Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(7 months, 1 week ago)
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Jo Stevens (Cardiff Central) (Lab)
If you will indulge me, Mr Speaker, I would like to acknowledge the 25th anniversary this week of Welsh devolution—delivered by a Labour Government. It has helped to nurture a confident, modern and outward-looking Wales, and Labour Members are proud of it.
Not a single one of the hon. Members who have raised questions on this issue lives in Wales, and the speed limit is not blanket, as the Secretary of State well knows. It is a bit like the Conservative councillor in Sunderland who set up anti-20 mph Facebook groups while campaigning for the limit in his own area. Meanwhile, a mother whose 11-year-old son was hit by a car near his school in Flintshire said that the 20 mph speed limit likely saved his life. Does the Secretary of State agree that her intervention represents an important endorsement of the Welsh Labour Government’s policy to protect lives, especially children’s lives?
David T. C. Davies
I, too, acknowledge the 25th anniversary of devolution. We were promised that it would deliver better schools, hospitals and public standards. What we actually have are the longest waiting lists and the worst educational standards in the United Kingdom, and a First Minister who is willing to take a £200,000 donation from a twice-convicted criminal. That is the record of 25 years of Labour-run Government in Wales.
I said straightaway that I am in favour of 20 mph limits outside schools, hospitals and other places where there are vulnerable pedestrians. I do not like the blanket ban that has been imposed as part of the anti-motorist agenda of the Welsh Labour Government.
Jo Stevens
It is rich of Government Members to chunter about donations. How much of Mr Frank Hester’s millions is bankrolling the Conservatives’ general election campaign? This is a man who said that a black woman MP in this House “should be shot”.
On roads, does the Secretary of State agree with his own association deputy chairman, writing in ConservativeHome this week, that politics in Wales is a “cul-de-sac” for the Tory party? The Welsh public do not like divisive politics, and they do not like Wales being constantly talked down by the Tories. Is that why they have not won a domestic election in Wales for over a century?
David T. C. Davies
I remind the hon. Lady that we just got more votes than the Labour party in my constituency of Monmouth in the police and crime commissioner elections. What people in Wales want is public services, waiting lists and education standards that match what is being delivered by this Conservative Government in England, and standards in public life that reflect what we expect from Members of Parliament in the United Kingdom. That is not what we are getting under the Welsh Labour Government.
Port Talbot Steelworks
Debate between Jo Stevens and David T C Davies(7 months, 3 weeks ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Jo Stevens (Cardiff Central) (Lab)
(Urgent Question): To ask the Secretary of State for Wales if he will make a statement on Tata ending the statutory consultation on redundancies at Port Talbot steelworks.
The Secretary of State for Wales (David T. C. Davies)
On 25 April Tata announced its strategic direction to proceed with its Port Talbot transformation, following the launch of the formal national consultation with the unions on 6 February. Technically, the consultation has not concluded at national or local level. The statutory consultation remains under way, and I understand that the company intends to move to local consultation with staff who may be affected.
This is a deeply concerning time for the Tata workforce and the wider community. I hold regular conversations and meetings with the unions and management, and will continue to do so as we develop interventions to build a brighter future for Port Talbot. On 15 September we announced an unprecedented £500 million Government grant as part of the £1.25 billion investment by Tata Steel to build a new electric arc furnace. Tata Steel employs more than 8,000 people, including at Port Talbot. All those jobs— along with many thousands more in the supply chain—would be under threat were it not for the agreement that we struck. The transformation will be difficult but the funding has saved 5,000 jobs in the company. It is not the case that we have paid money to put people out of work—we have paid a lot of money to save 5,000 jobs. We are also looking to modernise production and ensure that steelmaking in south Wales can continue for generations to come.
Going beyond that, to support those affected by Tata’s decision we have put £100 million towards the creation of the transition board, which I chair, and which includes representatives of the UK and Welsh Governments, local authorities and industry. The funding includes £80 million from the UK Government and £20 million from Tata—nothing as yet from the Welsh Government, but we hope that there will be some. It will be used to achieve the transition board’s priorities, the first of which is to support those affected employees to find new, well-paid jobs. The board’s priorities also include supporting businesses in the supply chain and the longer-term regeneration of the region.
In its most recent meeting last week the transition board endorsed a local economic action plan, which will act as a road map for how best to use the funding to support those affected. While the ongoing consultation is a matter between the trade unions and the company, we will continue discussions with all parties. We hope a resolution is found that avoids industrial action. The Government will continue to work closely with industry to secure a sustainable and competitive future for the Welsh steel sector.
