Shared Prosperity Fund: Wales

Debate between Ian C. Lucas and Albert Owen

Wednesday 14th November 2018 Westminster Hall

[Albert Owen (Ynys Môn) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Hollobone. I welcome the Minister to his place and congratulate my hon. Friend the Member for Wrexham (Ian C. Lucas) on securing the debate. I am disappointed that the hon. Member for Monmouth (David T. C. Davies)—the Chair of the Welsh Affairs Committee—chose to talk about other things when the topic of the debate is so important for the future of Wales.

My constituency has been a major beneficiary of both European structural funds and the European regional development fund. In the 1980s, my constituency had twice the national average of unemployment—mass unemployment and mass depopulation, which is why it qualified with low GDP for European structural funds. Objective 1 has been a success in my area and it has helped repair communities through its social cohesion funds. It has also helped port communities with infrastructure—the main gateway between Wales and the rest of Europe—and helped the agricultural, food and farming sector.

As my hon. Friend the Member for Cardiff Central (Jo Stevens) said, the further education and higher education sectors have also been major beneficiaries. There have been real, tangible outcomes in my constituency, such as energy centres, food technology centres and job creation, and Wales and the valleys are benefiting from this.

However, we still need to reflect on how we are going forward, because my area is still a low area of gross value added—GVA—and that needs to change. That is why we need a further commitment from the Government for post-2020: that the circumstances will not change and that there will be real growth. Unemployment in my area is now below the national average, when in the 1980s it was double the national average. That is job creation helped by European structural funds—real people benefiting from real jobs in my area. That is why I am a big supporter.

Even today, we have great investment coming in. In 2015, we had a brand-new, state-of-the-art, innovative science park, which was part funded by the Welsh Government and attracted private investment, but it would not have been possible without the grant from the ERDF. In 2017, we got a business park at Llangefni, which now works closely with colleges and universities to ensure that we get top-quality jobs coming to my area. Again, that did not happen in the ’80s, before the structural funds were put in place in the ’90s. A tourist package worth £1.7 million will help the port of Holyhead, which was damaged by storm—again, some of that money comes from the European social fund. It is a good thing. Energy companies are investing in my area, such as Minesto from Sweden, and a not-for-profit organisation has been set up—an indigenous company in Wales—because of ERDF funding.

[Ian C. Lucas]

Does my hon. Friend agree that the determination of companies and institutions throughout north Wales to work together is a massive attraction to outside businesses to come to our area? We have shown that we work very effectively together and can plan the north Wales growth bid.

[Albert Owen]

Absolutely. That is the next point that I want to move on to. I am a strong supporter of devolution—I have fought for it in referendums, and I have seen its enhancement—but devolution is no good just going from Whitehall down the M4 to Cardiff Bay. It needs to go throughout the areas of Wales, including to north-west Wales and north Wales generally. Real devolution is about empowering people in their local communities. My hon. Friend is right: we have a structure in the north Wales growth bid. We have a board set up, with business and local authority representatives, and they have the ability to be a mechanism for distribution of the new growth fund in the future. I hope that the Minister will take that on board. I know that he is visiting my constituency in north Wales shortly, and he will hear about that.

I want to quote the remarks referred to by the hon. Member for Ceredigion (Ben Lake), in which the Secretary of State for Housing, Communities and Local Government stated:

“The UK Shared Prosperity Fund will tackle inequalities within communities by raising productivity, especially in parts of the UK whose economies are furthest behind…It will have simplified administrative arrangements aimed at targeting funding effectively; and…It will operate across the UK. The UK Government says it will respect the devolution settlements in Scotland, Wales and Northern Ireland, and will engage the devolved administrations”.

I want those words to be put into action. I want the new Minister to take that on board and to work with us, as Welsh Members, to ensure that areas such as mine continue to grow and will benefit from the shared prosperity fund. I do not want to see this Government pull the rug from under the feet of the poor communities, education communities and farming communities that have benefited since 2000. Europe based its European structural funds on need, and that is what we need: to establish the needs of areas throughout the UK, including periphery areas such as the one that I represent, to show that we will go forward, that we do share prosperity and that we share it at a pace equal to that in the south-east of England. At the end of the day, we want a more equal society, economically and socially.

Rural Economy of Wales

Debate between Ian C. Lucas and Albert Owen

Tuesday 28th November 2017 Westminster Hall

[Ian C. Lucas]

I am afraid this is an irresistible opportunity to talk about the Government’s appalling proposal to shift HMRC from Wrexham in north Wales, my constituency, which has many rural areas, to Cardiff’s city centre. Is that not exactly the opposite of what we should be doing?

