Oral Answers to Questions

David Jones Excerpts

Wednesday 9th October 2013 Commons Chamber

[Karen Lumley (Redditch) (Con)]

1. What recent assessment he has made of the effects of the Government’s economic policies on Wales.

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

Our economic strategy is designed to equip Wales and the United Kingdom with the tools they need to succeed in the global race, and to secure a stronger economy and a fairer society.

[Karen Lumley]

With the deficit down by a third and employment at record levels, does the Secretary of State agree that it is time for the Labour party to admit that our economic policy is working, not only in Redditch, but in Wales?

[Mr Jones]

Indeed, it is working in Wales and in Redditch. There are clear signs that the economy is turning the corner. I am sure that all Members were pleased with yesterday’s forecast by the International Monetary Fund, which revised UK growth for next year up from 1.5% to 1.9%.

[Mr Peter Hain (Neath) (Lab)]

I put it to the Secretary of State that all economies recover from all recessions at some point, but that our recovery has come three years after those of Germany and the United States because his Government’s savage cuts turned Labour’s growth and recovery from the banking crisis in 2010 into three years of austerity. The current recovery is made in the south-east for the south-east. In Wales, there is no housing bubble, long-term unemployment is dire, as is under-employment, and personal debt is high. We need investment in Wales. His Government should be supporting the Labour Welsh Government, not hindering them with budget cuts the whole time.

[Mr Jones]

It is rather rich for the right hon. Gentleman, who was a member of the Government who presided over the economic crash in 2008, to criticise this Government for the steps that we are taking to turn the economy around. Wales, as much as every other part of the country, is benefiting from the measures that we have taken. There are 67,000 more people in work than at the time of the last election. He should welcome that.

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

Does my right hon. Friend agree that our excellent national economic policies are being held back by the Welsh Assembly’s inward investment policies, which have led to a fall in inward investment in Wales? Wales has gone from being one of the top creators of inward investment to one of the lowest as a result of those policies.

[Mr Jones]

There were modest improvements recently, but it is the case that the Welsh Assembly Government should give serious consideration to reinstating a body like the Welsh Development Agency, which was so successful.

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

Wales urgently needs job creation levers to boost our economy, as the Council for Economic Renewal said today. Last week, in an interview with Adrian Masters of ITV Cymru Wales, the Prime Minister refused to commit to a response from the UK Government to part 1 of the Silk commission before next year’s Scottish referendum. Why are the Secretary of State and the Prime Minister holding back the Welsh economy?

[Mr Jones]

As I have just said, the Welsh economy is growing. As the hon. Gentleman knows, we recently held a consultation on the devolution of stamp duty land tax. We are considering the responses and will make a formal response in due course.

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

13. Housing construction is an important element of economic renewal and regeneration, and the Help to Buy scheme in England will make a significant impact in encouraging home ownership and new build. The situation in Wales is more confused. Will my right hon. Friend encourage the Welsh Government to follow the English model as closely as possible? Otherwise, we will run the risk that lenders will not be available to lend in Wales.

[Mr Jones]

I was pleased that the Welsh Government recently announced a form of Help to Buy, and I hope, as my hon. Friend says, that they will align their policies with those of the United Kingdom Government to ensure that the recovery is spread across England and Wales.

[Nia Griffith (Llanelli) (Lab)]

The Government’s economic policies are leaving people in Wales struggling to make ends meet. With average energy bills up £300 since 2010, does the Secretary of State support Labour’s plans to freeze energy prices?

[Mr Jones]

I am not entirely sure what those plans are, and I would be interested to hear about them from the hon. Lady. In fact, they unravelled less than 24 hours after the announcement. Under the previous Government we had 10 years of incoherence in energy policy, and as a consequence this Government have to take the necessary steps to keep the lights on.

