Oral Answers to Questions
James Davies Excerpts(2 months, 3 weeks ago)
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Dr James Davies (Vale of Clwyd) (Con)
Scott Benton (Blackpool South) (Ind)
The Secretary of State for Wales (David T. C. Davies)
The Welsh Government’s policy on the blanket 20 mph speed limit is damaging communities and businesses across Wales. All of us support 20 mph limits if there is a safety reason outside schools, hospitals or old people’s homes, but the blanket 20 mph limit is, by the Welsh Government’s own figures, going to create a £4.5 billion hit to the Welsh economy.
Dr James Davies
In my constituency, bus services no longer serve Dyserth’s high street or the Tweedmill shopping outlet in Trefnant, which impacts on some of the most vulnerable people. Arriva has stated that the Welsh Government’s 20 mph policy is a key reason for that. Does the Secretary of State agree that the Welsh Government have failed in multiple ways to properly consider the impact of their policy and that they should repeal it in full?
David T. C. Davies
My hon. Friend is absolutely correct. Not only have the Welsh Government not considered the impact of this policy on the economy, businesses and commuters, but they have failed to consider the impact on users of public transport. We are seeing bus timetables across the whole of Wales being ripped up because of this daft policy. The Welsh Labour Government seem determined to apply a handbrake to the Welsh economy.
Oral Answers to Questions
James Davies Excerpts(6 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
This Government are committed to strengthening the economy of north Wales and north-west England. We have recently announced that we will invest £36 billion in Network North, including £1 billion to electrify the north Wales main line. That will improve connectivity across the region, bringing many parts of north Wales within one hour of Manchester and Liverpool by rail.
Scott Benton
The announcement of the electrification of the north Wales main line will help to improve transport links between this region and the north-west of England, supporting economic growth, tourism and jobs across both areas. Does my hon. Friend agree that residents across Wales and my constituents in Blackpool will see real improvements in their local transport infrastructure as part of their share of this £36 billion that is available?
Dr Davies
I completely agree with my hon. Friend. North Wales often feels overlooked by the Welsh Government. Indeed, the Welsh Government have said that the electrification of the north Wales line is not their priority. Just as it was Conservative Governments who built key elements of the A55 in the 1980s and 1990s, we now see a Conservative Government investing further in the infrastructure and prospects of north Wales and north-west England.
Conor McGinn (St Helens North) (Ind)
Connectivity is key to underpinning that economic growth, and the railway line between north Wales, through my constituency in St Helens and on to Manchester should epitomise that, but unfortunately it does not seem to be working at the minute. It is frequently overcrowded, and there are cancellations at the Manchester end and at the Chester end. Will the Minister speak to his colleagues in the Department for Transport as well as Transport for Wales, so that we might make some progress and make sure that my constituents can get to work and this line can deliver economic growth for the north-west and north Wales?
Dr Davies
Of course, improving rail is not simply about the rail infrastructure; it is also about the train operating companies and how they operate. The hon. Gentleman is right that Transport for Wales has struggled from time to time. I can reassure him that I do have discussions with it. In fact, I am also meeting the rail Minister, my hon. Friend the Member for Bexhill and Battle (Huw Merriman) later today, when I will reiterate those concerns.
Jessica Morden (Newport East) (Lab)
Thank you, Mr Speaker. Strong economic links are dependent on the Government actually having an economic plan, but the Conservatives’ track record speaks for itself. They cancelled the electrification of the main line to Swansea, they are spending half a billion pounds but still potentially making up to 3,000 steelworkers redundant and their pitiful semiconductor strategy does not even give us a bit part on the world stage. Why should anyone believe that their latest promises made for north Wales at a desperate party conference are worth the fag packet they are written on?
Dr Davies
I welcome the hon. Member to her position. She shares Welsh lessons with me, and I hope she will continue to do so. I urge her to be somewhat more positive about the £1 billion that has been announced for infrastructure development in north Wales by means of the electrification. Also, in terms of the steel industry at Port Talbot, the half a billion pounds has saved many jobs and means that decarbonisation can occur.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
HS2 is
“going to benefit Wales, it’s going to benefit people in North Wales who will benefit from better access at Crewe to London.”
That was the Secretary of State’s central argument for withholding billions of pounds from Wales by claiming that HS2 benefits us. Now that the link at Crewe is another casualty of Tory chaos, will Wales Office Ministers stay true to their own logic and urge the Treasury to class HS2 as English-only?
Dr Davies
As the right hon. Lady knows, rail infrastructure is not devolved. I would argue that investment in Great Britain’s rail infrastructure is of value to those in north Wales and the rest of Wales. Furthermore, HS2 is an important connection to the west midlands from London. Passengers from London to north Wales are likely to still use that.
Liz Saville Roberts
We all know that the money that has been committed is illustrative. In a major boost to Plaid Cymru’s campaign, the National Infrastructure Commission for Wales has proposed devolving the Crown estate and reinvesting profits in communities through a sovereign wealth fund. The commission criticised the current system of wealth transfer from the poorest country in Britain to Westminster as “illogical and bizarre”. Whose side is the Minister on: Welsh communities or a system that extracts our natural wealth?
Dr Davies
We have had this discussion on previous occasions in various settings, but I would argue that the Crown estate allows this country to share risks and opportunities that it deals with. It does a fantastic job and I simply do not agree.
Dame Andrea Leadsom (South Northamptonshire) (Con)
Robin Millar (Aberconwy) (Con)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
Of course, I work within the NHS in north-east Wales and west Cheshire and see the stark realities of the disparity in healthcare services between the two. It is concerning that the Welsh Government have missed their target to eliminate two-year waits in most specialties and that more than 27,000 patients have been waiting over two years for treatment in Wales, compared with circa 280 in the whole of England. The Health Secretary has offered to consider requests from the Welsh Government to use alternate providers in England to reduce waiting lists and the distress that they bring.
Dame Andrea Leadsom
With the Welsh Labour Government facing cuts to their NHS as a decision of their own, does the Minister not find it extraordinary that they are looking at spending £122 million on new politicians and £33 million on a blanket 20 mph speed limit that nobody voted for in Wales?
Dr Davies
I entirely agree with my right hon. Friend. It is scandalous that the Labour Welsh Government are prioritising spending on more politicians in Cardiff Bay as well as an unpopular 20 mph default speed limit. Their decisions mean less funding for the NHS, education and other important devolved services. They have the potential instead to invest in important capital projects such as the Royal Alexandra Hospital in Rhyl. They must re-examine their agenda.
Robin Millar
It gets worse: the UK Government have twice offered the Welsh Labour Government help in reducing patient waiting lists for important medical procedures, but neither offer has been taken up. Will my hon. Friend the Minister confirm that, in fact, that offer still stands and that patients in Wales who are stuck and suffering on waiting lists have not been forgotten by the UK Government?
Dr Davies
Having spoken with the Department of Health and Social Care, I can confirm that the offer still stands. My hon. Friend will find it of interest to know that the Labour Welsh Government did write in response to the latest offer several weeks after that offer was made. Unfortunately, the Minister did not confirm whether they would accept the offer. In the interests of tens of thousands of patients, I strongly encourage them to do so.
Chris Elmore (Ogmore) (Lab)
Tonia Antoniazzi (Gower) (Lab)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The Secretary of State and I have regular discussions with Cabinet colleagues on a range of issues, including energy costs. The Government spent nearly £40 billion protecting households and businesses from high energy bills over last winter, meaning that between October 2022 and June 2023, a typical household saw half of their energy bills paid for by the Government.
