Support for People and Businesses in Wales: Covid-19

David T C Davies Excerpts

Wednesday 21st October 2020 Westminster Hall

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

I am not quite sure how many minutes I have.

[Sir Edward Leigh (in the Chair)]

The debate has to finish at 4 pm, so you have plenty of time.

[David T. C. Davies]

Right. I thank the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) for his comments. He, like many others, including the hon. Members for Cardiff North (Anna McMorrin) and for Aberavon (Stephen Kinnock)—I think everyone did this, actually—mentioned the role played by public sector workers, including local authority workers, teachers and, of course, the police. I want to mention prison officers, because they always seem to get left out. I am not saying that they did any more or less than anyone else, but they have certainly taken risks and, sadly, in my constituency one member of the Prison Service died as a result of covid. I thank all hon. Members for an interesting and perceptive debate, and I will try to respond to as many of the points as I can.

I want to strike a note of unity by saying that covid-19 is the biggest challenge that we have faced for generations. We are tackling this pandemic head-on, and we seek to reduce the risk of transmission and the number of infections and deaths, while minimising the longer-term damage to the economy. I believe that the UK Government have shown clear leadership across the country in fighting the scourge of coronavirus. Every time the UK Government have implemented measures designed to curb the spread of covid-19, we have put in place provisions to support those who are affected, in Wales and right across the United Kingdom.

We started with an additional package of funding in the spring Budget to support the NHS and other public services. We followed that up with support for business through lockdown and beyond, including Government-backed loans, starting with the coronavirus business interruption loan scheme. To date, almost £400 million of UK Government-backed loans have been extended to firms in Wales under that scheme. The bounce back loan scheme, introduced for small and medium-sized enterprises, has supported over £1 billion-worth of loans in Wales. The furlough scheme kept workers in their jobs during lockdown, with the Government paying up to 80% of their usual wage. At its peak, the scheme supported more than 400,000 workers in Wales—around a quarter of the workforce.

The UK Government have pursued a generous approach, designed to work together with all devolved Administrations, and we have given the Welsh Government an up-front guarantee of an additional £4.4 billion of funding, over and above the normal block grant, to help them to deal with the scale and uncertainty of the disruption caused by coronavirus. Various Members, including the hon. Members for Merthyr Tydfil and Rhymney, for Cardiff South and Penarth (Stephen Doughty) and for Cardiff North—in fact, probably all the Opposition Members who spoke—praised the Labour Government. The hon. Member for Cardiff North seemed to use the words “Welsh Labour” in virtually every sentence, saying, “The Welsh Labour Government have delivered this; they’ve delivered that; and they’ve saved X number of jobs.” I am not denying for one moment that they have done those things, but they did them with the £4.4 billion and all the other money that has been provided to them to deal with this crisis.

It was right that the Welsh Government be given extra funding in order to deal with this crisis. It is perfectly reasonable to praise one’s own political party or Government—we all do that from time to time—but I was disappointed to hear the hon. Lady say that we must all try to work together and take politics out of this, and then not even to acknowledge that the Welsh Labour Government were able to deliver that help, which she spoke about in such grand terms, only because extra money was rightly given by the UK Government.

[Anna McMorrin]

Does the Minister not agree that the Government in Westminster have acted across the UK in a way that could be described as politicking, at best, and downright dangerous, at worst? He fails to realise that by not engaging with Wales, Scotland and the regions, he and his Government are leaving people desperate and dying.

[David T. C. Davies]

It is disappointing again that the hon. Lady uses the word “politicking” in one sentence and “dangerous” in the next, and then goes on to suggest that one Government’s approach is leaving people dying. If she wants to talk about poker games, she might want to look at what happened in Manchester, where a Labour local authority leader did everything possible to avoid locking down unless he could get some more money out of the Government. That is playing poker. That is politicking with people’s lives. The UK Government’s approach has been to try and avoid the narrow politicking. That is why you will not catch me saying that a policy that is being pursued by the Labour Government in Wales, even though it may be different from the UK Government’s policies, is causing people to die or causing danger. That is not a comment that I ever want to make.

[Anna McMorrin]

The Minister is picking on my speech, so I seem to have got under his skin. Can he point out the scientific evidence that the UK Government are following? It certainly is not the scientific evidence that we have seen from our scientific advisers across the country and, specifically, in Wales.

