Oral Answers to Questions

David Jones Excerpts

Wednesday 8th January 2014 Commons Chamber

[Mrs Madeleine Moon (Bridgend) (Lab)]

1. If he will estimate the cumulative real-terms change to the Welsh block grant over the present Parliament.

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

On what is a sad morning for the House, I am sure that colleagues on both sides would also wish me to mention the passing in December of the right hon. Lord Roberts of Conwy, who served the Welsh Office with such distinction for so many years. He was a doughty champion for Wales and the Welsh language, and I am sure that many Members on both sides will regret his passing.

The protections placed on health and education have insulated the Welsh Government’s resource budget from the extent of reductions faced by many UK Departments. In addition, the Welsh Government’s capital budget will increase in real terms by 8.4% next year and 2.4% the year after.

[Mrs Moon]

Does the Secretary of State not recognise that the Welsh Government’s budget has been cut by 10% since 2010—a cut of £1.6 billion? Their capital budget to date has been cut by a third, which has impacted horrendously on front-line services. In my Bridgend constituency alone, that has meant £30 million-worth of cuts in front-line services. Does the Secretary of State not recognise the damage of these cuts to the people of Wales?

[Mr Jones]

All parts of the United Kingdom are having to bear their part in repairing the economic damage that was sustained as a result of the downturn in 2008. However, I am sure the hon. Lady would recognise that since 2010 the United Kingdom Government have provided an additional £737 million to the Welsh Government, and it is up to the Welsh Government to live within their means.

[David T. C. Davies (Monmouth) (Con)]

Given that the UK Government have given extra money in cash terms to the Welsh Assembly in the form of its block grant, does the Secretary of State find it as extraordinary as I do that the Welsh Assembly has imposed drastic cuts on local authorities across Wales that are bound to lead to increases in council taxes and reductions in public services?

[Mr Jones]

That is ultimately a matter for the Welsh Government, but it is noteworthy that, whereas council taxpayers in England are benefiting from a council tax freeze, that is not happening in Wales. Perhaps that is something the Welsh Government should be attending to.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

May I first associate myself fully with the words of tribute to the late, greatly respected right hon. Member for Wythenshawe and Sale East (Paul Goggins), and to the late Lord Roberts of Conwy?

I am sure that the Secretary of State will agree that reform of the Barnett formula is still an issue about which we are all very concerned. We in Plaid Cymru have campaigned about it for more than 25 years. It is interesting that the Labour party is now in favour of reforming Barnett, which it did nothing about for 13 years. In fact, when it was in government, it denied the existence of the problem. Does the right hon. Gentleman have any views on that issue?

[Mr Jones]

It is generally recognised that the Barnett formula does not have an indefinite duration. However, it is the priority of this Government to ensure that the public finances are stabilised, and that is what we intend to do.

[Mr Llwyd]

Which does the right hon. Gentleman think is worse—the self-serving preconditions set by the Labour party to block further devolution, or the failure of his Government to propose the full tax-varying powers contained in the cross-party Silk commission recommendations?

[Mr Jones]

I would always be the first to condemn the self-serving nature of the Labour party.

[Mr Mark Williams (Ceredigion) (LD)]

Barnett consequentials and, indeed, funding from the European Union have been key components of spending in Wales for many years. What representations has the Secretary of State made about Barnett consequentials and European funding to address the devastation that has occurred in recent days along the Welsh coast, not least in Ceredigion, but also in the constituencies of many other hon. Members?

[Mr Jones]

I have had many conversations with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs. Clearly, Aberystwyth has suffered extreme damage as a consequence of the storms of the past few days, and I assure my hon. Friend that, if any additional funding is provided, Barnett consequentials will follow in the usual manner.

[Ian Lucas (Wrexham) (Lab)]

2. What assessment he has made of job prospects in the renewables sector in Wales.

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[Martin Caton (Gower) (Lab)]

4. If he will publish an impact assessment of the effect of the draft Wales Bill on cross-border areas.

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

The Government published a summary impact assessment with the draft Wales Bill, which examines the effects of the Bill’s provisions on cross-border areas. We intend to introduce the Bill in the fourth Session, subject to agreement of the fourth Session programme, and a full impact assessment will accompany the Bill on introduction.

[Martin Caton]

I thank the Secretary of State for that answer, but the draft Bill provides for a lock-step approach to varying income tax bands, against the wishes of all political parties in the Assembly and against the advice of the Silk commission. The reason given is concern about overall progressivity in the UK tax system. Will the Secretary of State elaborate on what he means by progressivity and say why he is adopting that approach?

[Mr Jones]

As the Government have made clear, they believe that the progressivity of the UK tax system should remain at Westminster. That is why those provisions have been inserted in the draft Bill.

