North Wales Economy

Debate between Chris Ruane and Lord Hanson of Flint

Tuesday 1st April 2014 Westminster Hall

[Mr David Hanson (Delyn) (Lab)]

Good morning, Mr Hollobone, and welcome to the Chair. It is a great honour for you to be here to share our Welsh discussions. I am pleased both to have had the luck to secure this debate, and that we have a strong showing from Members representing north Wales constituencies. We also have my hon. Friend the Member for Caerphilly (Wayne David) and my hon. Friend the Member for Llanelli (Nia Griffith), who is on the Front Bench.

This debate offers us an important opportunity to discuss the north Wales economy, for my colleagues and me to promote what is good and strong about north Wales to the rest of the United Kingdom, and for us to look at some of the key issues that can help our economy grow even faster and stronger and improve the living standards of our north Wales constituents. It is also an opportunity for us to press the UK Government to be an active Government who are engaged in promoting the economy and are not standing back. They should work closely with our colleagues in the Welsh Assembly to achieve economic growth and be active as a part of a wider Europe. In the run-up to the European elections, we need to emphasise strongly how important Europe is to the north Wales economy. I will emphasise our economy’s cross-border nature. The Deeside hub is a key economic driver for north Wales and for north-west England, the Wirral, Liverpool and Cheshire. Many of my constituents work in England and many people in England work in north Wales, and that cross-border working is extremely important to our economy.

The economy of north Wales was worth a staggering £10.6 billion last year, which represents £15,500 per person. That is 72% of the UK average, but that is because constituencies such as that of the hon. Member for Aberconwy (Guto Bebb) have a high retirement population that drags down the figure. Our economy is still growing, leading the charge for the UK economy as a whole. In north Wales, we have a number of economic success stories in renewable energy, such as West Coast Energy in my constituency, Mostyn docks and the wind farms off the north Wales coast, such as Gwynt y Môr.

[Chris Ruane (Vale of Clwyd) (Lab)]

What does my right hon. Friend think of the Prime Minister’s comments when he visited Llandudno in 2006? He described the turbines off the north Wales coast that I switched on as “giant bird blenders”.

--- Later in debate ---

[Mr Hanson]

It is good news, and I welcome the investment in apprenticeships. Other companies, such as Airbus, do the same in our area. We also have a strong automotive industry, and this week Toyota made a strong case for engagement with Europe to ensure that we can export models from the United Kingdom to Europe.

North Wales has the strongest manufacturing base in the UK, and I shall focus on Airbus, which employs between 1,500 and 2,000 people in my constituency, with more employees coming from across north Wales. It is a vital manufacturing industry for UK economic growth. A potential 30,000 new aircraft will be built between now and 2032, representing a staggering $4.4 trillion-worth of business. Airbus has the opportunity, with active Government support, to secure a key part of that market. That is important, not just for the 7,000 people who work at Airbus, but also for many others, including those who are part of the UK supply chain. Airbus has spent £180 million on that supply chain in north Wales. The strong site at Broughton was developed with active support from the Labour Welsh Assembly and the previous Labour UK Government, and with the new wing development we have the potential to grow the site further.

We also have strong sectors in other areas. Tourism is a key activity for north Wales. We have a great tourist offer, which we can grow still further. Millions of people are within a two-hour drive or train journey of our tourism economy. We have a strong agricultural sector with sheep and cattle farming, as well as milk production. Food production and distribution are growing in importance. For example, we have food festivals in Mold in my constituency. That industry has a £3 billion value to Wales as a whole, according to a briefing I obtained yesterday from NFU Cymru. We have strong local and national Government, with many people putting their wage packets, through employment in the health service and the county council, into the economy. We have a particularly vibrant small business sector, which is extremely important in growing our economy. Many wage packets come into north Wales via the car manufacturers, such as Vauxhall at Ellesmere Port, the banking sector in Cheshire and the Deeside north Wales hub, which is one of the strongest areas in the United Kingdom.

The lesson that we must learn is that we need active Government engaged in all those issues, particularly the Deeside enterprise zone in the constituency of my hon. Friend the Member for Alyn and Deeside, which has the active support of the Welsh Assembly and has invested through a capital programme in schools and colleges in our constituencies. In my own county, £64.2 million of that programme is going into four facilities in my county of Flintshire, one of which is the community learning campus at Holywell high school. The theme I am developing is active Government. That investment is finding its way into construction and supply in the private sector, which is building and developing those facilities.

