Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

Guto Bebb Excerpts
Wednesday 13th July 2016

(7 years, 10 months ago)

Commons Chamber
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Neil Carmichael Portrait Neil Carmichael (Stroud) (Con)
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1. What assessment the Government have made of the adequacy of rail links between Wales and the south-west.

Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
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It is a pleasure to observe the House’s increased interest in Welsh questions today.

The Government are investing a record amount in the United Kingdom’s railways. The new fleet of inter-city express trains which will be introduced next year on the south Wales and Great Western main lines will significantly enhance the travel experiences of passengers in Wales and the south-west.

Neil Carmichael Portrait Neil Carmichael
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The money that has been invested so far has made a real difference to our national transport infrastructure, but does the Minister agree that it is important to ensure that we have the right stations in the right places, so that more and more passengers can have access to trains?

Guto Bebb Portrait Guto Bebb
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I could not agree more with my hon. Friend, who is well known for his campaigning efforts on behalf of rail commuters. The Government’s investment in the railway infrastructure is at record levels. We are seeing the electrification of the main railway line to Swansea, and we are also seeing great investment in signalling in north Wales. That new capacity will be good for the economy of south Wales and the south-west.

Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
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As the Minister will know, there is more economic connectivity between south Wales and the south-west than there is between south Wales and north Wales. Will he undertake to speed up the electrification of the railways, particularly at a time when Brexit is leading to considerable uncertainty about inward investment in Wales?

Guto Bebb Portrait Guto Bebb
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The hon. Gentleman has made a good point about the importance of rail connectivity to economic development, but I do not think it is a case of either/or. I think it is important to have great connections between north and south Wales, but we should also recognise the need for south Wales to be linked with the London area and the south-west, and the same applies to north Wales. As for “speeding up”, I will take no lessons from the Labour party, which failed to invest a single penny in the electrification of any railway line in Wales during a 13-year period.

Craig Williams Portrait Craig Williams (Cardiff North) (Con)
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By stark contrast with what was done by the last Government, what this Government are doing for the Great Western line—the electrification, and the new trains—is remarkable. Will the Minister meet me to discuss the provision of direct trains from Cardiff Central station to London to build on that capacity and investment?

Guto Bebb Portrait Guto Bebb
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My hon. Friend is a great champion of railway connections between south Wales and London, and it would be a pleasure to meet him to discuss further developments in a Welsh context. I fully agree that the modernisation and electrification of the south Wales main line will greatly enhance the connectivity between south Wales and London, not least the new link to Heathrow airport.

Kevin Brennan Portrait Kevin Brennan (Cardiff West) (Lab)
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Improving Cardiff Central station is a vital part of all this. Will the Minister update the House on what recent discussions the Government have had with Cardiff council and others about the modernisation and upgrading of the station?

Guto Bebb Portrait Guto Bebb
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I can confirm that my right hon. Friend the Secretary of State has met council leaders in Cardiff to discuss the redevelopment of Cardiff Central station. The Government have already invested in enhanced capacity in the form of additional platforms, but the process needs to continue. We recognise the importance of the station to the economy of not just the capital city but the wider economic area that surrounds it, and talks are ongoing.

Nick Smith Portrait Nick Smith (Blaenau Gwent) (Lab)
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Plans for future south Wales rail links were heavily dependent on EU cash. Will the Minister ask the Treasury to support rail links such as the metro for the future?

Guto Bebb Portrait Guto Bebb
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The south Wales metro links will clearly be important to the hon. Gentleman’s constituency, but it should be borne in mind that the amount invested in the Cardiff capital region city deal is £1.2 billion, of which less than 8% is currently earmarked as EU funding, and that the Government have already committed £500 million to that development. I think the hon. Gentleman should be talking up the prospects for the economy of south Wales, rather than highlighting the deficiencies that he sees in the current funding arrangements.

David Jones Portrait Mr David Jones (Clwyd West) (Con)
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2. What assessment he has made of the potential consequences for Wales of the outcome of the EU referendum.

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Karen Lumley Portrait Karen Lumley (Redditch) (Con)
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3. What assessment he has made of the effectiveness of steps taken to rebalance the economy in Wales.

Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
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This Government are taking unprecedented steps to ensure greater and fairer prosperity right across the UK, and the UK Government’s cities and local growth agenda is revolutionising the way in which we achieve this. The signing of the Cardiff capital region city deal, alongside ongoing negotiations in Swansea and early discussions for a north Wales growth deal, is a clear demonstration of our commitment to rebalancing the economy in Wales.

Karen Lumley Portrait Karen Lumley
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Does my hon. Friend agree that, in my old home area of north Wales, good transport links are vital to rebalancing the economy? What plans does he have to achieve that in order to attract more investment?

