Government Policies (Wales)

David Hanson Excerpts

Wednesday 26th November 2014 Commons Chamber

[Stephen Crabb]

I will give way a bit later.

Let us remind ourselves that when we formed this coalition Government back in 2010, the coffers were empty, and the previous Chief Secretary to the Treasury was joking that the money had all gone. Wales was in an employment slump, and the Labour party was far too relaxed about the tragedy that 200,000 people in Wales had never worked a day in their lives. What a tragedy that was for Welsh communities and for the individuals who had never worked a day in their lives. This Government are not content to be relaxed about that and we are not shying away from the responsibility for trying to put that right. That is why hard-working people are at the very heart of our long-term economic plan. It is why we have cut income tax for more than a million people in Wales so that people can keep more of what they earn. It is why we have cut national insurance contributions to allow businesses to grow so that they can keep and take on more staff, and why we have introduced the Work programme to provide the best possible support for long-term unemployed people, so that they do not get left behind as they did under the last Labour Government.

We have cancelled Labour’s planned fuel duty increases so that petrol will be 20p cheaper than it would have been under the last Government, saving money for the owners of 1.7 million vehicles in Wales, and we are also taking action to help the relatively high proportion of pensioners we have in Wales. Last year, we increased pensions above inflation by £2.70 a week, on top of the record cash rise of £5.30 in the state pension the year before. In April this year, we increased it again by £2.95, in line with our triple lock. This was the biggest cash increase since the state pension was first introduced. That should be compared with the tiny 75p increase offered by Labour when they were in government. It is not hard to tell which party is on the side of pensioners in Wales.

[Mr David Hanson (Delyn) (Lab)]

This debate is about the economy, but it should also be about values. Will the Secretary of State explain to us what values drive him to cut the taxes for the richest people in Wales while putting up VAT, which is paid by everybody, no matter what their income? What values drive him to make benefit cuts such as we have seen with the bedroom tax and to hit the poorest people hardest? As I say, this debate is about values.

[Stephen Crabb]

I agree with the right hon. Gentleman that it is about values. It is about our values as a Government who are not content to see 200,000 people in Wales who have never worked a day in their lives. That is why I celebrate the fact that there are 38,000 more people in work in Wales since the election and 47,000 fewer households where nobody works. What does that mean in real terms? It means more kids in Wales growing up seeing a mum or dad going out to work. Opposition Members, who go under the name of “Labour”, should be championing that.

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[Stephen Crabb]

Business is not being scared off: quite the opposite. We recognise that the single European market is an enormous strategic prize for the UK, but in fact a greater proportion of Welsh exports go to countries outside the EU than to those inside it, and our trade with countries outside the EU is growing at a faster rate, so the hon. Gentleman should not be so insular and should look at the worldwide dimension, rather than just the European one.

[Mr Hanson]

When the Secretary of State is travelling to north Wales, will he stop off in Chester or go to Vauxhall in Ellesmere Port and ask my constituents there how much they value having a voice in this House to represent their interests on matters that are dealt with by the English Government?

[Stephen Crabb]

I will take the opportunity to have exactly those conversations, and I expect that all those people will tell me resoundingly just how important the right hon. Gentleman’s voice is in representing their interests.

Oral Answers to Questions

David Hanson Excerpts

Wednesday 22nd October 2014 Commons Chamber

[Stephen Crabb]

I very much agree with my hon. Friend’s comments on fiscal devolution. I believe that this represents the next step for devolution in Wales. Devolving a portion of tax responsibility to the Welsh Government and the Welsh Assembly will create dynamic opportunities for the people of Wales and the Welsh economy, and I believe that the Welsh Government should seize those opportunities as soon as possible.

[Mr David Hanson (Delyn) (Lab)]

When the Welsh Government raise money and spend it, they will potentially be spending some of it on hospital services in Chester, Clatterbridge hospital or the Christie hospital, which are local to me. What does the Secretary of State think about the fact that under his proposals I, as a Welsh Member of Parliament, will have no say about services that affect my constituents?

[Stephen Crabb]

The right hon. Gentleman is referring to proposals for English votes on English laws. There are important cross-party issues, but they also work in reverse. For example, constituents on this side of the border do not have a say in the Welsh Assembly about policies that affect services they use. He has to recognise that we currently have a hopelessly lop-sided devolution arrangement, as he and I, as Welsh MPs, and also Scottish MPs, have a say on laws affecting schools and hospitals in England, but English MPs have no equivalent say on services in Scotland and Wales. That must be addressed.

