St David’s Day and Welsh Affairs
Jessica Morden Excerpts(4 days, 21 hours ago)
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Jessica Morden (Newport East) (Lab)
Diolch, Madam Deputy Speaker. I wish everyone a happy St David’s Day for Saturday.
As always, it is a pleasure to have the opportunity to speak in the Chamber about our wonderful city of Newport, and to see my constituency neighbour, my hon. Friend the Member for Newport West and Islwyn (Ruth Jones), who is certainly a very proud Newportonian, open the debate so ably—just as ably as she chairs the Welsh Affairs Committee.
For generations, Newport has been known for its rich industrial heritage. It was once central to the world during the industrial revolution, when iron and coal were shipped globally from its docks. On a point of trivia, those docks were disguised as the port of Southampton in the recent “Gavin and Stacey” Christmas special, when Nessa—a very close friend of my hon. Friend—tries to head off to Panama. Today, a new industrial revolution is under way in city. It is bringing well-paid and highly skilled jobs, fostering innovation, and marking a significant shift in Newport’s economic fortunes. I am speaking about this today as we look to the UK Government and our excellent Secretary of State to help us.
Newport is rapidly becoming a hub for data and technology, attracting global businesses and securing billions of pounds of investment, both in my constituency of Newport East and in the constituency of my hon. Friend the Member for Newport West and Islwyn. From the decades-long work of KLA in Ringland, to the Vishay site, Vantage and Microsoft at the other end of the city, which my hon. Friend represents, we have a globally significant semiconductor cluster. Newport is still a steel city—more of that later—but is also evolving into a “cwm silicon”: a Welsh silicon valley.
Powered by renewables, innovators such as SAE are leading the way, repurposing the former coal-fired power station at Uskmouth into one of the UK’s largest battery energy storage plants. This will store energy from renewables—it is right next to the Severn estuary, so any investment in tidal technology is welcome there—and feed it directly into the grid, ensuring that Newport steps into this new industrial revolution with the environment at its heart, protecting our unique natural surroundings.
At the centre of all this sits our city’s port. As the UK’s largest steel port, it is leading the way in becoming a port of the future, with an ambitious plan by Associated British Ports to decarbonise. That will not only sustain the port’s long-term viability and provide a source of renewable energy for the city but create more jobs in the industries of the future for the people of Newport. I hope my right hon. Friend the Secretary of State will ensure that a strategy for Welsh ports is very much part of the industrial strategy.
The city has come a long way since 1962, when Llanwern steelworks became the first place in the world to use a computer to control a hot strip mill. It continues to produce world-class automotive steel, thanks to its dedicated and highly skilled workforce, represented by excellent unions, and in recent months it reached a new output record of 14 kilotons in a week following the introduction of new technology. With the ongoing work by the Government to establish a long-term and ambitious vision for the UK steel industry through the industrial strategy and the steel strategy, Llanwern has the potential to maintain an exciting future on the cutting edge of steel making.
However, it is important that the steel strategy addresses the major challenges the industry faces. We appreciate the £2.5 billion of support for the industry, but ahead of the expiry of the existing steel safeguards next year, the industry is calling for robust quotas that will protect the UK market from global excess capacity and trade diversion, especially in the light of US tariffs. The strategy also needs to address the persistent issue of energy costs and procurement, and an update from the Secretary of State on any conversations with the Cabinet about steel would be most welcome.
As in the last industrial revolution, when Newport was key to getting black gold to the world, the city is once again essential to the industries of tomorrow. Without all the vital components—wafers, data centres for hyperscalers, semiconductor manufacturing equipment and renewable energy capacity—the UK risks missing out on this AI and data-driven industrial revolution. With support for and investment in Newport from the UK and Welsh Governments, working in partnership with industry, we can move forward with the ambitious plans outlined in our manifesto, with the industrial strategy now coming together.
