Oral Answers to Questions

David T C Davies Excerpts

Wednesday 17th November 2021 Commons Chamber

[Alun Cairns (Vale of Glamorgan) (Con)]

3. What recent discussions he has had with the Welsh Government on the progress of the delivery of projects funded by the levelling-up fund in Wales.

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

The UK Government are fully focused on levelling up the whole of the United Kingdom, through programmes such as the levelling-up fund. We are working closely and directly with local authorities and other local partners right across the UK to ensure that those are delivered quickly and successfully.

[Alun Cairns]

Is the Minister aware that Barry in my constituency and the whole of the Vale of Glamorgan did not qualify for European funds? Does he therefore accept that the levelling-up fund is a potential game changer for the Vale of Glamorgan? May I draw his attention to the excellent proposal for a marina for Barry, which would also recover some land to make available for appropriate development? May I also ask him to pay particular attention when this application comes in?

[David T. C. Davies]

My right hon. Friend has long been a doughty champion of this scheme, as he has of many other schemes, including the seven UK community renewal fund projects that are going to be delivered in the Vale of Glamorgan and are worth more than £1 million. I simply say to him that we would encourage as many good-quality bids as possible from the Vale of Glamorgan and other local authorities in Wales.

[Anna McMorrin (Cardiff North) (Lab)]

On climate action, the UK must step up to provide the funding that is needed across the whole of Wales. Despite the lack of the funding that we would have seen from the EU, the Welsh Labour Government are already delivering on renewable energy and sustainable transport and achieving the third best recycling rates in the world. Will the Secretary of State tell us what discussions he is having with his Welsh Government counterparts to discuss more climate investment?

[David T. C. Davies]

I am delighted to answer that, because in addition to all the many programmes that my right hon. Friend the Secretary of State has mentioned—the UK community renewal fund, the shared prosperity fund and the levelling-up fund—we also have the growth deals, which are delivering the very kinds of environmental projects to which the hon. Lady has just referred. Of course the growth deals are funded 50% by the UK Government and 50% by the Welsh Government, who will be receiving an extra £2.5 billion next year as a result of the most generous settlement they have ever had.

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

There is tremendous enthusiasm for the levelling-up fund in both Denbighshire and Conwy, where the local authorities are champing at the bit to put in their bids. So will my hon. Friend please indicate when the second round is likely to open?

[David T. C. Davies]

I can indeed: it will be in the spring of next year. We look forward to receiving bids from my right hon. Friend’s local authority and local authorities throughout the rest of Wales.

[Alex Davies-Jones (Pontypridd) (Lab)]

5. What recent discussions he has had with the First Minister of Wales on the safety of coal tips in Wales.

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

Last month, my right hon. Friend the Secretary of State for Wales and the First Minister of Wales co-chaired the coal tip safety summit, to receive an update from the joint taskforce. The taskforce has co-ordinated work to identify and categorise tips in Wales and has undertaken inspections of all the highest-risk tips, providing reassurance to the communities that live nearby.

[Alex Davies-Jones]

Just a few weeks ago, my hon. Friend and constituency neighbour the Member for Rhondda (Chris Bryant) asked the Prime Minister for support for coal tip repairs throughout our local authority area; in response, the Prime Minister said:

“This is something that I do want to try to fix”—[Official Report, 3 November 2021; Vol. 702, c. 923.]

and promised to talk to the Welsh Government. Will the Minister provide an update on those conversations? Is the plan for support being put in place, or is it just more empty words?

[David T. C. Davies]

I am not yet responsible for the Prime Minister’s diary, but I know that he welcomes engagement with the First Minister at every opportunity. With respect to the hon. Lady, coal tip safety is a devolved issue and the Welsh Labour Government do not seem to welcome our involvement in devolved issues. Of course, we have provided the Welsh Government with £2.5 billion of extra funding, so they have the powers and the money to deal with the issue. We urge them to get on and deal with it.

[Alex Davies-Jones]

On a point of order, Mr Speaker.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Wales’s dangerous coal tips loom over our industrial communities like spectres from our industrial past and remind us of how our natural resources were exploited, mostly for the benefit of others. Climate change is set to compound the risk posed by coal tips, and we expect rainfall to increase by around 6% over the next 30 years. This month, the COP26 President said it was vital

“that we help at risk communities adapt to the impact of”

climate change. How is the Minister’s refusal to settle the £600 million bill consistent with that statement?

[David T. C. Davies]

Included in the £2.5 billion of extra funding that will be given to the Welsh Government this year is an allocation of money precisely to deal with the sort of problems to which the right hon. Lady refers. She has often said that the UK Government should not get involved in devolved issues; this is a devolved issue, but we have provided the money for the Welsh Government to deal with it. If there are dangerous coal tips, the Welsh Government have the money and must get on and solve the problem.[Official Report, 22 November 2021, Vol. 704, c. 2MC.]

[Liz Saville Roberts]

As the hon. Gentleman well knows, it is an inherited issue. Our industrial communities still bear the scars of the scorched-earth policy inflicted by Prime Minister Thatcher. The green transition must be different.

Last week, the Crown Estate revealed that it is planning to build new wind farms off the coast of Wales. The profits will disappear into Treasury coffers rather than going to the people and businesses of Wales. Will the Minister support my private Member’s Bill, which would ensure that all Crown Estate profits made in Wales are invested in Wales?

[David T. C. Davies]

In one breath, the right hon. Lady criticises Margaret Thatcher for closing down coalmines; in the next breath, she says that we must not have coalmines because they are bad for climate change. She will forgive me if I feel there is a certain inconsistency there, but I will look with interest at whatever Bill she has introduced.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

6. What steps the Government are taking to encourage electric vehicle usage in Wales.

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

The UK Government are committed to supporting electric vehicle usage in Wales, as well as across the rest of the UK, which is why we have introduced a ban on the sale of all new petrol and diesel cars from 2030 and introduced the on-street residential charge point scheme.