[Glyn Davies (Montgomeryshire) (Con)]

15. One damaging consequence of devolution has been the abandonment of investment in cross-border road improvement in mid-Wales because the Department for Transport—quite reasonably—sees no economic benefit to England in improving access to mid-Wales. In the response to the Silk commission report, will my right hon. Friend rectify that damaging consequence of devolution for mid-Wales?

[Mr Jones]

My hon. Friend is quite right, and cross-border road routes are one unfortunate consequence of devolution, in that no overarching arrangement is in place. I have specifically asked the Silk commission to consider that issue, and I hope that it will address it in its report.

[Nia Griffith (Llanelli) (Lab)]

I am sure that the Secretary of State will agree that certainty on taxation policy is key to boosting economic confidence in Wales. Although he has told us of his vision to use the Wales Bill for a 1p cut to all income tax bands in Wales, the leader of the Conservative party in Wales has said that he would cut only the top band of tax. Will the Secretary of State clear up that complete muddle about his Government’s position on taxation in Wales?

[Mr Jones]

We have made it absolutely clear that we believe a competitive Welsh economy would depend to a large extent on a competitive rate of tax. However, I must remind the hon. Lady that devolution of income tax is a matter for the Welsh Government, in that it would be the Welsh Government who would have to put forward a referendum to the Welsh Assembly.

[Ann Clwyd (Cynon Valley) (Lab)]

5. What recent assessment he has made of the potential effect of the roll-out of universal credit on people in Wales.

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

This Government are investing more in transport infrastructure in Wales than any other in the last century, and Wales is set to benefit directly and indirectly from almost £2 billion of investment. I will be meeting my right hon. Friend the Secretary of State for Transport next week to see how we can take this investment further.

[Stephen Mosley]

Like me, the Secretary of State is a regular user of the Holyhead branch of the west coast main line. The Department for Transport is setting up a taskforce to look at electrification of the line between Crewe and Chester. Does he agree that the taskforce should look beyond Chester and consider electrifying the north Wales main line?

[Mr Jones]

I agree entirely with my hon. Friend. The proposed hub for High Speed 2 at Crewe would considerably strengthen the case for electrification of the railway line beyond Crewe and, I would hope, as far as Holyhead.

[Kevin Brennan (Cardiff West) (Lab)]

One of the most important pieces of transport infrastructure for Wales is the Severn bridge. After decades, tolls have now gone up again: £6.40 for motorists, and double and treble that for vans and lorries. Is it not time to recognise, after all these decades, that this tax on the south Wales economy is a toll too far?

[Mr Jones]

The hon. Gentleman will know that the franchise of Severn crossings will continue until 2017-18. After that, the maintenance of the bridge will have to be considered, but I know that the Department for Transport is keenly aware of the issues he raises.

[Karen Lumley (Redditch) (Con)]

14. Good transport links are essential to provide opportunities for investment into Wales. Will my right hon. Friend update the House on the discussions he has had with the Welsh Assembly Government on updating road and rail links into north Wales, especially upgrading the A55?

[Mr Jones]

I have regular discussions with both the Welsh Government and my right hon. Friend the Secretary of State for Transport on this issue. A business case is already being worked up, I hope, for electrification of the north Wales coast line, and I have already referred to the issue of roads.

[Mark Tami (Alyn and Deeside) (Lab)]

When it comes to the Wrexham-Bidston line, the Secretary of State is all talk and no action. When can we expect some action?

[Mr Jones]

It is rather rich of the hon. Gentleman to say that. In 13 years, his Government did absolutely nothing about that line. He should be aware that we already have a taskforce looking at this issue, and I hope the business case will be developed shortly.

[Paul Flynn (Newport West) (Lab)]

8. What discussions he has had with the First Minister on increasing tourism opportunities in Newport in the light of the NATO summit in Celtic Manor in 2014.

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

Hosting the NATO summit in Newport later this year allows us to showcase Wales on a global stage, and I—and the First Minister, I am sure—will do everything possible to ensure that Wales capitalises on the tourism opportunities it should bring.

[Paul Flynn]

The delegates will be guests in what is probably the best hotel in Britain, the Celtic Manor. Will they have the chance to visit the other major attractions of Newport—the Roman remains at Caerleon, the magnificent transporter bridge and the splendid Tredegar house—so that they can have a rich and unforgettable experience in Newport?

[Mr Jones]

I agree entirely with the hon. Gentleman that Newport—and, indeed, the whole of south-east Wales—has a huge amount to offer. As I have said, I believe that the NATO summit will do a massive amount to showcase that part of Wales to the whole world.

The Prime Minister was asked—