Oral Answers to Questions Debate

Full Debate: Read Full Debate
Department: Wales Office

Oral Answers to Questions

Guto Bebb Excerpts
Wednesday 25th May 2016

(8 years, 6 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Christian Matheson Portrait Christian Matheson (City of Chester) (Lab)
- Hansard - - - Excerpts

1. What recent discussions he has had with the Secretary of State for Transport on rail electrification in Wales.

Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
- Hansard - -

This Government’s rail investment strategy is historic in its scale and ambition, and will benefit passengers in both north and south Wales. We are electrifying the Great Western main line all the way to Swansea, and we are developing the north Wales main line through a £43 million programme of modernisation and investment.

Christian Matheson Portrait Christian Matheson
- Hansard - - - Excerpts

The Department for Transport seems to be making precious little progress on the Crewe to Chester-north Wales coast electrification, so will the Minister get together with his DFT colleagues and perhaps the Welsh Assembly Government, and I will even come along myself, to get a full engineering survey to find out the costs and the timescale for the electrification process, which is so important to the growth of the area?

Guto Bebb Portrait Guto Bebb
- Hansard - -

I understand the importance of the north Wales main line to the hon. Gentleman’s constituency and the whole of north Wales. We are engaged in a £43 million programme of investment and modernisation and we are seeing the benefits of that investment. For example, there has already been vast improvement in services from Chester to Euston, which also benefits north Wales. I would thoroughly welcome the opportunity to discuss this further with the hon. Gentleman as part of our strategy for a north Wales growth deal.

James Davies Portrait Dr James Davies (Vale of Clwyd) (Con)
- Hansard - - - Excerpts

Will the Minister join me in welcoming the recent decision by the Office of Rail and Road to permit regular new direct rail services from north Wales and Chester to Manchester airport? Does he agree that journey times remain too lengthy? With that in mind, will he encourage Network Rail to increase line speeds and pave the way for electrification by prioritising the replacement of Victorian signalling systems—works that had been due for completion last year?

Guto Bebb Portrait Guto Bebb
- Hansard - -

My hon. Friend touches on the crucial point. I pay tribute to his work since he came into the House. I remember his first Adjournment debate on north Wales transport links, in which he talked about the importance of the north Wales rail line and the A55. He is right to highlight the fantastic investment from Arriva Trains, which will see a tripling of the services from Llandudno in my constituency to Manchester airport. That development is most welcome to people in north Wales. I thoroughly accept that we need to modernise the signalling system, which is why we have a £47 million programme of investment during control period 5 and control period 6. That has slipped somewhat, which is a shame, but it is interesting to note that it did not preclude the decision by Arriva Trains to increase its services dramatically.

Chris Elmore Portrait Chris Elmore (Ogmore) (Lab/Co-op)
- Hansard - - - Excerpts

When the Secretary of State was serving as the Under-Secretary, he met my predecessor to discuss the Pencoed level crossing, which causes a significant amount of chaos in the town and the Ogmore constituency. Will he agree to meet me and constituents from Pencoed to carry on those positive discussions about improving the Pencoed crossing?

Guto Bebb Portrait Guto Bebb
- Hansard - -

I welcome the hon. Gentleman to his place. I am aware that the Wales Office has been working with local government and the Welsh Government in relation to the Pencoed issue. I would be delighted to meet the hon. Gentleman—after all, my first by-election was in Ogmore. It was a very wet by-election. I would be delighted to meet residents of Pencoed once again.

Ian C. Lucas Portrait Ian C. Lucas (Wrexham) (Lab)
- Hansard - - - Excerpts

There is great momentum in north Wales and north-west England to improve transport links. This is a time for the Welsh Government and the UK Government to work together to improve those links. May we therefore have candour? The £43 million that the Minister referred to was actually investment by the Welsh Government, so will the UK Government step up to the plate and invest a penny piece in infrastructure in north Wales? That would be very welcome.