[John Lamont]

I welcome the rapid change to electric vehicles but am sure the Minister will agree that we must not let rural areas fall behind. This is an issue for Wales, but it also affects all parts of these islands, including my constituency in the Scottish Borders. What are the Government doing to support the installation of more rapid chargers in rural areas to encourage more people to make the switch to electric vehicles?

[David T. C. Davies]

My hon. Friend will be aware that the UK Government recently granted £187,000 from the UK community renewal fund to help the project in his constituency to provide electric vehicle charging points across the Scottish Borders. The UK Government will continue to support the installation of electric charge points through various schemes, including the £2.5 billion that has been committed to plug-in vehicle grants and charging infrastructure programmes.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

7. What steps the Government have taken to tackle the impact of rising energy costs on industry and businesses in Wales.

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

The Government have provided £2 billion to help businesses with electricity costs and to protect jobs in recent years. We also have various schemes in place—including the £315 million industrial energy transformation fund—to support businesses with high energy use, including those in Wales, to cut their bills and reduce their carbon emissions.

[Mr Dhesi]

Seventy per cent. of small and medium-sized enterprises believe that high energy costs will negatively affect the growth of their companies. We know that businesses will already be hammered by this Tory Government’s national insurance hike, so what are the Secretary of State for Wales and his ministerial colleagues doing to help support Welsh and other UK businesses to overcome their energy cost problems, to provide much- needed stability, to help them plan ahead, and to deliver the growth that our economy so badly needs?

[David T. C. Davies]

I am sorry that we cannot persuade members of the Labour party to support a small increase in taxes to protect the national health service, but that is a matter to which we can return.

The UK Government recognise that, as we transition from energy sources such as coal and gas, there will be a cost challenge, which is why we have committed to minimising energy costs for businesses through, for example, the £470 million that has been given in relief to energy-intensive industries through a combination of compensation and exemption.

[Theresa Villiers (Chipping Barnet) (Con)]

Will my hon. Friend ensure that the efforts that the Government are rightly making to decarbonise electricity generation do not unfairly disadvantage high energy industries, because if they do, we will be exporting carbon emissions, not reducing them?

[David T. C. Davies]

My right hon. Friend is exactly right. The Government recognise that potential issue, which is why, for example, £470 million has been provided to high energy users through a combination of compensation and exemption. It is a very real problem to which she refers, and one that is recognised and being dealt with by the Government.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

High energy costs act as a disincentive for investment from international steel and other manufacturing companies and other investors, with the UK seen as a less favourable investment environment than other countries. Other countries with less dramatic price rises are putting in prompt measures to proactively support their industries, so why are this Government so slow to act? Can the Minister outline what discussions he is having with colleagues across Government to follow similar interventions to support the steel and manufacturing industries in Wales?

[David T. C. Davies]

My right hon. Friend the Secretary of State and I have had, and will continue to have, a range of discussions with colleagues in other ministerial Departments as to how we resolve this problem, but the hon. Gentleman will surely recognise that we are making a revolutionary transition from high carbon emitting sources, such as coal and gas, towards renewable energy, such as wind, solar, and possibly nuclear, and that they do come with costs. They are more expensive. Members across the House will recognise the need to make that transition. The Government are leading that transition, and we are also putting in place schemes to support those who may face challenges as a result.

--- Later in debate ---

[Simon Baynes (Clwyd South) (Con)]

10. What assessment the Government have made of the potential outcomes of the £121 million levelling-up fund allocated to Wales.

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

Wales will benefit significantly from the levelling-up fund, with projects focused on delivering jobs, promoting growth and levelling up communities. In Denbighshire and Wrexham, including in my hon. Friend’s constituency of Clwyd South, communities will benefit from over £16.4 million in UK Government investment through round 1 of the levelling-up fund and the community renewal fund.

[Simon Baynes]

How would the Minister assess the long-term economic, social and cultural impact of, and benefits arising from, the levelling-up fund in Wales, particularly our Clwyd South bid, which he has mentioned, which will send a great deal of badly needed investment into the world heritage site at the Trevor basin, projects in Llangollen and Chirk, and a steam railway in and around Corwen?

[David T. C. Davies]

The successful levelling-up fund bid at the Pontcysyllte aqueduct and the canal world heritage centre will obviously maximise tourism in the area and provide significant long-term economic benefits to my hon. Friend’s constituency. However, it is just one small part of a much larger programme including the £121 million levelling-up fund, the £46 million community renewal fund and £2.5 billion extra money in a record block grant for the Welsh Labour Government, showing that this Government are committed to strengthening the Union, supporting Wales, and ensuring that jobs and prosperity flow to all parts of the United Kingdom.

[Chris Bryant (Rhondda) (Lab)]

One of the problems that we have in the Rhondda is a large number of disused former coal tips, one of which, as the Minister knows, slid down into the river last year. It cost us £14 million to rectify that, and we have another five similar tips in the Rhondda. Can we please have some more money to ensure that we do not have another Aberfan disaster?

[David T. C. Davies]

The hon. Gentleman will be aware that, as I said earlier, this is a devolved matter. He will also be aware that more than £2.5 billion of extra money has been provided to the Welsh Labour Government. If there are dangerous coal tips in the hon. Gentleman’s constituency, I urge him to talk to his colleagues in Welsh Labour, ask them to provide the money and get the problem resolved as quickly as possible.

[Selaine Saxby (North Devon) (Con)]

12. What recent discussions he has had with the First Minister of Wales on improving transport infrastructure in Wales.