Welsh Affairs

Craig Williams Excerpts

Thursday 3rd March 2016 Commons Chamber

[Stephen Kinnock]

I thank the hon. Gentleman for his intervention. Membership of the European Union is defined by how a country engages and how it works with partners in Brussels—both with the European Commission and the other member states. What we have is a Government who, in 2011, recognised that there should be an energy-intensive industries compensation package, but then failed to knock on the door in Brussels and make it happen. How can it be that it took five years to deliver that deal?

When it comes to the dumping of steel, the British Government are the ringleader of a set of member states that do not want to reform the anti-dumping rules—so we still have the lesser duty rule—and are cheerleaders for China, lobbying for it to have market economy status. I am afraid that we need to draw a line under this constant scapegoating of Brussels. The blame should be laid squarely at the doors of Nos. 10 and 11 Downing Street and the rest of the Cabinet. Unlike other member states, they have failed to engage in Brussels in a way that wins for British business.

The Government operate in a fog of laissez-faire ideology. They pray to the gods of the free market, and then they hope for the best. In reality, the market economy can function effectively only if it is regulated. Just as football requires the off-side rule to ensure fair competition, so our steel industry requires the right regulatory framework, so that it can trade in equitable conditions—on a level playing field. Instead, the Government’s blithe faith in the free market is driving them to lobby for China to be given market economy status, and to refuse to support the scrapping of the lesser duty rule.

I wish to state now, with utmost gravity, that if speedy action is not taken to prevent the dumping of Chinese steel, we will witness the beginning of the end of UK steel making. The Government know full well that this foundation industry is hanging by a thread. Neither free market dogma nor cosying up to Beijing should be allowed to impede their patriotic duty to emulate other EU countries and stand up for the men and women who are the backbone of the British economy.

The Minister for Enterprise and the Secretary of State for Business, Innovation and Skills recently visited my constituency, and I hope they will return so that they can go to the homes of some of my constituents who have lost their jobs. I hope they will look those men, women and families in the eye and explain themselves—explain how they can claim publicly that they are supporting the steel industry, while fighting tooth and nail behind closed doors against the lifting of the lesser duty rule and for market economy status for China.

I hope those Ministers will explain how they can claim publicly that they are changing public procurement to maximise the use of British steel, while allowing the Ministry of Defence to build the latest flotilla of Royal Navy frigates with Swedish steel. I hope they will come to Aberavon and explain the breath-taking contrast between their words and their deeds, for the people of my constituency deserve an explanation.

I am certain that the British steel industry has a promising future if it is given the right support by Government. The men and women at the Port Talbot works make the finest steel that money can buy and they are breaking all production and efficiency records, but the industry requires a long-term industrial strategy based on a sustained, comprehensive approach to skills, investment, regulation, energy and industrial relations. That is why I am proud to co-chair a working group of the all-party parliamentary group on steel, which will produce a report, “Steel 2020”, on formulating a long-term industrial strategy for British and Welsh steel.

Our strategy for the future of the Welsh economy must not be limited to steel. We need a new industrial revolution grounded in the new economy of renewables and connected technology, a fourth industrial revolution such as the one that was spoken of at the recent meeting of the World Economic Forum in Davos. I see Wales at the forefront of that revolution. The Swansea Bay tidal lagoon could transform the energy industry, but frustratingly, its future is under threat owing to the Government’s perpetual flip-flopping. A positive decision on the lagoon would not only put a much needed tick in the Government’s ever-diminishing green credentials, but deliver a massive boost to the local economy. By committing to sourcing as much steel as possible from the UK, it would significantly help the UK steel industry. That project needs and deserves rapid advance. The Government need to get off the fence, and fast.

The Government’s short-sightedness is undermining other forms of renewable energy, such as wind and solar. These are burgeoning industries in my constituency, with hundreds of jobs at stake, but they are under threat because of the Government’s moves to cut price stabilisation mechanisms, such as the feed-in tariffs. The Government have been on a policy descent from “Hug a huskie” to, in the words of the Prime Minister, “Let’s cut the green crap”.

