Welsh Affairs

Ian C. Lucas Excerpts

Thursday 3rd March 2016 Commons Chamber

[Stephen Kinnock]

I thank the hon. Gentleman for his intervention. As we have discussed, it is clear that energy-intensive industries require support from Government. That was recognised by the Chancellor in 2011. The support that has come, finally, is welcome. The big question for me is how it could possibly have taken five years to make that happen—to get the state aid clearance that was required from the European Union. Fundamentally, the strategy for energy must be about spreading the burden of the cost more effectively so that our energy-intensive industries are not being hung out to dry by an energy policy that does not make sense. It is also about making a firm commitment so that those investing have a sense of the stability and sustainability of the market in future. We currently do not have any of those things in place, which is why we are in such a mess.

[Ian C. Lucas (Wrexham) (Lab)]

My hon. Friend makes an important point about stability. Does he agree that the real problem in industries such as solar and anaerobic digestion—on which a reception was held in the House earlier this week—is the instability of the legislative and regulatory framework, which is a deterrent to long-term investment and is costing a large number of jobs in communities right across Wales?

[Stephen Kinnock]

I agree absolutely. The Energy and Climate Change Committee has just produced a compelling report that clearly demonstrates that we are losing investment and jobs precisely because of the mixed messages and signals that this Government send to investors. Business abhors a vacuum. Business needs stability. It needs to know whether there will be a return on its investments, and at present it sees no evidence whatever of that in the United Kingdom.

Wales, and south-west Wales in particular, can also be at the forefront of an internet revolution. Swansea Bay city region has based its city deal proposal on the concept of an “internet coast” to drive the digital future of energy, health and economic acceleration. All eyes are on the Chancellor. If he really wants a “march of the makers”, he must give his full backing to that exciting vision. The Swansea University bay campus, which, I emphasise, is based in my Aberavon constituency, has a huge role to play in the development of the internet coast. I look at my hon. Friend the Member for Swansea East (Carolyn Harris) for verification of that.

--- Later in debate ---

[Ian C. Lucas]

I thank the right hon. Gentleman for his kind words earlier. He knows that I strongly share the agenda he is outlining. The Welsh Government have invested £43 million in dualling the Wrexham-Chester line, which is hugely important, and we need to do more. Will he join me in pressing the Welsh Government and the UK Government to put their money where their mouth is? The Welsh Government, to be fair, believe in cross-border transport so much that they have dualled the line in the constituency of my hon. Friend the Member for City of Chester (Christian Matheson) rather than in Wrexham, and we want it to run right through to Wrexham.

[Mr Jones]

Yes, that is the burden of my speech. As the north-eastern part of Wales is so dynamic and so important to the economy of north Wales, as well as that of the country of a whole, and because it straddles a border—a line on the map that was not there in reality until fairly recently—we need to ensure that differing policies on either side of the border do not have any unforeseen effects. Yes, of course it is essential that both the Westminster Government and the Welsh Government should be working extremely closely together in this regard.

Before I sit down, Madam Deputy Speaker—I am very much alert to your strictures on time—I will mention the A55 coast road, or expressway, which is the most important route in the whole of north Wales, linking the areas around the border to Holyhead. The road is now quite old and in desperate need of upgrading. A few years ago, arrangements were made whereby borrowing powers were given to the Welsh Government—in fact, they were given the right to access the old borrowing powers of the Welsh Development Agency—in order to upgrade road infrastructure. That was stated to be specifically for the M4 and the A55. The Welsh Government are taking steps to upgrade the M4 around the Newport area, and that is all well and good, but looking at this from a north Wales point of view, it is rather galling that they do not appear to be accessing these borrowing powers to upgrade the A55. I ask my hon. Friend the Minister to give his colleagues in the Welsh Assembly Government the message that they should realise that the A55 is just as important to the people of north Wales as the M4 is to the people of south Wales.

There is a strong perception among us north Walians that we always get the short straw. I very much hope that the Welsh Government are listening to the contributions made to this debate and will understand that there is life north of Merthyr Tydfil and that the people of north Wales need their own specific economic interests to be reflected—and that means more connectivity and more integration with the great north-west economy.