[David T. C. Davies]

It is not that the hon. Lady has got under my skin, but if she suggests that the UK Government are deliberately leaving people to die, that is something that I have to tackle. As far as the science goes, at the first Cobra meeting I attended—I have attended a few of them when the Secretary of State has not been available—I saw the Prime Minister ask the chief scientific adviser, “How can we save the maximum number of lives?” The UK Government’s whole approach has been about asking the scientists not, “What will be good for the economy?” but, “What will save lives?” The hon. Lady will be pleased to know that a member of the Welsh Government—I cannot remember if it was the Health Minister or the First Minister—was present at that meeting.

I will probably completely mess up my speech, now but I want to talk about co-operation. I have never seen such co-operation between the UK and the Welsh Governments. From the very start, Welsh Government Ministers have been invited along to every Cobra meeting and to the ministerial implementation group meetings, which are at the level below that, where a lot of decisions are also taken. We have had Welsh Government Ministers, SNP Ministers and Northern Irish Ministers there, all listening to the evidence and all taking part in the decision-making process. It is right that that was the case, because we wanted to approach the matter from a UK perspective.

At the same time, it occurred to the Secretary of State for Wales that it might be useful if he or I had some knowledge of what the Welsh Government proposed—not to take part in any decision-making process, but to have an idea of what was taking place. We wrote to the First Minister, pointing out that his Ministers rightly come to many UK-level ministerial meetings and asking if it would be possible for us to attend Welsh Government ministerial meetings—not to take any part in the decisions, and not necessarily even to say anything, but simply to listen and understand the process in Wales—but we received little response.

In the end, we were told that we could perhaps sit in on some of the meetings, but only for the moments where non-devolved matters were being discussed. I think we have had one invitation in the last six months. That is a disappointing lack of co-operation. It is extraordinary to me that anyone has the audacity, frankly, to suggest that the UK Government are not working hand in hand with the Welsh Government, when the UK Government have fallen over themselves to invite Welsh Ministers to these meetings.

[Anna McMorrin]

indicated dissent.

[David T. C. Davies]

The hon. Lady shakes her head, but it is a matter of record that Welsh Government Ministers attend Cobra and ministerial implementation group meetings.

[Fay Jones]

The Minister is being generous with his time. Is it not the case that people in Wales are tired of this back and forth, and of people playing politics with who has been invited to what meeting? The Opposition’s accusation that we are not working closely is completely false. In actual fact, they do not like it when we disagree. They cannot cope with that, so they say that we are not working together. That is not working together; it is just disagreement.

[David T. C. Davies]

My hon. Friend makes an important point. [Interruption.] Allow me to give way to the hon. Member for Cardiff South and Penarth.

[Stephen Doughty]

I want to take the Minister back to a specific point. There has been co-operation on a number of issues—I mentioned the steel industry, and that was a good example of close working between the Minister, his fellow Ministers and Welsh Government Ministers with one of my key local businesses and with me—but I do not think it has been consistent throughout. It was not helpful that the Prime Minister did not even speak to the First Minister for many months, even if there was co-operation at other levels.

I want to ask the Minister this question specifically: why can the Chancellor not start the job support scheme that little bit earlier to coincide with the Welsh Government’s decision on a local lockdown? That would make things a lot easier for businesses.

[David T. C. Davies]

rose—

[Fay Jones]

On a point of order, Sir Edward. The hon. Member for Cardiff North (Anna McMorrin), from a sedentary position, has just called me a liar. I ask that that comment be retracted. It is beneath her.

--- Later in debate ---

[Sir Edward Leigh (in the Chair)]

I think we have had enough debate. Let us all be nice and polite to each other. Everybody here is honourable. Everybody has their own position to make. Nobody is a liar, and nobody has said that anybody is a liar.

[David T. C. Davies]

On the point made that was made by the hon. Member for Cardiff South and Penarth, a telephone conversation took place last week between the First Minister and the Chancellor of the Exchequer; I am afraid that I cannot find the relevant part of my speech, but I know that that phone call happened. During that discussion, the First Minister indicated that he would bring forward this lockdown and indicated the date that it would start, and he asked for the financial support that the hon. Gentleman refers to. He was told very clearly that the Chancellor’s new scheme would apply on a certain date, and the Chancellor implored the First Minister not to bring in the lockdown on the dates proposed. The point is that the Chancellor and the First Minister had that discussion and knew each other’s position. The First Minister still decided to go forward with that lockdown, and therefore it is the First Minister’s responsibility to come forward with the proposals to support affected businesses in Wales.

I suppose there is one thing that we all agree on: a lockdown has an enormous impact on business. There is absolutely no doubt about that. It will cause people to lose their jobs and businesses to close—it will leave people worse off. We all agree on that, which is why we are arguing, to some extent, over how much money we can find to support those businesses. If we all accept that, we need to be careful before we introduce lockdowns.