[Craig Williams (Cardiff North) (Con)]

May I point out the hypocrisy in what the hon. Gentleman is saying? There is a contradiction between supporting steel—Celsa Steel, for example—which uses so much electricity, and putting a price on that electricity for renewables?

[Stephen Kinnock]

I thank the hon. Gentleman for his intervention. As we have discussed, it is clear that energy-intensive industries require support from Government. That was recognised by the Chancellor in 2011. The support that has come, finally, is welcome. The big question for me is how it could possibly have taken five years to make that happen—to get the state aid clearance that was required from the European Union. Fundamentally, the strategy for energy must be about spreading the burden of the cost more effectively so that our energy-intensive industries are not being hung out to dry by an energy policy that does not make sense. It is also about making a firm commitment so that those investing have a sense of the stability and sustainability of the market in future. We currently do not have any of those things in place, which is why we are in such a mess.

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[Wayne David]

My hon. Friend is too modest to say this, but it is worth pointing out that he was the author of that book. I disagreed with some things in it, but it did have many words of wisdom.

My central point is that those of us who believe in devolution need to recognise that there needs to be a high degree of consensus, dialogue and debate among all politicians involved in the process, both here and in Cardiff Bay. I really hope that when the Government start from scratch, they will have learned the cardinal lesson that they have to consult—genuinely and openly, and on a cross-party basis—opinion here in Westminster. I think that all our colleagues are prepared to contribute.

It is also important that the Government work with the Welsh Assembly. It is very important that we have that dialogue with Cardiff Bay, because, to be frank, it is unthinkable that a Westminster Government could decide a devolution package that is not acceptable to the body to which power is being devolved. If they had proceeded with the draft Bill, we might have been in that situation, ridiculous though it seems. I ask the Government for dialogue not only here, but with our colleagues and friends back in the Welsh Assembly.

My second point is about the European Union. In my view, there is an overwhelmingly strong case for the United Kingdom to remain a full member of the European Union, but that case is particularly strong for us in Wales. There can be no doubt whatsoever that the European Union is vital for jobs, exports and, therefore, prosperity in Wales.

Last week the Prime Minister visited the General Electric aircraft engine maintenance plant in Nantgarw, just outside my constituency. He made his case for why Britain should remain in the EU and why it benefits south Wales and General Electric. Objectively, he had a strong case to make, because General Electric is one of my constituency’s most important employers; many of the workers travel down Nantgarw hill to work there. It recognises how important it is to have a good relationship with the EU and to be an integral part of the single European market. I have no ideological axe to grind; empirically, we recognise that it is good for our economy to be firmly linked to our partners in the rest of Europe. It is as simple and straightforward as that. It is a bread and butter issue.

On Monday night, I met representatives from DS Smith Recycling Ltd, which is a British company with a strong European presence. It is expanding its operations in an innovative way throughout the European Union, and it is a major and important employer in my constituency of Caerphilly. The company is not committed to the left or to the right; it simply wants to expand its work and be a good employer. It recognises that it would be absolute lunacy for itself and the people it employs if we extricated ourselves from the European Union. The message that went out on Monday evening was, “In the interests of the company, jobs and prosperity, please make sure that the strong case is put for Britain to remain in the European Union.”

The two companies I have mentioned have innovative and well-structured training programmes, which the EU’s structural funds contribute to in large part. Wales has been allocated £2.4 billion from the EU structural funds for the 2014 to 2020 period. Indeed, Wales is a net beneficiary—more money comes in than goes out—to the tune of £838 million a year. There are strong practical reasons for making the case over the next few weeks that Britain and Wales should remain an integral part of the European Union. It makes sense for ordinary people and for the country’s prosperity, to which we are all committed.

My final point is also linked to the prosperity of Wales, namely the question of whether Heathrow should be expanded and have a third runway. As a Welsh MP, I believe that the strongest single argument in favour of the third runway at Heathrow is the positive impact it would have on the Welsh economy. That is not just my view. The First Minister of Wales, Carwyn Jones, was clear the other day that the Welsh Government support the expansion of Heathrow because it would provide the best possible support for investment, tourism and jobs in Wales. His comments are informed by hard facts and clear analysis. It has been estimated that 85% of the new manufacturing jobs that an expanded Heathrow would generate would be created outside London and the south-east. Up to 6,000 of those manufacturing jobs would be in Wales, constituting a significant part of the 8,400 Welsh jobs accompanying a total of £6.2 billion of economic benefit.

