Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

David Jones Excerpts
Wednesday 23rd June 2010

(13 years, 10 months ago)

Commons Chamber
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Jonathan Evans Portrait Jonathan Evans (Cardiff North) (Con)
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1. What recent discussions she has had with ministerial colleagues on encouraging the relocation of businesses to Wales.

David Jones Portrait The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
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Before I answer my hon. Friend, I am sure that the House will want to join my right hon. Friend and me in expressing condolences to the family of the right hon. Lord Walker of Worcester, whose death at the age of 78 was announced earlier this morning. A distinguished Member of the other place and a former Secretary of State for Wales, he was a good friend to the Welsh people.

My right hon. Friend the Secretary of State and I are committed to attracting more inward investment to Wales, as we believe it will be a key driver for future economic growth.

Jonathan Evans Portrait Jonathan Evans
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First, may I associate myself with what my hon. Friend said about Lord Walker? May I also take the opportunity to welcome my hon. Friend the Under-Secretary and my right hon. Friend the Secretary of State to their new responsibilities and to wish them well in the challenges that lie ahead?

Given the recognition even by the First Minister both in an interview on “The Andrew Marr Show” and during the Welsh Labour conference this year that there are not enough private sector jobs in Wales, does my hon. Friend agree that success depends on driving up private sector jobs in the Principality in the future?

David Jones Portrait Mr Jones
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Yes, my hon. Friend is entirely right. The private sector is the key to future growth in Wales, which is why yesterday’s Budget announced a major package of corporation tax reform that is aimed at making Britain—and, of course, Wales—one of the most competitive parts of the G20. In particular, the exemption of up to £5,000 of employer national insurance contributions for each of the first 10 employees, which applies outside London and the south-east, will be of benefit to Wales.

Elfyn Llwyd Portrait Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
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May I associate myself with the condolences expressed to the family of the late Lord Walker and also congratulate the right hon. Lady and the hon. Gentleman on their appointment to their posts?

Yesterday, there was a recognition by the Government of the need to grow economies outside the south-east of England. We have argued long and hard about the overheating of the south-east and its cost to the north of England and Wales. Will the Minister consider the idea of either regionalising corporation tax according to gross value added or devolving it altogether to the Welsh Assembly so that the needs of business can be met and real support provided for it?

David Jones Portrait Mr Jones
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I am glad to hear that the hon. Gentleman welcomes the announcements in yesterday’s Budget. The announcement of the exemption of up to £5,000 of national insurance contributions for new employment outside London and the south-east will certainly be of benefit; to that extent, it is a major departure, which I am sure that the entire House will welcome.

Elfyn Llwyd Portrait Mr Llwyd
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May I press the hon. Gentleman on the question of corporation tax? Does he have any problem with that? At the end of the day, it is his Government’s policy in the north of Ireland, so why does it not apply to Wales?

David Jones Portrait Mr Jones
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I am sure that the hon. Gentleman will welcome yesterday’s announcements. There is no plan to regionalise corporation tax further in the United Kingdom, but I am sure that yesterday’s announcements will offer a major boost to the Welsh economy.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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2. What recent discussions she has had with the First Minister on the proposed referendum on the law-making powers of the National Assembly for Wales.

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David Jones Portrait The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
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My right hon. Friend the Secretary of State has discussed the issue of funding for Wales with the Chief Secretary to the Treasury, and also met the hon. Gentleman last week to discuss the subject. I hope that the hon. Gentleman found that helpful.

Roger Williams Portrait Roger Williams
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I welcome the Minister and the Secretary of State to their posts.

Notwithstanding the review that has been promised after a successful referendum, there is clear and understandable concern about the difficulties that will be faced in Wales because of the necessary measures being taken to reduce the deficit. Will the Minister commit himself to a dialogue with Gerry Holtham and with Treasury colleagues to ensure that Wales is given a fair deal, given its historic levels of underfunding and the severe pressure put on the Welsh Assembly Government?

David Jones Portrait Mr Jones
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The Government are committed to ensuring that Wales is properly funded, but it is clearly right for the Treasury’s energies to be concentrated on tackling the deficit left behind by the Labour party. We will certainly give careful consideration to the Holtham commission’s final report, which is to be published this summer. My right hon. Friend the Secretary of State has already met Mr Holtham, and intends to have further meetings with him.