Commission on Devolution in Wales

David Hanson Excerpts

Monday 18th November 2013 Commons Chamber

[Mr Jones]

I agree entirely with my hon. Friend. I repeat that the difference between Labour and the Conservatives is that we are ambitious for Wales, whereas Labour seems to think that Wales should be a supplicant nation for ever more. The best way to increase the economic success of Wales is to ensure that it has a competitive edge, and I believe, as does my hon. Friend, that that purpose will be best served by reducing the rate of tax.

[Mr David Hanson (Delyn) (Lab)]

The Secretary of State will know that many thousands of my constituents work in the city of Chester, in Eddisbury, in Manchester, in Liverpool and in Ellesmere Port. Similarly, thousands of people from all those constituencies work in my constituency in Flintshire. Has he thought through properly how the income tax-varying power might work in practice? What consultation on this matter does he intend to undertake with businesses on both sides of the border?

[Mr Jones]

As the right hon. Gentleman knows, 12 months’ thought has been put into this exercise. Over the years, Wales has grown progressively poorer compared with the rest of the United Kingdom, and I hope that he will welcome and support our giving it a competitive edge through a beneficial rate of income tax. Also, he knows that it is easy to move from one side of the border to the other. That is another reason we had to think carefully before doing anything that might unbalance the economy of that important part of the world.

Oral Answers to Questions

David Hanson Excerpts

Wednesday 27th June 2012 Commons Chamber

[Mr Jones]

As a Welshman, I feel rather chary about intruding on English matters such as an English national anthem. As a Welshman, I sing “God Save the Queen” just as enthusiastically and just as badly as I sing “Hen Wlad Fy Nhadau”.

[Mr David Hanson (Delyn) (Lab)]

Does the Minister agree that as well as Welsh Members of Parliament we are British Members of Parliament and that as Welsh Members of Parliament we should be able to speak and vote on matters that affect our constituents, even those that affect our constituents from over the border? In my case, that includes hospitals, business, transport, defence and other matters.

[Mr Jones]

The right hon. Gentleman appears to be referring to the West Lothian question, on which, as he knows, there is a commission. It would be refreshing if Labour Members wished to debate such matters in Grand Committee rather than running scared.

Oral Answers to Questions

David Hanson Excerpts

Wednesday 25th April 2012 Commons Chamber

[Mr Jones]

As I have said, the Government recognise the impact of the rising cost of fuel on people and businesses in Wales. However, it should be remembered that the duty increase that was expected to take place in January this year has been deferred to August and we have cancelled the inflation increase planned for August, which means that there will be just one inflation-only increase this year.

[Mr David Hanson (Delyn) (Lab)]

Can the Minister tell us the price of a litre of fuel this time last year and today, and is the rise anything to do with the VAT increase that he voted for?

[Mr Jones]

The price of a litre of fuel in my constituency—I assume the right hon. Gentleman means petrol—is approximately £1.40. I will be happy to write to him with the figure for last year.

Oral Answers to Questions

David Hanson Excerpts

Wednesday 29th February 2012 Commons Chamber

[Mrs Gillan]

I have to say that I will take no lessons from the right hon. Gentleman, particularly given that, since we came into government, we are investing £1 billion in electrifying the great western main line and putting £60 million into broadband. It is important that both Governments work together. If the First Minister goes on a business delegation and brings back business to Wales I will be delighted, but I think that we should work together—and, for the right hon. Gentleman’s information, we will be sticking to plan A.

[Mr David Hanson (Delyn) (Lab)]

2. What assessment she has made of the effect of changes to feed-in tariffs on the Welsh economy.

[The Parliamentary Under-Secretary of State for Wales (Mr David Jones)]

We are continuing to consult and engage with the solar industry on changes to the feed-in tariff scheme and our assessments are ongoing. There are several key innovative businesses in the solar industry in Wales and we are committed to ensuring that they have a prosperous future.

[Mr Hanson]

According to the Department of Energy and Climate Change’s own figures, the industry is likely to shrink by a third, which means 5,000 jobs, in 2012 as a direct result of Government policies that the Under-Secretary has supported. How many of those jobs will be lost in Wales? Will he put his hand up and say that it has been a hash from start to finish?

