(7 years, 7 months ago)
Commons ChamberThe Secretary of State mentioned how the Government are devolving teachers’ pay to the Welsh Government because education is devolved. FOBTs are now being devolved, but not full regulation, which simply means that we will be coming back with another Wales Bill to introduce the necessary regulations. Does my hon. Friend agree that if the Government concede this point, it would simply mean we would have the measures in place now and would not need to return to this point in future Wales Bills?
My hon. Friend is absolutely right. The Government have the opportunity to accept that we could lead the way in Wales. The Secretary of State has already pointed out that he is aware of the social and economic problems that these machines cause, and despite the Department for Culture, Media and Sport’s review, the Bill represents an opportunity. We know what the problem is, and we know we could deal with it right now.
The Secretary of State says that the Government’s intention is simply to match the powers given to Scotland, but the devolution arrangements for Wales, England and Scotland are already different—they are not in alignment—so there is no reason why the Government could not accept our amendments today and agree to the lowering of the stake and that all current and future machines should be covered. Anything less than that would be a bureaucratic nightmare for the Assembly and only half a solution to an already accepted problem. It is unacceptable for the Government to refuse to give the Welsh Assembly the full powers that it needs to deal with this problem simply because Scotland does not yet have them.
There has been a 50% increase in betting shops in Welsh town centres since 2004, but that overall statistic masks the true story. The Campaign for Fairer Gambling shared with me some research from Geofutures showing what many Labour MPs already know: there are four times as many betting shops in areas of high unemployment than in areas of low unemployment. The machines are deliberately placed so that people who are least able to cope with the drain on their finances that problem gambling can cause are subjected to the highest exposure to those machines most likely to cause it.
These terminals allow players to stake up to £100 every 20 seconds, which is why, although only 3% to 4% of the UK population use FOBTs, those players account for 66% of all UK gaming machine losses. Already massively profitable bookmaking companies benefit even more from the losses on those terminals, to the tune of £1.7 billion just in the last year across the UK.
It is not only Opposition Members who think that this is a problem. Polling carried out by 2CV for the campaign showed that 82% of betting shop customers perceived the use of fixed odds betting terminals as an addictive activity, with 32% of those borrowing cash to feed their habit. It also showed that 72% had witnessed violent behaviour emanating from players using the machines. Other research has backed this up, consistently showing that fixed odds betting terminals are one of the most addictive and problematic forms of gambling. One study published in a journal from the Cambridge Health Alliance, a Harvard Medical School teaching hospital, found that the terminals had a fourfold correlation with problem gambling, which is higher than any other gambling product available in the UK.
The machines are already causing real and lasting damage to some gamblers and they exacerbate problem gambling more than any other form of betting. If the UK Government will not tackle this issue now, they need to give the Welsh Assembly the power to do that in Wales. The power to regulate existing machines is crucial to tackle the harm that they are causing in many communities across Wales, and our amendments would help to ensure that all such machines were regulated. I urge the Minister to follow his own logic, to be innovative and to accept our amendments. If he does not do so, I am ready to test the will of the House, certainly on amendment (a).
(7 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I absolutely agree. It is about not only certainty of the funding for projects but managing the growth of rapidly growing areas in south Wales. In my own city of Cardiff in particular, we need to know that we are going to have the transport infrastructure to cope with the anticipated demand. The South Wales metro is crucial to that.
I have two brief points. One is about a specific project. My hon. Friend will be aware that, in Sarn in my constituency, significant transport investment brought a McArthurGlen designer outlet, ensuring that jobs and services were created. We can see real examples of where transport infrastructure works. In terms of planning and Government giving some reassurance, this situation places local authorities and the Welsh Government in extreme difficulty. Does he agree that it is all good and well the Welsh Government putting in processes for local development plans around highway infrastructure investment but, if we do not know what the funding is beyond 2019, it is virtually impossible for local government in Wales to deliver large-scale transport infrastructure projects?
