Oral Answers to Questions

David Jones Excerpts

Wednesday 9th July 2014 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

1. What assessment he has made of the effects on the economy in Wales of fiscal measures taken by the Chancellor of the Exchequer since May 2010.

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

We have announced significant measures to boost growth and support hard-working families. We have cut corporation tax, abolished national insurance contributions for the under-21s and by next April 155,000 people in Wales will have been taken out of income tax altogether.

[Mr Hollobone]

Given that the Chancellor’s decision to cut Britain’s corporation tax rate to the lowest in the G7 is one of the major reasons for Britain’s economic recovery, will my right hon. Friend reject the advice from the shadow Secretary of State that

“reducing headline corporation tax rates does not work”?

[Mr Jones]

My hon. Friend is entirely right. Government analyses have shown that high corporate taxes have a negative impact on investment, jobs and growth, and that is why we are reducing the rate to 20% from next April, the joint lowest rate in the G20. The hon. Member for Pontypridd (Owen Smith) would appear to be at odds with the shadow Chancellor, who has committed himself to low rates of corporate taxation.

[Mr David Hanson (Delyn) (Lab)]

Will the Secretary of State confirm that just 14,000 people have benefited from the tax cut to taxpayers on the highest rate, at an average of £40,000 each, at a time when 75,000 people in Wales are on zero-hours contracts? Does he think that is fair?

[Mr Jones]

By increasing the income tax threshold, we are taking increasing numbers out of income tax altogether. As I said in my substantive answer, by next April 155,000 people in Wales will be out of income tax. I would have hoped that the right hon. Gentleman welcomed that.

[Nia Griffith (Llanelli) (Lab)]

Actions speak louder than words. The real answer to the question was provided by the Secretary of State at the weekend, when he was the only member of the Cabinet who volunteered, as many Opposition Members have done, at a local food bank. Was that because he now agrees with us that food banks have become a vital bulwark against the impact of his Government’s fiscal policies in Wales?

[Mr Jones]

I am proud to have assisted those at the Ruthin food bank over the weekend—I spent four hours with them; they are doing essential work—but, frankly, rather than turning this issue into a political football, I would have thought that the hon. Lady would be far better off supporting the work of the Trussell Trust.

[Bob Blackman (Harrow East) (Con)]

2. What recent discussions he has had with his ministerial colleagues and others on devolving fiscal responsibility to the Welsh Government.

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

I have regular discussions with ministerial colleagues on the Wales Bill, which devolves a significant package of tax and borrowing powers to the National Assembly and Welsh Ministers. The Bill completed its passage through this House on 24 June, and it will have its Second Reading in the Lords next Wednesday.

[Bob Blackman]

Being in the position to set tax rates and collect taxes will clearly bring a new-found fiscal responsibility, but does my right hon. Friend agree that the people of Wales should take that as an encouragement to vote in a Government in Wales who will look after their best interests?

[Mr Jones]

I certainly agree with that, and I also believe that it is essential, once the competence is in place, for the Welsh Government to call an early referendum on tax-varying powers to maximise the benefit we are creating through the measures in the Bill.

[Mr Peter Hain (Neath) (Lab)]

Is it not the case that people in Wales would be buying a pig in a poke if income tax were devolved without a proper floor being put underneath the Barnett formula? The failure to address that issue has resulted in Wales being short-changed, so if income tax were devolved without the Barnett formula being addressed, it would be a bad outcome for Wales.

[Mr Jones]

I fear that the right hon. Gentleman has overlooked the arrangements that we put in place with the Welsh Government in October 2012, which ensure that if there is any danger of convergence, then the issue will be resolved. I believe that we should all be ambitious for Wales, and we should indeed be looking for a lower rate of income tax in Wales to give Wales the competitive advantage that it needs.

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

Is it the policy of the coalition parties fully to devolve income tax powers to Scotland, and if so, why does the Wales Bill still include a tax-sharing arrangement in relation to income tax powers, with the lockstep measure for safe measure? Why are the Tories treating Wales like a second-class nation?

[Mr Jones]

We have made it clear that the Scottish powers would kick in only after the next general election and they will, of course, have to be the subject of a manifesto commitment. However, Wales is not Scotland. We believe that the arrangements that we are putting in place are right for Wales. I would have hoped that the hon. Gentleman would support them.

