Port Talbot Steelworks

Gerald Jones Excerpts

Tuesday 30th April 2024 Commons Chamber

[David T. C. Davies]

There are discussions going on about the possibility of building a plate mill on the site when the electric arc furnace is completed. There is nothing whatsoever to prevent a plate mill from being built. The hon. Gentleman will not be aware of all the discussions going on, but I say respectfully to him that a plate mill will not save 2,800 jobs. We face the loss of a significant number of jobs as a result of the decision to close down the blast furnaces, and even if a plate mill, a direct reduced iron plant or a hot zinc dip line were built on the site—all of which are reasonable things to consider—it would not solve the problem that 2,800 people are facing the loss of their jobs. That is why the £500 million for the arc furnace was so important, as was the £80 million for the transition board.

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

We talked earlier about the supply chain. The repercussions of this decision will be felt across south Wales, so can I ask the Secretary of State directly whether he has secured any commitment whatsoever from Tata about the future of the workers at those downstream facilities across south Wales?

[David T. C. Davies]

Yes, Tata has been clear that it was originally going to close those sites but it now expects all those sites to remain open. During the process of building the arc furnace, while the blast furnaces are shut down, it will be bringing steel in from elsewhere to make sure that the product is going into those other plants.

Welsh Affairs

Gerald Jones Excerpts

Thursday 29th February 2024 Commons Chamber

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

I start by echoing the thanks given to the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for securing the debate, and to the Backbench Business Committee for granting it.

Today, I will focus on a small number of key issues that are facing the communities I represent—areas where I believe this Government could be doing more to help, and in some cases, a lot more. The first issue I wish to raise is that of the once great Post Office, the foundation of a strong community spirit, which we in Wales are hugely proud of. In recent memory, almost every city, town and village had a local post office, once called the “front office for government”. Local sub-postmasters and sub-postmistresses knew their customers and could offer a wide range of government, financial and postal services.

Post offices were once the hub of every community—a trusted British service that was the envy of the world and the fabric of our communities—but sadly, that is now a thing of the past. We are all familiar with the truly appalling way in which the Post Office has treated its own loyal staff in the Horizon scandal, but the culture at Post Office Ltd seems to be ingrained. Post Office managers are turning their back on our communities and secretly closing post offices without any public consultation. It is an all too familiar pattern: a sub-postmaster or sub-postmistress retires or resigns. Post Office bosses initially claim that the closure is temporary, and promise to update elected representatives in 12 months if the branch is still closed. A whole year passes; with vital services closed, residents make alternative arrangements through necessity. Post Office managers then claim that it is simply not viable to reopen the branch, as there is no customer base. Is there any wonder, if a branch has been closed for a whole year?

The Post Office has pulled that trick in Merthyr Tydfil. Five years ago, Treharris post office closed when the sub-postmaster left, and no replacement has been provided. Just last week, the sub-postmaster in Pantysgallog resigned, and the Post Office—which initially said that it would be a temporary closure—was forced to admit that it had no plans to recruit. Post offices are being closed, almost always permanently, and there is zero consultation with the communities that use them. This arrogance from the Post Office cannot continue. The Government must change the rules so that if a sub-postmaster or sub-postmistress leaves and there are no plans to recruit, Post Office Ltd must consult with residents and elected representatives. That is the very least that our communities deserve.

I also want to talk about the cost of petrol and diesel, which continues to be a major issue for people right across the country. Motorists filling up their car in Merthyr Tydfil and Rhymney are paying considerably more than those in areas just a few miles away—often as much as 10p per litre more. I have been campaigning on the impact that this petrol pump rip-off is having on residents in Merthyr Tydfil and Rhymney, and have asked retailers to explain why prices are so much higher; none has been able to provide any reasonable justification.

I am afraid that, to many of my constituents, that looks like price gouging, and I agree. I have encouraged motorists to use apps such as PetrolPrices, but with prices remaining comparable in the local area, there is little scope to shop around. In Northern Ireland, the Consumer Council published a fuel price checker in September 2020, which has helped to keep fuel costs below those in Wales and England. People are continuing to suffer because of the Conservatives’ cost of living crisis, and I believe that the Government must do more to ensure there is genuine competition and to end the petrol pump rip-off in Merthyr Tydfil and Rhymney.

