Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

David T C Davies Excerpts
Wednesday 19th May 2021

(3 years, 7 months ago)

Commons Chamber
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Alex Davies-Jones Portrait Alex Davies-Jones (Pontypridd) (Lab)
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What recent discussions he has had with the Chancellor of the Exchequer on financial support for people in Wales affected by the covid-19 outbreak.

David T C Davies Portrait The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
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In the last year, the Government have provided £7.4 billion of additional support through the welfare system for people affected by covid-19, including the £20 a week increase in universal credit. I have regular discussions with my right hon. Friend the Chancellor of the Exchequer about financial support for Wales, and I was able to personally congratulate him a few weeks ago on the outstanding Budget that he delivered for Wales and the UK.

Alex Davies-Jones Portrait Alex Davies-Jones
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But more than a year has now passed since ExcludedUK was first mentioned in this place and still nothing has been done to support the millions of people across the UK who have seen their livelihoods decimated by the pandemic and who have not received a penny of support from this UK Government. The Secretary of State and the Minister mentions that they have met the Chancellor, but what representations have they made to him on behalf of Welsh people who have been excluded from support by his Government?

David T C Davies Portrait David T. C. Davies
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In addition to the £7.4 billion of additional support through the welfare system, the UK Government provided the Welsh Government with an extra £8.6 billion-worth of support, and the Welsh Government were free to use that in any way they wished. They were free to give it out to local authorities and allow them to make grants to anyone who had been badly affected, so we completely acknowledge that people have suffered as a result of the pandemic. That is why there was £8.6 billion of support for the Welsh Government, why Welsh businesses received £2.75 billion of support and why we supported 466,000 Welsh workers through the furlough scheme.

Nia Griffith Portrait Nia Griffith (Llanelli) (Lab)
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Families across Wales will have appreciated the recent easing of covid restrictions, made possible, of course, by First Minister Mark Drakeford’s cautious, evidence-driven approach, but rising concerns about new variants of coronavirus remind us that the pandemic has not gone away. The vast majority of people want to play their part to keep us all safe, but the UK Government’s failure to increase statutory sick pay is forcing many on low incomes to choose between going to work to support their families or staying at home to keep us safe. What pressure can the Minister bring to bear on the Chancellor to put that right?

David T C Davies Portrait David T. C. Davies
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I am sure that the hon. Lady would acknowledge that Mr Drakeford has been able to work very closely with the UK Government because he has been present at all the Cobra meetings and Welsh Government Ministers have been present at all the ministerial implementation group meetings, very much as part of a joint approach towards tackling the pandemic. The Chancellor and Prime Minister have always been clear that people will suffer as a result of the pandemic. We have not been able to help everyone, but we have, as I said, provided an extra £8.6 billion for the Welsh Government, £2.75 billion for Welsh businesses and supported 466,000 Welsh workers on furlough—plus the mortgage holidays, the cuts in VAT and the cuts in business rates. In Wales alone, we have already created 5,000 extra jobs through the kickstart scheme.

Nia Griffith Portrait Nia Griffith
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On a different matter, without delving into the chaos of this Government’s foreign travel policy, the reality for many airlines is that this summer will be nowhere near a return to normal. The whole aviation sector faces irreparable harm. We have already seen Welsh jobs lost in the sector and Aerospace Wales has warned that thousands more are on the line. What sector-specific financial support will the Government provide to the aviation industry in Wales to get it through yet another difficult summer and ensure that it has a strong future?

David T C Davies Portrait David T. C. Davies
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I very much welcome the hon. Lady’s support for the airline industry. Her stated view that we should get people back on to planes and flying around as much as possibly is in stark contrast to the extreme environmental view, which some people in her party seem to take, that nobody should ever get on a plane.

I can assure the hon. Lady that we meet the airline industry regularly; I spoke to the aerospace trade body about 10 days ago and met Airbus online a few days ago. We have not taken up sector-specific support, because the UK Government believe that we should be able to go out there and help all businesses that have been affected by the pandemic. That is why we have already put down £2.7 billion for Welsh businesses, which I hope she will welcome.

Ben Lake Portrait Ben Lake (Ceredigion) (PC)
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Research by the Centre for Progressive Policy has shown that UK Government covid emergency support was, on average, £1,000 more generous to London residents than to those in Wales, and that the UK Government spent nearly £7 billion more on London than if each nation and region of the UK had been allocated the same emergency spending per resident. What explanation has the Minister been given by his Cabinet colleagues for that discrepancy?

