Welsh Affairs
Geraint Davies Excerpts(4 years, 9 months ago)
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Simon Hart
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
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
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
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.
Simon Hart
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
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
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—
Simon Hart
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.
Simon Hart
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
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
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.
Christina Rees
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
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
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.
Stephen Crabb
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
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
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.
Geraint Davies (Swansea West) (Lab/Co-op)
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.
David T. C. Davies
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.
David T. C. Davies
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.
Oral Answers to Questions
Geraint Davies Excerpts(4 years, 9 months ago)
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Simon Hart
I can reassure my hon. Friend that that is the shared ambition and intention of the UK Government. May I also commend her for bringing this matter to the House’s attention? There are few more important issues facing us at the moment.
Geraint Davies (Swansea West) (Lab/Co-op)
Last year, thousands of cases of revenge porn were brought forward to the police in Wales, but only a handful of those cases went to court, because victims do not have the advantage of anonymity and also have to prove malicious intent. Will the Secretary of State ensure that he has discussions with the relevant Minister on the forthcoming online harms Bill, so that the problem of women in particular being subjected to internet porn—basically, pornography being thrown out on to the internet without their consent—is sorted out properly?
Ford in Bridgend
Geraint Davies Excerpts(5 years, 5 months ago)
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Alun Cairns
Again, the right hon. Gentleman quotes what Ford has said, but Ford also said, “Please vote for the deal.” Perhaps he should answer the question of why he did not vote in favour of the deal.
Geraint Davies (Swansea West) (Lab/Co-op)
My father, David Davies, was head of economic development at the Welsh Office in the ’70s and was instrumental in getting Ford to Bridgend, with the help of inducements from a Labour Government, including the rail link the Secretary of State mentioned and other financial inducements. The Secretary of State knows that wages in Wales are the lowest in the UK, at 70% of gross value added, and that the impact of Brexit is in big companies such as Airbus, Ford and Tata realising that they will no longer be in that market and relocating and reducing their workforce. Will he therefore think again about providing a people’s vote so that people can vote on whether they actually do want to leave, because people from that Bridgend plant who voted to leave did not vote to leave their jobs? Will he rule out any no-deal Brexit? Finally, will he make sure that none of the convergence funding that we currently get will be stripped away and given to other parts of the UK? If he will give none of those undertakings, will he resign?
Alun Cairns
The way in which the hon. Gentleman is pursuing the question suggests that this is a debate about Brexit, but Ford has said that it is not and is acting in a way that demonstrates that it is not. It is not about judging Ford’s statements; it is about judging its proposals and the actions it plans to take arising from this issue. He is right in that the manufacturing sector, in particular, wishes to seek some certainty, and that is what we are seeking to bring about, but by voting against the deal on three separate occasions, the uncertainty over the economy has obviously been created.
St David’s Day
Geraint Davies Excerpts(5 years, 8 months ago)
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Carolyn Harris (Swansea East) (Lab)
In the interests of other Members who wish to speak I will curtail the first two pages of my speech, but my thoughts are with the families of Paul Flynn and Steffan Lewis, and I wish to say how sad I am at their passing.
Since we last had this debate, I have been privileged to be elected as the deputy leader of the Welsh Labour party, so I am in the privileged position of working not only with Labour colleagues but across party lines on campaigns that are dear to my heart and that I hope make a difference not only to my local community or to Wales but right across the United Kingdom.
My work as deputy leader shines a light on the shortcomings of the Conservative Government, while our Welsh Labour Government show that there is a better way to govern, even in the teeth of continuing Tory austerity. Nowhere is that better illustrated than in the case of the Swansea Bay tidal lagoon, a project with the capacity not only to reshape the energy mix of an entire region, but to make Swansea a world leader in tidal energy while creating jobs and offering a boon to the local economy. The lagoon received the full support, both practical and financial, of the Welsh Labour Government, and it was backed by Swansea’s Labour-led council and championed by many Labour colleagues, including my hon. Friends the Members for Gower (Tonia Antoniazzi), for Aberavon (Stephen Kinnock) and for Swansea West (Geraint Davies).
In short, it was a project of rare transformative capability, yet the project, steered with such care and passion for so long by the lagoon’s backers, was damaged immeasurably by the clumsy indifference and terrible short-sightedness of those on the Conservative Benches. Promises were repeatedly made and assurances offered, but ultimately all turned to dust. At the eleventh hour, the Government pulled their support for the most spurious of reasons. Why? Because, to put it bluntly, they do not seem to have any respect for Wales. Not one iota. It is this lack of respect and apparent indifference to the damage it causes that can be seen time after time, in decision after decision. Time after time, it serves only to underline the difference of the Welsh Labour Government approach.
Geraint Davies (Swansea West) (Lab/Co-op)
Does my hon. Friend agree that the Tory English Government’s commitment to fracking is in sharp contrast to the Welsh Government’s commitment to the tidal lagoon, in the context of climate change and the imperative there? We are leading and they are losing.
Carolyn Harris
The Welsh Labour Government do so many things so much better.
Examples of shocking disregard for Welsh communities are sadly all too many in number. Take investment in rail services. The electrification of the main line between London and Swansea had been a sworn promise for years; indeed, it formed a key plank of the Tory campaign in Wales during the 2017 general election campaign. We were told that reliability would be improved, journey times reduced and emissions cut. My constituents in Swansea East were elated to think they would finally see some improvements to a service on which so many of them relied. As we all know, Tory promises were once again broken, and in the most shameful manner: sneaked out in a press release. My constituents learned of the cancellation of the electrification programme in the same way that I did—through the newspaper. There is no investment for Wales, no interest in Wales, and no respect for Wales. Compare that with the Welsh Labour Government’s rail investment. After years of Tory underinvestment, the Welsh Labour Government, through Transport for Wales, are delivering new trains, more services and better stations. Despite some early teething problems, we are at the start of a 15-year, £5 billion investment programme, scrapping Pacer trains, boosting capacity by 65%, offering free travel for the under-11s and providing £200 million to upgrade stations. In Wales, we are working with the trade unions, not against them, to protect the role of the guard on every train. That is the Welsh Labour way, and it is a way that this Government would do well to look at and, may I suggest, to learn from. It has meant that, in Wales, we have 30 hours free childcare and education for working parents being rolled out across the country. That is the best childcare offer for working parents anywhere in the UK.
We have repealed major sections of the pernicious Tory anti-union law to protect the Welsh public sector workforce, while scrapping the right to buy, protecting the housing stock and helping more people access affordable homes. We are now building affordable homes in Wales at a record rate, curbing zero-hour contracts and delivering 100,000 all-age apprenticeships. Children leaving care in Wales will no longer pay council tax until they reach the age of 25. That is the Welsh way. That is the Welsh Labour way, and I am proud to celebrate it here today.
Finally, let me close with something that is so very close to my heart—funding for children’s funerals in cases where families simply cannot afford to pay for them. Since I first spoke in this Chamber of the passing of my own son, Martin, and the extraordinary difficulties that we faced in paying for his funeral, the Welsh Government responded by scrapping fees for children’s funerals, following a lead set by Welsh local authorities. I appreciate that the wheels of bureaucracy turn slowly, but time is a luxury that bereaved parents cannot afford. Yesterday, the Prime Minister announced that the Children’s Funeral Fund would be in place by this summer. Although I had hoped for an earlier implementation, bearing in mind that it was first promised 11 months ago, I welcome the fact that we now have some clarity on timings. I sincerely hope that the summer, which is when the Prime Minister suggested that it would happen, arrives well before the “end of May”.
Welsh Affairs
Geraint Davies Excerpts(6 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alun Cairns
I am grateful to the hon. Gentleman for highlighting that project, because it is important to Wales. I thoroughly support it, and we want to gain investment from a range of sources for it. His point highlights how integrated the rail network is—Wales sometimes benefits from spend in England, and England sometimes benefits from spend in Wales.
Alun Cairns
I want to make some progress, then I will give way.
I was discussing the opportunities for Wales as we leave the European Union. I hope Members throughout the House will welcome the news earlier today that an agreement in principle has been reached with the European Union on the implementation period. As the Prime Minister has said, that shows that with good will on both sides, it is possible to agree an arrangement that works for all sides.
