(10 years, 4 months ago)
Commons ChamberI fear that the right hon. Gentleman has overlooked the arrangements that we put in place with the Welsh Government in October 2012, which ensure that if there is any danger of convergence, then the issue will be resolved. I believe that we should all be ambitious for Wales, and we should indeed be looking for a lower rate of income tax in Wales to give Wales the competitive advantage that it needs.
Is it the policy of the coalition parties fully to devolve income tax powers to Scotland, and if so, why does the Wales Bill still include a tax-sharing arrangement in relation to income tax powers, with the lockstep measure for safe measure? Why are the Tories treating Wales like a second-class nation?
We have made it clear that the Scottish powers would kick in only after the next general election and they will, of course, have to be the subject of a manifesto commitment. However, Wales is not Scotland. We believe that the arrangements that we are putting in place are right for Wales. I would have hoped that the hon. Gentleman would support them.
Q2. Tomorrow, I will be in Carmarthen with striking teachers, nurses and firefighters—the backbone of local communities. Are the Prime Minister’s reported plans to ban public sector workers from withdrawing their labour not just a cynical attempt to silence opposition to his policies?
I am very clear that I do not think these strikes are right, I condemn them and I think that people should turn up for work. It is a pity we do not have so much clarity on that issue from the Labour party or, indeed, from the hon. Gentleman’s party. Let me give one example. The National Union of Teachers is proposing a strike based on a ballot it had almost two years ago, on a very small turnout of its members. Really, is it right to continue with this situation when the education of so many children is going to be so badly disrupted?
(10 years, 6 months ago)
Commons ChamberMy hon. Friend raises an important issue that has been the subject of discussion for some time. These routes fall partly under the purview of the Welsh Government and partly under that of the Department for Transport. I wrote to my right hon. Friend the Secretary of State for Transport about this very issue only this morning.
The Mayor of London is now making the case for a £30 billion underground orbital road. Crossrail will cost £16 billion and HS2 will cost £50 billion at least. Considering the historically low levels of transport infrastructure investment in Wales, far below our population share, when will the Secretary of State start making the case for a fair share for Wales via the appropriate funding formula mechanism?
Q1. If he will list his official engagements for Wednesday 14 May.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House I shall have further such meetings later today.
The UK now has 104 billionaires—top of the global league. London alone has 72 billionaires —the top city in the world. Meanwhile, west Wales and the valleys is also top—in the top five poorest regions in western Europe. Is the Prime Minister at all concerned, or is he, like Labour’s Lord Mandelson,
“intensely relaxed about people getting filthy rich”?
I can say to the hon. Gentleman that what is worth while is the massive fall in unemployment and the increase in employment that we have seen across our country. In Wales, unemployment has fallen by 5,000 in the last quarter and fallen by 25,000 since the last election. That means that in Wales there are 59,000 more people in work. In terms of making sure that the richest in our country pay their taxes, actually we see the richest 1% paying a greater percentage of income tax than ever they did under Labour. We are seeing a broad-based recovery, and I want to make sure that everyone in our country can benefit. That is why we are cutting people’s taxes and allowing people to keep the first £10,000 of what they earn before they pay any income tax.
(10 years, 8 months ago)
Commons ChamberI agree entirely. Anybody with a reasonable mind would agree that those figures are entirely unacceptable. Again, I suggest to Opposition Members from Wales that they should have a discreet word with their colleagues in the Assembly to ensure that Welsh patients get the standard of health care that they deserve and need.
7. What discussions he has had with Cabinet Office Ministers and the Electoral Commission on administrative management of the forthcoming elections in Wales to the European Parliament.
Wales Office Ministers have discussed the administration of the forthcoming elections to the European Parliament with both the Electoral Commissioner for Wales, and the cities and constitution Minister, my right hon. Friend the Member for Tunbridge Wells (Greg Clark).