The last area on which I would like to focus is pension credit. As we know, the Tory cost of living crisis has hit pensioners particularly hard. It should shame the Government to their very core that almost 1 million pensioner households across the UK are estimated to be missing out on vital support from pension credit, with a staggering £2.1 billion of pension credit left unclaimed. Just think what that £2.1 billion could do for pensioners who are struggling to pay their bills. Working with the citizens advice bureaux in both Merthyr Tydfil and Caerphilly, I organised a pension credit day of action, when in a single day we helped people claim over £200,000 in missing benefits. Just imagine what the Government could do if they really wanted to. Ministers must do better in getting cash out of the Treasury and into pensioners’ pockets.

Mr Deputy Speaker, I would like to end by taking the opportunity to wish a very happy St David’s Day—dydd Gŵyl Dewi hapus—to you and to all those celebrating tomorrow.

Oral Answers to Questions

Gerald Jones Excerpts

Wednesday 5th July 2023 Commons Chamber

[David T. C. Davies]

The hon. Lady makes an important point. There is a project, which is going through the business case process at the moment, to improve the freight lines on the south Wales line to enable passenger services to run on it. I believe that there will be announcements about that shortly, when the new rail network enhancements pipeline programme comes out.

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

Considering that not a single mile of High Speed 2 track will reach Wales, and that current services between Wales and England are woefully unreliable and expensive, what steps will the Secretary of State and the Government take to improve that and ensure that those living in Wales actually benefit from HS2?

[David T. C. Davies]

The HS2 project, which was, of course, proposed by the last Labour Government and is supported, as far as I am aware, by the Labour Opposition, will benefit passengers in north Wales. The Government are committed to passengers across the whole of Wales, which is why £390 million has been spent on a range of improvements. In addition to that, we will shortly have the south Wales metro system, which is part of the Cardiff capital region growth deal.

Oral Answers to Questions

Gerald Jones Excerpts

Wednesday 24th May 2023 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

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

As fuel poverty runs rampant and families right across Wales are struggling, does the Secretary of State not realise how appalling it looks that Shell is making £61,000 a minute? When will his Government get a grip, close the loopholes worth billions and extend the windfall tax?

[David T. C. Davies]

The hon. Gentleman should be aware that the Government have extended the windfall tax and are charging very high levels of tax—indeed, about three times the usual level—on companies taking oil out of the North sea. It is extraordinary that those who call for a windfall tax on energy companies do not recognise that we are already levying it and do not want to support the Government in allowing more oil and gas to be exploited from the North sea, which will enable us to raise even more in taxation.

[Gerald Jones]

Tory Ministers seem to think that the energy crisis is all over. I am not sure when the Secretary of State last struggled to pay an energy bill, but bills are still almost double what they were before the crisis began, and the Tory Government have scrapped vital support. Does the Secretary of State agree that the way to get energy bills down for good is to back Labour’s policy to retrofit 19 million homes and reach 100% clean power by 2030?

[David T. C. Davies]

I have no idea who would be paying for the hon. Gentleman’s proposals—no doubt they are among the many things that will be paid for using the same tax about half a dozen times. He will no doubt be pleased that today inflation is down yet again, and the Government are well on course for achieving their target of cutting inflation by half as well as growing the economy.

Oral Answers to Questions

Gerald Jones Excerpts

Wednesday 19th April 2023 Commons Chamber

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

Private rental costs in Wales increased by 4.2% in the year to February 2023, the highest annual percentage change since the Tories came to power. The Government have accepted the need to uplift benefits in line with inflation, but they have completely failed to accept that the same principles should, at the very least, apply to the local housing allowance. Given that rent is the largest item of a family’s budget, can the Minister explain exactly why this is one area of policy where the Government do not seem to believe that inflation exists?

[Dr James Davies]

The hon. Gentleman will be aware that the local housing allowance rates were raised to the 30th percentile in 2020 and that there is also support through the discretionary housing payment scheme. There is, in addition, the whole array of support that has been provided through the recent cost of living pressures.

Spring Budget: Wales

Gerald Jones Excerpts

Wednesday 29th March 2023 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Newport West (Ruth Jones) on securing the debate, and the passionate way she opened it.

