David Jones
Main Page: David Jones (Conservative - Clwyd West)Department Debates - View all David Jones's debates with the Cabinet Office
(11 years, 1 month ago)
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Mr Henry Bellingham (North West Norfolk) (Con)
3. What plans he has to encourage growth in the small and medium-sized enterprise sector in Wales.
The Secretary of State for Wales (Mr David Jones)
Small and medium-sized enterprises are vital to the economy in Wales and, indeed, the UK as a whole. That is why we have launched the Business is Great campaign, focusing on how we can further support these thriving businesses.
Mr Bellingham
I agree with the Secretary of State that small businesses in the Principality and across the country are the lifeblood of the economy. Considerable moves have been made already on the tax front and in lifting burdensome regulations. What more can he do, working with the Welsh Government, further to enhance wealth creation and the job-generating power of small businesses?
Mr Jones
My hon. Friend is absolutely right that SMEs are the backbone of the Welsh economy, and we are keen to do all we can to encourage them. That is why we have initiated the StartUp loans scheme, which has already lent about £50 million to more than 9,000 new businesses. With effect from this October, working with the Welsh Government, we have announced the scheme’s roll-out to Wales, so that any Welsh entrepreneur with a good idea can come forward and apply for a loan.
Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
The Secretary of State will know that SMEs in Dwyfor Meirionnydd are doing their best to thrive in the face of coalition austerity, as he visited the first ever Meirionnydd day the week before last. I thank him for attending it. However, the economic situation outside London is far different from down here, so why not make the National Insurance Contributions Bill, which is currently going through the House, apply everywhere outside London and south-east England, thereby mirroring a move in the Government’s emergency Budget of 2010?
Mr Jones
I did, indeed, enjoy my visit to the Meirionnydd day that the right hon. Gentleman held, and I was very impressed by the positive attitude of SMEs from his constituency. He will know that the national insurance contributions employment allowance will benefit 35,000 businesses across Wales by a total of £50 million, with 20,000 of those businesses being taken out employer national insurance contributions altogether, which I would have thought his constituents welcomed.
Mr Llwyd
Welsh exports were down by just under £1 billion over the past 12 months, which is the biggest fall in any UK nation or English region. What discussions is the Secretary of State having with the Chancellor to ensure that the Welsh producing economy, which is comprised mainly of SMEs, is not paying the price for a growing service and finance economy centred on London and the south-east?
Mr Jones
We are anxious to ensure that as many SMEs as possible export. That is a good reason for Welsh SMEs to utilise the services of UK Trade & Investment. UKTI has global reach and is available to every business, including those in Wales. I encourage the right hon. Gentleman to encourage his constituents to seek the services it offers.
Alun Cairns (Vale of Glamorgan) (Con)
The extension of the StartUp loans scheme to Wales is fantastic news for budding entrepreneurs across the nation. Will the Secretary of State join me in calling on the enterprise agencies, such as Business in Focus, which serves the Vale of Glamorgan, to co-ordinate their activities in a campaign to get more people to start their own businesses?
Geraint Davies (Swansea West) (Lab/Co-op)
Swansea accepts that Hull, coming out of the shadows, not Swansea, continuing to shine, was named the UK city of culture for 2017. Does the Secretary of State agree that to maximise the growth of SMEs, we need to keep the momentum of the bid going, maximise the opportunity of the Dylan Thomas centenary and confirm Swansea as the city of culture of Wales?
Mr Jones
I agree entirely with the hon. Gentleman. While I congratulate Hull, I was bitterly disappointed that Swansea did not get the accolade of city of culture. Nevertheless, Swansea’s bid was an extremely good one and the networks that were built up can form a good platform for future enterprises. I agree that the Dylan Thomas centenary is a massive opportunity for Swansea.
Bill Wiggin (North Herefordshire) (Con)
4. What assessment he has made of the potential effect on the Welsh economy of upgrading the M4 motorway.
Andrew Selous (South West Bedfordshire) (Con)
6. What assessment he has made of the potential effect on Wales of upgrading the M4 motorway.
The Secretary of State for Wales (Mr David Jones)
Upgrading the M4 is a key priority for the Government and for businesses in Wales. That is why we are enabling the Welsh Government to use their existing limited borrowing powers to begin work on upgrading the motorway as soon as possible.
Bill Wiggin
Will my right hon. Friend assure the House that he will continue to persuade his colleagues in the Welsh Government to work hard to ensure that there are improvements to the M4 around Newport?
Mr Jones
My hon. Friend is entirely right. That infrastructure improvement has long been called for, particularly by the CBI. An upgrade is grossly overdue. We have given the Welsh Assembly Government the borrowing powers that they need. We hope and expect that they will proceed with the upgrade as quickly as possible.
Andrew Selous
Is it the case that although funding to upgrade the M4 around Newport may not have been available in the past, the Government’s recent agreement to increase the borrowing powers of the Welsh Government means that the upgrade can now go ahead?
Kevin Brennan (Cardiff West) (Lab)
One of my earliest memories is cramming into the back of my dad’s Ford Anglia in 1966 with my two sisters and my brother, and crossing the original M4 Severn crossing. Forty-seven years later, it costs £6.20 for a car, £12.40 for a van and £18.60 for a heavy goods vehicle. The second Severn crossing was built 17 years ago. Is it not time that we improved the Welsh economy by getting rid of those burdensome tolls?