As we leave the European Union, the Union of the UK is more important than ever before. We are a Union of four nations developed over a long history, communicated through a common culture and a shared identity. As a result of joint working and the collaborative approach taken by the UK Government and the Welsh Government, we have delivered a fiscal framework that secures Welsh funding over the long term and a Wales Act that puts Welsh devolution on a stable footing.
Despite what is often reported in the press, the relationship between the Governments is positive, and I take pride in that, along with the First Minister. While there will undoubtedly be challenges ahead, Wales is well placed to benefit from the many opportunities that leaving the European Union offers, such as the chance to form new partnerships, maintain relationships with old allies and become true beneficiaries of the UK being a global leader in free trade.
Alun Cairns
The hon. Gentleman tempts me, but he knows that the Government do not comment on leaked documents. Statements have been made that those documents were not complete, nor were they approved by Ministers.
I am happy to talk about the strength of the Welsh economy and the opportunities we have to exploit the UK being a global leader in free trade. Wales was the fastest-growing nation in the UK in 2016. We have 98,000 more people in work since 2010, with 44,000 more women in work and unemployment down by 48,000 compared with 2010. That demonstrates the strength of the Welsh economy, in which I have significant confidence.
Geraint Davies
Does the Secretary of State accept that 60% of Welsh exports are to the EU, and there is a real risk that we will face tariffs, regulatory barriers and supply chain constraints, which would undermine that growth? Would it not be better for him to commit now to pressing to be part of the single market and the customs union, if in fact we Brexit?
Alun Cairns
As the hon. Gentleman says, about 60% of Welsh exports go to the EU. I am surprised by the simplistic approach that someone of his stature and understanding takes. He of all Members would recognise the complexity of supply chains. The real figure is that 80% of Welsh output goes to the rest of the UK, and there are then onward exports to the European Union and elsewhere. That demonstrates the complexity of supply chains, and he undersells himself by taking that simplistic approach.
Export figures are strong, as the hon. Gentleman is happy to highlight. Last year, we exceeded the £16 billion figure. Export growth to the EU rose by 12%, and the increase in exports to areas outside the EU was 13%. Inward investment remains strong, with investments from companies such as Ipsen Biopharm. It has invested £22 million in Wrexham to expand its facilities, creating 100 jobs. Over recent years, the amount invested locally has been close to £100 million. Spanish manufacturing giant CAF is investing £30 million in Newport producing railway rolling stock, creating 200 new jobs.
Toyota’s recent announcement that it will build its new Auris model in Burnaston is great news for the engine plant on Deeside. That demonstrates the complexity of supply chains, which I mentioned to the hon. Gentleman, and highlights the fact that Wales gains much from being part of the common UK market.
Ben Lake (Ceredigion) (PC)
Diolch yn fawr iawn i chi, Mr Deputy Speaker, for calling me to speak in the debate, and a belated dydd Gŵyl Dewi hapus to you and all Members.
I am grateful for the opportunity to contribute to this wide-ranging debate on Welsh affairs. I also wish to join others in congratulating the hon. Member for Ynys Môn (Albert Owen) on originally securing the debate. I very much welcome the fact that it is now being held in Government time.
It will come as no surprise to right hon. and hon. Members that I intend to concentrate my remarks on Ceredigion, the constituency that I have the honour of representing. In particular, I believe that a significant rethink, if not a recast, of economic strategy is needed if Ceredigion and other areas of Wales are not to be left behind in the years to come. My underlying contention is that it is not being overly ambitious, let alone idealistic, to believe that the prospects for individuals living in rural areas should be just as promising as those for people living elsewhere. The children of Ceredigion deserve the very same opportunities as those of other constituencies; adults, too, should be afforded career prospects and the ability to enjoy a life similar to that enjoyed by those inhabiting other areas of the United Kingdom.
I am in no way espousing the idea that the UK Government grant Ceredigion preferential treatment—although I could certainly be persuaded of the merits of such an approach—but I am arguing for fair play, or, as we say in Wales, chwarae teg. It may be too much to ask for, but I believe that Wales sorely needs an economic strategy that facilitates growth in both rural and urban areas if we are to avoid building a geographically unbalanced Welsh economy. The development of the rural economy should form a key part of an economic strategy for Wales. We need look no further than the state of today’s UK economy to appreciate the consequences of an unbalanced approach to economic development. Or better still, we can turn to page 218 of the Government’s own industrial strategy White Paper, which illustrates all too clearly how focusing attention and investment in urban areas has meant that the productivity of rural areas, such as Ceredigion, is consistently below that of the UK average, and in stark and depressing contrast to that of larger towns and cities.
It is for that reason that I cautiously welcome the Government’s announcement of a mid-Wales growth deal as at least a tacit acknowledgement that Ceredigion and—I say this as the hon. Members for Brecon and Radnorshire (Chris Davies) and for Montgomeryshire (Glyn Davies) are in their places—Powys have been overlooked for far too long. I know that time constraints meant that the Secretary of State was unable to speak on that issue in greater depth, but perhaps when the Under-Secretary sums up we may learn a little bit more about the potential of the mid-Wales growth deal.
A growth deal for mid-Wales, if adequately resourced and successful in bringing businesses and communities together, could be a real opportunity to address the consequences of the area’s chronic underinvestment and neglect by successive Governments. It is also a chance to diversify the base of the rural economy in that part of Wales to ensure that, just like the economic success stories of the cities, the economy of rural Wales is rooted in a rich mixture of sectors and industries. That would mean that, in the future, the children and young people of Ceredigion have ample opportunity to pursue a prosperous living in the county and are not forced to move elsewhere for work.
Members will have heard me speak about the difficulties that many of my constituents face in accessing fast and reliable broadband. That is not only a significant barrier to Ceredigion’s economic growth but a source of great frustration for households across the county. Broadband, and good digital connectivity in general, is no longer a luxury; in the 21st century it is increasingly becoming an essential amenity. As such, I very much hope that the mid-Wales growth deal will address poor connectivity. The hon. Member for Montgomeryshire rightly pointed to the investment in roads, but I also hope that some investment will be put into digital connectivity, because broadband, or rather the lack of it, is by far the most prevalent issue raised by constituents in Ceredigion, which, unfortunately, is among the 10 worst constituencies for broadband speeds.
Rural Wales should not be written off as an area without potential. Why should it be the case that opportunities afforded to start-ups and small businesses, including shared office spaces, are poorer in rural areas, or that essential utilities such as adequate broadband and mobile infrastructure are sometimes dismissed as luxuries in places such as Ceredigion?
I am conscious of the time, so I will try to draw my remarks to a close. Increasing investment in mid-Wales is of the utmost importance not solely because Ceredigion, and more generally west Wales and the valleys, are among the most deprived areas of western Europe, but because of the impact that greater job opportunities will have on reducing poverty levels. Indeed, west Wales and the valleys, as many Members here this evening will know all too well, have received significant new structural funding. The United Kingdom Government have previously mentioned that a UK prosperity fund will be established to replace the structural funding post Brexit. I think that Members from both sides of the House would agree that the funds allocated from it should at least equal the European funding, and be allocated on the basis of need, not population.
If the case for further investment in Ceredigion needs justification, I turn the House’s attention to the levels of poverty, particularly child poverty, in my constituency. After housing costs, nearly 29% of children in Ceredigion live in poverty. Research by the Joseph Rowntree Foundation has shown that to truly tackle this shameful affliction, we need to improve the quality of existing housing stock, increase the supply of affordable housing and ensure a fairer social security system. I will not have time this evening to go into each of those points, but the foundation also says that half the battle could be won by increasing wages and improving job opportunities.
Geraint Davies
I have spent nearly every year of my life going to Aberystwyth on holiday. Does the hon. Gentleman agree that we should invest in the beautiful coastline, amazing rural environment and great history of Ceredigion, particularly Aberystwyth? There are people who have now have more money, are a bit older, do not want to get skin cancer, and are thinking about the Paris accord and the environment, and Ceredigion is a great place for them to go, particularly Aberystwyth, which is where my father was from. Does the hon. Gentleman agree that we should be investing in the area and promoting Aberystwyth as an opportunity for a great holiday?
Ben Lake
And Borth in the north. Everyone is welcome to visit us in Ceredigion. I am sure that hon. Members will all agree that it is the best and prettiest constituency in the whole of Wales.