Newport sits at the heart of all that is vital to transforming public services and driving economic growth across the UK. Our Newport city council leader, Dimitri Batrouni, would love to pursue plans for an AI growth zone, to make use of our strengths and assets and to take advantage of the incredible opportunities that lie ahead for our city. My hon. Friend the Member for Newport West and Islwyn and I would welcome a meeting with the Secretary of State about supporting these plans. As Newport representatives with our councillors and Members of the Senedd, we have big ambitions for our city in this field.
In closing, I invite all Members to pick up their mobile phones or tablets—if they are allowed to. Without the research and development work happening at KLA in my constituency, we would not be able to do everything we can on our devices. Every day, each of us interacts with hundreds of devices that would not exist without the cutting-edge R&D carried out by KLA, which builds the equipment needed to manufacture semiconductors. Newport is right at the heart of all that. Thank you, Madam Deputy Speaker, for the opportunity to raise this today. I look forward to the Secretary of State’s reply and to working with colleagues in Government at both ends of the M4 to pursue this ambitious vision for our city.
Several hon. Members rose—
Oral Answers to Questions
Jessica Morden Excerpts(5 months, 2 weeks ago)
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Jessica Morden (Newport East) (Lab)
The Secretary of State for Wales (Jo Stevens)
Under my chairmanship, the transition board has moved from discussion to delivery. Last month, I announced £13.5 million for supply chain, skills and employability funds. I also announced our business and community pledge scheme, bringing together over 50 organisations in support of affected workers.
Jo Stevens
The two funds that have been announced are specifically for people in businesses and in the supply chain, because we know that they have already been affected by the uncertainty of the situation at Port Talbot. They will help people to retrain and reskill into new employment, and will help businesses to diversify and go into new markets if they are a primary customer of Tata Steel.
Jessica Morden
I know that my right hon. Friend will serve Wales admirably in her new role.
Llanwern steelworks in Newport is a key strategic site that manufactures world-class automotive steel and more, and it has so much potential. We all await the statement later, but can she outline what she has been doing, alongside the Department for Business and Trade, to secure future investment in Llanwern as part of ongoing discussions with Tata?
Jo Stevens
The Government absolutely understand the importance of Llanwern as a key manufacturing facility for steel products. We have worked with Tata Steel UK to ensure that Llanwern is clearly considered in plans for the future of steel in south Wales. My hon. Friend is a dedicated advocate for the workers at Llanwern, and I know that that she will follow closely the upcoming statement from the Secretary of State for Business and Trade.
The Prime Minister
We are absolutely committed to the transition to renewable energy, because it gives us energy dependence. It lowers bills and, of course, the next generation of jobs are tied up with it. We have to do it in a cost-effective way, but we will make those decisions in a cost-effective way.
Jessica Morden (Newport East) (Lab)
The UK steel industry needs a serious Government who work in partnership with both businesses and trade unions to secure a transition that is right for the workforce and delivers economic growth in Wales. We know that deindustrialisation can be devastating for communities, so can the Prime Minister tell me how the Government are safeguarding jobs and securing the future of steelmaking communities like ours for generations to come?
The Prime Minister
We are taking every step we can in relation to the steel industry because it is vital that we give it the support that it needs. We need steel in this country. We need to steel made in this country, and our plans and our missions mean that we are going to need more steel, not less. It is the duty of the Government to ensure that jobs, communities and people are not ignored in the transition and that jobs are protected. The Business Secretary will provide an update to the House this afternoon.
Oral Answers to Questions
Jessica Morden Excerpts(9 months, 3 weeks ago)
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Jessica Morden (Newport East) (Lab)
No contrition, then, in any of those answers from the Secretary of State, whose party has, by freezing tax thresholds, piled on £960 extra on average to the tax bills of around 400,000 pensioners in Wales. The Prime Minister has now made a totally unfunded £46 billion promise to scrap national insurance. Will the Secretary of State tell us how on earth the Government will pay for that, and will he rule out raising income tax by 8p or scrapping winter fuel payments to do so?