[Owen Smith (Pontypridd) (Lab)]

On devolution, in the last hour there has been an extremely important ruling by the Supreme Court. It found in favour of the Labour Welsh Government in their attempt to preserve an Agricultural Wages Board for Wales and to protect low-paid farm workers in Wales. Will the Secretary of State take this opportunity to apologise for wasting court time and money on seeking unlawfully to get rid of an Agricultural Wages Board for Wales, and will he commend the Welsh Government on their actions?

[Mr Jones]

The hon. Gentleman is entirely right that the Supreme Court delivered a judgment this morning. We are still considering the consequences of that. Where a procedure exists and there is an issue of doubt, it is entirely right that we should go to the Supreme Court to have the position clarified, and the position has been clarified.

[Owen Smith]

The Secretary of State is trying to present this as a score draw. To be clear, he has lost 2-0. This is the second time he has referred Welsh legislation to the Supreme Court and the second time he has lost. This time he was trying to stop the Welsh Government trying to protect agricultural wages in Wales. I ask him again: will he apologise for wasting time? Will he agree with me that his interference and this ruling show that we definitely need Labour’s proposal of a reserved powers model for the Assembly in Wales?

[Mr Jones]

I do not apologise for taking into account the devolution settlement and seeking clarity where it is necessary. To repeat, we are considering the ramifications of the judgment and will come back to the House in due course.

[Alison McGovern (Wirral South) (Lab)]

3. If he will estimate the average change in disposable income for families in Wales since May 2010.

--- Later in debate ---

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

10. What recent discussions he has had with ministerial colleagues and Ministers of the Welsh Government on health care provision in Wales and the English borders.

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

The Wales Office continues to engage regularly with the Department of Health and the Welsh Government to discuss health care provision in Wales and along the border. Our focus is on ensuring that everyone, regardless of where they live, has access to high-quality health services that meet their needs.

[Mel Stride]

Given that the NHS in Wales has had its budget cut by 8%, that waiting times are longer than in England and that it has missed its accident and emergency targets since 2009, does my right hon. Friend agree that the NHS is far from safe in the Opposition’s hands?

[Mr Jones]

That is manifestly clear. While spending on the NHS has increased by £12.7 billion in England, it has been subjected to a cut of 8% by the Welsh Government. As my hon. Friend says, the consequence is that the health service in Wales is not safe in Labour’s hands.

[Stephen Mosley]

A constituent of mine living in Chester but registered with a GP in Wales would have to wait up to 52 weeks for a hip operation. If that same constituent were registered with a GP in England, they would have to wait 18 weeks. Does my right hon. Friend think that is fair?

[Mr Jones]

I do not, and of course people living on either side of the border are entitled to comparable standards of care. I am concerned that long waiting times in Wales are affecting not only Welsh patients but, as my hon. Friend said, those in England.

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

You really would not think the Secretary of State was the son of a north Walian chemist from listening to his answers.

Regardless of which side of the border people live on, obesity is a ticking time bomb in this country. Why do the UK Government not have cross-border talks with the Welsh Government to do something on the issue, rather than constantly talking Wales down? When will they deal with the serious issues?

[Mr Jones]

I am glad to say that when my father was practising, we did not have the type of devolved health care that we are experiencing in Wales at the moment.

The hon. Lady is entirely right—it is necessary that discussions should take place, and they are taking place. I urge her to urge her friends in the Assembly to engage positively with the United Kingdom Government.

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

Will the Secretary of State acknowledge that there is a clear relationship between levels of poverty and demand for health care? With 75,000 people in Wales now on zero-hours contracts and a higher number of people in poverty being in work than out of work, is it not time that he got a fair share for Wales by getting the £300 million by which we are under-supported by the Barnett formula and the capital investment needed to deliver the proper health service that we all need and demand in Wales?

[Mr Jones]

If the Labour party recognises the links between poverty and poor health, it is surprising that the Welsh Labour Government have cut health spending by 8%.

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

At the moment, patients from Radnorshire and east Breconshire have to travel to Cheltenham for radiotherapy, which is a long and stressful journey at a time when they are particularly unwell. A radiotherapy facility called the Macmillan Renton unit will soon open at Hereford hospital, and it will be an excellent facility for Herefordshire and Powys. Does the Secretary of State agree that that is an example of cross-border health care at its best?

