Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 12th October 2011 Commons Chamber

[John Howell (Henley) (Con)]

2. What discussions she has had with her ministerial colleagues on inward investment in Wales.

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

I am keen to attract more inward investment to Wales, as that is crucial to the recovery of the Welsh economy. I am working closely with ministerial colleagues, the Welsh Government and business to create an environment where companies choose to come to invest. One of our best adverts for Wales is our fantastic Welsh rugby team, and we all wish them well for their game at the weekend. They are a powerful advert for inward investment in Wales.

[John Howell]

Inward investment can be materially helped through enterprise zones. Does my right hon. Friend therefore regret the Welsh Administration’s delay of six months in making a decision on enterprise zones?

[Mrs Gillan]

My hon. Friend is right, and echoes what I have said on many occasions. I work as closely as I can with the Welsh Government and I encouraged them to introduce enterprise zones, but we had six months of wasted opportunities. There is every indication that the enterprise zones might look similar to those that have been announced across the border in England. Two tranches have been announced in England and just the one in Wales, but I am delighted that the Welsh Government have finally announced enterprise zones for Welsh businesses.

[Kevin Brennan (Cardiff West) (Lab)]

The Secretary of State is right to mention the Welsh rugby team and the way that it can highlight Wales. When the Prime Minister of the United Kingdom comes in and sits next to her later, for Prime Minister’s questions, will she ask him to put the Welsh flag up over No. 10 Downing street this weekend, as he did with the cross of St George for the England football team during the World cup? [Interruption.]

[Mr Speaker]

Order. Hon. Members wish to hear the Secretary of State’s reply to this probing question.

[Mrs Gillan]

I can heartily endorse that recommendation. Whether the powers that be will be able to fly that flag I do not know, so I cannot give him that guarantee, but it will be flying proudly above Gwydyr house.

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

When I meet businesses in Wales, I am always impressed by the resilience they are showing during these difficult times. One issue that they always raise with me is that of business rates. What discussions has the Secretary of State had with the Assembly to build on the excellent work that local authorities are doing to reduce the burden of business rates to companies that wish to expand?

[Mrs Gillan]

As the hon. Gentleman knows, that is a matter for the Welsh Government, but I think the Welsh Government must carefully consider the conditions on the other side of the border in England, and ensure that inward investing companies and other companies in Wales are not disadvantaged in terms of taxation or non-tariff barriers. I encourage the hon. Gentleman to make his representations to the Welsh Government himself; I am sure that they will be interested in what he has to say.

[Mr Peter Hain (Neath) (Lab)]

As the Secretary of State will be aware, at least two coal mines in south Wales, Aberpergwm and Unity, have been in receipt of inward investment that is growing their employment and output. May I thank both mines for voluntarily helping to resource the rescue and investigation work following the terrible tragedy at the Gleision mine in the Swansea valley that caused the death of four experienced colliers, my constituents Charles Breslin, Philip Hill, Garry Jenkins and David Powell? May I also thank the Secretary of State for her support over this tragedy, which has included ensuring that the Government have agreed to provide the 25% uplift—equivalent to the charitable gift aid that could have been claimable—to the total raised by the Swansea Valley miners appeal fund, which is now rising towards £400,000, which shows an extraordinary and heartfelt public response? May I also thank the mines rescue service, the principal inspector of mines and the South Wales police for their dedicated and at times heroic work at Gleision?

[Mrs Gillan]

Like the right hon. Gentleman, I pay tribute to those who so valiantly led the rescue efforts in the immediate aftermath of last month’s tragedy at the Gleision mine, and I pay tribute to the right hon. Gentleman for his work in his constituency. He and I saw those efforts at first hand, and I know the impact that that event will have had on his local community. As the shadow Secretary of State says, I have agreed that the Government will contribute to the Swansea Valley miners appeal fund to cover the amount that the fund would have been able to claim back as gift aid while its application for charitable status was being processed. I am pleased to say that charitable status has now been secured, and we in the Wales Office are working with the fund organisers on the details of the Government payment.

[Mr Hain]

I am grateful to the Secretary of State for that. I believe that there are a number of important lessons from the Gleision tragedy for the future of mines safety and rescue. Will she therefore ensure that the Government delays the report of Professor Lofstedt, due by the end of this month, on regulations covering mining, among other sectors, so that account can be taken of a submission that I plan for her and her Cabinet colleagues?

