Welsh Affairs

David T C Davies Excerpts

Thursday 5th March 2015 Commons Chamber

[Mr David Jones (Clwyd West) (Con)]

May I say what a great privilege it is for me to follow the right hon. Member for Torfaen (Paul Murphy), who has been such an outstanding Member of the House? I am sure I speak on behalf of all the Members present when I say that we all wish him a very happy retirement, although I half suspect that we may be seeing a bit more of him in the years to come.

The right hon. Member for Dwyfor Meirionnydd (Mr Llwyd), too, will be leaving this House after a distinguished career. He and I have known each other for a very long time—longer than either of us would care to mention—since we were both practising law in the magistrates courts of north Wales. I wish him, too, a very happy retirement.

I thank my hon. Friend the Member for Montgomeryshire (Glyn Davies) for his opening speech and the Backbench Business Committee for agreeing to this debate. It is an important debate, which we should have every year because it is, as the right hon. Member for Torfaen points out, extremely important that the unique issues that concern the people of Wales should be ventilated in this Chamber.

We are in the final weeks of this Parliament and this debate is as useful an opportunity as any for us all to take stock. In constitutional terms, Wales has seen great changes, some of which were initiated by my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan), who gave strong and sterling service as Secretary of State. But there are more changes to come, which were announced by my right hon. Friend the Prime Minister in Cardiff last week. These will be matters for the next Parliament and we will all have our views as to the course that those changes should take, but this is a useful opportunity to consider what has happened over the past five years.

In 2010 the incoming coalition faced the worst set of economic circumstances that any incoming Government had faced since, possibly, the 1930s. The country was still reeling from the crash of 2008 which, although a global catastrophe, was more keenly felt in Britain than perhaps in any other country in the developed world because Britain was carrying the worst structural deficit of any major country, largely as a consequence of what I would term the economic mismanagement of the Labour Government. The coalition Government therefore, in which I had the privilege to serve for more than four years, had difficult decisions to take. We are constantly criticised for what are styled as cuts by the Opposition, but cuts were essential. It is the easiest thing in the world for any Government not to take the difficult decisions. We took those difficult decisions.

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

Does my right hon. Friend agree that one of the biggest cuts that we have made is in the amount of interest that we are paying the banks on the increasing amount of money that we were previously borrowing, and that that is one cut we should be making?

--- Later in debate ---

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

I, too, thank hon. Members for securing the debate. It might not be obligatory, but I hope that we are setting a precedent of having a St David’s day debate that will be repeated annually.

Let me also pay tribute to the right hon. Members for Torfaen (Paul Murphy) and for Dwyfor Meirionnydd (Mr Llwyd). Although I have disagreed with them on many occasions about many things, as the right hon. Member for Torfaen says, we can also agree on many things. Both said much that I could agree with in their speeches. It has been a pleasure to have served in this House with them both and on a personal level many of us will miss them greatly. I wish them well.

It has also been a pleasure to serve as Chair of the Select Committee on Welsh Affairs. I was counting it up and I have served on seven Select Committees, or their equivalents, both here and in the Welsh Assembly. The Welsh Affairs Committee is rather lucky, because it can have an examination or inquiry into anything. Anything that affects Wales can be considered by the Committee and everything affects Wales, so we have pretty well considered everything that one could imagine.

The one thing on which we have always been able to agree is the topicality of those inquiries. We have looked into agriculture, broadband, industry and tourism and, by and large, we have been able to make recommendations that my right hon. Friend the Secretary of State and my hon. Friend the Minister, to whom I also pay tribute, as well as their predecessors, have taken seriously. I want to mention one or two and to inject a few personal thoughts, as well.

For example, we have considered broadband, which has been a particular issue in many areas and for many people in Monmouthshire. Without going into great detail about what is in the report, I want British Telecom to come out and say which areas will get broadband in the short term and which will not. We know that many areas will, frankly, never be reached by high broadband speeds and it is important that people in those areas know that they are there. That will allow them to go off and make use of other technologies such as satellites. The trouble I see at the moment is that far too often BT effectively tells people to hang on a couple of months, or another year or so, and they will be connected up to fibre, but it never quite seems to happen. We need more openness and transparency on that issue.

We considered the importance of a proper funding settlement for S4C. I am glad that that seems to be working out and that there seems to be consensus.

[Albert Owen]

The hon. Gentleman mentions the work that his Committee has done, but on broadband there is a plan in Wales, which is run jointly between the Welsh Government, BT and the European Union, which have funded it. That has enabled my area to be the first rural area to have the roll-out, along with Blaenau Gwent. There is a structure; it might not be reaching parts of Monmouth at the moment, but it is reaching parts of Anglesey.