Tonia Antoniazzi
The Government did not listen to the renewable energy sector, which repeatedly warned them that the budget set for this year’s offshore wind auction was too low to attract bidders to develop offshore wind in the Celtic sea. Can the Minister tell the House why that advice was ignored, leading to not a single bid being made?
Dr James Davies
What I can tell the hon. Lady is that it is an issue of discussion that the Secretary of State and I are engaged with. We understand the importance of floating offshore wind in the Celtic sea and it will progress in due course.
David Duguid (Banff and Buchan) (Con)
David Linden (Glasgow East) (SNP)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The Government recognise that this is a concerning time for mortgage holders, especially those who are due to come to the end of a fixed deal in the immediate future. We are supporting borrowers who are struggling with their mortgage payments through the new mortgage charter. It sets out the standards that signatory lenders will adopt, including new flexibilities to help customers manage their mortgage payments over a short period.
David Linden
Throughout Scotland, people are paying the price of the Westminster-made cost of living crisis as a result of this Conservative Government and the actions of the Tories in crashing the economy last year. Will the Government bring forward that mortgage interest relief scheme for my constituents, and perhaps even for those in East Kilbride, Strathaven and Lesmahagow?
Dr Davies
The Government have, of course, provided “support for mortgage interest” loans for those receiving income-related benefits, and the pre-action protocol helps to make repossessions less likely. That is in addition to the action that I have already outlined.
Ann Clwyd
James Davies Excerpts(7 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
I congratulate the hon. Member for Cynon Valley (Beth Winter) on securing the debate. It is a privilege to celebrate the contributions of her predecessor, the right hon. Ann Clwyd, the former Member of Parliament for Cynon Valley, who sadly passed away in July, aged 86.
Ann was not just a public servant; she was also a great ambassador, whose dedication to her constituents and commitment to the values of justice and compassion have left a significant positive impact on many people’s lives. She was born in Flintshire on 21 March 1937 to parents Gwilym and Elizabeth. Ann was educated at Halkyn Primary School, Holywell Grammar School, the Queen’s School, Chester, and University College Bangor before becoming a student teacher at Hope School in Flintshire. She moved on to become a BBC studio manager, freelance reporter and producer, and then a journalist for The Guardian and The Observer. As we have heard, she was a major advocate for the Welsh language. She campaigned to secure important funding to support it. In fact, I believe she could only speak Welsh until the age of five. She always made sure she took the parliamentary oath yn Cymraeg. In 1963, Ann married Owen Roberts, a television director and producer.
Ann’s journey in politics spans several decades, during which she consistently demonstrated her resilience, integrity and genuine concern for the wellbeing of her constituents. Having joined the Labour party in 1968, she first stood for Parliament in 1970 in my part of the world, the old constituency of Denbigh. She then contested Gloucester in 1974 before being elected as a Member of the European Parliament for Mid and West Wales from 1979-84. While putting together these words, I realised that she would have served alongside my relative Beata Brookes, the former MEP for North Wales. Then, in a by-election in May 1984, she became the Member of Parliament for the Cynon Valley, becoming, as we have heard, the first female MP to a hold a seat in the south Wales valleys. That was a seat she held until she stood down in 2019. In total, she served 35 years in this place and is therefore Wales’s longest-serving female MP to date. She was also, I believe, the oldest woman to have sat in the House of Commons.
Between 1987 and 1995, Ann was Opposition Front Bench spokesperson for women, education, overseas development and co-operation, Wales, national heritage, employment and foreign affairs. During that period, she was, as we have heard, sacked on two occasions for choosing not to toe the party line, an indication that she was independently minded and not afraid to put her principles above all else. Indeed, her autobiography was entitled, “Rebel With a Cause”.
One of the most commendable aspects of Ann Clwyd’s political career was her relentless pursuit of social justice. She championed human rights, advocating for those who often have no voice. Her work as the shadow Secretary of State for International Development and her role as the chair of the all-party parliamentary human rights group demonstrate her dedication to improving the lives of people in both her constituency and around the world.
In 1994, she staged a 27-day sit-in at Tower colliery, near Hirwaun, in protest at British Coal’s decision to close the last deep pit in Wales. The miners, of course, pooled their redundancy money to take it over and it went on to produce coal until 2008.
In 2003, the then Government moved to amend the existing law on female circumcision—the Prohibition of Female Circumcision Act 1985—after a private Member’s Bill was introduced by Ann. The Female Genital Mutilation Act 2003 increased the maximum penalty from five to 14 years in jail.
Ann consistently campaigned for healthcare reform, and for better resourcing of the NHS. She worked to improve patient care, fighting for better working conditions for NHS professionals and increased transparency in the healthcare system. She was appointed by the then Prime Minister David Cameron to lead a review on complaint procedures in the NHS following the death of her own husband, Owen Roberts. While leading that review, she raised some difficult but honest concerns about healthcare in Wales. Her role as chair of the all-party parliamentary group on dementia helped to ensure that those affected by that devastating condition receive the support and care that they deserve.
Ann Clwyd was not just a leader in her own right; she was also a strong supporter of women’s rights and gender equality. Her work in that area paved the way for greater gender representation in politics, and has inspired many young women to pursue careers in public service. Her legacy in this regard is a testament to her desire for creating a more inclusive and equitable society. She was made a Privy Counsellor in 2004.
Throughout her career, Ann Clwyd’s ability to connect with people from all walks of life, listen to their concerns and take action on their behalf earned her the respect and admiration of her constituents and colleagues alike —and we have certainly heard plenty of examples of that this evening. I served in the House alongside Ann between 2015 and 2017, and enjoyed my occasional conversations with her about the NHS and our shared connections in north Wales. She was personable, passionate and forthright.
I understand that a public service to remember Ann’s life and work will be held at 2 pm on 13 October at St Elvan’s Church in Aberdare. I have no doubt that her legacy will continue to inspire many for generations to come.
Mr Deputy Speaker (Sir Roger Gale)
Ann Clwyd had many friends across the House, and I am proud to have been allowed to call myself one of them.
Question put and agreed to.
Oral Answers to Questions
James Davies Excerpts(9 months, 3 weeks ago)
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Alexander Stafford (Rother Valley) (Con)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
To continue the topic from the previous question, there are regular discussions with Cabinet colleagues on the potential for new nuclear in Wales. This Government are launching Great British Nuclear to support our ambition to ramp up nuclear capacity in the UK to up to 24 GW by 2050. GBN is actively working with the Government on access to potential sites for new nuclear projects.
Bob Blackman
Nuclear power has an important part to play in a balanced energy policy to provide energy security. Does my hon. Friend agree that Wylfa is an ideal site not only to continue generating nuclear power, but to expand beyond it, because the reality is that without improving and continuing that site, nuclear power has to come to Wales?
Dr Davies
I agree with my hon. Friend. Wylfa is one of the best sites in this country, if not in Europe, for nuclear power generation due to its optimal location and geology. I am confident that the site’s potential to support our 24 GW target can be utilised. I know it is a site that GBN is very interested in.
Alexander Stafford
Nuclear power is an excellent and much-needed source of power, but when demand for energy decreases, that power is often wasted. Has the Minister looked at any new Welsh nuclear power plants producing so-called pink hydrogen at times when electricity demands are low, so that we are not wasting that energy?
Dr Davies
We recognise the important role of both nuclear energy and hydrogen in reaching our net zero goals. We are committed to a nuclear future for Wales and so far this year I have visited the Wylfa site and Bangor University’s Nuclear Futures Institute. My hon. Friend is right to mention the importance of storing energy effectively. Our 2021 hydrogen strategy laid out our intention to explore the use of electricity and heat from nuclear power stations to produce pink hydrogen.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Will the Minister confirm that there is not an approved small modular reactor design in the UK yet, so talking of installing SMRs at Wylfa and elsewhere is just fantasy?