I am confident of a good future for Port Talbot and the region, with the UK Government progressing the bid by Associated British Ports to the next stage for up to £160 million of funding to support our nascent floating offshore wind industry, and our progress towards establishing the Celtic freeport, backed by £26 million of UK Government funding.
Jo Stevens
Last Thursday’s news was a gut punch for workers in Port Talbot, with economic consequences that could reverberate across south Wales for decades. Last month, I met workers at the plant. The sense of the threat to nearly 3,000 people’s livelihoods was all-consuming. The wider supply chain in Llanwern, Shotton and Trostre is vulnerable, too. We again urge Tata not to make any irreversible decisions before a general election.
My hon. Friends the Members for Aberavon (Stephen Kinnock), for Newport East (Jessica Morden), for Newport West (Ruth Jones) and for Llanelli (Dame Nia Griffith) have been proud vocal advocates for their constituents. In contrast, the Government have forked out £500 million of taxpayers’ cash for the loss of 3,000 jobs. That is their deal and they own it.
In addition, the loss of sovereign steelmaking is a fundamental threat to our UK economy and security. It will constrain our ability to build the floating offshore wind we need to lower energy bills, deliver energy security and create the jobs of the future.
We are now around a month away from blast furnace No. 5 potentially closing, so what assessment have the Government made of the impact of the closure on job losses at the plant and in the supply chain across Wales? With the talks ongoing between unions and Tata this week, does the Secretary of State, like me, want to see an agreement from Tata that compulsory redundancies will be avoided? What steps will he take to encourage such an agreement? He has said that no one will be left behind if they lose their jobs. Will he publish the local economic plan that the transition board has agreed as the basis for its investment decisions?
With Labour’s national wealth fund, the future of UK steel will be fuelled by the skills, talent and ambition of Welsh steelworkers, but until the country is given the chance to have its say at a general election, I want workers across Wales to know that Labour Members have their backs.
David T. C. Davies
Let me take the hon. Lady’s points one by one. First, the £500 million investment will save 3,000 jobs. We are not paying money to throw people out of work; we do not want to see anyone thrown out of work. Tata has made a decision to close blast furnaces based on the losses it is making. When it came to us, we said, “What can we do to keep people in work?” This was the plan it came up with.
Secondly, the plan will have no impact on sovereign steelmaking. The hon. Lady, if she talks to Tata, will understand—[Interruption.] She is chuntering, but all the iron ore that goes into the blast furnaces comes from abroad, all the coal that is turned into coke comes in from abroad, and all the limestone comes in from abroad. It therefore has no impact whatever on our sovereign steelmaking ability. In fact, we have 8 million tonnes of scrap steel in this country, much of which has been exported abroad. We are going to use that scrap steel and put it in the electric arc furnace, which will increase our sovereign ability.
The hon. Lady says that the plan will have an impact on our ability to create floating offshore wind. Last time, she said it would have an impact on our ability to create battleships. She needs to understand that battleships are made using steel plate and that floating offshore wind turbines are also made using steel plate. Steel plate is not made by Tata at Port Talbot. Tata at Port Talbot produces coil, which is thin and not strong enough to make either battleships or floating offshore wind turbines.
The hon. Lady asked about the number of people affected. We have been very clear about that from the start. [Interruption.] I am trying to answer the hon. Lady’s questions. She asked the questions; I listed them and I am answering them. She asked about the number of jobs affected. We have said all along that we expect it to be around 2,800, but it is for Tata to confirm that once it has gone through the statutory consultation procedure.
The hon. Lady asked whether we would encourage Tata to come to an agreement so that there are no compulsory redundancies. Of course, we would. We do not want anyone to be made redundant against their wishes. We did not want this process to happen in the first place, but as I said to her several times, Tata came to the UK Government with a threat to pull out, which would have cost 8,000 jobs and the entire supply chain.
The hon. Lady asked if the local area action plan can be published. It is not fully finalised yet—it is a road map—but she will surely be aware that the current First Minister was sitting on the board as the economic development Minister. The Labour economic development Minister in the Senedd is on the board. The local Member of Parliament is on the board, as is the local Senedd Member, the chief executive of the local authority, and the representatives of three trade unions, so it is hardly a secret document. It is not as if the transition board is meeting in conditions of great secrecy.
If the hon. Lady has any further questions, I am more than happy to answer them.
Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(9 months, 1 week ago)
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Jo Stevens (Cardiff Central) (Lab)
The impact of the Conservatives’ cost of living crisis on people in north Wales has been exacerbated by their dither and delay on new nuclear at Wylfa. The previous project, which Ministers abandoned in 2019, could have been 50% completed by now, and would have created up to 8,500 jobs. Some 900 permanent jobs would also be well on the way, adding a total of almost £400 million a year to the local economy in wages. What does the Secretary of State say to people across north Wales who are still looking for good jobs because of his Government’s failures?
David T. C. Davies
The last Labour Government certainly did not build any nuclear power stations. The UK Conservative Government are getting on with Hinkley, and we are sorting out small modular reactors. There is a process going on, in which six companies with an SMR model will be reduced to two, and one will be selected by the end of the year. We have provided £160 million to buy the Wylfa site. That will ensure that there is a nuclear industry in Wales—a result of the policies of this Conservative Government.
Jo Stevens
It is a stark admission of the Government’s failure that the Secretary of State boasts, after 14 years in government and doing absolutely nothing for five years, of acquiring a site at Wylfa. His Government’s inaction has cost people money, and still does. In nine years, all but one of our current reactors will be offline, which will weaken our energy mix, risk higher prices, and again leave us vulnerable to energy tyrants such as Putin. Will the Secretary of State make an explicit commitment today to backing new nuclear in places such as Wylfa, as Labour has done, in order to unlock jobs, investment and cheaper bills—issues that his party has ignored for so long? Or is this another never-ending Tory fiasco, like High Speed 2?
David T. C. Davies
The last Labour Government were not in the least bit supportive of nuclear. What this Conservative Government have done for energy is increase to 50% the amount of electricity that comes from renewables. We are the first advanced economy to halve our carbon dioxide emissions, and we are pushing forward with floating offshore wind and SMRs. All we get for business from the Welsh Labour Government is a block on new roads being built, 20 mph speed limits, and legislation to charge people for driving to work.
Welsh Affairs
Debate between Jo Stevens and David T C Davies(9 months, 3 weeks ago)
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The Secretary of State for Wales (David T. C. Davies)
Diolch yn fawr iawn, Mr Dirprwy Lefarydd, am y cyfle i ateb y ddadl heddiw. Thank you for allowing me to say a few things in this St David’s day debate, Mr Deputy Speaker. I thank my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), the Chair of the Welsh Affairs Committee, for bringing forward the debate.
Let me turn straightaway to the comments made by the hon. Member for Cardiff Central (Jo Stevens). First, on what has actually been delivered by the Welsh Labour Government in Wales, with due respect, she left a few things out. She did not want to mention that the Welsh Labour Government have delivered the longest waiting lists in the whole of the United Kingdom. She did not want to mention that the Welsh Labour Government are now having to build air filters to blow away the diesel fumes from the ambulances that wait for nine, 10, 11 or 12 hours at a time outside Welsh hospitals. She did not want to mention that the Welsh Labour Government, after more than 20 years of devolution, have delivered the lowest educational standards in the whole of the United Kingdom—that is according to the OECD. She did not want to mention that the 20 mph limit is causing extra congestion in Wales. She did not want to mention that the Welsh Labour Government are damaging the economy by bringing in a ban on any new roads being built.
Jo Stevens
Can I correct the right hon. Gentleman? He keeps repeating this ban on all road building, which he knows is not correct. If hon. Members on the Government Benches want to complain about 20 mph zones, they might want to look at their own Department for Transport, which promotes them, and the Tory-run councils that have introduced them. The right hon. Gentleman wanted 20 mph in his own constituency. The organisers of the anti-20 mph social media groups in Wales are run by a Conservative councillor from Sunderland who—wait for it—has supported the measure in his own patch. You could not make it up!
David T. C. Davies
Like all Members of Parliament, I support a 20 mph limit outside schools, hospitals or other places where there are vulnerable people. What I have never done—and neither have the Conservative Opposition—is to support a blanket 20 mph speed limit. What I would never support is a suggestion of bringing back Severn bridge tolls, which was put forward by a Labour council in Monmouthshire—it is in its own leaflet. What I would never do is bring forward a tax on the tourism industry, which will destroy more jobs in one of the most important industries in Wales.
What I certainly would not do is to tell farmers that they have to put aside 20% of their land for planting trees and other wildlife schemes dreamed up by people who do not know what the countryside is all about. What I would not do is spend over £100 million on just about the only effective job creation scheme the Senedd has ever come up with—to create dozens of extra Senedd Members. The hon. Lady and various others, including the hon. Member for Gordon (Richard Thomson), mentioned the independent commission, which frankly was not that independent. The commission itself expressed grave reservations about the closed list voting system brought forward by the Welsh Labour Government without any proper discussion with the public upon whom it will be visited.