[Mrs Gillan]

I understand that Professor Lofstedt is conducting an independent review of the overall regulatory framework covering health and safety legislation and its effectiveness. He issued a call for evidence in May and is now in the process of writing up his report. As this is an independent review, it would not be appropriate for my right hon. Friend the Minister with responsibility for employment or the Government to intervene in the timing of the report. However, I am sure that any lessons that can be learned from the investigation into the tragic events at the Gleision mine will be incorporated into any recommendations from Professor Lofstedt’s report that are taken forward by the Health and Safety Executive. I look forward to receiving the right hon. Gentleman’s submission on this subject.

[Mel Stride (Central Devon) (Con)]

4. What recent discussions she has had with her ministerial colleagues and others on job creation in the private sector in Wales.

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

I have regular discussions with ministerial colleagues and other interested parties on ways in which we can stimulate job creation in the private sector in Wales. We must create an environment in which the private sector can grow and prosper in order for businesses to create much-needed jobs in Wales, and we will continue to work with the Welsh Government to achieve that aim.

[Neil Parish]

I thank the Secretary of State for that answer. Will she look at the Bristol channel and the Severn, where there is the second highest rise and fall in tide in the world? A great deal of power could be produced there and a great number of jobs could be created to harness that power through tidal pools. May I ask her what we are doing about that?

[Mrs Gillan]

I think my hon. Friend knows that we have looked at this, and we do not intend to review the Severn tidal power situation before 2015—but it would be irresponsible to rule out such an important source of renewable energy for ever, as circumstances are likely to change down the line. As I have said before, to the shadow Secretary of State for Wales, if private funding for this project comes forward, we will consider it particularly seriously.

[Mel Stride]

As my right hon. Friend will know, under the previous Government there was far too much onerous employment legislation, much of which served simply as a brake on the growth of small and medium-sized enterprises both in Wales and throughout the United Kingdom. Does she therefore welcome, as I do, the fact that the Government will be doubling the period to qualify to go to an unfair dismissal tribunal, and that fees will also be charged thereafter to stop—

[Mr Speaker]

We are grateful to the hon. Gentleman.

[Mrs Gillan]

I think my hon. Friend knows that we are trying very hard to create the right conditions to encourage private sector growth, and particularly to make life easier for SMEs. He will know that we are also exempting them from audit requirements that will save SMEs in the UK up to £200 million a year. It is particularly important that we are exempting micro-businesses and start-ups from new domestic regulation until 2014. The point that he has raised is just another way in which we are trying to help private business to grow in the UK.

[Jessica Morden (Newport East) (Lab)]

A Sheffield Hallam university report published over the summer estimated that 30,000 people in Wales could lose their incapacity benefit as a result of the Government’s welfare changes, and could therefore be looking for work. How optimistic is the Secretary of State that the private sector will be able to create that level of employment?

[Mrs Gillan]

The hon. Lady makes a valid point. I know that the labour market statistics today have not brought good news, but I am pleased to report that there are 90,000 vacancies across the UK at the moment, including 12,638 in Wales. With the excellent job that is being carried out by Working Links and Jobcentre Plus, there are going to be many opportunities for people to find their way into work.

[Nia Griffith (Llanelli) (Lab)]

This morning we have seen a shocking increase in unemployment, with 16,000 more people in Wales desperate to find work—a massive 13.5% increase over the past three months—as a direct result of this Government’s policies. Given this huge rise in unemployment, plus the squeeze on household incomes in Wales as a result of the Government’s increase in VAT, the reduction in the real purchasing power of pensions and the cruel slashing of the winter fuel allowance at a time of rocketing energy and food prices, can the Secretary of State explain how her Government’s policies will stimulate consumer demand in Wales and get growth going? How on earth will they stem the spate of high street shop closures and put some sparkle back into—

[Mr Speaker]

I think we have got the thrust of it; we are grateful to the hon. Lady.

[Mrs Gillan]

May I extend a warm welcome to the hon. Lady, who is now on the Front Bench? She and I have had many conversations, and I wish her well. I am sure that she will complement the right hon. Member for Neath (Mr Hain) in her new role, and the Under-Secretary and I would like to extend our good wishes to her.

I take no joy from the figures this morning, but I do take joy from the fact that we have announced sector-based work academies. I hope that the hon. Lady will use her good offices with her party, and explain why the Labour party and the Welsh Government are cutting the enterprise budget, rather than using the money to freeze council tax in Wales, as it is being frozen in England.

