Oral Answers to Questions

David Jones Excerpts

Wednesday 12th February 2014 Commons Chamber

[Ian Lucas (Wrexham) (Lab)]

1. What assessment he has made of the level of business investment by banks in Wales.

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

Recent Bank of England data show that the availability of credit to businesses, including small and medium-sized enterprises, has increased significantly across the United Kingdom.

[Ian Lucas]

Businesses in Wrexham tell me that the biggest barrier to growth is the lack of availability of finance. Today Barclays has talked of more redundancies and more bankers’ bonuses. Will the Secretary of State support me by establishing a regional bank for Wales which will be attuned to the local economy, and which will provide the finance for business that will enable the local economy to grow?

[Mr Jones]

The proposal for a development bank for Wales was floated recently by Professor Dylan Jones-Evans, and I believe that he is now conducting another exercise for Edwina Hart, the business development Minister in Wales. We are certainly prepared to consider the proposal, and, in fact, I have already discussed it with my right hon. Friend the Secretary of State for Business, Innovation and Skills.

[Guy Opperman (Hexham) (Con)]

Does my right hon. Friend welcome the fact that it was this Government who passed the Financial Services (Banking Reform) Act 2013, which enabled local banks to come into existence and has resulted in the creation of more than 20 new challenger banks, and which the Labour party voted against?

[Mr Jones]

I entirely agree with my hon. Friend. Furthermore, the Government are working closely with the British Bankers Association to set up a business finance taskforce, which gives bank customers a right of appeal when they feel that they have been treated unfairly.

[Mr Peter Hain (Neath) (Lab)]

Why, instead of coming out with the usual Government flannel, does the Secretary of State not admit that, according to the House of Commons Library, net bank lending—that is, new loans minus repayments—to small and medium-sized enterprises in Wales has been negative over the last two years? Since the third quarter of 2011, small businesses in Wales have paid back to the banks £148 million more than they have been able to borrow, and medium-sized businesses have paid back £186 million more than they have been lent. The truth is that the banking system in Wales is broken, and the Secretary of State is doing nothing about it.

[Mr Jones]

On the contrary, as my hon. Friend the Member for Hexham (Guy Opperman) has just pointed out, the Financial Services (Banking Reform) Act has put a great deal more power into the hands of customers. It has also done a great deal to repair the damage that was done under the last Labour Administration.

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

Many of my constituents continue to be affected by the interest rate swap scandal, when banks were deliberately targeting businesses, and wrecking lives and real economic activity. My constituents Mr and Mrs Bartels, for instance, were deliberately bankrupted by Barclays. What can the Secretary of State do to support the excellent work of the hon. Member for Aberconwy (Guto Bebb) and the all-party parliamentary group on interest rate swap mis-selling to secure justice for Welsh businesses that have been ripped off by exploitative banks?

[Mr Jones]

I entirely agree with the hon. Gentleman: my hon. Friend the Member for Aberconwy (Guto Bebb) has indeed done a great deal. If the hon. Gentleman wishes to write to me about the individual case that he mentioned, I will investigate it further.

[Nia Griffith (Llanelli) (Lab)]

Given that banks are still not doing enough to help entrepreneurs in Wales, does the Secretary of State support his right hon. Friend the Chancellor in his legal pursuit of the European Union to prevent it from capping bankers’ bonuses?

[Mr Jones]

The position on bankers’ bonuses is entirely clear. In respect of the banks in which the Government have a shareholding, my right hon. Friend the Prime Minister has already said that there will be no cash bonuses of more than £2,000 at RBS and Lloyds Banking Group, and that the Government will veto any proposals to increase overall pay—that is, pay and bonus bills—at RBS.

[John Howell (Henley) (Con)]

2. What recent assessment he has made of employment trends in Wales.

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[Ann Clwyd (Cynon Valley) (Lab)]

3. How many fitness to practise cases regulated by the Nursing and Midwifery Council in Wales are waiting to be resolved.

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

While the Government do not hold the information requested, the Nursing and Midwifery Council advises that there are currently 190 fitness to practise cases in Wales that are waiting to be resolved.

[Ann Clwyd]

The Health Select Committee drew attention last year to the fact that there were 400 unresolved cases going back over a two-year period. Will the Secretary of State tell us how many of those cases are in Wales and how long they have been waiting for resolution? Is it not unfair on patients in Wales that that matter is still hanging over those hospitals?

[Mr Jones]

I commend the right hon. Lady for her role in chairing the committee that came up with such an important report on the processing of complaints in the health service.

Although the issue of complaints about nurses and midwives must be one for the Nursing and Midwifery Council, we are clearly anxious to ensure that complaints should be properly investigated. That is why we were extremely pleased that the Welsh Minister for Health and Social Services has now instituted his own inquiry into this issue.

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

Does the Minister agree that people who have complaints about the NHS in Wales under the Labour Welsh Assembly Government are unable simply to cross the border and access the far better treatments, wider range of drugs and shorter waiting lists on offer to those fortunate enough to be served by the Conservative coalition Government in England?

[Mr Jones]

Clearly, the issue of access to cross-border services is a matter of concern both to patients and practitioners in Wales. The Wales Office is closely engaged on this matter with the Department of Health and with the Welsh Assembly Government.

[Jessica Morden (Newport East) (Lab)]

4. What discussions he has had with the Secretary of State for Justice on the Ministry of Justice’s shared services centre in Newport.

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[Michael Fabricant (Lichfield) (Con)]

5. If he will discuss with the First Minister the standards of education in Wales and of Welsh jobseekers in England; and if he will make a statement.

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

I am concerned that Wales risks being left behind in the employment market. All young people deserve an education system that provides them with the qualifications, skills and training needed to compete successfully in the global jobs market.