Port Talbot Steelworks
Jessica Morden Excerpts(10 months ago)
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David T. C. Davies
A few people seem to have the idea that building a DRI plant would resolve this problem. The first point to remember is that if a DRI plant were built on the site, it would probably save another 200 jobs. There is a plant in Texas, run by Voestalpine, which I believe produces 2 million tonnes or so of steel every year and employs 200 people, so a DRI plant will not resolve the problem. Clearly, DRI plants require access to a regular and affordable amount of natural gas. There is, however, nothing whatsoever to stop Tata, at some point in future, building a DRI plant to go along with the electric arc furnace, if it believes that that is commercially sensible. Even if it were to do that, it would not really resolve the problem that we face: 2,800 jobs being lost in Port Talbot. At best, it would save another 200 jobs.
Jessica Morden (Newport East) (Lab)
I am sorry, but this Government’s lack of ambition for our steel industry is just disgraceful. As many of the Secretary of State’s constituents work in Llanwern, he should understand that decisions made about Port Talbot have a direct impact on Newport and can lead to problems with securing volume for Llanwern. We are looking at potential redundancies, and uncertainty about the long-term future of the plant. It is not too late for the Secretary of State to stand up for his constituents, show more ambition for our steel industry—as other countries do—argue for a fairer transition, and try to avoid compulsory redundancies. Why will he not do that for his own constituents?
David T. C. Davies
We have acknowledged all along that under the proposals, Port Talbot planned to close down the pickle line at Llanwern, but not until the electric arc furnace was built. We discussed that at the last meeting of the transition board, and we all agreed that just as we want to help everyone in Port Talbot, we want to help anyone affected in Llanwern.
The hon. Lady keeps talking about a lack of ambition. We can all dream about a situation in which blast furnace 4 is kept open for another six years, but what we cannot do is force Tata to continue accepting losses of over £1 million a day in order for that to happen. I have to say that there has been a lack of responsibility on the part of some Labour Members—though not any present in this Chamber—who seem to have gone around suggesting that they have a special, costed secret plan that would save all those jobs. They do not. They have not put any kind of a costed plan to any senior management in Tata. They have never sat down and said, “If you do this, we will give you this, and that way, we could save all those jobs.” They have simply gone around saying that they want to see all the jobs saved. We all want to see every single job saved, but we cannot force Tata to continue to take losses of over £1 million a day.
Spring Budget 2024: Welsh Economy
Jessica Morden Excerpts(10 months, 2 weeks ago)
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Jessica Morden (Newport East) (Lab)
I congratulate my neighbour, my hon. Friend the Member for Newport West (Ruth Jones), on securing this very important debate; in fact, I believe that this is the second year running that she has secured it. As always, she made her points well, as did all the speakers so far. I echo her comments on Gaza and the middle east. We share the city of Newport, and I know that that is a matter of great concern.
As my hon. Friend and neighbour set out, this is a Government clinging on to power, having presided over 14 years of managed decline. They lack the interest, vision and appetite to deliver the fundamental change that our country needs. We have had some excellent contributions from Members who will have had direct feedback from their constituents, be it on the doorsteps in places such as Monmouth, or in their surgeries. I certainly have: over the Easter recess we carried out a cost of living survey in Newport East, and people told us very strongly just how held back they feel by this failing Tory Government.
My hon. Friend put it well when she said that “never have a British Government asked their people…to pay so much for so little.” Having played fast and loose with the public finances, the Conservative party is passing on the cost of its incompetence to those who can least afford it just as public services, on which so many of them rely, are crumbling under the weight of its cuts. My hon. Friend the Member for Llanelli (Dame Nia Griffith) is quite right: the spring Budget is smoke and mirrors, and people are not taken in by it.