[Albert Owen]

Yes, it is. The Government talk, as many Governments do, about decentralisation and devolution of services, but they act in the opposite way, pulling out services from rural areas. Those rural areas have very competent people, with the skill sets to do those jobs for many years. The services are being moved just to save the Government money, and in the long run communities are getting left behind.

My final point has nothing to do with the Government, although the Government need to take some responsibility. We need to get proper banking policy in this country. When high street banks close in rural areas and in small and larger towns, it rips the heart out of those communities. Local government, the Welsh Government and the UK taxpayer are paying for those communities, yet banks just walk away. We know what banks have done to our global economy; we see the recession across the world and in this country. Those banks have responsibilities, but we need to plug those gaps, because often buildings are left empty, jobs are lost and the local high street suffers.

Rural Wales needs a strong voice and, with Welsh MPs across the parties, we have one. We also need a Government here in the UK that are listening and putting devolution into practice, with real delivery of jobs and services in our rural communities, so that rural and urban Wales can compete on a level playing field with the rest of the United Kingdom. I thank the hon. Member for Ceredigion for giving me the opportunity to say that, because I want to stand up in future and say how much better things are in Wales because rural and urban areas have worked together to create the best place to live, work and visit in the whole of the United Kingdom.

Broadband Universal Service Obligation

Debate between Ian C. Lucas and Albert Owen

Thursday 15th December 2016 Commons Chamber

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

Let me first congratulate the hon. Member for Boston and Skegness (Matt Warman) on securing this debate. I truly welcome the opportunity to discuss this crucial subject. I particularly welcome the conversion of the Conservative party, after a very long time—seven or so years—to supporting a policy of universal broadband provision.

Access to broadband is absolutely crucial in society today, and has been for the last seven years. That is true not just for businesses, but for individuals. The Government are increasingly insisting that citizens access services through the medium of broadband. It is therefore essential that we have a universal service. It is extraordinary that that concept, which the hon. Member for Boston and Skegness talked about for the last 20 minutes, was rejected by the Conservative party. The concept of universality is crucial, but it was rejected by the coalition Government in 2010. In the 2010 general election, the Labour party had a policy of introducing universal broadband at a speed of 2 megabits by 2012. When the coalition Government came to power, they instead insisted—I remember the hon. Member for Wantage—

[Albert Owen (Ynys Môn) (Lab)]

Right honourable.

[Ian C. Lucas]

The right hon. Member for Wantage (Mr Vaizey); I beg his pardon. I remember the wording, as I heard it so many times: the coalition Government were going to deliver the best superfast broadband in Europe by 2015. But they rejected universal broadband, and ever since, I have, when sitting on these Benches, watched Conservative MPs complaining about lack of broadband provision. They are complaining because, as we all know from our constituents—individuals and companies—that provision is not being delivered. The result has been disastrous, especially for communities away from south-east England and the richest parts of the UK.

--- Later in debate ---

[Mr Vaizey]

Right honourable.

[Albert Owen]

He was rewarded for failure.

[Ian C. Lucas]

Right honourable. It is always good have personal connections in politics these days; one always secures rewards.

Labour’s commitment to 2 megabits would have established universal provision, so that the entire UK would benefit from the expansion of broadband services. In reality, the richest areas have benefited most. We always accepted that 2 megabits was a starting point and would not be enough, but the important thing was the commitment to a universal service. Jettisoning that principle was disastrous. It reflected a failure to appreciate the essential nature of broadband in today’s economy and society. It accelerated still further the regional imbalances in the UK; this country has the most marked regional differences in income of all OECD countries. If we are to address economic and wealth inequality across the UK, the Government must act to ensure that we have a universal superfast broadband service. I welcome, therefore, the conversion to a commitment to universal service, but it is a shame that that did not happen in 2010, and that it has not been in place for the past six years.

BT has achieved much in broadband provision, and has extended that provision since 2010. However, it effectively has a monopoly over the infrastructure in many areas, yet it is not able to meet the required demand.

Tourism Industry and VAT

Debate between Ian C. Lucas and Albert Owen

Tuesday 17th March 2015 Westminster Hall

[Albert Owen (Ynys Môn) (Lab)]

It is a great pleasure to follow the hon. Member for Ceredigion (Mr Williams), who is a fellow Welshman. We are having this debate in Welsh tourist week, and we have had a very good week promoting the pleasures that people can experience when they come to Wales.

