Oral Answers to Questions

David Jones Excerpts

Wednesday 25th April 2012 Commons Chamber

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

As a result of the Budget the Welsh Government will benefit from an additional £11.7 million over the spending review period. Consequently, they will have received nearly £500 million in additional funding since the spending review in 2010.

[Mark Tami]

The granny tax, the pasty tax and cutting the top rate of tax for the rich while shutting Remploy factories that give disabled people the dignity of work: those are the priorities of this Government. The caravan tax will hit thousands of hard-working families in Wales, particularly in north Wales. Will the Minister speak to the Chancellor and get him to scrap the caravan tax, rather than sitting on his hands like the hon. Member for Aberconwy (Guto Bebb) did the other evening?

[Mr Jones]

The hon. Gentleman should not get so aerated. The Government fully recognise the importance of the holiday and touring park sector to the Welsh tourism industry and to the economy of Wales as a whole. Her Majesty’s Revenue and Customs is consulting on the proposals, as he should know, and I hope he will play a part in that consultation, which closes on 18 May.

[Jonathan Evans (Cardiff North) (Con)]

Will my hon. Friend confirm that the Red Book reveals that although 14 Government Departments will see reductions in spending over the next four years, spending in Wales increases year on year despite the fact that the Welsh Assembly Government underspent by £385 million last year while cutting health spending in Wales?

[Mr Jones]

Absolutely. The reduction in the Welsh health budget is a matter of shame for the Welsh Assembly Government. I repeat that the Welsh Government will have had almost an additional £500 million since the spending review in 2010.

[Mr Peter Hain (Neath) (Lab)]

Is it fair that Welsh churches, charities, caravanners, pensioners and almost everybody else will pay more taxes so that millionaires can each pay £40,000 less?

[Mr Jones]

That is a very strange rhetorical question. The right hon. Gentleman will know that the reduction in the top rate of tax will not take effect until the end of the public spending freeze and it is quite interesting that the Government of whom he was a member did not see fit to increase the rate of tax until a matter of weeks before their last Budget.

[Mr Hain]

I am amazed that the hon. Gentleman is not ashamed of that impact on some of the most vulnerable in our society. Can we in Wales, through him, apologise to the Secretary of State? We used to think that she was all on her own at sea in the Cabinet, but clearly they are now all at sea together. The Budget omnishambles, Abu Qatada, petrol pump panic—at least Wales has a Labour Government to give us some protection from this Tory-Lib Dem incompetence. At least Wales can reject this disastrous Budget by voting Labour in the council elections next Thursday.

[Mr Jones]

I am still waiting for the question, Mr Speaker.

[Roger Williams (Brecon and Radnorshire) (LD)]

Does the Minister agree that with new law-making powers and a £15 billion budget, the Welsh Assembly Government have both the tools and the money to make a real and lasting difference in Wales?

[Mr Jones]

Yes, indeed. It is vital, too, that the Welsh Assembly Government work closely with the Government in Westminster for the good of the people of Wales. I very much hope that we will now see a far more joined-up approach taken by the Welsh Assembly Government in that regard.

[Nick Smith (Blaenau Gwent) (Lab)]

4. What assessment she has made of the treatment of capital allowances in enterprise zones in Wales; and if she will make a statement.

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[Bob Blackman (Harrow East) (Con)]

8. What discussions she has had with ministerial colleagues and others on funding for broadband technology in Wales.

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

My right hon. Friend the Secretary of State has had, and continues to have, regular discussions with ministerial colleagues, Welsh Government Ministers and other interested parties on the funding of broadband technology in Wales.

[Mr Mark Williams]

I thank the Minister for that response and congratulate him on his part in securing £57 million for Wales and, of course, the broadband provision for Cardiff. However, on the roll-out of broadband in scattered rural areas, does the Minister share the frustrations of many in my constituency—small business men, and consumers trying to access their bank accounts—at the speed with which that is being delivered in Wales when compared with authorities such as Cornwall, which are speeding ahead?

[Mr Jones]

As my hon. Friend says, the Government have made available a total of £56.9 million to help bring superfast broadband to Wales. The Welsh Government are working with Broadband Delivery UK on how best to employ the funding, but we are indeed looking to the Welsh Government to make an announcement as to their contribution to speed up the process. I am sure, however, that my hon. Friend will be pleased with the announcement by BT last December that 33 rural communities will have access to faster broadband by this summer, including Aberystwyth.

[Hywel Williams (Arfon) (PC)]

The South Wales chamber of commerce has called for a more ambitious target for broadband speeds in Wales for 2015, at 50 megabits per second from the previous target of 30. What are the Government doing here, in conjunction with the Welsh Government, to achieve such a target, which could clearly be very beneficial for Welsh business?

[Mr Jones]

It would indeed be beneficial, and I am sure that the hon. Gentleman will recall that in the Budget a sum of £12 million was made available to help transform Cardiff into a super-connected city, which should result in speeds of between 60 and 100 megabits per second—plus, of course, wi-fi connectivity.

