Welsh Affairs Debate

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Department: Wales Office

Welsh Affairs

Geraint Davies Excerpts
Thursday 27th February 2020

(4 years, 8 months ago)

Commons Chamber
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Simon Hart Portrait Simon Hart
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We will respond in the way we always do to Welsh Government requests for assistance, in whatever form it might be requested, by taking it extremely seriously and respecting the views that they express. However, in the two meetings I have had with the First Minister so far, it is clear—this is no criticism of him—that we are a long way off being able to measure precisely what that request might consist of. When it comes, we will take it seriously.

Simon Hart Portrait Simon Hart
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Not at the moment, thank you. It is nothing personal, obviously.

At this time, I just want to mention the potential for landslides, which, obviously, has caused almost as much concern as some of the flooding risk. In the past few days, that issue has become particularly significant, and I wanted to update colleagues by saying that I have met the First Minister to discuss it. We have brought all the relevant stakeholders together, either by way of conference call or in person on Monday this week. Just so that those co-signatories know, I should say that we have also received a letter from the hon. Member for Rhondda which asks some of the questions that I hope to be able to answer now.

The First Minister and I have asked for an up-to-date database of the sites involved—it may surprise some to learn that no such thorough document exists—as we want to know precisely who owns them. We have asked for a risk assessment to be undertaken as a matter of urgency as to the integrity of these sites and what exactly the legal liabilities are and where they lie. We have also asked for an outline of a potential timescale and cost for addressing problems associated with these sites, bearing in mind that it is difficult to get on to them at the moment because of the weather conditions that caused the problems in the first place. I also assure colleagues in the House that we will update them just as soon as we have information that we think is viable and useful.

Simon Hart Portrait Simon Hart
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The hon. Gentleman makes a good point. My referencing liability was not to pre-warn him that we will somehow try to excuse ourselves from liability; it is just so that we understand exactly what the legal position is regarding ownership, because there may be things such as access issues, which we need to understand. These things are always frustratingly complicated.

I wish to use this opportunity to be positive about Wales, because there is much to be positive about. This discussion is about opportunities, jobs, growth, culture and identity—

Simon Hart Portrait Simon Hart
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It will also be about an opportunity for the hon. Gentleman to intervene—in a minute, but not yet. I have been waiting 10 years for the opportunity to be able to turn the hon. Gentleman down. I am not going to lose out on that.

In Wales, there are now 144,000 more people in work than there were in 2010 and 90,000 fewer workless households than there were in 2010. Before anybody sticks up their hand and says, “Ah, but they’re not real jobs,” or, “Ah, but they’re zero-hours contracts,” even if we take the most pessimistic view of those figures, it is still a remarkable testament, not necessarily to the Welsh Government or even the UK Government, but to the businesses and individuals in Wales and their resilience in being able to create and sustain that positive economic picture.

Since 2010, GDP per head in Wales has grown by more than the UK average, and in the past year alone 51 foreign investment projects have come our way, creating 1,700 jobs. We have institutions such as INEOS Automotive in Bridgend; Admiral and GoCompare; Airbus and Toyota in Deeside; Aston Martin in St Athan; Bluestone and Valero down in my part of the world, in west Wales; Tata, Celsa and Liberty Steel; numerous successful holiday and leisure small and medium-sized enterprises around the coast; agri-tech in Aberystwyth; a cyber-security hub in Newport; Zip World in north Wales; and a growing renewables hub in the Milford Haven waterway. I know that every single colleague present will have a fantastic example of people who have created interesting, diverse and profitable businesses.

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Simon Hart Portrait Simon Hart
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My right hon. Friend is right, and yes I would of course love to do that. There is a feeling in some quarters that perhaps we have turned our back on tidal lagoon energy; no, we have not. On anything like that project, which has good potential and offers value for money for taxpayers, I will of course meet my right hon. Friend and any other colleagues who may have similarly encouraging projects to promote.

This is not all about the traditional industries that I have already listed; it is also about innovative business: artificial intelligence, virtual reality, compound semiconductors, cyber-security, FinTech, InsureTech—lots of stuff with tech in the name—and many more cutting-edge new industries dotted around, not necessarily in the centres of Wales where people would expect to find them. These businesses offer long-term, well-paid, skilful, green jobs and keep home-grown talent in Wales.