[Neil Carmichael (Stroud) (Con)]

2. What assessment he has made of the value of exports to the economy in Wales.

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

The Government recognise the importance of exports to the economy. I was pleased to welcome the chief executive of UK Trade & Investment, Nick Baird, to Cardiff last month to underline the support that UKTI can offer to businesses in Wales.

[Neil Carmichael]

That is further proof that the Government are taking action to increase exports, but what steps will the Secretary of State take to ensure that Britain and Wales continue to benefit from opportunities in Europe by trading through and to Europe?

[Mr Jones]

My hon. Friend is right. Wales is largely a country of small and medium-sized enterprises, and if more SMEs were to export at the European rate, that would wipe out the trade deficit altogether. I strongly encourage Welsh companies to engage closely with UKTI, as it has global reach and is able to maximise opportunities throughout Europe and the rest of the world.

[Nick Smith (Blaenau Gwent) (Lab)]

What impact does the Secretary of State think that uncertainty over the UK’s role in the European Union—uncertainty created by his Government—will have on exports from Wales?

[Mr Jones]

I am sure the hon. Gentleman engages closely with his constituents and will know there is general dissatisfaction with the current settlement in Europe. We think our position in Europe should be renegotiated, and it is right to take sufficient time over that negotiation. At the end of that period, by 2017, we will put the issue of whether Britain should be a member of the European Union to the people of this country in an in/out referendum.

[Hywel Williams (Arfon) (PC)]

All constituent parts of the UK ran trade surpluses in 2012—all except England. That puts paid to the caricature of Welsh business as failing in some way, and the surplus from Wales was £5 billion in 2012. What can be done to encourage micro-businesses such as those in my constituency to understand the value of exports and the opportunities they offer in the face of austerity from this Government, and indifference and incompetence from the Government in Cardiff?

[Mr Jones]

The hon. Gentleman is right to say that Welsh businesses have been successful, but we want them to be even more successful. I therefore encourage Welsh businesses of whatever size to engage closely with UKTI, which as I said has global reach and is in the best position to maximise opportunities throughout the world.

[Mr David Hanson (Delyn) (Lab)]

3. What assessment he has made of wage levels in Wales since 2010.

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

5. What recent assessment he has made of the potential costs and benefits of High Speed 2 to Wales.

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

The Wales Office is committed to ensuring Wales derives the maximum possible benefit from HS2. In addition to improved journey times and extra rail capacity that passengers across the nation will experience, my Department will be working closely with Lord Deighton’s HS2 growth task force to identify further benefits to Wales.

[Mr Llwyd]

With respect, that is not a good answer considering the Minister knew of this question three or four weeks ago. Is there a robust cost-benefit analysis of this whole fantastical project?

[Mr Jones]

The cost-benefit analysis indicates that there will be a positive impact of £15 billion, in which Wales will be a full participant.

[Mr Llwyd]

With some spending projections for this vanity project topping £80 billion, will the Secretary of State commit to fighting for a Barnett consequential equivalent for Wales, which could be between £3 billion and £4 billion and make a huge difference to the Welsh rail network? Will he join his predecessor, the right hon. Member for Chesham and Amersham (Mrs Gillan), in pleading this case, as reported today in the Western Mail?

[Mr Jones]

I think the right hon. Gentleman knows what my answer will be: HS2 is a UK-wide project from which every part of the United Kingdom will benefit. He is a north Wales MP. He knows that north Wales will benefit from improved journey times to London via the hub at Crewe, he knows that mid-Wales will benefit from travel times via Birmingham, and he knows that south Wales will benefit from connections at Old Oak Common. Of course it will be of national benefit.

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

Last week, the Welsh Government announced the reopening of the second line between Wrexham and Chester. Does my right hon. Friend agree that such investment in rail infrastructure, including HS2, has a massive role to play in encouraging economic growth in north-east Wales and west Cheshire?

[Mr Jones]

Yes. I was pleased that the Welsh Government reversed their decision not to redouble the line between Chester and Wrexham. It plays an important part in the business case for north Wales electrification, which I am sure all Members would welcome.

