Oral Answers to Questions

David Jones Excerpts

Wednesday 16th January 2013 Commons Chamber

[Mr David Amess (Southend West) (Con)]

2. What recent assessment he has made of the defence industry in Wales; and if he will make a statement.

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

The defence industry is a significant contributor to Wales and the UK’s economy, contributing more than £22 billion of annual revenues, of which £5.4 billion is from exports. Companies such as General Dynamics, EADS and BAE Systems ensure that the defence industry makes a vital contribution to the economy in Wales.

[Mr Amess]

Notwithstanding attempts to try to intimidate me not to attend Welsh questions, will my right hon. Friend tell me what representations he has received on the research and development of General Dynamics?

[Mr Jones]

I am always extremely grateful—as I am sure the entire House is—to see my hon. Friend take such an interest in Welsh matters. In November I visited EDGE UK, which is part of General Dynamics, and I was tremendously impressed with its exciting research and development programme. It is an excellent example of a part of the defence industry that is benefitting Wales hugely.

[Mrs Madeleine Moon (Bridgend) (Lab)]

The Royal United Services Institute think-tank produced a paper demonstrating that 40p of every pound spent on a UK-based—indeed, a Welsh-based—defence contractor brought 40p back into the UK economy. Will the Minister ensure that the Treasury and the Ministry of Defence understand the importance of supporting our Welsh defence industries so that we can also support the UK economy?

[Mr Jones]

The Wales Office and the MOD are keenly aware of the importance of the defence industry to the economy of this country, and the hon. Lady is right to say that it makes a significant fiscal contribution. That is why I was extremely pleased to visit EDGE UK last year and see it making such a huge contribution to the economy in that part of Wales.

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

The MOD has disclosed that on safety grounds it has ruled out Devonport as a suitable relocation site for Trident following Scottish independence. Is the Secretary of State as surprised as I am that the First Minister is making a case for Milford Haven, when the MOD has not undertaken any safety assessment of the casualty rate in south-west Wales following a strategic attack or a Trident-related accident?

[Mr Jones]

I think the MOD is extremely satisfied with the facilities offered to the Trident fleet and Faslane, and expects to be based there for the foreseeable future.

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

3. What recent assessment he has made of the automotive industry in Wales; and if he will make a statement.

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[Alun Cairns (Vale of Glamorgan) (Con)]

4. What recent discussions he has made on aviation policy in Wales; and if he will make a statement.

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

I have had discussions with Cabinet colleagues and the First Minister about Cardiff airport and aviation policy in Wales more generally.

[Alun Cairns]

The Welsh Government have taken the remarkable decision to tie up much needed capital public funds in the purchase of Cardiff airport, in spite of our thoughts and concerns. Will the Secretary of State take every proactive step possible to encourage new airlines to consider using Cardiff airport in order to increase the number of destinations it serves and to make the place sustainable, especially given the importance of the British Airways maintenance centre, which uses that runway?

[Mr Jones]

As I said, I discussed this matter with the First Minister recently. The purchase of Cardiff airport is of course a matter for the Welsh Government. I have no doubt that they will be looking to see a robust business case for that purchase, and we will be considering the issue of the operator of the airport very carefully, too. My hon. Friend makes an important point about the importance to the local economy of the BA maintenance facility.

[Geraint Davies (Swansea West) (Lab/Co-op)]

In order to stimulate jobs in aviation and the aerospace industry, will the Secretary of State press the Chancellor to give Swansea super-connected city status in the forthcoming Budget?

[Mr Jones]

The hon. Gentleman will know that Swansea made a bid for super-connected status, which was considered. Newport got super-connected status, which I am sure is welcomed by the people of Newport. He will know that a business case has to be made. He was very much to the fore in the business case for the electrification of the railway line to Swansea, and I hope he will play a similar role with regard to super-connected status.

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

5. When he last met representatives of the tourism industry in Wales and what representations he received at that time; and if he will make a statement.

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[Mr Peter Hain (Neath) (Lab)]

6. What assessment he has made of the economic effect on people working in Wales of reductions in tax credits and other benefits for working people.

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

The measures announced in the autumn statement will mean that working households are on average £125 per annum better off in 2013-14.

[Mr Hain]

Is the Secretary of State aware that Neath food bank is now seeing more people in work—many part time and desperate—than out of work? One hundred thousand working people in Wales are now being hammered by his welfare cuts, some among the 230,000 households in Wales that will be forced by the Government to pay council tax for the first time in April. Will he now take down from the Wales Office website his promise that people will be better off under this Government in work and admit that some cannot even afford to eat?

[Mr Jones]

Certainly not. In fact, people who are in work are considerably better off. The average earner on the minimum wage who works full time will by next April be paying half as much in tax as he did at the beginning of this Parliament, in the wake of the right hon. Gentleman’s Government. If he is not willing to tackle the appalling legacy of the welfare shambles that he left, we will be prepared to do so.

[Jonathan Evans (Cardiff North) (Con)]

Does my right hon. Friend share my amazement at the complaint we have just heard from a senior member of the last Government, a Government who twice froze personal allowances and doubled tax for low earners, from 10p to 20p as a starting rate? Is not the reality that the massive £3,000 hike in the personal allowance—which Labour does not like to hear about—is helping low-paid people in Wales and the whole of—

[Mr Speaker]

Order. The hon. Gentleman is an experienced Member, but unfortunately his question was too long and substantially irrelevant. The Minister will focus on the responsibilities of the current Administration, briefly.