Guto Bebb Portrait Guto Bebb
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My hon. Friend is absolutely right to highlight the importance of transport links for economic growth in north Wales. Last Thursday, I was at a summit in north Wales with the Welsh Government economic Minister and local government leaders. We discussed a proposal for improving rail and road links in north Wales as part of the north Wales growth deal.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds (Torfaen) (Lab)
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Central to rebalancing the Welsh economy are the metro projects and the city regions. Given that during the referendum campaign 13 Government Ministers signed a letter guaranteeing the continuation of EU funding, will the Minister ensure that none of those projects loses out as a result of our leaving the EU?

Guto Bebb Portrait Guto Bebb
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I think the hon. Gentleman is asking me to give a guarantee in relation to a future Government. That Government will be established by the new Prime Minister from this afternoon onwards. The key point is that the city deal was an initiative that showed the co-operation between the Westminster Government and the Welsh Government. It showed what could be done when Governments work together. The proposed investment in the south Wales metro is something that was not delivered by the previous Government during the 13-year period in which they could have made a difference.

Antoinette Sandbach Portrait Antoinette Sandbach (Eddisbury) (Con)
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Given the opportunities of the north Wales growth deal for my constituency and for north-east Wales, what steps is the Minister taking to follow the lead of the Treasury to ensure that women business leaders are fully engaged in the north Wales growth deal?

Guto Bebb Portrait Guto Bebb
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The meetings that we are having in north Wales have been with council leaders, further education leaders and leaders of Welsh businesses, and I am glad to say that they have involved both male and female leaders. The key point is that our approach in north Wales is inclusive and supported by all stakeholders. People realise the potential of north Wales joining the northern powerhouse for the benefit of all the residents of north Wales.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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Exports are central to any rebalancing strategy. Unlike the British state, which has a gigantic trade deficit, Wales has a significant trade surplus. It is the best performing component of the UK. What assessment has the Minister made of the number of countries across the world to which Welsh companies export, and the number of trade deals that will therefore have to be renegotiated? Does he not realise that tariff-free access to the single market is vital to the Welsh economy and that—

John Bercow Portrait Mr Speaker
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Order. We are grateful to the hon. Gentleman. We have got his drift.

Guto Bebb Portrait Guto Bebb
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I thank the hon. Gentleman for his passionate question. I agree with him that access to the market is important for the Welsh economy, but he should also recognise that the growth in Welsh exports has been faster to countries outside the European Union. We need a balanced approach and to ensure that we have access to markets throughout the world, so that Welsh manufacturing businesses, such as Airbus, can carry on with their recent success.

Gerald Jones Portrait Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
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5. What assessment he has made of the potential effect of the outcome of the EU referendum on regeneration projects in Wales.

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Neil Parish Portrait Neil Parish (Tiverton and Honiton) (Con)
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6. What assessment the Government have made of the potential contribution of tidal lagoons to energy production in Wales.

Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
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Tidal lagoons have the potential to make a significant contribution to the UK energy mix, and exciting projects in Wales such as the Swansea bay lagoon deserve serious consideration. That is why we have commissioned an independent review of tidal lagoons, and I look forward to reading its findings in the autumn.

Neil Parish Portrait Neil Parish
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The Bristol channel has the second highest tidal rise and fall in the world. We need to harness that power and we can pay for it over a longer period because it will create power for hundreds of years to come.

Guto Bebb Portrait Guto Bebb
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I thank my hon. Friend for his passionate remarks. He is right that that potential exists, and that is why we have commissioned an independent review that will report in the autumn. It needs to look carefully at the costs and benefits of a potential tidal lagoon. We are supportive of the concept, but we have to ensure that we balance the development against the cost to the UK taxpayer.

Chris Evans Portrait Chris Evans (Islwyn) (Lab/Co-op)
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As the Minister will know, many renewable energy projects depend on EU funding—[Hon. Members: “Hear, hear!”] Mr Speaker, I did not know I was that popular! Such projects include the Swansea bay tidal lagoon. Will the Minister provide a cast-iron guarantee that the UK Government will meet that funding if it is lost as we exit the EU?

Guto Bebb Portrait Guto Bebb
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I can assure the hon. Gentleman that he is not that popular.

The complex tidal lagoon issue is being considered—we are looking at all the issues. I am not aware of any EU funding that was committed to the tidal lagoon project, so I can offer no guarantees.

Carolyn Harris Portrait Carolyn Harris (Swansea East) (Lab)
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The Hendry review team has met representatives of business and civic society right across Wales. The tidal lagoon infrastructure project is a massive economic opportunity for Wales and my constituency in particular. Will the Minister assure the House that he will emphasise to the Hendry review how much support and enthusiasm there is for this project, and how important it is that this vital scheme is completed as a matter of urgency?

