Welsh Affairs Debate

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Department: Wales Office
Monday 19th March 2018

(6 years, 1 month ago)

Commons Chamber
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Christina Rees Portrait Christina Rees
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The Labour party advocates a customs union.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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Will the hon. Lady give way on that point, because this is a very interesting debate?

Christina Rees Portrait Christina Rees
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I am being very kind today.

Jonathan Edwards Portrait Jonathan Edwards
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The hon. Lady is being very kind. As I understand it, the Labour party’s policy is that it supports being in a customs union, not the customs union. She will know that as a member of the customs union we benefit from trade deals with over 60 countries across the world, accounting for £150 billion-worth of trade at UK level—there are no figures for Wales, of course. If we are in a customs union, we will lose those trade deals. Surely, it would be far better for the Welsh economy if we stayed in the customs union, rather than trying to create some kind of a customs union, which is more or less a trumped up trade deal?

Christina Rees Portrait Christina Rees
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Technically, when we leave, we leave the customs union, so we advocate a customs union and a very close relationship to the single market.

Jonathan Edwards Portrait Jonathan Edwards
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Will the hon. Lady give way again?

Jonathan Edwards Portrait Jonathan Edwards
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But that’s just spin, isn’t it?

Christina Rees Portrait Christina Rees
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No, it’s not.

There are, at present, no signs that the Tory Government understand this agenda, let alone how to respond to it. As I have said, serious matters confront us and the clock is ticking.

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David Jones Portrait Mr David Jones (Clwyd West) (Con)
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May I say how pleased I am that the traditional St David’s day debate is taking place again this year, albeit on the wrong side of St Patrick’s day? Like the hon. Member for Neath (Christina Rees), I was very disappointed when the beast from the east paid its visit. Of course, we had a further visit this weekend from its little cousin, and I was a bit concerned that we would not be able to have the debate again today, but here we are. It is important that hon. Members on both sides of the House have the opportunity to debate Welsh affairs.

I would like to start by saying how much I, in north Wales, appreciate, contrary to what the hon. Lady said, the Government’s investment in Wales. I was astounded to hear her complaining about a lack of investment. We have had city deals in both Cardiff and Swansea, which have been welcomed on both sides of the House and by the Welsh Government. As the right hon. Member for Delyn (David Hanson) pointed out, we expect a north Wales growth deal shortly, for which I personally thank George Osborne. Like the right hon. Gentleman, I am impatient to see exactly what the shape of that growth deal will be. Councils across north Wales, the Mersey Dee Alliance and businesses are all working very hard to shape it, and I very much hope that later this year we will see some flesh on the bone.

Jonathan Edwards Portrait Jonathan Edwards
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I do not think that the right hon. Gentleman can get away with trying to portray the Swansea Bay city deal as some sort of UK Government giveaway to the Welsh economy, because 90% of the money comes from the Welsh public and private sectors.

David Jones Portrait Mr Jones
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Like most city deals and growth deals, this is a question of partnership working. Nevertheless, we are seeing investment in Swansea and in Cardiff, so I felt it was slightly churlish of the hon. Member for Neath to complain.

I shall concentrate on north Wales, as that is the part of Wales of most interest to my constituents. North Wales is an important part of what is, in reality, a cross-border north-west England and north Wales regional economy. I think that hon. Members on both sides of the House realise that and, as a consequence, we have seen the formation of the all-party group on Mersey Dee North Wales, which is very ably chaired by the hon. Member for Wrexham (Ian C. Lucas). In no small part due to the work of the all-party group, policies have developed that I believe will be of immense benefit to not only north Wales itself, but the north-west of England.

I sometimes think that hon. Members from other parts of Wales may not fully realise the extent to which the economies of north Wales and the north-west of England are closely integrated. We have major employers on both sides of the border. We have heard already about Airbus, JCB and Toyota on the Welsh side, but there are also major employers on the other side of the border, including Vauxhall. Every day people from both sides of the border commute across it to their places of work. A great deal more could be achieved if we sought to achieve a synergy between north-west England and north Wales. I think that, perhaps a little belatedly, the Welsh Government are starting to recognise that, too. Recently I paid a visit to Cardiff with the Public Administration and Constitutional Affairs Committee. We took evidence from the First Minister, Carwyn Jones. Hearteningly, he recognised that there could be a role for further devolved institutions in north Wales, which could work with institutions on the English side of the border to further the economies of both regions.