The hon. Lady wanted to talk about steel, so I suggest that she stop giving false hope to steelworkers in Port Talbot, or suggesting that this has come about as a result of a Government decision. The hon. Lady made a few comments that were simply factually incorrect; I might need to educate her a little about how steel is produced. First, there is no sovereign capability to make steel in a blast furnace, because every single bit of iron ore is bought in from abroad, as is all the coke, not least because the hon. Lady’s party wanted to shut down all coalmines because of concerns about the climate emergency. There is no possibility of virgin steelmaking because all the ingredients come from abroad. Secondly, as far as I am aware, none of that steel is being used by the Royal Navy, but steel is being produced for the Royal Navy in the United Kingdom—from Sheffield Forgemasters, and it comes out of an electric arc furnace.
Labour says that it has a plan for steelworkers in Port Talbot. I actually visited Mumbai about two weeks ago and spoke to the global head of Tata, and the head of Tata Steel. They made it very clear that no such plan was put to them by the shadow Front Bench team. There is no plan that they are looking at. The reason that they are shutting down those two blast furnaces is that they are losing over £1 million a day. The only plan that they were going to consider was insolvency, and pulling out of steelmaking in the United Kingdom all together.
The plan that the Government came up with was not a plan of giving half a billion pounds to fire 3,000 people; the Government were presented with a situation where Tata came in with insolvency practitioners and said, “We are pulling out of the United Kingdom.” Had it done so, it would have cost 8,000 jobs and 12,000 more in the supply chain. The Conservative Government, which I am proud to be serving, came up with a scheme whereby we put half a billion pounds towards building an arc furnace—a scheme that will save 5,000 jobs and a supply chain. It is absolutely wrong and misleading to suggest that we have given a steel company half a billion pounds to fire 3,000 people, when we have given them half a billion pounds to save 5,000 jobs, and to ensure that steel continues to be made in Wales.
The danger is that the hon. Lady’s words are being heard by Tata in India. Many people there will be thinking to themselves, “Do we actually want to continue investing in the United Kingdom if we can’t be certain that any deal we have will continue if there is a different Government?” The hon. Lady’s words are also going to be seen by workers in Port Talbot, who may be thinking to themselves that there is some secret plan that could save their jobs. There isn’t. If the hon. Lady does a little bit of research, she will find out very quickly that there is no plan C. There was a plan A, which would have shut the steelworks and cost every job, or a plan B, which saves 5,000 jobs.
The hon. Lady did not mention anything about the £100 million transition fund. The Government are not going to turn their backs on workers in Port Talbot. The Government have £100 million set aside to make sure that every single person who loses their job has access to the training they need to get further employment. The Government have saved jobs and are standing by the people of Port Talbot. I really hope she will find out a little bit more about it before trying to comment further.
I am also very proud of the work that the Government have been doing to level up across the rest of Wales. Under this Conservative Government, we have been responsible for four growth deals, three rounds of levelling-up funding, two investment zones, two freeports—including one in Port Talbot, which will encourage more industries to come in—the electric arc furnace, and the £1 billion project to electrify the north Wales coast main line. The Government have been doing an enormous amount to put money into Wales.
Following Brexit, the Government promised that farmers would not lose out by one single penny as a result of our leaving the European Union. We calculated what agriculture was getting during the last control period—it was about £337 million a year—and we made sure that that money continued to be delivered. It is very disappointing, therefore, that the Welsh Government have decided to take that money and plough it into a scheme that will reduce the amount of land available for growing agriculture, increase food miles, and throw 5,000 people out of work. Yes—there will be 5,000 job losses on the Welsh Government’s own figures as a result of the agricultural scheme that the hon. Lady’s party’s Government are planning to bring in.
I will just mention one or two other points in the last minute or so I have left. The hon. Member for Ceredigion (Ben Lake) mentioned gigabit connections. I agree with him that we need certainty on where they will be and that there are challenges in rural areas, but I would point out that in 2019 about 11% of properties had a gigabit connection and that has now increased to 69%. The work is going on at pace.
The hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) made a very good point, as did the hon. Member for Swansea East (Carolyn Harris), about the cost of living. I am not decrying anything the hon. Lady has done, because she does do a lot of good work, but I again point out that this Government have ensured that pensions and benefits have all gone up in line with inflation. The living wage has gone up in line with inflation. There have been extra payments to pensioners and to those on benefits, and also to those in houses with a disability. That is not to say that that solves all problems. The hon. Member for Merthyr Tydfil and Rhymney also rightly drew attention to the fact that some companies are perhaps not behaving as they should on petrol prices. I agree with him. The Government are following up the recommendations of the Competition and Markets Authority to bring forward a scheme to provide extra transparency.