David T C Davies Portrait David T. C. Davies
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The fact of the matter is that the money has gone to those in need in all parts of the United Kingdom. I have already mentioned the £8.75 billion extra that went to the Welsh Government, the £2.7 billion for Welsh businesses and the 466,000 Welsh workers who were supported through the furlough scheme—to be honest, I really welcome these questions, because they give me an opportunity to spell out the huge support that the Government have delivered for Wales. UK-wide, the UK Government have spent £280 billion supporting people across the whole United Kingdom. With the greatest respect to the hon. Gentleman, I do not think that an independent Wales would have been able to manage that level of support.

Lord Spellar Portrait John Spellar (Warley) (Lab)
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What discussions he has had with the Welsh Government on encouraging the purchasing of British made goods through public sector contracts.

David T C Davies Portrait The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
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Last week’s Queen’s Speech announced legislation on procurement that will increase flexibility for contracting authorities and reduce bureaucracy, which will simplify procurement in the public sector and help support British businesses. I very much hope that the Welsh Government will join us in further supporting Welsh companies.

Lord Spellar Portrait John Spellar
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The Minister will be aware that the Department for Transport is spending billions on its programme to decarbonise transport, but it does not seem so interested in building our green manufacturing capacity. Does he share my concern at recent reports of Welsh councils buying green buses not from British firms, but from China? Will he hold urgent discussions with councils, Government and the Transport Secretary in London to demand that taxpayer-funded green subsidies support British industry and British jobs?

David T C Davies Portrait David T. C. Davies
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I am absolutely delighted that the right hon. Gentleman recognises that this Government are spending billions of pounds on supporting green industries; he is absolutely right. I do not know which specific councils he means, but I know that Newport City Council, a Labour council, recently bought some electric buses; I have no idea where from, but if he has a problem with how the council is conducting procurement, perhaps he would like to discuss it with some of his Labour colleagues. He will certainly know that we have to abide by the World Trade Organisation treaty agreement. I do not suppose that he is advising me to break our international treaty obligations, but if he is, I look forward to hearing more about it.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
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What assessment he has made of the effect of the outcome of the 2021 Senedd election on the strength of the Union.

David T C Davies Portrait The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
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The results of the recent elections clearly show that a majority of voters in Wales—and in Scotland, actually—voted for pro-Unionist parties. It is clear that voters in Wales want the freedom to study, work, live and travel freely between England and Wales without a border.

Edward Leigh Portrait Sir Edward Leigh
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Does my hon. Friend agree that, following the elections, and apart from evident self-interest, the Union is ever stronger because of abundant common interest?

David T C Davies Portrait David T. C. Davies
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My right hon. Friend has been in this House for many years and has a great deal of wisdom. He makes an important point. We are united by a shared love of the Union, our United Kingdom and the firm belief that we are stronger together than apart—[Interruption.]

Lindsay Hoyle Portrait Mr Speaker
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Order. If somebody wants to do a little tapping, there is room outside for that.

Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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What recent discussions he has had with the Welsh Government on the adequacy of the fiscal settlement.

David T C Davies Portrait The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
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This fiscal settlement delivers for Wales. This year, the Welsh Government will receive almost £19 billion of block grant funding, which is £1 billion more than was agreed with the Welsh Labour Government as being a fair settlement for Wales.

Deidre Brock Portrait Deidre Brock [V]
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The fiscal settlement will not matter all that much if the possible trade deal with Australia goes through with a zero-tariff regime, which would cause serious difficulties for Welsh and, indeed, Scottish farmers. What compensation for those farmers is being built into the fiscal settlement, should this latest gung-ho trade deal scupper their livelihoods?

David T C Davies Portrait David T. C. Davies
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No trade deal has been signed yet, but yesterday I was on a call with National Farmers Union representatives, who said that they welcomed the principle of a trade deal. They have a few concerns about some of the details, and we will continue our discussions with the NFU and with farmers. But I am surprised at the hon. Lady, who I think was in favour of having a free trade deal with the European Union. Why would she not want to have a free trade deal with a country with which we all—and she and I personally—have very close links indeed?

John Howell Portrait John Howell (Henley) (Con)
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If he will make an assessment of the effect of the outcome of the 2021 Senedd election on the economy in Wales.