[Ian Lucas (Wrexham) (Lab)]

14. The £44 million of Labour investment in the Wrexham-Chester line is not a reversal of the decision; it is part of continued investment to improve the network in north-east Wales. I know the right hon. Gentleman is interested in this issue. Will he meet me to explore specifically how HS2 will link to the new development in the rail network in north-east Wales to benefit the area?

[Mr Jones]

The hon. Gentleman knows that I am always delighted to meet him to discuss rail matters. In fact, I invited him to a meeting only a few months ago to discuss the electrification of the Wrexham to Bidston line. I am entirely happy to keep meeting him.

[Stuart Andrew (Pudsey) (Con)]

Is there not a real danger that the economies of north Wales and northern England could be left behind if we rely solely on the existing north-south rail lines, which, by all predictions, will be full to capacity by the mid-2020s?

[Mr Jones]

My hon. Friend is entirely right: it is a question not just of speed, but of capacity. In his area, journey times from Leeds to London will be reduced by about 60 minutes, which I am sure we would all welcome.

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

6. What recent assessment he has made of the effects in Wales of changes to housing benefit.

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[Jesse Norman (Hereford and South Herefordshire) (Con)]

7. What recent discussions he has had with the Secretary of State for Transport about capital investment in the Cardiff to Manchester railway line.

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

I regularly meet my right hon. Friend the Secretary of State for Transport to discuss rail infrastructure priorities for Wales, and I am meeting him again soon. I will raise the important link that my hon. Friend mentions as part of that discussion.

[Jesse Norman]

The new enterprise zone at Rotherwas in Herefordshire offers a superb opportunity to reopen the rail link to Hereford and establish a parkway station, which would assist local people and the many Welsh people who work in my county. Will the Secretary of State support those plans?

[Mr Jones]

The Herefordshire enterprise zone is extremely important, and my hon. Friend will know that the important thing with rail infrastructure improvement is to build up a coherent business case. I will certainly raise this matter with my right hon. Friend the Secretary of State for Transport when I meet him, and my hon. Friend’s question will form an important part of that business case.

[Kevin Brennan (Cardiff West) (Lab)]

May I take this opportunity to support the suggestion from the hon. Member for Hereford and South Herefordshire (Jesse Norman) and to ask the Secretary of State to ensure that he reiterates the importance of the electrification of the railway line to south Wales from London and of the valley lines? Will he take the opportunity to do that now?

[Mr Jones]

Yes, indeed. The announcement that we made last year is still very much on track, and we are hoping that the link to Swansea will be completed by 2018. [Interruption.]

[Mr Speaker]

Order. There are far too many persistent and very noisy conversations taking place in the Chamber. I know that colleagues will want to listen to Susan Elan Jones.

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

8. What assessment he has made of the potential effects on charities in Wales of the provisions of the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill.

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

The Government have published impact assessments to accompany the three parts of the Bill. The assessment for part 2, which covers non-party campaigning, evaluates the potential effects of the proposals on third parties in the United Kingdom.

[Susan Elan Jones]

With respect, is not that answer a complete load of nonsense? The Wales Council for Voluntary Action has said that the Government’s proposals are entirely unworkable and undemocratic. Is there any serious charitable or faith group that agrees with the Government on this mess of a Bill?

[Mr Jones]

The hon. Lady is making a point that has already been made, and that argument has now been discounted. She will know that the Government have tabled amendments to the Bill and have now reverted to the wording of the existing legislation, which defines controlled expenditure as expenditure that can

“reasonably be regarded as intended to promote or procure the electoral success of a party or candidate”.

That is precisely the same wording as applied in 2005 and 2010, so her fears are entirely unfounded.

[Jessica Morden (Newport East) (Lab)]

10. What assessment he has made of the effects of the under-occupancy penalty in Wales.