Oral Answers to Questions

David Jones Excerpts

Wednesday 15th May 2013 Commons Chamber

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

1. What recent discussions he has had with the First Minister on future investment in the aerospace industry in Wales.

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

The aerospace industrial strategy published in March sets out a vision for the sector, including a joint industry and Government investment of £2 billion across the next seven years. I am pleased that the Welsh Government have endorsed that strategy.

[Mark Tami]

Aerospace and Airbus are great success stories in Wales, so why do the Secretary of State and his Government believe that now is the time to create uncertainty on the question of Europe, which could threaten future investment in the sector? Does he not want quality jobs in Wales?

[Mr Jones]

I agree entirely with the hon. Gentleman that Airbus is an important and innovative employer. I have visited it twice recently, including when the contract for the AirAsia order was signed. However, Europe is an important issue. The Prime Minister considers it right that we should debate it properly, and that, at the end of that debate, we should have a vote. After the dust has settled, the fact will remain that, of all the mainstream parties, only the Conservative party wants to give the people of this country a vote on Europe.

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

St Athan enterprise zone in my constituency is focused on aerospace, and offers fantastic facilities, including hangars, runways and skills. What action is the Secretary of State taking to ensure that UK Trade & Investment is playing its full part to work with the community, those employed in St Athan and the Welsh Government to develop its status?

[Mr Jones]

My hon. Friend is entirely right that St Athan offers an enormously important resource in south Wales. The Aerospace Technology Institute will lead collaborative research and development projects across the UK, which will involve universities and industry. I suggest that that is a tremendous opportunity for St Athan.

[Owen Smith (Pontypridd) (Lab)]

Airbus is a quintessentially European company. It employs 6,000 people in Wales and 10,000 in the UK, and 100,000 further jobs support it. Does the Secretary of State believe that those jobs will be more or less secure if Wales is not part of Europe?

[Mr Jones]

The hon. Gentleman is wrong because Airbus employs 6,600 people in Wales, but he is right that it is an extremely important employer. Nevertheless, the people of this country deserve to have their voice on Europe. The Prime Minister will carry out important negotiations in the next few years. At the end of that period, the issue of Europe will be put to the British people. It is right that it should be. I am astonished that the hon. Gentleman and the Labour party want to deny the people of Wales and the UK their voice on that important issue.

[Owen Smith]

Leaving the pedantry aside, we had no answer from the Secretary of State on whether he believes that those 6,600 jobs in Wales will be more or less secure if Wales is not part of the EU. For the record, could he clarify his position on whether the jobs will be more secure if Wales is in or out of the EU? What is our Secretary of State’s opinion?

[Mr Jones]

I am entirely happy to clarify the point. Membership of the EU will be subject to negotiation. To repeat, at the end of that negotiation, we will see whether the conditions are right for this country to remain in the EU. The interests of companies such as Airbus will, of course, be taken fully into account.

[Mr David Hanson (Delyn) (Lab)]

2. What assessment he has made of the effects of changes to housing benefit rules in Wales.

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[Mr Philip Hollobone (Kettering) (Con)]

4. What discussions he has had with the Welsh Government on the effects on the economy in Wales of the Government’s fiscal policies.

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

I have regular discussions with the Welsh Government on economic issues. Action taken by the Government to deal with the deficit has helped keep interest rates at near record lows, helping families and businesses across Wales.

[Mr Hollobone]

How many people in Wales have seen their personal tax-free income tax allowances increase since May 2010, and how many small businesses in Wales are set to benefit from the new £2,000 national insurance employment allowance being introduced next April?

[Mr Jones]

The increase in the personal allowance announced by the Government will benefit 1.1 million taxpayers and remove 130 individuals from paying income tax altogether. More than 35,000 businesses in Wales will benefit from the national insurance employment allowance, with 20,000 of them being taken out of national insurance altogether.