I pay tribute to the Cut Tourism VAT campaign group for its excellent campaign. If the Chancellor is minded to make an announcement tomorrow and follow suit with what we are asking for in this debate, it would be a lot to do with the long-term work of the Cut Tourism VAT campaign, and indeed, the cross-party support that it has received.

I am very much an opponent of VAT. I believe that, as a consumer tax, it is regressive and hits the poorest in our society, an argument that I shall develop later. I agreed with the Prime Minister when he said, as Leader of the Opposition only a few weeks before the last general election, that VAT was a regressive tax and that it has had negative implications for the economy. I have been consistent in my view and I believe that the rise in VAT in 2010 sucked oxygen out of the economy at a very difficult time and held sectors back, including tourism.

[Ian Lucas (Wrexham) (Lab)]

Does my hon. Friend agree that the temporary reduction in VAT that the Labour Government introduced in the previous Parliament was successful in creating the growth that this Chancellor inherited from that Labour Government?

[Albert Owen]

Yes, indeed; it was a brave step. [Interruption.] It is interesting that we are getting heckled from across the Chamber by people who voted to put VAT up previously, but are campaigning here today to cut it. We are not going to take any lessons from some Members here in the Chamber today. I believe, as does the hon. Member for Ceredigion, whom I congratulate on securing this debate, that cutting VAT would give a great example to the industry.

In the past few months, I have spent time in France and the Republic of Ireland, where I have seen our near neighbours benefit from a cut in value added tax.

Offshore Wind Generation (North Wales)

Debate between Ian C. Lucas and Albert Owen

Wednesday 24th October 2012 Westminster Hall

[Albert Owen]

Yes, I absolutely agree. I am sure the Minister will acknowledge this later too: we should not be either/or; we need all the options. We need the base load that nuclear can provide, along with clean coal and gas, but we also need the flexibility that renewables give us, and I hope to develop that argument today.

As I say, I see no contradiction here. If we are to create the vibrant low-carbon economy that the UK wants, energy security, along with food security, is probably the most important challenge that this Government and Governments around the world will face in the future. North Wales is—I will argue that it can continue to be—a major contributor to a low-carbon future. My own constituency of Ynys Môn—the Isle of Anglesey—has been in the vanguard of nuclear generation for more than 40 years, and there are plans for a new replacement station at Wylfa. The island also has early wind farms, comprising of some 77 turbines—from the 1980s and 1990s—in the north of the island. There are plans for a tidal array at the Skerries, and footprints for two biomass plants, so no one can accuse my constituency and its people of not contributing to our energy needs or to the rich energy mix that we want in the future. I support the concept of Anglesey becoming Britain’s energy island, and I hope to invite—I am sure that I will formally invite —the Minister along to see the energy island programme and meet its director, John Idris Jones, and his team, to see how we can take this forward, with local government, local businesses and the Welsh and UK Governments working together.

Given what I have just said, I do not believe that I can be accused of being an “environmental Taliban”. The Chancellor likes to joke about such things, but he should not poke fun at people who want a balanced energy mix that includes renewables, as well as coal, gas and nuclear. Indeed, I do not understand why he made his remarks, because that is his Government’s policy. It was also the policy of the previous Government, so there has been consensus and continuity. Businesses and consumers tell me that they want clarity and continuity on energy policy, so that north Wales and the United Kingdom can become the centre of excellence that we want to see.

The purpose of this debate is to highlight the pros and cons, to focus the attention of Government, at all levels, on providing certainty for investment and to create the high skills and the low-carbon energy sector that can deliver in the future.

[Ian Lucas (Wrexham) (Lab)]

I am delighted that my hon. Friend has secured this debate. He mentioned certainty, and uncertainty is the enemy of long-term investment. Does he agree that one of the problems with the present Government is the incoherence and uncertainty that is causing long-term investors such as Siemens to reconsider investment in the UK, because of the lack of clarity about Government policy?

[Albert Owen]

My hon. Friend is absolutely right. We have just come from a meeting of industrialists, and they highlighted that very point. The Aluminium Federation was present, and it said that international companies are considering pulling out of the UK because of uncertainty about the future. The Minister will be aware of that, and he will try to work with others to allay the fears and create the confidence needed for the future. It is not warm words that will heat our homes or drive industry, but action, and we need to see that.

--- Later in debate ---

[Albert Owen]

Constitutional issues have their place, but it is clear that ports are a reserved UK matter—I have worked with previous UK Governments on developing ports in my constituency—so the Government should take responsibility and treat all UK ports the same. We are not asking for anything extra in Wales; we are asking for a level playing field so that Welsh ports can develop and, importantly, benefit the whole United Kingdom. If the development goes ahead and north-west Wales has port infrastructure, that will help the energy needs of the whole United Kingdom.