We can all agree that, when the Chancellor of the Exchequer presented his Budget, it was an opportunity to address the worsening impacts of the cost of living crisis, and to drive economic growth in Wales and across the United Kingdom. The Budget is also a statement of priorities, but it was clear from the lack of extra funding for our public services, as well as the bare minimum of additional support for people and businesses who need help now, that the UK Government do not have a grip on the bigger picture and are content to tinker around the edges.

The Chancellor announced that Wales would receive an additional £178 million over the next two years, as a result of spending decisions made in England, but the settlement in 2023-24 is still up to £900 million lower in real terms than expected at the time of the 2021 spending review. This was meant to be a Budget for growth but, while the London School of Economics Growth Commission, the OECD and others have highlighted the vital importance of additional public investment in the infrastructure to improve productivity and growth, the Budget contained a derisory £1 million extra in capital funding in 2024-25 for Wales.

We have had a wide-ranging debate. My hon. Friend the Member for Newport West rightly highlighted the UK Treasury’s callous clawback, which I will return to later. She also talked about the downgrading of growth, and highlighted the case of her constituent Dawn Jones. I am sure many others across Wales will relate to the concerns raised by her constituents and their experience in dealing with the Tory cost of living crisis.

My hon. Friend the Member for Caerphilly (Wayne David) raised the excellent report of the Bevan Foundation, and the evidence that the most vulnerable are affected by this Government’s policies. My hon. Friend the Member for Aberavon (Stephen Kinnock) highlighted the importance of the steel industry, its being the heart of economic growth. The hon. Member for Ynys Môn (Virginia Crosbie) picked highlights; in response to an intervention by the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) about the level of local housing allowance being far too low to meet housing needs across Wales, the hon. Member continued to talk about the Budget being overwhelmingly positive. That is definitely a matter of opinion, and not one shared by many of my constituents or others.

My hon. Friend the Member for Cynon Valley (Beth Winter) talked about the reality check of work on the cost of living crisis that was carried out last year, and about the need for fair wages for our public sector workers. In an intervention, the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) talked about the use of local authority reserves. As an ex-local councillor of 20 years, I think people often do not differentiate between free reserves and committed reserves. The vast majority of reserves held by most local authorities tend to be committed reserves, rather than reserves that they can use freely. Many do use free reserves to plug the gap, and there is more of that at the moment.

My hon. Friend the Member for Cynon Valley also mentioned that the Welsh Government were cut out of the process around the shared prosperity fund, something that many colleagues have called out and said should be rectified. It is not right that the Welsh Government are cut out of discussions of such a significant investment in Welsh communities.

[Wayne David]

Does my hon. Friend share my concern that local authorities believe there is, unfortunately, a distinct possibility that they will be unable to spend the moneys that have been allocated, and we will see yet another clawback by the Government up here?

--- Later in debate ---

[Gerald Jones]

I absolutely agree. The arrangements with local government about the timescales for the funding have been woeful. Given everything that local authorities have to contend with at the moment, it is unfair to expect them to meet the unrealistic timescales set.

My hon. Friend the Member for Cynon Valley also talked, like other Members, about the local housing allowance rates. I will return to that later. The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) talked about the OBR analysis of the woeful spring Budget, and the impact of rising inflation. He raised concerns about the universal tax cut through the pension allowance benefiting the wealthiest 1%, and about plans for investment zones.

The hon. Member for Ceredigion (Ben Lake) highlighted the energy companies and the call for early renegotiation of contracts, which could significantly help many people across the country who are dealing with rising energy costs. He raised specific concerns about off-grid customers and the need for an economic strategy.

My hon. Friend the Member for Neath (Christina Rees) joined other Members in raising concerns about the local housing allowance rates in her constituency. All the evidence suggests that, across Wales, the rate is woefully inadequate. Change has been called for many times, and the Government would do well to listen to the concerns raised by the Bevan Foundation and address the issue. My hon. Friend also highlighted her concerns about universal credit and the rising use of food banks.

Earlier this month, the Senedd passed the Welsh Government’s budget for 2023-24, which provides significant investment for the NHS, social care and schools. The Welsh Government will, of course, consider how best to use the small amount of additional funding announced by the Chancellor to meet the needs and priorities of Welsh people.

