All 5 Debates between David T C Davies and Paul Flynn

Welsh Affairs

Debate between David T C Davies and Paul Flynn
Thursday 2nd March 2017

(7 years, 2 months ago)

Commons Chamber
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David T C Davies Portrait David T. C. Davies
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The first lesson is that nobody should be able to make £13 million on a project before it has even been built. Secondly, this whole thing is an outrage. People are being sold a pipe dream. Politicians who support it are being taken out for lunch, and those who ask difficult questions are being threatened with legal action by a group of expensive City lawyers. Some £9 million of taxpayers’ money has been wasted. The only infrastructure we have seen so far has been the £35,000-worth of work done to Mr Carrick’s mansion in Grantchester, and the only sports car in evidence is the Aston Martin that he drives around in. It is time to pull this project.

Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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Is the hon. Gentleman aware that the Wales Audit Office is looking into the affairs of that company? Has he contributed his valuable information to the WAO?

David T C Davies Portrait David T. C. Davies
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I am grateful to the hon. Gentleman. Yes, I have contributed quite a bit to the Wales Audit Office, and I am looking forward with great anticipation to the result. It is time to pull the plug on this scheme. If the Welsh Government want to put £200 million of our money at risk, there are better ways of doing it and better people to be doing it with.

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Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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In the spirit of brotherly and sisterly love that characterises this debate, I will advance my main career task of adding to the glittering career of the Secretary of State for Wales. He had the good sense to marry into a family who live in my constituency, which shows that he is a man of ambition.

I urge the Secretary of State to challenge his Cabinet, who seem to use Wales as a kind of Aunt Sally for making comparisons. He could advance his career by promoting some of the great achievements of Wales, and particularly of the Welsh Government. He could start with the Welsh Government’s Bill that introduced presumed consent for organ donation, which has already saved lives and proven to be advantageous. There is a Bill to that effect before this House, and I urge him to persuade the Cabinet of the advantages of introducing the same system in England.

I want to ask the Secretary of State about one of the other great successes of the Welsh Assembly, which was buying Cardiff airport for the bargain price of £52 million. That was derided by some of his friends in Wales, but since the airport was bought it has paid more than £52 million in air passenger duty back to the Government. The hon. Member for Winchester (Steve Brine), who is next to the Secretary of State, took a great deal of time in our debate on the Wales Bill and seemed to give more support to Bristol airport than to Cardiff airport. I say to him that Cardiff airport is another shining success.

In a Select Committee, I reminded the Secretary of State that he was born four years after Wales started paying double tax on the national road system and the Severn bridge tolls, and asked whether his ambition was to ensure that those tolls continued until he retired. That is the way that it is going. By next year, however, the bridge will be all paid for.

I asked the Secretary of State how the toll of £3.70 that he proposed at the time was 50% of £6.70. He and his officials went back to the Wales Office and recalculated, and the next figure I saw was £3. Recently, a question was asked here about how the £3 was calculated. The strange answer was that that was something equivalent to the Humber bridge. We are happy for it to be treated in the same way as the Humber bridge, where £150 million of debt was wiped off. That would give us 10 years at least. Now, the only justification for the tolls is that they are a cash cow, and the Government and the Treasury refuse to give them up.

When the Severn bridge was first opened, Harri Webb wrote a poem:

“Two lands at last connected

Across the waters wide,

And all the tolls collected

On the English side.”

If the ghost of Harri Webb is still about, he might write something along these lines:

“Now all the tolls are collected

The debt is paid in full

But Tory snake oil salesmen

Still rob us with their bull.”

The hon. Member for Monmouth (David T. C. Davies) made several interesting observations, and I would like to know how they will be followed up.

David T C Davies Portrait David T. C. Davies
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Fifty per cent. is better than nothing, and does the hon. Gentleman agree that Mr Webb might have written:

“The Secretary of State

We think no less of him

Because 50%

Is better than dim”—

as they say in Welsh?

Paul Flynn Portrait Paul Flynn
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There is a delightful picture, which I have produced with pride on my website, of the hon. Gentleman, the Secretary of State for Transport and the Secretary of State for Wales—a trio of snake oil salesmen—lined up against the background of the bridge, saying “Well, it used to be £6.70. Now, we’re going to make it £3.70.”; “No, we’re not—it’s £3”; and “We’ll charge you each way, so it’s £1.50”. These are the techniques of the fairground.

The charge should be nothing because we have already paid the bill. How many Members were in the House for the Severn Bridges Bill in 1992, when we were told by Wyn Roberts, “This is the end of it”? We have already paid £1 billion of public money. We pay our taxes for every road within the British Isles—we have to pay our share of that—and, in addition, we pay this extra tax to get into Wales. It is a barrier to Welsh life and it should go. I am looking forward to hearing how Ministers came up with the idea of charging £3. There is no justification for it. The largest element of it will actually go on collecting the tolls themselves. This is a totally unfair tax on Wales.

