Guto Bebb
Main Page: Guto Bebb (Independent - Aberconwy)Department Debates - View all Guto Bebb's debates with the Wales Office
(8 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate the hon. Member for Cardiff South and Penarth (Stephen Doughty) on his speech and on securing this debate. It is important that Westminster is still relevant to the communities that we represent in Wales, and highlighting such issues in Westminster Hall debates is appropriate and correct. He said that he does not expect me to have all the answers, and indeed it would be inappropriate for me to respond to some of the points that have been raised because many of them are issues for the Welsh Government and for City of Cardiff Council, which as part of local government in Wales is answerable to the Welsh Government. I will have to restrain myself from commenting on devolved areas. It is important to place this debate in context and to respond to the undevolved issues, and I will particularly respond to the questions on the tax allowance system. Additionally, it is important to touch on the Crown Estate’s position in the sales process to try to allay some of the fears he raised.
On the background to the debate, I fully subscribe to the hon. Gentleman’s comments on the coal exchange, which is an iconic Welsh building. We should be proud that Wales was able to dictate the price of coal throughout the world, and we should trumpet that the first £1 million business transaction—the sale of coal to France—happened at the coal exchange. We should talk about that when we discuss the history of Cardiff but, in the context of Cardiff bay, this debate is also an opportunity to highlight the way in which Wales has developed. We should proudly boast of the revitalisation of Cardiff bay and highlight the economic impact of the changes in Cardiff that have been secured through the work of successive Governments here in Westminster, in co-operation with Governments in Cardiff bay—it is an example of the two Governments working together and of the local authority being proactive in redeveloping an area that was ripe for redevelopment. This is a success story, and there is no doubt that the coal exchange is an iconic building at the centre of the proposed redevelopment of Cardiff bay.
When we talk about redevelopment and business opportunities in Cardiff, it is no bad thing to trumpet, for example, the Cardiff city deal. I represent a north Wales constituency, and I often hear the accusation that all the investment in Wales goes to Cardiff, but it is important to point out that the scale of the Cardiff city deal is not confined to the city of Cardiff; it will have a huge impact on all the areas surrounding Cardiff. Indeed, a significant proportion of the Welsh population will be affected by the Cardiff city deal, which has secured a £1.2 billion investment on a cross-governmental level. I am sure that every hon. Member in this Chamber would welcome that.
Cardiff is a city that is going places and performing extremely well in attracting inward investment. There is no doubt that the Cardiff bay area has been crucial to the refocusing of Cardiff in the mind of inward investors as a city with a “can do” attitude, which has made a difference to job creation throughout the area and south Wales.
Craig Williams
There is a direct comparison between the scale of regeneration in Cardiff under the Cardiff Bay Development Corporation, which was formed under the previous Conservative Government, and the city deal in partnership with the Wales Government. It is a national disgrace that we are debating the future of the coal exchange and that it has been left to fall down through the inaction of the Labour Welsh Government. The impression has been given that the officers run City of Cardiff Council, which has a Labour cabinet.
Mr George Howarth (in the Chair)
Order. That is very lengthy for an intervention.
Guto Bebb
Concerns have been raised by my hon. Friend the Member for Cardiff North (Craig Williams) and by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on the inactivity, or otherwise, of the Welsh Government. It is not for me to comment on that, but I am sure that the hon. Member for Cardiff South and Penarth will be making his views known in due course.
Two specific issues have been raised to which I can respond. First, I cannot respond to the sales process adopted by City of Cardiff Council, but it is only right and proper that I address the involvement of the Crown Estate, about which the hon. Gentleman expressed concern. It is clear that the whole process was subject to the escheat process, which means that the building was never owned by the Crown Estate. As such, the Crown Estate was neither consulted nor involved in the process by which the property’s ownership is being transferred. That is not unique; it is a pattern that can be seen in many circumstances involving the Crown Estate. The actual decision-making process will be for City of Cardiff Council and the Welsh Government. Although the Crown Estate is technically involved, it is not odd that it was not consulted and did not provide any input in the process.
The hon. Gentleman mentioned the tax allowance scheme, and it is fair to say that the business premises renovation allowance is central to the redevelopment plan. He is right to highlight the fact that the scheme will be coming to an end at the end of this financial year at the end of March 2017. He is also correct that concerns have been raised about the way in which the scheme has been utilised in the past. Those concerns, which were raised, I think, back in 2011-12, have been addressed by Her Majesty’s Revenue and Customs, and it was stated in summer Budget 2015 that the scheme would be coming to an end. That is still the case. It is important to highlight the fact that the BPRA is a capital allowance scheme, and my understanding is that under such schemes any claim for the allowance would have to be made retrospectively, after the expenditure is made. It is also important to highlight the fact that any claim for a capital allowance under such a scheme would have to refer to expenditure incurred during the 2016-17 financial year. Any expenditure incurred after that point would obviously be outside the scope of the allowance scheme, which is a fairly important point.
Guto Bebb
I apologise, but I am afraid that I have only one minute.
The hon. Gentleman’s concerns have been heard, if nothing else. By raising this issue in Westminster, he has ensured that the concerns of tenants, the local community and elected representatives have been heard. The concerns raised in relation to the tenants of the coal exchange are valid and should be addressed, and everyone would agree that the redevelopment of such an iconic business should be open and transparent and should have the support of the local community. However, on the issues relating to the involvement of the Westminster Government, I restate that the Crown Estate process has been par for the course. In the same way, the concerns raised about the tax allowance scheme are valid if this redevelopment does not happen before the end of March 2017 but, as it currently stands, the scheme is still in existence.
Question put and agreed to.