As the Secretary of State knows, the chief executive of Carmarthenshire county council is not at his desk because of a criminal investigation following a damning Wales Audit Office report into unlawful payments. However, he retains responsibility for the forthcoming European elections as local returning officer. Indeed, if memory serves me correctly, he was a deputy for the whole of Wales at the last European elections. Will the Secretary of State discuss urgently with the Cabinet Office the need for statutory protocol for removing electoral duties from public officials who are suspended from their everyday roles?
As the hon. Gentleman says, an investigation is currently being conducted by the police. The Government’s priority is, of course, to ensure the smooth running of the European elections. The Cabinet Office is responsible for that and is keeping a close eye on the situation.
(10 years, 9 months ago)
Commons ChamberI welcome this debate and I am honoured to have put my name to the motion before the House. I am also pleased to be a member of the all-party parliamentary group on European Union-United States trade and investment, and I pay tribute to the hon. Member for Aberconwy (Guto Bebb) and the right hon. Member for Wentworth and Dearne (John Healey) for guiding our work. I apologise to the right hon. Gentleman for missing his opening remarks. I was at a hospital appointment and I thought the debate would start slightly later in the day.
I must be honest and admit that when I was approached to join the all-party group, I had little knowledge of the transatlantic trade and investment partnership, but I quickly gained an understanding of the potential economic significance of the deal if it goes ahead. Wales is an exporting nation and outperforms the other component parts of the UK. We have a trade in goods balance of £4.9 billion based on 2012 figures; by contrast, England has a deficit of £122 billion. Despite recent setbacks in Welsh exporting figures, this potential trade deal is hugely significant.
It is right and proper that the House of Commons debates this issue, such is the potential far-reaching impact of the trade deal for the economy and public services. If I was a Member of the Welsh Parliament, knowing what I know now I would also be demanding a debate and Welsh Government attention. I read today in the Western Mail that the First Minister is visiting the United States, and I would like to know whether he has raised the TTIP with the authorities there and the Westminster Government.
The UK Government have published a swish pamphlet promoting the positive potential of the TTIP, and we will hear many speeches in favour of it today. To add balance therefore, I will concentrate on some of the issues that I believe policy makers at Welsh and UK level, and the EU negotiating team, should focus on during negotiations.
Enthusiasm in Wales for the European Union values of the single market—one of the largest trading blocs in the world—is high, as it is for the fact that Welsh citizens are allowed to travel unimpeded and without visas within its territories, with the rights and protections that affords us in workers’ rights and human rights. I have my concerns about the privatisation obsession of the EU, but I believe the Welsh economy benefits more from being a constituent part of the EU than from being outside it. That is why my party argues for a full and equal voice for my country as a member state.
Coming from that position, it is difficult to argue wholeheartedly against building on the EU single market by developing the TTIP. The EU single market essentially offers free movement of goods, services, capital and labour, and the TTIP would extend the same principles for goods, services and capital. However, putting a Marxist cap on for a minute, the TTIP would neglect labour—[Interruption.] I had to get it in. As I will explain later, that creates a potential imbalance that worries me and on which I need reassurance from those on the Government Front Benches.
It is a further irony that the Government are trumpeting an EU-US trade deal while edging closer towards withdrawal from the EU in all their thoughts and deeds. I suspect that some Tories secretly harbour the desire to withdraw from the EU while remaining in some future US free trade area. As President Obama recently alluded to, and as common sense would dictate, why would US companies—or for that matter any other major trading country—invest here if it did not afford access to the European Union?
Although this is a good news story in that it can create about £10 billion for the UK economy, does the hon. Gentleman agree it is important that we help and encourage small businesses to take advantage of this, and of every help given to them that the Government can afford?
I am grateful for that intervention and I will go on to agree with some of the points the hon. Gentleman has just raised.
We in Plaid Cymru support the principle of affording exporters in Wales the opportunity to further their trade with the USA. It is the largest destination for Welsh exports outside the EU and involves 23.7% of all trade, which naturally leads to the question of whether there is actually a problem to solve with the proposed trade deal. Certainly, we would support any deal that was of mutual benefit and in the Welsh national interest, and we would want guarantees that SMEs are genuinely afforded entry into the market with the chance to create more jobs and grow the economy. For example, exports from local farmers in Carmarthenshire could benefit from a favourable deal. Indeed, the Farmers Union of Wales is very encouraged by the TTIP.
