Oral Answers to Questions

Elfyn Llwyd Excerpts

Wednesday 27th June 2012 Commons Chamber

[Mr Jones]

In Wales, an increasingly onerous planning and building regulations system is developing. Both planning and building regulations are key to the development of new housing and, at a time when England is relaxing that regime, the Welsh Assembly Government are making it more oppressive.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

I am rather disappointed that there will be no Welsh Grand Committee on Monday; I do not know whether it is to do with alarm clocks or whatever else. There will be plenty of other opportunities for debating such matters on the Floor of the House in due course and that could have been a good first debate.

The construction industry employs 100,000 people in Wales. Will the Minister please make representations so that renovations are not subject to VAT? The problem is that new build is not subject to it but renovations are, and the vast majority of renovations are carried out by small and medium-sized firms.

[Mr Jones]

I hear what the right hon. Gentleman says about the Grand Committee and I agree with him entirely. My information tells me that it is the onerous planning and building regulations regime that is the biggest deterrent to new house building in Wales.

[Mr Llwyd]

I understand that the Welsh Government and the Treasury are currently discussing the whole issue of the Barnett formula and the housing revenue account subsidy scheme. That has been done away with in England, and never existed in Scotland or Northern Ireland. It cost Wales £73 million last year—money that could have been put to good use repairing council homes. Will he please further these discussions?

[Mr Jones]

The Welsh Assembly Government are doing considerably better in financial terms under this Government than many other spending Departments, and the right hon. Gentleman should take that into account.