Guto Bebb Portrait Guto Bebb
- Hansard - -

It is important and imperative that we work together—the Welsh Government, local authorities and the UK Government—in developing transport links throughout north Wales. That is why we have opened the door for a north Wales growth deal, on which we are working in partnership with the Mersey Dee Alliance and the North Wales Economic Ambition Board. The hon. Gentleman is right to say that a real, effective change in north Wales will depend upon co-operation between Westminster and the Welsh Government.

Susan Elan Jones Portrait Susan Elan Jones (Clwyd South) (Lab)
- Hansard - - - Excerpts

The new Welsh Government are ready; cross-party and cross-border, Members of Parliament and local authorities are ready; and most important of the lot, we north Walians are very ready. May we have a commitment for proper electrification so that we end up with a growth deal that is worth the name?

Guto Bebb Portrait Guto Bebb
- Hansard - -

It is imperative that we look carefully at the best value for money from investment in our transport infrastructure. I accept that there is a need to work together, but I also highlight the fact that the CBI and the Federation of Small Businesses this morning called for more action from the Welsh Government. We hear that £200 million has been allocated for the A55, for example, but we have yet to see any action. We do need to work together; finger-pointing does not help.

Stephen Kinnock Portrait Stephen Kinnock (Aberavon) (Lab)
- Hansard - - - Excerpts

2. What steps the Government are taking to support the steel industry in Wales.

--- Later in debate ---
Lord Bellingham Portrait Sir Henry Bellingham (North West Norfolk) (Con)
- Hansard - - - Excerpts

4. What assessment he has made of the effect in Wales of the Government’s measures to support small businesses.

Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
- Hansard - -

Small businesses are leading the economic recovery in Wales. There are now 30,000 more small and medium-sized enterprises in Wales, employing 65,000 more people than in 2010. With SMEs accounting for over 99% of all businesses in Wales, the UK Government fully recognise their important contribution to the growth of the Welsh economy.

Lord Bellingham Portrait Sir Henry Bellingham
- Hansard - - - Excerpts

The Chancellor’s recent Budget announcement that business rates for the smallest businesses will be either greatly reduced or removed has gone down very well. It will have huge advantages for small shops in particular. What steps are the Minister and the Secretary of State taking to make sure that businesses in Wales will also benefit?

Guto Bebb Portrait Guto Bebb
- Hansard - -

My hon. Friend is perfectly right to say that the business rates announcement was welcomed by small businesses in England. The Wales Office is calling on the Welsh Government to replicate the steps taken in England, in order to ensure that small businesses in towns and cities across Wales benefit in the same way from the changes that are being implemented in England, which will allow them to grow and to employ more people in Wales.

Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
- Hansard - - - Excerpts

The Welsh Government have done well in attracting inward investment, but in terms of business confidence and Brexit, what will the UK Government do to shore up certainties about the Swansea bay lagoon, electrification and supporting Swansea with a city deal?

Guto Bebb Portrait Guto Bebb
- Hansard - -

The hon. Gentleman should be aware that the Wales Office is working very closely with the Treasury to develop a Swansea city deal, which will include the electrification of the main line to Swansea. We are also proposing a review of the Swansea bay tidal lagoon in order to look at its viability and to ensure that it will provide value to the taxpayer if it is developed.

Mark Williams Portrait Mr Mark Williams (Ceredigion) (LD)
- Hansard - - - Excerpts

Some 242,000 jobs are directly or indirectly dependent on a successful tourism industry. Will the Minister concede that we could boost those small businesses either by reducing VAT on hospitality and tourism or by raising the threshold on which they pay VAT?

Guto Bebb Portrait Guto Bebb
- Hansard - -

The hon. Gentleman is a champion of this issue and has been ever since I have been in this place. I share his view of the tourism industry in Wales: it is a success story of which we should be justly proud. It is important that the case is made to the Treasury, but I stress that the tourism industry in my constituency and in that of the hon. Gentleman is doing extremely well at present, regardless of any changes to VAT.

