Oral Answers to Questions

David T C Davies Excerpts

Wednesday 25th May 2022 Commons Chamber

[Paul Holmes (Eastleigh) (Con)]

3. What steps his Department is taking to support the development of plans for at least one freeport in Wales.

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

The Wales Office has worked tirelessly to ensure there will be a freeport, which will deliver jobs and investment into Wales. As announced earlier this month, an agreement has now been reached between the UK and Welsh Governments to deliver that freeport, and this agreement will be backed by millions of pounds of Government funding.

[Paul Holmes]

I welcome the Government’s decision to have at least one freeport in Wales like the Solent freeport, which covers part of my constituency. Does my hon. Friend agree that, as well as bringing jobs and trade to Wales, it will bring mutual benefits to other freeports, it will be vibrant, and it is a stark reminder of why the Union between Wales and England is so important?

[David T. C. Davies]

I agree with both of those excellent points. We have already seen that the Thames freeport has suggested that there will be 21,000 jobs directly and indirectly created, so we know that the Welsh freeport will deliver jobs. I also agree that it is going to be good for the Union and good for Wales to have vessels of all kinds coming from all over the world, bringing their jobs and investment with them, including perhaps from across the Union—we may even look forward to seeing a few ferries from Scotland, if the SNP Government can actually get around to building them.

[Ruth Jones (Newport West) (Lab)]

5. What discussions he has had with Cabinet colleagues on potential fiscal steps to help tackle the impact of the rise in the cost of living on households in Newport West constituency.

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

My ministerial colleagues and I fully acknowledge that there is a cost of living challenge, which has been caused by a combination of the covid-19 pandemic and the war in Ukraine. That is why we are providing £22 billion for households across the UK to try to get through this crisis.

[Ruth Jones]

The people of Newport West are facing the harsh effects of this Government’s failure to tackle the cost of living crisis. My constituent Hettie contacted my office because she is a single mum of two and must choose between food and heating. Both her cooker and her hot water are gas, so as the prices rise so do her bills. She works, in her words, “Every hour possible”. She is scared for her and her children’s future, and she is not alone. Local people need to see real action. If Tory Ministers will not take any fiscal steps, will the Minister do what many people in Newport West want and back a windfall tax on oil and gas companies?

[David T. C. Davies]

Taxes are a matter for the Chancellor, but what I can say is that I absolutely acknowledge that there is a challenge at the moment, which has been brought about by the international situation. That is why the Government are putting £22 billion aside. It is why they have changed universal credit to help people such as the hon. Lady’s constituent who are out working, and why we have increased the minimum wage. It is why national insurance contributions are going to fall, we have extended the warm home discount and put in place a whole package of other measures. While we are spending money helping people get through the cost of living challenge, the Welsh Government are spending money buying up farms in mid-Wales and increasing the number of Senedd Members.

[Marco Longhi (Dudley North) (Con)]

6. What steps his Department is taking with Cabinet colleagues to help increase trade and foreign direct investment in Wales.

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

The Wales Office works closely with the Department for International Trade to promote the excellent opportunities that there are to invest in Wales. Wales is an attractive destination for foreign companies to come to, to invest in and to create jobs in, as we have seen with the continued support from companies such as Airbus, which only recently announced plans to increase wing production in Broughton.

[Marco Longhi]

As the trade envoy to Brazil, I see the huge economic growth opportunities for both the UK and Brazil in the post-Brexit and post-pandemic environment. Does my hon. Friend agree that, like Dudley North, Wales plays a huge part in UK plc and that therefore we want to see the Welsh dragon flying just as proudly as the Black Country flag?

[David T. C. Davies]

I am delighted to say that Wales has an excellent trading relationship with Brazil. In 2021, we exported nearly £85 million-worth of goods to the country, while importing £165 million-worth of goods. Wales has good trade and investment with countries across the world. We have seen 72 direct investments in the last financial year, with 1,500 jobs created. Only last week, the Secretary of State for Wales and I were with the Member for the Vale of Glamorgan looking at the new Aston Martin supercar factory in the Vale of Glamorgan.

[Chris Elmore (Ogmore) (Lab)]

7. What discussions he has had with Cabinet colleagues on support for Welsh farmers following the implementation of the UK’s free trade agreements with Australia and New Zealand.

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

The Secretary of State for Wales and I have regular discussions with ministerial colleagues on free trade arrangements. The Wales Office works closely with the Department for International Trade to ensure that Wales will enjoy the benefits that will flood in both directions from free trade deals with Australia and New Zealand.

[Chris Elmore]

The Government’s own impact assessment states that the Australia and New Zealand FTAs will see a reduction in gross value added in agriculture of more than £142 million. The measures are likely to have a disproportionate impact on Welsh agriculture because of its reliance on livestock and dairy farming. NFU Cymru is calling for Wales-specific impact assessments, so will the Minister ensure that they are delivered and that he starts working for Welsh farmers, rather than undercutting them and destroying the industry?

[David T. C. Davies]

I cannot really accept what the hon. Gentleman says. We were able to import lamb, beef and other kinds of food from Australia and New Zealand when we were members of the European Union. Both countries had an agreement that allowed them to export goods to us without paying tariffs, up to a certain quota, and the fact of the matter is that they never met that quota. It is a bit of a myth that there is cheap beef and lamb in Australia and New Zealand; anyone who wants to look at a website can see what people pay for those goods in Australian and New Zealand supermarkets. They have no plans to increase their flocks or herds. The trade deals that have been agreed are going to be good for farmers and for industry more widely throughout Wales.