North Wales continues to benefit from EU funds. It is important, in the run-up to the European elections, that we do not allow people to take the stance that the EU is bad for Wales, because more than 8,000 new businesses have been created, and £665 million of contracts have been won. Some 13,000 businesses are supported in Wales, and north Wales has a considerable number of those businesses.

We face some key challenges, however. In Flintshire, wages have fallen in real terms by £3,000 per family on average since the economic crisis in 2007. A TUC study has shown that north Wales has suffered the biggest wage cut in Wales, with an average drop of £57 a week. The latest figures show that the number of unemployed people in my constituency has increased in the past year and that the number of unemployed young people is still rising. In my county, 1,567 people are each losing £880 because of the changes to the Government’s spare room subsidy—the so-called bedroom tax.

The cost of energy bills is also hitting the north Wales economy hard, with the cost of energy rising by some £300 over the past three years, meaning that money is taken out of the economy instead of being spent on creating jobs and services for the future. Although we do have strong sectors, such is the lack of recovery in the area that only yesterday Creative Foods, which is operated by Brakes, announced that it would consult on the loss of some 150 jobs and the closure of its food manufacturing plant in Flint. The consultation will end in late May. Will the Minister contact the Welsh Assembly and the company to see whether the factory can remain viable or whether an alternative buyer can be found? Brakes has operated in Flint for the 20 years in which I have been a Member of Parliament, and it is a vibrant factory. Aaron Shotton, leader of Flintshire county council, has arranged for the council’s enterprise department to meet Brakes to examine the situation.

In addition, this week I received a notification from Aviva as part of the Budget submissions. The letter states:

“Wales had one of the lowest levels of confidence in general economic conditions over 2013”.

Although our manufacturing, tourism, renewables, businesses and agriculture are strong, both the Welsh Assembly and the UK Government should use business policy to develop our offer and improve and grow our economy still further.

[Chris Ruane]

I thank my right hon. Friend for giving way a second time. Does he agree that the lack of business confidence may be due to the Conservative coalition Government always running down Wales, the Welsh economy, the Welsh health service and Welsh education, using that as a political tool for their election strategy?

[Mr Hanson]

It does not help. I hope that the Minister will not only focus on the positives but listen to the Members here today who represent north Wales. Every Labour Member from north Wales is present, along with the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) and the hon. Member for Aberconwy—the hon. Member for Arfon (Hywel Williams) is not present—so we have a strong cross-party group that is trying to back north Wales.

I want to discuss four or five areas where the Government can help to grow the economy. We have discussed transport infrastructure with the Minister before, but real opportunities exist for us to improve connectivity between north-west England and north Wales and between north Wales and the economic driver that is London. I want to put on the record my support for High Speed 2 and for Sir David Higgins’s decision to draw the Government’s attention to fast development at Crewe. I also support attempts by the Government and the Assembly to develop electrification between Crewe and the north Wales coast. I do so not for the sake of speed—an extra 10 or 15 minutes off journey times would be nice—but for the sake of capacity, which is crucial to our economy. HS2 will bring vital extra capacity to the area for tourists, for freight and for businesses.

Oral Answers to Questions

Debate between Chris Ruane and Lord Hanson of Flint

Wednesday 20th November 2013 Commons Chamber

[Mr David Hanson (Delyn) (Lab)]

7. What steps the Government are taking to increase the number of people in Wales who earn a living wage.

[Chris Ruane (Vale of Clwyd) (Lab)]

11. What steps the Government are taking to increase the number of people in Wales who earn a living wage.

Oral Answers to Questions

Debate between Chris Ruane and Lord Hanson of Flint

Wednesday 9th October 2013 Commons Chamber

[Mr David Hanson (Delyn) (Lab)]

3. What assessment he has made of wage levels in Wales since 2010.

[Chris Ruane (Vale of Clwyd) (Lab)]

11. What steps the Government are taking to tackle low pay in Wales.

Finance Bill

Debate between Chris Ruane and Lord Hanson of Flint

Tuesday 28th June 2011 Commons Chamber

[Mr Hanson]

I do. My hon. Friend spent many a happy hour in Committee discussing those very issues.

