been virtually no support for manufacturing in mid-Wales. Will the Secretary of State declare that rural Wales will not be ruled out in the consideration of enterprise zones?

[Mrs Gillan]

My hon. Friend asks me to step outside my brief, because I do not have responsibility for the enterprise zones in Wales. But I am sure that the Minister for Business, Enterprise and Technology in Wales will hear what he has said, and I encourage him to engage with her to discuss the possibilities for rural Wales.

[Hywel Williams (Arfon) (PC)]

A potential problem with enterprise zones, as the Chairman of the Treasury Committee has pointed out, is that jobs are transferred in, rather than new jobs being created. What steps can be taken to avoid that unwelcome outcome?

[Mrs Gillan]

The hon. Gentleman knows that I have been concerned about the position of Wales and enterprise zones from the minute that they were announced for England, not least because we have announced that there will be enterprise zones at Bristol and Merseyside. I am concerned that the enterprise zones on the English side of the border will affect inward investment in Wales, which is why I encouraged the Welsh Government to engage with us so that we can establish mechanisms that do not allow those two enterprise zones, which are so close to Wales, to suck business out of Wales.

[Paul Flynn (Newport West) (Lab)]

4. What assessment she has made of the potential effects on Wales of implementation of the provisions of the Welfare Reform Bill.

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[Mr Wayne David (Caerphilly) (Lab)]

6. What recent estimate she has made of the number of public sector job losses in Wales during the comprehensive spending review period.

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

A forecast of public sector job losses was published last year by the Office for Budget Responsibility. That forecast was based on UK-wide macro-economic data and no regional breakdown is available. I remain committed to working with ministerial colleagues to minimise the impact that essential reductions in public expenditure have on Welsh workers and their families.

[Mr David]

The Government talk a lot about private sector growth, but does the Secretary of State not realise that, in Wales, the private sector is dependent on the public sector? massive cuts in one have a bad impact on the other.

[Mrs Gillan]

As the hon. Gentleman knows, the settlement for Wales was more generous than for many other parts of the United Kingdom. Over the comprehensive spending review, there were cuts of some 2% in the Barnettised money going to the Welsh Assembly Government. I urge him to talk to his friends in the Welsh Government, because many public sector jobs depend on the Welsh Government and the operations in Cardiff bay.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

The Secretary of State will be aware that Dyfed-Powys police have announced this week that they have recruited 39 new police officers for the front line. Will she join me in commending the chief constable for getting his priorities right and not spreading scare stories for political benefit?

[Mrs Gillan]

I thank my hon. Friend for reminding us that there are not always cuts in public sector jobs. In some instances, there is recruitment to public sector jobs. I congratulate his chief constable. I regularly meet the four chief constables in Wales, and they are all very positive about their forces and their operations protecting the public in Wales.

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

Does the Secretary of State share my concern about the report leaked last week indicating that seven out of eight HMRC offices in Wales are to be closed, leaving only one in Cardiff, with a loss of more than 1,000 jobs?

[Mrs Gillan]

The hon. Gentleman should know that I met HMRC earlier this week to discuss the reports in the press. I am pleased to say that there are no new announcements of HMRC office closures or moves in Wales at this time. HMRC has assured me that any office closures will not lead to job reductions beyond those already required by the spending review and that there are no plans to reduce the number of HMRC offices in Wales.

[Ann Clwyd (Cynon Valley) (Lab)]

7. What assessment she has made of the potential effects on Wales of implementation of the provisions of the Welfare Reform Bill.

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[Ian Lucas (Wrexham) (Lab)]

10. What discussions she has had on the potential devolution of powers to set rates of stamp duty in Wales.

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

I note the First Minister’s statement last week on his Government’s priorities for financial reform and accountability, but I have had no representations from the Welsh Government on the proposals as yet.

[Ian Lucas]

Has the Secretary of State had any discussions with the Chief Secretary to the Treasury, who raised the issue before the Welsh Assembly elections? Has she discussed it with the Chancellor of the Exchequer, or do people in this Government not talk to each other?

[Mrs Gillan]

I am not sure where the hon. Gentleman gets the impression that people in our Government do not talk to each other. We talk to each other all the time. I have many meetings with the Chief Secretary to the Treasury and the Chancellor, and I am able to discuss matters that affect Wales on each and every occasion.

[Rosie Cooper (West Lancashire) (Lab)]

11. What assessment she has made of the performance of the Welsh economy since May 2010; and if she will make a statement.

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

First, I welcome the hon. Lady’s interest in Wales and its economy. The economy is starting to return to growth, and I am pleased that we are beginning to see signs of improvement in employment levels in Wales. We have had to make difficult decisions in order to reduce the massive deficit that we inherited. Our policies are the right ones to restore business confidence and move people into the jobs that they need.

[Mr Speaker]

Order. There are far too many private conversations taking place in the Chamber, including one that I have just concluded.

[Rosie Cooper]

I apologise, Mr Speaker; I could not hear. With 5.5 people chasing every job vacancy in Wales, does the Secretary of State consider job creation to be a priority? What, if anything, have she and her Government done about it?

[Mrs Gillan]

I am afraid that I did not catch the whole of the hon. Lady’s question. However, the Government recognise that the private sector will lead economic recovery in the UK. I am proud of our record of supporting businesses, and I am proud of what is happening in Wales, where the latest unemployment statistics reveal more people in work and fewer on the unemployment register.

[Mr Speaker]

Clearly, if the Secretary of State cannot hear questions, the noise is too loud, and it is impeding the process. Let us give a fair hearing to Mr Alun Cairns.

[Alun Cairns (Vale of Glamorgan) (Con)]

Private sector job creation is the only way to grow the Welsh economy sustainably. Does my right hon. Friend recognise that enterprise zones have a key role to play in that respect, and does she agree that Barry would make a great location for Wales’s first enterprise zone?

[Mrs Gillan]

The hon. Gentleman certainly punches above his height. The Vale of Glamorgan could have no greater champion. I refer him to the Minister for Business, Enterprise and Technology in the Welsh Assembly, who I am sure will be able to help him and make his dreams come true.

[Susan Elan Jones (Clwyd South) (Lab)]

12. What assessment she has made of the potential effects of High Speed 2 on the economy of Wales.

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

The Government are currently consulting on a new national high-speed rail network. That is part of a wider programme of modernisation of the rail network, including electrification of the Great Western main line to Cardiff.

[Susan Elan Jones]

I have heard of trains cancelled because of snow on the line and leaves on the line, but never before because of the Secretary of State on the line. The high-speed rail link, HS2, would bring great benefits to Wales, but our Buckinghamshire-based Secretary of State opposes it. If our Secretary of State will not stand up for Wales, why does she not resign?

[Mrs Gillan]

I thank the hon. Lady for her close interest in my career. The Government are having an open consultation on HS2, and now that she has expressed such a great interest in the subject, we will expect her representations.

The Prime Minister was asked—