Welsh Rural Economy

Jonathan Edwards Excerpts

Tuesday 22nd June 2021 Westminster Hall

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Diolch yn fawr iawn, Mrs Cummins. It is an absolute pleasure to speak in this debate and to serve under your chairmanship, I believe for the first time.

I congratulate the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) on bringing forward this important debate and setting out so well in her opening remarks the many challenges facing rural communities in Wales. Needless to say, I agreed with everything she said. It was a pleasure to listen to her opening remarks.

Levelling up has acted as a convenient smokescreen for the UK Government on these matters, but we have yet to see a credible strategy underpinning the slogan. In my first Parliament here, in 2010, there used to be “geographical rebalancing”. There was not much geographical rebalancing in the past 10 years, but now we have levelling up. What discussions is the Minister having with the Treasury about how issues facing rural communities will be factored into the metrics used to measure the success of levelling up? We know that work is going on, and we hope that there will be more than just words behind the strategy on this occasion.

One of the key measures must surely be improved connectivity through better transport and broadband infrastructure. On broadband, I echo the comments of the hon. Member for Ceredigion (Ben Lake). The pandemic has proved beyond any doubt that access to broadband is critical, both for economic prosperity and individual wellbeing.

The pandemic has also highlighted the importance of maintaining our physical fitness and provided an opportunity to enable more active travel. In Carmarthenshire, the county council is about to submit a shovel-ready levelling-up fund application for an exciting Tywi valley cycle pathway, linking the towns of Carmarthen and Llandeilo. It has my full support, and I ask the Minister to look into the submission and give his support to what we are trying to achieve in Carmarthenshire.

Moving towards more sustainable models of travel is critical if Wales is to meet our climate targets, yet currently 87% of all journeys in mid-Wales are undertaken by car. To reduce that figure, we must drastically improve our railways. It will come as no surprise to anyone who frequently travels by train in Wales that we have historically received only 1% of rail investment, despite having 11% of the track. I encourage the Minister to look at the submission by the renowned transport expert, Professor Stuart Cole, to the UK Government’s connectivity review. He makes the case for a £20 million investment in the beautiful Heart of Wales line, which connects Swansea and Shrewsbury, and links three of the main market towns in Carmarthenshire, all of which reside within my constituency: Ammanford, Llandeilo and Llandovery. Professor Cole outlines how that investment would improve and increase service provision on the line and bring substantial economic and social benefits.

Notwithstanding my points about decarbonising transport, I believe that there is still an important role to be played by investing in road transport. I cannot miss the opportunity to highlight the very damaging announcement today by the Welsh Government that they will not invest in the Llandeilo bypass—there is a moratorium on bypass developments. There was a cast-iron guarantee for the communities I serve in Carmarthenshire that it would be built by now. There has been obstacle after obstacle, and today’s news will be a hammer blow for the Tywi valley.

All too often, rural Wales finds itself at the back of the queue for investment in infrastructure. Our farmers are bearing the brunt of Wales being an afterthought in the UK Government’s trade policy. The lamb and beef tariff rate quotas in the proposed trade deal with Australia have confirmed the worst fears that many of us had about the trajectory of trade policy post Brexit. It sets a precedent, and not only for the agriculture sector. Trade deals with far bigger economies than Australia will undoubtedly be more problematic, not just for food but for other sectors such as steel and manufacturing.

Meanwhile, the consequences of Brexit are beginning to bite. Analysis by the Food and Drink Federation of Her Majesty’s Revenue and Customs data shows that British food and drink exports to the EU fell by £2 billion in the first three months of 2021, with sales of dairy products falling by a staggering 90%. It is time to give up on the spin that those are just teething troubles, and acknowledge that the latest figures show that wholescale dentistry is required in the Trade and Agriculture Commission. An urgent veterinary agreement on sanitary and phytosanitary rules would be one way to remove barriers for Welsh farming exports created by the current Brexit deal, as well as alleviating friction caused by the Northern Ireland protocol.

Reports indicate that at the G7, President Biden offered a trade deal—which I suspect did not include food products—with the US, even if the UK aligned with the EU on food standards. Surely that is too good to turn down, considering the current shambles. Has the Minister made any assessment of whether reports of reduced checks in the Australian trade deal would prevent such an agreement with the EU?

Before I bring my remarks to a close, I would like to touch on another issue that threatens not only to undermine the long-term sustainability of Welsh agriculture and the unique linguistic and cultural traditions maintained by farmers in our country, but completely to change the local landscape. There is growing evidence of Welsh farms being bought by large multinational companies from outside Wales for unregulated woodland planting in order to offset their carbon emissions. Furthermore, rich people from outside Wales are buying up productive Welsh farms and planting them, while coining Glastir support.