Dr Davies
The hon. Gentleman mentioned SMRs; I know Great British Nuclear is looking into the importance of those to our future net zero contributions and there will be sites, I hope, across the United Kingdom.
Mrs Flick Drummond (Meon Valley) (Con)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The Secretary of State was delighted recently to announce two successful freeports in Wales—the Celtic freeport and Anglesey freeport—which will each be supported by £26 million of Government funding. We have regular discussions with Cabinet colleagues on the delivery of the two Welsh freeports, which we aim to bring into operation as soon as possible.
Mrs Drummond
I have been a keen supporter of the new Solent freeport joining my Meon Valley constituency. I know the economic benefits that freeports can bring to businesses and workers. Can my hon. Friend assure me that he is doing everything he can to ensure that the two freeport bids in Wales move ahead swiftly to benefit the communities they serve?
Dr Davies
I certainly can. The two new freeports will help to level up north-west and south-west Wales and bring new high-skilled jobs to successful areas. They will become drivers of growth and employment in their areas, acting as hubs for regeneration, innovation and global trade. I understand my hon. Friend’s desire to see rapid progress. Both the UK Government and the Welsh Government will work closely with the successful bidders to develop their outline business case so that we can understand the benefits, costs and the most beneficial intervention options.
Stephen Kinnock (Aberavon) (Lab)
The Celtic freeport bid is based on floating offshore wind. The floating offshore wind manufacturing investment scheme is a vital programme to get the infrastructure in the port ready for the fabrication of substructures and turbines for floating offshore wind. As the voice of Wales in the Cabinet, what steps is the Secretary of State taking with Cabinet colleagues to secure FLOWMIS to maximise the benefits of the Celtic sea freeport?
Dr Davies
The hon. Gentleman is absolutely right about that. He may also be aware of yesterday’s announcement of the leasing area in the Celtic sea for floating offshore wind. My right hon. Friend the Secretary of State has regular meetings with stakeholders, as do I, about FLOWMIS and the necessary infrastructure to bring that into being.
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
I have regular discussions with Department for Transport colleagues on a wide range of transport matters. Wales receives proportionally greater funding than the rest of Great Britain. In fact, figures from the 2021-22 financial year demonstrate that Government funding of the operational railway was 32.1p per kilometre travelled in England, 57.3p in Scotland and 59.3p in Wales.
Mr Roberts
When I asked the Department for Transport about the maintenance funding spent on the Wales route, it told me that it gets 4% or 5% of the spending and it equates to 4% of the network, so it must be fair. The problem is that the figures were based on train miles rather than track length, and the train miles are always lower in Wales because of a lack of investment in infrastructure. The track length is actually 11%, not 4%. Will the Minister make representations to the DFT to increase rail spending proportionately to make it a fairer settlement?
Dr Davies
The hon. Member is right to reference investment in rail in north Wales. Growth Track 360 has pressed for that hard—I have been involved with that, as he has—and the North Wales Transport Commission has recently outlined similar projects. He will be aware of the Union connectivity review development funding pot that has been available, and the entry in RNEP for the north Wales coast main line in relation to line speeds.
Andrew Selous (South West Bedfordshire) (Con)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
Foreign investment created 3,062 jobs over the last year. With the number of FDI projects also on the rise, that shows that more and more investors are looking to Wales. This is testament to the £52 million that we are providing to support two new freeports, our commitment to delivering at least one investment zone in Wales, and the £1 billion we are investing in the next decade to boost the UK’s global strengths in semiconductors.
Andrew Selous
Does the Minister agree that supply chain businesses need
“a modern, functioning road network to keep goods moving efficiently”—
whether they are on the M4, the A55 or elsewhere—and that the failure of the Welsh Government to commit to this is a “body blow”, according to the Road Haulage Association director, Geraint Davies?
Dr Davies
I absolutely do; my hon. Friend makes an excellent point. The Welsh Government’s response to the roads review is more of a roadblock, sadly. Their opposition to the M4 relief road and other schemes continues to hold the Welsh economy back. The Welsh Government’s impact assessment suggests that the impact of the 20-mile-an-hour default speed limit could be as much as £4.5 billion. The Welsh Government, I am afraid, are advertising that Wales is closed for business.
Dame Nia Griffith (Llanelli) (Lab)
The automotive sector contributes significantly to the economy in Wales, including Gestamp in my constituency, where investment in the latest technology to make lighter, tougher bodywork parts contributes to the safety and energy efficiency of vehicles, including new electric vehicles. However, with the US and the EU offering big incentives to companies to invest in new green technologies, what talks has the Minister had with ministerial colleagues about offering similar incentives to get the investment from automotive companies to ensure that we keep a vibrant automotive sector?
Dr Davies
I know that that question is very important to the hon. Member and her constituency. I point her in the direction of the growth deals, which have an important role to play, and regular ongoing discussions are held between the Secretary of State, the Wales Office and other Government Departments.
Michael Fabricant (Lichfield) (Con)
Investment in Wales is also conditional on there being adequate healthcare. Is my hon. Friend aware that, in Tywyn on the west coast of Wales, a hospital that was built only six or seven years ago has now closed? People in that area have to travel many, many miles to get healthcare when it is needed.
Dr Davies
I thank my hon. Friend for raising that issue. Clearly, the provision of healthcare services in rural areas is often very difficult, but he will be aware of the particular challenges in Wales, especially north Wales, over the availability of safe and accessible healthcare services. He is right to raise that point.
Christina Rees (Neath) (Ind)
As a GP, the Minister knows the value of community engagement. Will he ask the Home Secretary to increase investment in policing in Wales to ensure that there is an effective response to tackling crime when bad things happen?
Dr Davies
The hon. Member will be aware that there are more police officers in all the forces in Wales than ever before. The Government and the Home Office have been investing in the uplift programme and ensuring that there is a strong police presence across Wales.
Kirsten Oswald (East Renfrewshire) (SNP)
Oral Answers to Questions
James Davies Excerpts(11 months, 1 week ago)
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Selaine Saxby (North Devon) (Con)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The tourism industry in south Wales and south-west England is incredibly important. I understand that councils on both sides of the Bristol channel are in discussions on how to progress this issue. I would be happy to meet my hon. Friend to discuss it in more detail.
Selaine Saxby
I thank my hon. Friend for his answer. Ahead of that meeting, might my hon. Friend be able to secure an analysis of a passenger ferry service and the benefits to businesses between Ilfracombe and south Wales?
Dr Davies
It is important that we grasp all opportunities to level up our economy through tourism. That could include a passenger ferry between Ilfracombe and south Wales. Many of the policy levers affecting the visitor economy in Wales are devolved. It is important that interested parties work closely with the relevant councils on the matter. The UK Government are passionate about tourism, unlike the Welsh Government, who seem more focused on putting in place a tourism tax.
Stephen Kinnock (Aberavon) (Lab)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
Steel is vital to the UK. We are actively engaging with our industry to secure a positive and sustainable future. Industrial sectors, including steel, have been able to bid for Government funds worth more than £1 billion to support them to cut emissions and become more energy efficient.
Stephen Kinnock
The Governments of the United States and the EU have developed active industrial strategies, with multi-billion-pound investments to support their steel industries as they transition to green steel production. Here in the UK, the cavalry is coming in the form of a Labour Government and our £3 billion green steel fund. What a contrast with the Government party, which is completely and utterly asleep at the wheel on steel. When will the Secretary of State start standing up for our proud Welsh steel industry? When will he get his colleagues in Cabinet to wake up to the fact that we are losing the race for green steel investment?