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Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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I join colleagues who have paid tribute to the work of Lord Crickhowell and Lord Richard. Lord Richard was from Ammanford, my home town, and although I am not that familiar with the work of Lord Crickhowell, I certainly pay tribute to the work of Ivor Richard and his incredible contribution to developing the devolution settlement in our country of Wales.

The Secretary of State’s remarks at the start of the debate largely concentrated on the need for a new UK internal market following the British Government’s decision to set the red line of leaving the EU single market and customs union. I fear that he has missed the crux of the argument. His argument is that the UK Government must maintain full control over the creation of that internal market. As I said during the general debate on Europe on Thursday, I recognise, as somebody who supports Welsh independence, that there would have to be a UK internal market for the British state, if the British state decides to leave the EU single market.

The question is: how will it be constructed? Will it be constructed just by Westminster, or do we accept that we have a multipolar settlement in the UK with four national Governments? It is my firm view that the new UK internal market, if we are to leave the single market—I think that that is completely the wrong decision, by the way—must be constructed and regulated equally by the four Governments. It cannot be a matter for the Westminster Government alone. [Interruption.] The hon. Member for Brecon and Radnorshire (Chris Davies) completely opposed devolution. This is a power grab. Indeed, we heard in that debate people talking about the British state being a puppet Government or a vassal country if it did not leave the single market, but that is exactly the fate that now faces Wales as a result of the British Government’s policy.

The shadow Secretary of State concentrated on the tidal lagoon. I agreed fully with her comments and those of many other hon. Members. It seems that the British Government are stalling because of the cost implications of the contracts for difference financing model. I have some sympathy with that, but my counter-argument would be: considering how cheap it is for the British Government to borrow on the bond markets—because of the ultra-loose monetary policy pursued since 2008—why do they not invest directly? It would be far cheaper for us as taxpayers to do that than for the cost to be loaded on to consumers via their energy prices. I therefore have little sympathy with the British Government’s argument that the scheme is unaffordable. The right hon. Member for Clwyd West (Mr Jones) pursued this issue with vigour. He made an excellent speech about the potential of this technology, and I commend him for the manner in which he made that contribution.

The hon. Member for Glasgow North (Patrick Grady), a fellow member of Plaid Cymru, contrasted the SNP Scottish Government’s progressive agenda with that of the Labour Welsh Government. He concentrated on the bedroom tax and the public sector pay cap. The Labour party in Wales fought last June’s general election on the basis that it would scrap the pay cap in Wales, but we have seen little progress. He could also have mentioned tuition fees, because whereas the Scottish Government scrapped them, the Labour party, following a general election in Wales at which it stood on a manifesto pledge to scrap tuition fees, actually raised them as their first act following the election.

The hon. Member for Monmouth (David T. C. Davies) talked about numerous people in England accessing health services in Wales and, as usual, gave a passionate performance. I did not agree with a single word he said, but his contributions are always good quality. The hon. Member for Cardiff Central (Jo Stevens) made a serious speech in which she highlighted the industrial dispute over pensions that is impacting on lecturers—Plaid Cymru Members stand in solidarity with them—and the importance of the university sector to the city of Cardiff and her constituency in particular. She also mentioned the Erasmus project, which is very important to higher education in Wales and brings in a lot of funding. I bumped into an official dealing with this in Brussels. Countries and regions outside the EU can qualify for and contribute to the Erasmus project. Quebec in Canada does, for example, because of the French-speaking element and the importance of its higher education institutions having a link with French universities. I understand that the Scottish Government are pursuing the matter with vigour, and unilaterally—regardless of what the British Government decide to do. They intend to reach an agreement with the European Union after Brexit to ensure that Erasmus can continue from a Scottish perspective. Unfortunately, we are way behind in Wales, and I think that the Welsh Government need to pursue the matter with vigour as well.