Once an agricultural holding is lost to woodland, it will not return. Anyone who recognises the challenges of the climate crisis will support a policy of increased woodland. However, the debate on the issue far too often fails to recognise the contribution that grassland systems play in providing an important carbon sink. I am delighted to see my colleague the hon. Member for Angus (Dave Doogan) here. In Scotland, they have managed to increase woodland planting without supplanting agriculture, working with their farmers. We need that approach in Wales.

This is a matter for the Welsh Government, which in my view should set a maximum limit based on the national woodland target for tree planting in each farm holding, and ensure that Glastir and woodland planting schemes are available only to actual, active farmers. I am interested to know whether the Minister has come across this issue in Sir Fynwy. I would like to use the debate to call on the Welsh Government to revise their planning technical advice notes, to ensure that woodland planting is done in a manner that preserves our agricultural heritage.

There is also a wider question. Carbon offsets may present a very attractive shortcut for companies to reduce their emissions, but we need to cut emissions in the first place. The UK Government are due to publish a net zero strategy before COP26. Will that address the question of corporations using carbon capture, rather than reducing their carbon emissions?

To tackle the many issues faced by rural communities, the Welsh Government must be empowered with the fiscal levers required to deliver an effective post-covid recovery strategy. That includes reforming the funding formula, greater tax freedoms and increasing the cap on borrowing. Only in that way can we deliver tangible benefits for those living in rural communities throughout Wales.

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[David T. C. Davies]

Looking into the future and the long term, of course that is the case. The level of sterling or the Australian dollar could vary or the markets in China may not be the same, but there is generally seen to be a drive towards greater wealth, not just in China but across the whole of the Asia-Pacific rim, which is driving an increase in the demand for beef and sheep meat. I cannot pretend to look into the future and guess what currency and stock prices might do—if I was any good at that, I probably would not be an MP, as I would be making millions in the City. Based on 560 tonnes coming in at the moment, I do not see that there is anything very much for anyone to worry about, even the Irish farmers, and especially not considering the very high-quality beef that we produce in Wales, and in Scotland, if I may say so to the hon. Member for Angus.

The danger of ad-libbing means that I have probably used half my speech on that issue, so I will now turn to tourism. It is another area that is of great interest and importance to us in Wales—I think it was mentioned by the right hon. Member for Dwyfor Meirionnydd. I was absolutely delighted when I was in north Wales to be able to sample the first-class tourism that north Wales has to offer. I did so by staying at the brand-spanking-new Hilton Garden Inn, the first Hilton in north Wales, and visiting Surf Snowdonia, which certainly was no hardship for me. I also looked at some of the other tourism projects that are taking place in north Wales, which are all coming about as a result of the growth deals that have been funded jointly by the UK Government and the Welsh Government. We have put £120 million into the north Wales growth deal. We will support the mid-Wales growth deal with £55 million across the region, and I hope tourism will play a part in that and in the other regions of Wales.

We are also very, very ambitious as to what the growth deals can do in helping to support our efforts to become net zero by 2050. The hon. Member for Angus mentioned floating offshore wind. I suspect I know which company he met with and I know it is very enthusiastic about getting floating offshore wind into Scotland and off the coast of Wales. I do not know what is going on in Scotland, but I can tell the hon. Gentleman that I personally signed off a cheque for some of the money for the Swansea Bay city deal, which will help build infrastructure at Pembroke Dock to enable floating offshore wind companies to trial their products there.

I believe I know which company it is, and I fully support its enthusiasm for dealing with BEIS. However, BEIS is already saying that it will ensure, when the new contract for difference auctions come forward, that offshore wind is part of that mix, so it may be reluctant to talk to specific companies. I can understand why that might be, because BEIS will not want to be seen to be lobbied by or to give preference to any single company, but it has made it very clear that floating offshore wind will be supported through a strike price. That should enable those industries to thrive, which is a very good thing.

Notwithstanding the enthusiasm of the hon. Member for Angus for Scotland, I would like to say that there is indeed huge potential in the coastal areas of Wales. We are absolutely blessed with marine energy potential and we are seeing a number of early-stage schemes looking into that. As well as Pembrokeshire, I should mention the Morlais project in north Wales, which is more about hydro energy than floating offshore energy. I believe that might be one of the first projects that comes forward in the North Wales growth deal—I very much hope so. It is one that I was certainly enthused by, and I know that my hon. Friend the Member for Ynys Môn has done a great deal to lobby me and BEIS Ministers to ensure that that project goes ahead

Finally, I shall turn to transport, which has also been mentioned by various Members present. I would never underestimate its importance to the rural economy. It is only fitting that the global centre of rail excellence will be on the site of the Nant Helen opencast mine in Onllwyn; that facility will support innovation in the UK rail industry, including the testing of cutting-edge green technology. That is a real vote of confidence in rural Wales, and one that the Secretary of State for Wales was absolutely instrumental in making a reality. I know how many meetings he personally held with various officials and other Ministers to make sure that that happened.