The hon. Member for Cardiff North mentioned the science. The Government are following the science of people such as the deputy chief medical officer, Jonathan Van-Tam, who said—today, I think, or certainly earlier this week—that local lockdowns are working and are likely to be effective. The World Health Organisation said that lockdowns can be effective but should be used as a last resort. The Government have to take account of the fact that although a lockdown can temporarily suppress the number of people going into hospital, it will also have the impact that we all know about on people’s jobs and livelihoods.

In the long term, the inability to diagnose patients with things such as cancer will ultimately have an impact on lives. I was talking recently to a senior, established dentist in south Wales, who told me about the number of referrals each year for oral cancer, which are first discovered by dentists. Because so many dentists are now not operating, or are not operating the same service, fewer people are going to see the dentist. Therefore, fewer people are being referred for oral cancer consultations, and at some point in the future a number of people will lose their lives because of an undiagnosed form of cancer. That is absolutely inevitable; it is just not going to generate a headline.

A responsible Government must take account not only of what is going on here and now in the NHS with covid, but of what will happen in the longer term when people lose their jobs, or when they are not diagnosed as early as they should be for diseases such as cancer. It is a very difficult tightrope to walk. I do not envy anyone in the Department of Health or in No. 10, and I do not envy Mr Gething or Mr Drakeford; they both have a very difficult job to do and I do not doubt that they are doing their utmost. I certainly am not going to play politics or suggest that, because they are taking a slightly different course of action from that of the UK Government, they are doing something dangerous. However, we have a right to question what all of the Governments are doing.

[Gerald Jones]

As a Union of four nations, it is sensible to have that four-nation approach where possible, but clearly the virus is taking different directions in different parts of the country and there is a need to have that local—devolved or regional—response to things. Whether it is the Mayor of Greater Manchester or the First Minister of Wales, they are clearly in touch at a grassroots level with what is going on in their area. Does the Minister agree that in those circumstances, it is disappointing to hear the example that we have heard about today of the lack of contact between the Prime Minister and the First Minister, which at one stage meant there was something like three months or so without any contact between them whatsoever?

[David T. C. Davies]

I do not accept that last point, because the First Minister would have been able to speak to the Prime Minister anyway, had he wanted to, and Welsh Government Ministers were dealing with UK Government Ministers on an almost daily basis. I would go as far as to say that, because at a lower level I was involved in the ministerial implementation groups, and I know that during lockdown they were taking place multiple times every week—I will not quite say every single day, but it felt like it. Every day, Ministers from each of the devolved regions were taking part in the decision-making process. I therefore cannot accept at all the argument that there was a lack of contact.

I am told that there were attempts by No. 10 to talk to the First Minister and that he cancelled one meeting, but I do not know the full ins and outs of that. However, I am absolutely certain that the First Minister would always have had access to the Prime Minister had he needed it, and he certainly has always had access to the Secretary of State for Wales. I know that they are talking on an almost weekly basis. It is inconceivable that the Secretary of State for Wales would not take a call from the First Minister; in fact, I am sure that has never happened.

The hon. Member for Merthyr Tydfil and Rhymney made the interesting point that it makes sense to have a regional approach, because the virus is breaking out in different ways across the United Kingdom; that is a fair comment. Of course, the same can be said within Wales. There are areas of Wales where the outbreak of the virus is far lower than in other parts of the United Kingdom. Therefore, he may feel that he needs to justify to a tea shop owner in Tenby why there is now a full lockdown taking place in half-term, at a time when that shopkeeper or that tea shop owner would have been hopeful of recouping some of the money that has been lost over the last six months.

I am conscious that the hon. Member for Islwyn (Chris Evans) must respond to the debate. By the way, he made an excellent speech. I am grateful for the comments he made and I am looking forward to the Henry VII trail that will take place. Of course, by the time Henry VII made that famous march across Wales towards Bosworth, we had already seen the hard border disappear; from the time of Owain Glyndŵr onwards, we have not had a hard border in Wales. Yet, as a result of decisions that are being made at the moment, I fear that it will come back again, which is not something that I, as a Unionist, wish to see.

For as long as this virus continues, the UK Government will want to support all parts of the United Kingdom, and if other Governments or local authorities in other parts of the United Kingdom want to take credit for the enormous help that has been offered, that is absolutely fine by me. I can assure hon. Ladies and Gentlemen here today that we do not want to play politics with this situation; we simply want to eradicate this virus and then get back on with the job of rebuilding Britain.