Ahead of the Budget, the Chancellor was asked to provide support for households, to increase funding for public services and to invest to grow the economy. While it is positive that he listened to the many calls to maintain the energy price guarantee at £2,500 from April, it is disappointing that he refused to take the other practical actions that were called for—measures that could have made a real difference to those most exposed to the cost of living crisis.

The reality of the Chancellor’s Budget is that it represents sticking-plaster politics, with no growth for the many. The OBR has confirmed that the hit to living standards and working people’s pay over the past two years is the largest since comparable records began. In fact, the only permanent tax cut in the Budget, as we have heard, was the £1 billion cut for the richest 1% of earners, via changes to pension allowances. The Resolution Foundation found that a high earner with a £2 million pension pot will get a tax cut of almost £250,000. How utterly unfair, yet it is probably not a surprise, coming from this Government.

Compared with the forecast in 2021, the OBR now thinks the average interest rates on outstanding mortgages will be twice as high. The Tory mortgage penalty has hit £1,950 for a typical household remortgage, thanks to the Tories crashing our economy with their kamikaze Budget last September.

The OBR revealed that the Government have left £10.4 billion on the table last year and this through holes in the windfall tax. Labour announced a form of windfall tax on oil and gas producers in January 2022. The Government announced an ineffective windfall tax in May 2022. Just think what that £10.4 billion left on the table could have made to the lives of people in Wales, and across the UK, supporting them against rising energy costs and other cost pressures. Is it not the case that Tory MPs looked at the state of the nation after 13 years of Tory Governments, and at the cost of living crisis that families are facing, and chose not to vote with Labour against the pension changes, but to benefit those with the biggest pension pots?

The Welsh Labour Government have put in place a range of measures to help people through the Tory cost of living crisis. The Welsh Government fuel support scheme extends to 400,000 homes, with eligible households receiving a £200 payment to help them pay their energy bills. The council tax reduction scheme helps more than 270,000 households in Wales with their council tax bills; around 220,000 households pay nothing at all. More than 300 warm hubs have been set up across Wales thanks to Welsh Government funding.

The hon. Member for Ynys Môn mentioned the Holyhead breakwater. The Holyhead port is one of most important economic drivers in north Wales. The £20 million funding for the breakwater in the Budget follows Welsh Government calls and underlines the importance of the port. The announcement is welcome but long overdue, and the proposal is viable only because of Welsh Government commitments.

Hon. Members also raised freeports. Wales has a better deal on freeports thanks to the Welsh Labour Government, given that the Tory Government proposals were for freeports in Wales with no extra funding, and there was a threat to impose a freeport from the centre without involving the Welsh Government. Through grown-up politics, hard work and negotiation, the Welsh Labour Government convinced the UK Government to deliver a better deal for Wales, which means that UK Ministers will provide at least £26 million of non-repayable starter funding for any freeport established in Wales. The Tories tried to rip off Wales and ride roughshod over the devolution settlement, but Labour in Wales stood up for Welsh communities and businesses. Welsh Tories in Cardiff and Westminster did not fight for them.

I raised the callous clawback from the Welsh Government with the Minister yesterday, and my hon. Friend the Member for Newport West, the right hon. Member for Dwyfor Meirionnydd and the hon. Member for Ceredigion spoke about it today. I hope the Minister shares our concerns. The Welsh Finance Minister has made it clear that the actions of the UK Treasury were wholly unacceptable, as the Welsh Government stayed within their overall budget. The UK Government refused to switch between the revenue and capital budgets—a process that, as the Minister knows, has been agreed many times before. It is all the more questionable given that Welsh Government underspends during the exceptional financial year 2020-21 were significantly below those of UK Departments. The Treasury’s arbitrary application of its guidance in this instance remains deeply regrettable, and has left Wales deprived of £155 million.

As of last month, only £392 million of the levelling-up fund—just 8% of the total—had been spent since November 2020. Many of the projects that have been promised to local communities are a long way from being delivered. Labour believes in the importance of bringing power closer to communities. The Government’s replacement for EU structural funds has been a disaster that has left the poorest communities in Wales empty handed due to unfair formulas, and the distribution of funds is in the hands of Departments that are not even trusted by the Treasury.