In addition the UK Government are developing numerous other rail schemes, such as the £2.7 million Cambrian line signalling upgrade, which is due to be delivered by May 2022. The upgrade will enable the introduction of new trains and allow interoperability with other digital signalling schemes. There are also the investments that have been made in new stations, such as Bow Street in Ceredigion; I think the hon. Member for Ceredigion and I were there at the virtual opening of that in February 2021.

There is the £17 million being spent on the Conwy Valley line between Llandudno Junction and Blaenau Ffestiniog to repair and restore it after multiple flood events in the past five years. We are also going through the outline business cases to develop the freight lines on the South Wales relief line, which will mean more trains going between Cardiff and Bristol and will have a beneficial impact on constituents of the hon. Member for Merthyr Tydfil and Rhymney, I am sure. In north Wales, we are beginning the process of the outline business case to improve the North Wales Coast line. So there is a great deal going on to improve transport in Wales.

I take slight issue with the mention by the hon. Member for Carmarthen East and Dinefwr of the much-quoted figure of 11% of the railways and 1% of the funding, because that was simply looking at enhancements. I believe that page 20 of the same report—I may be wrong about that, but it is certainly in there somewhere—makes it clear that, actually, if you look at maintenance operations, renewals and enhancements, the overall figure is closer to around 4%, so it is not quite the headline that the hon. Gentleman states.

[Jonathan Edwards]

The Minister may not accept my argument on that point, but has he read the statement of funding policy that accompanied the last comprehensive spending review? It indicated that the Barnett consequential share for Wales is plummeting as a result of the Department for Transport spending on HS2, and showed the inequity that Wales faces compared with Scotland and Northern Ireland because of that.

[David T. C. Davies]

I think the hon. Gentleman is right that HS2 was not Barnettised, and I would be heading off down a branch line myself in terms of this debate if I go into it. Very briefly, virtually everyone here has signed up to the view that we need to become carbon-neutral by 2050. If we are to do that, one of the things that we must do is get people out of their cars and on to trains. If we are to do that successfully, we need to build lines where they will get the maximum number of people out of cars and on to trains, and that happens to be along the HS2 route.

Some expert in the field said to me the other day that it was a pity it was called High Speed 2, because that gives the impression that it is all about delivering a high-speed train. But he said it is not at all; it is about delivering a huge amount of extra rail capacity that will get vast numbers of people out of their cars, off the roads and on to a train, which will be powered by electricity that should come from green sources. Possibly the name could have been slightly better chosen.

I may have exhausted your patience, Mrs Cummins, so if there are no further interventions, let me thank all hon. Members for an interesting, perceptive debate. If I have not responded to every question, I should be more than delighted to do so if I am reminded of what they are.

The UK Government’s commitment to the Welsh rural economy is not in any doubt. It is integral to building back better from the pandemic, as well as strengthening the Union. Our support for the Welsh rural economy is unwavering and I am sure will go from strength to strength in the coming months and years, driving local growth and creating jobs. As we come out of this pandemic as a result of the wonderful vaccine, that it was possible to deliver so quickly as a result of Brexit, the Secretary of State for Wales and I look forward to visiting Wales on many occasions over the coming months and hopefully even years—who knows—in order to see those growth deals in action and to watch levelling up happen before our eyes. Diolch yn fawr iawn.

Oral Answers to Questions

Jonathan Edwards Excerpts

Wednesday 3rd February 2021 Commons Chamber

[Simon Hart]

As my hon. Friend might imagine, there are regular discussions across all levels of government around data accuracy and the progress that we can make with this particular challenge. He is right to point out that it is, of course, a devolved issue. We are trying to ensure that we can find solutions to issues of a more permanent nature—perhaps persistent data problems, for example—but the ambition remains to get absolutely everybody in those cohorts done within the timescale, and we are currently on target to achieve that.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

What recent discussions he has had with (a) the Welsh Government and (b) Cabinet colleagues on the UK shared prosperity fund.

[Wayne David (Caerphilly) (Lab)]

What recent discussions he has had with the First Minister of Wales on the UK shared prosperity fund.

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

My right hon. Friend the Secretary of State has regular discussions with the First Minister and Welsh Ministers on a range of issues, including the UK shared prosperity fund. The Government will continue to engage with the Welsh Government as we develop the fund’s investment framework for publication.