In so far as greater investment will help to tackle poverty levels, I have no doubt that both the Welsh and UK Governments desperately need to reconsider their approach to economic development, and to refocus attention on rural areas such as Ceredigion to ensure that Ceredigion and other rural areas form an integral part of any economic strategy. They must be far more than an afterthought, an also-ran or a non-essential addition to the real effort of developing our cities and urban areas, as is all too often the case. People should have a realistic hope of being able to pursue a career, afford to settle down and lead a prosperous life in any part of Wales. I, for one, am sure that the people of Ceredigion deserve no less.
Stephen Kinnock (Aberavon) (Lab)
I thank my hon. Friend the Member for Ynys Môn (Albert Owen), who is not in his place, for securing today’s debate. It is always a pleasure to follow my hon. Friend the Member for Cardiff North (Anna McMorrin).
I rise today to speak about a gross injustice visited upon the people of Wales not far from this House. On 10 February 2018, the Welsh people were quite simply robbed blind. With this being the delayed St David’s day debate, I would expect many rugby fans to be here, but for those who do not know what I am talking about, I am referring to the recent outcry in the Wales v. England six nations rugby match, when the referee fatally denied a legitimate Welsh try, which proved decisive. We saw Wales denied what we were due, and we were ignored by those in power. I am afraid that that is a running theme in political and public life. The rugby pitch is not the only place where England and Wales are not on a level playing field; not the only place where better judgment and match reviews are needed. In spite of all that, we persist.
Just as I have faith in the talent and promise of Welsh rugby, so I have faith in the talent, promise and future of Wales. Our best days are still ahead of us. Whitehall may not play fair, Westminster may ignore us and Downing Street may break its promises, but Wales will persist, and we shall we succeed.
The Conservative record in Wales is one of false and broken promises; it is the record of a Government who do not listen and do not care. What happened to rail electrification? What happened to the tidal lagoon? What happened to supporting our steel industry and to investing in our young people?
Geraint Davies
To add to the comments about what happened to the £700 million for rail electrification, as my hon. Friend knows, Network Rail also took out an extra £1 billion. We want extra investment in electrification, straightening lines, the Swansea metro, yet, proportionally, there is far less investment in Wales—something like 1% versus 5% of the population and 6% of the network. Does my hon. Friend agree that we are massively underfunded and desperately in need?
Stephen Kinnock
I agree absolutely that if the Government are serious about rebalancing the British economy, which is grossly skewed towards London and the south-east, that has to start with infrastructure investment. The difference between the per capita sums that are spent in London and the south-east and those that are spent in the rest of the country is a chasm that has to be filled.
When the Prime Minister famously declared in Wrexham that “nothing had changed”, she did so in front of a sign claiming that she had a plan for a “strong and prosperous future”. But building that future requires investment, not platitudes; action, not warm words. More than a year ago, the Hendry review—a Government- commissioned review, carried out by a former Conservative Minister, no less, reported back, calling for the Swansea bay tidal lagoon to get the go-ahead. It is a groundbreaking project that would power 150,000 Welsh homes for 120 years, creating thousands of jobs and using Port Talbot steel. Yet nothing has happened. Fourteen months on, and the Government have not even bothered to respond to the review. It is just like the sector deal for steel. For six months, a comprehensive plan for how we can turn our steel industry from one that is surviving into a sector that is thriving; a plan that would allow our communities to fulfil their potential, has sat on a shelf, gathering dust. The plan would mean an additional £1.5 billion of investment over the next five years, increasing production by 40%, creating 2,000 more jobs, training 200 more apprentices a year and increasing investment in R&D. It has the support of all the steel companies and unions, but to unlock that investment, the Government need to act to cut energy prices, which are, on average, 50% higher than those of our competitors.
The steelworkers of Port Talbot, Llanwern, Trostre and right across Wales have shown the lengths they will go to to save our steel industry, but when they agreed to changes in their pensions to save the industry the Government did nothing. They ignored our calls for changes to deemed consent that would have helped many to maximise their savings, and they did nothing when dodgy pension advisers—vultures—swept in to rip off our steelworkers.
Since the 2015 election, Labour MPs have called on Ministers over 700 times to stand up and support our steel industry. While the Business Secretary was on a jolly in Australia, I was in Mumbai with Community union fighting for the future of our steelworks and our industry. How much longer is this meant to continue? On the tidal lagoon and steel, we seem to have a Government incapable of making any decision, a Government frozen by their own ineptitude and shortcomings. While the Westminster Tories have stood by and done nothing, Welsh Labour has gone to the very limits of what it can do, announcing tens of millions of pounds of support for the Welsh steel industry and a plan for millions to support the lagoon. While the Tories stand by, Welsh Labour stands up.
Without more powers, however, there is only so much we can do. That is why powers must be given to Cardiff Bay, not hoarded by Westminster after Brexit. We have seen that we cannot trust the Tories with those powers. They promised electrification through to Swansea. It was in their manifesto. The then Welsh Secretary not only assured me, but promised when I challenged him at Question Time back in 2015 that we would have electrification. However, the day before learning of millions in new investment in London with Crossrail 2, we were told the electrification would be cancelled and that instead we would get hybrid diesel trains. As the Secretary of State experienced—it is a pity he is not in his place so I could remind him—those trains are not so reliable. After his finely balanced photo op with the Transport Secretary, the train broke down and started leaking on its inaugural journey.
The people of Wales deserve better than that. And we deserve better than a Government forcing a prison on Port Talbot, against the wishes of the community, in a totally inappropriate site. I agree that we should be investing in better and newer prisons, but they must be in appropriate sites, not right next to schools and retirement homes on marsh land with poor communications. It must be done with the consent of the local community. We need a Government who listen and a Government who will not try to build our future on the cheap. Since 2008, some £78 million has been cut from Neath Port Talbot’s annual budget and it is expected to find an additional £60 million over the next five years. If it manages to achieve that, it will be the equivalent of it scrapping the entire social services budget. It is a textbook example of the Tory strategy of the devolution of blame: Westminster cuts budgets and forces local councils to cut services or to break the law.
As the central Government budget cuts have grown deeper, it has been impossible to sustain many services, but in Aberavon we are a community and we stand together. Residents, service users and the council workforce have all played their part in meeting those savings. Council staff took a voluntary pay cut and the community banded together to take on responsibilities, volunteering their time and experience to keep facilities open, such as the libraries in Taibach, Briton Ferry and Cymmer. Volunteers have worked hard to keep open the Noddfa community centre in Glyncorrwg, the Gwynfi miners hall and the Afan Valley swimming pool and to take control of bowling greens and sports pitches. When the Government have stood by, our community has stood up, but they should not have to. Community action should be in addition to the state, not in place of it.
There are times when I worry for the future of our country. We have a Government short-changing the present: a Government who claim to know the cost of everything, but know the value of nothing, and a Government who seem incapable of taming the Brextremists, whose reckless, hard Brexit would devastate steel communities like those in my constituency. But then I remember the steelworkers willing to make personal sacrifices to save their industry, community and way of life, to save our steel. I remember people standing by the tidal lagoon, despite Government delay and incompetence. I remember the residents standing up for their services.
Above all, I think of the young people in my constituency, in particular the incredible young women of LEAD— the leadership, enterprise, activism and development programme—delivered by RECLAIM. Through LEAD, those 12 and 13-year-old girls from Aberavon are engaging with the issues that face our community and are gaining the confidence and skills, so that they too can be change makers, leading change and making a difference in Aberavon. The girls of PT Perfect have put together their manifesto of the issues that are important to them, such as homelessness, supporting local businesses and giving girls the opportunity to be seen and to be heard. They have campaigned tirelessly on those issues and have engaged actively with a range of community figures about them. Last month, they were in Parliament to mark the centenary of women receiving the vote. This month, they have been selected to appear on stage at the WOW—the Women of the World—festival at the South Bank.
It is for these girls and for the cohort of boys that will start the LEAD programme in a few weeks’ time and for the thousands of youngsters across Aberavon that we need the Westminster Government to change their attitude towards Wales. Labour understands the potential that we have in Wales and is willing to do what is required to allow us to fulfil that potential. The people of Wales deserve better. The people of Port Talbot deserve better and all in our country deserve better, because we have much to give and much to achieve, but to do that we need support from a Government that believe in Wales and will invest in our people.