If the Government are not interested in master builders and the voluntary sector, and if they are not interested in the impact on public sector operations such as hospitals, schools and universities, perhaps they will listen to the British Retail Consortium, which states:

“Increasing the VAT rate to 20 per cent would cost 163,000 jobs over four years and reduce consumer spending by £3.6 billion over the same period.”

Only today, there were job losses at Jane Norman. There have been job losses at Habitat, Focus DIY, HMV, Mothercare, Comet and HomeForm.

[Chris Ruane]

And Thorntons.

[Mr Hanson]

There have also been job losses at Borders. There have been job losses across the board in the retail sector as a result of the impact of the VAT increase.

[Stephen Williams]

I thought I heard the right hon. Gentleman say Borders, but Borders went bust under the previous Labour Government. Would he like to retract that?

[Chris Ruane]

I said Thorntons.

[Mr Hanson]

I misheard my hon. Friend the Member for Vale of Clwyd (Chris Ruane). I thought he said Borders, but he said Thorntons, which has today lost 10,000 jobs. It may be of some interest to the hon. Member for Bristol West (Stephen Williams) that those jobs have been hit, as has the confidence in the retail sector, by VAT increases.

My hon. Friend the Member for Wrexham mentioned charities. Earlier this year, Sue Ryder, the charity, stated:

“Today's rise in VAT to 20% will cut the amount of social care that charities can deliver”.

That has an impact.

What is the impact on fuel of the VAT rise? People with a typical family car will pay £1.35 more to fill up their tank, as will people moving goods around the country. The VAT increase has hit the retail sector and we see job losses across the board, but there is also concern from the tourism sector. Just recently, on 6 June, the British Hospitality Association stated that the high level of UK VAT is a deterrent to tourism growth. Once again, those are the impacts on growth, jobs and public services.

North Wales Economy

Debate between Chris Ruane and Lord Hanson of Flint

Tuesday 29th June 2010 Westminster Hall

[Chris Ruane (Vale of Clwyd) (Lab)]

This afternoon, I hope to illustrate the progress that has been made under 13 years of a Labour Government in the economy of north Wales, how fragile that economy is, and how threatened it is by current proposals and possible future proposals from the Con-Dem coalition. I hope to look at the reasons for the success of our local economy and examine the threats from the coalition. I will be seeking specific assurances from the Minister on a number of specific points of the current Con-Dem policy.

The history of north Wales shows that in the last 40 or 50 years we have relied on tourism, heavy industry and agriculture, all three of which have taken a pounding. At Courtaulds in Flint, in the constituency of my right hon. Friend the Member for Delyn (Mr Hanson), there were 3,000 job losses and at Shotton in the constituency of my hon. Friend the Member for Alyn and Deeside (Mark Tami), there were 7,000 job losses in 1981 under the Conservative Government. That Conservative Government decimated—dare I say annihilated?—heavy industry in north Wales. Shotton steelworks had the biggest industrial lay-off in a single day: 7,000 workers were laid off in one day. That was the Tory legacy.

Labour believes in timely and positive Government intervention in key industries. When we look at the success of north-east Wales, we see that the last Labour Government gave launch aid back in 1998 to Airbus— £500 million of launch aid. From the ashes of Shotton steelworks rose the Airbus factory, the most expansive factory in western Europe, which has 7,000 workers and 700 apprentices.

[Mr David Hanson (Delyn) (Lab)]

Does my hon. Friend agree that one of the key issues that we must address is ensuring that future work comes to the Airbus factory and that one of the key elements in that regard was the signing by my right hon. Friend the Member for Coventry North East (Mr Ainsworth), when he was Secretary of State for Defence, of the contract for 22 aeroplanes under the A400M project, which the current Government have not yet confirmed? Will my hon. Friend seek today an assurance from the current Government that they will confirm that order for 22 planes?

[Chris Ruane]

I back my right hon. Friend on that issue. I give credit to the Government—I do not want to be too negative, lest anyone think that I am—for the decision that has been made about the AirTanker. People in north Wales are grateful for that decision. However, the A400M project needs to be looked at very carefully for the good of Britain’s defence and of workers in north Wales.

The Con-Dem Government have said that they do not believe in big Government intervention in industry, as they have shown by withdrawing the loan to Sheffield Forgemasters steelworks. We do not want that situation repeated in Wales.