[Jonathan Edwards [V]]

From the figures that I have seen, the British Government may have conflated overrun spend from the previous convergence period for this financial year with the actual allocation of new money. Under the previous scheme, Wales would receive nearly £400 million per annum. Is not the reality that the Minister is unable to guarantee that the shared prosperity fund, when fully operational, will match that level of investment? Why will he not just admit that the communities that both the Secretary of State and I represent in Carmarthenshire are about to get fleeced?

[David T. C. Davies]

The figures will show that on average Wales is receiving £375 million a year. What the hon. Gentleman may be referring to is the fact that over a number of years to follow there will still be some money coming to Wales from the European Union. Of course, it is absolutely right that that money should be counted towards the £375 million total, and the Government will guarantee to ensure that the amount of money to be spent in Wales in future will be exactly the same, or higher, than the amount that was spent previously.

Oral Answers to Questions

Jonathan Edwards Excerpts

Wednesday 16th September 2020 Commons Chamber

[Simon Hart]

I assure the hon. Lady that there will never be a moment when the Government or the Wales Office sit back and think we have done enough as far as this is concerned. We are always striving and will always strive to ensure that we improve every one of our schemes. Where there are gaps, which we have identified before—Government Members have also been helpful in that respect—we will do everything we can to ensure that they are plugged.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

What discussions he has had with the Welsh Government on legislative proposals for a UK internal market.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

What recent assessment he has made of Wales’s role in the proposed UK internal market.

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[The Secretary of State for Wales (Simon Hart)]

The Government’s response to the UK internal market consultation published last week highlighted the broad support for the proposals from businesses and job creators in Wales. The Bill gives businesses the continued certainty of seamless trade across the UK as the transition period ends.

[Jonathan Edwards]

Much of the rhetoric around the United Kingdom Internal Market Bill is that it is a shared asset, yet what is missing are any shared intergovernmental structures. On Owain Glyndwr Day, why will the British Government not be honest for once and admit that they are using consequential legislation resulting from Brexit, such as this Bill, to effectively reassert direct Westminster rule over Wales?

[Simon Hart]

I disagree with the fundamental premise of the hon. Gentleman’s question. These proposals went to public consultation, and I will quote the response from one business in Wales that is promoting Wales, employing people in Wales and contributing to the Welsh Government. It said:

“The UK Internal Market Bill will be the making of the UK.”

It seems to me that the comments relating to UKIM are divided into politicians who are anxious to protect their cosy clique in Cardiff, and business, employers and the public in Wales, who recognise that this is an important part of the next stage of our economic recovery.

Welsh Affairs

Jonathan Edwards Excerpts

Thursday 27th February 2020 Commons Chamber

[Simon Hart]

I will continue, if I may. The most important people we have spoken to during this incident have been the families and businesses affected. This has been horrendous for them and it remains so, because these weather patterns have not completely worked their way through.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

rose—

[Simon Hart]

I will of course give way to my neighbour.

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[Jonathan Edwards]

The Secretary of State will know that Carmarthenshire has a history of flooding. There were big floods there about a year ago, and even now some of the families and businesses affected are still recovering. One big issue is that they cannot get insurance after having been flooded. There is a huge market failure in that insurance market and public intervention will be needed. Will he press his colleagues in the UK Government to come up with a UK Government insurance scheme to support families who cannot get insurance because of flooding?

[Simon Hart]

As the hon. Gentleman knows, this issue has come up a number of times in the decade in which we have been in this House. The answer to his question is yes, but it is never as simple as it seems. All sorts of contributory factors are involved, with planning being one, but I assure him that we will take that issue seriously and look into it.

I had wanted to mention financial assistance, because it was raised during yesterday’s Welsh questions and Prime Minister’s questions. It is an important moment to restate what the Prime Minister said yesterday about money being “passported through” in relation to this. The hon. Member for Rhondda (Chris Bryant) is not here, but if he were, he would talk about this as being a Union issue, as he did yesterday. We agree that it is a Union issue, which is why we are working so closely with the Welsh Government to make sure that we know precisely what they need and when they need it, while not interfering with the devolution settlement.

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[Simon Hart]

No, I will not give way, because I must get on. I was talking about the benefits of HS2. Whether it is by direct connection to a new form of rail infrastructure, the like of which has not been seen since Victorian times, or whether it is by being able to tap into the supply chain opportunities, HS2 benefits not just those on the route that it will follow, or in the cities that it will join. It will help link up the UK, which will be good for the economic prospects of Wales.

[Jonathan Edwards]

rose—

[Geraint Davies]

rose—

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[Christina Rees]

Thank you, Madam Deputy Speaker. I am going to finish now, because I am sure that lots of other Members want to speak.

