Wales: Regional Development Funding

Ian C. Lucas Excerpts

Tuesday 7th May 2019 Westminster Hall

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

Thank you, Sir Graham. I congratulate my hon. Friend the Member for Aberavon (Stephen Kinnock) on securing the debate. He has made such a superb contribution through the all-party parliamentary group for post-Brexit funding for nations, regions and local areas. I also welcome the Minister to his post. I want to speak briefly about regional development across north Wales.

At the time of the 2015 general election and its aftermath, there was a strong political focus by the then Prime Minister and Chancellor of the Exchequer on the development of the northern powerhouse. As the MP for Wrexham, on the border with England, I was concerned that investment should not be focused on one particular city in the north of England, but should be spread to regions, towns and communities to the west. My concern was shared by MPs representing English constituencies to the west of Manchester. We established the all-party parliamentary group on Mersey Dee north Wales, so that we had a political structure to enable us to raise the issue politically.

In north Wales our economy works from west to east, rather than north to south. We were very encouraged by the response from business, local authorities, universities and the community as a whole in supporting the initiative that we had set in place, which we used as a template to campaign for more focus and more investment in north Wales. Together with the work of organisations such as the cross-border Mersey Dee Alliance, that template led to the momentum that brought about the north Wales growth deal project, which we all worked extremely hard to achieve. It was very important that that project involved all political parties in north Wales, as well as business and the academic community, through universities and further education colleges.

My concern—I am sorry to say this—is that since the announcement of the establishment of the north Wales growth deal late last year, the cross-party and broad nature of the work being carried out in north Wales has lessened. Certainly, the consultations that have been done by certain political parties and local authorities in north Wales have not been in step with the collaboration that led to the achievement of the growth deal. Rather than the partisan approach that a particular political party has taken, a consensus among political parties to work for the benefit of north Wales is required.

To deliver the north Wales growth deal, I want a new structure that is more in step with business in north Wales and that involves Members of Parliament and Assembly Members, regardless of their political party. We need to set up an accountable structure to deliver the future investment in north Wales that must be delivered. Certain areas in north Wales did not benefit from European funding—my constituency did not receive the same level of investment as other parts of Wales—so it is imperative that we rebuild the sharing and investment that we set up after 2015 as soon as possible.

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[Kevin Foster]

Not for the moment.

We will achieve our objective by strengthening the foundations of productivity, as set out in our modern industrial strategy, to support people to benefit from economic prosperity. As a Government, we have already begun engagement on the fund with the Welsh Government and key stakeholders in Wales. That engagement will continue, both at official and ministerial levels. Of course, a benefit of debates such as this is that we can hear the views of right hon. and hon. Members. It is important to recognise that direct engagement with stakeholders has already taken place, including with the third sector, universities and local authorities in Wales. Official-led events were held in Cardiff in November last year, and more recently in St Asaph on 30 January.

As has been referenced several times, the Government have committed to holding a public consultation on the design of the fund. The consultation will build on the conversations and engagement on the fund that have already taken place. That includes engagement with the Welsh Government, because we will respect the devolution settlements as part of the fund, as requested by Opposition Members.

I recognise that right hon. and hon. Members are concerned about the delay in the consultation. I make this point in response: the delay should not be misunderstood as the Government not being fully committed to the fund—we are. The dynamics of EU exit, not least in this place, often mean there is a fast-changing situation, so it would not be appropriate to speculate on specific dates for when the consultation will be launched.

It is worth reflecting on how constructive work has taken place between the UK and Welsh Governments on city and growth deals in Wales. By the end of the Parliament, every part of Wales will be covered by a growth or city deal. Cardiff and then Swansea, as well as, most recently, north Wales and then mid-Wales, are or will be benefiting from that collaborative approach to turbocharge economic growth regionally in Wales.

I listened with interest to the points made by the hon. Member for Wrexham. He may be aware that I was in Wrexham last week talking with local authority leaders and other members of the North Wales Economic Ambition Board. I respect the fact that it needs to be a collaborative effort, but what is key is that the proposals come from the region upwards, not Westminster downwards. Although we have to ensure that we are satisfied that the money will be transformative, it is about what the region thinks.

[Ian C. Lucas]

I encourage the Minister to engage with Members of Parliament, who have been very active in establishing the forum of the all-party parliamentary group, with which he has not yet engaged. It would be helpful if he would meet the all-party group to hear what Members of Parliament, who have the largest mandate, have to say to him on this important subject.

[Kevin Foster]

I thank the hon. Gentleman for his constructive intervention. I am more than happy to accept the invitation, although I have not been short of north Wales Members of Parliament wanting to come and see me. I have already met the hon. Member for Arfon (Hywel Williams) and the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), and spoken with my hon. Friend the Member for Aberconwy (Guto Bebb). As I said at the start of my speech, my door is always open to those who want to talk constructively, and I hope to meet on their patch as well, if possible. Certainly, I am more than happy to engage with Members of Parliament on these issues.