My hon. Friend makes an important point. It is about long-term certainty for not only businesses but residents and local authorities. He mentioned McArthurGlen, which I am sure many of us have used. Many people do not know that the transport infrastructure and hub there were supported by European funding, which made a huge difference to access to the lower part of his constituency and, indeed, to the M4 corridor.
(7 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered the effect of exiting the EU on businesses in Wales.
It is a pleasure to serve under your chairmanship, Mr McCabe. The effect that exiting the European Union will have on businesses in Wales is incredibly important, so I thank hon. Members for attending. This debate offers an opportunity to recognise the challenges ahead and gives the Government the chance to clarify their Brexit plan for Wales, on which I sincerely hope for some detail from the Minister.
Businesses in Wales have serious concerns that the Government do not have a plan for how Brexit will work for them. The success of our local small and medium-sized enterprises should be a concern for us all. When local businesses do well, they not only generate jobs and meet the needs of our communities, but fill up our high streets, liven up our towns and inspire the businesses of the future. Businesses throughout Wales are facing dangerous uncertainty and need the Government to publish their plan for Welsh Brexit.
One of the starkest consequences of exiting the EU for businesses in Wales could be a widening funding gap. Each year the EU contributes about £650 million in investment to Welsh social businesses and SMEs. Each pot of funding that has helped our businesses to thrive seems only to have been made possible by EU contributions. The social business growth fund, for example, contributes £4 million, but £2.3 million of that is from the EU. Similarly, the Wales business fund provides £136 million, but £76 million is from the EU. In addition, we have low-interest loans from the European Investment Bank, which have enabled companies and public bodies throughout Wales to thrive; the European regional development fund, which, among other projects, will provide £106 million for phase 2 of the south Wales metro; and Horizon 2020, which has been pivotal for Welsh universities. Without Government planning for Brexit, our Welsh businesses could see a serious dent in their funding.
To the Government’s credit, the Chancellor has announced that the Treasury will guarantee all multi-year EU business funding agreed before Brexit, but we need confirmation of the Government’s plan for EU funding that does not fit that criterion. The Government must also provide clarity about the status of the cumulative £2.7 billion post-2020 EU funding that has not yet been underwritten by the Treasury.
Our departure from the EU might also have an impact on the availability of training in Wales. Jobs Growth Wales, the Welsh Government scheme to get young people into work, will support the creation of 8,955 new job opportunities for 16 to 24-year-olds over the next three years, and has only been made possible by the European social fund. Similarly, the Workways Plus scheme was made possible by £7.5 million from the European social fund. The scheme offers one-to- one mentoring to help long-term unemployed people become ready for work, gives an opportunity for people to gain new qualifications and finds paid positions for some.
Thousands of apprenticeships throughout Wales also rely on the EU and could be affected by our exit. The European Alliance for Apprenticeships, launched in July 2013, works closely with the Welsh Government to strengthen the quality, supply and image of apprenticeships. The alliance has been pivotal in securing and promoting opportunities throughout Wales.
Other consequences could include Britain leaving the single market or ending freedom of movement, which could affect businesses in Wales. Welsh universities, and the businesses reliant on them, would be particularly impacted by the end of freedom of movement. Each year more than 7,000 EU students enrol at universities throughout Wales. Were the Government to clarify their desired future migration arrangements, universities and associated businesses could plan accordingly. As things stand, the Government have given no clear indication of whether restrictions will be applied and the enrolment of EU students will decrease once we have left the European Union.
When this House debates the effect of exiting the EU, we sometimes allow the discussion to slip away from the reality on the ground, but I want to focus on the real impact that exiting the EU will have on one business in my constituency. It is one of the UK’s leading manufacturers in its industry. It has asked to remain anonymous, but kindly told me its concerns about the future, which I will share with the House. Its business is already being impacted by a downturn in construction activity and sizeable currency fluctuations. It tells me that the scale of potential change is vast, and that if widespread change materialises, the implications for resources and productivity are significant. For that industry-leading business, the level of uncertainty is of serious concern and must be addressed urgently.