I think I have only about six seconds left, unfortunately; hopefully, a little more time will be allocated to us next time. I apologise to anyone I have not mentioned, although I am certainly not going to forget my hon. Friend the Member for Ynys Môn (Virginia Crosbie), who continues to champion nuclear. I will continue to work with Members of Parliament and many others to ensure that the floating offshore wind industry goes ahead. I also wish Members Dydd gŵyl Dewi hapus I chi gyd—a happy St David’s Day to you all. Diolch yn fawr iawn.
Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(1 year, 2 months ago)
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Jo Stevens (Cardiff Central) (Lab)
It is not just antisocial behaviour that is wreaking havoc across Wales. Shoplifting in Wales is also soaring, and in the year to March 2023 it was up by 31%. Why will the Secretary of State’s Government not adopt Labour’s plan to scrap the minimum £200-worth of stolen goods rule, which was introduced by his Government in 2014 and allows gangs of shoplifters to escape punishment and puts shop workers at risk?
David T. C. Davies
I agree with the hon. Lady that shoplifting is a serious offence, and repeat shoplifters and those who go out in organised gangs must be dealt with by the full force of the law. That is why I welcome the fact that this Government have brought in longer prison sentences for people carrying out the most serious offences. I do not understand why the hon. Lady will not join the Government in supporting longer prison sentences. Perhaps she should talk to her colleagues in the Welsh Government who seem to be against building any extra prison places.
Jo Stevens
The Secretary of State knows that the prison estate across Wales is not just full, but that overcrowding is significantly above safe limits. With his Government having to commandeer police cells, with judges being told to jail fewer people, and with criminals—including those convicted of assault—being released early on the instruction of his Justice Secretary, how can the Welsh public have any faith that they will be protected?
David T. C. Davies
The prison population has increased as a direct result of policies that the Government have implemented, to ensure that those committing the most serious offences spend more time in prison. That is something that the hon. Lady should be supportive of. She needs to talk to her colleagues in the Welsh Government, who have stated clearly in writing that they are completely against building any prison places. This Government are building emergency prison places and filling up prisons, because people who commit serious offences deserve to go to prison. The Labour party in the Welsh Government is saying clearly that it is totally opposed to building any extra prisons anywhere.
Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(1 year, 5 months ago)
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Jo Stevens (Cardiff Central) (Lab)
On the 75th anniversary of our NHS, created by Welsh founder and Labour Minister Nye Bevan, may I thank, on behalf of Labour Members, all our NHS staff in Wales, past and present, for their dedication and public service?
Last week, the Department for Business and Trade published its report on foreign direct investment in Wales. Will the Secretary of State join me in congratulating the Welsh Labour Government’s Economy Minister, Vaughan Gething, on his success in delivering economic growth through attracting an additional 3,000 jobs to Wales in the past year?
David T. C. Davies
I think the hon. Lady will be aware that both the Minister for Economy in Wales and the Department for Business and Trade work closely with embassies across the world to ensure that investors know about the enormous opportunities that exist in Wales. I hope she will agree with me that that is testament to the fact that, while we may have political differences, on the issue of foreign direct investment, the UK Conservative Government and the Welsh Labour Government both enjoy working constructively together.
Jo Stevens
I am pleased to hear the Secretary of State’s response. I am sure we can both agree that we want strong economic growth across Wales and the rest of the UK. The last Labour Government gave the go-ahead for new nuclear sites in 2009. Nearly a decade on, none is up and running, and it is now two years since Hitachi pulled out of the Wylfa project. Labour is ready to deliver new nuclear to ensure energy resilience, security and lower bills—[Interruption.] What have the Government been doing? When are they going to stop talking and start acting?
David T. C. Davies
I am delighted that the hon. Lady has set out that the Labour party now supports nuclear power. It was not something that was evident to us when Labour was in opposition a few years ago. Labour had an opportunity over the 13 years it was in government to build nuclear power stations, but it is good that it has belatedly decided that it will support new nuclear power in Wales. I can assure her that I am happy to work with the Welsh Labour Government and anyone else who is interested in making sure that Great British Nuclear can take forward sites such as Wylfa, which is an excellent site for new nuclear.
Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(1 year, 6 months ago)
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Jo Stevens (Cardiff Central) (Lab)
Since the Secretary of State’s Government’s mini-budget, 43,000 Welsh households have paid an extra £20.3 million in mortgage payments. That is a £20 million Tory mortgage premium in just seven months. His Government’s economic recklessness continues to cause misery for people across Wales, so will he take the opportunity to apologise to them?
David T. C. Davies
The economic policies being pursued by this Government are to bring inflation down, as the news today demonstrates. I very much hope the hon. Lady will want to celebrate the fact that inflation is now falling. This United Kingdom Government are committed to seeing inflation halved. The policies of her party would push inflation through the roof and push us into another financial catastrophe and crisis of the sort we saw the last time it left office.
Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(1 year, 8 months ago)
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David T. C. Davies
Of course, the hon. Lady is correct that we have had financial problems, as a result of having to spend £400 billion during the covid pandemic and the inflation that has been caused by the illegal invasion of Ukraine, and that is why the Government have continued to support the most vulnerable in society. However, the fact of the matter is that the Welsh Labour Government’s response to all of this seems to be to squander taxpayers’ money, with £100 million going to create extra Members of the Senedd, £150 million wasted on plans for a relief road that was never going to be built and now more millions of pounds to be spent on universal basic income and legal fees for asylum seekers.
Jo Stevens
The Secretary of State mentioned inflation earlier, but of course falling inflation does not mean that prices are falling—just that the rate of the price rises is slowing. If Cabinet Ministers cannot get a grip on basics like that, it is no wonder the economy is in such a mess. Is it not the reality that his Government continue to fail households right across Wales, while protecting and rewarding the super-wealthy by refusing to abolish non-dom status and giving a huge pension bung to the top 1%?
David T. C. Davies
First, of course, the so-called top pension bung was for doctors, which is actually something that Labour Members had called for themselves. If the hon. Lady is seriously worried about food prices, perhaps she could explain why the Welsh Labour Government want to scrap meal deals and stop people enjoying a drink and a packet of crisps with their food. The fact of the matter is that we will prioritise our help towards the most vulnerable, while the Welsh Labour Government continue to squander it on people who do not need it.
Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(1 year, 11 months ago)
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Jo Stevens (Cardiff Central) (Lab)
This month has seen dreadful news for steel businesses and steelworkers in Wales. Steel is an energy-intensive industry, and its operating costs during the cost of living crisis have rocketed. Thirteen years of Conservative Governments have seen decline, offshored jobs and damaged communities.
Steel is integral to a modern economy. Labour will put Welsh and UK steel at the heart of our wider industrial policy, building wind turbines, railways and investing in carbon capture and storage and in hydrogen infrastructure. Other than creating a cost of living crisis, what is the Government’s plan for our steel industry and for steelworkers’ jobs?
David T. C. Davies
First of all, the news from Liberty in Newport was very disappointing and is very concerning for many people. That has not come about as a result of actions by the UK Government, as I think the hon. Lady will recognise; there are other issues pertaining there.
The UK Government are completely committed to the steel industry. We demonstrated that with a £30 million loan to Celsa during the covid crisis, and we have demonstrated it with the various schemes that have been brought forward to support industries with high energy use. We are developing a scheme that will enable those in the industry, such as Tata, to decarbonise. We are also in discussions with Tata about how we can support it further over the coming years.
Jo Stevens
Steelworkers need a Government on their side. The industry needs a partner that can provide stability, not sticking plasters. Floating offshore wind in the Celtic sea is a real opportunity for our steel industry and the wider supply chain in Wales. It would also help to mitigate the impact of the cost of living crisis for many Welsh businesses in the supply chain. If the Government do not provide the necessary stability, we will see platforms being built in France and Spain and floated over to the Welsh coast, which would be absolutely unconscionable. What is the Secretary of State doing to ensure that the Crown Estate leases will use local supply chains in Wales?
David T. C. Davies
I have met the Crown Estate on a number of occasions to discuss the next bidding round for the sites out in the Celtic sea. Obviously we hope to develop the industry. I agree with the brunt of the hon. Lady’s question, which is about the importance of developing a floating offshore wind industry off the coast of Wales. I have been trying to ensure that the supply chain is as local as possible. That is why we have supported the conversations between developers and the Crown Estate; it is also why I have personally visited Pembrokeshire to ensure that the growth deal there supports the new infrastructure at the dock that can allow those projects to be floated out to sea. We are actually doing a great deal to support the floating offshore wind industry in Wales.