[David T. C. Davies]

Perhaps the hon. Gentleman’s relationship with BT is better than mine. I do not know, but there are certainly parts of Wales that broadband is not reaching and Monmouthshire is among them.

[Alun Cairns]

I remind my hon. Friend and the hon. Member for Ynys Môn (Albert Owen) that the scheme the hon. Gentleman talks about includes significant taxpayers’ money from the UK Government, as well—that is, £70 million. A higher level of funding comes from the UK Government through the UK taxpayer than from the Welsh Government in that process.

[David T. C. Davies]

There we have it. There is money aplenty going in to it from the Welsh Assembly, the British taxpayers and the European Union, but it is still not getting to Monmouthshire. Perhaps we should return to that point. I appreciate the co-operation between members of the Committee. People outside the Committee could perhaps take a lesson on it. I do not want to be too critical of anyone on this Thursday afternoon, but it was interesting that we found in one of our inquiries that there was not quite the co-operation between International Business Wales and UK Trade & Investment that one would like. When the First Minister, or indeed my right hon. Friend the Secretary of State for Wales, goes off to sell Wales, they should go as part of a joint trade mission so that we can show investors from the far east or elsewhere that the Welsh Assembly and the national Government are speaking with one voice on the importance of inward investment. Whether politicans are Labour, Conservative, Liberal Democrat, Plaid Cymru or from some other party, in the Assembly or Parliament, we all agree on the importance of getting investment into Wales.

[Stephen Crabb]

The Chairman of the Select Committee is making an important point about inward investment. It is worth putting it on the record that last year saw the highest level of inward investment in Wales for almost 25 years. The crucial point, which I think is what he is implying, is that almost all the inward investment projects were secured with the backing and support of UKTI. So collaboration between the Welsh Government and UKTI is vital.

[David T. C. Davies]

I accept that. I am trying not to be too critical of members of other parties. I simply make the point that co-operation is important not only in business but in tourism. I was surprised to learn that VisitBritain and Visit Wales do not have that many discussions with each other. I believe that the Welsh tourism Minister has not met senior people in VisitBritain and vice versa. That is disappointing, frankly, because they all have an interest in making sure that when tourists come to London they are told that the Principality of Wales is only two hours away by train and are encouraged to come and have a look at it.

One of the most topical issues that the Committee has looked at and that I suspect whoever chairs the Committee after the election will want to have another look at is the Severn bridge. The money to be returned to Severn River Crossing will have been paid by 2017. At that point the Government, whoever they are, will have to make a decision on whether to carry on using SRC or some other private company to collect the tolls or to bring the bridge back into public ownership.

[Paul Flynn (Newport West) (Lab)]

Nationalise it.

[David T. C. Davies]

I am not normally known as a supporter of nationalisation, but if the bridge is run by a public body—the Government or the Welsh Assembly—the VAT of 20% will no longer be payable. That would be a 20% cut in the tolls overnight. On that basis, I think that I am willing to set aside decades of Conservative thought and call for the nationalisation of the Severn bridge. It would be of enormous benefit to everyone who uses it, including many of my constituents. Furthermore, my Committee looked at the current level of the tolls and we calculated—it was a little bit of a back-of-an-envelope calculation, but no one has yet contradicted it—that the tolls could be set at about one third of the current levels, and that that would be enough to maintain the bridge. No one has ever denied that, and I would be interested to see if anyone can.

Clearly, it is expensive to maintain the bridge. I have been down there and been shown by the engineers how it moves around the whole time. Both bridges are extraordinary structures based at the estuary with the second highest tide in the world. I do not realistically believe that we will ever get rid of the tolls completely, but it would be utterly wrong for the Treasury to use the tolls as some kind of milch cow. The people of Wales and south-west England deserve better than that. The tolls should be drastically cut on top of the cut that should come about as a result of the removal of VAT.

I have discussed this with the Department for Transport, which said, “But we had to spend extra money on the old bridge.” That is true, and it has given me the figures for that. But it is also true that other changes to taxes—VAT, which I have mentioned, and the industrial buildings tax—meant that the Treasury got something of a windfall as well, albeit one that it was not expecting. That windfall, I believe, exceeds the amount of money that was spent on the old bridge. So it is time for a fairer deal for Wales on this issue. I invite my right hon. Friend the Secretary of State and my hon. Friend the Minister—I very much hope they are in their jobs after the election—to think about some sort of plan for what we will do post-2017, when the issue will have to be faced by us.