[Albert Owen (Ynys Môn) (Lab)]

5. What assessment she has made of the effects of the Government’s economic policy on employment levels in Wales.

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[Julian Smith (Skipton and Ripon) (Con)]

6. What recent discussions she has had on promoting economic growth in Wales.

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

I have regular discussions with ministerial colleagues, the Welsh Government and other organisations on promoting economic growth in Wales. My business advisory group is meeting for the fourth time later this month. We discuss a wide range of issues affecting the Welsh economy, and that is fed into the Prime Minister’s own business advisory group.

[Julian Smith]

I thank my right hon. Friend for that answer. Does she agree that as well as exempting small businesses in Wales and the rest of the UK from domestic regulation, the Government must continue their radical approach to reducing red tape and regulation from Brussels?

[Mrs Gillan]

I agree with my hon. Friend. It is extremely important in this day and age, when we are up against such huge economic barriers, that we ensure that it is easy for businesses to start up and thrive in the UK, so that the UK becomes the best place to do business.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Secretary of State update the House on how the Wales Office is supporting economic growth in the newly announced enterprise zones, and will she meet representatives of my council, possible employers and me to talk about that? In Blaenau Gwent in the past 12 months, unemployment has gone up by a shocking 11.7%.

[Mrs Gillan]

I need to remind the hon. Gentleman that the enterprise zones in Wales are a devolved matter that falls to the Welsh Government. I would ask him to make his representations, as I did on his behalf and on behalf of many other Members of the House, to the Minister for Business, Enterprise, Technology and Science in Wales. Let me tell the hon. Gentleman what we are doing. We are increasing capital spending on roads and railways, creating a superfast broadband network, and cutting corporation tax and regulation. We are doing an awful lot to support businesses, and I want the Welsh Government to rise to the challenge, too. [Interruption.]

[Mr Speaker]

Order. There are far too many noisy private conversations taking place in the Chamber. I want to hear both the questions and the answers.

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

10. What recent representations she has received on the proposed Calman-style commission for Wales; and if she will make a statement.

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

Yesterday I announced in a written ministerial statement to the House the terms of reference and membership of the commission on devolution in Wales, the Silk commission. The commission will review the present financial and constitutional arrangements in Wales. It will look first at the financial accountability of the National Assembly for Wales and the Welsh Government and will aim to report in the autumn of next year. Following that, the commission will examine the current constitutional arrangements and will report in 2013.

[Mr Bone]

In Wales public expenditure is more than £9,000 per person. In my constituency it is £2,000 less. Yet again, Labour has left Wales in a mess, and Mrs Bone wants to know what the Prime Minister and the Secretary of State are going to do about it.

[Mrs Gillan]

Mrs Bone, I am sure, is absolutely right when she says that the economy of this country was left in a complete mess by that lot over there on the Opposition Benches—but my hon. Friend has asked a fairly complex question about the Barnett formula. The Barnett formula is not being examined by the Silk commission; it is the subject of bilateral communications involving the Treasury and the devolved Administration Governments, because it is a matter that concerns the whole of the UK. The Silk commission is focused on matters affecting Wales directly.

[Mr Llwyd]

I very much welcome yesterday’s announcement on the commission on devolution in Wales. That was a commitment of the coalition Government in Wales. Why are the Holtham recommendations specifically not being considered by the commission? If all those recommendations are going to be dismissed there will be difficulty in ensuring cross-party support, which is very important for the commission.

[Mrs Gillan]

I thank the right hon. Gentleman for giving me the opportunity to correct him, because I think he has misunderstood the terms of reference, which were agreed across all four parties. I am delighted to see his party taking part in the work of the Silk commission. What the Silk commission will be looking at is the second part of the Holtham report, which I know the First Minister is not keen on because it is about taxation powers. What is excluded is merely the Barnett formula and something called the “Holtham floor”, which is part of the subject of the bilateral communications. May I reassure the right hon. Gentleman that I want to move forward, if I can, on the basis of consensus? I am delighted that his party has worked with me on the commission so far.

[Mr Llwyd]

As the right hon. Lady says that the report will be produced in 2013, will she ensure that there will be a provisional legislative slot if the commission says that some legislative changes are necessary within this Parliament?

[Mrs Gillan]

The right hon. Gentleman has enough experience of legislation in this House to know that that is not something I can commit to, but let me tell him that the report will come in two parts. The first report will, we hope, come at the end of 2012, and the later report on the shape of powers between the UK Government and the Welsh Government will come towards the end of 2013. I will bear in mind what he has said.

The Prime Minister was asked—