Labour is committed to working in partnership with the Welsh Government to set the policy agenda for the use of structural funds. When we were part of the EU, Wales was in receipt of EU structural funds that contributed to a number of programmes, in particular on regional development and employment. The shared prosperity fund was announced in 2017, partly to replace the EU structural funds, but, as we have heard, the governance was changed to cut out the Welsh Government from that process. The effect of that decision is that the Tories have failed to provide an equivalent replacement regime to EU structural funds. They have centralised decision making, cut funds and allocated the remaining resources inefficiently.

As a number of Members said, universities in Wales have been at the forefront of innovative ideas that could change the way we live, thanks to £370 million of EU structural funds that have been invested in university-led projects in Wales. The structural funding from the EU is suddenly coming to an end, so Wales is at a cliff edge. Welsh universities face the loss of 1,000 skilled jobs from 60 projects focused on generating green growth. Hopefully, the Minister will enlighten us about what the Government intend to do to prevent that.

Labour is committed to bringing power closer to communities, and therefore believes that we should work in partnership with the Welsh Government to deliver structural funds in the future. A UK Labour Government would restore Wales’s role as decision maker and budget holder for the relevant structural funds. We would work with Wales to set the UK policy agenda and the use of structural funds, allocate money and agree a robust evaluation process.

The 2023-24 Welsh Government budget has been one of the toughest since devolution because of the significant financial pressures caused by the UK Government’s mismanagement of the UK economy, made worse by the kamikaze mini-Budget last September. The UK Government hold many levers relating to energy costs, and there must be greater support for businesses—particularly energy-intensive industries—and charities. Sadly, the Chancellor’s spring Budget misses the big picture, lacks ambition and fails to demonstrate how he intends to grow the economy.

The Welsh Government settlement in 2023-24 is, as I have said, still £900 million lower in real terms than expected at the time of the 2021 spending review. This was meant to be a Budget for growth, but the derisory £1 million in capital funding for Wales shows that the UK Government really have no interest in building their way out of the current financial crisis. For the Welsh Government to deliver further on behalf of the people of Wales we need a strong partnership between the Welsh Government and a UK Labour Government, working together to deliver on the priorities of the people of Wales and ensuring that Wales has a strong part to play in a strong United Kingdom. To that end, the general election cannot come soon enough.

--- Later in debate ---

[Dr Davies]

Inevitably, those at the pinnacle or conclusions of their careers often earn a lot more, but they also have a great deal to offer the economy and society in general. It is difficult to be too black and white about those who are of benefit and those whom we need to retain in the workforce. As the hon. Gentleman knows, in some respects the Budget centred on trying to ensure that the workforce are there for the economy that we need.

My hon. Friend the Member for Ynys Môn referred to childcare. I hope that the Welsh Government will replicate our offer to parents of 30 hours’ free childcare for children between the ages of nine months and four years, and that they will not, as the First Minister appeared to suggest the other day, be different for the sake of it.

The shared prosperity fund has been raised. This is a complicated matter, but the Welsh Government have alleged that Wales is being short-changed. However, I argue that they are making flawed and hypothetical assumptions, and it is my understanding that Welsh Government officials in the Finance Committee in Cardiff Bay have broadly accepted that. It is important to compare like with like. The SPF is intended to replace the European regional development fund and the European social fund, while the remaining funds, covering agriculture and fisheries, are accessed through other means. Different time periods can be looked at as well—it is not just about when the funding is received, but about when it is spent. The funds do ramp up and down in the UK Government’s intentions, as they did with the EU. The Institute for Fiscal Studies has validated the UK Government’s approach. I also emphasise the fact that the local growth funds, including the levelling-up fund and the community ownership fund, are in addition to the shared prosperity fund, so actually Wales has a record level of investment coming from the UK Government.

[Gerald Jones]

The Minister mentioned the shared prosperity fund, which is significant investment that could transform communities across Wales. He also highlighted the positive joint working of the Welsh and UK Governments on freeports. Why does he think that the UK Government have frozen out the Welsh Government in the case of the shared prosperity fund, when there is an example of good working together? Why can that not apply across the board?

[Dr Davies]

My understanding is that the Welsh Government have been feeding into the general approach on shared prosperity fund allocation. In my local area, there is a Welsh Government representative on the body that advises on the funding. There are a range of contributors, as there should be. Proper devolution is the key point, in that local authorities are taking a leading role.