Members of the Committee, whoever they may be after the election, may want to look also at the proposed new M4 relief road. I appreciate that transport affects all of Wales, and north Wales transport links are just as important. Obviously, I know a little bit more about this one, which has greater relevance to my constituency, but it is an all-Wales issue, because the Welsh Assembly is planning to use its new borrowing powers to pay for that route. There is a great big argument going on now about whether it should do that. I put my cards on the table: I am not particularly sympathetic to the environmental arguments being put forward, because many of the people putting forward those arguments would put them forward whatever. They are opposed to any kind of development whatsoever, anywhere. Whether it is houses, roads or anything at all, there are people out there who simply do not like development. I find myself, unusually and perhaps for the first time ever, on the same side as the Welsh Assembly’s Minister for Economy, Science and Transport. That is probably a shock to us both.

Two other issues have been mentioned today which the Committee will clearly want to look at—energy and where we are heading with devolution. On devolution, with the utmost respect, I beg to differ from my hon. Friend the Member for Montgomeryshire (Glyn Davies). I am very concerned about what has been happening over the past 15 or 16 years. Every couple of years the Welsh Assembly asks for extra powers, and some sort of committee is set up or somebody is sent off on a roadshow somewhere to hold meetings in village halls at which only a few people turn up, then they come back and write a long report recommending that all sorts of extra powers be given to the Welsh Assembly. Not surprisingly, whoever is in government thinks, “Let’s keep them quiet and give them the extra powers.” On and on it goes, and no thought has been given to where this is going to end.

Scotland always seems to be a few jumps ahead and has now, in effect, got home rule. Northern Ireland has another set of powers and a structure which is rather difficult to understand, but which is obviously shaped to try and keep the peace over there. All these bodies look around at what the others have got, and they will always find something that one lot has which they do not have, and they will say, “It’s not fair. We are being treated unfairly. Why have the Scots got this and we haven’t?” Nobody is looking at what has happened—or rather, what has not happened—in England.

I share the instinctive Unionism of the right hon. Member for Torfaen, but I see the solution as lying in some kind of federal settlement, English Parliament or English votes on English laws, because a failure to address this problem now will mean ever more powers leeching away to Scotland and Wales. Probably in the next 15 or 20 years, but maybe even sooner, there will be another referendum in Scotland. I would not be at all surprised if in my lifetime the Scots voted for independence. Wales will be constantly looking at it, and people will say, “They’ve got it. They can do it. Why can’t we have it? Why can’t we do it as well?”

I genuinely fear that in my lifetime Wales could become an independent nation. There may be some who want to see that happen. I personally do not, and the only way that I think we could stop that is to lock everything into place, possibly through some kind of federal solution, perhaps with a federal parliament overseeing defence, taxation and foreign affairs, but making certain that nobody can go beyond the line. There is no line in the sand at present and we have to draw one, even if that means giving a few extra powers to the Welsh Assembly. If at some point we can say, “There you are. That is it. You can’t have any more because nobody else would be able to have anything more either”, we might be able to lock things up and ensure that there is no further move towards complete independence for Scotland, Wales and Northern Ireland.

I was interested to hear the right hon. Member for Torfaen say that he had researched what is done in other nations around the world. I think that we need to look at other nations that have a tradition of British law, such as Canada or perhaps South Africa, and those that do not. I do not think that any country has ever embarked on a process of giving away powers in such an ad hoc fashion. We need to start thinking very carefully and seriously about how we can all agree on a way to prevent devolution leading to fragmentation and the break-up of the Union.

Finally, I want to talk about energy, which the Welsh Affairs Committee takes very seriously. We have looked at issues such as shale gas, but I think that we should also look at nuclear and renewables. The shadow Secretary of State has decried my so-called flat-earth speech. I am sceptical about a lot of what is said about global warming, but I think that many of us agree that taxing carbon and increasing energy prices in a way that hits manufacturing industries in Wales, including some very notable ones, might lead them to consider closing down and taking their business elsewhere, which is something none of us wants to see. We therefore need to think very carefully about any energy policy that will make it harder for our manufacturing industries.

I have very much enjoyed carrying out my role as Chair of the Welsh Affairs Committee and working with hon. Members, on both side of the House. I thoroughly agree with the sentiment expressed here that we need to continue having a Secretary of State dedicated to Wales and—dare I say it?—a robust Select Committee that ensures that whoever has that post is doing a good job.

