Wales: Regional Development Funding

Gerald Jones Excerpts

Tuesday 7th May 2019 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir Graham. I congratulate my hon. Friend the Member for Aberavon (Stephen Kinnock) on the case that he made.

As we have heard, Wales has been a net beneficiary of European regional development funding. In recent years we have seen towns and villages across the south Wales valleys transformed and regenerated, much of which has been due to European structural development funds. Wales has received millions of pounds more than it has contributed in recognition of the deprivation that exists.

Over the past 15 years, the upper Rhymney valley in my constituency has benefited from about £16 million in EU structural funds for regeneration projects, while in the Merthyr Tydfil part of my constituency the figure is £35.8 million. Merthyr Tydfil’s town centre has benefited from significant regeneration, from a brand new college development to the creation of the hugely popular public space that is Penderyn square, which is a real focal point for a renaissance of Welsh culture and heritage, including the annual Merthyr Rising festival, which takes place over the spring bank holiday weekend later this month.

We have also seen regional projects, such as the dualling of the A465 heads of the valleys road, which links the Merthyr Tydfil and Rhymney parts of my constituency and is a hugely important road link from west Wales across the heads of the valleys to the M5 and the midlands. That has all been made possible with the support of regional development funding from the EU.

In my previous life as a councillor for the New Tredegar ward in the upper Rhymney valley, I was heavily involved in the New Tredegar regeneration partnership. At that time, in 2001, the then Labour Government secured objective 1 funding for the south Wales valleys and west Wales, which resulted in billions of pounds of funding for crucial regeneration across the region.

The New Tredegar regeneration strategy helped to secure about £28 million for the community from a range of sources, including local regeneration funding from the Welsh Labour Government, which have helped to support and regenerate the Welsh valleys communities. The catalyst for the investment, however, was about £6 million of European funding. New Tredegar has new small business units, a new road, a community school, a museum, a community resource centre and a community café, all of which have helped to breathe new life into a community that was deeply scarred following the collapse of the coal industry under Thatcher. Regional development funding was essential to begin the process of regenerating valley communities.

Mrs Thatcher came to power exactly 40 years ago this weekend, which heralded one of the most difficult economic periods in modern history for many of the communities in Wales and created significant deprivation. The Thatcher Government ripped the heart out of our communities, threw countless people’s jobs on the scrapheap and decimated villages and towns across south Wales without any plan to replace the jobs that were lost. The economic decline of that period can still be felt today, despite the investment in the valleys by the last Labour Government.

It was not just the jobs in the coal industry that were lost; there were many support industries. At the bottom of my street when I was growing up was Evans Coaches, a small family-run coach company that had taken miners to work since the 1930s. The company did other jobs, but that was its main business. Some 15 drivers worked there, as well as support staff, all of whom were local. The company went out of business after Thatcher closed the pits. It is one of many heart-breaking examples.

I have outlined the history of the communities I represent and highlighted why the economic deprivation exists. We benefited from the regional development fund simply because we needed it. It is essential that we have clarity on a future regional development fund, known as the shared prosperity fund. A few weeks ago, during Wales questions, I asked the Secretary of State about it, but I received little response. I hope that the Minister can provide some answers about how it will work. We were promised that we would not lose a penny when we left the EU. We need answers, because the uncertainty cannot go on.