This business employs people throughout the UK, not only in my constituency. It needs clarity on the form of Brexit, and it needs a plan. Specifically, it needs to know whether the Government plan to stay in the single market and the customs union. It tells me that it needs a commitment to ensuring that Britain can secure the right skills in the workforce. It also needs assurances that other policy voids, such as the one on energy efficiency, will be filled.
The bottom line is that business in Wales is crying out for a Brexit plan for Wales. When the UK leaves the EU in March 2019, in all likelihood the engine of Welsh business will not break down, but if the Government do not plan, it will slowly lose fuel and industries will come to a halt. Wales needs not a red, white and blue Brexit, as the Prime Minister suggested, but a comprehensive strategy to deliver the most secure outcome. Vague platitudes from the Government mean nothing and serve only to distract from the fact that, as things stand, we are being led into the night without a torch.
Does my hon. Friend agree that Norgine, a Dutch pharmaceutical company with a manufacturing facility in Hengoed, speaks for many businesses in Wales when it states that it wants a very soft Brexit?
I completely agree with my hon. Friend. I am getting that constantly from businesses in my constituency. My hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), the shadow Secretary of State for Exiting the European Union, has asked the Government 170 questions on how the UK will be shaped after we have left. To minimise that, I will ask the Government only three simple questions about the effect of exiting the EU on businesses in Wales. Will the Government guarantee to replace post-2020 EU funding that has not yet been underwritten by the Treasury? What steps will be taken to ensure that there is not a training shortage in Wales once we have left the EU? How will the Government involve business in Wales in their EU negotiations, and in representations made by the Secretary of State for International Trade?
May I add a fourth question to my hon. Friend’s helpful list of three? Will the Government come clean on whether deals have been done with companies such as Nissan in the north-east? In my constituency and that of my hon. Friend the Member for Alyn and Deeside (Mark Tami), we have a large number of car manufacturers. For example, Vauxhall, although in England, and Toyota employ my constituents and those of my hon. Friend, and they depend on access to the single market.
I completely agree with my right hon. Friend. In addition, the constituency of my hon. Friend the Member for Bridgend (Mrs Moon), who could not attend today, includes the Ford plant that borders my constituency, and I would ask for similar guarantees on the automotive industry, because it has a direct effect in Ogmore.
I will be surprised if the Minister answers any of my questions, but I will conclude with a warning. Leaving the EU will inevitably have an effect on businesses in Wales, but the uncertainty that the Government have created is completely unnecessary. The Government need a plan for businesses in Wales, which they need to announce to the House for the attention of businesses in all our constituencies. The EU is embedded in businesses throughout Wales, and it contributes to funding, training and opportunity.
The focus is often on the big primes—my constituency has Airbus and Toyota—but I am particularly worried about the supply chain, especially if it supplies other parts of a business in Europe. In that case, companies might think that they are better placed there and relocate there, which would cause massive harm to all our areas.
I entirely agree with my hon. Friend, and I echo his concern. I hear that constantly from small businesses, not only in my constituency but across the piece, living as I do in south Wales.
Do my hon. Friend and the Minister agree that there should be a level playing field? If certain motor companies are selected for special subsidies through under-the-table deals, that discriminates against other companies, whether they are big, like Airbus, or smaller suppliers. We need support for all exporters and subsidiary suppliers that will be confronted by tariffs, so that they can continue to compete effectively.
I thank my hon. Friend for that intervention, which the Minister heard. My hon. Friend is right to make the point that we need a fair playing field for all businesses across Wales and, indeed, the UK.
The opportunities that the EU offers will be sorely missed if the Government do not create better circumstances for businesses in a post-EU Wales. Businesses in Wales are clear that they are willing to adapt to a post-Brexit Britain, but they need certainty and assurances from the Government about what that will look like. As Members of Parliament, it is our duty to go back to our constituencies and tell businesses what they can anticipate from Parliament and the Government in the near future, but I cannot give them any assurances because this House has not been given any by the Government. I am not asking for a running commentary—I leave that privilege to the Foreign Secretary—and I am not hoping for a line-by-line strategy; I am asking only for a few select assurances, so that business in Wales can begin to plan.