Dr Davies
The hon. Member will be aware that the Secretary of State for Business and Trade visited Tata Steel in Port Talbot only recently. That shows her commitment to it. He will also be aware of the British Industry Supercharger announced only a few months ago, which aims to bring energy costs for energy-intensive industries such as steel production in line with those of other similar countries.
Dr Luke Evans (Bosworth) (Con)
Bill Esterson (Sefton Central) (Lab)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
This Government are committed to supporting the decarbonisation of Welsh industry. We have committed £20 billion over the next two decades to the deployment of innovative carbon capture technology. This builds on existing support for the HyNet cluster in north Wales and north-west England and the £21.5 million to develop the South Wales industrial cluster.
Stephen Morgan
The best way to bring down bills in the long term for businesses in Wales and across the UK is to help transition industries away from fossil fuels. That is why Labour is calling for a national wealth fund, so that we can help industries such as steel to win the race for the future. Will the Minister tell the House specifically what steps he is taking to help heavy industry decarbonise?
Dr Davies
I thank the hon. Gentleman for that question. He will of course be aware of the array of measures that are in place to help decarbonisation—the carbon capture, utilisation and storage infrastructure fund, the industrial fuel switching fund, the Industrial Decarbonisation Research and Innovation Centre, the competitive industrial energy transformation fund and the industrial strategy challenge fund among others.
Bill Esterson
The UK is the only country in the G7 whose steel industry is currently in decline. Why will the Government not end their sticking-plaster approach, match Labour’s commitment to a £3 billion green steel fund, and invest in a long-term plan to decarbonise the vital steel sector in Wales?
Dr Davies
Let me I repeat what I said earlier. The Secretary of State visited the plant in Port Talbot recently, and is committed to it. We need to see an electric arc furnace, because that is the way to protect jobs and ensure that we have steel production in the UK.
Stephen Crabb (Preseli Pembrokeshire) (Con)
The industrial corridor that runs west along south Wales all the way to my constituency is one of the most important in the UK. It is also one of the most challenging when it comes to decarbonisation. Does my hon. Friend agree that the Government’s policies, the “Powering Up Britain” set of energy interventions and the Celtic freeport that we have secured point the way to a successful decarbonisation strategy for this critically important part of Wales?
Dr Davies
My right hon. Friend is, of course, entirely right. South Wales does not have former oil and gas fields in which we can store carbon, but it does have the Celtic freeport, and non-pipeline transport of captured carbon to fields elsewhere will secure decarbonisation for south Wales.
Robbie Moore (Keighley) (Con)
Oral Answers to Questions
James Davies Excerpts(1 year ago)
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Mark Tami (Alyn and Deeside) (Lab)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The Secretary of State has regular discussions with Cabinet colleagues on a range of topics. In England we have committed to tackling issues in the private rental sector, including improving standards through the introduction of the decent homes standard, and providing tenants with greater security by banning “no fault” evictions. However, as the right hon. Member will know, rental issues in Wales are a matter for the Welsh Government.
Mark Tami
Low quality, expensive private rented accommodation is a problem not only in Wales but throughout the UK. Does the Minister agree that we need more council housing built to a high standard, and will he join me in praising Flintshire County Council for its excellent programme of council house building? That would be an example to the rest of the country, but we need more investment in that area overall.
Dr James Davies
I thank the right hon. Gentleman for that question. North Wales certainly has a deficit of housing, as do many other areas, and, as he says, that certainly needs to be addressed through building more homes. I would point out that in 2021-22 there were three new homes built in England per 1,000 and just 1.7 per 1,000 in Wales, so there is much work to do.
Mr David Jones (Clwyd West) (Con)
According to Rent Smart Wales, the number of registered landlords in Wales fell by 328 during the two years to January this year and there were 301 fewer rental properties available. Does my hon. Friend agree that a significant cause of the current worrying state of the private rental market in Wales is the new legislation introduced by the Welsh Government, which imposes expensive and byzantine licensing obligations on landlords? Does he also agree with the Labour cabinet member for housing on Torfaen Borough Council, Councillor David Daniels, who recently told the council’s scrutiny committee that the new law was the straw that broke the camel’s back, because for landlords it has just been one thing too many?
Dr James Davies
I thank my right hon. Friend and constituency neighbour. He is perfectly right to raise this issue. He is referring to the Renting Homes (Wales) Act 2016. It may be well intentioned, but the fact is that there is a shortage of housing and if we want to keep landlords in the market we need to incentivise them, so the mandatory regulations and costs imposed are really in place at the wrong time.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
Private rental costs in Wales increased by 4.2% in the year to February 2023, the highest annual percentage change since the Tories came to power. The Government have accepted the need to uplift benefits in line with inflation, but they have completely failed to accept that the same principles should, at the very least, apply to the local housing allowance. Given that rent is the largest item of a family’s budget, can the Minister explain exactly why this is one area of policy where the Government do not seem to believe that inflation exists?
Dr James Davies
The hon. Gentleman will be aware that the local housing allowance rates were raised to the 30th percentile in 2020 and that there is also support through the discretionary housing payment scheme. There is, in addition, the whole array of support that has been provided through the recent cost of living pressures.
Liz Twist (Blaydon) (Lab)
Robbie Moore (Keighley) (Con)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The spring Budget delivered for Wales. As announced, the Government will provide £20 million to restore the Holyhead breakwater, deliver at least one investment zone in Wales and provide up to £20 billion for the development of carbon capture usage and storage across the UK, which Wales is well-placed to benefit from.
Robbie Moore
The UK Government prove time and again that they are delivering for Wales, whether through supporting hundreds of thousands of households with the energy price guarantee or through the £20-million Holyhead breakwater. However, does my hon. Friend agree that the Welsh Labour Government are advertising Wales as closed for business, with the recent ban on road building and tax on tourism?
Dr Davies
I could not agree more. The Welsh Government’s response to the roads review was more of a roadblock. There has been widespread rejection of the tourism tax from the sector, including UK Hospitality, which has called it “anti-competitive”. The contrast between the approaches of the two Governments is stark: the UK Government are striking trade deals and promoting Britain as open for business, while the Welsh Government seem focused on punishing small business owners.
Sir Chris Bryant (Rhondda) (Lab)
A little birdy tells me that the Secretary of State has had a meeting about the Rhondda tunnel in the last few days. I hope very much—as no doubt do you, Mr Speaker—that there will be an announcement soon of some money to ensure that the Rhondda tunnel can be opened up, making it the second longest cycle tunnel in the whole of Europe and a great advert for tourism in the Welsh valleys. Will he meet me and my hon. Friend the Member for Aberavon (Stephen Kinnock) so that we can explain to him its significant benefits and he can lobby to get that money for the Rhondda tunnel?
Dr Davies
The hon. Member is right to raise that question. My right hon. Friend the Secretary of State tells me that he would be happy to hold a meeting with him, and adds that Rhondda Cynon Taf council should be encouraged to make a levelling-up fund bid.
Jerome Mayhew (Broadland) (Con)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
I have discussions with the Welsh Government about the adequacy of Welsh healthcare services—most recently about Betsi Cadwaladr University Health Board being put back into special measures. However, the Department for Health and Social Care regularly engages and collaborates with the Welsh Government to share best practice on achieving better outcomes for patients UK-wide.
Jerome Mayhew
The Secretary of State has just told us that the Welsh Government receives £1.20 in health funding for every pound spent in England. Despite that, the Welsh Government are the only Government in the United Kingdom to cut funding to the NHS. Does my hon. Friend agree that the Labour party has proved itself incapable in office of running health services?