Guto Bebb Portrait Guto Bebb
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I welcome the hon. Lady to her place on the Front Bench. I fully accept the comments made about support for the concept in the Swansea area, and I can confirm that my right hon. Friend the Secretary of State has already met Charles Hendry to discuss the project. It is not my position to prejudge an independent report, but I assure her that the views of the residents and local authorities in south Wales are known to Charles Hendry.

Glyn Davies Portrait Glyn Davies (Montgomeryshire) (Con)
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7. What recent assessment he has made of the contribution of the farming sector to the economy in Wales.

Caroline Nokes Portrait Caroline Nokes (Romsey and Southampton North) (Con)
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11. What recent assessment he has made of the contribution of the farming sector to the economy in Wales.

Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
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The farming sector is the economic backbone of the Welsh rural economy. The total income from farming in Wales is estimated at more than £175 million, but more important is the contribution that Welsh agriculture makes to our rural communities. It is crucial and this Government will continue to support it. [Interruption.]

John Bercow Portrait Mr Speaker
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Order. The voice of Montgomeryshire must be heard.

Glyn Davies Portrait Glyn Davies
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Does the Minister share my concerns and those of the Welsh farming unions about the administration of the single farm payment scheme in Wales, particularly in relation to cross-border issues? Will he agree to meet the farming unions at the Royal Welsh show next week to discuss this serious issue?

Guto Bebb Portrait Guto Bebb
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I agree completely with my hon. Friend that any delays in payments to the farming community are problematic. This issue is devolved to the Welsh Government and it is one I have already discussed with farming unions. My right hon. Friend the Secretary of State will be at the Royal Welsh next week, subject to the decisions of the next Prime Minister, and meetings have been arranged with farming unions at that event, which is undoubtedly the premier farming event of the whole United Kingdom.

Caroline Nokes Portrait Caroline Nokes
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Welsh, and indeed British, farmers are responsible for producing some of the finest food in the world. Now that we are to leave the EU, what effort is my hon. Friend making to make sure that the Department ensures that all of the UK’s fantastic home-grown produce is promoted to international markets?

Guto Bebb Portrait Guto Bebb
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My hon. Friend is absolutely right to say that the quality of food produced in Wales is second to none. We produce the best lamb in the entire world, and the contribution of such produce to the economy is crucial. My right hon. Friend the Secretary of State and I have already met business leaders, including food producers, to give them confidence that they can still access international markets following the EU referendum result.

Mark Williams Portrait Mr Mark Williams (Ceredigion) (LD)
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The Royal Welsh show next week in Builth Wells will indeed show the very best of Welsh agriculture. When the Secretary of State goes there, he will get the same question that I have received in the past few weeks, since 23 June: what guarantees are there that the support for the family farm at its current level will remain in the future to sustain the essential rural economy, in west Wales and more generally?

Guto Bebb Portrait Guto Bebb
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The hon. Gentleman is a champion of the agricultural sector—there is no doubt about that. I can assure him, once again, that the Wales Office has already had meetings with the farming unions. We can certainly offer the guarantee that the current funding arrangements will be in place until at least 2018, but the ongoing support for Welsh farming will be subject to agreements involving this Government, the way in which we exit the European Union and the decisions taken by the future Prime Minister.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Given that the common agricultural policy and rural development programme contribute hundreds of millions of pounds to the Welsh rural economy, what UK exit scenario could possibly best serve Wales?

Guto Bebb Portrait Guto Bebb
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As the hon. Lady knows, I argued for Wales and the UK to stay within the EU, but the reality is that Wales voted to leave. It is therefore crucial that we support the industries that are dependent on exporting to the EU. We have a quality product offered by Welsh agriculture, so it is imperative that we talk up that market and support the sector to the best of our abilities. Again, I give assurance to the farming unions that the current funding situation is in place until 2018.

Ian C. Lucas Portrait Ian C. Lucas (Wrexham) (Lab)
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Does the Minister agree that leaving the European Union offers a golden opportunity to assess the level of subsidy paid to farming in Wales to see whether that money can be more effectively and efficiently spent in other areas?

Guto Bebb Portrait Guto Bebb
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We need to look at the way in which Government spend money. If there is to be a funding mechanism in the future for Welsh agriculture, it must be looked at in the totality of Government spending. However, it is pretty important to state that more than 60,000 jobs in Wales are dependent on the agriculture sector, and it would be short-sighted in the extreme for any Government to turn their back on a sector that puts Wales on the international map.