Oral Answers to Questions
Debate between Jo Stevens and David T C Davies(2 years ago)
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David T. C. Davies
I am delighted to take full collective responsibility for all the excellent decisions that the last three Prime Ministers have made. May I remind the hon. Lady that we are committing ourselves to spending £55 billion to support the least well-off households across the United Kingdom? Yes, we have had to raise taxes because we have had to pay for a covid crisis that has cost £400 billion; we have had to deal with the effect of the disgraceful invasion of Ukraine, which has pushed up energy bills and pushed up inflation across the United Kingdom; and we have raised taxes to support the most vulnerable. I am yet to hear what she would do to raise money to help people.
Jo Stevens
The Secretary of State cannot hide from his record. He mentioned tax rises. I will make it easy for him: which of the 24 Tory tax rises in this Parliament did he not support?
David T. C. Davies
I am quite happy to support a tax rise to make sure that the living wage goes up. I will support tax rises to make sure that pensions and benefits can go up in line with inflation. What I still have not heard from the hon. Lady, or indeed from the many Labour Members whom I hear on the radio talking about taxation and borrowing, is where exactly they would find the extra money that they want to use to increase spending on public services.
Support for the Welsh Economy and Funding for the Devolved Institutions
Debate between Jo Stevens and David T C Davies(2 years, 5 months ago)
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Jo Stevens (Cardiff Central) (Lab)
I thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), Chair of the Welsh Affairs Committee, for securing this debate and for his excellent chairship of that Committee, which does valuable work for all of us in Wales. I also thank all Members who have contributed to the debate. We have had a number of wide-ranging contributions. This debate must be set in the context of the current economic climate. After 12 years of Conservative Government, with help from the Liberal Democrats for five of those years, we have a high-tax, low-growth economy, with the country suffering the biggest drop in living standards since records began and the highest tax burden since world war two.
The reality is that the Welsh Government’s budget over the spending review period we are discussing is, as has been mentioned, likely to be worth at least £600 million less than it was when it was first announced last autumn, because of that rocketing inflation. As my hon. Friend the Member for Newport East (Jessica Morden) said, the outlook for inflation, economic growth and any additional funding looks very bleak indeed. The spending power of the Welsh Government’s budget is therefore likely to deteriorate further. That is why the Welsh Labour Government have called on the UK Government to update their settlement to reflect the significant impact that inflation is having on important budgets being spent in Wales.
If we look at the UK Government’s record, leaving aside for the moment the squalid nature of the lawbreaking, the sleaze and the U-turns happening day after day, what stands out on spending is that they make many promises and deliver on very few of them. They have made promises to Wales and they have broken them.
Let us start with the explicit manifesto promise in 2019 that Wales would not be a penny worse off when it came to post EU membership replacement funding. We have heard a lot about that today. The Secretary of State and his colleagues have repeated that promise over and over again, but the facts are that Wales is set to lose more than £1 billion of vital funding.
My hon. Friend the Member for Aberavon (Stephen Kinnock), in a tour de force of a speech, went into detail about where the shortfall is placed; it is through the shared prosperity fund, the community renewal fund and the cut to Welsh rural communities. All of that adds up to more than £1 billion less than the Government promised. That is a broken promise to the people of Wales.
Jo Stevens
No, I think the hon. Gentleman has had plenty of interventions today. I will carry on because we are quite short of time.
As for the levelling-up fund, only six Welsh councils saw any benefit from the first round of the fund and just one of them was a Labour council. I will just leave that there, but I wonder why that was. The second round of applications to that fund has been delayed because the Government have not been able to get their application portal ready in time for the original deadline. They cannot even get the basics right on this.
The Government are using the UK Internal Market Act, as we have heard, to take decisions in devolved areas, excluding the Welsh Government from a transparent process of joint decision making for the shared prosperity fund. They are imposing a methodology on Wales for how those limited funds are decided on, which results in money being distributed away from the poorest areas in Wales. The Conservatives refused to countenance the Welsh Government’s alternative funding formula, which would have distributed money more fairly across Wales according to economic need. Let us be clear: this is a far cry from the rhetoric of levelling up and protecting the Union. It is this Prime Minister and this Government who are the greatest threat to the Union.
Turning now to infrastructure funding for Wales, I know the Secretary of State will not like this, but I am again going to raise the classification of HS2 as an England and Wales project by his Government. A £4.6 billion Barnett consequential is not going to Wales. I know he is tired of hearing about it, but it is not just me saying it, or even just Labour. The right hon. Member for Preseli Pembrokeshire, Chair of the Welsh Affairs Committee, agrees. His entire Select Committee agrees in its report. The leader of the Welsh Conservatives agrees—or is the Secretary of State the leader of the Welsh Conservatives? I do not think anybody is really sure.
