Oral Answers to Questions

David Jones Excerpts

Wednesday 23rd November 2011 Commons Chamber

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

1. What discussions she has had with ministerial colleagues and Ministers in the Welsh Government on the effects of fuel prices on (a) rural and (b) urban areas in Wales; and if she will make a statement.

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

My right hon. Friend the Secretary of State and I have regular discussions with ministerial colleagues and the Welsh Government on a range of issues, including the effects of fuel prices in Wales. The Government are addressing the rising cost of fuel through the abolition of the fuel tax escalator, the introduction of the fair fuel stabiliser and a cut in fuel duty announced at the Budget earlier this year.

[Mr Llwyd]

I thank the Minister for that response. Will he impress upon the Secretary of State the need to push the Government to introduce a true fuel duty stabiliser that would trigger an annual reduction in the pump price, as the so-called fair fuel stabiliser announced in the March Budget does not go anywhere near far enough? The volatility in petrol prices means businesses cannot budget, as was noted yesterday by the Federation of Small Businesses in its submission for the autumn statement.

[Mr Jones]

I hear what the right hon. Gentleman says, but I must point out to him that the tax measures we have taken have resulted in petrol prices being approximately 6p per litre lower than they would have been had that escalator not been scrapped. Even taking VAT into account, fuel prices are approximately 3p per litre lower than they would have been.

[Mr Llwyd]

Further to that response, may I ask the Minister about a slightly different matter? What support are the UK Government providing for the use of electric cars? There are hardly any charging points all in Wales. There is not even one per constituency. What is being done to encourage that?

[Mr Jones]

As the right hon. Gentleman suggests, this is the technology of the future. As he knows, provision is being rolled out in the urban areas, and I hope solutions will be found to ensure that rural users will also be able to have access to suitable charging points.

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

Does the Minister agree that although it would be highly desirable to reduce fuel costs, it is impossible to do so while we are running a deficit of £160 billion a year as a result of the past actions of Opposition Members?

[Mr Jones]

I could not have put it better myself.

[Jessica Morden (Newport East) (Lab)]

For commuters and businesses in my constituency, high fuel prices are painful enough without the exorbitant cost of the Severn bridge tolls. If price increases follow the normal pattern, tolls will hit almost £6 per car this year. What action is the Secretary of State taking to help my constituents?

[Mr Jones]

As the hon. Lady knows, the Severn bridge is privately operated. The franchise comes to an end in 2017, at which time the Government will consider their options.

[Karl Turner (Kingston upon Hull East) (Lab)]

2. What recent assessment she has made of the level of unemployment in Wales.

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[Chris Bryant (Rhondda) (Lab)]

3. What recent estimate she has made of the number of 16 to 24-year-olds who are unemployed in Wales.

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

Current levels of youth unemployment in Wales and across the UK are, of course, disappointing. We are determined to tackle that and will announce additional measures as part of phase 2 of the growth review.

[Chris Bryant]

That is two Ministers now who have used the word “disappointing” about unemployment. Frankly, it is a tragedy and one of the worst things about it is that a previous Conservative Government consigned constituencies such as mine and whole communities like the Rhondda to long-term mass unemployment. They are doing exactly the same now to a generation of young people. Will the Minister suggest one single thing that he personally is doing in his Department to tackle youth unemployment in Wales and in the Rhondda?

[Mr Jones]

Of course youth unemployment is too high and of course, sadly, that is not a new phenomenon. In the last Parliament, youth unemployment in Wales increased by 73% and we have not heard a word of apology from the hon. Gentleman for that. We recognise the importance of the problem and that is why we have introduced the Work programme, which provides properly targeted support to young jobseekers.

[Jonathan Evans (Cardiff North) (Con)]

Is not export-led growth one route to addressing youth unemployment? In that regard, will my hon. Friend take this opportunity to congratulate private sector business in Wales, which since the last election has seen a 31% increase in Welsh exports—double the national average and the largest increase of any part of the United Kingdom?

[Mr Jones]

Yes. My hon. Friend is entirely right. The export figures for Wales were extremely encouraging, led particularly as they were by the engineering sector. In that connection, we must commend Airbus for the wonderful work it is doing in the north-east of Wales.

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[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.

[Hywel Williams (Arfon) (PC)]

Antur Nantlle community business group in my constituency has well developed plans for a hydroelectric scheme that will benefit the environment as well as provide an income stream for the venture, but it is concerned that any future change in the tariff will undermine the financial basis of the scheme. What can the Wales Office do to ensure that this example of the big society in action is not jeopardised by the Government’s actions?

[Mr Jones]

The hon. Gentleman will know that the consultation proceeding at the moment relates only to photovoltaic installations. There will be a further consultation in due course in which he will no doubt participate.