Those facts speak for themselves. It is essential that the Government stop shilly-shallying and give the go-ahead for the expansion of Heathrow. It makes sense for the country as a whole and for Wales in particular.

Whether or not Heathrow will bring the best possible benefits to Wales depends on access. That is why it is essential that Heathrow’s expansion is accompanied by the electrification of the Paddington to south Wales railway line and the construction of a rail spur directly to Heathrow. I am aware that a consultation began this week.

[Craig Williams]

On the subject of Governments dilly-dallying, if we are going to have a third runway at Heathrow—which I support wholeheartedly—would it not make sense for the Welsh Labour Government to get on with the M4 relief road and improve the tunnels and the capacity of the M4 so that we can get to the airport?

[Wayne David]

I am in favour of that, but the decision is not up to the Government in Cardiff alone. A lot depends on what the Government in London do and on whether financial facilities are made available to the Welsh Government. That is important.

It is vital that a message goes out from the consultation that Network Rail is commencing that the Governments in Cardiff and in London are in favour of the spur to Heathrow. When the Minister replies, I would like him to say that strong representations will be made to Network Rail to make sure that we get the spur. We hope that that will be part of a longer-term project for the expansion of Heathrow airport.

I have spoken about three important issues. We want a coherent draft Wales Bill to be presented, and I hope that it will be formulated on the basis of consensus. I hope that in the next few months many Members in this Chamber will decide to pull together and argue the case for Britain’s continued membership of the European Union, highlighting its importance for Wales. I also hope that we will be able to unite in support of an expanded Heathrow airport. That, again, would be of tremendous benefit to the Welsh economy.

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[Craig Williams (Cardiff North) (Con)]

In the spirit of St David’s day, may I first give huge congratulations to the hon. Member for Aberavon (Stephen Kinnock) on securing this important debate? More importantly, I thank my hon. Friend the Member for Montgomeryshire (Glyn Davies) for introducing a bit of consensus just before my speech, which I will build on. In that spirit, I add my name to the lobby of the hon. Member for Newport East (Jessica Morden) on the Severn bridge tolls, which are an important cross-party issue on which we all campaign strongly. I would certainly like to come to the meeting with the Department for Transport if Ministers can arrange that.

I want to touch on several points. I am mindful of the time limit, but as the Member for Cardiff North it would be remiss of me not to start with the Cardiff city deal. I know that my colleagues would be sad if I did not bang on about it for at least half my speech.

It is an important time for Cardiff, and an exciting time to be involved with what I see as the engine room of the Welsh economy—Cardiff and the city region. If the city deal is successful, it could bring a lot of scope, investment and vision together. The next couple of weeks will be incredibly important for our capital city. I want to make a couple of pleas from the Chamber about private sector involvement. I know that the Minister is a champion for us, and I implore him to do anything he can in the spirit of consensus and the framework of the city deal.

The Aston Martin announcement was so welcome and brilliant, and the Minister was integral to that. It resulted from championing by the UK and the Welsh Governments. If we take that partnership approach on many more issues, we could secure much more investment. We are all tempted, so close to an election, to take all the credit for anything positive in Wales, but there are many more companies floating around south Wales—and I hope north Wales, but I am unabashedly the champion of Cardiff—and working together can help secure investment.

Electrification is a key issue. When that happens in Cardiff and then in Swansea, there will be an opportunity to tie into the south Wales metro. I want to work with the Welsh Government and Network Rail to get work in the south Wales valleys into the right control period. I want to be involved in the conversations, for example, about whether the line is heavy or light. I want to do what I can, and I want the spirit of consensus to get into the city deal. I hope that the metro will be at the core of that. I realise that the next couple of months will be difficult and that we might not quite agree on everything in the run-up to the Assembly election. However, in the spirit of consensus. I very much look forward to working with Councillor Jayne Cowan in Cardiff North, who, with 16 years of experience on the council, could help deliver the metro.