However, Plaid Cymru would be opposed to any deal that ended up favouring big corporations and allowed the further hollowing out of industrial sectors of the Welsh economy. We also have grave concerns about the proposed EU-US trade deal as it currently stands with regard to investor state dispute settlement—I will talk a little more about that later in my remarks.
Much needs to be done to increase transparency in these negotiations. I am an avid follower of the Twitter account launched by the EU negotiating team, but much greater effort needs to be made by the EU and member states to explain and inform people about the TTIP. Economists at the Munich-based Ifo Institute found that a trade deal would lead to a 13.4% increase in US income per head in real terms over the long term, but an average rise of only 5% among the EU 27, now 28—we in Wales welcome our friends in Croatia to the EU table.
The figures assume that the US and EU agree on a deal that would lower transatlantic tariffs, and harmonise and ease regulations in many sectors that are often referred to as non-tariff barriers to trade. Trust in any trading partner is essential. That is why last year I read with great concern the revelations that the National Security Agency surveillance programmes had been spying on Governments in Europe, with the help of intelligence services in the UK. The spying revelations had the potential to derail the proposed deal, given the understandable outrage in some European capitals. I am amazed that there has not been more public outrage here, given the level of intrusion into private lives. I imagine that had any other foreign Government pursued such blanket intrusion, the UK Government would have armed the nukes. Their deafening silence about the NSA revelations indicates a worrying collusion aimed at sidestepping UK civil liberty protections. That is why it is incredibly important that, at every stage of the negotiations on any deal, there is full transparency and accountability, and that all groups are allowed input. This is a matter for all EU nations and regions, not just the leaders of a few select large and economically powerful states within it.
EU Trade Ministers agreed on a mandate for the European Commission to conduct negotiations with the USA on the TTIP. A lack of transparency in future negotiations is a major cause for concern, yet EU Governments insist on keeping the mandate confidential. The trumped-up excuse—that it is necessary for negotiations —does not stand up to analysis, as it will be available for the US to access. The mandate on the terms of any deal should be freely debated in the European Parliament and in European Parliaments, and not arrogantly assumed by the European Commission and state Governments.
The French Government have apparently secured the exclusion of culture and audiovisual services from the mandate. There are still many risks that deserve the same attention. There are serious concerns that negotiations could lead to investor claims that threaten core EU standards and rules on the protection of public services— such as the NHS, which was raised earlier—intellectual property, food safety, GMO crops, and health and environmental standards.
The hon. Gentleman is making a very powerful case. Does he agree that it is not enough simply to plead for special exemptions to one or two sectors, such as the NHS? Corporations should not be given new rights to sue the Government for legislating in the public interest, whatever the sector. That bit of the TTIP should simply be taken out.
I fully concur with the views of my hon. Friend. I will go on to talk on that specific issue in the remaining parts of my speech.
Concerns over data protection have been completely overshadowed by the US Prism spying programme. The US is much better organised in economic and industrial policy and will have no qualms about defending its narrow interests, making the need for transparency in the negotiations imperative. Most worrying about the TTIP as it stands are the proposals for investor-state dispute settlement. This would weigh law in favour of big business, allowing them to sue Governments that attempt to defend their citizens. Secretive panels of corporate lawyers could circumvent legal protections and override the will of Parliaments.
What proposals does the hon. Gentleman have to protect British investments overseas if he is so passionately against the current structure he mentions?
I am extremely interested in that point. I was going on to say that this is a deal between two advanced trading blocs with advanced legal systems. The hon. Gentleman’s argument would stand up only if he believes that the United States is a banana republic, and I am sure that that is not what he genuinely feels.
Clauses written into trade treaties are often used when dealing with developing countries with weak legal infrastructure, so that companies can protect their investments. However, they should not be necessary in developed economies with some of the best and most highly functioning legal systems anywhere in the world. The hearings are held in secret and would undoubtedly undermine the ability of societies, citizens and communities to contest decisions that affect them. The Democracy Centre has called it
“a privatised justice system for global corporations.”