[Jonathan Edwards]

Will the hon. Member take a friendly intervention before she moves on?

[Christina Rees]

I was getting to the good bit, but I will give way to my constituency neighbour.

[Jonathan Edwards]

I am sure the hon. Member will also have some concern about the negotiating mandate set out today by the British Government in relation to the second phase of Brexit and the trade negotiations. Indeed, the Welsh Government have issued a stern statement indicating that they were not consulted at all about the mandate. I fear that the best we can hope for is a bare-bones free trade agreement. The Welsh economy will be more exposed because of our reliance on exports into the single market. What does the hon. Member think the Welsh Government should do now, since the British Government clearly are not taking any notice of Wales’s position?

[Christina Rees]

The hon. Member makes some very good points. It has been a concern of mine for a long time that the Welsh Government have not been involved in the negotiations. They have to be involved; this is the future of Wales that we are talking about. I am really disappointed that they have not been involved to the extent that they should have been.

Now I come to the good bit. The House will know how passionate I am about sport. Wales is a sporting nation. When Wales wins the people of Wales are very happy. When we lose it is the end of the world. I went to the Wales versus Italy match, which was a great result, as the House knows—I don’t think I want to talk about the other matches, so I will move swiftly on.

My constituency of Neath has a proud sporting history. The Welsh Rugby Union was created in the Castle Hotel in Neath. The best player in the world, Gareth Edwards, was born and bred in Gwaun-Cae-Gurwen. Dan Biggar’s family was born and bred in the Dulais valley, where I live, as was Dennis Gethin, who recently stood down as chair of the WRU. Of course, Neath RFC are also called the All Blacks—a great tribute.

In a former life I was a squash player and played for Wales over 100 times. It was a great honour to pull on the red jersey of Wales. I became national coach for Squash Wales, and one of my roles was to develop squash for all ages and all standards throughout Wales. We have a superb junior development structure, which has produced some great players. I am very proud to say that on St David’s Day we will have two senior players ranked in the top 10 in the world, and they have both come through the junior structure: Tesni Evans, based in Prestatyn, is two times British champion and bronze medallist at the last Commonwealth games; and Joel Makin from Aberdare, a member of the Welsh men’s team who came third in the last world championships. Wales is again showing that we are punching above our weight.

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[Stephen Crabb]

I agree with my hon. Friend. It has been said before, but it is not an accolade for Wales to achieve this status, and all politicians in Wales should have a restless ambition that Wales should not qualify for that kind of funding in future.

[Jonathan Edwards]

The right hon. Gentleman is making some very relevant points, but will he add one more consideration to his list? One of the great benefits of the way the European system worked was the multi-annual financial framework, with a five, six or seven-year programme. That will be difficult in the UK context, because we will not be able to bind the next Government, so we will be looking at five years at best, but it must be for the maximum length of the Parliament, not determined every year in the Budget.

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[Chris Elmore (Ogmore) (Lab)]

It is a privilege to follow the hon. Member for Montgomeryshire (Craig Williams). I fear that I am going to break the consensus on cross-party working—something that he knows that I am keen on—but I am afraid that I need to highlight some of the inequalities as I see them, because they come within matters that are the responsibility of the UK Government. It is a privilege to speak in this debate, and I wish all Members across the House a happy St David’s Day for Sunday.

We are just two months into a new decade, and the start of a new decade should be a time to reflect on the past 10 years and think about the progress we have made. It is the aim of every Member of this House to ensure that, as the decade rolls on, the lives of the people in our communities improve, there are more chances for our children, better services for our families and an ever-increasing number of better, well-paid jobs, enabling people to live secure and satisfying lives, but it is not that simple, because the UK has had a decade of Tory rule at Westminster. We have had 10 years of relentless cuts and Tory disdain for communities such as mine. Sadly, my party’s failure to win the general election means that we are set for more of the same, or indeed worse, because behind the bluff and bluster of the Tories harping on in 2020 about levelling up our country, the Prime Minister and his now rather famous adviser are among the most divisive teams we have had in Downing Street since Mrs Thatcher—and we all know how that ended for Wales.

What is different now, though, is that since the advent of devolution in 1999, delivered by Tony Blair’s Labour Government, we have had a devolved Labour Government in Cardiff Bay. Over the past 10 years, they have strained every sinew to protect our communities from the brunt of austerity, but in the face of the savage cuts to funding from Westminster, there is only so much the Welsh Labour Government can do. I will outline a few areas for the Chancellor to focus on in his upcoming Budget, and a few of the things he could deliver in Wales, in return for a few Welsh cakes to go with his Yorkshire tea. Failing that, I am happy to drop the Welsh cakes off at No. 10 when Mr Cummings redrafts the Chancellor’s work.