I also want briefly to mention IQE in the context of the city deal. It is a great Cardiff and Welsh company that produces the compound semiconductors that we find in most electronic devices. Its relationship with Cardiff University, and the new catapult that the Chancellor of Exchequer launched in Cardiff, are bringing high-end, brilliant manufacturing to Wales—exactly the sort of industry that we need to attract together. By “together”, again I mean the UK and the Welsh Governments.

Without venturing too far into the European debate, I have to say that Cardiff University punches far above its weight. That ties into Horizon 2020 funding and the critical mass we get in the single market for research and development, which I support wholeheartedly. The metro, electrification, IQE and working with the private and third sectors will deliver a Cardiff city deal to rejuvenate south Wales. The valleys are important in the Cardiff city deal, which might start with Cardiff but is incredibly important to that critical work population of about 1.5 million people. Although Cardiff is the engine room of the Welsh economy, we need transformation for south Wales.

[Jonathan Edwards]

The hon. Gentleman alluded to the importance of the European Union for Cardiff University and research funding. He knows, of course, that the leader of the Conservative party in the Assembly has said that he will vote for Brexit. What impact does the hon. Gentleman think that that will have on higher education policy in the Conservative manifesto for the Assembly elections?

[Craig Williams]

The hon. Gentleman is trying to ruin the consensus within my party as well as the debate. I will try my best to skirt around that issue. Although I disagree with Andrew R. T. Davies, a good friend and colleague, we will work those things out when he is First Minister. I therefore would not worry about that.

Let me move on quickly to the redevelopment and challenges that I envisage for the south Wales and Cardiff economy. The hon. Member for Caerphilly (Wayne David) is not in his place, but I am sure that he will read Hansard later. The barefaced cheek of saying that we are waiting for some sort of financial package from the UK Government for the M4 relief road is unbelievable. That borrowing power—the old Welsh Development Agency powers—has been available to the Welsh Government for a considerable time and they have not done much to progress that.

[Mr David Jones]

Does my hon. Friend accept that although the Welsh Government may not have done much in south Wales, they have done nothing at all in north Wales?

[Craig Williams]

I wholeheartedly accept that, and I feel for the A55 as much as I do for the M4. However, the M4 relief road is key for our links to Heathrow, as is the spur for Network Rail. The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) referred to Andrew R. T. Davies—the next First Minister—and he has committed to having, within 12 months, a spade-ready M4 relief road. I massively welcome that and look forward to its coming to fruition.

I am conscious of the time, but I want to touch on the redevelopment of the M4 and the Eastern Bay link road. It is a shame and a travesty that Wales’s capital city does not have a circular road around it, and any visitor to the National Assembly for Wales who comes out of the Butetown tunnels then sees the national disgrace of a road that ends—it is a road to nowhere and it needs finishing. I know that phase 1 is now on the cards, but it is ridiculous to do one phase of a circular road, but to leave out a small section up to what would be an excellent gateway to the new M4 relief road. I have also touched on the metro and the tolls, on which there is cross-party consensus.

Let me briefly mention the Commonwealth games, and a bid that we must champion as a nation. Cardiff is at the core of that, but the games have the opportunity to be a real Welsh national Commonwealth games. When we consider what happened in Glasgow and Scotland, and at the Olympics in London, the kind of economic redevelopment and opportunities that a Commonwealth games presents for Wales cannot be missed. I hope that all parties in the upcoming Assembly election will have in their manifestos a clear commitment to the Commonwealth games. Sports, businesses and Welsh civic society are behind that bid, and we need political vision and leadership from Cardiff Bay. I hope that that will be the only bid within the United Kingdom, and that we can have full support from the UK Government.

I will now touch on sporting success. I asked permission from my hon. Friend the Member for Montgomeryshire to mention one hero, but I will actually mention three. He mentioned Barry Williams. I spent many a Saturday morning more than two decades ago selling match programmes with him, and he is a true champion. We finally have something in common again, because he is up for election in the Peter’s Pie competition for a Welsh rugby hero. Outside of Cardiff North, Welshpool rugby club is the finest rugby club in Wales, and I support his bid wholeheartedly. He is a true champion of Welsh rugby and a great friend.