Lord Hain Portrait Mr Peter Hain (Neath) (Lab)
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Do the Minister and the Secretary of State recall that last November the Treasury was persuaded to accept an historic reform ensuring that Wales was not disadvantaged under the Barnett formula? Why are they not ensuring that the agreement to protect the Welsh Budget is implemented? On Barnett, the Chancellor promised on 12 February 2010 to

“move on it pretty quickly, as soon as a new Government is elected.”

How on earth can the Secretary of State and the Minister have allowed that pledge to be dumped in the long grass? Instead of capitulating immediately to savage cuts, why do they not stand up and fight for Wales as their Labour predecessors did?

David Jones Portrait Mr Jones
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Having read the so-called pledge that the right hon. Gentleman received from the Treasury, I think it fair to say that it was almost meaningless. As he knows, the Holtham commission is due to report substantively next month. My right hon. Friend and I intend to have further discussions with Mr Holtham, and it would be wrong to pre-empt his decision.

Greg Hands Portrait Greg Hands (Chelsea and Fulham) (Con)
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4. What discussions she has had with the Secretary of State for Defence on marking Armed Forces day in Wales in 2010.

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David Hanson Portrait Mr David Hanson (Delyn) (Lab)
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7. When she next expects to discuss with ministerial colleagues the situation of manufacturing industry in Wales.

David Jones Portrait The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
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My right hon. Friend the Secretary of State has discussed various aspects of the Welsh economy, including manufacturing, with ministerial colleagues and will continue to do so in the coming weeks and months.

David Hanson Portrait Mr Hanson
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How many representations has the Minister made regarding the future jobs fund and the damaging loss of more than 600 jobs in north Wales? If he made representations, why were they so ineffective, and if he did not make representations, what is his purpose in life?

David Jones Portrait Mr Jones
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The future jobs fund is an uneconomic way of funding new employment, and it does not provide real jobs. Yesterday’s Budget statement provided firm foundations for real jobs in Wales, and that is the way that Wales will go.

Nick Smith Portrait Nick Smith (Blaenau Gwent) (Lab)
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Would not jobs and manufacturing in Wales be helped by a decent employment initiative? The future jobs fund has provided 500 jobs in Blaenau Gwent in recent years. It has had a terrific impact in an area with high unemployment of nearly 12%. Will the Minister or the Secretary of State please visit Blaenau Gwent? I invite them to come and find out about employment in my borough.

David Jones Portrait Mr Jones
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I refer the hon. Gentleman to my answer to the right hon. Member for Delyn (Mr Hanson), but, yes, I would be delighted to visit Blaenau Gwent. I look forward to receiving his formal invitation.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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9. What recent discussions she has had with the Secretary of State for Defence on the proposed defence technical college at St Athan.

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Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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10. What her most recent estimate is of the level of public expenditure per capita in Wales in 2010-11.

David Jones Portrait The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
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The latest public expenditure statistical analysis published by the Treasury in April included data up to 2008-09, in which identifiable public expenditure per head on services for Wales was £9,209 while the UK average was £8,206.

Peter Bone Portrait Mr Bone
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Would the Minister agree that it is the quality of public money spent that matters, not the amount? Will the Government concentrate on quality rather than quantity?

David Jones Portrait Mr Jones
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My hon. Friend is entirely right. The former Government seemed to regard it as a matter of success that they spent money that the country could not afford. We recognise the need for Wales to be properly funded, but yesterday’s Budget statement provides a firm foundation for good-quality jobs in Wales.

Kevin Brennan Portrait Kevin Brennan (Cardiff West) (Lab)
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May I join the Secretary of State in paying tribute to Lord Walker? I do so genuinely, but I am led to reflect on the fact that, since 1987, the Conservative party has not had a shadow Secretary of State or Secretary of State who represented a Welsh seat.

On the issue of law-making powers for the Welsh Assembly: after the boundary changes, what is the Secretary of State’s opinion of how many Members the Assembly ought to have?

David Jones Portrait Mr Jones
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Bizarrely, the question appears to be addressed to my right hon. Friend, whereas in fact I am answering. We must await the report of the Electoral Commission, when in due course that issue will be considered.

The Prime Minister was asked—