[Albert Owen (Ynys Môn) (Lab)]

I welcome the drop in unemployment in Wales—that is in sharp contrast to unemployment in England—and credit must go to the jobs growth fund introduced by the Welsh Government. What practical steps are the Secretary of State and the Government taking to work with the Welsh Government to eradicate long-term unemployment, which is rising in north Wales and in his and my constituencies?

[Mr Jones]

The hon. Gentleman should also commend Welsh businesses, which are increasing the number of their employees, but certainly I am happy to commend initiatives by the Welsh Government. His point highlights the importance of the UK and Welsh Governments working closely together. That is something that we are prepared to do, and I expect to see reciprocation from the Welsh Government.

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

The UK Government-sponsored Silk commission recommended empowering the Welsh Government and Welsh local authorities with fiscal responsibility to incentivise economic development. Why were these recommendations not included in the Finance Bill or the Queen’s Speech in a Government of Wales Bill?

[Mr Jones]

As the hon. Gentleman will know, the Silk proposals are still under consideration by the UK Government. We have always made it absolutely clear that we will announce our response to Silk this spring, so we will issue that response in the next few weeks.

[Stephen Mosley (City of Chester) (Con)]

6. What assessment he has made of the potential for co- operation between enterprise zones in England and Wales.

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

I see great potential in a joined-up approach to enterprise zones in England and Wales. Co-operation will enhance the offer that each of the zones presents, and I will continue to engage with the Welsh Government to explore these opportunities.

[Stephen Mosley]

Today’s unemployment figures show that the Chester and north-east Wales economic sub-region is becoming a jobs powerhouse in the local area. By working together, the three enterprise zones in the area—Deeside, Wirral and Daresbury—can pack a stronger punch than if they act individually. Will the Secretary of State ensure that local authorities work together to pack that bigger punch?

[Mr Jones]

I visited the Deeside industrial park forum last Friday, and that was very much the message I got from employers in that enterprise zone. There is far more to be gained from the three enterprise zones working closely together. One of the catalysts for expansion of those zones would be electrification of the Wrexham to Bidston railway line, which is a matter that my office is working on.

[Ian Lucas (Wrexham) (Lab)]

I am delighted to hear that the Wrexham to Bidston line project is under consideration by the Secretary of State’s office. Will he convene a meeting of MPs and Assembly Members from north-east Wales, and of MPs from Cheshire, to discuss the project and what steps can be taken, using enterprise zones, to take it forward?

[Mr Jones]

I am pleased to hear the hon. Gentleman welcome that initiative. His proposal is certainly worthy of consideration. I am having a number of meetings in the immediate future with representatives of other enterprise zones, and in due course I will write to him and perhaps invite him to such a meeting.

[Alison McGovern (Wirral South) (Lab)]

It is indeed heartening to hear the Secretary of State speak supportively of the Wrexham to Bidston line upgrade project, which we want to see happen. Does he welcome Network Rail’s publication of its Long Term Planning Process, which sees connections between Wrexham and Liverpool being much improved, and can MPs from Merseyside also be invited to any such meeting he might convene?

[Mr Jones]

I am pleased to hear the hon. Lady’s comments. I think she would agree that electrification of the railway line between Liverpool and Wrexham would add greatly to the economies of north-east Wales, and Wirral and the north-west of England. It is important that we work with Merseyrail, and I hope to meet Merseyrail in the very near future. I am grateful to the hon. Lady for her support.

[Jonathan Evans (Cardiff North) (Con)]

7. What discussions he has had with his ministerial colleagues and others on the contribution of the M4 to the UK’s national transport infrastructure.

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

I have regular discussions with ministerial colleagues, Welsh Ministers and others on the strategic importance of the M4 to the UK road network.

[Jonathan Evans]

Does my right hon. Friend agree that it is excellent news that the talks between the Welsh Assembly Government and the UK Government have resumed after 10 years of inactivity on this subject? Is he aware of the recent remarks of the director general of the CBI, who indicated that progress on this issue, coupled with electrification of the line through to Swansea, would represent the biggest investment in the Welsh economy for a generation?