Geraint Davies (Swansea West) (Lab/Co-op)
It is a great pleasure to follow my hon. Friend the Member for Aberavon (Stephen Kinnock). I simply want to say a few things. Swansea city region has the biggest urban footprint in Wales. We are also one of the poorest areas of Wales and desperately need our fair share of investment, particularly as we approach Brexit and see convergence funding and the like withdrawn. In particular, it is worth remembering that for £1 billion, which would simply build two and a half miles of HS2, we could provide electrification, halve the journey time between Swansea and Cardiff and provide an electrified Swansea metro. I hope that Ministers will look carefully at that.
We desperately want the lagoon to kick off a global export business that will provide new technology at a time when we are supposed to be looking with seriousness at Paris. We want our fair share of public sector investment. It is unfortunate that the Government seem to be planning for the Land Registry offices in Swansea and Cardiff to merge and go to Cardiff. It is unfortunate that at the moment—I realise this issue is devolved—it looks as though the trauma centre for south Wales may well be in Cardiff and not in Swansea. Indeed, I think that a lot of the major investors, such as the BBC and others, tend to migrate to Cardiff.
This book I have here by Rhodri Morgan reminds me that there was a time when putting money in—such as with the Driver and Vehicle Licensing Agency in Swansea, the Mint in Llantrisant and when Ford went to Bridgend—that we would think very carefully about how to move things not only out of London, but within Wales. The hon. Member for Ceredigion (Ben Lake) said the same thing: we need to disperse the opportunity to grow our economies. There are such things as the lagoon, electrification and hubs and centres of excellence, which might be office space for financial communities and the like, and they need to be moved into places such as Swansea.
We hear about investment in prisons in north and south Wales, but when we talk about investment in prisons, we are basically talking about the opportunity to have people, who might be children now, incarcerated in the future. Instead of thinking of prisons, we should be thinking about investing in the education and economic opportunities to lift people out of poverty. It is absolutely appalling that in Britain today, the age of austerity has meant that for the first time since the 1920s, the bottom 10% of girls now being born are expected to live a shorter amount of time—their life expectancy is going down. We are seeing that the cost of austerity is tens of thousands of premature deaths.
It is time to see a fairer Britain. It is time to see a fairer Wales and a fairer Swansea. I hope that as we approach the challenge of Brexit, the Government will change their ways and invest in economic opportunity on a more egalitarian basis to help, in particular, places such as Swansea to get the tools that they need to achieve the opportunities that they deserve.
Autumn Budget as it Relates to Wales (Morning sitting)
Geraint Davies Excerpts(6 years, 9 months ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alun Cairns
The hon. Gentleman is well aware that that responsibility has been passed over to the Welsh Government, with additional money being made available by the UK Government for that scheme. I suggest that he puts that question to his colleagues in Cardiff Bay, because the former Transport Secretary would have been repeating the claims and the comments that had been made by politicians in Cardiff Bay.
Geraint Davies (Swansea West) (Lab/Co-op)
Given that there are new proposals on the table for the straightening of the line to Cardiff and Swansea to reduce the journey time by half an hour, alongside Swansea metro, will the Secretary of State look positively at those ideas as part of a wider city deal? Given that Wales has 6% of the track line and only about 2% of the investment in railway infrastructure, he should be standing up for Wales, rather than sitting down and thinking about his job before he thinks about Wales.
Alun Cairns
In the first instance, I would say that of course we will look at whatever project comes forward. The hon. Gentleman will be aware of demands that have been made. The First Minister made positive statements about a Swansea parkway station earlier this week in the Assembly, and there are demands coming from some community leaders in Swansea about such a station. Those are issues that we are happy to look at, and the Chancellor talked about proposals of that sort.
If any other project comes forward, we will happily look at it, but I remind the hon. Gentleman that in 13 years of Labour Government only 3 miles or 12 miles of track were electrified—there is a debate about that and we are not sure which, but I will happily give the benefit of the doubt and say that it was 12 miles. I also remind hon. Members that Wales was left as one of those nations, along with eastern European nations such as Moldova and Albania, with not a single track of electrified railway.
Alun Cairns
The hon. Gentleman will recognise that we are in negotiations, and he would not expect us to show our hand during that process. I would point to the significant inward investment—the UK is the leading place for attracting inward investment in Europe, which demonstrates the confidence business is showing in the economy—and the uplift in economic growth last quarter.
Geraint Davies
More than 60% of Welsh trade goes to the EU. The 48% of people who voted to remain are in favour of the customs union and the single market, as are a portion of the people who voted to leave. Given that the majority of Welsh people are in favour of being in the customs union and the single market, will the Secretary of State fight for a soft Brexit?
Alun Cairns
It is far too simplistic to say that 60% of Welsh exports go to Europe, because supply chains are far more complex than that. The Welsh Government concluded that 80% of Welsh exports go to the rest of the United Kingdom, which demonstrates the complexity of the position. Therefore, maintaining the integrity of the single market is important.
Christina Rees
I agree wholeheartedly with my hon. Friend. It is happening not only in his constituency but throughout Wales.
The famous Labour politician I mentioned was of course Nye Bevan, who knew that politics, power and responsibility come down to one thing: priorities. It is in their Budgets that Governments reveal their priorities. The autumn Budget revealed that Wales is not one of the UK Tory Government’s priorities. In the right hands, a Budget for Wales could deliver investment and the greatest good for the greatest number: money for the NHS, local government, education, and skills; investment in projects to tackle youth homelessness and to improve air quality; support for small businesses and business rate relief; funding to promote our language, which is a cornerstone of our culture, and for a growth in the use of Welsh in schools and colleges across the country; and a 21st century schools capital investment programme, investing not only in facilities but in our children’s future. That is a Budget. That is what a Budget can achieve when power is put in the right hands for Wales.
Of course those are not just warm words or hopeful rhetoric. They are the commitments of a Welsh Labour Government budget published less than a fortnight ago—a radical, progressive budget for the many, not the few. However, the Welsh Labour Government are working with one hand tied behind their back. Why? Because the failing Tory UK Government continue to press on with their futile and unnecessary austerity measures, impose cuts on the Welsh Labour Government’s block grant, and let Wales down.
Welsh Labour called on the Chancellor to end austerity and fund the Welsh Labour Government properly, enabling them to invest further in Welsh public services. He failed to do that. We demanded that he provide new funding to lift the public sector pay cap in Wales, which is hitting public sector workers year after year. He failed to do that. The autumn Budget—the Chancellor’s first since the change of pattern—shows once again the contempt and disregard that the UK Tory Government have for Wales. It is a shameful catalogue of missed opportunities, shot through with a callous disregard for the communities and people in Wales most in need of support.
Geraint Davies
Does my hon. Friend accept that, given that Wales is the poorest part of western Europe and we are going to lose convergence funding, it is appalling that the Welsh Government’s block grant should be cut by 5%—£900 million—at a time when we need to invest in education, rail and productivity and lift our opportunities rather than crush them?
The Chair
Order. I think the hon. Gentleman has got a bit ahead of himself and thinks he has been given the second debate on Brexit and the European Union. We need to stick to the Budget.
The Chair
I am sure that the hon. Member for Swansea West is going to intervene on the Budget.
Geraint Davies
On the Budget’s implications for agricultural trade, is the hon. Member for Carmarthen East and Dinefwr aware that the World Trade Organisation struck down and penalised the EU when it said it would not allow hormone-impregnated beef into the EU? Still, the EU has resisted hormone-impregnated beef. Does he not think that, if we stand alone against the United States and it wants to impose hormone-impregnated beef on Welsh consumers, with the WTO behind it, we will have to like it or lump it?
Jonathan Edwards
The hon. Gentleman makes a valid point. The hon. Member for Caerphilly and I were in the United States a few years ago, and we had a very interesting discussion with the food lobby there. I guarantee that it carries a lot of weight, and that is a clear indication of some of the problems we will face in future.
I shall return to the Budget.
Mewn polisi ariannol y mae’r perygl arall. Mae polisi ariannol hynod lac gan y Banc Canolog wedi cynnal yr economi ers 2010, a bydd oes yr arian rhad yn diflannu’n raddol wrth i gyfraddau llog gychwyn ar eu taith tuag at normaleiddio.