Geraint Davies Portrait Geraint Davies
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The Secretary of State has mentioned the impact on Wales of climate change in terms of flooding, and he is now mentioning the opportunities; will he reconfirm that he is looking again with fresh eyes at the Swansea bay tidal lagoon, including at its financial structure and its cost relative to the price of future energy, which will go up? We cannot use all the coal and oil, because we will all burn up. It would be a pathfinder for new opportunities for export growth, not just in Wales but throughout the UK.

Simon Hart Portrait Simon Hart
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In answering that, I want to avoid giving the hon. Gentleman the impression that we are just going to dust off the original tidal lagoon proposal, because that would possibly build up false hope. I can say that tidal lagoons as a concept were and remain something of significant potential for Wales and the rest of the UK, but any project obviously has to meet the right value-for-money criteria.

We have talked about the traditional industries; Wales also has a fantastically expanding creative industry offer. Who would have thought it? Not many people know—apart from those in this Chamber, obviously—about “Doctor Who”, “Hinterland”, “Keeping Faith”, “Casualty”, “Gavin & Stacey” and, of course “Sex Education”, which is filmed in my ministerial colleague’s—

Geraint Davies Portrait Geraint Davies
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House. [Laughter.]

Simon Hart Portrait Simon Hart
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In the constituency of the Under-Secretary of State for Wales.

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Simon Hart Portrait Simon Hart
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I very much look forward to meeting Lowri in No. 10. We will, of course, have a drink together and think of you all in here as we do.

Let me return briefly to our economic prospects. No St David’s Day debate, certainly in recent years, would be complete without mention of our departure from the EU, which was voted for in Wales by a margin of 5%. The result of the election towards the end of last year confirms the Union ambitions and Union values of our residents.

That leads me neatly to the shared prosperity fund, which is the subject of much discussion in this House and elsewhere—what it means, where it is going, what it will include, who will be responsible for it and so on. I have always said, and I said it on the day I was appointed, that this is a nice problem to have—large sums of money to be distributed by politicians elected in Wales by Wales for the first time in nearly 50 years. The shared prosperity fund for me, and I am sure this view is shared by the Welsh Government, too, is about jobs and growth. It is about priorities that benefit everybody across the country, not just specific parts of it. It is not about vanity projects and ideas that may sound good and even look good, but that do not deliver on those two core objectives.

One of the reasons why the EU referendum vote went the way it did, why there was such a heated debate about it, why there was such frustration sometimes about the knowledge that there were large sums of money that never quite reached the places that they were meant to go, is because there are examples—admittedly not many—such as the funicular, a £2.5 million EU-funded project in Ebbw Vale. It broke down more than 250 times between June 2015 and November 2017, and it cost Blaenau Gwent Council £52,000 a year. I have not been aware at any time in recent years of residents of Wales campaigning for more of that kind of thing. Techniums are another example. I have one in my constituency. The 10 innovation centres, costing £38 million of EU funds, failed to meet job targets, and six centres closed after nine years. They were even described by the Lib Dems as a white elephant.

Geraint Davies Portrait Geraint Davies
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Will the right hon. Gentleman give way?

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Simon Hart Portrait Simon Hart
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The hon. Gentleman is quite right. Those questions will be answered. Whether they are answered now or at a future stage is a matter for him to judge. I am conscious that I have been super generous with interventions, and that I must now get on with my few remaining comments.

As the hon. Gentleman has just mentioned, levelling up and strengthening the Union are our buzzwords. That means road, rail, air, and digital infrastructure improvements. It means mobile phone coverage in the most hard-to-reach places and cross-border connectivity. If we want an argument in this place, let us have one about the M4 relief road. Let us hear from Opposition colleagues about what pressure they are putting on the Welsh Government to remove that blockage and unleash economic potential throughout south and west Wales. Not a single business from the west coast of Pembrokeshire to the Severn Bridge does not believe that the project is a good idea. The blockage appears to come from the First Minister’s Office, so if colleagues share our ambition for the project, let us hear from them. I will take any intervention from the Opposition confirming their enthusiasm for that improvement. [Interruption.] Okay, perhaps not.