Let us take ourselves back to 2019, when those on the Government Benches stood on manifesto commitments not to raise taxes; to reduce debt; to reduce poverty; and to help people with cost of living pressures. Three Prime Ministers and five Chancellors later, and with the Tory chaos almost halving the Government’s parliamentary majority, those promises lie in tatters. As hon. Members have already said, it is the case, despite cuts to national insurance, which we support, that the income tax threshold freezes mean that taxes are rising at a record pace. They are now at a 70-year high, and rising in each year of the spring Budget’s forecast period. That will make households in Wales £700 worse off, as my hon. Friend the Member for Newport West said. I was very struck by what was said to me by a constituent I met in Magor on Saturday on the issue of the income tax threshold freezes, which was raised by my hon. Friend the Member for Llanelli. The constituent described to me how her small monthly pension was hit by the impact of that and how unfair that was.
Dame Nia Griffith
I am sure that my hon. Friend will mention what I forgot to mention, which is that pensioners do not pay national insurance, so they have had no benefit whatever from the NI cut.
Jessica Morden
I thank my hon. Friend for making that very pertinent point. There is a big impact on pensioners, as she has said.
The UK debt to GDP ratio is at its highest in 70 years, with no sign of falling. The number of people living in absolute poverty is expected to increase this year to 12 million, with 4.2 million children living in poverty. This year, 62,000 householders in Wales will face the Tory mortgage bombshell—which hon. Members have mentioned—as their fixed-term rates expire, with the average homeowner expected to face a £240 hike in their monthly bill. As hon. Members have said, this is the first Parliament on record for which living standards are set to be lower by the end than they were at the beginning. The Tory Government are breaking promises and breaking records—and all to the detriment of Welsh people struggling to make ends meet. The Prime Minister has joined his predecessor in backing the sort of enormous and entirely unfunded tax cuts that led to the swift demise of her premiership—this time in the form of the abolition of national insurance. Perhaps the Minister will explain to us in this debate, because the Prime Minister could not—he repeatedly failed to answer the question at Prime Minister’s questions today—what the Tory Government will cut to find the £46 billion needed every year for their new policy, or whether they plan to extend their tax-raising record by piling further costs on to Welsh working people.
Not only have the tired Tory Government lost any semblance of economic competence—driving down business confidence—but they have lost their moral compass. Over the last few days, my constituents Colin and Janet Smith have been sharing with the media the story of their decades-long fight for justice for their son, Colin, who tragically died aged seven, having contracted AIDS and hepatitis C from contaminated blood administered by the NHS. For years after his death they faced bullying, abuse and the loss of employment, due to the stigma surrounding his illnesses. I know the family very well, and the absolute tragedy of what he was put through. Members of the House will know that the Smith family’s story is not unique. They have campaigned tirelessly alongside so many others for the truth and for just compensation, so I would like the Minister to tell us why, despite the final recommendations on compensation having been delivered to Ministers by Sir Brian Langstaff, chair of the inquiry, more than a year ago, when he said the Government could get on with making the compensation payments, there is not a single word about it in the spring Budget. I think that is an absolute disgrace.
Welsh steelworkers are right to feel betrayed by a Government willing to countenance 3,000 redundancies across south Wales while our European steelmaking competitors make historic investments in green steel. The almost-overnight end to our virgin-steelmaking capability in Port Talbot is not an inevitability. Rather than relying on imports from across the world, exposing us to the same global risks that precipitated the energy crisis, Ministers must revisit the multi-union plan, described by Tata itself as credible, to work with our steelworkers towards a just transition to the greener future for steel that we all want.
As my hon. Friend the Member for Llanelli mentioned, a Labour Government in Westminster would invest £3 billion in green steel within the first term, protecting livelihoods and the future of our sovereign British steel manufacture, which is vital for our plan to make Britain a clean energy superpower by doubling onshore wind, tripling solar and quadrupling offshore wind.