Yn ystod y cyfnod hwnnw, daeth twf economaidd i ddibynnu fwyfwy ar wariant gan ddefnyddwyr fel canran o GDP. Bydd methiant i ail-gydbwyso oddi wrth economi a gynhelir gan ddyled cartrefi yn rhwystr sylweddol yn y blynyddoedd i ddod.
(Translation) Monetary policy is another danger. The ultra-loose monetary policy of the central bank has sustained the economy since 2010, and the area of cheap money will gradually be removed as interest rates begin their journey to normalisation. During that period, economic growth has become even more reliant on consumer spending as a percentage of GDP. Failure to rebalance from an economy sustained by household debt will be a significant barrier in years to come.
Personal debt is reaching the level it was at before the great crash of 2008. That should be of great concern to us all.
Mae dirwasgiadau yn dueddol o ddod bob degawd, sy’n golygu, naw mlynedd wedi chwalfa ariannol fawr 2008 ein bod yn nes at ddiwedd y cylch na’i gychwyn. Nid yw’r methiant i neidio’n ôl yn sydyn o’r chwalfa fawr ac i ail-gydbwyso yn sectoraidd a daearyddol, na dibyniaeth yr economi ar beiriant cynnal bywyd polisi arianyddol yn argoeli’n dda at y dyfodol.
(Translation) Recessions tend to come each decade, which means that nine years after the great financial crash of 2008, we are far nearer the end of the cycle than its beginning. The failure to rebound sharply from the great crash, the failure fundamentally to rebalance sectorally and geographically, and the reliance of the economy on the life support of monetary policy do not bode well for the future.
The failure to rebound quickly from the great recession, the failure to rebalance sectorally and geographically, and the decade-long dependence on the life support of ultra-loose monetary policy do not bode well for the future.
O ystyried graddfa’r her, nid yw’r Mesur Cyllid yn addas. Cyn ymdrin â rhai o gymalau’r Mesur hwn, carwn ganolbwyntio ar rai o’r darpariaethau sydd, ysywaeth, ar goll.
Mae model economaidd y Deyrnas Gyfunol a ddilynwyd ers degawdau gan holl bleidiau sefydliad San Steffan wedi ei seilio ar hyrwyddo gweithgarwch a chyfoeth yn Llundain a de-ddwyrain Lloegr. Dylai’r anghydraddoldebau daearyddol o ran cyfoeth fod yn destun cywilydd i wleidyddion San Steffan. Mae naw o’r deg rhanbarth tlotaf yng ngogledd Ewrop yn y wladwriaeth Brydeinig yn ogystal â’r un cyfoethocaf. Yn anffodus, wrth gwrs, mae gorllewin a gogledd Cymru ymysg y tlotaf. Dylai’r Trysorlys fod yn ceisio ymdrin â’r record gywilyddus hon, ac eto does dim yn y mesur cyllid hwn fydd o ddifrif yn mynd i’r afael â’r heriau o’n blaenau.
Efallai mai un o ganlyniadau Brexit fydd y bydd cwmnïau ariannol Dinas Llundain yn adleoli i Baris, Frankfurt a Dulyn. O ystyried hynny, dylai Llywodraeth Prydain ymateb drwy ganolbwyntio ar sectorau economaidd eraill, yn enwedig gweithgynhyrchu. Dylai hyn arwain at symud y pwsylais ymaith o dde-ddwyrain Lloegr i’r cenhedloedd a’r rhanbarthau.
Yn anad dim, dylai Cymru gael y grym cyllidol i lunio ein heconomi ein hunain. Mae’n warthus fod gan yr Alban a Gogledd Iwerddon setliad cyllidol a threthiannol llawer gryfach na Chymru. Oherywdd hyn, bydd economi Cymru dan anfantais sylweddol. Dydw i methu deall pam nad yw gwleidyddion o’r pleidiau Unoliaethol a bleidleisiodd o blaid rhoi mwy o bwerau i’r Alban a Gogledd Iwerddon yn barod i ddarparu ar gyfer ein cenedl ni ein hunain.
Hyd yn oed os ydym yn rhoi i’r neilltu yr anghydraddoldebau cyfansoddiadol, mae’r sefyllfa yn golygu fod Llywodraeth Cymru yn llai abl i ymyrryd yn ein heconomi. Os mai Brexit caled fydd hi, dylid datganoli portffolio cyfan o drethi, gan gynnwys treth teithwyr awyr, treth ar werth a threth gorfforaeth.
Dylai buddsoddi mewn seilwaith gael ei wasgaru’n fwy cyfartal ar draws y wladwriaeth Brydeinig.
(Translation) Considering the scale of the challenge, the Finance Bill is in no way fit for purpose. Before addressing some of the measures in the Bill, I will concentrate on some provisions that are sadly missing. The UK economic model, which has been followed for decades by all the establishment parties in Westminster, is based on promoting activity and wealth in London and the south-east of England. The geographical wealth inequality should be a matter of shame for Labour and all politicians in Westminster. Nine of the 10 poorest regions in northern Europe are in Britain, as well as the richest. Unfortunately, west Wales and north Wales are among the poorest. The Treasury’s overriding aim should be to address that shameful record, but nothing in the Finance Bill will seriously get to grips with the challenges facing us.
One consequence of Brexit might be the relocation of London-based financial companies to Paris, Frankfurt or Dublin. Given that, the British Government should focus on other economic sectors, and manufacturing in particular. That should shift the focus away from London to the nations and regions.
First and foremost, Wales should be empowered to create its own economy. It is disgraceful that Scotland and Northern Ireland have stronger financial settlements than Wales. Given that, the Welsh economy will be at severe disadvantage. I cannot understand why politicians from Unionist parties vote in favour of giving more power to Scotland and Northern Ireland, but are unwilling to do so for our own nation. Putting aside the constitutional imbalances, that means that the Welsh Government are less able to intervene in our economy. If we are to have a hard Brexit, a portfolio of taxes should be devolved, including air passenger duty, VAT and corporation tax.
Infrastructure investment should be more evenly spread across Britain. Why should Welsh taxpayers’ money be spent on English projects?
Mr David Jones
Mae’n bleser eich gweld chi yn y Gadair, Mr Owen. Mae’n dda hefyd bod Aelodau Seneddol yn cael y cyfle i siarad yn yr iaith Gymraeg yn San Steffan am y tro cyntaf, os dymunant wneud hynny. Yn siarad yn bersonnol, yn anffodus dydw i ddim yn teimlo’n ddigon cyfforddus yn yr iaith Gymraeg i wneud araeth drwy gyfrwng yr iaith, ond mae’n dda cael clywed cymaint o bobl yn siarad yr iaith bore yma.
(Translation) It is a pleasure to see you in the Chair, Mr Owen, and it is good that Members of Parliament have the opportunity to speak the Welsh language in Westminster for the first time, if they so choose. Speaking personally, unfortunately I do not feel sufficiently comfortable in the Welsh language to make a speech, but it is good to see so many people speaking Welsh here this morning.
It is good to have the opportunity, after a short interval, to debate the impact of the Budget statement on Wales. For constituency reasons, I wish to focus on the impact of the Budget on north Wales, because I believe that two particular announcements in the Budget and the Red Book were of considerable importance. We must consider north Wales economically as part of the greater north-western economic region. Within the boundaries of north Wales, we have important economic elements. Wylfa nuclear power station will soon, we hope, be developed as Wylfa Newydd. We have two great universities at Wrexham Glyndŵr and Bangor, and we have important manufacturing hubs at places such as Abergele, St Asaph, Wrexham, and, of course, Deeside, which is one of the most important manufacturing areas in the United Kingdom.
Those economic areas are hard by a border that is political and administrative, but in reality completely invisible to those who live around it. The northern powerhouse initiative of the former Chancellor, George Osborne, is also of great importance to the people of north Wales. It was therefore good that, in his 2016 Budget, he announced the north Wales growth deal, which was intended to provide for north Wales access to some of the benefits of the northern powerhouse. We also saw under him the reopening of the Halton curve, and although that stretch of railway line is just one and a half miles long, its economic importance to north Wales cannot be overestimated. It will link north Wales with Merseyside and, importantly, with John Lennon airport. I am not at all embarrassed to give due credit to George Osborne, who I believe did a great amount for the north Wales economy.