Lewis Wilkins is a young scientist from my constituency, and he is coming to the House of Commons on Monday as part of the SET for BRITAIN initiative to encourage, support and promote Britain’s early-stage and early-career research scientists. It is a great scheme to get young people into science and research and development so early on. He will be in Portcullis House—I will not give the time and date, but if anyone wants to join me in going to see Lewis Wilkins, they will meet a true champion of science and a true advocate for Cardiff and Cardiff University.

Finally, I want to mention Mrs Beth Baldwin, whose son tragically died of undetected type-1 diabetes. This week she presented a petition to the Assembly on raising awareness of diabetes and on having a simple prick test—perhaps as part of schools’ injection processes—to discover whether children are diabetic. She received the Pride of Britain award, and she is an incredibly brave woman from an incredibly supportive and great Cardiff family that have turned a tragedy into a great campaign. She is a true Welsh hero. I am delighted that she will be coming to No. 10 later this month to present another petition about having a gold standard or minimum for GPs and other health care professionals to routinely test for diabetes.

I hope that I have captured the economic development, excitement and potential of Cardiff and Wales. We should not talk it down too much. We have great opportunities, but a Commonwealth games bid could draw much of that redevelopment together, and I very much want that to happen.

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[Byron Davies (Gower) (Con)]

I am grateful to have the opportunity to speak today. I congratulate the hon. Member for Aberavon (Stephen Kinnock) on securing this debate. I am very conscious of what he said about different Members having different matters to raise, as I have several areas of concern that I would like to discuss. I thought I would do that by taking Members on a very quick geographical tour of the south Wales coastline.

I will start at Cardiff Bay, the seat of the National Assembly for Wales. During my time as an Assembly Member, I fell upon what must be one of the most scandalous episodes in Welsh devolution. One of the main jobs of any Government is to ensure that the public receives value for money, but I am afraid that, in this tale, the public received absolutely no value from the Welsh Government in the Regeneration and Investment Fund for Wales. It is crucial that Governments attach the highest importance to public assets, but, on this occasion, the Welsh Government not only sold land for an incredible amount under its true value, but seemed completely complacent during the process of the sale.

There was huge weakness in the oversight of this project. It is incomprehensible that the “jewel in the crown” site at Lisvane in Cardiff was sold to a preferred purchaser for £l.8 million, when its potential open market value for housing was at least £39 million.

[Craig Williams]

The Welsh Government sold the land in Lisvane in Cardiff North, the most valuable land in Wales with the richest agricultural output, for £15,000 an acre, when it is worth £1.2 million an acre. It is a national scandal. If it had happened in this House, does my hon. Friend think that people would have been held to account and that there would have been resignations?

[Byron Davies]

I am absolutely sure that my hon. Friend is right. I am amazed that the First Minister did not hold anyone to account and sack them. That perhaps speaks volumes.

Indeed, Guernsey-based South Wales Land Developments, the preferred purchaser, which bought 15 sites for £21 million, has made £19 million by selling just a few of them. That casts a very dark shadow over what the Welsh Government were doing during the process. The cavalier approach to the disposal of public assets is quite disturbing. Furthermore, questions must be asked about the valuers, Lambert Smith Hampton, and the fund managers, Amber Infrastructure, which gave the Welsh Government extremely poor advice.

There have been two recent reports on the Regeneration Investment Fund for Wales by the Wales Audit Office and the Welsh Assembly Public Accounts Committee, both of which are damning in respect of all parties involved in the deal. The Wales Audit Office made it clear that effective oversight of the project was difficult because of the governance weaknesses in establishing the RIFW. I know that the Serious Fraud Office has taken a look at the matter, but how deep did it go? I would like it to reassess any new evidence. Anything the Wales Office can do to get to the bottom of the issue would be very welcome.