[Mr Jones]

It is indeed, and it also illustrates the extent to which border communities such as those that my hon. Friend represents rely on health care provided in England—all the more reason for proper protocols to be put in place to ensure that that health care is adequate.

[David Mowat (Warrington South) (Con)]

5. What the time scale is for the construction of a new nuclear power station at Wylfa.

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

Subject to final investment decisions, construction is expected to begin in late 2019. However, initial ground works have already begun and indications are that Wylfa Newydd remains on course to begin operating in the mid-2020s.

[David Mowat]

The Secretary of State may be aware that Wylfa will generate 10 times as much carbon-free electricity as is currently generated by every offshore and onshore wind farm in Wales. Does he agree that it is vital that we make progress on that project?

[Mr Jones]

I agree entirely, and that is why the generic design assessment for Wylfa Newydd is proceeding apace. We need an energy mix, and we need to ensure that fewer carbon emissions are produced. A mixture of nuclear and wind power will achieve that.

[Albert Owen (Ynys Môn) (Lab)]

As someone who has supported new nuclear build in Wales since my arrival in the House in 2001, and this project since its inception in 2008-09, will the Secretary of State join me in stating that the priority now must be to get the skill base and supply chain right, so that we have the jobs and high-quality skills that we deserve in north-west Wales? That means the UK Government working with the Welsh Government, local governments and stakeholders. Will the right hon. Gentleman agree to meet me to form a framework for that to happen?

[Mr Jones]

I am happy to commend the efforts the hon. Gentleman has made, and I entirely agree that the new build at Wylfa offers exciting prospects for the supply chain and for education. I am particularly impressed with the work that Coleg Menai is putting in, and I am more than happy to meet the hon. Gentleman at some future date.

[Hywel Williams (Arfon) (PC)]

There is universal opposition across north Wales to building more pylons to carry the electricity, whether from Wylfa Newydd or wind production—that extends to the point made by the hon. Member for Ynys Môn (Albert Owen) and others. Will the Secretary of State guarantee that proper and full consideration will be given to under-sea methods of transmission of electricity from any new sources?

[Mr Jones]

Of course, the difficulty with nuclear generation is that it requires the infrastructure to get it to the markets. I agree with the hon. Gentleman that some concern has been expressed about this issue, and where possible underground cabling has distinct advantages. No final decisions have been made, and National Grid is carrying out further environmental and technical assessments.

[Guto Bebb (Aberconwy) (Con)]

6. What assessment he has made of the progress of the broadband roll-out programme and the effects of that programme on the tourism industry in Wales.

--- Later in debate ---

[Ian Lucas (Wrexham) (Lab)]

7. What steps the Government is taking to improve infrastructure connectivity between north Wales and England.

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

As part of our long-term economic plan, we are currently investing in infrastructure at unprecedented levels. Last week, we announced £10 million of investment to upgrade the Halton curve, renewing north Wales’s direct link with Liverpool and improving connectivity across the north-west of England.

[Ian Lucas]

On Friday, I will visit Rossett to see the investment of £44 million by the Welsh Government in the dualling of the Wrexham-Chester line, which was made a single line by the Tories in the 1980s. I welcome the investment announced by the Chancellor last week, but will the Secretary of State tell us when that will happen and when the Halton curve work will be done?

[Mr Jones]

It is clearly intended to proceed as quickly as possible. Connectivity between Wrexham and Merseyside is extremely important. I welcome, of course, the belated investment by the Welsh Government, but there is more to be done, and I think the hon. Gentleman and I are agreed on the need to look at electrification further north.

[Stuart Andrew (Pudsey) (Con)]

The funding of the northern hub in full and the many other transport announcements are incredibly welcome, and show an investment in the north’s transport infrastructure that was barely evident under the previous Government. Having taken four hours to get from Wrexham to Leeds, however, I would like the Secretary of State to make sure that north Wales will enjoy the benefits of that record investment.

[Mr Jones]

The Halton curve is, of course, important in that it connects north Wales with the city of Liverpool, which is the most important economic centre in the region. My hon. Friend is also right that we need to make sure that connectivity is improved across the whole of the north of England.

[Andrew Selous (South West Bedfordshire) (Con)]

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