First, I want to talk about infrastructure. Since Christmas, we have had talk of bridges to Ireland; HS2 was given the go-ahead; and dead cats about moving Government Departments across the country seem to have been flung about on a daily basis. One thing has been missing in this apparent funding frenzy: yet again, as has happened ever since the Tories came to power, we have had nothing —not even a crumb—for Wales. But should we even be surprised by this? The UK Government scrapped rail electrification to Swansea. They put to bed the idea of delivering the world’s first tidal lagoon in Swansea bay—although I am glad to hear that the Secretary of State is U-turning on his predecessor’s decision on that—and they completely and utterly fail to give Wales fair funding to improve infrastructure.

Contrast this with the Welsh Labour Government, who are investing a whopping £5 billion in our rural rail network through Transport for Wales, and providing a £1.8 billion investment to ensure that all trains are replaced with new rolling stock by 2023. Half those trains will be built in Wales. This is bringing skilled job opportunities for workers across Wales and ensuring that we have a transport system that is fit for the future. Meanwhile, despite our having 11% of the track across England and Wales and 20% of the level crossings—yes, I am back on that complaint again—over the past 10 years Wales has received only 2% of the available funding from the UK Government. The Government’s great train robbery is a scandal and shows just how little the Conservatives care about investing in the future of the Welsh economy or the communities who support it.

Whether it is transport infrastructure, digital infrastructure or renewable energy infrastructure, the Tories are failing Wales at each and every turn. Looking to the economy more widely, Members across this House will be all too aware of the low pay crisis we face across too many of our industries.

[Jonathan Edwards]

The Silk commission identified the issue about rail infrastructure development. Following that, we had the so-called St David’s Day process, in which Labour and the Conservative party agreed to take measures on that recommendation out of the Wales Bill. The failure therefore falls on the hon. Gentleman’s party as well.

[Chris Elmore]

The failure falls on the Government. The hon. Gentleman knows that. His party has been in government as well. My party created devolution—something that Plaid failed miserably to do, despite all its years of campaigning for it.

Unemployment is at a historically low level in Wales, thanks to the hard work of the Welsh Labour Government, but sadly, for too many, this work is not paying. I am pleased that Welsh Labour is delivering on, and surpassing, our promise to create 100,000 all-age apprenticeships to give our young people skilled and well-paid jobs long into the future. It is also great to see Welsh Labour’s commitment to make Wales a fair work nation, which means that companies wanting Welsh Government support must sign an economic contract helping to boost the number of people who are being paid the real national living wage. What have we seen instead from the UK Government? A fake living wage that people under 25 cannot even be paid, a backs-turned approach to the future of our steel industry, and a “couldn’t care less” attitude to the universal credit crisis that has plunged thousands of people into poverty across Wales.

While the Prime Minister and Chancellor are busy making No. 10 and No. 11 a joint office, perhaps they could take just a moment—I plead with the Minister—to stop and think about what a grave impact their party’s policies have been having on communities in Wales since 2010. Ogmore cannot take another five years of the same old stale Tory policies, and he has heard that from those on his party’s Benches today. Ogmore needs a pay rise.

More widely, Wales needs a pay rise. The Welsh Government’s budget is around 5% lower in real terms than it was in 2010. If the Welsh budget had risen in line with the long-term trend of public expenditure, it would be £6 billion higher than it is today. That is around £1,800 per person. Just think what we could spend that on. It could build on the Welsh Government’s work to tackle homelessness; it could be pumped into local government, which has been pushed to breaking point because of Government austerity; and it could save lives in our NHS.

I ask the Minister to impress on the Chancellor the need for reinvestment in Wales, because levelling up our country is not about trying to buy the trust of the so-called red wall seats the Conservatives won in the north of England; it is about providing a fairer future for everyone across our United Kingdom. I stand here as a proud Unionist; I will staunchly defend our Union while I am in this place and long into the future, but under this Tory Government, Wales is too much of a tick-box exercise that does not even matter; the box often does not get ticked at all. The people of Wales do matter. I plead with the Minister to reverse these 10 years of austerity and start investing in Wales.

Ford in Bridgend

Jonathan Edwards Excerpts

Monday 10th June 2019 Commons Chamber

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Secretary of State has been on an interesting journey from supporting remain during the referendum, when he said that the people of Wales could “suffer enormously” if they voted for Brexit, to supporting the most extreme Brexiteer in the Tory leadership—a reckless no-dealer. The reality is that we have a Secretary of State representing my country who is more interested in his own career than in the jobs of thousands of manufacturers back home in Wales.

