(11 years, 1 month ago)
Commons ChamberNo, I did not, but that is the sort of fine detail of the finance that we will need to look at, as it should be examined. One thing I have been trying to have a look at is Mr Higgins’s new employment contract, which I understand does not start until January. I have been denied sight of that, but I wanted to see what performance bonuses, or any other inducement or performance-related measure, it contained.
Amendment 27, tabled by the—[Interruption.] Forgive me, a year is a long time, and I cannot recall the constituency.
Carmarthen East and Dinefwr.
As a former Secretary of State for Wales, I am particularly concerned—[Laughter.] You can’t know everything, can you, Madam Deputy Speaker? I do apologise.
As a former Welsh Secretary, I am concerned that this railway, currently planned only to be in England, needs also to make sure that it bears the costs of “Barnettising” that expenditure, particularly for Wales, but also for Scotland, if the railway does not go there, and for Northern Ireland. That is particularly the case in the light of the PLANET Long Distance model—PLD—zone information in the KPMG report, which showed that places like Neath, Port Talbot and Newport completely miss out. I am sure the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) shares my sadness that there are no Welsh Members on the Opposition Benches to plead the case for Wales. I am rather disappointed that they are not here because it shows that they are not interested in pressing the case for Wales.
(12 years, 7 months ago)
Commons ChamberI agree entirely with my hon. Friend. It must be very good for those people whom we have taken out of tax altogether and the lower paid workers who will benefit from our tax changes, because it will put money directly back in their pockets rather better than the Welsh Labour Government down in Cardiff Bay, under whose auspices council tax has doubled in Wales.
The Budget included a clear framework for reducing localised pay in the public sector. Considering that there is a direct link between money in people’s pockets and spending in the local economy, how will depressing pay encourage economic growth in the poorest parts of the British state?
When it comes to local pay, our aim is to create a more flexible labour market that is more responsive to the challenging economic conditions we currently face. We want to create more private sector growth and, as a consequence, wealth in Wales and across the UK.
(12 years, 10 months ago)
Commons ChamberI agree with my hon. Friend, because it was the extra funding from the Treasury to the Welsh Government that enabled the leader of the Welsh Liberal Democrats in the Assembly to negotiate the extra funding for the pupil deprivation fund. That merely follows what my right hon. Friend the Secretary of State for Education has introduced in England. It is worth reflecting that after 13 years of Labour government the spending gap between England and Wales remained at around £600 per pupil.
The signature policy of the recent autumn statement was the capital investment programme, which included provision to raise £25 billion of finance from pension funds. What discussions has the Secretary of State had with the Welsh Government and the Treasury to put in place structures to ensure that Wales does not lose out?
As the hon. Gentleman knows, the settlement on capital funding has been good for Wales. The additional moneys that were announced in the autumn financial statement have made a great difference to the way in which the Welsh Government are budgeting. I regularly meet Welsh Government Ministers and colleagues in the Treasury. If the hon. Gentleman wishes to know further and better particulars, I will ensure that we talk together from time to time about developments.
(13 years, 1 month ago)
Commons ChamberWill the Secretary of State give way?
May I make a little progress? The commissioners bring a wealth of experience to their important task. The commission is chaired by Paul Silk, a distinguished former Clerk to the National Assembly and to this House, whom we all know. Paul is already getting to grips with his task and introducing himself to those with an interest in the commission’s work.
The hon. Member for Arfon referred to the two independent members, and they are very distinguished. Dyfrig John CBE is chairman of the Principality building society and a former deputy chairman and chief executive of HSBC bank. Professor Noel Lloyd CBE is a former vice-chancellor and principal of Aberystwyth university. Neither is on the commission with a political remit. They are there as independent members to offer their best advice and to support the other members. I am sure that absolutely nothing from them will have a political bias. They will consider matters objectively and with expertise.
There are also four party political nominees on the commission, each nominated by one of the four political parties in the Assembly. Professor Nick Bourne is the Conservative nominee, and former leader of the Welsh Conservatives in the Assembly; Sue Essex is the Labour nominee, and a former Welsh Assembly Government Minister; Rob Humphreys is the Welsh Liberal Democrat nominee, and director of the Open university in Wales; and Dr Eurfyl ap Gwilym is the Plaid Cymru nominee, and best known for giving Jeremy Paxman a run for his money. I am sure that the commission’s debates will be lively. I believe that that is a first-class team, and it will meet for the first time tomorrow to consider how it will work through the next two years. The commission has a challenging brief because, importantly, we hope that it will build consensus on its proposals.
I will give way first to the hon. Member for Carmarthen East and Dinefwr—I have not given way to him previously—and then to my hon. Friend.
Based on what the Secretary of State says about consensus, which we hope the commission will be able to achieve, will she outline the process, how its recommendations will reach the statute book, and the time frame? No one in Wales is interested in a kicking-into-the-long-grass game.