We also want a more reliable rail service and charging points for electric vehicles. For those who say, “What has HS2 ever done for us?”, I would say this—

Simon Hart Portrait Simon Hart
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No, I will not give way, because I must get on. I was talking about the benefits of HS2. Whether it is by direct connection to a new form of rail infrastructure, the like of which has not been seen since Victorian times, or whether it is by being able to tap into the supply chain opportunities, HS2 benefits not just those on the route that it will follow, or in the cities that it will join. It will help link up the UK, which will be good for the economic prospects of Wales.

Simon Hart Portrait Simon Hart
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No, I will not give way. My mood has changed. I am no longer co-operative and collaborative.

On defence, we have, in our ministerial team, two people who have worn a military uniform—that of the Royal Artillery in the case of the Parliamentary Under-Secretary of State for Wales, and that of the Royal Wessex Yeomanry in my case. We have an instinctive love, affection and respect for the defence industry, our soldiers, sailors and airmen, and we want to see more of them in Wales. We want to ensure that their veterans’ railcard is delivered in exactly the same way by the Welsh Government as it will be by the UK Government in November, and we want to preserve and enhance the Ministry of Defence footprint in Wales.

Let me turn to the question of steel, which is of huge significance to a number of constituencies, including mine. I reassure the House that the UK Government recognise not only the economic value of steel, but its social and cultural importance in Wales. We are working with steel companies to find out, and be absolutely clear in our minds about, what they see as a sustainable steel industry, and what UK and Welsh Government support they need to be able to develop that. I will be at Tata Steel Port Talbot tomorrow. I hope to meet the hon. Member for Aberavon (Stephen Kinnock) there to discuss these issues further.

I want to end on a cultural matter to do with the Welsh language. I am very proud of the fact that S4C moved its headquarters from Cardiff to Carmarthen. It is, of course, the only Welsh language broadcaster. As somebody who has, as the hon. Member for Newport East (Jessica Morden) knows, a limited grasp of the Welsh language—she would argue that I had a limited grasp of any language—this is of real significance. It is about far more than viewing figures. I am anxious to make sure that the language is seen as approachable, fun, and significant. The moment it becomes politicised, it turns off people who might be taking their first steps with the language—whether they are already residents of Wales, or are moving to Wales, perhaps for work. The vibrancy of the language and its future are important.

The Welsh Government ambition, which I fully support, is to have 1 million Welsh speakers by 2050. That will be achieved only if that is seen as something that we can aspire to achieve without fear of political retribution if we somehow fall short. Inserting the odd word of Welsh into a speech or article does not do the trick. It is a lazy way of attempting to do our duty by the Welsh language. We have to go further than that, and my hon. Friend the Under-Secretary of State will say more about that later.

On that point, Madam Deputy Speaker, I think it is time for a gwin coch mawr over in No. 10. Those are the three words of Welsh that I have learned and have carried me through the most difficult situations over the past 10 years. This is a great occasion. It is a brilliant opportunity for us to speak about the positives of Wales. I look forward to hearing the rest of the contributions.

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Christina Rees Portrait Christina Rees
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I thank the hon. Gentleman for his intervention. We always work together, but the Prime Minister is the leader, so he should have visited the areas affected.

Many local authorities are pulling together to support those who are most severely impacted by the floods, working in the most demanding of circumstances to get the quickest possible support to those in need. However, the UK Government must now step up and recognise the disproportionate and intense impact that the floods have had on Wales. We need additional funding for Wales. We need protection for emergency household payments. We need immediate help for those who do not have insurance. We need support for those who have lost their jobs and livelihoods.

Geraint Davies Portrait Geraint Davies
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My hon. Friend is probably aware that more severe weather conditions are expected over the coming seven to 10 days, so is she as concerned as I am about the saturation of coal tips and the like? We need an urgent assessment of whether there is an imminent risk to villages and hamlets in the valleys, which are susceptible to flash-flooding and slides, because of the topography of the valleys and the increased risk from climate change. We need urgent action, immediate help and long-term solutions; we cannot just wait for a report to come back.

Christina Rees Portrait Christina Rees
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My hon. Friend makes an important point. When I have visited homes that have been flooded or affected by landslips over the past few weeks, it has broken my heart. People who do not have insurance have had their homes destroyed yet again. Yes, we need action, and we need it now, because the weather forecast is definitely not favourable for the next few weeks.