Hon. Members are right to raise the issue of universities, because of course universities in Wales have been dependent on European structural funds. My understanding is that Universities Wales has consistently expressed concerns that the Welsh Government do not invest an equal amount in Welsh universities compared with England. It has also highlighted that the lower level of core funding places Welsh universities at a disadvantage compared with their counterparts in England when competing for UK-wide research and development funding opportunities. To be constructive, I emphasise that the Secretary of State for Wales has asked universities to provide details of the economic value of programmes that were previously funded by the EU structural funds. He and I are very interested in trying to assist on that.

25 Years of Devolution in Wales

Gerald Jones Excerpts

Tuesday 28th March 2023 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir Christopher. I congratulate the hon. Member for Delyn (Rob Roberts) on securing the debate, and I associate myself with his condolences to First Minister Mark Drakeford and his family.

It is a shame that the hon. Member has used the debate as an opportunity to talk down devolution. It seems he has done so to score political points, which is such a shame. His view is also at odds with the views of the vast majority of the people of Wales. A large number of surveys on devolution have consistently confirmed that people across Wales support devolution and, in some cases, the devolution of further powers. Those who support rolling back devolution or, at the other extreme, independence, are very much polarised on the margins. The vast majority of people are supportive; they can see the benefits and the evidence of what devolution has delivered for Wales under the stewardship of Welsh Labour.

The Labour party is the party of devolution. The UK Tory Government have no respect for devolution or devolved Government, and have taken every opportunity to undermine the devolution settlement. Devolution is one of the proudest achievements of the last Labour Government. Unlike the Tories, a UK Labour Government would respect devolution and the Sewel convention. In a report by the commission on the UK’s future, led by the former Prime Minister Gordon Brown, Labour proposes ways of modernising and updating our constitutional arrangements, improving the process of intergovernmental relations and putting more power in people’s hands. The Tories have overridden the Sewel convention on several occasions in recent years, disrespecting the devolution settlement.

Tory attacks on Wales and on Welsh Labour are born from desperation. They are fiddling while Rome burns in order to deflect attention from the shambles at Westminster, their failure to tackle the cost of living crisis effectively and their mismanagement of the economy. Historic underfunding of Wales has torn billions of pounds out of the Welsh budget, while the Tory-made economic crisis has only brought greater costs.

The spring Budget makes no provision for public sector pay and includes no funding for health or social care. The Budget was the Tories’ chance to use their financial levers and capacity to provide comprehensive and meaningful support, as well as to invest in public services, public sector pay and economic growth.

[Rob Roberts]

I thank the shadow Minister for proving my point succinctly: we have already had 25 years of saying that everything in Wales is London’s fault, so can we not have another 25 minutes saying it is all Westminster’s fault and instead address some of the points of the debate? What are the Welsh Government doing? How is devolution working? What are the outcomes for people in Wales and how are they making our lives better? It is not working.

--- Later in debate ---

[Gerald Jones]

Yet again the Conservatives have fallen woefully short, failing the people of Wales. We know the Tories promised Wales would not be a penny worse off, with EU regeneration funds replaced in full, but that is far from the case, with huge uncertainty over the shared prosperity fund leaving Wales worse off, while the scandal of levelling up for Wales has meant a Tory smash-and-grab, wrapped up in a sustained attack on devolution, instead of collaborative work with the Welsh Government and local authorities in Wales.

In his opening speech, the hon. Member focused on health, so let me inform him about some of the things the Welsh Government are doing across Wales and the difference a Labour Welsh Government have made. They will always invest to protect health and social care. We spend 14% more per person on health and social care in Wales than in England. While 13 years of Tory Government have been ruining and running our public services into the ground, we have been taking difficult decisions to provide a higher level of NHS funding per head in Wales, where we know the population is older, sicker and less well off.

The NHS is facing similar challenges across the UK, yet performance at major accident and emergency departments has been better in Wales than in England for the last five months. Waiting lists are growing faster in England than in Wales. In the six months to December 2022, waiting lists increased 0.4% in Wales and by 6% in England.

[Rob Roberts]

On that point, will the hon. Gentleman give way?

[Gerald Jones]

I think the hon. Gentleman has said quite enough for now. In the last 12 months, waiting lists have increased by 7% in Wales and by 19% in England.