Mr Jones
I agree with the hon. Gentleman that the tolls are a major impediment to businesses in south Wales. Having said that, these are important pieces of infrastructure that assist the south Wales economy immensely. As he will know, the franchise ends in 2017-18. At that time, we will look at ways to reduce the cost of crossing the Severn.
David T. C. Davies (Monmouth) (Con)
8. Businesses and commuters have given a warm welcome to the announcement about the M4 relief road that was made by the Prime Minister and his deputy. Given that, what does the Secretary of State make of the headline in the South Wales Evening Post on Monday, which suggested that the Liberal Democrats in Wales oppose that vital piece of infrastructure?
Susan Elan Jones (Clwyd South) (Lab)
5. When he plans to bring forward legislative proposals to give the Welsh Government borrowing powers.
The Secretary of State for Wales (Mr David Jones)
Our detailed response to the Silk Commission’s recommendations, which we published on Monday, confirmed that we will include proposals in a draft Wales Bill to give the Welsh Government borrowing powers. We will publish the draft Bill, for pre-legislative scrutiny, in the current parliamentary Session.
Susan Elan Jones
I welcome the fact that, after a year’s wait, we finally have a statement from the Secretary of State, but I would like to press him further, as he speaks of details. When will we know the basis on which the Welsh capital borrowing limits will be calculated? There is a precedent in the Scotland Act. Why will he not just say that he will follow that?
Mr Jones
I make no apologies for ensuring that the proposal was properly scrutinised. The package we announced is good for Wales and I am glad that it was welcomed by the Welsh Government, who will have new borrowing powers. The borrowing limit that will apply to those powers will be commensurate with the Welsh Government’s access to independent streams of funding to repay the borrowing they incur. The details will be placed on the face of the draft Bill when it is published.
Michael Fabricant (Lichfield) (Con)
If the National Assembly for Wales is going to have borrowing powers, and if it is going to smell like a Parliament and look like a Parliament, is it not time that it became the National Parliament of Wales?
Mr Speaker
Order. Noisy and discordant conversations are taking place in the Chamber. I am sure I am not alone in wanting to hear the Secretary of State’s answer to the hon. Member for Lichfield (Michael Fabricant).
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
In Monday’s statement, the Secretary of State closely tied in borrowing powers with the income tax sharing arrangement between the UK and the Welsh Government. Will he confirm that the proposed sunset clause on the referendum has been dropped?
Mr David Hanson (Delyn) (Lab)
7. What steps the Government are taking to increase the number of people in Wales who earn a living wage.
Karl MᶜCartney (Lincoln) (Con)
9. What assessment he has made of the potential effect on the Welsh economy of varying the current level of taxation in Wales.
The Secretary of State for Wales (Mr David Jones)
The power to vary tax is an important way of driving economic growth and ensuring that Governments are accountable for the way they spend money. We will devolve certain taxes to the Welsh Assembly and Welsh Government and provide for a referendum, so that people in Wales can decide whether some of their income tax should be devolved, as in Scotland.
Karl MᶜCartney
I thank my right hon. Friend for that answer. Could he explain what role devolving stamp duty land tax will play in stimulating the housing market in Wales, including in rural places such as Llanbedr Pont Steffan? Does he agree that the expansion of the Help to Buy scheme—
Karl MᶜCartney
Will the scheme help not only aspiring home owners in Wales, but my constituents in Lincoln?
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
What substantive planning is the Secretary of State doing for the Welsh economy to take full advantage of the benefits that Scottish independence will bring to these islands in the coming years? Surely tax-varying powers are the minimum requirement in Wales, so that it, too, will benefit in the way that Scotland will benefit in the years to come.
Owen Smith (Pontypridd) (Lab)
On Monday, we heard in this House the Secretary of State commit his party to cutting a penny off income tax for taxpayers in Wales, including millionaires. I am sure he did not pluck that figure out of thin air; I am sure he consulted the Treasury. Will he therefore tell us what the precise cost to the Welsh budget will be of his proposed tax cut?
Mr Jones
The point I made was that a cut of one penny in the pound would do a tremendous amount to stimulate the Welsh economy. Let me repeat what I said to the hon. Gentleman on Monday. We in the Conservative party are ambitious for the people of Wales. We want to see the Welsh economy growing; he wants a Welsh economy reliant on handouts. That is the difference between our parties.
Owen Smith
No, the difference is that I want some answers. I assume from the Secretary of State’s answer that he did not consult the Chancellor and does not know how much the proposal will cost the Welsh budget, so let me help him out. The static effect is £200 million, or the equivalent of 5,000 teachers in Wales, so will he tell us which services he would propose cutting to pay for that tax pledge?
Mr Jones
The hon. Gentleman clearly does not get it. The issue of whether income tax should be devolved will be in the hands of the Welsh people. It will be up to the Welsh Assembly Government to make the decision to trigger that referendum. For our part, we want them to trigger that referendum, to call it, to elect for a lower rate of tax and to give Wales the competitive edge that so far it lacks under the Labour Welsh Assembly Government.
Stephen Mosley (City of Chester) (Con)
10. What assessment he has made of the potential economic effect of the proposed new prison in north Wales.