[Mr Jones]

I would certainly say that it was a hash at its inception, because the scheme that the Government of which the right hon. Gentleman was a member put in place was poorly designed and lacked the flexibility to respond to changes in the cost of installing PV and in the price of electricity. The measures that the Government are now putting in place in response to the recent consultation will provide consumers with a proper rate of return, of the sort that was originally envisaged.

Oral Answers to Questions

David Hanson Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Mrs Gillan]

I thank the hon. Gentleman for what I think was a question. There can be absolutely no doubt about whether I always fight Wales’s corner in Cabinet. I thought he would at least be encouraged that the Bank of England has forecast that inflation should fall rapidly over 2012. In the mean time, the Government are taking very strong action to help consumers with high costs. We all want to help households and the Government go to the last degree to do so.

[Mr David Hanson (Delyn) (Lab)]

5. When she next expects to meet representatives of the solar industry in Wales to discuss the feed-in tariff consultation.

[The Parliamentary Under-Secretary of State for Wales (Mr David Jones)]

My right hon. Friend the Secretary of State is meeting representatives from the Welsh solar industry next week along with the shadow Minister for Wales to discuss concerns that businesses have about the feed-in tariff review.

[Mr Hanson]

The Minister will know that confidence in the solar industry has been considerably damaged by the decision on feed-in tariffs. Will he and the Secretary of State now stand up for Wales and ask the Department of Energy and Climate Change to defer the decision date for implementation of 12 December so that the consultation, which finishes on 23 December, can at least have the views of the solar industry he is meeting next week?

[Mr Jones]

I understand the right hon. Gentleman’s constituency interest in this regard. As he rightly says, there is a consultation going on, which ends on 23 December. Although the reference date is indeed 12 December, that is subject to consultation.

Commission on Devolution in Wales

David Hanson Excerpts

Thursday 3rd November 2011 Commons Chamber

[Mrs Gillan]

I do not know what tortuous mental processes the hon. Gentleman goes through, but I assure him that I have no ambitions in that direction whatsoever. He has been spending too much time with the right hon. Member for Neath, who sees conspiracy theories in every quarter. This is a genuine open consultation, and the hon. Gentleman will hear as I develop my speech that the Silk commission is giving us an opportunity to reflect and try to shape the architecture of devolution in Wales.

The commission provides a coherent opportunity to review the working of devolution in Wales and the financial accountability of the devolved institution. Assembly Members are accountable to the people of Wales at the ballot box. They are judged on their record, on the decisions they make and on the outcomes of their policy decisions. We all know that government is a difficult business that involves administering complex issues and looking after the totality of the system for the people of Wales. We therefore need the commission to examine how the devolution system is working, and whether changes might improve its performance.

[Mr David Hanson (Delyn) (Lab)]

Will the Secretary of State ensure that the commission looks carefully at the impact of the border? My constituency, and that of many others, is close to the English border. People who live in my constituency work in England, and people who live in England work in my constituency. The differing rates of VAT, corporation tax and quarrying tax, and of expenditure, are important on both sides of the border. I do not want the commission to look specifically at Welsh issues without taking representations from the English side of the border.

[Mrs Gillan]

I could not agree more with the right hon. Gentleman. I refer him to the commission’s specifications, in which we state that it should

“consider and make recommendations on how best to resolve the legal and practical implementation issues from devolving a package of fiscal powers”.

I think that says it all: we are keeping an open mind. The right hon. Gentleman knows that since becoming shadow Secretary of State, I have been concerned about the implications of the permeability of the border. The commission offers us the chance to look not only at recommendations that might be made but at the practical difficulties.

[Mr Hanson]

Does the Secretary of State agree that one of the factors that the commission should take into account is that Welsh Members of Parliament such as me, whose constituents use hospitals in England and work in English businesses, should have the right to vote on those matters, too?

[Mrs Gillan]

We proposed to hold this debate before the first meeting of the commission to enable Paul Silk and the other commissioners to hear Members’ views. The right hon. Gentleman’s point is well made, and I know that when the commissioners read Hansard they will take it on board. I do not want to tie the commissioners’ hands; they must decide how they will work.

