Support for the Welsh Economy and Funding for the Devolved Institutions

Christian Matheson Excerpts

Tuesday 5th July 2022 Commons Chamber

[Simon Baynes]

Actually, I do think that the way it is being done now is fairer. I could never understand that schematic system, which was rigid in its thought process and implementation, and which meant that areas of deprivation, particularly in north Wales, were simply not going to get the level of funding. I am not saying that there was no European funding—there was some—but it was not anything like the largesse that went to west and south Wales. That simply cannot be right. The new system is much fairer in its thought process and application.

Another point that I feel strongly about is devolution, about which we have heard from several Opposition Members. To my mind, if the granting of money is devolved from the UK Government to local authorities, that is devolution. Why should it go to the Welsh Government, who already get a huge block grant and have plenty of scope within their remit of government to spend that money? It seems that they like devolution if it comes into their coffers, but they do not like it when it goes into the coffers of the local authorities.

[Christian Matheson (City of Chester) (Lab)]

The Government’s form of devolution is different and does not work because it is a beauty parade. Councils are asked to bid and then some get the money and some do not. It is not a fair form of devolution, because it pits one council against another with an opaque mechanism for deciding how councils get the money. At least if it goes to the Welsh Government, it is clear how Wales is getting the money.

[Simon Baynes]

With all due respect, I have been part of that process. As the Member for Clwyd South, I sponsored a bid, which was granted. One point I would make—[Interruption.] Opposition Members can make their point, which I know and which I anticipated, but let us take the world heritage site at the Trevor basin in my constituency, which includes the wonderful Thomas Telford aqueduct. Hitherto, it has never had any public money invested in it by the Welsh or UK Governments. I think that the constituencies of Opposition Members have received money for so long that they do not understand how starved places such as my constituency have been over a long time.

The hon. Member for City of Chester (Christian Matheson) said that the process pitted councils against each other, but that is not how I see it. Let us look at the process, in which I have been involved. Every council can apply, although some Labour councils do not because of a political point of view, which seems a very strange approach when the money and availability are there. It is not really pitting people against each other; it is an application. The Welsh Government are themselves an opaque mechanism for distributing money to regions such as north Wales. Those of us who represent north Wales constituencies are fed up with north Wales being starved of investment and south Wales in particular getting the lion’s share. For us, it is a much fairer system.

The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) referred to the financial problems that are besetting the country. I accept that we have high inflation and so on, but if Wales were independent, how would he get round the fact that its national net fiscal deficit—the gap between total public spending for Wales and public sector revenues from Wales—amounted to £25.91 billion at the financial year end in March 2021? This is about £8,200 per person compared with the UK average of about £4,700 per person. It seems to me that, if we went down the route suggested by Plaid Cymru Members, we would have a huge financial problem in Wales, and we never ever hear any cogent arguments to oppose that point of view. If they are going to vote for independence and to go for independence, they have to prove to the country how they would make the books balance.

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[Christian Matheson (City of Chester) (Lab)]

May I say what a pleasure it is to follow my hon. Friend the Member for Newport East (Jessica Morden)? I also congratulate the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) on securing and leading this debate.

When I rise to speak in any debate on Welsh affairs, I suspect that Members can predict straightaway what I will talk about. Sure enough, there are no surprises from me today: I will speak about Chester’s place at the heart of the transport links for all of north Wales. We are debating Welsh economic growth, and the railway network around Chester is central to what Members across the House hope to achieve in north Wales. The hon. Member for Clwyd South (Simon Baynes) spoke about the dislocation that north Wales sometimes feels from the south. That is something that I hear, too. By improving connectivity in north Wales through Chester, we could certainly minimise that.

Chester is the gateway to north Wales, with lines heading down to Shrewsbury through Chirk and Gobowen, down to Wrexham and further on that way, and along the beautiful north Wales coastline. I see the hon. Member for Aberconwy (Robin Millar) in his place. He spoke earlier about Conwy castle, which is a fantastic day out on the train from Chester. I went crab fishing on the quayside there as a child, and I took my children there when they were younger. That railway line is also an economic artery, linking up with the ferries coming in from the Republic of Ireland, and it absolutely needs upgrading.

The central element is the Growth Track 360 proposals that are being put together with the Mersey Dee Alliance, which covers the cross-border area, as well as the local authorities, the North Wales Economic Ambition Board and the local enterprise partnership on my side of the border. The proposals will increase signalling and platform capacity at Chester and allow for through services from north Wales to Manchester and Liverpool. The Government have a good story to tell on those Liverpool services, because they opened the Halton curve to allow through trains from Liverpool. However, because of the continuing restrictions on the north Wales coastline, the number of direct services from Liverpool through to north Wales is restricted. Can we please have some more oomph from Ministers in the Wales Office and the Department for Transport, working with Transport for Wales, so that we get confirmation that the work will go ahead in Chester and its station to increase capacity, and to increase train frequency along the north Wales coastline to five an hour, given the full benefits that that will bring to north Wales?

That would tie in neatly with something I have been pushing for since I was first elected: the electrification of the line from Crewe to Chester. There is something of a bottleneck at Chester, and there are restrictions. We keep being promised that that last 20 or so miles will be electrified, but the promises seem to be disappearing further into the distance. This work is essential, particularly if we are to get the full benefits of High Speed 2 in Chester and on into north Wales. The Minister has been very supportive of the electrification, and I believe that the Secretary of State has visited the area and is aware of the issue. If north Wales is to get the full benefit of HS2, we need to get further forward with electrification.

A lot more immediate than HS2 is the issue of through services from north Wales to Chester and on to London Euston. We used to have 12 such services a day, but it was reduced to one a day. We are now supposed to be grateful for an increase to two a day—a doubling of the service. The railway companies are telling us that there will be an increase to 14 direct services a day between London and Chester, with a majority of those going on, along the north Wales coastline, to Bangor, Llandudno and Holyhead. We absolutely need the Government’s support, through the Department for Transport and the Wales Office, and that of Transport for Wales, to nail this down. We need those direct services, and I would be grateful if the Minister gave the issue attention.

The hon. Member for Clwyd South and I had an exchange about levelling-up bids. My constituency is not bidding in round two, not because the local authority, Cheshire West and Chester, lacks ambition—it absolutely does not—but because the bids take up a lot of officer time and office resources. There is something of a beauty contest here, and hard-pressed local authorities do not necessarily want to gamble on getting bids approved. However, I am pleased to support Flintshire County Council’s bid for the Borderlands line. That will benefit his constituency, as well as the constituencies of my right hon. Friend the Member for Alyn and Deeside (Mark Tami), and my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders), as well as Chester.

Although it lies outside the boundaries of my constituency, a new station at Deeside will absolutely help the western side of my constituency. It will also help the Deeside industrial area, in which there are 26,000 jobs, to grow even further. It is immediately outside Chester, in north Wales. A station there would provide additional connectivity with Liverpool and Wrexham. If the bid is successful, it will also allow more trains on the Chester to Wrexham line, which will help Wrexham to grow, because it will allow for railway sidings at the Hanson cement works. The way trains are manoeuvred around at the moment requires space on that line, as there are limits on the number of trains that can pass. Again, the Government have a story to tell on this: I think I am right in suggesting that the track from Chester to Wrexham has been doubled since 2010, so the Government are not getting the full benefit of an investment for which they can claim credit. Let us allow this bid, which I support; let us get the developments on the Borderlands line sorted; and let us allow real regeneration in Chester and, of course, north Wales.