Plaid Cymru completely opposes any proposals for investor-state dispute settlements within the TTIP, and believes that they are an affront to democracy and should be removed immediately.
Concerns over free trade agreements and the potential for an unequal relationship are not unfounded. The North American Free Trade Agreement between the USA, Canada and Mexico has undoubtedly been of greater benefit to the US and the larger corporations located within it, while US jobs are being outsourced to Mexico for lower wages. On the whole, this has been to the detriment of Mexican home-grown industry, as US corporations have moved in. It has also been detrimental to manufacturing and industrial blue collar jobs in the US, which have been outsourced, and to the small businesses in local communities that such jobs supported.
When out in the States in the summer, during a meeting between the all-party group on European Union-United States trade and investment and a member of President Obama’s inner circle, we were informed that future US economic strategy will be based on three pillars. One is to make the most of the fracking boom in the States, which means that it is now a net exporter of energy. The idea is to offer energy subsidies for heavy industry and manufacturing companies to reverse the flight to the Asia Pacific rim. This will mean that US companies will be at a huge advantage in being more competitive in any TTIP deal.
The hon. Gentleman makes the point that the Mexico-US agreement was principally of benefit to the US and multinationals within the US. My understanding, however, is that since that agreement was signed the Mexican economy has grown by an average of 8% or 9%—far more than it had been growing previously. How do those factors stack up?
I think the hon. Gentleman is trying to distract me from the point I was trying to make. I would go as far as to say that the TTIP advantage available to the US could lead to the stripping of my country’s manufacturing base.
To mitigate that potential threat, Wales must have control over its natural resources and energy production infrastructure, so that we can ensure that our manufacturing base is competitive and is not put at a disadvantage. We are a net exporter of electricity, which is why my party has called for the establishment of a not-for-profit Welsh energy company to build up an asset portfolio to protect domestic consumers and our economic base.
You, Madam Speaker, will appreciate that I, the son of a trade union shop steward, am concerned that the TTIP will not include the movement of labour, hence my Marxist critique of the current proposals. As Gary Younge wrote in The Guardian in 2001:
“Our governments are trapped in a morally warped and ideologically unsustainable paradigm. They applaud the free movement of capital; they abhor the free movement of labour.”
(10 years, 9 months ago)
Commons ChamberOn the contrary, as my hon. Friend the Member for Hexham (Guy Opperman) has just pointed out, the Financial Services (Banking Reform) Act has put a great deal more power into the hands of customers. It has also done a great deal to repair the damage that was done under the last Labour Administration.
Many of my constituents continue to be affected by the interest rate swap scandal, when banks were deliberately targeting businesses, and wrecking lives and real economic activity. My constituents Mr and Mrs Bartels, for instance, were deliberately bankrupted by Barclays. What can the Secretary of State do to support the excellent work of the hon. Member for Aberconwy (Guto Bebb) and the all-party parliamentary group on interest rate swap mis-selling to secure justice for Welsh businesses that have been ripped off by exploitative banks?
(10 years, 9 months ago)
Commons ChamberI rise to speak in support of the amendment that appears in my name and the names of the hon. Members for Brighton, Pavilion (Caroline Lucas), for Islington North (Jeremy Corbyn) and for Hayes and Harlington (John McDonnell). I was delighted that the Minister referred to it as an amendment of the far left in this Parliament. If that is the case, I am probably nicely in the political centre in my home community of Carmarthenshire. The hon. Member for Brighton, Pavilion spoke passionately and convincingly about the many pernicious and insidious aspects of the Bill that reflect the Government’s true intentions.
I am glad that the Joint Committee that carried out the pre-legislative scrutiny of the Bill criticised the enabling clause heavily. It would have allowed Ministers to scrap regulations by order, as they saw fit. That clause has been removed by the Government, or at least substantially amended. As originally conceived, it would have set a worrying precedent. It was reminiscent of the Henry VIII clause that was originally proposed in the Public Bodies Bill in 2011, which would have allowed the Government to abolish public bodies. At least the Government had the good sense to drop that proposal in the end.