I am sure that the Secretary of State will announce, in under an hour’s time, that this is over and that he will now crusade on the issue and build himself up as the new symbolic or legendary figure of Welsh life, so that when he lays down his political role and joins the choir invisible he can discuss with Harri Webb his verses on the Severn bridge and contemplate the opportunities he has had in life, such as the ones I am sure he will take up after today.

Wales Bill

Debate between David T C Davies and Paul Flynn
Tuesday 14th June 2016

(7 years, 11 months ago)

Commons Chamber
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David T C Davies Portrait David T. C. Davies
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This certainly came through rather late in the day, and I think we made it clear in our report that we were disappointed that we did not have enough time to scrutinise the issue, but I suppose that it is now done with. I am here not to defend the Government but to scrutinise them, and I am very happy to do so.

Paul Flynn Portrait Paul Flynn
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Does the hon. Gentleman think that the evidence of the momentum of Welsh opinion is enough for us to forgo the joys of another referendum? Only 11% were in favour of Welsh devolution in 1979, but 64% were in 2011. Is that not evidence enough that the public will certainly favour the development and growth of the Welsh Assembly’s powers?

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Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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Congratulations to the Government on the improvements to what was an ugly draft Bill. We have before us a Bill that will be a genuine step forward in devolution.

I was taken by the speech made by my hon. Friend the Member for Ynys Môn (Albert Owen), who talked about Welsh people seeing themselves not as victims but as visionaries. Absolutely right—we can go forward on a confident note, but not by having referendums. The whole system of our democracy is in peril at the moment, partly because of the debasement of political discourse, which is the worst it has been for a couple of centuries. The worst example was in the referendum on the alternative vote. Here was an opportunity for an advance in the quality of our democracy, but it was not argued in that way. As I came in every morning at Vauxhall Cross, anti-AV campaigners were telling people that those who voted for AV were the sort of people who believed in seeing babies die in hospitals and our brave soldiers die in Afghanistan. That seemed a rather extraordinary argument, but it was the one put forward by those opposed to AV. It was based on the idea that AV would cost money—a tiny amount of money, really, because democracy is expensive—and that the first thing the Government would do would be to cut the protection of our soldiers in Afghanistan and the money provided to baby units in hospitals. It was an outrageous lie, but that is currently the quality of parliamentary debate.

David T C Davies Portrait David T. C. Davies
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Would the hon. Gentleman therefore like to dissociate himself from suggestions that voting for independence from the European Union would lead to world war three and the collapse of western civilisation?

Paul Flynn Portrait Paul Flynn
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If the hon. Gentleman reads his local paper, he will find that I did precisely that the other day—it was next to a column by him, so I thought he might have had the grace to read my column, even if he did not read his. I thought it was rather better written, although I am slightly biased. I made the point in that article that I am embarrassed by the lies of people on my side, just as I treat with contempt the lies of people on the other side. That is the choice facing the public—whose lies they will vote for next week.

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Paul Flynn Portrait Paul Flynn
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The hon. Gentleman is absolutely right. As my hon. Friend the Member for Ynys Môn said, let us not think of ourselves as victims—an obsession with a sense of victimhood is debilitating—but as people going forward as victors. That is how we should be going.

David T C Davies Portrait David T. C. Davies
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Just to take the hon. Gentleman back a little and pick up one point, the Welsh language is being treated with a good measure of respect here. It is used regularly at the Welsh Affairs Committee. I would have liked it to be used in the last Welsh Grand Committee, and I am sure we will get there in the end, with cross-party support.

Paul Flynn Portrait Paul Flynn
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At business questions last week that was emphatically turned down by the Leader of the House. I hope that we can have a sensible discussion on that. It has been a huge success in the Welsh Assembly itself, where the language is used quite freely and in a very relaxed way. That is greatly to the benefit of Wales.

My main point about the Bill is about the level set in clause 36, which will act as a great restriction on Wales’s progress in using the greatest source of power that we have. It has long been neglected, yet it is like our North sea oil—it is that great cliff of water that comes up the Bristol channel twice a day. It is a source of immense power. It is entirely predictable, unlike wind or solar power—we know when it is going to happen—and it can be tapped in so many ways.

To our credit, we have already used that source in hydropower. But under the scheme in the Bill, even the hydropower station at Ffestiniog would be too big for the Welsh Assembly to authorise, at 360 MW. The one at Rheidol would have been fine, but Dinorwig would be too big at 1,800 MW. Those stations are a wonderful way of using that power. They are entirely demand responsive. The excess electricity can be used in off-peak hours to pump the water up to certain levels and then bring it back down again.