[Hywel Williams]

Cardiff is not Wales, although some people might be under that misapprehension. Countries such as Finland and Malta have introduced a universal service obligation on internet coverage and connections similar to that for the postal service, to ensure that everybody has equal access to the internet and its advantages, irrespective of location, be that rural or otherwise. Will the Government look into that, and do so in time for the next communications Bill—or perhaps it is something that the Welsh Government can do under the powers set out in part 4 of the Government of Wales Act 2006?

[Mr Jones]

I quite agree with the hon. Gentleman: Cardiff is not Wales, but he referred specifically to the South Wales chamber of commerce. Indeed, as he knows, it is the ambition of this Government to ensure that superfast broadband is rolled out throughout the United Kingdom by the end of this Parliament, and at the moment we are on track.

[Bob Blackman]

Broadband suppliers have shown a marked reluctance to invest in Wales. Does my hon. Friend agree that it is important that the people of Wales have the benefit of new technology, and that perhaps the Welsh Assembly might use some of this vast underspend to invest in Wales, so that everyone has the benefit of broadband?

[Mr Jones]

Yes, indeed. As I said in reply to the hon. Member for Ceredigion (Mr Williams), the Welsh Assembly Government are expected to contribute to the process. They are working well with BDUK, but we are waiting for their commitment in financial terms.

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

6. What recent discussions she has had with ministerial colleagues on encouraging economic growth in Wales.

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

7. What recent progress has been made on electrification of the south Wales valley railways; and if she will make a statement.

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

My right hon. Friend and I are working with the Secretary of State for Transport and Welsh Ministers on the business case for electrification of the south Wales valley lines. We expect to make an announcement in the summer.

[Huw Irranca-Davies]

My hon. Friend the Member for Blaenau Gwent (Nick Smith) has the lovely Ebbw vale line. I live in the beautiful Llynfi valley and catch the Maesteg to Gloucester train via all points including Cardiff and Newport, a route which sometimes takes me through the delightful constituency of the hon. Member for Vale of Glamorgan (Alun Cairns). All these link even as far west as Swansea. We are all valleys people on valleys rail connections, so when considering electrification for south Wales and the valleys, will the Minister’s definition of south Wales be my definition—the definition of the people of south Wales—because when it comes to electrification, we are all in this together?

[Mr Jones]

Yes, indeed. We recognise the importance of the electrification of the south Wales valley lines to the economy of the Cardiff city region and wider. The Chancellor of the Exchequer singled out electrification of those lines as a key infrastructure priority in the Budget, and I was delighted that my right hon. Friend the Prime Minister confirmed his personal commitment to that when he visited Wales earlier this month.

[Albert Owen (Ynys Môn) (Lab)]

9. What recent discussions she has had with the First Minister of Wales on developing rail transport in Wales.

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

My right hon. Friend has regular discussions with the First Minister about a range of transport issues that affect Wales, most recently last week.

[Albert Owen]

Has the Wales Office done a study of the impact of High Speed 2 on Wales, and has the Wales Office put the case for improving the lines west of Crewe and line speeds, as well as possible electrification, so that we can have a high-speed Wales?

[Mr Jones]

I share the hon. Gentleman’s concern about speeds on the north Wales coast line. The Wales Office discusses these matters regularly with the Department for Transport and will continue to do so.

[Karen Lumley (Redditch) (Con)]

What discussions has the Minister had with the European Parliament on trans-European network funding to enhance the railways?

[Mr Jones]

As we consider what methods to adopt to improve the funding regime for railway lines in Wales, we will certainly look carefully at the EU TEN network funding, which is available from the European Community.

[Mrs Siân C. James (Swansea East) (Lab)]

As we know, economic growth is one of the ways we can improve infrastructure in Wales, but to do so we need a modern railway, and that means electrification as far as Swansea. What impact assessment has been made of the effect on the commuter and holiday trade of rail electrification to Swansea?

[Mr Jones]

I commend the hon. Lady for her interest in this matter on behalf of her constituents and can assure her that we remain very interested in the electrification of the line and are working closely with the Welsh Assembly Government to develop the business case. [Interruption.]

[Mr Speaker]

Order. Far too many noisy private conversations are taking place. Let us have a bit of hush for Mr Robert Halfon.

[Robert Halfon (Harlow) (Con)]

10. What recent assessment she has made of the effect of petrol and diesel prices on the Welsh economy.

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

The Government recognise that businesses, individuals and families are struggling with the rising cost of fuel, particularly in rural areas. We have eased the burden on motorists by approximately £4.5 billion through the abolition of the fuel duty escalator and the introduction of the fair fuel stabiliser and by cutting fuel duty.

[Robert Halfon]

I welcome the Government’s cuts in fuel duty, but the market price of oil is still too high, partly because of oil speculation. The United States is bringing in tough penalties for price fixing and market manipulation. Will the Minister urge his Government colleagues to look at this and put pressure on the big oil firms to cut prices at the pumps?

[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.