[Mr Jones]

I certainly agree with that. Furthermore, I would point out that the M4 is an extremely important UK national asset and it is a great pity that it was not upgraded long ago. Recently, I have had discussions with Welsh Assembly Ministers on this issue, and I hope that we will be able to make further progress.

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

Will the Secretary of State press the Treasury to invest now in the M4 above Newport and Port Talbot, going westwards, and to reduce the Severn bridge tolls, to give a real stimulus to the south Wales economy?

[Mr Jones]

I am heavily engaged with the Treasury on that very issue. However, I must point out to the hon. Gentleman that the road network in Wales is a devolved competence, and it is a great shame that the Welsh Government have not attended to this problem sooner, before the situation declined to the extent that it has. We are certainly engaged with the Treasury, and I hope that we will be able to make announcements in the future.

[David Morris (Morecambe and Lunesdale) (Con)]

Does my right hon. Friend agree that the M4 in south Wales is in desperate need of improvement, to relieve congestion that is hampering economic development there?

[Mr Jones]

Yes, the congestion on the M4 is causing significant difficulty to Welsh commerce and, of course, to Welsh motorists. I repeat that it is a great pity that the Welsh Government did not carry out their statutory function by upgrading that road long ago. This is a matter on which I am engaged with the Welsh Government, and I hope we will be able to make further announcements in due course.

[Wayne David (Caerphilly) (Lab)]

Will the Government introduce road tolls on the new M4 relief road?

[Mr Jones]

I must point out that the Assembly Government already have the competence to introduce road tolls, under the Transport (Wales) Act 2006. That is, of course, a matter for the Assembly Government.

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

8. What discussions he has had with his ministerial colleagues and others on increasing the accessibility of educational institutions in Wales to students from overseas.

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

The Government have no plans to change the name of the National Assembly for Wales.

[Michael Fabricant (Lichfield) (Con)]

In the light of the Silk review, which is likely to give fundraising powers to the National Assembly, does the Secretary of State not agree with me—and, more importantly, with the leader of the Welsh Conservatives, Andrew R. T. Davies—that now is the time to consider calling it the Welsh Parliament?

[Mr Jones]

Well, have I got news for my hon. Friend! The Silk commission has not yet completed its work; it will report in the spring of next year. The title “National Assembly” is used by the primary legislatures of countries such as France and South Africa, and also by the regional legislature of Quebec. The issue is what the legislature does, rather than what it is called.

[Karen Lumley (Redditch) (Con)]

12. What assessment he has made of the potential effects in Wales of the reduction in the rate of corporation tax to 20%.

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

In total, the main rate of tax is set to fall by 8 percentage points under this Government. The United Kingdom will have the lowest rate in the G20, lower than most of our main competitors.

[Karen Lumley]

As well as reducing corporation tax, what else can the Government do to help small businesses in Wales?

[Mr Jones]

The reduction in corporation tax will be of immense benefit to Welsh small businesses. The Budget did, of course, announce that the national insurance employment allowance will benefit 35,000 businesses in Wales, with 20,000 of them taken out of paying national insurance contributions altogether.

[Susan Elan Jones (Clwyd South) (Lab)]

13. What assessment he has made of the effects of the Government’s policies on the living standards of people in Wales.

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

This Government are committed to supporting those on low and middle incomes and to assisting growth by putting more money in the pockets of ordinary taxpayers. For example, the cumulative effect of this Government’s announced increases to the income tax personal allowance will result in a cash gain of £705 per annum for a typical basic rate taxpayer.

[Susan Elan Jones]

Some 400,000 individuals across Wales will face real-terms cuts in tax credits and benefits at a time when 13,000 millionaires across the UK will get a tax cut. Does the Secretary of State think this is right—yes or no?

[Mr Jones]

What I would say is that those on higher earnings will be paying more tax under this Government than they did during any year of the last Labour Government. We are supporting families with lower taxation and we are reducing the tax burden progressively; it would appear that the hon. Lady’s party has no interest at all in supporting the interests of hard-working families.

The Prime Minister was asked—