Nia Griffith Portrait Nia Griffith (Llanelli) (Lab)
- Hansard - - - Excerpts

As the Minister well knows, many small businesses in Wales are highly dependent on the steel industry and will have been anxiously awaiting the outcome of today’s meeting in Mumbai. The terms of the package that his Government propose will be crucial to any potential deal, so will he confirm that they will do everything it takes to secure a successful future for our steel industry?

Guto Bebb Portrait Guto Bebb
- Hansard - -

The hon. Lady is absolutely right to highlight the importance of the steel industry not just to direct employment but to the supply chains in both north and south Wales. I assure her that the Wales Office and the UK Government are doing everything in their power to ensure that the steel industry and its skilled supply chain are protected in the future.

Nia Griffith Portrait Nia Griffith
- Hansard - - - Excerpts

Many of our small businesses will also be concerned about the EU referendum, not least those in the Welsh agricultural sector, which received some £350 million a year from the common agricultural policy. The Minister has previously confirmed that, in the event of a Brexit vote, there is absolutely no certainty that his Government would replace those EU funds, so does he agree that it is in the very best interests of Welsh farming and the broader Welsh economy that we vote to remain in the EU on 23 June?

Guto Bebb Portrait Guto Bebb
- Hansard - -

The hon. Lady is absolutely right to highlight the importance of the agricultural industry to Wales. Almost 60,000 people are directly employed within the sector, and more than 95% of all Welsh agricultural exports go to the European Union, so I fully subscribe to her view that the Welsh agricultural sector will be protected if we vote to remain in the EU.

Maria Caulfield Portrait Maria Caulfield (Lewes) (Con)
- Hansard - - - Excerpts

5. What recent assessment he has made of trends in the level of employment in Wales.

Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
- Hansard - -

The labour market in Wales is going from strength to strength. Last week’s figures delivered a hat-trick of good news for the Welsh economy: employment is up to a new record high, unemployment is down to its lowest level since 2008, and the number of people on the claimant count continues to fall.

Maria Caulfield Portrait Maria Caulfield
- Hansard - - - Excerpts

Do not the Minister’s figures show that the Government’s welfare reforms are working in Wales and helping employment for ordinary people?

Guto Bebb Portrait Guto Bebb
- Hansard - -

My hon. Friend is absolutely right. I recently visited Cardiff with the Minister for Employment and it was truly inspiring to hear the team at the Cardiff jobcentre highlight how universal credit and the flexibility it offers is encouraging people back to work.

Lord Hanson of Flint Portrait Mr David Hanson (Delyn) (Lab)
- Hansard - - - Excerpts

The Minister will have seen this week’s Treasury assessment of the impact of withdrawal from the European Union on the UK economy. Could he give us his view of the impact of withdrawal on the Welsh economy?

Guto Bebb Portrait Guto Bebb
- Hansard - -

The right hon. Gentleman is well aware of my position on this issue. I believe quite passionately that the Welsh economy is stronger for being part of the European Union. Whether for our manufacturing industry, our agriculture industry or our small businesses, I think the stability and certainty of being part of the European Union are good for Wales.

Craig Williams Portrait Craig Williams (Cardiff North) (Con)
- Hansard - - - Excerpts

The unemployment level in Cardiff North is at a record low of 1.7%. Does the Minister agree that to support this trend and keep unemployment down, the new Welsh Government have to deliver on infrastructure promises such as the M4 relief road and the south Wales Metro, towards which this Government have given hundreds of millions of pounds?

Guto Bebb Portrait Guto Bebb
- Hansard - -

My hon. Friend has been a great champion for the capital city of Wales since he was elected to this place. The £500 million contribution of the UK Government to the city deal in Cardiff will be essential for employment, growth and the continued success of Cardiff, but we need to keep up the pressure. The question marks over the M4 relief road are a barrier to growth in south Wales, and my hon. Friend is absolutely right to raise his concerns about those delays. [Interruption.]

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

Order. A great many people in Wales will be attending to our proceedings, and I must also inform the House that today we are visited by the eminent figure Cardinal Charles Bo from Rangoon in Burma. We want to impress him not only with the quality of our interrogation but with the decency of our behaviour, so a little less noise would be helpful.