It depresses me a great deal to hear hon. Members say that I am kicking the matter into the long grass. I am certainly not. I am trying to take a mature and adult look at the financial structures and the constitutional and legislative structures affecting Wales. However, I will not prejudge the outcome, and I will not be prescriptive, but I have to look at potential timetables. Three have been set out. One has a shorter time scale, which assumes that, whatever the recommendations, no manifesto commitments or referendum would be necessary. In fact, it would be very difficult to produce a Bill by the time of the next general election, and the time scale could be unfeasibly short. However, again, I am not ruling that out; I am simply saying that it would be difficult. If we did that, and if there were new fiscal and constitutional powers, they would be implemented post-2015.
Another scenario is based on a manifesto commitment and no referendum, which would lead us to believe that there would be legislation after the next general election. However, I do not know what the Silk commission will recommend, or whether it will require both manifesto commitments and a referendum, in which case the time scale would be slightly longer.
I would like the hon. Gentleman to take me at my word. We are taking a long, hard look at the matter in a genuinely cross-party way. I think he knows that I made some effort to ensure that his party was included, because I thought it was important to start as we mean to go on. I hope that we will continue in that vein, although I appreciate that anything could happen at any time.
(13 years, 5 months ago)
Commons ChamberI 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.
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?
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.
(13 years, 6 months ago)
Commons ChamberI am grateful to the right hon. Gentleman, because I always remember sitting and listening to him give evidence to, I believe, a House of Lords Committee looking at the Barnett formula. He said that there was no case for reviewing it because it had served well. The fact that the last Government repeatedly ruled out reforming the Barnett formula means that any reforms must be looked at carefully. He is quite right that giving tax-raising powers would involve another referendum, which is something that this Government would look at carefully, because I am not sure whether Wales has an appetite at the moment for another referendum.
The Calman process in Scotland had a wider remit than merely to consider funding arrangements. Given the Labour party’s opposition to decoupling Westminster and National Assembly constituency boundaries, would it not make sense to base the make-up of the fifth National Assembly on 30 regional and 30 constituency Assembly Members?
That is a very interesting thought. Hon. Members are well aware that the Parliamentary Voting System and Constituencies Act 2011 broke the link between Assembly constituencies and parliamentary constituencies. I have agreed that we need to look carefully at the implications of having constituency boundaries relating to different areas and regions for UK and Assembly elections in Wales. I am taking the hon. Gentleman’s question as a recommendation that we have 30 first-past-the-post seats and 30 elected on a list system, and I will look seriously at that suggestion.
(13 years, 10 months ago)
Commons ChamberMy 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.
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?
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.
(14 years, 1 month ago)
Commons Chamber2. What discussions she has had with the Chancellor of the Exchequer on Government policy on the funding for the National Assembly for Wales determined in the comprehensive spending review.
I have discussed the comprehensive spending review with my right hon. Friend the Chancellor of the Exchequer and other Cabinet colleagues. The spending review sets out how the Government will carry out Britain’s unavoidable deficit reduction plan. We have secured a fair settlement for Wales. It is now for the Welsh Assembly Government to decide how to manage the reductions, reflecting their own policies and priorities.
The UK Government refuse to review Wales’s funding settlement, despite four independent reports highlighting the inequity of the Barnett formula, until the proposed March referendum. Will the Secretary of State explain the link between legislative competence for the National Assembly and funding for the Welsh Government, because under the terms of the Government of Wales Act 2006 they are distinct bodies?
The hon. Gentleman knows very well that there have been two recent reports to the Welsh Assembly Government by Gerald Holtham, both of which I have looked at and discussed with the First Minister. We are still waiting to see what the response is from the Welsh Assembly Government to the second report from Gerald Holtham and it is right and proper that we should wait and see what the Welsh Assembly Government say first. As the hon. Gentleman knows, the details in the coalition agreement are quite clear. We have said that the Barnett formula is coming towards the end of its time, but we have a priority to put this economy back into shape after it was left in such a disgusting mess by the outgoing Government.
(14 years, 2 months ago)
Commons ChamberMy hon. Friend has experience of the Welsh Assembly Government and the Welsh Assembly, so I will leave his comments to stand. I agree with him that the situation that we have inherited is shocking across the UK, and it is especially sad in Wales because gross value added per head is the lowest out of all the UK nations and has been that way since 1998. However, I want to be optimistic about the Welsh economy and I have recently visited some very successful businesses that are investing in Wales and looking at creating jobs, including Corus, Sharp and Ultrapharm—the latter is producing wheat-free healthy lifestyle products for Marks and Spencer. I have been impressed by the number of jobs that are starting to appear in the Welsh economy, and I want to encourage more businesses to come and do business in Wales.
With the public sector cuts inevitably having a disproportionate effect on the Welsh economy, what countervailing measures is the right hon. Lady arguing for with the Treasury to stimulate private sector growth in Wales?
I am sad that the hon. Gentleman has to ask such a question, but he knows that he has to because the last Government left this economy in tatters, and it has fallen to this coalition Government to put the economy back together again. As he well knows, we are providing an environment in which business can do business in the UK. We are reducing corporation tax by a penny each year, which will give us one of the lowest corporation tax regimes in the European Union, we have reduced the taxation regime for small companies, and we have incentives on national insurance for entrepreneurs setting up businesses. I can assure him that we are doing everything that we can to create a healthy environment in which businesses and private business can prosper.