The greatest chance Wales has to produce power that is entirely non-carbon is through using the tides. Where would we be under the restriction in the Bill? The Swansea bay lagoon would be just within the 350 MW limit. But the Newport lagoons—both start at the River Usk, then one runs in the direction of Cardiff and one the other way—are both 1,800 MW. They have enormous potential. The resource is there, and the topography is perfect.

Welsh Affairs

Debate between David T C Davies and Paul Flynn
Thursday 5th March 2015

(9 years, 2 months ago)

Commons Chamber
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David T C Davies Portrait David T. C. Davies
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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.

David T C Davies Portrait David T. C. Davies
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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 Portrait Paul Flynn (Newport West) (Lab)
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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 Portrait David T. C. Davies
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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 Portrait Paul Flynn
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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?”

Wales Bill

Debate between David T C Davies and Paul Flynn
Tuesday 6th May 2014

(10 years ago)

Commons Chamber
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Paul Flynn Portrait Paul Flynn
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What is entirely novel in the debate on health, which I have never experienced in my 28 years in this House, is for Wales and the Welsh health service to be used as a political football to kick around to save the skins of Tory MPs and fulfil the ambitions of Lynton Crosby. He is the one who is using the issue not to make legitimate complaints—it is right that hon. Members raise legitimate complaints, as they always have—but for something entirely fresh. At every Prime Minister’s questions, when the attention of the whole nation is on this place, questions are distributed to Welsh Tory MPs, and to non-Welsh MPs who do not know the places they are talking about, that criticise the Welsh health service and create the impression that it is a poor, second-class service. This is a malicious deception: it is not true.

There is a lot wrong with the health service in every part of these islands. There are weaknesses and everyone can provide examples of particular cases, but what is the effect when the impression is given, week after week, example after example, that the Welsh health service is rubbish? What does that do to someone waiting for an operation or treatment to be told, again and again, that the service they are getting is second class? A big part of the healing process is confidence. If confidence is destroyed, that damages the health of the nation on a very deep level. What happens to the people working in the health service who do marvellous but thankless jobs—the jobs we turn up our noses at—when they come home and watch the television at night? There is a hallelujah chorus of Tory MPs saying that the service is bad, not good.

David T C Davies Portrait David T. C. Davies
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Will the hon. Gentleman give way?

Paul Flynn Portrait Paul Flynn
- Hansard - - - Excerpts

I will not give way. I will speak for only a very short time.

At the Conservative party conference in Wales, the Secretary of State for Wales, Assembly Members, the Secretary of State for Health and the Prime Minister lined up to talk about one subject: undermining the Welsh health service. It is, rightly, called the war on Wales. The damage that that does is enormous, and it is done to the whole reputation of Wales. That is not just happening in Wales; it is happening throughout the United Kingdom. This is how the Tories believe they are going to claw their way back to power, but I have news for them. There are now two Tory parties in Wales: the Joneses and the Farageists. The people will have a choice of which bit of bigotry they want to vote for next time. That will cut the reactionary vote in Wales in half and very few Welsh Tory MPs will be back here. When the Prime Minister says, from his lofty position, that there is a line between life and death at Offa’s Dyke, it will not be forgotten and it will never be forgiven.

Inward Investment (Wales)

Debate between David T C Davies and Paul Flynn
Thursday 29th November 2012

(11 years, 5 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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David T C Davies Portrait David T. C. Davies (Monmouth) (Con)
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I am absolutely delighted to have the opportunity, which comes around once every couple of years, to speak as Chair of the Select Committee on Welsh Affairs about an issue that we think is particularly important. Today, that subject is inward investment in Wales and the Welsh economy.

The timing of this debate is a little unfortunate. As hon. Members will know, the Leveson report is being released at this very moment, so I apologise to Lord Leveson if we keep him off tomorrow’s front pages. I accept that some Members will have even more interest in Leveson than in the Welsh Affairs Committee, so I will try to keep my speech as brief as possible to be fair to those who also find that issue of interest.

When we published our report on inward investment in Wales in February, I think that I can fairly say that it was well received and comprehensive. We took evidence from a range of witnesses in business, as well as economists and politicians. We met Ministers from the UK Government and shadow Ministers from the Welsh Assembly Government. We would, of course, have liked to meet Ministers from the Welsh Assembly Government, but the Minister with responsibility for this area did not see fit to appear before the Committee, which was a shame. As well as being a little discourteous to the Committee—I can take the insult—that risks sending out the negative message that the Welsh Assembly Government and the UK Government are not working well together, which we do not want to happen.