Why do the Government need to do away with these regulations? The origins of the Bill are rooted in the perceived need to do away with red tape that was supposedly holding back economic growth in the dark days of 2011, 2012 and early 2013. However, what was holding back economic growth was not the bogeyman of small but important pieces of regulation and protection, but a dramatic slashing of capital investment, which had the effect of stagnating and even shrinking the economy at a time when the Government should have been stimulating the economy fiscally, rather than simply monetarily. That was the reason for the prolonged nature of the great recession, the massive drop in living standards, and the dashed hopes and dreams of millions. Unemployment rose and companies folded because of a lack of business and a lack of funds as the banks, propped up by the Government, failed to lend.
For many parts of the British state, the economy is not recovering. The Government point to UK GDP figures, but conveniently ignore the fact that growth is concentrated in London and the south-east of England. In my part of the world in west Wales, the latest gross value added statistics showed that the economy had shrunk by 4%. Although Wales as a whole is slowly beginning to turn the corner, we have been massively handicapped over the past five years by reductions in wages in real terms and decreased economic activity, and we have not benefited from the significant capital injection that London has seen in projects such as the Olympics and Crossrail. To suggest that red tape was holding back the Welsh economy is to tilt at windmills.
Before the Government get too carried away and announce the end of boom and bust, as the last Labour Government did, or the end of the struggle endured by ordinary people and the end of the squeeze on living standards, they should take note of the upcoming green budget 2014 by the Institute for Fiscal Studies. It warns that
“there is little reason to expect a strong recovery in living standards over the next few years…it seems highly unlikely that living standards will recover their pre-crisis levels by 2015-16.”
Desperately needing to appear to be doing something, the Government announced a deeply serious investigation to discover what was holding the economy back, pledging to cut any red tape. Finally, that allowed Ministers and the Government to hold it up and shout, “Eureka! Here is the lost formula for economic growth and business investment.” I do not need to remind Members that business investment and lending across the British state is at pathetic levels, even though the Government now rejoice in forecasts for economic growth. Business investment in the UK as a share of GDP is among the worst in the world.
The hon. Member for Brighton, Pavilion spoke about several aspects of the Bill but focused on the scrapping of environmental regulations that apply in England. Thankfully, much of the Bill will not apply in Wales, as the National Assembly for Wales is sovereign in those and other areas. However, some of the more pernicious aspects of the Bill certainly do apply to Wales. The Bill is so far-ranging and a real hotch-potch of ideas—some bad, some made and some just plain ugly—but I will focus on just some aspects, particularly those relating to health and safety, employment tribunals, civil liberties, housing and the scrapping of energy and climate change obligations.
The removal of employment tribunals’ power to make wider recommendations is insidious. It follows in the same vein as earlier plans by the Government, such as the proposal to make it easier to fire employees, as recommended by the Beecroft report, and the Chancellor’s plan to allow companies to offer shares in return for workers giving up their employment rights. It also follows the halving of the consultation period before large-scale redundancies can take place, the introduction of fees for workers bringing employment tribunal claims, and proposals for a lower cap on unfair dismissal awards.
The removal of an employment tribunal’s power to make wider recommendations typifies the Bill’s ideological nature. The Government are seeking to chip away further at workers’ rights, and the Bill reflects that attitude and those prejudices. Many Government Members are still chasing shadows, believing that they are fighting the battles of their ideological heroes of the ’70s and ’80s, but the trade unions are not the potent forces of yesteryear, because successive Governments, both Labour and Tory, have emasculated them.
I welcomed the announcement made on the Floor of the House this afternoon on clause 47, which threatened to introduce rules for secret hearings should the police wish to seize journalists’ notebooks, photographs or digital files. Applications, or “production orders”, must currently be made in open court. That change would have represented a worrying and sinister development in the near-continuous eroding of civil liberties under the Labour Government and the coalition.