A quarter of all homes and businesses were flooded in Rhondda Cynon Taf alone, with a potential bill of £30 million—twice the council’s annual capital budget. I must commend the work of the Rhondda Cynon Taf MPs and AMs and the leader of Rhondda Cynon Taf Council, Andrew Morgan, who is also leader of the Welsh Local Government Association, which has done some fantastic work.

There is so much to celebrate about our great nation, some of which I will discuss in a moment, but there are also a great many challenges and a level of uncertainty in our communities, against the backdrop of Brexit and the negative effects of austerity on so many Welsh communities and families.

These challenging times make it more important than ever to have a strong Welsh Labour team of MPs here in Westminster, working with the First Minister, Mark Drakeford, and the Welsh Labour Government in Cardiff Bay. It remains a huge privilege to serve as the shadow Secretary of State for Wales, supported by my hon. Friend the Member for Torfaen (Nick Thomas-Symonds), our Welsh Whip, my hon. Friend the Member for Newport East (Jessica Morden), and our wonderful Welsh Labour MPs.

This Tory UK Government have continually failed Wales, and unfortunately the Wales Office continues to fail to stand up for the people of Wales. We were promised the electrification of the Great Western main line to Swansea, but the UK Government changed their mind. The Swansea bay tidal lagoon was recommended by this Government’s own inquiry, but they ignored it, and Wylfa Newydd has been paused. The people of Wales hear loud and clear the UK Government’s promises to our country, and the people will hold them to account for their failure to deliver. We demand more, and we demand better.

The UK Government must recognise the folly of continuing to frustrate efforts to launch a major new domestic market for Welsh steel. The pathfinder tidal lagoon in Swansea bay requires around 100,000 tonnes of steel, much of which could be sourced in Wales, against a very clear commitment from the investors and businesses involved to buy Welsh. The past 12 months have seen the loss of hundreds of jobs in the steel industry, in Tata’s Orb steelworks in Newport and in Liberty Steel in sites in south Yorkshire and south Wales. I thank my hon. Friends the Members for Newport East and for Newport West (Ruth Jones) for their tireless campaigning on behalf of our steelworkers.

Wales needs investment, as the UK as a whole needs investment, and the people of Wales will judge this Government harshly if they continue to fail to deliver it. Opposition Members will continue to speak up for Wales—for Welsh families, communities and businesses— and for the devolution settlement itself. It is not for any UK Government unilaterally to rewrite the rules of devolution by attempting to power-grab and centralise functions set out in law and agreed through the ballot box, using Brexit as a cover for those actions. Despite what the Secretary of State has said about the UK shared prosperity fund, it is still a mystery to me. We continue to wait and wait for the much anticipated consultation, and for any details whatever on how the fund will be implemented. It must respect devolution and be overseen by the Welsh Government, and we must not see a penny less or a power lost. I commend the report produced by the all-party parliamentary group for post-Brexit funding for nations, regions and local areas, led by my hon. Friend the Member for Aberavon (Stephen Kinnock).

The people of Wales have a right to see a UK Government acting in their best interests, protecting their jobs and investing in the public services they rely on and the infrastructure we desperately need to secure Wales’s future. Despite a decade of austerity and a 7% real-terms cut to funding per head of the population, the Welsh Government have continued to lead the way in delivering landmark legislation and progressive policy making. The Human Transplantation (Wales) Act 2013, the Well-being of Future Generations (Wales) Act 2015, the Violence against Women, Domestic Abuse and Sexual Violence (Wales) Act 2015 and the Nurse Staffing Levels (Wales) Act 2016 are groundbreaking examples of a modern legislature creating laws that make a difference for the people of the nation.

The Welsh Government have also introduced policies such as free bus travel for the over-60s, free swimming for children and older people, free school breakfasts, free prescriptions and free hospital parking, as well as being the first nation of the UK to introduce the 5p carrier bag charge. They have banned smoking in cars carrying children, and Wales has the third highest recycling rate in the world. That is just a brief glimpse of what has been delivered during the past decade. The achievements of the Welsh Government are, quite honestly, nothing short of remarkable.