Dr Davies
I very much share his concern across Wales, especially north Wales. Yesterday, in the latest troubling revelations about Betsi Cadwaladr, we learned that the First Minister was wrong to state that the Auditor General had recommended taking the board out of special measures just prior to the 2020 devolved elections. On funding, the Welsh Government may repeatedly call for more money, but they are the only Government in the UK to cut health spending. In the latest budget they have set out plans to cut day-to-day spending on the delivery of NHS services in real terms this year compared with last year, while the UK Government are providing a real-terms increase.
Rob Roberts (Delyn) (Ind)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The Secretary of State for Wales has regular discussions with the First Minister on how our two Governments can work together within the current devolution settlement to deliver for Wales. Our recent agreement to establish two Welsh freeports shows what we can achieve when we work together for the benefit of people and communities in Wales.
Rob Roberts
Given that the Senedd sits for only two days a week and, if yesterday’s reports are anything to go by, that the First Minister is less than truthful with his answers anyway, can my hon. Friend fathom any reason why they need to expand Senedd membership by 60%, at huge cost to the Welsh taxpayer? Does he agree with me that the Welsh people should be asked whether they want more MSs working only two days a week?
Dr Davies
The hon. Member is right to ask that question. I fully agree with him that the last thing people in Wales want is more politicians in Cardiff bay. The Welsh Government would be better spending the estimated £100 million that they suppose this would cost on public services. If the Welsh Government and their separatist allies are so confident that these proposals should progress, then I agree that they should seek the agreement of people in Wales through a referendum.
Spring Budget: Wales
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The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Newport West (Ruth Jones) on securing this important debate, which has triggered many views from opposing directions. I am grateful to all those who have contributed, including my hon. Friend the Member for Ynys Môn (Virginia Crosbie), the hon. Members for Cynon Valley (Beth Winter), for Carmarthen East and Dinefwr (Jonathan Edwards), for Ceredigion (Ben Lake) and for Neath (Christina Rees), and of course the Opposition spokesperson, the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones).
I am pleased to have this opportunity to discuss the recent spring Budget and my right hon. Friend the Chancellor’s plan for long-term, sustainable, healthy growth in Wales and across the United Kingdom. I will come to the questions raised by hon. Members in due course.
I was incredibly pleased to see my right hon. Friends the Prime Minister and the Secretary of State for Wales on Ynys Môn last week announcing not just one but two new freeports for Wales. The jobs and investment that will come as a result of that announcement will help deliver on our commitments to level up Wales and grow the economy. The fact that we have been able to deliver two freeports for Wales jointly with the Welsh Government is a testament to what can be achieved when the two Governments work together. We saw friendly competitors from Ynys Môn and Preseli Pembrokeshire sitting next to each other earlier, and both of them had a critical role to play in that development, so many thanks to them.
Earlier this month, my right hon. Friend the Chancellor set out a Budget that ensures that the benefits of economic growth are felt everywhere, including in Wales. It promotes the conditions for enterprise to succeed and encourages the inactive back into employment. At the autumn statement in 2022, the Government took the difficult decisions on tax and spending needed to restore economic stability, support public services and lay the foundation for long-term growth. At the spring Budget two weeks ago, the Government built on that foundation with a plan to deliver on three of the Prime Minister’s five key priorities: to get debt falling, halve inflation and grow the economy.
I want first to highlight the funding that the Budget included for multiple projects that will specifically benefit Wales. We are supporting the restoration of the grade II* listed Holyhead breakwater with £20 million of funding for the Welsh Government to ensure the long-term viability of that vital transport hub and, through it, trade links with Ireland.
My right hon. Friend the Chancellor set out that the Government will provide up to £20 billion over the next two decades to support the development of carbon capture, utilisation and storage. That is not something we have heard about today, but the HyNet cluster in north-east Wales and north-west England is already benefiting from our existing £1 billion commitment through the cluster sequencing programme. Decarbonising heavy industry is vital to driving economic growth and creating high-quality, sustainable jobs across the region, while helping us meet our climate commitments. The increased £20 billion ambition will further expand CCUS across industry, which will be vital for economic growth across Wales.
The Government are launching Great British Nuclear to address constraints in the nuclear market and support new nuclear builds as the Government work towards net zero.
Liz Saville Roberts
It has already been mentioned that an SMR at the Trawsfynydd site, as well as at Wylfa, is very much in the anticipation. The Minister will be aware that there are proposals for a national medical isotope centre at Trawsfynydd, known as Project ARTHUR. What discussions have there been with the Welsh Government about bringing that forward? There are concerns that there will be a shortage as reactors across Europe and the world cease to produce. When it comes to the medical security of the United Kingdom, there is real potential here.
Dr Davies
The right hon. Lady is right to raise that point. If I may, I will write to her with the latest position on that, but she may find that there will be announcements in the relatively near future on Great British Nuclear and its plans, which might assist in that regard. We know that Wales has the best British sites for new nuclear, including Trawsfynydd in her constituency and Wylfa Newydd. I look forward to working with GBN to champion a revived nuclear future for north Wales.
Investment zones were mentioned. Wales, too, will benefit from the Government delivering 12 investment zones across the UK, including at least one in Wales. The programme will provide each successful area with up to £80 million over five years to grow a cluster in one of our key future sectors, bringing investment into areas that have traditionally underperformed economically.
The UK Government are working with the devolved Administrations to develop an investment zone programme for each of Wales, Scotland and Northern Ireland. In addition, the UK Government and devolved Administrations will work together to explore potential options for delivery of new levelling-up partnerships in Wales, Scotland and Northern Ireland, such as those announced for England by the Chancellor in the Budget.
The Budget set out a number of measures that will create the right conditions for enterprise in Wales in all sectors, based on competitive taxes, access to capital and smarter regulation. We will support growth in Wales by attracting the most productive companies to set up, invest and grow in Wales and in the rest of the UK. We expect about 220,000 businesses in Wales to benefit from a range of administrative changes to simplify the tax system, allowing Welsh small and medium-sized enterprises to spend more time on their business and less on meeting their tax obligations.
During the debate, there were a multitude of questions on all sorts of issues. I will do my best to address as many of those as possible. I should declare first that I am a member of the British Medical Association, although I do not expect to benefit from the pension changes myself. Last week, I met the chair of the BMA, Philip Banfield, whom I know from his time as a consultant at Glan Clwyd Hospital. Glan Clwyd, like many in Wales, is struggling, as the Healthcare Inspectorate Wales report has detailed yet again today, so anything that can help to retain senior doctors’ hours and their presence in departments is certainly to be welcomed.
Wayne David
Is it not the case that the people who will benefit from the new arrangements are not just doctors, but many other wealthy people?
Dr Davies
Inevitably, those at the pinnacle or conclusions of their careers often earn a lot more, but they also have a great deal to offer the economy and society in general. It is difficult to be too black and white about those who are of benefit and those whom we need to retain in the workforce. As the hon. Gentleman knows, in some respects the Budget centred on trying to ensure that the workforce are there for the economy that we need.
My hon. Friend the Member for Ynys Môn referred to childcare. I hope that the Welsh Government will replicate our offer to parents of 30 hours’ free childcare for children between the ages of nine months and four years, and that they will not, as the First Minister appeared to suggest the other day, be different for the sake of it.
