UK Shared Prosperity Fund

Hywel Williams Excerpts

Thursday 5th September 2019 Commons Chamber

[Drew Hendry]

I will give way one last time, then I must make progress.

[Hywel Williams (Arfon) (PC)]

Does the hon. Gentleman agree that the difference between the European Union and the Government here in Westminster is that the European Union has a regional policy to counteract the effects of poverty, unlike this Government?

[Drew Hendry]

Yes—I am grateful to the hon. Gentleman for that comment.

Before I took those interventions, I was talking about the two icons, one of them being the Kessock bridge, which I will not go into now. It is there for everybody to see and is a monument to the fact that Europe has paid attention to the regions that need assistance. The other icon is the University of the Highlands and Islands. EU funding enables research capacity, new facilities and equipment and expert researchers, and it has enabled doctoral and post-doctoral students to support priority sectors such as life sciences, marine science, aquaculture, archaeology, Gaelic and the creative economy—all coming together to make the highlands the vibrant place it is. The University of the Highlands and Islands receives the largest Scottish grant of €7.17 million, out of €68.6 million throughout Scotland. The view of the University of the Highlands and Islands is that Brexit will reduce prospects in those areas.

Erasmus has enabled student and staff exchanges for more than 30 years. International collaboration and EU engagement are at the heart of the University of the Highlands and Islands, and have been since its inception. It was helped by the EU to achieve university status and title in 2011, and is a vital contributor to economic growth. More than £250 million of investment has been levered into the UHI through structural funding. Some 25% of the university’s non-teaching “other” income has come from the EU. If we were remaining in the EU, there would be much more potential for growth through the EU 2020-27 programmes.

Adam Haxell of MillionPlus, the Association for Modern Universities, said to me:

“On UHI itself, it is important to emphasis what a remarkable success story it has been. The idea of having a university that covered this area in the early 1990s seemed totally unrealistic to many, and it is thanks to the determination and perseverance of those involved combined with the spread of funds they were able to draw down on, namely European funding streams, that made it happen. Today, the university stands as a pillar of the regional economy of the Highlands and Islands and an important element of the modern social fabric. The range of courses that are offered through this institution, some of which relate directly to the regional culture and heritage, combine to create a unique local offer that reflects the needs and ambitions of local residents. Moreover, in the last Research Excellence Framework, 69% of research at the institution was deemed world-leading or internationally excellent. For an institution that only gained university title in 2011, this is a phenomenal trajectory and could not have happened without the support it got.”

He went on to say that

“Kate Louise McCulough has written on the historic framing of the ‘Highland problem’ in Scottish and UK public policy and how European funds played a critical role in its transformation from the 1980s to become ‘…an example of what a successful peripheral region looks like’.”

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

European funding has been hugely important to Wales: particularly to my area of north Wales, but also to mid-Wales, and other areas. I echo the concern expressed by the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry): many of us are frustrated by the lack of information—any information at all, for that matter—about how the shared prosperity fund will operate. The delay in the consultation is just symptomatic of the lack of care that the Government have shown towards the European funding that we have already had and towards what will happen in future, suggesting that regional funding is a low priority for this Government.

This issue is incredibly important in Wales, because we get a large amount of European funding. In fact, we get four and a half times more per head from the European Union in funding than any other nation or region in the UK. Of course, this was not always the case. Some people here will recall that the maps were redrawn to delineate west Wales and the valleys as the area that would get funding. These maps are called nomenclature of territorial units for statistics maps—ludicrously known as NUTS maps, as that is the acronym. The previous NUTS map for Wales put poor west Wales, where I live, in with the rather more prosperous north-east Wales, and south-west Wales in with the rather more prosperous Cardiff area. When the map was redrawn, suddenly we were allocated funding under the European Union’s regional policy, showing the value of that policy and also that a degree of cleverness is required in acquiring that funding, which we eventually showed.

Wales—particularly my area—is economically on a par with the former communist parts of eastern Europe, Portugal and southern Spain. That is not something that we celebrate, of course, although it does bring us in a certain amount of funding. Rather, it is the consequence of decades of marginalisation, neglect and mismanagement by Westminster. Let me echo the points made by the hon. Member for Inverness, Nairn, Badenoch and Strathspey. At the very least, can we have an assurance from the Minister that not a penny less will come to Wales under this fund as compared with under European funding?

[Bob Stewart (Beckenham) (Con)]

My reading is that, actually, the funding will continue. It will just not come from Europe; it will come from London—at least in the immediate future.

[Hywel Williams]

The hon. Gentleman may be right, but I would like some confirmation of that, and certainly more information than “the immediate future” because we are looking beyond 2021. There are projects whose timescales demand that. In fact, there are projects in my community that require funding for many years into the future, including projects at Bangor University.

What is also extremely unclear, to me at least—perhaps the Minister can enlighten us—is the criteria for the allocation of money under the shared prosperity fund. I would argue for allocation on the basis of need. We will not accept the milking of funds that would otherwise have gone to Wales to fund projects elsewhere. That is certainly a fear. For example, Welsh farming might proportionately get considerably less money than one would expect if the criteria were based on, say, per head funding.

[Albert Owen]

I represent a neighbouring constituency, so I share many of these projects in north-west Wales with the hon. Gentleman. He talked about the agricultural community. Is it not important that any new allocation of funds is not made through the Barnett formula, as this would mean a huge reduction in moneys allocated? We are talking here about food production, much of which is exported to mainland Europe.

[Hywel Williams]

The hon. Gentleman makes a good point. I raised it with the then Minister over two years ago and was given a verbal assurance that that would not be the case. Were we to use the Barnett formula, funding to Welsh farming would probably be halved. At that time, the Minister gave us a verbal assurance, but I seek a similar reassurance from the Minister today.

Funding should go directly to our Government in Cardiff, rather than being allocated directly from London to individual local authorities and organisations. There is much merit in ensuring that local organisations and local government get the maximum funding. I have heard the argument that diverting money through Cardiff would increase bureaucracy and cost, but the fundamental argument is that the competent authority should be the Government in Wales. Any move in any other direction would undermine the devolution settlement and would be resisted by Members on these Benches and others.

To close, I should point out again to the Government that Wales is another country and that EU membership has had a different value and quality for us in Wales, as reflected in the funding we have been getting. That is particularly the case in my own area of Gwynedd, despite its poverty. One might suppose that that would put us in with areas that voted strongly to leave the EU, because of the marginalisation, poverty and distance from London and the seat of power. In fact Gwynedd voted 60:40 to remain, because of our values, the way we see the world, our culture, our bilinguality and our happiness at being part of the EU, which is much more congenial to us. Gwynedd is a different place—Wales is a different place—and should be treated with respect.