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Stephen Crabb Portrait Stephen Crabb
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The right hon. Gentleman makes an important point, and it was exactly the one I was anticipating. He intervened at exactly the right point in my speech where I was about to mention English votes for English laws. I have made my personal views about this known. I strongly believe that Welsh MPs are not second-class. Our role here is as important as everyone else’s and we have a really important job to do. Wales does have a face here. Wales has a voice here, and we are it. It is the particular role of the Secretary of State for Wales to be those things at the Cabinet table, but we have a job to help to strengthen his hand when he goes there to represent Wales. All of us, in the different Select Committees that we sit on, the different all-party parliamentary groups that we belong to and the Question Times that we take part in, are a face and a voice for Wales. There is nothing second-class about our role here, and we should get stuck in as much as possible. Yes, there is a role for party political debate and conflict at times, but there is also a strong role for co-operation and a Team Wales approach from all 40 of us.

I will finish by talking about a practical issue that has already been discussed in part—the shared prosperity fund. I very much hope that the new Welsh Affairs Committee will take an early decision to get its teeth into scrutinising the progress in Government on making decisions about the shared prosperity fund. In the eyes of many colleagues, this is fundamentally a constitutional question of who gets to make the decisions—where the balance of responsibility lies between Cardiff and Westminster over that pot of money. For me, it is primarily an economic issue of how we put that money to good use to benefit the economy. I tried to intervene on my right hon. Friend the Secretary of State on this point. I do not think that he or anybody else questions the fact that previous rounds of EU funding have gone to useful causes and good projects—we see that in all our constituencies where this money has been received—but the fundamental point is that the primary objective of EU structural funds is to close an economic gap between poorer regions and areas and an EU average, and if that economic gap has not been closed, there are some hard questions to be asked about whether the money can be used to better effect to achieve stronger economic growth. That is the opportunity that I want the Welsh Government and the UK Government, working together, to take with regard to the shared prosperity fund. I very much hope that the new Welsh Affairs Committee will get its teeth into that.

Geraint Davies Portrait Geraint Davies
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Does the right hon. Gentleman agree that, while it is imperative that we have control and use the money effectively, we must not lose the overall amount of money that we are allowed to spend? The shared prosperity fund must grant Wales the quantum of money that we got from convergence funding so that we can use it better but do not have less.

Stephen Crabb Portrait Stephen Crabb
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I do agree. I am concerned about three things: first, the size of the pot; secondly, who gets to make the decisions about how the pot is used; and, thirdly—crucially—how the pot is used.

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Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
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In the brief time available, I want to touch on the need for support for Wales in terms of both climate change and Brexit. In relation to climate change, we are all aware of the catastrophic impacts of flooding in Pontypridd and Rhondda Cynon Taf. As the former head of flood risk management across Wales with executive power to invest in flood defences, I know that the needs of Wales are dictated by its topography. The steep sloping valleys give rise to fast flash flooding, and over time climate change is increasing that risk. We also have the legacy of coal tips. Meanwhile on our coasts, in certain parts of north Wales and also in Swansea, there is a great deal of tidal flood risk, which is also increasing as a result of climate change.

The UK Government need to respect the fact that those things need to be sorted out sooner rather than later, and that they are not linked to our population or to the Barnett formula. They are linked to the actual risk; the number of people living in an area is just a fluke. We need that money now. I very much hope that the Secretary of State and the Minister will take that forward as a matter of great urgency because there is great risk as the weather continues to deteriorate.

In relation to Brexit, Wales has benefited from convergence funding, particularly in the valleys and in south and west Wales, and it is important, given that that funding has been awarded on the basis of need, that we get replication of the finance. I respect the fact that people might argue about value for money and the targeting of the funding, but the Secretary of State needs to stand up for Wales. We need that money in Wales, and if we get it, we can then have an argument about where it should be spent, rather than having an argument about how it should be spent and ending up with less money. For example, Swansea University is doubling in size by investing in the Bay campus. It is a massive engine for economic growth, and it has a great need for those stimuli.

Speaking of Swansea naturally leads me to talk about the railways. We were promised rail electrification, which would have put us on the pan-European network, with all the advantages that would have for business communications, industry and exports, but that was denied us. In addition, Network Rail took out an extra £1 billion, and we now face HS2, which will get between £80 billion and £100 billion of investment. That will mean it will take one hour and 10 minutes to get from London to Manchester instead of two hours and 10 minutes, but it will still take three hours to get to Swansea. This is a problem. We need to think about a strategic plan that will link Bristol, Cardiff and Swansea, which have a population of 3 million people—the same number of people as Manchester and Leeds. The difference is that Manchester and Leeds have connectivity six times an hour, and we have it once an hour. We need to make that regional economic cluster work for us.