The Treasury’s rules for evaluating infrastructure projects do not work in the interests of Wales, but have prioritised infrastructure projects in the south-east of England. Costs for HS2 and rail enhancement are allocated to Wales, but none of the benefits apply. In fact, HS2 explicitly disadvantages south Wales. The analysis of the Secretary of State’s own Treasury colleagues confirms that HS2 will result in an economic disadvantage to Wales of about £150 million every year. Because rail infrastructure is not devolved beyond the core valley lines, Wales, unlike Scotland and Northern Ireland, gets a double whammy: no £4.6 billion consequential and an annual economic hit. We have heard that there will be no mainline electrification in north Wales. Mainline electrification from Cardiff to Swansea was promised and then abandoned by the Conservatives. About 2 million tonnes of steel will be used across HS2, but Transport Ministers have confirmed that there is no target for the use of UK steel or Welsh steel in HS2 construction. This is such a missed opportunity for Wales, for Welsh steel jobs and for the people of our steel communities. The Government have got this all wrong and Wales is, literally, paying the price.
This does not just affect transport infrastructure. There are knock-on effects across climate change targets—the need for greater use of public transport and more active travel, with the consequential effects on health and wellbeing—and, critically, on narrowing the economic inequality that Wales suffers compared with other parts of the United Kingdom. As my hon. Friend the Member for Cynon Valley (Beth Winter) said, the truth is that this Government are holding Wales back. They are making decisions that take money from the people who can least afford it. The Conservatives voted to cut the £20 universal credit uplift, voted against free school meals, voted to increase tax during the cost of living crisis, and voted against a windfall tax, until they had to do a screeching U-turn forced by Labour. What is the Prime Minister’s response to the cost of living crisis? We hear today that he has invited the First Ministers of Wales and Scotland to a summit in the autumn—so more delay and more inaction while he focuses entirely on saving his own skin.
Contrast that with what the Welsh Labour Government have been doing, taking decisions that support households in greatest need to mitigate the worst impact of those Conservative Government decisions. The Welsh Government have invested more than double what they have received in consequential funding from the UK Government to support households with the cost of living crisis, and that support has been targeted at those who need it most. About 75% of households are expected to be supported in some way, and nearly twice as much will go to households in the bottom half of the income distribution compared with those in the top half. My hon. Friends the Members for Aberavon, for Newport East and for Cynon Valley spoke about all the measures that the Welsh Labour Government have been taking to help families and businesses in Wales. I would add these to the list: during the pandemic, businesses in Wales were able to access the most generous support package anywhere in the United Kingdom; and through Jobs Growth Wales Plus, over 19,000 young people have been helped into good-quality, meaningful employment across Wales. This is what a Labour Government in Wales deliver, solving the problems the Conservative Government have created.
A UK Labour Government will build a stronger, more secure economy, working hand-in-hand with the Welsh Labour Government for the benefit of everyone in Wales. We will get the cost of living crisis under control and make the whole of Britain more resilient, more secure and more prosperous, laying the foundations for a thriving, dynamic economy.
St David’s Day
Debate between Jo Stevens and David T C Davies(5 years, 9 months ago)
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David T. C. Davies
I was not here until 2005 so I will take the hon. Gentleman’s word for that. I do not know what the reason for that was, but it was very clear at the time that the Welsh Conservative party accepted the Welsh Assembly, and rightly so. I would suggest judging us by our deeds, not by words; judge us by the many extra powers we have granted to the Welsh Assembly over the years. One of those could be what we are looking at at the moment: devolving air passenger duty. I will not make too many comments on that prior to finishing our report, but clearly if there is an economic case to devolve APD to the Welsh Government, we should not stand in the way of that. I certainly do not see any constitutional reason why that should not happen, since we have already devolved income tax, land tax and all sorts of other taxes. There is no constitutional reason not to do it; if the economic case can be made, and it is fairly strong, we should not be afraid to devolve APD as well.
Jo Stevens
Is the hon. Gentleman aware that during the passage of the most recent Wales Act the Secretary of State refused to devolve APD to the National Assembly?
David T. C. Davies
I am sure the Secretary of State will, as he always has done, take great interest in the report we are producing; we have not finished it yet so I can only say that I have heard strong economic arguments in one direction. There may be strong economic arguments not to devolve APD; we will have to wait for the findings of the report. I pay great tribute to the Secretary of State for Wales, who has always read carefully through the recommendations of our reports and taken them very seriously.