Geraint Davies
Airbus is massively important for north Wales, Wales and the UK. Its chief executive has said that it is crucial that we have a soft Brexit as opposed to a hard Brexit, and that we remain part of the customs union, which George Osborne would agree with. Does the right hon. Gentleman agree with him on that as well?
Mr Jones
I recognise the importance of Airbus not just to the regional economy of north Wales, but to the whole United Kingdom economy. It is the biggest manufacturing facility. The hon. Gentleman is entitled to his views on Brexit. I happen not to share them, and I believe that Airbus has a great future after Great Britain has left the European Union.
Oral Answers to Questions
Geraint Davies Excerpts(7 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alun Cairns
My hon. Friend makes a logical, reasonable and helpful point in recognising that by using the latest technology we are offering more capacity and much faster trains, which is a major benefit to Swansea and to west Wales. Criticising the decision to use the latest technology on the line to Swansea does nothing more than undermine investment in the city.
Geraint Davies (Swansea West) (Lab/Co-op)
Alun Cairns
Clearly the Swansea metro is a different proposal, but I am keen to meet Professor Mark Barry to discuss its potential. It is an interesting addition to a wide-ranging debate in which there are also proposals to improve the frequency of trains to Carmarthenshire and Pembrokeshire. At the moment, passengers from west Wales often drive to Port Talbot to get on the train, but I think that we can come up with much more imaginative solutions. The metro is an additional solution to consider as part of that debate.
Energy in Wales
Geraint Davies Excerpts(7 years, 2 months ago)
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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.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Geraint Davies (Swansea West) (Lab/Co-op)
Thank you very much, Mr Paisley. It is a great pleasure to follow the excellent speech made by my hon. Friend the Member for Ynys Môn (Albert Owen). As the Minister will know, within the next few weeks the Government will launch their clean growth plan. I very much hope that he will use all his energies to ensure that the Swansea bay tidal lagoon, the tidal lagoon planned for north Wales and rail electrification to Swansea will be in that plan. Without trying to be rude to him, he is a Minister in the Wales Office: my great fear is that it is a small Department with very little bite and, arguably, very little bark. We hope that he speaks up for Wales on green energy.
I have to say that my other great fear is that the Swansea bay tidal lagoon and rail electrification to Swansea are set to burn on the altar of Brexit fundamentalism. I say that because the Government now face a bill from the EU of perhaps more than £50 billion, which translates to thousands of pounds for every family in Swansea and in Wales. The Government are now dashing out forward looking, long-term green plans—whether rail electrification to Swansea or the Swansea bay tidal lagoon—and prioritising London and the south-east once more, where they are not needed. They are looking at the short term, not the long term, and thinking about how they can pay that bill so that they can keep on pushing forward with a project that people now realise does not resemble anything like what they voted for.
I stood in the general election on a platform of saying that I will defend the 25,000 jobs in Swansea bay that depend on access to the single market, promote rail electrification and keep it on track, keep the lagoon moving forward and oppose fracking. On that basis, my vote went up by 50% in both share and number. I will stick to my pledges and will use this occasion to again promote the Swansea bay tidal lagoon. The tidal lagoon has been talked about for years. George Osborne, the then Chancellor, announced in his November 2014 autumn statement that he thought the lagoon was a fantastic idea and that he wanted to get work on it moving. David Cameron echoed that, and then the Hendry review gave it and its costings a clean bill of health.
However, we now have uncertainty and prevarication, which is making investors, who came around the table to support this important, pioneering project in good faith, wonder will happen next. We face uncertainties owing to Brexit, but people in Swansea and in Wales need the certainty that we will make these investments. On costings, the Treasury is obviously looking around and saying, “Oh, well how does the unit price for the Swansea bay tidal lagoon compare with the spot price for oil?”, but one has to remember—as I am sure you do, Mr Paisley—that 80% of fossil fuels that have already been identified cannot be exploited if we are to avoid irreversible climate change, sustain our commitment to the Paris agreement and fulfil our obligations under the Climate Change Act 2008. In the medium term, the price of oil will go up if we are not allowed to exploit it, while the value of green energy will be much greater. We need to pioneer forward.
Economists’ evaluations of the Swansea bay tidal lagoon showed that, if there is a marginal increase in the actual units of electricity produced—we are talking about a relatively small amount of global energy from this particular lagoon; enough to power 120,000 households —the actual cost is very small for market entry into what could be a global marketplace in a green future. The short termism of the bean counters at the Treasury, who ask about the cost over the next few years, is therefore completely counterproductive. We are looking to have a portfolio of lagoons around Britain and then beyond, to start off an export market during tough times. We know that the lagoon is in fact cheaper than new nuclear and, as I have said, it will be cheaper than oil in the future.
We want a green future for Wales and for Britain, and we want our fair share of infrastructure investment. We should be getting our fair share of HS2, for instance, which would be £2 billion that could be invested in infrastructure, whether that is rail electrification or helping to support the green energy of the future.
I am proud to say that I sit on the Welsh Affairs Committee, and we will produce reports on rail electrification and the lagoon. It is useful to have these exchanges, but the Minister needs to know that other Ministers, from energy to rail, will sit in front of us and will have to answer these questions, rather than flipping them away in the main Chamber in two seconds. We will issue responses to those. Infrastructure investment is important for lifting productivity in Wales, where, as the Minister knows, gross value added is only 70% of the UK average. We are delivering on skills and education to lift productivity, but we need to deliver on infrastructure, which we are not. That is why this is so vital.
On a green future, like my hon. Friend the Member for Ogmore (Chris Elmore), who has just left, I think there is also a case for investing in and supporting Ford’s attempt to generate batteries to support a new generation of electric cars as part of a plan to push forward with electric infrastructure across Wales. Investors need to know what is happening; there has been a lot of uncertainty, and not only with Brexit. While it is a long way away, I understand there was no consultation with industry on the announcement of the ban on sales of new petrol and diesel cars after 2040, which I welcome. We need to work with industry in setting our objectives in the clean growth plan to show our ambition. They should be ready for action, and we should put our money where our mouth is.
The question for people in Wales has always been “How green is my valley?”, and we very much hope that it will be a very green valley. We are here to ask the Minister to do everything he can to support both the Swansea bay tidal lagoon and other green energy, as my hon. Friend the Member for Ynys Môn said, and an integrated green future that provides productivity, prosperity and hope for all of us for the future.
Tonia Antoniazzi (Gower) (Lab)
Thank you, Mr Paisley. You have indeed improved your pronunciation of my name. I would like to thank my hon. Friend the Member for Ynys Môn (Albert Owen) for securing this debate.
With the Government pursuing an ill-advised and short-sighted attack on renewables, the UK is set to miss its target. To put that into context, the EU is set to meet its target of producing 20% of its energy needs from renewable sources by 2020. The UK is missing even its own unambitious targets. That has not happened in a policy vacuum: it is a direct result of the Tories scrapping subsidies for onshore wind farms, solar energy, biomass fuel conversion, and killing the flagship green homes scheme—I could go on, as they have made many more decisions as part of their sustained attack on renewable energy.
In my constituency, we have a company called Gower Power that develops renewable energy projects and specialises in putting them into community ownership. That project will provide enough energy for 300 homes and create more than half a million pounds of funds for developing other community eco-projects. The Gower Regeneration project has been supported by the Welsh Government. It would not have been supported by the Conservatives. It serves as a telling case study into the contrast between a Labour Government’s support for new, renewable forms of energy and the Conservatives’ slashing of support for them.
The Welsh Government are completely committed to renewable energy and, despite significant budget cuts passed down from Westminster, have supported projects such as the Gower solar farm through their Energy Wales plan. Energy Wales is a framework and delivery plan for how Wales will transition to becoming a low-carbon country. Only a few years after its inception, solar farms such as the one in my constituency are springing up as a result of the Welsh Government’s foresight on this issue. Gower offers the perfect environment for a wide range of renewables, including the impressive onshore wind farm in Mynydd y Gwair.