The shared prosperity fund has been raised. This is a complicated matter, but the Welsh Government have alleged that Wales is being short-changed. However, I argue that they are making flawed and hypothetical assumptions, and it is my understanding that Welsh Government officials in the Finance Committee in Cardiff Bay have broadly accepted that. It is important to compare like with like. The SPF is intended to replace the European regional development fund and the European social fund, while the remaining funds, covering agriculture and fisheries, are accessed through other means. Different time periods can be looked at as well—it is not just about when the funding is received, but about when it is spent. The funds do ramp up and down in the UK Government’s intentions, as they did with the EU. The Institute for Fiscal Studies has validated the UK Government’s approach. I also emphasise the fact that the local growth funds, including the levelling-up fund and the community ownership fund, are in addition to the shared prosperity fund, so actually Wales has a record level of investment coming from the UK Government.
Gerald Jones
The Minister mentioned the shared prosperity fund, which is significant investment that could transform communities across Wales. He also highlighted the positive joint working of the Welsh and UK Governments on freeports. Why does he think that the UK Government have frozen out the Welsh Government in the case of the shared prosperity fund, when there is an example of good working together? Why can that not apply across the board?
Dr Davies
My understanding is that the Welsh Government have been feeding into the general approach on shared prosperity fund allocation. In my local area, there is a Welsh Government representative on the body that advises on the funding. There are a range of contributors, as there should be. Proper devolution is the key point, in that local authorities are taking a leading role.
Hon. Members are right to raise the issue of universities, because of course universities in Wales have been dependent on European structural funds. My understanding is that Universities Wales has consistently expressed concerns that the Welsh Government do not invest an equal amount in Welsh universities compared with England. It has also highlighted that the lower level of core funding places Welsh universities at a disadvantage compared with their counterparts in England when competing for UK-wide research and development funding opportunities. To be constructive, I emphasise that the Secretary of State for Wales has asked universities to provide details of the economic value of programmes that were previously funded by the EU structural funds. He and I are very interested in trying to assist on that.
Beth Winter
Can the Minister categorically assure us that the £71 million bridging fund that is urgently needed to plug the gap will be provided in time to save the more than 1,000 jobs at imminent risk in the higher education sector in Wales?
Dr Davies
The hon. Member will know that devolution is in place and that the Welsh Government have a role to play here. I assure her that this is an issue that I and the Secretary of State take very seriously, and we are working with universities to assist them.
Time is marching on, and I must make some progress. To support employment in Wales and across the UK, the UK Government are helping parents on universal credit who are moving into work or looking to increase their working hours by making sure they have support for childcare up front. We are also increasing support for those parents on UC by increasing the childcare maximum entitlement to more than £950 for one child and more than £1,630 for two children.
I had hoped to go on and talk further about the comprehensive cost of living support in place for large numbers of people—everyone, in fact—as well as the assistance with the cost of energy. I do not have time to do that, but I am always happy to liaise directly with right hon. and hon. Members on their specific questions.
I thank the hon. Member for Newport West once again for bringing forward this important debate. It is useful to have a discussion of all the matters raised. I look forward to doing my bit to help support the people of Wales as we continue through this difficult period.
25 Years of Devolution in Wales
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The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
It is a pleasure to serve under your chairmanship, Sir Christopher. I congratulate my hon. Friend the Member for Delyn (Rob Roberts) on securing the debate, which has triggered a wide-ranging discussion on Welsh devolution.
As we have heard throughout the debate, devolution in Wales has evolved considerably since the incredibly close referendum in 1997, when I was still in school—quite possibly, my hon. Friend was too. Successive UK Governments have devolved further powers to Cardiff Bay in an attempt to place the settlement on a firmer footing and to put more responsibility and accountability at its heart. That has included providing powers to make primary legislation in devolved areas, and powers to introduce replacements for stamp duty land tax and landfill tax in Wales, as well as the introduction of a new Welsh rate of income tax and powers for Welsh Ministers to borrow to fund capital expenditure.
Nowadays, the devolution settlement is based on the reserved powers model, in line with that in place in Scotland. The devolved Administration have greater powers to manage their own affairs, as well as matters relating to elections, transport and natural resources. There has been a great deal of debate this morning about the future of Welsh devolution and whether the current boundary between devolved and reserved powers is correct. It is clear that different views exist, and we must acknowledge that they are reflected among the people of Wales.
In the debate, my hon. Friend the Member for Delyn focused on disappointing policy outcomes with reference to Betsi Cadwaladr University Health Board, education, transport and so on. He also talked of the north-south divide in Wales, and the sad disengagement with politics—turnout at the last devolved election was just under 47%, compared with 67% at the general election.
The hon. Member for Strangford (Jim Shannon) intervened to talk about his desire to see local representation wherever possible, and more positive comments came from the hon. Members for Gordon (Richard Thomson), for Llanelli (Dame Nia Griffith) and for Merthyr Tydfil and Rhymney (Gerald Jones). The hon. Member for Llanelli talked about the importance of the accessibility of Ministers at all levels of government, and co-operation too.
I am firmly of the opinion that the overwhelming priority of the people of Wales is not an incessant, one-way transfer of powers down the M4, or a route to more separatism, but delivery on the important matters of the day, such as health, the cost of living and education. Sadly, we continue to see poor levels of interest and awareness of the roles of our various and different levels of Government, and therefore often limited democratic accountability.
In the context of Wales, it is important to remember that 50% of the population of Wales live within 25 miles of the border with England, which does influence how many people view the devolved settlement. Bringing decision making on devolved issues closer to people affected by them is one of the real opportunities of the devolution agenda, but it would be remiss of me, as we reflect on the last 25 years of devolution in Wales, not to acknowledge that there are legitimate concerns among many in Wales about devolution and the direction of travel that has been taken in Cardiff Bay.
All too often, we have seen attempts to centralise decision making within the Welsh Government, which goes against the concept of true devolution. Contrary to some of the arguments that have been made today, it has been particularly pleasing to me to see this Government deliver on our promises of true devolution in the allocation of shared prosperity funding. I have seen that at first hand in Denbighshire, my own county, as a member of the county’s shared prosperity fund partnership group, which allows new and refreshing approaches to local problems and opportunities, driven by local people.
Rob Roberts
The Minister makes a good point. It reminded me of the point the hon. Member for Strangford (Jim Shannon) made about local decision making. About two years ago, the First Minister appeared in front of the Welsh Affairs Committee. I remember asking him whether he was going to devolve more powers to the regions—specifically, to north Wales—as he had previously said that he thought that was a good idea. I asked him when those powers were going to come and what powers they were going to be, as none had materialised. I think the First Minister was a little bit indignant at the question. Does the Minister agree that the current arrangement of devolution is not working, and a potential solution might be to give more autonomy to north Wales to make some decisions for itself?
Dr Davies
My hon. Friend makes a strong argument. In fact, he will be aware that one of the Labour Members in the Senedd called for greater powers and autonomy for north Wales in response to the recent roads review, and today a representative of the business community in north Wales has called for a directly elected mayor for north Wales. It comes back to my point that devolution should be true in nature; it should be led by local people and local representatives, which is not always the case at present.
Under the Welsh Labour Government, the economy in Wales is growing at a slower rate than in the rest of the UK. In education, Wales is, sadly, at the bottom of the PISA rankings compared with other parts of the UK. In the health service, we see abysmal performance and outcomes data, and we also see what I regard as very detrimental policies on road building and tourism. All of that is despite the UK Government providing the Welsh Government with record funding, which is, as we have heard, higher per head of population than in England.
The UK Government have a duty of care towards all British citizens and it is important that UK-wide comparable data is used to justify and learn from different policy approaches across the country. The days of “devolve and forget” have to be over. I am deeply concerned that, despite the challenges the Welsh economy faces and failing devolved public services in Wales, the Welsh Government’s unrelenting focus is often on constitutional matters, including increasing the number of politicians in Cardiff Bay and changing its voting system, which some have suggested would be at a cost of £100 million over five years.
