Leaving the EU: Wales

Debate between Geraint Davies and Gerald Jones

Tuesday 25th October 2016 Westminster Hall

[Gerald Jones]

My hon. Friend makes a correct point. During the referendum campaign lots of lies were told and comments made, and the people of Wales and the rest of the UK voted for a specific set of circumstances. They did not vote to make our services poorer. Indeed, the investment promised by the Brexiteers—as highlighted by my hon. Friend the Member for Torfaen (Nick Thomas-Symonds)—in the pledge signed on 14 June should be honoured.

[Geraint Davies]

Further to that, will my hon. Friend accept that the people of Wales and Britain voted in good faith in principle to leave and that that was subject to the exit package set out? There is a strong case for another vote not on the principle of whether to leave but on the exit package and whether it represents the reasonable expectations of voters, because already something like 7% of the people who voted to leave now say they do not want to leave. As this is a once-in-a-lifetime choice, surely they should look at the exit package in a referendum.

[Gerald Jones]

As I mentioned earlier, it is important that we respect the result, but it is also important that we ensure we get the best deal for Wales and for the UK in the coming negotiations. Despite the many challenges ahead, we must ensure that Wales has a positive voice throughout the negotiations to secure the best possible outcome. It is essential that the UK Government work closely with the Welsh Government and other devolved Administrations to ensure that their negotiating strategy works for the whole of the UK, not just for England.

The Joint Ministerial Committee met yesterday, although clarity was lacking on the current position and on what future discussions will look like. As we begin the process of exiting the EU, Wales has several priorities. We must prioritise the protection of jobs and ensure business confidence in the aftermath of the referendum. Full and unfettered access to the EU single market is crucial for Wales. Welsh businesses currently benefit from our trading relationship with the EU. If we were to leave the single market, and if tariffs were to be imposed on Welsh goods, that could have a crushing impact on our manufacturing and agricultural sectors. We need certainty about funding for current and future EU programmes.

The First Minister of Wales sought an urgent guarantee, immediately following the referendum, that Wales would not lose a single penny of EU funding up to the end of the EU financial perspective, running until 2020. This month the Treasury pledged to extend the guaranteed funding for all projects agreed before the UK leaves the EU. However, it has not given any commitment to replace the funding, further into the future, that we would reasonably have expected to receive if the UK were to remain in the EU. That is vital to our universities and agricultural businesses. Wales currently receives £650 million in EU funding, in particular through the common agricultural policy and structural funding. Campaigners for leave said that Wales would not lose a single penny in European funding, and we will hold them to that promise.

As my hon. Friend the Member for Aberavon outlined, the case for revision of the Barnett formula arrangements for Wales is now even stronger, to ensure fair funding for Wales during and after the current EU programmes. The Wales Bill provides an important opportunity to consider future funding arrangements for Wales. I urge the Government to reconsider their opposition to delivering a much needed fiscal framework to Wales as part of the Bill, and perhaps the Minister will comment on that.

It is my view, and the view of my party, that EU citizens working and living in Wales now should be able to remain here after the UK’s exit from the EU. EU citizens should not be used as bargaining chips in the negotiations, and we must stamp out the unacceptable abuse that has, sadly, risen since the referendum result.

Faulty Electrical Imports

Debate between Geraint Davies and Gerald Jones

Tuesday 22nd March 2016 Westminster Hall

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I am pleased to take part in this important debate, and I congratulate my hon. Friend the Member for Swansea East (Carolyn Harris) on securing it. As I mentioned before the sitting, I apologise for not being able to stay until the end. I have to attend a Public Bill Committee.

I, too, am a member of the all-party group on home electrical safety, and I come to the debate because of the historical links that my constituency had with electrical appliance manufacturing for many years. I would therefore like to focus my remarks on issues to do with product safety and how the importation of electrical products may be damaging business and undermining consumer confidence in the UK.

In Merthyr Tydfil, we have a proud history in the manufacture of washing machines. The Hoover factory opened in Pentrebach in my constituency in 1948 as part of the Labour Government’s work to ensure manufacturing advances in the UK after the war. Hoover’s major global expansion saw factories making washing machines in Merthyr Tydfil and its famous vacuum cleaners being manufactured in Scotland. Hoover soon became the market leader in the UK because the products were made here to high standards and were not imported.

Hoover’s UK manufacturing in Merthyr Tydfil gave people jobs for life. Many generations of my constituents worked in the factory. In 1973, Hoover’s 25th anniversary in the town, 5,000 people were employed making washing machines, tumble dryers and dishwashers. Perhaps bizarrely, in the 1980s, as the Minister may recall, the Sinclair C5 vehicle was made in Merthyr Tydfil, although that mode of transport had a quick demise. Manufacturing in the UK had reached its peak, unfortunately. Tragically, it has been allowed to drift away and we now rely on imports.

On 14 March 2009, manufacturing came to an end in Merthyr Tydfil with Hoover’s closure, which meant that 337 people lost their jobs. The site is now virtually empty. The headquarters remain, along with a warehouse facility. Despite the closure and the decision to move production to the far east, Hoover is still revered in Merthyr Tydfil by its former workforce. Appliances were built locally, giving jobs to the local economy and benefiting people’s lives.

I do not want to focus just on Hoover’s decision, as devastating a blow as it was in 2009. Many other manufacturers have decided to send production overseas and now import electrical goods into the UK. How can we be sure of the credibility of the component supply chain to large companies, and how do we ensure proper quality of the finished product and that it is built to last? When production was in Merthyr Tydfil, Hoover benefited from local component manufacturers, which in turn benefited from Hoover. Hoover had greater control over the supply chain and was able to assess whether components were of sufficient quality.

My hon. Friend the Member for Swansea East has already mentioned the issues with tumble dryers that many of our constituents face. Given the wet weather in Wales, many of my constituents rely on tumble dryers, many of them made by Whirlpool, which owns the Hotpoint and Indesit brands. As we know, Whirlpool has issued a safety notice for its large air-venting tumble dryers, owing to a fire risk. The Minister will be aware of the ongoing issues, as the matter was raised in Business, Innovation and Skills questions last week. The manufacturer has advised that the machines should not be left unsupervised. Some 4.3 million machines need to be fixed, so it is clearly an enormous task for the company.

I understand that our constituents will have to wait potentially 11 months or more for appropriate repairs to be made to the faulty imported appliances. How many fires could break out in that time? Can the Minister give us an assurance as to what his Department is doing? Has he, or have his ministerial colleagues, met Whirlpool to discuss the issue?

What is even worse is that the company is trying to sell its customers who contact them with concerns a new tumble dryer for £99 that is also subject to safety concerns. As my hon. Friend the Member for Swansea East highlighted, the Government tasked Lynn Faulds Wood with reviewing product safety, and the Minister for Small Business, Industry and Enterprise said in the Government’s response to that review that she takes the issue very seriously. I am pleased to note that. However, the Whirlpool issue is a key case that needs to be given serious attention, and quickly. The UK charity Electrical Safety First, which campaigns to protect consumers from electrical accidents in the home, has provided a briefing to the all-party group.

Given the time available, I want to move on and flag up the issue of hoverboards, which the trading standards department in my constituency, along with others across the country, has recently dealt with. As the two previous speakers have highlighted, we know that more than 15,000—88%—were unsafe and detained at the border, but I am concerned about those that got through. That issue had much publicity across the country at the end of last year. Some of the stories we have heard are deeply worrying, and I want the Minister to consider what more can be done to raise awareness of the issue.

[Geraint Davies (in the Chair)]

Jim Shannon, you have five minutes.