We recognise that there is a problem with inward investment in Wales. Looking back, we can say that the ’80s and early ’90s were something of a boom era. Despite the fact that Wales has less than 5% of the UK’s population, we were getting about 15% of inward investment projects. By the late 1990s, however, things had started to decline. Between 1998 and 2008, some 171 foreign-owned companies closed their sites in Wales, with the loss of 31,000 jobs, and now things are getting worse. A parliamentary written answer from this Monday shows that the number of inward investment projects in Wales has declined from 68 in 2009-10 to just 26 in 2011-12, despite the fact that the UK as a whole remains the No. 1 destination for foreign direct investment in Europe.

There has been a shift in FDI away from Wales and towards London and the south-east of England, and the Committee wanted to know what we could do to improve the situation. We were, of course, clear that the traditional routes for attracting investment—low labour costs, grants and help with infrastructure—can no longer be relied on. We certainly do not want to compete on labour costs with countries such as China or India. It is important that we can offer a good standard of infrastructure so that we make Wales as appealing as we can for companies that might want to come here.

Lord Green of Hurstpierpoint, the Minister for Trade and Investment, told us that countries and overseas companies weigh up certain factors systematically, as if building up a grid, before deciding where to invest. Our report focused on three of those areas, the first of which was education, which obviously is devolved to Wales. It would merit its own inquiry, if we could find a way to conduct one without causing offence to the Welsh Assembly.

Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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The Government’s response to recommendation after recommendation in the Committee’s report is:

“This is a matter for the Welsh Government, who may wish to respond.”

Does not the hon. Gentleman think that his report has been weakened by the Committee’s trespassing beyond its own responsibilities? The Welsh Assembly Government are likely to respond negatively. The report would have been far better and more incisive if it had concentrated on matters that are the responsibility of this Parliament.

David T C Davies Portrait David T. C. Davies
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The Welsh Affairs Committee is perfectly entitled to have an interest in anything affecting Wales. Although some in the Welsh Assembly might take the view that they are not willing to talk to the UK Government about things that they consider to be their own prerogative, it is noticeable that our Committee has considered such issues as defence, which the Ministry of Defence could say was its responsibility. We have also considered broadband, which is cross-cutting and affected by both UK Government and Welsh Assembly Government policy. We consider anything. I am proud to be Welsh and proud to be British, as hon. Members can see from my cufflinks. I make no apology for the fact that the Welsh Affairs Committee would be perfectly happy to consider anything affecting Wales.

Paul Flynn Portrait Paul Flynn
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Throughout the long history of Denbighshire county council, its longest ever meeting, which went on beyond midnight, was to decide the council’s policy on the war in Vietnam. That might have seemed to be a sensible thing to do, but I do not think that it had a great effect on world opinion or the conduct of the United States at that time. Does the hon. Gentleman think that his Committee is likely to end up in a position where it takes up any subject, whether or not it has any influence on or knowledge of it?

David T C Davies Portrait David T. C. Davies
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First, although I was a mere boy at the time, I seem to remember that the hon. Gentleman was either a member of, or involved in, Newport council at the time when I lived there, and that he used to help with discussions of whether Wales should be a nuclear-free zone, so perhaps he has experience of long discussions about things over which he is likely to have little influence. Secondly, inward investment is clearly a cross-cutting issue that is affected by both Welsh Assembly and UK Government policy. I do not want this sitting to go on for as long as that meeting of Denbighshire county council—it is not a record that I am hoping to beat—so I would like to continue my speech.

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David T C Davies Portrait David T. C. Davies
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Which I shall do after I have given way to the hon. Gentleman for the third time.

Paul Flynn Portrait Paul Flynn
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The hon. Gentleman is being very generous. The nuclear-free Wales policy was a remarkable united expression by every county council in Wales—there were eight in 1981. “Nuclear-free” was about nuclear power, not nuclear weapons. Every county council passed an identical resolution saying that it did not want nuclear power stations in Wales but, sadly, the then Government defied that call.

David T C Davies Portrait David T. C. Davies
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How times have changed, as Labour councils now seem to be very supportive of nuclear weapons and nuclear power stations. In 1981, there were no Conservative-led councils, but today there is one in my constituency, so things change for the better.

Returning to education, however, things are not changing for the better. Hon. Members will be aware of the recent OECD programme for international student assessment—PISA—report on education across numerous developed countries. Wales was not only below average for the developed world in subjects such as maths and science, but below average for the whole United Kingdom. The Committee hopes that the Welsh Assembly Government will address that situation. Speaking personally—to take off my Chair’s hat for a moment—I do not think that it will be addressed by setting up a completely separate examination system in Wales, which the Assembly is considering.

We considered the role of further and higher education, and universities are becoming increasingly prominent in investor decisions. We believe that although a lot of good work is going on between universities and industry, a great deal more can be done.

There are numerous studies about the economic benefits of good and efficient transport links. We should be concerned about the current quality of transport links in mid and north Wales, and about connectivity with the rest of Wales. We are exploring those issues in more detail in a current inquiry and our report will be published shortly.