Devolution in Wales means that Wales has two Governments. Both should be fully focused on the issues that really matter: levelling up our economy, creating jobs and supporting people with the cost of living. The UK Government’s investment to address those priorities, through initiatives such as the levelling-up fund and our support with energy costs, highlights the benefits that Wales enjoys from being part of the United Kingdom.
I want to emphasise something that is not always said. A very clear majority in Wales believe in the United Kingdom and are proud to be part of it, and this place—Parliament—will always have a critical role in delivering for Wales and its people. Our approach to devolution is underpinned by our commitment to work collaboratively with the Welsh Government and all the devolved Administrations.
Gerald Jones
On the point about collaboration with the Welsh Government, does the Minister think the way the UK Government clawed back funding from the Welsh Government is unacceptable? My understanding is that issues around switching between revenue and capital have been agreed many times before. The level of underspend is significantly below that of some other UK Departments. Does he agree that was a pretty poor show by the UK Government?
Dr Davies
The hon. Gentleman puts that in an interesting way. The other side of the story is that all who are entrusted with spending public money should do so carefully, and should make efforts to comply with the rules and arrangements around that money. The other way of looking at that is that the Welsh Government failed in their duty to spend wisely the money that was available to them.
Moving on from that, the landmark agreement reached last year between the UK and devolved Governments further strengthens our intergovernmental structures. The new structures provide a firm foundation to deepen our partnership working. Our joint work on city and growth deals in Wales, as well as our announcement last week that we will establish two freeports in Wales, following agreement with the Welsh Government, exemplify our approach to collaboration.
Over the past 25 years, we have seen dramatic changes in the way in which Wales is governed. It is clear that a wide range of views exists over how that might change in future, but I urge all to focus not on the constitutional debate, but on delivering on the real priorities for the people of Wales.
Draft Local Government and Elections (Wales) Act 2021 (Corporate Joint Committees) (Consequential Amendments) Order 2023
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The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
I beg to move,
That the Committee has considered the draft Local Government and Elections (Wales) Act 2021 (Corporate Joint Committees) (Consequential Amendments) Order 2023.
It is a pleasure to serve under your chairmanship, Mr Vickers. The draft order will make changes to UK legislation following the establishment of corporate joint committees in Wales under powers in the Senedd’s Local Government and Elections (Wales) Act 2021. That Act established a new framework for regional collaboration between local authorities in Wales on bodies called corporate joint committees. It is fair to say that there has been a mixed reaction to them, but the concept behind them is that they can exercise functions regionally that have been transferred from principal councils. They can be established at the request of two or more principal councils or, in relation to some functions, at the instigation of Welsh Ministers.
The Welsh Government have established four CJCs—North Wales, Mid Wales, South East Wales and South West Wales—reflecting the four city and growth deal areas. Each CJC comprises the leaders of its constituent county and county borough councils, and eligible office holders from national park authorities in the CJC area. As corporate bodies, CJCs are able to employ staff directly, hold assets, and manage budgets. CJCs formally began operating on 1 April 2021. From June of last year, they came under a duty to prepare strategic development plans and regional transport plans for their region. They have the power to do anything to enhance or promote the economic wellbeing of their area. As CJCs develop, Welsh Ministers may decide to increase their functions through regulations, although the Welsh Government have said that there are no plans to do so.
This order will put CJCs on the same footing as local authorities in Wales in a number of respects. In particular, the order deals with most fiscal and employment matters relating to CJCs, with the exception of VAT. His Majesty’s Treasury made a separate order admitting the four CJCs into the VAT refund scheme from 9 February. Article 2 of the order adds CJCs to the definition of “local authority” in paragraph 1(2)(a) of schedule 4 to the National Loans Act 1968. That will allow the Treasury to provide loans to CJCs, just as it can to local authorities. Section 119 of the Local Government Act 1972 provides that in the event of the death of a local authority officer, moneys owing to their estate from the local authority can be paid to personal representatives of the estate of the deceased. Article 3 of the order clarifies that the term “local authority” in section 119 covers a CJC.
Articles 4 and 5 of the order provide that CJCs are to be treated in the same way as local authorities in respect of tax on their income, the taxation of chargeable gains, and corporation tax. The Redundancy Payments (Continuity of Employment in Local Government, etc.) (Modification) Order 1999 modifies certain provisions of the Employment Rights Act 1996 concerning redundancy payments for persons employed by certain local government employers and other employers in related sectors. Article 6 of the order ensures that CJC employees have the same rights as principal council staff in respect of any redundancy payments.
Finally, article 7 adds the four CJCs to the list of scheduled employers in part 1 of schedule 2 to the Local Government Pension Scheme Regulations 2013, and sets out in part 2 of schedule 3 to those regulations which local Government pension scheme administrating authorities will apply to CJCs. This will ensure that CJC employees are automatically admitted to a pension scheme.
The four city and growth deals have demonstrated the benefits of breaking down local administrative barriers and taking a wider regional approach to delivering jobs and economic growth. They are delivering for their areas through initiatives such as the Pentre Awel project in Llanelli and the digital signal processing centre at Bangor University. Indeed, some regions are already exploring the case for embedding their city and growth deal work in their CJC. I trust that the Welsh regions will benefit from the strategic, more joined-up approach to land use and transport planning that the CJCs will provide. I commend the order to the Committee.
Dr Davies
I thank hon. Members for their short contributions to the debate. The order makes a number of consequential changes to UK law that are necessary to place the new corporate joint committees in Wales on the same footing as all local authorities. I welcome the comments and support of the shadow Minister, the hon. Member for Merthyr Tydfil and Rhymney. On the accountability point that my hon. Friend the Member for Congleton raised, the representatives of each constituent local authority will be accountable to the members of that local authority, and ultimately to the electorate. The Welsh Government will also oversee the performance of these bodies. Of course, this project is primarily led by the Welsh Government, so these questions are also to be directed at them.
I close by offering my thanks for the productive manner in which the UK and Welsh Governments have worked together to prepare the order, and I commend it to the Committee.
Question put and agreed to.
Oral Answers to Questions
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The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
Diolch yn fawr, Mr Llefarydd, and a happy St David’s Day—dydd gŵyl Dewi hapus.
The Government are committed to improving digital connectivity as demonstrated by our commitment to Project Gigabit, the shared rural network and, most recently, the new very hard-to-reach pilots, two of which are located in Wales.
Ben Lake
Ofcom reports that some 30,000 premises across the UK have no access to decent broadband or to a decent 4G signal, including rural areas of Ceredigion, such as Lledrod, Pennant, Talgarreg, Cribyn, Sarnau, Abermeurig and Coed-y-bryn to name but a few. Will the Minister make representations to colleagues in the Department for Digital, Culture, Media and Sport to ensure that those areas are prioritised in the next iteration of Project Gigabit?
Dr Davies
The hon. Member is right to raise that issue. Let me reiterate that we have Project Gigabit, which is an ambitious £5 billion project to reach the hardest-to-reach areas outside of the commercial scope, and also the Alpha trials using satellites, two of which are in Snowdonia National Park. There are, as he will be aware, also opportunities through the Mid Wales growth deal. I would be happy to meet him to discuss what more we can do. With regard to mobile networks, there is the shared rural network, alongside the use of the Home Office’s extended area service infrastructure.