In this harsh climate for renewables, new solutions and radical ideas are needed. We are talking about the Swansea bay tidal lagoon today, which is supported by parties of all colours. It is particularly notable that Conservatives from Swansea took to the seas this summer to support the tidal lagoon. Welsh Tories are behind it, so what is going on? The conditions around the Swansea bay make it perfect for a project of this nature. Both the River Tawe and River Neath enter the sea there. The proposal would build 16 hydro turbines and a six-mile breakwater wall around the area, generating enough energy to power 155,000 homes for the next 120 years. Where the Government’s short-sightedness has created a huge hole in our capacity to power our country in future years, the Swansea bay tidal lagoon offers us a way forward.
The benefits are not just environmental. West Wales was found by the Inequality Briefing to be the poorest region in northern Europe. Large infrastructure projects are few and far between. The Swansea bay tidal lagoon offers a rare glimpse of UK Government-provided hope in an area too often forgotten about by those who currently run Westminster.
Geraint Davies
My hon. Friend, who is a great advocate for the lagoon, will know that the constitution of the Welsh Government contains a commitment to sustainable development. With talks about changing powers post-Brexit, does she agree that this is the time to move the power to take leadership of green projects with the resources from Westminster to Wales, so that we can get on with the job of delivering a green future with our lagoon?
Tonia Antoniazzi
I agree with my hon. Friend. We have to move forward, and we need the infrastructure commitment from Westminster to be able to do that.
The tidal lagoon has a projected £1.3 billion capital spend, the majority of which will be spent in Wales and across the UK. The construction period is expected to contribute £316 million in gross value added to the Welsh economy and £76 million a year thereafter. In an area still struggling to recover from the loss of mining and manufacturing industries, the Swansea bay tidal lagoon offers a bright future for Wales post-Brexit.
Despite the money invested so far and the Government-commissioned Hendry report calling for the project to be signed off as soon as possible, where are we? The Government have now been sitting on the Hendry review for longer than it took Charles Hendry to conduct it. That is not acceptable. Investors’ money will not last forever, and we need to move on.
Labour’s Welsh Government and First Minister Carwyn Jones are delivering for Wales. We have Labour’s Swansea Council leader Rob Stewart delivering through the city deal. Everybody is behind it, but when the Conservatives in Westminster have a chance to deliver for renewable energy, for investment and for my constituency of Gower, they dither and delay.
Ultimately, it is not just my constituency that would feel the benefits of this project. Swansea bay tidal lagoon is a pathfinder project; we all know that. It offers a completely scalable blueprint for the programme, opening up the opportunity for a fleet of tidal lagoons across the country of varying sizes. Economies of scale apply, so the proposed follow-up larger lagoons could provide an even cheaper energy price. The Swansea bay tidal lagoon is therefore the litmus test for a renewable energy revolution across the UK.
Chris Ruane
That is the point that I am trying to make. They are about tourism, flood defence, manufacturing, skills and research. That is why Welsh Ministers from different Departments have engaged on the issue, and that is what we want to see from the UK Government. We want to see Ministers from the Department for Business, Energy and Industrial Strategy, the Department for Environment, Food and Rural Affairs and other UK Departments engaging positively with Charles Hendry, the Welsh Government and the Welsh Assembly to make sure that these projects go ahead.
One of the arguments made—perhaps not by the Minister, but by others—is that with wind power and solar power, the wind is not always blowing and the sun is not always shining. With tidal lagoons we can predict down to the minute when the energy will be created over the next 125 years. It is all down to the moon and the movement of tides. That could create a predictable baseline of support for our national energy mix, on top of solar, wind power and nuclear, so that we have a good baseload of support.
All these renewable energy sources also become more viable with the advent of batteries. The lagoon will produce energy throughout the night, and if that can be stored in batteries it can benefit the rise of the battery-powered car industry in the UK. I ask the Minister to take these issues way and to consider them carefully. Hopefully, cost will not be an issue. I believe that £700 million will be saved by the cancellation of the electrification of the Cardiff to Swansea route. Can some of that money—just a fraction of it—be used to prime the Swansea economy and to support it?
I move on now to Wylfa Newydd. At £12 billion, it will be single largest investment project in Wales over the next 10 years. It has the potential to transform the economy of not only Ynys Môn and Gwynedd, but the whole of north Wales. Again, the Welsh Government have been working flat out to secure this development. It is their No. 1 priority as far as the economy is concerned. Successful delivery will involve many Welsh Government Departments if we are to maximise the economic benefit and reduce any negative effects on the environment and culture in Wales, so there is total engagement.
Big issues need to be addressed, such as the new power station’s access to the national grid and the building of a third crossing over the Menai strait. All those ducks need to be put in a row before this project starts. Again, we are looking for engagement and consensus between the Minister, MPs and Departments in Whitehall and the Welsh Government. There are many stakeholders, including local authorities; the company itself, Horizon Nuclear Power; the North Wales Economic Ambition Board; and the national Government. There is a good mix of groups and organisations, and we need to gel them together to get this renewable energy up and running in Wales.
Geraint Davies
I do not mean to take my hon. Friend off track, but I will just take him back to what he mentioned a moment ago about the cost of rail electrification to Swansea being put somewhere else. I just make the point that there are many of us across Swansea who want to hold the Conservatives to David Cameron’s promise to bring about electrification, and to keep that money in that project and deliver electrification for Swansea bay.
Ian Paisley (in the Chair)
Order. I call Chris Ruane. I encourage you to bring your remarks to an end and to start to wind up. I want to give the Minister time to respond.
Guto Bebb
No, I will not take another intervention on this issue. I would like to move on to the main elements of the debate—the issues raised by the hon. Member for Ynys Môn. As he rightly said, there has been an element of political knockabout towards the end of this debate, but it is important to highlight that we in Wales have an opportunity to contribute significantly to the energy mix in the United Kingdom, and to lead on energy generation. To those hon. Members participating in the debate who commented that we have not provided that leadership or that opportunity, I highlight recently consented projects in Wales: the Brechfa Forest wind farm, the Clocaenog Forest wind farm, the South Hook combined heat and power station, the Hirwaun power station, the internal power generation enhancement at Tata Steel and the North Wales wind farm circuit connection, which has benefited both my constituency and that of the hon. Member for Vale of Clwyd. We have had the Brechfa Forest connection; the Glyn Rhonwy pumped storage system, also approved recently; and the Wrexham energy centre at the Wrexham industrial estate.
If we were to believe the comments of the Labour party—
Geraint Davies
On a point of order, Mr Paisley. Is it in order for the Minister to refer directly to a comment that I made about the Government’s prevarication over three or four years about the cost of energy, which has created massive uncertainty in the business community, but not to allow me to intervene on that point?
Ian Paisley (in the Chair)
You have made a point, but I do not believe that it is a point of order.
Guto Bebb
I highlight again, therefore, in response to the comments that this Government have not supported energy generation in Wales, that the facts speak for themselves. The opportunities for further development have been discussed by the hon. Member for Ynys Môn and other hon. Members. I turn particularly to Anglesey’s potential for nuclear.
I think that everybody who is committed to the economic regeneration of north-west Wales is aware of the potential in nuclear. The hon. Gentleman has been rightly applauded by colleagues from all parties for the work that he has done to ensure that the development of nuclear does not happen in a vacuum but is fully integrated into the further and higher education sectors. We in north Wales can only be proud of how the HE and FE sectors are investing, in advance of any decision on the nuclear station on Ynys Môn, in order to ensure that the economic opportunities that come along with it are available for local people as well. We should be proud of that integration. Similarly, he highlighted that renewable energy is a success story in Wales. One of those successes, as I mentioned in an intervention, is the way that the FE sector in north Wales has tried to ensure that work opportunities servicing wind farms off the coast are open to local people.
North Wales is taking an integrated approach. The Government—both the Wales Office and the Department for Business, Energy and Industrial Strategy—recognise that as a positive sign of an area that is looking constructively at how we can contribute to the UK energy mix. Nuclear offers great opportunities as well as great challenges. This Government are the first to have commissioned and agreed to a new nuclear power station, but that was also a long-drawn-out process, because the sums involved and the implications of the investment are significant. The same will be true of the new Wylfa Newydd. It is imperative, in my view, that we reach a successful conclusion. In Horizon, we have significant partners willing to work with Government, but the decisions have to be right.