Moving on further down the coastline, we come to the steelworks at Port Talbot, which plays a huge part in the landscape of south Wales. It is a crucial part not just of the economic fabric of the country, but of the social fabric, and nowhere is that truer than in my constituency of Gower. For decades, the works has provided for people across south Wales. They either work directly at the plant or in the supply chain. Indeed, the community surrounding the steelworks has survived, and indeed thrived, because of the plant. It is a crucial part of the community, and it is vital that we work together to ensure that the industry has a successful and prosperous future.

I have met Ministers and discussed their efforts to help the steel industry win procurement contracts. I am sure that my hon. Friend the Minister will help where he can to stimulate the demand for steel, which will have a positive knock-on effect on opening up opportunities in the supply chain in Wales. I recently visited Rosyth in Scotland to see the new aircraft carriers and was delighted to learn that 94% of the steel used in their construction was British steel.

Continuing our journey around the south Wales coastline, we come to Swansea Bay and the Swansea tidal lagoon. Much political point-scoring has been attempted on this, particularly in the local press, which is rather a shame. We are all at one—we all want to see the scheme developed. It will be a pilot scheme and we should realise that it will cost an awful lot of money to develop. There will be a great deal of public money involved, but it is the first of what could be several schemes. The Government are right to sit down and look at the whole thing in the round. I hope we will see it developed one day, and I know that other politicians in the area share that hope.

I was delighted with the recent announcement from Sir Terry Matthews about the Swansea Bay region. That scheme needs to be pushed along, perhaps through an elected mayor system. I am keen for that debate to be opened in Swansea. We need more infrastructure in Swansea, such as a parkway railway station. At present there is Swansea railway station at one end of the town and the bus station at the other end. For a successful bay region, we should consider that.

I shall move quickly round to the Burry inlet and talk about my constituency and the north end of Gower, the first area of outstanding natural beauty in the UK. I want to speak about the loss of the cockle industry and the loss to the economy of about £23 million over 10 years. That was once an extremely successful industry in Gower that supported the community and was the livelihood of many people. Now there is a 95% mortality of the cockles when they get to one year old. They should live to four or five years old. They are usually harvested when they are 18 months to two years old, but can be harvested up to about five years.

The problem has existed for about 10 years. The cockle beds have never recovered since 2005 when the mortality started. In 2000, this area had the best cockles in Europe and exported to France and Spain, bringing tens of millions of pounds into the region. The cockles are no longer suitable for the high-end market and there is a limit to how many small cockles can be sold. The nucleus of the cockle industry is Penclawdd and there are questions about its viability now that the main processor has been taken over by a Dutch company.

Local cocklers are unable to guarantee a regular supply of cockles to the processors. The season starts in May but is finished by July, whereas it used to be a year-round business. The cocklers believe that the cockles are being killed by discharges of sewage from waste treatment plants on the south Carmarthenshire side and from sewage works at Gowerton. Samples have been taken of dead and rotting cockles and of some live ones and these have been analysed, but we have never seen the results. The cocklers are calling for further scientific research, including a parasitology investigation, which has never been carried out before and requires funding from the Welsh Government. Research has discovered that each cockle in these waters carries up to 29 different types of parasite, many times more than is found in cockle stocks elsewhere in the UK and along the Atlantic seaboard from north Africa up to Scandinavia.

There are 35 licences still in existence in the Burry inlet and 25 of them are still being used. People are paying for licences but cannot make a living. In the 1960s and 1970s, up to 100 people were working there, gathering cockles 52 weeks a year. The licences cost £700 a year but they can no longer be transferred to sons or relatives, who have to go on a waiting list to be given a licence. There are still 120 people on the waiting list in Gower. There is much hope in the community that the industry will recover, and here in this House we must do all we can to support the efforts to help the industry.

When I was an Assembly Member I raised the matter many times in the Chamber. Since I have been a Member of this House I have written to the Welsh Government to try to get them to fund an inquiry into why the cockles are dying. To date I have had no success. We need to find the cause of this problem and ensure that the cocklers whose livelihood has been greatly affected are treated with the respect and dignity that they deserve to get this great product and industry thriving again. Anything that the Wales Office can do to encourage the Welsh Government into action would be very welcome.