The hon. Member for Montgomeryshire (Glyn Davies) concentrated on cross-border issues. He highlighted the Pumlumon scheme, of which I was completely unaware. I commend him for his work on that, and I also commend my hon. Friend the Member for Ceredigion (Ben Lake). It sounds very exciting, and I think that it should be pursued on a cross-party basis, because it will be very beneficial for the communities of Ceredigion and Powys.

The hon. Member for Ynys Môn (Albert Owen) is no longer in the Chamber, but I congratulate him on securing the original debate. He talked about the importance of links between the Republic of Ireland and Wales. Much of the commentary on Brexit has been about avoiding a hard border on the island of Ireland, but equally important to Welsh Members is avoiding a hard border, and a trade border, in the middle of the Irish sea, as that would be hugely problematic for our Welsh ports. There is no doubt that if there are two different borders between the British state and the Republic of Ireland—a soft border on the island of Ireland and a hard border on the Irish sea—trade flows will bypass Welsh ports, as there will be a convenient trade route up through the north of Ireland and across to Scotland and England. That would be hugely detrimental to the economy of the west of our country. The hon. Gentleman also argued passionately that St David’s day should be a bank holiday for the people of Wales. Of course, Plaid Cymru Members totally agree.

The hon. Member for Newport East (Jessica Morden) made a very passionate speech about the problems facing the steel industry following the implementation of US tariffs, which worry me very much. We seem to be moving into the middle of a global trade war at the very time when we are leaving the protection of the EU customs union. Following the statement made by the Secretary of State for International Trade last week, I asked him what trade defence mechanisms the British state, outside the customs union, would employ against the might of the United States economy. Unsurprisingly he was unable to offer a single idea. These are the sort of problems that we will face if the British Government pursue their policy of leaving the customs union. Indeed, Mr Barnier has said that the UK will have to renegotiate 700 international agreements during the transition phase if we are to stay where we are at the moment.

The British Government believe that they will create great global trade deals with countries such as the United States during that period, and, on top of that, conclude the trade deal with the European Union. It is not going to happen; it is pure fantasy. In view of how far we have progressed with the Brexit process, we urgently need a dose of reality in the political class regarding what is facing us.

My hon. Friend the Member for Ceredigion highlighted the importance of placing the rural economy at the heart of economic planning. Indeed, he called for a complete rethink of economic policy implementation. My hon. Friend has been here for a very short while on the parliamentary timescale, but he has already made a vital contribution by attacking the major economic problem facing Wales: the brain drain of our young people, and its social and economic consequences.

The hon. Member for Torfaen (Nick Thomas-Symonds) spoke passionately about universal credit. I used to work for Citizens Advice, so I know that it is a fantastic organisation. The hon. Gentleman mentioned some pressing and important cases.

My hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts) paid tribute to the work of the voluntary sector, and talked about the prophecy of Dewi Sant: “Do the little things”, or “Gwnewch y pethau bychain”. She rightly highlighted the work of community groups in her constituency.

The hon. Member for Cardiff North (Anna McMorrin) made a powerful speech about the need to resist the Westminster power grab. I could not have put it better myself. I think I shall have to send the hon. Lady a Plaid Cymru membership card. She made some very brave comments about anti-Welsh bigotry, which I believe is the last acceptable form of racism. I am grateful to her for putting her points so powerfully.

The hon. Member for Aberavon (Stephen Kinnock) rightly highlighted the injustice of the cancelled rail electrification between Swansea and Cardiff. It now takes longer to travel between those cities on the new trains, because they are bigger, and it takes 90 minutes to travel down to London. Our priority must be investing in infrastructure in our own country. We should revisit the decision by the Silk commission that rail infrastructure should be devolved. Unfortunately, that proposal was taken out when the back-room deal between the two main Unionist parties was done during the St David’s day process, and that will cost Wales a lot of investment unless we put things right.

I will leave it there, Mr Speaker, because I think I have taken up my time. Perhaps in future years, we may be able to push for a full day of debate, rather than half a day.