It is not too late for the Government to change direction on this, and it would be particularly important for my hon. Friend the Member for Newport West, with the Llanwern steelworks in Newport. It would not be the first time a Conservative press release has sounded suspiciously familiar to Labour colleagues. Whether it is the narrowing of the non-dom tax loophole or the half-hearted levy on oil and gas giants, the Prime Minister appears to be slowly realising that the path to a fairer, brighter future for Wales and Britain is through the progressive policies of a Welsh Labour Government working with a Labour Government in Westminster.
The consequential funding that will flow from a UK Labour Government to Welsh public services will be critical. Importantly, my hon. Friend the Member for Pontypridd (Alex Davies-Jones) mentioned the cost burden on local government too. Our public services face intense challenges, particularly in the context of the value of the Welsh Government’s budget having dropped by £1.3 billion in real terms as a result of the Tories’ economic mismanagement.
Some progress was to be welcomed from the spring Budget. We have repeatedly called on the Government to get a move on with the new nuclear site at Wylfa. The purchase of the site is therefore good news, but we are still nowhere near seeing the prospect of clean energy and thousands of good jobs returning to Anglesey. Had they not dithered for five years, we could have seen the plant 50% complete, with up to 8,500 construction jobs under way, around 900 permanent jobs to follow and £400 million for the local economy in wages.
What we saw in the spring Budget was a Conservative Government without a proper plan to grow the economy, without an industrial strategy to match the ambition of our talented Welsh workforce and without the appetite for investment in a greener Wales. Those will only be achieved with a UK Labour Government working with a Welsh Labour Government and a Secretary of State for Wales who stands up for Welsh interests.
Ruth Jones
I am grateful to the Minister for that intervention and for clarifying.
Ruth Jones
As my hon. Friend the Member for Newport East says, the Minister does not have to wait; she can get on with it now.
The smoke and mirrors in the Budget were quite clear. The Welsh people are paying more and getting less. All I would say in conclusion is: bring on a general election and let us show what a difference we can make.
Question put and agreed to.
Resolved,
That this House has considered the impact of the Spring Budget 2024 on the Welsh economy.
Oral Answers to Questions
Jessica Morden Excerpts(11 months, 2 weeks ago)
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Jessica Morden (Newport East) (Lab)
Thank you, Mr Speaker. This
“Budget will do nothing to deliver a better future for retailers and their customers.”
Those are the words of the British Retail Consortium, whose members face 45,000 incidents of theft and 1,300 incidents of violence and abuse every day. To help keep our Welsh high streets safe, we Labour Members want to fund an extra 13,000 police officers and police community support officers, and extra measures to deal with offenders. Why are the Government failing to tackle the epidemic of shoplifting and its victims, and to take it seriously?
David T. C. Davies
The hon. Lady is right to raise this important issue for retailers, but I remind her that the UK Government have provided for an extra 20,000 police officers across the whole United Kingdom. We have repeatedly brought forward legislation to increase prison sentences and punishments for offenders, but that legislation has often been voted against by members of her political party.
Draft Tertiary Education and Research (Wales) Act 2022 (Consequential Amendments) Order 2024
Jessica Morden Excerpts(11 months, 2 weeks ago)
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Jessica Morden (Newport East) (Lab)
It is a pleasure to serve under your chairmanship, Mr Stringer. I will not detain the Committee long, especially after the high excitement of Welsh questions earlier. This straightforward statutory instrument, laid as a consequence, as the Secretary of State said, of the passage of the Tertiary Education and Research (Wales) Act 2022 in the Senedd, will replace references in reserved UK legislation to the Higher Education Funding Council for Wales with references to the new Commission for Tertiary Education and Research. It will also make technical amendments in relation to provisions being repealed as a consequence of the Act.