I move briefly to tackle head-on some of the criticisms of wind energy. Intermittency is an issue. Just as we need base load electricity at peak times for industry and domestic use, we also have off-peak periods. If hon. Members can remember the long hot summers we used to have, we needed to cut off much of our electricity generation during those times. Wind is an excellent resource in that respect, because turbines can be switched off easily. It is both costly and difficult to turn off a gas-fired, coal-fired or nuclear power station. We need the flexibility that wind and other renewables give us for the future. Of course, on long, cold winter days when the wind is not blowing, we need base load at full capacity, but the other side of the coin appears when we have warm weather.

The economics of wind are also controversial. In response to the mini-inquiry by the Select Committee on Energy and Climate Change on the economics of wind power, DECC gave some interesting figures. Two large companies undertook research on DECC’s behalf, levelising the cost per megawatt-hour of the different technologies for producing electricity. Nuclear was by far the cheapest, but wind was considerably higher. I have the figures in front of me; they give costs looking forward to new technologies that may or may not develop in future. Nuclear costs £60 to £80 per MWh, compared with some £94 per MWh for onshore wind and £110 per MWh for offshore wind. Clean coal and gas using carbon capture and storage cost some £100 to £150 per MWh.

We need to develop those technologies to make them more efficient. Logically, if we can improve gas, coal and nuclear, we can improve our wind technology as well. I have seen some of the new turbines that are being developed. They run for longer, are more efficient and need less maintenance, so we can reduce costs.

Subsidy is not a dirty word to me. Most energy generation in most countries has had some form of subsidy, and emerging gas in this country was 100% subsidised by the taxpayer when it came into effect. I do not feel that we should not subsidise new technologies, although I think that the Government are right to move subsidy under the renewables obligation from onshore wind to offshore, now that onshore is established, to make offshore wind more competitive.

[Ian Lucas]

It is critical to emphasise, because it is not emphasised often enough, that the UK is in the vanguard of offshore wind technology. We must press forward with it. We need to consider the support and assistance given to companies such as Prysmian Cables in my constituency, which has created jobs as a result of the investment in offshore wind. That needs to be factored into the equation when we assess whether to invest further.

[Albert Owen]

My hon. Friend is absolutely right.

Moving on to the additional costs of renewables, one controversial point is the impact of renewable energy on household bills, and on business bills. We talk, rightly, about protecting the consumer, but a lot of British businesses are suffering from the high cost of energy. According to DECC’s estimate, as recently as 2011, public policies, including environmentally friendly subsidies to renewables, comprised about 7% of our bills. The Committee on Climate Change projects that costs might rise as much as 33% before 2020. Of that, two thirds will be contributed by the rising price of fossil fuels and one third by the cost of renewables. I want to put that in a proper context for the future. Yes, there is a cost in moving towards renewables, but there will also be a huge cost if we do not, given the rising price of fossil fuels.

As my hon. Friend the Member for Wrexham said, we must also consider the pluses of investing in wind generation and renewables. As he pointed out in his example, the socio-economic benefits to the north Wales region, and across the United Kingdom, would be huge. RenewableUK estimates that by 2022, the United Kingdom’s offshore wind industry will generate some £60 billion in gross value added, supporting some 45,000 jobs. Other estimates are even higher—as high as 0.4% of UK GDP and more than 90,000 jobs. That is the potential. This debate is about focusing attention on what has been achieved and on the potential for the future. Regions such as north Wales can benefit because of their natural resources, deep-water harbours and skills base.

The Celtic array project is not that far away, Minister, and we need to get this right. We need to get the port development right. We need to increase our skills base. We need stability, so that companies from all over the United Kingdom and beyond have the confidence to invest in our country. I support wind generation on the north Wales coast. It harnesses the benefits for the region. It will have benefits for the north of Ireland, the north-west of Britain and other parts of the United Kingdom, too. Governments at all levels need to work together. I urge the Minister, in the first few weeks in his job, to contact the Welsh Government—the First Minister is responsible for energy matters—and discuss these issues, so that Wales can have the benefits that it deserves for the future.

Wind energy is simply about turning wind into electricity, but we need to generate real jobs, too. We are on the right track—a few years of stable government has given investors what they need. There are concerns now, and I hope that the Minister will address them in his winding-up speech. I will allow other hon. Members their opportunity to discuss what I think is an exciting future, with north-west Wales playing a big part in the low-carbon economy that we all want to build, and the UK being a world leader in that economy.