[Alun Cairns]

The hon. Gentleman wants an independent Wales, but I am unsure what opportunities that would create for attracting investment in the Welsh economy. He will be well aware that I am a strong supporter of a deal with the European Union, but I have also stated clearly that maintaining no deal as an option, a challenge and a risk, both for the European Union and for the UK economy, focuses minds on gaining a deal. A deal will also create the best opportunities for the UK and European economies to continue to attract investment and to gain access to one another’s markets.

St David’s Day

Jonathan Edwards Excerpts

Thursday 28th February 2019 Commons Chamber

[Tonia Antoniazzi]

I thank my hon. Friend for her contribution. That is very important. Many of us who were at the international match on Saturday got to see how many police are needed to keep people safe. I am really concerned that this is a drain on the resources of South Wales police in particular, and we need to address this issue immediately.

The community teams of officers and police community support officers across Swansea and Gower work tirelessly, juggling shift work and family life, and I am particularly grateful for their excellent work. I am very fortunate to enjoy a close working relationship with these teams. I have been out on the beat to see their dedication to serving the community, including visiting local pubs—not to drink, but to promote anti-drink- driving campaigns in rural areas. Without a doubt, they are committed and hard-working and I recognise the challenges that they face in dealing with some of the biggest problems in 2019.

How many of us are aware of the number of officers and support staff that it takes to keep us safe at night? I was struck by that when I went down Wind Street in Swansea with PC Andy Jones before Christmas. The resources that the force puts into ensuring that match day at the Liberty Stadium is policed and monitored are astounding. My hon. Friend the Member for Cardiff Central (Jo Stevens) has already spoken about Cardiff, so I shall move on, but that needs to be noted and it needs to be addressed.

Police forces face many challenges in providing care and support for the most vulnerable in Wales, and South Wales police are collaborating extremely well with all agencies. The police and crime commissioner, Alun Michael, has funded the groundbreaking Swan project, which involves the police and Women’s Aid working together to support prostitutes in Swansea. Those vulnerable women have nowhere to turn. They are in crisis. They often have drug problems and a history of adverse childhood experiences such as sexual abuse.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Does the hon. Lady agree that one way to give policing in Wales an instant cash boost would be to devolve it? There would then be Barnett consequentials, and instead of being tied to an England and Wales formula that penalises them, the Welsh police forces would be better off to the tune of £20 million.

[Tonia Antoniazzi]

I feel that I shall have to make a date with the hon. Gentleman to discuss his suggestion further. I do not entirely agree with it, but it would be good to have a discussion about it.

The Swan project is to be commended, and my hon. Friend the Member for Swansea East (Carolyn Harris) has another vision that I totally support. Swansea needs a 24-hour crisis hub where our most vulnerable people can have access to all the services that they need in one place. Think of having a safe space to go if you are a victim of domestic violence; think of having a consumption room in the place as you can pick up your needles. We want to keep people off the streets and safe, and we need to work with our colleagues in the Welsh Assembly to deliver that and help those who need it most.

It is fantastic to see the beauty and splendour of my constituency being celebrated on moving billboards across London: at Paddington station, I believe. I hope that Members have seen the National Trust #PlacesMatter story about Mal, who had an accident at work which meant that he was unable to walk for five years. He says that when you go to Gower, you are blown away by it. The Gower peninsula just makes him feel alive. It helped him, and it helps many others. We should never underestimate the impact of our surroundings on our wellbeing. The beauty of my constituency, from Worms Head to the Lliw Valley reservoir, can never be overstated.

Wales is obviously the most beautiful country in the UK—

--- Later in debate ---

[Tonia Antoniazzi]

It is excellent, and I want to say thanks to Goldie Lookin Chain, because it was really cool.

[Jonathan Edwards]

Will my hon. Friend also commend Goldie Lookin Chain for playing the “Yes is More” pro-independence gig in Cardiff in the last few weeks?

[Tonia Antoniazzi]

I thank the hon. Gentleman for his intervention, and—whatever.

--- Later in debate ---

[Ronnie Cowan (Inverclyde) (SNP)]

I thank the hon. Member for Gower (Tonia Antoniazzi) for securing this debate. As I stand to speak, I am sure I can see out of the corner of my eye the figure of Paul Flynn in his usual seat casting a critical but fair ear over everything I say. Paul called for St David’s Day to be a national holiday and for the Welsh language to be recognised in this place. His work on cannabis reform has been inspirational to many people. It was my pleasure and my privilege to serve on the same Select Committee as Paul. I think of him as a friend and a mentor, and he will be sadly missed.