[Mr Jones]

I have to say to my hon. Friend that it does not amaze me at all. This Government are dealing with the mess that the Government of the right hon. Member for Neath (Mr Hain) left. That is the fact of the matter; everybody knows that.

[Owen Smith (Pontypridd) (Lab)]

Could the Secretary of State tell us exactly how many households will see their modest incomes cut as a result of the reductions in tax benefits and other social security benefits that he voted for last week?

[Mr Jones]

What I can say is that working households across Wales fully understand the need to tackle welfare and benefits. If the hon. Gentleman is not prepared to do that and stand up for working households, this party is.

[Owen Smith]

There was no answer there from the Secretary of State, as usual. Let me tell him the answer. There is no excuse for his not knowing, because his own income assessment makes it clear that 400,000 households—a third of all households in Wales—will lose out as a result of these changes. Let us contrast that with the 4,000 households—that is 4,000 versus 400,000—that will get a tax break as a result of the millionaires’ tax cut. That ratio of 100:1 tells us everything we need to know about this Government. The 99% pay while the 1% profit. Let me be clear: Labour will continue to speak for the 99%; the Secretary of State can speak for the 1%.

[Mr Jones]

As a consequence of the measures taken by this Government, 1.1 million taxpayers in Wales are paying less tax, while 109,000 taxpayers in Wales are now paying no tax at all. That is what we are doing for hard-working people, and I am appalled that the hon. Gentleman sees fit not to support them.

[Neil Carmichael (Stroud) (Con)]

7. What assessment he has made of the availability of skills in the nuclear power industry in Wales.

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

Hitachi’s investment at Wylfa will help to ensure that our nuclear work force remain highly skilled and some of the best in the industry. Talented young apprentices on Anglesey can look forward to an excellent future at Wylfa.

[Neil Carmichael]

Locally in Gloucestershire, as well as through the national training academy for nuclear, we are working hard to ensure that we have sufficient skills—and retain those skills—ready for nuclear new build. What measures will the Secretary of State be proposing to ensure that Wales, too, benefits from the ability to improve that capacity?

[Mr Jones]

My hon. Friend is right: the development of nuclear skills is key. The Government have created the Nuclear Energy Skills Alliance to co-ordinate the work of all the expert skills bodies relating to nuclear. The Welsh Assembly Government are also represented on that alliance.

[Albert Owen (Ynys Môn) (Lab)]

The Secretary of State will be aware of the new energy centre in Llangefni—indeed, he has visited—which upskills people in the nuclear industry and for low carbon. However, with unemployment increasing considerably in 2012 and the announcement of a further 350 jobs at risk at Vion, will he meet me urgently to discuss the skills and jobs issues that are harming the prospects of young people and under-skilled people in Wales?

[Mr Jones]

I join the hon. Gentleman in commending the work of Coleg Menai, which is doing a tremendous job in training apprentices for Wylfa. He will know that I am always ready to meet him to discuss any issue of concern to his constituency.

[Paul Flynn (Newport West) (Lab)]

Would it not be better to invest the money elsewhere because of the uncertain future of nuclear power, given the huge cost overruns in Finland and France and the fact that those two power stations are already three to four years late? Owing to the uncertainties relating to nuclear power, should we not be investing in renewable energy, and particularly in tidal energy, which is Wales’s North sea oil?

[Mr Jones]

The Government are committed to a mix of energy that includes renewables and nuclear, and nuclear will play an extremely important part in that mix. The Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), has announced that the generic design assessment of the Wylfa reactor has commenced. The reactor will be a huge asset to the nuclear industry in this country.

[Nick Smith (Blaenau Gwent) (Lab)]

8. What steps he is taking to tackle fuel poverty in Wales.

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[Andrew Stephenson (Pendle) (Con)]

9. What recent assessment he has made of the aerospace industry in Wales; and if he will make a statement.

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

The aerospace industry plays a key role in the Welsh economy, and Wales benefits from the continued investment made by major aerospace companies such as Airbus and GE Aviation.

[Andrew Stephenson]

I thank the Secretary of State for that answer. Will he join me in welcoming Air Asia’s £5.5 billion purchase of 100 A320 aeroplanes from Airbus? That will be good news for the aerospace sector in Wales and in my constituency, where there are several aerospace companies with Airbus contracts.

[Mr Jones]

Yes. I was pleased to go with my right hon. Friend the Prime Minister to witness the signing of that contract. It represents a tremendous boost to the factory at Broughton. It will secure the jobs of 1,500 workers, as well as of those in the wider supply chain.

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

The success of Airbus is based on European co-operation. Does the Secretary of State think that his hopeless Government could possibly learn from that example?

[Mr Jones]

The hon. Gentleman is entirely right; Airbus is an excellent example of European co-operation, and we expect it to remain so.

[Karl MᶜCartney (Lincoln) (Con)]

10. What assessment he has made of the Government’s income tax policy so far as it relates to Wales.