The Act formed part of the delivery of the Welsh Labour manifesto commitment on tertiary education. Although this is of interest to no one other than myself, my father spent his career in tertiary education in Gwent, in Pontypool College. The Act renews the 30-year-old system that predates devolution, under which tertiary education is currently organised and funded. When the commission becomes operational on 1 August, it will, for the first time, take a coherent and system-wide view of tertiary education, bringing under one roof the funding, oversight, quality and regulation of higher and further education, local authority maintained schools, sixth forms, apprenticeships, and adult and community learning, as well as other responsibilities for research and innovation.
In introducing these changes, the Welsh Government are implementing the main recommendations of the independent Hazelkorn review, which noted the confusion and complexity of the sector in Wales and the lack of system-wide strategic view and collaboration, as well as the incoherent learner pathways. I am pleased to confirm that the architect of many of the marketised reforms to tertiary education in England, the former Minister for Universities, Jo Johnson, similarly backed a
“joined-up system of regulation and funding for all post-16 education”
in England, deriding what he called a
“bewildering array of regulatory and funding bodies”.—[Official Report, House of Lords, 15 June 2021; Vol. 812, c. 1813.]
After the Secretary of State’s attempted tour de force at Welsh questions—some little problems with Wrexham there—I am sure he will acknowledge that Welsh Labour is leading the way in this legislation.
Labour Governments invest in young people’s futures. Combined with the Welsh Government’s young person’s guarantee of education, training or work for all 16 to 24-year-olds, the new system will create the conditions for a highly skilled society with equality of opportunity and a civic mission at its heart. Its strategic duties will also include contributing to a sustainable and innovative economy, which is crucial for a UK Labour Government to deliver their plan to make Wales a green energy superpower, investing in the industries and jobs of the future.
This statutory instrument makes only a few minor and technical legislative amendments, so Labour has no reason to divide the Committee. However, I would ask the Minister to check with his officials whether the Department has notified the Welsh Government that the order has been laid. It is my understanding that that did not happen on this occasion, and it would be good to know that the issue will be taken forward and that people will check that the Welsh Government are notified.
Oral Answers to Questions
Jessica Morden Excerpts(1 year, 1 month ago)
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Jessica Morden (Newport East) (Lab)
Some 8,000 homeowners in Wales face the Tory mortgage bombshell this month, with households projected to pay an extra £240 per month as their fixed-rate deals come to an end. Despite the Conservative party’s opposition, the Welsh Government have put in place measures to prevent repossessions, and a UK Labour Government would require banks to protect homeowners. What is the Secretary of State doing to help homeowners facing massive bills caused by the Conservative party’s economic mismanagement?
David T. C. Davies
The UK Government have put in place a number of measures to support any mortgage holders facing difficulties at the moment, but the most important measure has been to bring down inflation. Inflation actually peaked at a higher rate in Europe than in the United Kingdom. Inflation is now down at 4%—much less than half of what it was previously—which will have a beneficial impact on mortgage interest rates over the longer term. I ask the hon. Lady whether, in all fairness, she thinks that her party’s plans to borrow £28 billion a year, which is going to increase inflation and have a very bad impact on mortgage interest rates, will be good or bad for homeowners?
Oral Answers to Questions
Jessica Morden Excerpts(1 year, 4 months ago)
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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.
Oral Answers to Questions
Jessica Morden Excerpts(1 year, 7 months ago)
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David T. C. Davies
I am afraid to say that the barrier is the Welsh Labour Government, who have decided that they will, as a matter of policy, end all new road-building projects in Wales, and, on top of that, bring in speed limits and road user charging. That is bad for jobs, bad for commuters and bad for the economy of Wales.
Jessica Morden (Newport East) (Lab)
The Government have woefully underinvested in Welsh rail. The Burns commission and the union connectivity review all point to what the Government should do: upgrade the south Wales main line and build new stations, such as in Magor. When will the Government invest?
David T. C. Davies
The hon. Lady makes an important point. There is a project, which is going through the business case process at the moment, to improve the freight lines on the south Wales line to enable passenger services to run on it. I believe that there will be announcements about that shortly, when the new rail network enhancements pipeline programme comes out.