I ask again: will the Government guarantee to replace the cumulative £2.7 billion post-2020 EU funding that has not been underwritten by the Treasury? What steps will be taken to ensure that there is not a training shortage in Wales? How will the Government involve businesses in Wales in their EU negotiations and representations made by the Secretary of State for International Trade? I suspect that the Government are unable to provide any answers, and I can only assume that is because they do not have any.
(7 years, 8 months ago)
Commons ChamberI pay tribute to the hon. Lady for the work she does with Parc prison in Bridgend. The relationship she has with Parc prison is indicative of the way an MP should work with such a facility. I pay particular tribute to Parc as a prison that has highlighted the importance of ensuring that family ties are maintained while prisoners are serving a sentence. The good practice shown in Parc should be repeated across the prison estate, and I would be delighted to co-operate with her in pushing this issue forward.
Over the past five years, the number of violent attacks on prison officers in Welsh prisons has risen by more than 138%. What discussions have Ministers had with the Justice Secretary about tackling violence in Welsh prisons?
My right hon. Friend the Secretary of State has regular discussions with the Department in question on this issue. No member of staff working on behalf of the state should be threatened or subject to violence in their workplace, so it is essential that we support prison officers in that context and crack down hard on anybody who is responsible for violence within or outside the prison sector.
(7 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Bailey. I congratulate my hon. Friend the Member for Aberavon (Stephen Kinnock) on securing the debate.
As matters stand, the implications of the UK leaving the EU will be seen in each town, city and village in Wales. Although we can be blasé about EU funding, and it is often not obvious, it has contributed enormously to each of our communities. In my constituency, agricultural funds have had a tremendously positive impact on all the farms. The common agricultural policy provides funds for more than 16,000 farms in Wales, and the European structural fund has also made a considerable contribution to various projects throughout Ogmore. Farmers throughout Wales benefit hugely from such funds, and in the same way, people in other industries have benefited from other such projects and funding, as my hon. Friend said so eloquently.
According to the Welsh Government, EU funding and projects have supported more than 200,000 people to gain qualifications, helped more than 70,000 people into work and created close to 40,000 jobs. The effect on funding for Wales of the UK leaving the EU should not be understated, and unless we plan accordingly, that funding will be sorely missed.
Uncertainty clouds the future of every aspect of EU funding in Wales. As I mentioned, the EU makes a fantastic contribution to our farming industry, but although the CAP pillar one scheme will be upheld until 2020, we do not know any detail of the arrangements with which the UK will replace it. Our farmers are therefore left in the dark and cannot feasibly plan for the future—they have no idea what funding they will receive in only four years’ time.
Those set to benefit from the proposed south Wales metro have also been left in the dark, as that project was almost certainly going to receive EU funding, without which it has become far more ambitious and possibly harder to achieve.
In August, the Chancellor offered what he referred to as a funding guarantee, which in truth is nothing of the sort. According to First Minister Carwyn Jones, the funding that the Chancellor referred to covers only about half of Wales’s regional funding. The Treasury’s guarantee to back EU-funded projects signed before this year’s autumn statement should be applauded, but there remains uncertainty for many other projects. Uncertainty benefits no one, and I hope that the Government will recognise that and clarify their position. The Welsh Government have worked well to ensure that Wales is on the way up, and I am sure that we all hope things will stay that way.
The future of Wales is in the hands of those who are managing our departure from the EU, and I fear that they do not understand the scale of the EU’s contribution to Wales. If agriculture funding is not replaced pound for pound, farms will close and jobs will be lost. If the Government do not replace the funding that would have come from the European social fund, there will be a skills shortage. I am sure all Members can agree about the success of the Jobs Growth Wales scheme, which is partly funded by the EU and has been led by the Welsh Government for several years. Likewise, if funding from the European maritime and fisheries fund is not replaced, those industries will suffer. The effect of the UK leaving the EU on funding for Wales could spell the end of some of the greatest projects in Wales and Welsh prosperity, and I hope that the Government will work to ensure that that is not the case.