[Paul Flynn (Newport West) (Lab)]

The message I have heard is one of optimism. I might have to disappoint the hon. Member for Monmouth (David T. C. Davies), whom I thought was about to apply to be the Labour candidate in his constituency, because we already have a splendid candidate there. I welcome his epiphany in calling for nationalisation. I am sure that he will be calling for the nationalisation of the top 50 companies next, on his continuing journey to the far left, which I have watched for some time, having known him since he was a schoolboy.

There is so much that is great going on. One of the joys of having been born when I was is rejoicing in the Welsh history that I have lived through. I remember the depressing history of the campaign for hunan-lywodraeth i Gymru through organisations such as Undeb Cymru Fydd and how it collapsed on 16 January 1896 at a meeting in Newport of the two federations of the Liberal party, which of course was almighty at that time. Lloyd George was not allowed to speak, because they were terrified of his persuasive oratory. A Liberal Member for Merthyr stuffed the meeting with people opposed to independence for Wales. We could well have gone down a very different path. The result was that Lloyd George lost enthusiasm and went to campaign against the Boer war.

The story of Wales throughout the 18th, 19th and 20th centuries was one of people going to Westminster, having made all kinds of promises about how they would serve Wales, only to disappoint after being seduced by this place. It is a matter of great pride that I have been in this building when we delivered. My generation has delivered in Wales, and I believe that will eventually lead to strong government, if not independence. We are in a situation in which the forces are moving beyond our control. It will not be little agreements that do it; it will be the force of what happens in Scotland at the general election. Consider the extraordinary change in Ireland when the Queen turned up in a green frock and went to Croke park to bow her head in penitence at the site of an atrocity there. That had a profound effect on Irish thinking. Of course, 200 years of antagonism did not disappear, but it certainly had a great effect. I believe we will see a pattern based on the federation of five nations—not within 10 years, but possibly in 20 to 25 years—and we will have an asymmetric form of devolution that will be appropriate for each one.

I am proud of what is happening in my own city. We have gone through a few rough years, but there is room for great optimism. Our problems are temporary and we can deal with them, but our great treasures and strengths are permanent and will remain, including the mixed character of the people, which is made up of many nations and has a special vigour and enthusiasm and a robust personality. We also have great institutions, including the Celtic Manor. Even though the Prime Minister cannot see the difference between Newport and Newport far west, which is sometimes called Cardiff—he mixed them up yesterday—we have a wonderful hinterland, including the glorious Roman treasures in Caerleon, which represent great strength and beauty in the city. The future is bright.

We have a chance to celebrate our Cymreictod. What a change there has been! In 1962, Saunders Lewis, in his great lecture, “Tynged yr Iaith”, talked about a time in this century when no one would speak Welsh, and Islwyn Ffowc Elis’s book, “Wythnos yng Nghymru Fydd”, was similarly about the death of the Welsh language. But it has not died—it is in vigorous form. A couple of months ago I had the great joy of visiting Ysgol Gwynllyw and talking with the fluent sixth-formers about all the political problems of our day in great detail. It is possible to go to any school in Newport and have a conversation with pupils in simple Welsh at the very least. That is a great triumph. The first school that taught through the medium of Welsh in Newport had 12 pupils in 1970 and they are now 50 years old, and we will see very soon the opening of a secondary school in Newport.

[David T. C. Davies]

I think that school was Clytha primary, which I attended. At that time, the problem was that there was a separate Welsh unit and not much interaction between the two, but I think that has also changed for the better and is supported by Members on both sides of the House.

[Paul Flynn]

Yes, it was St John’s, the old school on the other side of the river, which became part of Clytha primary.

The school was set up in the teeth of all kinds of very powerful opposition, but some of those first pupils who are now 50 years old are now teachers of Welsh themselves in other schools. We are seeing the great triumph of the Welsh language and the great strength that it has now. That is very moving and we should celebrate it. Whenever people ask, “What’s special about the Welsh language?”, I point to its beauty. On Radio 4 last Saturday, somebody who teaches it in Brighton talked about the cadence of the language. Listen to the magic of the words, the soft, seductive words:

“Nant y Mynydd groyw loyw, Yn ymdroelli tua’r pant, Rhwng y brwyn yn sisial ganu; O na bawn i fel y nant!”

The language is also muscular:

“Argoed, Argoed y mannau dirgel, Ble’r oedd dy fryniau, dy hafanu dyfnion, Dy drofau tywyll, dy drefi tawel?”