With the industrial action taking place, Welsh Labour Ministers have got around the table with trade unions, taking tough decisions to find whatever resources they can to negotiate a resolution to the current pay dispute. There is not enough money in the budget for a fully consolidated pay offer, but the Tories have not provided an adequate level of funding for years.

Welsh Labour is training more doctors and nurses year on year. As my hon. Friend the Member for Llanelli (Dame Nia Griffith) said, Welsh Labour has implemented the real living wage for social care workers, and has ensured that prescriptions and hospital parking are free, and care charges capped. Prescriptions are free in Wales, but people in England are being forced to go without medication they desperately need because they can no longer afford it. The NHS bursary was axed in England in 2016, but has been protected in Wales because of Labour’s values. In England, the 40% drop in student nurse applications over subsequent years has been widely attributed to the axing of the bursary.

In transport, despite having 5% of the UK population, 11% of track miles and 20% of level crossings, Wales receives only between 1% and 2% of rail enhancement funding. That is not a fair funding settlement.

The reality is that only Labour will devolve economic power and control out of Westminster. The next Labour Government will return power over its economic destiny to Wales, and the decision-making role for the Welsh Government on structural funds will be restored.

There is a number of examples of businesses in Wales receiving more support during the recent pandemic. Vaccination rates were higher, and delivery in Wales was consistently faster than in England. PPE procurement was transparent and cost-effective, in stark contrast to the experience at Westminster under the Tories. Welsh Labour’s trusted decision making protected lives and livelihoods, which was without doubt reflected in Welsh Labour’s historic 2021 Senedd election victory.

To work even more effectively, devolution needs a strong partnership between the Welsh Government and a United Kingdom Labour Government, working together to deliver the priorities of the people of Wales and ensuring that Wales has a strong part to play in a strong United Kingdom. I hope we will not have too long to wait for that, depending on when the Prime Minister calls the next general election.

--- Later in debate ---

[Dr Davies]

My hon. Friend makes a strong argument. In fact, he will be aware that one of the Labour Members in the Senedd called for greater powers and autonomy for north Wales in response to the recent roads review, and today a representative of the business community in north Wales has called for a directly elected mayor for north Wales. It comes back to my point that devolution should be true in nature; it should be led by local people and local representatives, which is not always the case at present.

Under the Welsh Labour Government, the economy in Wales is growing at a slower rate than in the rest of the UK. In education, Wales is, sadly, at the bottom of the PISA rankings compared with other parts of the UK. In the health service, we see abysmal performance and outcomes data, and we also see what I regard as very detrimental policies on road building and tourism. All of that is despite the UK Government providing the Welsh Government with record funding, which is, as we have heard, higher per head of population than in England.

The UK Government have a duty of care towards all British citizens and it is important that UK-wide comparable data is used to justify and learn from different policy approaches across the country. The days of “devolve and forget” have to be over. I am deeply concerned that, despite the challenges the Welsh economy faces and failing devolved public services in Wales, the Welsh Government’s unrelenting focus is often on constitutional matters, including increasing the number of politicians in Cardiff Bay and changing its voting system, which some have suggested would be at a cost of £100 million over five years.

Devolution in Wales means that Wales has two Governments. Both should be fully focused on the issues that really matter: levelling up our economy, creating jobs and supporting people with the cost of living. The UK Government’s investment to address those priorities, through initiatives such as the levelling-up fund and our support with energy costs, highlights the benefits that Wales enjoys from being part of the United Kingdom.

I want to emphasise something that is not always said. A very clear majority in Wales believe in the United Kingdom and are proud to be part of it, and this place—Parliament—will always have a critical role in delivering for Wales and its people. Our approach to devolution is underpinned by our commitment to work collaboratively with the Welsh Government and all the devolved Administrations.

[Gerald Jones]

On the point about collaboration with the Welsh Government, does the Minister think the way the UK Government clawed back funding from the Welsh Government is unacceptable? My understanding is that issues around switching between revenue and capital have been agreed many times before. The level of underspend is significantly below that of some other UK Departments. Does he agree that was a pretty poor show by the UK Government?

[Dr Davies]

The hon. Gentleman puts that in an interesting way. The other side of the story is that all who are entrusted with spending public money should do so carefully, and should make efforts to comply with the rules and arrangements around that money. The other way of looking at that is that the Welsh Government failed in their duty to spend wisely the money that was available to them.