The hon. Gentleman asks where the money is from a sedentary position. It would be a very irresponsible Government—perhaps like the one down the M4 in Cardiff—who would commit funding to a project without even having the costings. The hon. Gentleman should also be aware that we have a commitment to look carefully at the Swansea tidal lagoon. The Wales Office is working hard to ensure that that project has an opportunity to succeed, but it has to work for both the taxpayers and the people of south Wales.
I will take no lessons from the hon. Gentleman. He claims to be a democrat, but on several occasions in the debate he has called for another referendum. I think what we are seeing is an individual who perhaps did not fight as hard for his beliefs as he should have during the referendum and is now asking for a second chance. On the electrification of the south Wales main line, I will take no lessons from the Labour party, which did nothing to electrify the south Wales mainline, when the Government have just delivered improvements to the Severn tunnel and a new service from Swansea that started yesterday, and we will see fast trains getting to Cardiff and Swansea in due course. I expect the hon. Gentleman to welcome that. [Interruption.] The excitement of Opposition Members indicates to me that they are aware that some truths are being told.
I am not getting anywhere near as animated as the Minister suggests. Specifically on electrification, the chair of Network Rail yesterday said there is no money beyond 2019 to fund electrification to Swansea, which affects my constituency and affects the electrification of the valley lines. Will the Minister confirm whether the Swansea electrification will be completed by 2024, as previously committed to by the Welsh Secretary, the Transport Secretary and, I believe, the previous Prime Minister?
(7 years, 11 months ago)
Commons ChamberI thank the Secretary of State for his clarification.
The Bill offers an excellent opportunity to give the powers I mentioned to Wales, giving us the same powers as Scotland now has under the Scotland Act 2016. I do not accept the Secretary of State’s pretext for not accepting the new clause—that the time is wrong. This measure could be included in the Bill, whether or not sufficient time is available for bidding under any particular franchise timetable—the measure would be in the Bill, and it would be ready for whenever a new franchise timetable was put in place.
The Secretary of State has now clarified the point about Dŵr Cymru, which, of course, does serve customers in England—we need to remember that. I am sure that a Welsh-operated rail service could equally do so, whether operated by a public body, a not-for-profit organisation or a private company.
The Welsh Government have a strong track record of supporting rail services, from strengthening the Loughor bridge so that the dual track could be restored to ease congestion, to improving the valleys lines and pushing for electrification; supporting improvements to stations and surrounding areas, including integrated transport hubs, and developing plans for the Cardiff metro—not to mention supporting the Heart of Wales line, with exciting plans now to link the line to community regeneration, and looking at the feasibility of reopening the Carmarthen to Aberystwyth line. We now need to drive forward further connectivity across the Swansea Bay city region by improving services to and from Llanelli, Burry Port and Kidwelly and by developing the Swansea 9 lines services in the valleys around Swansea. I very much hope that the Secretary of State will rethink and will give the Welsh Government full powers and full options to look at every possibility for allowing not-for-profit companies, publicly owned bodies and so forth to bid for railway services in Wales.
On the community infrastructure levy, planning matters are wholly devolved, so it makes sense that the community infrastructure levy should be devolved too, given that it is an integral part of planning. The Secretary of State makes the point that developers could be put off by differences. Well, there are already some differences. The same argument was used against devolving building regulations, but they have now been devolved. It is up to the Welsh Government to think through whether particular differences will be a disadvantage or an advantage to Wales. Having the powers does not necessarily mean that they will have to make things different for the sake of being different; it is a discretion that is there to be used. It is crazy not to devolve this power when the CIL is so much part of the planning system.