[Michael Fabricant]

You will know, Mr Speaker, that I served on the Committee that dealt with the Welsh Language Act 1993, that my mother is a Welsh language speaker and that I very much support bilingualism in Wales. However, does my right hon. Friend share my surprise that when I was debating the low standard of education in Wales with the Labour First Minister, he admitted that his Government took their “eye off the ball”? A whole generation of Welsh children was betrayed by the Labour Welsh Government.

[Mr Jones]

The First Minister clearly did take his eye off the ball. The recent programme for international student assessment—PISA—ratings show the extent to which the Welsh educational system is failing. That is because the Welsh Government are pursuing a course that does not mirror the improvements we are making in England, and I very much hope that the new Welsh Minister for Education and Skills will learn from the reforms we are implementing.

[Karen Lumley (Redditch) (Con)]

12. My two children were educated in Wrexham in their early years. Does the Secretary of State share my concern about the PISA league tables, which he mentioned? What discussions is he having with the Welsh Assembly Government to try to ensure the very best education for all our children in Wales?

[Mr Jones]

The Welsh Minister for Education and Skills has apologised for the failings of the Welsh Government, and that is a good start. However, they ought to examine the reforms we are implementing in England and give serious consideration to emulating them.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

6. What discussions he has had with Ministers in the Welsh Government on waiting times for mental health support for combat veterans in Wales compared with those in England.

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

It is essential that our veterans receive the best support and medical treatment, including mental health care, available to assist them to rebuild their lives.

[Simon Hart]

A military veteran living in Carmarthenshire has been told by NHS Wales that he has to wait up to eight months for urgent mental health treatment. The Veterans Association tells me that in parts of England the wait would be seven to 10 days. Will the Secretary of State sort out this problem on behalf of Welsh veterans?

[Mr Jones]

That is clearly a disturbing tale. The military covenant gives veterans the right to access to early health care. The sort of delays that my hon. Friend is referring to are quite unacceptable, and I invite him to write to me about the issue.

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

The generosity of Welsh people in donating to mental health charities for veterans is unsurpassed. However, there have been concerns in recent months about the regulation and oversight of some of those charities and of some of the treatments available. Will the Secretary of State meet me to discuss those concerns to ensure that every penny piece that is raised by people in Wales goes towards the very best treatment for our veterans?

[Mr Jones]

The hon. Gentleman raises an extremely important issue and I would be pleased to meet him to discuss it.

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

On Friday I met members of Swansea’s Combat Stress group, who told me that the nearest places for in-patient treatment were in Shropshire, Surrey or Scotland. Will the Secretary of State meet me and the Secretary of State for Defence, who is now in his seat, to talk about providing facilities for in-patient care for war veterans in St Athan and the idea of moving units coming out of Germany to St Athan in south Wales to provide much needed employment and economic stimulus?

[Mr Speaker]

Too long!

[Mr Jones]

I suggest that the hon. Gentleman attend the meeting that I have already agreed with the hon. Member for Ogmore (Huw Irranca-Davies).

[Guto Bebb (Aberconwy) (Con)]

7. What assessment he has made of the effects on Wales of the Government’s policy on superfast broadband roll-out.

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[Albert Owen (Ynys Môn) (Lab)]

9. What recent discussions he has had with his ministerial colleagues on the effects of VAT on the tourism and hospitality industry in Wales.

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

Tourism and hospitality play an important role in the economy in Wales, attracting more than 4 million people from across Great Britain between July and September last year. The World Economic Forum has recently ranked the UK fifth in Europe in its travel and tourism competitiveness index.

[Albert Owen]

Our near neighbours, the Republic of Ireland, and most other European countries have reduced the level of value added tax in the tourism sector, boosting jobs, growth and investment in their countries. The United Kingdom and Wales are among those with the highest rates of VAT in Europe, and, according to an independent inquiry, that has led to the suppression of jobs and investment. Will the Secretary of State lobby the Treasury to ensure that we have a competitive rate of VAT and that we reduce VAT, which is a tax on jobs?

[Mr Jones]

I am sure that the hon. Gentleman is as happy as I am that tourism expenditure in Wales increased by £746 million over the past year. The United Kingdom is highly competitive in the tourism market. As I said in my initial answer, the World Economic Forum has indicated that the UK is the fifth most competitive economy in Europe, ahead of France, Portugal and Italy.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

As in Scotland, VAT on tourism in Wales has a negative effect on the industry. Will he press his Treasury colleagues to ensure a reduction from 20% to 5%, as requested in yesterday’s debate in Westminster Hall, to benefit very scenic constituencies like mine and Carmarthen East and Dinefwr?

[Mr Jones]

I am hugely grateful to the hon. Gentleman for the interest he shows in the Welsh tourism industry. I invite him to visit Wales and see what a competitive product we have there.

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

11. How many people in Wales benefited from the recent reduction in the additional rate of income tax.

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

Approximately 4,000 people in Wales pay the additional rate of income tax.

[Susan Elan Jones]

I thank the Secretary of State for that brief response. In his maiden speech as a Member of the Welsh Assembly, the right hon. Gentleman said, “We have no tax-raising powers—long may that state of affairs continue.” As someone who supported the Assembly having tax-levying powers in the 1997 referendum, I find that view extraordinary. Surely the reason he now wants income tax to be devolved to Wales is to cut public services and cut taxes for the rich.

[Mr Jones]

Rather than concentrating on what I said in 2002, the hon. Lady ought to listen to what her hon. Friend the Member for Pontypridd (Owen Smith) said only last week. The Labour Government in Wales do not want income tax devolved to Wales, but the Conservative and Liberal Democrat coalition Government here in Westminster do.

[Julie Elliott (Sunderland Central) (Lab)]

13. What assessment he has made of changes in real wages in Wales since 2010; and if he will make a statement.