Michael Fabricant (Lichfield) (Con)
The hon. Member for Ceredigion (Ben Lake) is absolutely right to raise the issues that he has—he is often right, actually. I declare an interest here, Mr Speaker. In the Dyfi valley, in Gwynedd, broadband fibre was connected to premises after being a complete non-spot for so many years. Can my hon. Friend the Minister carry on with the hard work to ensure that there is gigabit connection within Cymru—Wales?
Dr Davies
I know that my hon. Friend is a regular visitor to Wales. He is quite right to raise the importance of broadband both to people’s modern way of life and also to business. There has been progress, but there is much more to do.
Jo Stevens (Cardiff Central) (Lab)
Happy St David’s Day, Mr Speaker. I thank London Welsh School for such a lovely flag-raising ceremony this morning.
On the subject of digital connectivity, EU structural funds have helped our universities to deliver research, innovation and skills development across areas that the Minister’s Government consider a priority, including digital transformation. Many of these projects now face a cliff-edge as EU structural funds finish, with 60 projects in Wales due to end this year, putting around 1,000 skilled jobs at risk. What conversations has he and the Secretary of State had with Cabinet colleagues to protect those valuable skilled jobs?
Dr Davies
I thank the hon. Lady for that question. She is right that academic institutions have been reliant on EU structural funding in the past. There is, of course, the shared prosperity fund coming forward, which universities will need to apply to. I know that my colleague the Secretary of State is visiting all universities across Wales. I have accompanied him to Bangor University and I have also visited Wrexham University very recently, and both are adjusting to the new landscape.
Jo Stevens
Going back to the subject of gigabit, the Government’s Project Gigabit boasts that it will deliver lightning-fast reliable broadband to every corner of the UK, but the project update that was published this week by the Minister’s Government shows that Wales has the lowest coverage of any of the home nations—just 57% compared with, for example, 73% in England and 89% in Northern Ireland. Does that not represent yet another broken promise by the Tories to Wales?
Dr Davies
The hon. Lady is aware that the geography and topography of Wales make digital connections more tricky than in some other areas. She is also aware that it is the Welsh Government who have been leading on the roll-out of broadband in Wales in conjunction with Building Digital UK, and I agree that more work needs to be done to improve those figures.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Diolch yn fawr iawn, Lefarydd, a dydd gŵyl Dewi hapus i chithau ac i bawb—happy St. David’s Day to everybody.
Although the Minister might blame the mountains, it is evident that poor connectivity in rural areas is clearly one of the factors holding businesses back. Another is trade barriers, particularly for Holyhead. Pre-Brexit, about 30% of all trade through the port went on to Northern Ireland from Dublin. That trade has collapsed and it is not protected by green lanes. Stena Line says that there needs to be a solution to this disparity. Can he come up with a solution to protect Holyhead from his Government’s policy?
Dr Davies
The right hon. Lady recently attended a debate that I responded to in Westminster Hall, where she was making the case for a freeport in Holyhead. She knows that there are opportunities, through freeports, to boost the trade through Holyhead and other ports in Wales that are seeking the same designation. I urge her to continue that fight.
Liz Saville Roberts
I urge his Government to come forward with news, because Wales desperately needs two freeports at least.
The Prime Minister said yesterday that Northern Ireland is in the “unbelievably special position” of having privileged access not just to the UK market, but hey, to the EU single market. That is an excellent argument for Plaid Cymru’s policy to rejoin the single market. Why is it not good enough for Wales?
Dr Davies
Wales voted to leave the EU quite decisively. The right hon. Lady knows that the situation in Northern Ireland is really quite different from that in Wales, and this is a carefully put together deal to accommodate that situation. I feel quite sure that the EU is not in the business of allowing what she suggests.
Theresa Villiers (Chipping Barnet) (Con)
Liz Twist (Blaydon) (Lab)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
The UK Government are committed to supporting renewable energy generation in Wales, including for innovative tidal stream technologies at Morlais through our flagship contracts for difference scheme. I will continue to work across Government to ensure that we can capitalise on the huge renewable energy opportunities Wales has to offer.
Jeff Smith
The best way to bring down bills for Welsh businesses long term is to help to transition away from fossil fuels. That is why Labour is calling for a national wealth fund, so we can help industries such as Welsh steel win the race in the future. What comparable steps will the Government take to help heavy industry decarbonise?
Dr Davies
The Government have an ambitious programme to decarbonise the country by 2050, and we have provided £21.5 million to the south Wales industrial cluster to decarbonise heavy industry and support the transition to net zero. Of course, the opportunities for floating offshore wind in that region could be critical too.
Liz Twist
A Labour Government will more than quadruple offshore wind to make the UK a clean energy superpower, making the most of the fantastic natural resources in Wales. When will the Government match that ambition so that sectors such as Welsh offshore wind can achieve their full potential?
Dr Davies
As I mentioned in my previous answer, there is an ambitious programme for offshore wind, including floating offshore wind in south-west Wales and south-west England. There is an intention for 4 GW of power to be provided through the Celtic sea by 2035 and many more gigawatts in the future.
Stephen Crabb (Preseli Pembrokeshire) (Con)
On this St David’s Day there are many reasons to be positive about the Welsh economy, not least the role that Wales will play in delivering greater energy security for the UK and helping move us to net zero. On that theme, would the Minister agree that we have a brilliant opportunity with the deployment of floating offshore wind in the Celtic sea, but we need the Government to go ahead and give us the Celtic freeport for south Wales? We also have a huge opportunity on Ynys Môn with the development of new gigawatt-scale nuclear power there.
Dr Davies
My right hon. Friend is a strong campaigner on this front. I would add that £60 million is being invested in the marine project at Pembroke dock through the Swansea Bay city deal, so there is plenty of potential for his region.
Sir Oliver Heald (North East Hertfordshire) (Con)
Does the Minister agree that over recent months we have seen better co-operation between the European Union and the UK over energy? Does he agree that the Windsor framework will mean that we can go much further? That co-operation will release the potential for energy security and hopefully see prices come down, which will help Wales.
Dr Davies
My right hon. and learned Friend is of course right that co-operation is always a good thing, and in fact interconnectors are critical to our energy security. Only last week I met a company proposing to connect mainland Great Britain with the Republic of Ireland through a second interconnector.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
We know that oil and gas producers have been making record profits for more than 18 months, but the Government’s paltry windfall tax began in May last year. How can the Government justify leaving billions of pounds of excess profits untouched while so many people across Wales are struggling with household bills and the rising cost of living crisis?
Dr Davies
Mercifully, energy costs now appear to be on a downward trajectory, but the hon. Gentleman will be aware that up to 70% in tax has been taken from energy producers through the windfall tax, which is bringing a great deal of money into the Treasury to help to fund the support packages that people are relying on.
Dr Luke Evans (Bosworth) (Con)
Christina Rees (Neath) (Ind)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
This Government are committed to delivering high-quality public services. For instance, by next month, there will be a record number of police officers serving communities across Wales, and we have seen crime decrease by 10% across England and Wales between 2021 and 2022. As the hon. Lady is aware, many public services, including health and education, are devolved in Wales.
Christina Rees
Will the Minister urge his colleagues to accept the Welsh Affairs Committee’s recommendation that HS2 be reclassified as an England-only project? Wales will then receive Barnett consequentials estimated at £5 billion, allowing the Welsh Labour Government to continue to expand public transport services, and people in Wales can then receive the same benefits from HS2 as those in England, Scotland and Northern Ireland.
Dr Davies
The hon. Lady knows that HS2 is an England and Wales project and is an important backbone of Britain’s rail infrastructure, and the important thing for Wales is to be able to plug in to it and take advantage of it. We also need to see the roads review that the Welsh Government have brought forward scrapped. We need to see investment in our roads.