[Nia Griffith (Llanelli) (Lab)]

The Government’s feed-in tariff fiasco risks shattering all investor confidence in manufacturing in Wales. What will the Minister do to influence ministerial colleagues to prevent imminent job losses in the Welsh solar industry and ensure that any change to the feed-in tariff is given a long lead-in time and is set at a rate that will encourage investment and not increase unemployment?

[Mr Jones]

We fully understand the difficulties that companies involved in this sector of the economy face as a consequence, but if things had been left as they were, the feed-in tariff budget would have been eaten up. There is a consultation and I have no doubt that the hon. Lady will participate in it.

[Caroline Dinenage (Gosport) (Con)]

6. What recent discussions she has had with ministerial colleagues and Ministers in the Welsh Government on the cross-border economic implications of the development of enterprise zones.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

9. What recent discussions she has had with ministerial colleagues on measures to stimulate economic growth in Wales.

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

My right hon. Friend and I have regular discussions with ministerial colleagues, the Welsh Government and other organisations to discuss measures that would help to stimulate economic growth in Wales.

[Andrew Selous]

Does my hon. Friend agree that the private sector in Wales represents far too small a share of the total Welsh economy? What steps is he taking to change that?

[Mr Jones]

My hon. Friend is entirely correct. I agree with him, and so do the shadow Secretary of State and the Welsh First Minister. The Government’s plan for growth aims to create the most competitive tax system in the G20 and make the UK the best place in Europe to start, finance and grow a business. That applies to Wales as much as to the rest of the country.

[Huw Irranca-Davies (Ogmore) (Lab)]

Does the Minister agree that one of the best ways to incentivise good growth in difficult times is to invest in green jobs and the green economy? What would he say to my constituent Labour Councillor Phil White, ex-Tower colliery, who has put together proposals for investment in 1,500 homes in five of the most deprived areas of Wales using the feed-in tariff scheme by next March? This Government have cut the legs away from under that scheme, so what would the Minister say to my constituent?

[Mr Jones]

I am sure the hon. Gentleman listened carefully to my previous answers on the issue. I urge him and his constituents to engage with the consultation now proceeding.

[David Rutley (Macclesfield) (Con)]

10. What recent discussions she has had with ministerial colleagues and Ministers in the Welsh Government on support for small and medium-sized enterprises in Wales.

[Stuart Andrew (Pudsey) (Con)]

11. What recent discussions she has had with ministerial colleagues and Ministers in the Welsh Government on support for small and medium-sized enterprises in Wales.

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

My right hon. Friend the Secretary of State and I have regular discussions with ministerial colleagues and Ministers in the Welsh Government to support Welsh businesses.

[David Rutley]

Given the importance of SMEs in the vital task of job creation in Wales and across the United Kingdom, what steps are the Government taking to reduce the burden of regulation on businesses in Wales?

[Mr Jones]

My hon. Friend is correct. SMEs are the backbone of the Welsh economy and have long been so. Through our programme of reduction of regulation, we are easing the burden on SMEs and setting up new businesses. It is hoped that that will cause the sector to flourish in Wales.

[Stuart Andrew]

Does my hon. Friend agree that rises in interest rates would be catastrophic for the prospects of SMEs in Wales, and that maintaining our low interest rates could be at risk if we were to lose our triple A rating, making it more difficult for Wales to maintain its competitive edge when it comes to exports?

[Mr Jones]

Yes, my hon. Friend is entirely correct. This Government have had to take tough decisions on the economy. The fruit of that is that we have maintained our triple A rating and, as a consequence, this country is in a far better position than many of our competitors.

[Albert Owen (Ynys Môn) (Lab)]

Small businesses in my constituency have written to me this month saying that they are going to lay people off or may face closure because of the Government’s policy on the feed-in tariff for solar. Will the Minister give a categoric assurance to the House that he will lobby the Treasury and Ministers at the Department of Energy and Climate Change to ensure that the scheme is maintained to help businesses that are doing the right thing in Wales?

[Mr Jones]

The hon. Gentleman will have heard my previous answers on this question. I urge him also to contribute to that consultation, and no doubt he will participate in the debate this afternoon.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

It is estimated that the SME sector accounts for 90% of employment in Wales. What discussions has the Minister had with the Welsh Government about promoting this vital sector?

[Mr Jones]

The hon. Gentleman is entirely correct. As I have said, the SME sector is the backbone of the Welsh economy. We have regular discussions with the Welsh Government. In fact, I am meeting the appropriate Welsh Minister next Monday for that purpose.

[Sarah Newton (Truro and Falmouth) (Con)]

13. What recent discussions she has had with (a) ministerial colleagues and (b) others on broadcasting in Wales.