I declare that I am a county borough councillor in the Secretary of State’s constituency, although I do not receive an allowance for that. I can speak ad nauseam about the CIL, having served as a councillor for the last eight and a half years in the Vale of Glamorgan. There is a clear line, and I hope my hon. Friend will agree. In terms of planning controls and building controls, but specifically around the CIL, there are already differences, as she mentions, by county borough. In certain counties, such as the one I represent as a councillor, the CIL is significantly higher than, for example, in the one represented by my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones). Surely it makes absolute sense to have that devolution so that the Welsh Government can set priorities with Welsh local government, rather than relying on the Department for Communities and Local Government.
Indeed, my hon. Friend is absolutely right—we have the explanation from the horse’s mouth, because he had to deal with this practically, in his everyday business, before he came into this place. I hope the Secretary of State will look again at this and consider very seriously the devolution of powers over the community infrastructure levy to the Welsh Government.
(8 years, 2 months ago)
Commons ChamberIndeed, it was laughable at times when the former Secretary of State noticed things to which we assumed he had already given his approval.
I want to make it clear at the outset that we welcome the reserved powers model, for which we have been calling for some time, as we feel that it has the potential to clarify the devolution settlement, and we welcome each of the new powers contained in the Bill. As the party that established the Welsh Assembly, we want to see our devolution settlement strengthened, with more powers devolved from Westminster to Wales. We are glad that the Assembly will have new powers over transport, energy and elections. As with the areas it already controls, the Assembly will be able to use those new powers to make different choices that reflect the will of people in Wales.
The powers over shale gas extraction will allow the Assembly to take into account the very real fears that people in Wales have about fracking. Labour has made it clear that, as the necessary safeguards cannot yet be met, we should not push ahead with fracking. We welcome the powers over energy planning consents for projects generating up to 350 MW, but we would certainly like full powers over grid connections devolved to Welsh Government. I hope that that is what we will hear from the Secretary of State.
That would not solve the delays with the Swansea bay tidal lagoon, which are due to the failure by Conservative Ministers to agree a viable financial framework for investors to proceed. I very much hope that the Secretary of State does everything he can to speed up the review, so that we can have a world first in Wales, with all the positive spin-offs for our manufacturing industry, rather than letting other countries steal a march on us.
The power to change the name of the Assembly means that we could call it a Welsh Parliament. Responsibility for the voting age in Welsh elections means that the Assembly could introduce votes at 16 for elections to the Assembly and to local councils. Whatever the Assembly decides, what matters is that those decisions will be taken in Wales by elected Assembly Members.
What concerns me about the devolution of powers to the Assembly on elections is that 16-year-olds could vote in local government and Assembly elections, but not in elections for MPs to the House. Does my hon. Friend share that concern?
Indeed. As a long-time supporter of votes at 16, which is now Labour policy, I share my hon. Friend’s disappointment that that could be the case.
(8 years, 3 months ago)
Commons ChamberMy hon. Friend touches on the crucial point. I pay tribute to his work since he came into the House. I remember his first Adjournment debate on north Wales transport links, in which he talked about the importance of the north Wales rail line and the A55. He is right to highlight the fantastic investment from Arriva Trains, which will see a tripling of the services from Llandudno in my constituency to Manchester airport. That development is most welcome to people in north Wales. I thoroughly accept that we need to modernise the signalling system, which is why we have a £47 million programme of investment during control period 5 and control period 6. That has slipped somewhat, which is a shame, but it is interesting to note that it did not preclude the decision by Arriva Trains to increase its services dramatically.
When the Secretary of State was serving as the Under-Secretary, he met my predecessor to discuss the Pencoed level crossing, which causes a significant amount of chaos in the town and the Ogmore constituency. Will he agree to meet me and constituents from Pencoed to carry on those positive discussions about improving the Pencoed crossing?
I welcome the hon. Gentleman to his place. I am aware that the Wales Office has been working with local government and the Welsh Government in relation to the Pencoed issue. I would be delighted to meet the hon. Gentleman—after all, my first by-election was in Ogmore. It was a very wet by-election. I would be delighted to meet residents of Pencoed once again.