Moving on from that, the landmark agreement reached last year between the UK and devolved Governments further strengthens our intergovernmental structures. The new structures provide a firm foundation to deepen our partnership working. Our joint work on city and growth deals in Wales, as well as our announcement last week that we will establish two freeports in Wales, following agreement with the Welsh Government, exemplify our approach to collaboration.

Over the past 25 years, we have seen dramatic changes in the way in which Wales is governed. It is clear that a wide range of views exists over how that might change in future, but I urge all to focus not on the constitutional debate, but on delivering on the real priorities for the people of Wales.

Draft Local Government and Elections (Wales) Act 2021 (Corporate Joint Committees) (Consequential Amendments) Order 2023

Gerald Jones Excerpts

Wednesday 22nd March 2023 General Committees

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

It is a pleasure to serve under your chairmanship, Mr Vickers. As the Minister has outlined, the order allows for technical amendments. The Local Government and Elections (Wales) Act 2021 provided for the establishment of corporate joint committees, which enable and support the delivery of important local government functions regionally. A small number of outstanding technical issues emerged during implementation of the CJCs, including in relation to taxation status and pensions.

When issues arising from Senedd legislation require amendment of UK-wide legislation in a way that is beyond the Senedd’s legislative competence, an order under section 150—“Power to make consequential provision”—of the Government of Wales Act 2006 can be developed in partnership with the Government in Westminster. The changes will resolve key operational issues that CJCs have raised, and allow them to plan with confidence for future financial years.

Section 150 supports the delivery of the commitment in the Welsh Government’s programme for government to ensure that each region in Wales has effective and democratically accountable means of developing its economy. The Welsh Government have established CJCs to support and encourage regional working through a coherent, consistent, simplified and democratically controlled mechanism. CJCs will allow partners to deliver their regional ambitions, develop successful regional economies, and ensure local growth in a collaborative and strategic way. As the order has been developed with the Welsh Government, and makes technical amendments that result in a coherent, democratically controlled mechanism that operates regionally, we do not oppose it.

Oral Answers to Questions

Gerald Jones Excerpts

Wednesday 1st March 2023 Commons Chamber

[Dr Davies]

My right hon. and learned Friend is of course right that co-operation is always a good thing, and in fact interconnectors are critical to our energy security. Only last week I met a company proposing to connect mainland Great Britain with the Republic of Ireland through a second interconnector.

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

We know that oil and gas producers have been making record profits for more than 18 months, but the Government’s paltry windfall tax began in May last year. How can the Government justify leaving billions of pounds of excess profits untouched while so many people across Wales are struggling with household bills and the rising cost of living crisis?

[Dr Davies]

Mercifully, energy costs now appear to be on a downward trajectory, but the hon. Gentleman will be aware that up to 70% in tax has been taken from energy producers through the windfall tax, which is bringing a great deal of money into the Treasury to help to fund the support packages that people are relying on.

Oral Answers to Questions

Gerald Jones Excerpts

Wednesday 23rd November 2022 Commons Chamber

[Dr Davies]

I certainly will. I look forward to attending the royal Welsh winter fair next week, when I will be meeting the NFU. Wales has a major role in achieving increased exports and, when it comes to lamb, trade deals with the Gulf Co-operation Council, among others, could be key.

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

I too welcome the Minister to his new role. He will know how important lamb exports are to Welsh farmers and the Welsh economy. Exports to the US are a drop in the ocean compared to the damage his Government have done with the Australian and New Zealand trade deals. We know his colleague the right hon. Member for Camborne and Redruth (George Eustice) said:

“I no longer have to put such a positive gloss on what was agreed…the Australia trade deal is not actually a very good deal…We did not need to give Australia or New Zealand full liberalisation in beef and sheep—it was not in our economic interest to do so”.—[Official Report, 14 November 2022; Vol. 722, c. 424.]

Will the Minister now admit his Government have sold out Welsh farmers?

[Dr Davies]

The hon. Gentleman will recognise that we import more from Ireland than from Australia. In fact, the Australian and New Zealand markets are very much in the rapidly expanding markets of south-east Asia. We need to look at the pros and cons of trade deals, and there are certainly many pros to the trade deals for the British economy.