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[Mr Hain]

I am glad that the Secretary of State had that conversation, but all I can do is report to the House—and it is important that she hears it too—what the European chief of Tata Steel told a group of Members who met him last week, which is as I have described it. He was not concerned about any of the issues to do with the Silk commission, as we are in this debate. It is important for the Government to recognise that they should not ignore the economic realities and flirt with tax devolution—by, for example, devolving corporation tax—when that is not even on Tata’s agenda.

As for investment, Tata Steel’s European chief pointed out that the new and welcome investment at Port Talbot might not have been made had he been aware of the climate now affecting the company as a result of the Government’s incompetence, which is damaging steel production. Instead of addressing that, the Government are, through the Silk commission, considering matters such as devolving corporation tax.

A review undertaken in 2007 by Sir David Varney for the Treasury pointed to academic research that suggested that only about half the impact of a corporation tax cut was usually recovered through increased growth and investment. The question is: would lowering corporation tax in Wales to, say, the Irish level—if the Silk commission is to consider that—generate enough extra tax, including income tax, to compensate for the £400 million or so that is likely to be lopped off the Welsh block grant to comply with European Union state aid rules and compensate the Treasury for lost revenue?

The Secretary of State for Northern Ireland is an enthusiast for devolving corporation tax. Nevertheless, he told me that he thought it would take at least 15 years for the Northern Ireland economy to generate the growth and jobs that he anticipated from halving corporation tax, as is planned there, that would be sufficient to produce an equivalent income to compensate for the loss to the Northern Ireland block grant. What Welsh Government would choose to lose around £400 million now and each year for the best part of two decades in the hope—and only the hope—that extra inward investment and business activity would eventually make up the shortfall?

[Mr Hanson]

To return to the cross-border issue, in the event of the Silk commission determining that corporation tax could be varied, would not the north-west of England then make the same demands on the Treasury for varying powers for its region? The point that my right hon. Friend should emphasise to the Secretary of State is that the Silk commission should look at the consequences of those variations for both Wales and the English side of the border.

[Mr Hain]

My right hon. Friend makes a powerful point that I hope the Silk commission will take account of.

It is simply no answer to offload tax-raising powers to Wales that will at best have a marginal impact and at worst—because of the compensating cuts in the Welsh budget—worsen the prospects for jobs, business and infrastructure investment in Wales. Meanwhile, in the real world, unemployment in Wales is rocketing. Six people are chasing every vacancy—many more in some areas of Wales—and the Government have no plan to deal with the problem. Unless they change course, it will get worse and worse.

Oral Answers to Questions

David Hanson Excerpts

Wednesday 16th March 2011 Commons Chamber

[Mr Jones]

I agree that it is a pressing issue in large parts of rural Wales, such as my hon. Friend’s constituency. I can tell the House that I have written to the Chief Secretary to the Treasury to press for the extension of the pilot to rural areas in Wales.

[Mr David Hanson (Delyn) (Lab)]

In April last year the price of a litre of petrol in Flintshire was 116p. Can the Minister tell me what it is today and how much of the increase is due to the VAT that he imposed?

St David’s Day

David Hanson Excerpts

Wednesday 2nd March 2011 Westminster Hall

[Mr Mark Williams]

My hon. Friend pre-empts my next line. Even with those powers—assuming we are successful in the referendum—the Welsh Assembly Government would be unable to designate St David’s day as a public holiday without the approval of the Westminster Government. A positive response by the Minister today could form part of a memorable Welsh treble, even if the triple crown will, sadly, remain elusive this year.

St David, or Dewi Sant, was renowned for his inspirational qualities as a monk, abbot and bishop. He is renowned for his achievements in spreading Christianity throughout western Britain and among the pagan Celtic tribes that resided there. He was the archbishop of Wales, and his fundamental importance to the establishment of religion in Wales cannot be underestimated. Colleagues in the Chamber will know that and they will understand that those traditions are as important in their constituencies as they are in mine.

St David had particular links with my constituency. He was the grandson of King Ceredig, the founder of Ceredigion. Dewi’s mother, Non—herself reputedly related to King Arthur—was born in the village of Llanon in my constituency and, indeed, gives her name to that village, whose name literally means “parish of Non”. St David was educated at the Henfynyw monastery near the newer village of Ffos-y-ffin, in the middle of Ceredigion.