In the short term, Great Western Railway has already changed the timetable, so instead of having two trains an hour out of Swansea that go to Paddington, one changing at Cardiff on the Manchester Piccadilly route, we now have only one. Instead of leaving at 28 minutes past, it now leaves at 23 minutes past, meaning that people cannot connect at Cardiff. If someone randomly arrives at Swansea station, the average wait is now half an hour instead of a quarter of an hour. To reduce a waiting time by quarter of an hour would normally cost hundreds of billions of pounds, but the alternative in the short term would be for the Secretary of State to write to Great Western Railway and tell it to look again at the timetables, so that we can get connectivity with Transport for Wales and have not only two trains an hour out of Swansea, but two trains out of Paddington to Swansea to encourage inward investment. It is a simple thing that would not cost much, so I urge the Secretary of State to get on with it.

On trade deals and our relationship with Europe, it has been mentioned that 60% of our trade is with the EU. Whether someone is producing lamb, steel, cars or aerospace products, frictionless trade is massively important. It is all very well the Prime Minister saying, “It’ll all be all right on the night. It is all about our sovereignty,” but it is not all about sovereignty; it is all about people’s jobs, livelihoods and future. The people who voted to leave the EU did not vote to leave their jobs.

Finally, I am reassured to a limited extent that the Secretary of State is again using warm words about the Swansea Bay tidal lagoon and, indeed, the lagoon in north Wales. Climate change is really hitting us for six. We know that 80% of fossil fuels cannot be used if we are to avoid irreversible climate change, and the spot price of oil is deflated due to excess production and fracking, which produces enormous amounts of excess methane that is making climate change even worse. Fossil fuel companies are basically sitting on stranded assets, and the financial markets will belatedly move out of that sector, so we need to invest now in green, climate change-compatible energy projects, such as the Swansea Bay tidal lagoon.

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David T C Davies Portrait David T. C. Davies
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Far be it from me to criticise the royal family; that would be a bit above my station. I was simply saying that the leader of Monmouthshire Council made it clear to me that he did not want me or anyone else going into the flooded area while the floodwaters were still there.

Let me move on to other matters. The Secretary of State for Wales and I have been thinking very carefully about the importance of ensuring that when Wales leaves the European Union, we continue working with the Welsh Government, the local authorities and businesses, so that Wales maintains its position at the heart of a strengthened United Kingdom. We are looking forward to negotiating the cross-border Welsh Marches growth deal, and to developing schemes for improving cross-border infrastructure.

My right hon. Friend the Member for Clwyd West (Mr Jones) spoke about the importance of good broadband, and compared Pandy Tudur rather unfavourably with the Pitcairn Islands. Some £200 million has been promised by the UK Government to ensure that areas across the United Kingdom that are not properly connected become so, and we recognise the importance of that. Rail connectivity was mentioned by the hon. Member for Swansea West (Geraint Davies). Again, I absolutely recognise the general point that he made, but I will have to get back to him on the specific point.

Geraint Davies Portrait Geraint Davies
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Will the Minister address the timetable issue?

David T C Davies Portrait David T. C. Davies
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Yes, I will get back to the hon. Gentleman on that point. On the general issue of rail services, as he will know, we are spending £1.4 billion on rail infrastructure over the next control period. We could do even better for connectivity if we could persuade colleagues in the Welsh Government to support the M4 relief road, and to accept the borrowing that is being offered to them to build that much-needed road.

I congratulate the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), my hon. Friend the Member for Delyn (Rob Roberts) and the hon. Member for Cynon Valley, who all had in common an attempt to see who could use the most Welsh in the Chamber. Dydw i ddim yn siwr pwy sydd wedi ennill y wobr. I will not push my luck. I was on the Welsh Affairs Committee when we changed the rules to allow Welsh to be used at all times. It was right that we should do that. We now allow Welsh to be used, of course, in the Welsh Grand Committee, and it is quite right that we should do that as well. There is more to be done in the Chamber and around the House of Commons. I would be perfectly amenable to supporting further changes and reforms to allow Welsh to be used even more widely in the House.