Clause 28 represents yet another nail in the coffin of the Government’s claim to be the greenest ever. Whatever happened to “Vote blue, go green”? The removal of the requirement for the Secretary of State to set a target for microgeneration follows the fiasco over the sudden reduction in feed-in tariffs. I need not remind anyone of the Prime Minister’s recent reported comment that he wanted—I hope that you will forgive me, Mr Deputy Speaker—to cut all the green C-R-A-P.
The changes to health and safety in the Bill have already been heavily criticised by the TUC, which noted that the plans to exempt the self-employed fail to take into account the fact that the fatality rate among that group is far higher. It is important that all workers are protected. Any attempt to chip away at health and safety legislation, even if just for a particular group, represents a threat to the safety of all workers.
Although plans to speed up the right to buy do not apply in Wales, I believe that the move is symptomatic of the Government’s return to the Tory and Labour boom-and-bust model of growth based on rising house prices and personal debt—the British disease, as I call it. It does nothing to address the need for housing where there is high demand and will not bring about an increase in social housing provision. How does something like that affect Wales, Members might ask, as the clause does not apply there? When the boom-and-bust model hits bust and there is another housing crash in England, that will affect the whole economy of the British state.
I look forward to questioning the Government Ministers responsible for the later stages of the Bill’s progress on the consequences and impacts of some of its other clauses and provisions.
(10 years, 11 months ago)
Commons ChamberI know of my hon. Friend’s long-standing interest in not only beer, but pubs and how pub landlords are treated, particularly by the pub companies. Let me look very carefully at what he said. I am a great believer in a healthy pub industry. Pubs are often the heart of the village and the heart of our communities, and I will look carefully at the beer report that he mentions.
Q6. During his autumn statement, the Chancellor said that “people should expect to spend…a third of their adult lives in retirement.”—[Official Report, 5 December 2013; Vol. 571, c. 1106.]Given that life expectancy in some communities in my country is only 75, what does the Prime Minister think would be a fair retirement age in a Welsh context?
The point my right hon. Friend the Chancellor was making is that this should be assessed independently but it is right to set a guide—an expectation—rather than just having Ministers announce from time to time what retirement ages should be. If the point the hon. Gentleman is making is that we need to tackle health inequalities better in our country and that we need ring-fenced budgets for public health, as this Government have brought in, then I would agree with him.
(11 years ago)
Commons ChamberIn Monday’s statement, the Secretary of State closely tied in borrowing powers with the income tax sharing arrangement between the UK and the Welsh Government. Will he confirm that the proposed sunset clause on the referendum has been dropped?
(11 years, 1 month ago)
Commons ChamberWales urgently needs job creation levers to boost our economy, as the Council for Economic Renewal said today. Last week, in an interview with Adrian Masters of ITV Cymru Wales, the Prime Minister refused to commit to a response from the UK Government to part 1 of the Silk commission before next year’s Scottish referendum. Why are the Secretary of State and the Prime Minister holding back the Welsh economy?
(11 years, 2 months ago)
Commons ChamberI thank my hon. Friend for what he says. I think that he is absolutely right that these conventions, and ensuring that everyone lives up to them, are directly in the British interest. If any good could come of these ghastly events, it is to wake the world up again to the importance of rules against the use of chemical weapons and to encourage more countries to take them seriously.
There was an interesting article in The New York Times over the weekend outlining how the Assad regime had amassed its chemical weapon arsenal. Central to the strategy has been the purchase of precursor chemicals from various states around the world. During the G20 summit, did the Prime Minister make the case for global action to limit the export of those chemicals to despotic regimes, and will he be investigating why his Government awarded licences to the Assad regime before and after the outbreak of the civil war in Syria?
The hon. Gentleman makes an important point about precursor chemicals. In this country we have a very strict licensing regime for the export of those sorts of chemicals, and on this occasion it worked effectively. When the arms ban on Syria was brought in, we were able to revoke those licences, so from what I have seen to date our system worked well.