St David’s day is already an extremely popular occasion for those inside and outside Wales. Yesterday, we had a fantastic service a few paces from this Chamber, and it was good to see the Speaker, the Secretary of State and all the political parties there honouring St David. It was especially good to see the children of the London Welsh school, who, through their dress and their singing for us, showed how vibrant our traditions are. Back home, there were eisteddfodau, a gymanfa ganu and a range of celebratory dinners. There was the legendary cawl. Even Google paid its tribute to Wales’s patron saint. However, we could and should make more of the opportunities with which St David’s day presents us.

I should congratulate the hon. Member for Stratford-on-Avon (Nadhim Zahawi), who introduced a ten-minute rule Bill on designating St George’s day as a public holiday before Christmas. In the debate on his Bill, he mentioned the case for a St. David’s day public day. I am not pushing the case for a St George’s day public holiday, although I am sure there is much support for that in England. My key concern is that a St David’s day public holiday should be a matter for the Welsh Assembly. It is a matter for Wales, it affects Wales uniquely and the decision should rest with the National Assembly.

[Mr David Hanson (Delyn) (Lab)]

Has the hon. Gentleman given any thought to border constituencies such as mine? Many of my constituents live in Flintshire, but work for the police, the local council and other agencies in Chester. Many people on the English side of the border, where there is a similar crossover, work in my constituency at the Airbus plant and other plants. What consideration has the hon. Gentleman given to that issue? It should be considered by this Parliament and, potentially, the Assembly.

[Mr Mark Williams]

I understand that point. Although the balance would still be in favour of the National Assembly making the decision, I well understand that transition and flow of people as someone who used to teach in the borders in Powys. Such things mean that people across the border in England are very interested in St David’s day and want to participate in the activities that I mentioned.

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[Mr David Jones]

My hon. Friend makes a fair point. As I said earlier, St David’s day itself is a magical day in Wales, and the eisteddfods held on St David’s day are equally magical. I, for one, would be rather sad to see the magic of the day lost. However, as my hon. Friend said, it is a matter upon which Parliament will shortly be able to vote, as my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi) is promoting a private Member’s Bill that would create bank holidays on St David’s day and St George’s day. That Bill received its First Reading on 15 December and will have its Second Reading on 13 May. I have no doubt that my hon. Friend the Member for Ceredigion will participate in that debate. The Government will make their position on that Bill known in due course.

I return to more hard-headed matters and the unfortunate subject of cost. Bank holidays have an economic impact. A bank holiday across the country would cost in the region of £3 billion in lost wages, on the basis that everyone would be paid for an extra day’s work. Pro rata, the cost in Wales would be £138 million. Of course, we cannot take Wales in isolation because, as the right hon. Member for Delyn (Mr Hanson) pointed out, it will have an impact across the border. That is another factor that will have to be taken into consideration. Frankly, the right hon. Gentleman was entirely right to say that having a bank holiday on St David’s day should be a matter for the House.

[Mr Hanson]

The biggest employer in my area is Airbus; it employs about 7,000 people, and I expect that half of them live in England. That would create a dilemma. It could be overcome, but it would still need to be considered—and not only by the Welsh Assembly.

[Mr David Jones]

The right hon. Gentleman is entirely right. For that reason if for no other, it is a matter that properly resides with Parliament.

The hon. Member for Ceredigion made mention of tourism. The Government have received a number of calls from the tourism industry to consider spreading the United Kingdom’s bank holidays across the year. Evidence shows that when the Easter holiday falls close to the May day bank holiday, as it does this year, it does not promote the even spread of tourism across the calendar. This year is somewhat unusual because we also have a special bank holiday for the royal wedding. The Government have given those representations careful consideration, and I am sure that the House will be interested to hear that the Department for Culture, Media and Sport is working on a new UK-wide tourism strategy, which is likely to include a proposal to consult on moving the May day bank holiday to another point in the year.

I asked the hon. Gentleman whether it was his vision to have an additional bank holiday or whether an existing bank holiday should be moved. If an existing bank holiday was to be moved, we suggest that it would be appropriate to move the early May bank holiday. That would not create a new bank holiday, but there will be consultation on whether it should be moved—for example, to St David’s day. The hon. Gentleman mentioned that there had been representations from groups within the Welsh Assembly that St David’s day should be a bank holiday. That would be an excellent opportunity for those groups and others such as the Welsh Tourism Alliance to make representations to the Department for Culture, Media and Sport.