As a Minister in the Wales Office, I am pleased. I take with a pinch of salt the view of the hon. Member for Ynys Môn that I should not be in my place today, but I would have attended this debate regardless. Since taking my position at the Wales Office, I have been pleased to visit the current Wylfa station before decommissioning started, I will be pleased to visit the new proposed site and I have been pleased to visit Trawsfynydd, because the Wales Office knows full well how the energy mix in Wales can contribute to our economic redevelopment. That is why so many Conservatives in south Wales support the lagoon.
The small modular reactor opportunity is also an exciting prospect. The hon. Member for Ynys Môn mentioned the cabling systems that will be required to transfer electricity from Wylfa Newydd; my understanding is that the potential site of a small modular reactor in Trawsfynydd already has enhanced connectivity to the national grid. I take seriously the opportunity to build a small modular reactor in Trawsfynydd, and I am pleased to say to the House that I will visit there on Tuesday with a Minister for the northern powerhouse. We understand that although the consequences of a decision on Wylfa Newydd or a small modular reactor in Trawsfynydd would benefit the economy in north Wales, they are far more significant than that. As hon. Members have said, they have the potential not just to transform the economy of north Wales—as other projects could in south Wales—but to have an impact on the wider supply chain within the United Kingdom.
Contrary to Opposition Members’ comments, the Government have invested in city region deals for Cardiff and Swansea, so I must ask why we are accused of ignoring the Swansea city region. One reason for the Welsh and UK Governments’ keenness to see a cross-border north Wales growth deal is the energy supply chains. The energy opportunities in north Wales are not confined to north Wales; they are dependent on cross-border connectivity.
Geraint Davies
In the short time available, will the Minister say whether he has any idea when the decision will be made on the lagoon—not what it will be, but when it will be made? Will it be part of the clean growth plan?
Guto Bebb
I apologise; I meant Swansea West. The hon. Gentleman should be aware that the Swansea city deal includes a number of projects, but the tidal lagoon is not one of them, although it has certainly contributed to the development of the city region. I would have expected him, as the local MP, to understand what was within the deal in question.
Ian Paisley (in the Chair)
Order. The Minister has not given way, as the hon. Gentleman knows.
Guto Bebb
Good.
I should also address the possibility of moving forward with the small modular reactor—as I said, we will visit Trawsfynydd very shortly—and the renewables issues that hon. Members have raised. Our track record on renewables is positive. I fully accept that wind farm costs have fallen quite significantly as a result of investments made, but I think the comments of the hon. Member for Vale of Clwyd about the success of our renewables project since we have been in government were unreasonable. There has been more than £52 billion of investment in renewables since 2010—not an insignificant sum.
As for expected energy generation, we are now on track to deliver 35% of the UK’s electricity demand through renewable sources. Far from being a failure, that is a success story that we should be proud of. I am surprised by the accusation that the Government have not been proactive in our investment within the renewables sector. The evidence points the other way. It is all very well talking about projections, but in 2015 we achieved 25% of energy generation through renewable sources.
These are successful outcomes of an integrated Government policy that should be supported. Their success is reflected in the fall in the cost of renewable sources of energy. Opposition Members talk about failure to support developments in Wales, but it is worth pointing out that 49,662 sites in Wales are generating renewable energy—another success story that we should be proud of.
That point brings me on to an issue raised by the hon. Member for Ceredigion (Ben Lake). I have not responded to him in this Chamber before, so I welcome him to his place. He is absolutely right that one of the success stories of north-west Wales has been community hydro projects. My constituency has a few such projects, and I know full well that there are similar projects in the constituency of the hon. Member for Arfon (Hywel Williams), who is not here today. Community energy projects are really exciting, because they generate electricity locally and give a financial benefit to the locality. The Government support such developments, which are crucial to our energy policy, but we need to highlight to the Welsh Government how they are taxed differently in Wales from in Scotland and England.
The Welsh Government have been very constructive on energy generation in many ways, but the taxes on community projects—on equipment used in small hydro plants, for example—are not beneficial to the development of further community projects. That can be contrasted with the situation in England, which is a result of the UK Government’s decisions, and in Scotland. The Barnett consequentials of the decisions made in England could be applied in Wales; certainly the funding has gone to Wales.
We have a good story to tell on renewables. It is a success story that has really touched the grassroots, but we need to make sure that it continues, and that requires action both from the Welsh Government and from Westminster.
I apologise that I am running out of time, but I would like to allow the hon. Member for Ynys Môn time to conclude. He mentioned marine energy opportunities beyond tidal lagoons. I fully understand why tidal lagoons have dominated the debate—the hon. Members for Gower (Tonia Antoniazzi), for Swansea East (Carolyn Harris) and for Swansea West have a real interest in the issue, as do Members throughout Wales, because we understand the potential—but there is a real opportunity for innovatively designed marine energy proposals in Wales. I know that for a fact, because I have visited potential developments off Holyhead and off the Pembrokeshire coast. This is an opportunity for new technology to be developed to put Wales at the forefront of renewable energy opportunities.
The Government are looking carefully at these issues. We want to be supportive, which is why I have visited sites in Pembrokeshire and Ynys Môn and met Anglesey developers. We want to see renewable technologies operating in Wales, but within the context of an energy policy that is fair to the consumer and the business user and supports the development of the energy sector in Wales and the job creation that goes with it.
I thank the hon. Member for Ynys Môn again for bringing the matter to our attention. I apologise if I did not respond to every issue he raised, but 15 minutes is 15 minutes, and I am more than happy to write to him with further guidance on any specific issues. To hon. Members who are concerned about the wait for the tidal lagoon decision, I say that the Wales Office continues to argue strongly for that decision to be made, but—as has consistently been stated—it must be right for Swansea, for people who support the tidal lagoon there, and for our energy policy and its costs. That is the decision that the Government will deliver in due course.
Oral Answers to Questions
Geraint Davies Excerpts(7 years, 2 months ago)
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Mr Speaker
I am extremely grateful to the Secretary of State—especially when he is briefer.
Geraint Davies (Swansea West) (Lab/Co-op)
12. Following a delegation I led in 2014 of four councils, two universities, many AMs and MPs, industry and Admiral, the then Prime Minister, David Cameron, pledged to extend electrification to Swansea, saying it would have a huge economic impact on developing employment in an area of neglected infrastructure, so will the Secretary of State stand up to the Prime Minister, as the previous Secretary of State did, and deliver the promises of the previous Prime Minister on electrification, which we so urgently need?
Mr Speaker
That was far too long. I will not call the hon. Gentleman again in a hurry if he is going to be so long-winded. He has got to do better than that.
Oral Answers to Questions
Geraint Davies Excerpts(7 years, 8 months ago)
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Alun Cairns
My hon. Friend recognises this Government’s global trading ambition. There are 1,200 staff in the Department for International Trade, across 109 countries. Any businesses based in Swansea are as entitled to the same sort of support as businesses based in Swindon, and I encourage them to use the Department for International Trade.
Geraint Davies (Swansea West) (Lab/Co-op)
Some 44% of trade goes to the EU, but the amount from Wales is 70%. Last week in Swansea, the CBI and producers told me that it is imperative that we retain access to the single market and the customs union. The people of Wales did not vote to leave them. Will the Secretary of State assure us that he will do everything he can to keep that going so that our exports are free to continue?
Alun Cairns
I remind the hon. Gentleman that on Monday I held an event to promote exports to not only Europe but all parts of the globe. Clearly there are great opportunities, and last year 4,000 Welsh companies took their first steps towards exporting. Europe is an important market. We want frictionless trade with Europe, and we also want to look to the great opportunities that exiting the European Union will bring to not only Welsh businesses but businesses across the whole United Kingdom. [Interruption.]
The Prime Minister
As my hon. Friend knows, it is of course for the directly elected police and crime commissioner for West Yorkshire to decide what to do about the police precept of council tax, as it is in every area that has a police and crime commissioner, but I would always encourage those commissioners to look at ways to introduce efficiencies into their forces before looking to increase local taxes. Over the past six years, we have seen that police forces can find sensible savings and reduce crime at the same time.
Geraint Davies (Swansea West) (Lab/Co-op)
The Prime Minister
As the hon. Gentleman will know, we are looking at the measures that we need to introduce to improve air quality. There have been improvements in recent years, but we do need to go further, and that is what the Government are looking at across Departments, obviously with the Department for Environment, Food and Rural Affairs paying most attention to that, because it is within its remit. We will be bringing forward proposals on air quality in due course.