As a child growing up in Greenock in the ’60s and ’70s, my knowledge of Wales was limited—limited, that is, to the most important thing: rugby union, and that red shirt, those songs and, as a young scrum-half learning my trade, the greatest scrum-half in the world ever, Gareth Edwards. I hated them all. They were so good. It was hard to take. Imagine my joy when, as an unsophisticated 16-year-old, if that is easy to imagine, my school team at Greenock Academy travelled to Wales to play St Cyres college in Dinas Powys. It was my moment to avenge all those defeats at Murrayfield and Cardiff Arms Park. We got hammered, or, to be more accurate, humiliated. They took us to the pub the night before; those Welsh boys were canny. We had to wait a year to reverse the result, but we did, and I look forward to the international rivalry being renewed at Murrayfield a week on Saturday. Unfortunately, at this juncture, I have been unable to acquire a ticket. I will leave that out there.

[Jonathan Edwards]

On the basis of Celtic solidarity, will the hon. Gentleman consider asking the Scottish coach to give the second squad a run-out a week Saturday?

--- Later in debate ---

[Alun Cairns]

My tone is certainly not vitriolic in any way. I am seeking to contrast the situation in 2010 and the good place Wales is now in because of the joint work with the Welsh Government. I will come on to that as the second theme I am seeking to develop. I pay tribute to the hon. Gentleman for the constructive way in which he works in relation to the challenges and issues that his constituency faces. On the specific point he makes about teachers’ pensions and so on, the Chief Secretary to the Treasury wrote to the Welsh Government on 11 February to clarify that additional resource is being made available. How the Welsh Government distribute that is a matter for them, but I hope that answers many of the questions that have been asked.

Whether it is “Lonely Planet” highlighting north Wales as one of the best places to visit, “The Rough Guide” pointing to Wales as one of the most beautiful countries or the Eurobarometer poll pointing out that Cardiff is one of the best cities to live in across Europe, Wales is in a strong position. Wales is a beautiful location, and it has a lot to offer to the United Kingdom and to the rest of Europe and beyond. In the spirit of my right hon. Friends the Members for Clwyd West and for Preseli Pembrokeshire, I want to celebrate what Wales has to offer. We should bear in mind that we are talking to international investors. Such people will be watching and reading this debate, and I am proud of what we have achieved and of the potential and the opportunity in front of us.

[Jonathan Edwards]

The Secretary of State has mentioned international investors, who will of course be watching the upcoming sequence of votes we are about to have on Brexit. He knows that the British Government’s view will be defeated on 12 March. What will he do on the 13th? Are the press rumours that he will vote for no deal on the 13th correct, because that would be disastrous for the Welsh economy?

[Alun Cairns]

I am disappointed by the approach the hon. Gentleman is taking. On the one hand, he, like many other Members in the House, will point to individual companies that are fearful of a no-deal Brexit, or farming unions and other organisations that have said they are fearful of or do not want to face a no-deal Brexit. On the other hand, however, such Members are not prepared to take the advice of those companies or farming unions that are urging them to support the Prime Minister’s deal. On that basis, they are being highly selective. The best way to secure a smooth exit from the European Union and to act on the instruction of the referendum is to support the Prime Minister’s deal. When that debate comes, I hope that Members will look at themselves and think long and hard about the risks they are taking with the Welsh economy and the UK economy if they vote against the Prime Minister’s deal, which offers us a smooth exit from the European Union and access to the European market, while confirming our position as an independent trading nation.

I wish to highlight my positive relationship with the Welsh Government, our negotiations on Brexit, and the legislative consent motion that we secured for the withdrawal Bill. The Welsh Government sit on the Cabinet sub-committee that considers preparations for Brexit, which is positive, and I hope that they will extend similar respect and opportunity for UK Government representatives to sit on their committees, because of the importance of leaving the EU in a conjoined way.

I point to the UK industrial strategy and the city deals. It was a privilege to launch the Cardiff capital region city deal plan this morning, and we are working closely with the Welsh Government on the Swansea city deal. North Wales has been mentioned on several occasions, and I am open to considering additional or different projects as a result of recent economic announcements about pausing work on the nuclear power station on Anglesey, rather than scrapping or suspending it as has been suggested. There is also the mid-Wales growth deal.

Finally, for a demonstration of joint working with the Welsh Government and local authorities across Wales, in a couple of weeks, together with local authority representatives, I will launch the first ever catalogue of Welsh projects at the MIPIM conference, to attract international investment because of the new opportunities that Brexit will bring.

Draft Government of Wales Act 2006 (Variation of Borrowing Power) Order 2018

Jonathan Edwards Excerpts

Tuesday 27th November 2018 General Committees

[The Parliamentary Under-Secretary of State for Wales (Nigel Adams)]

I beg to move,

That the Committee has considered the draft Government of Wales Act 2006 (Variation of Borrowing Power) Order 2018.

As always, Mr Sharma, it is a pleasure to serve under your chairmanship. The draft order will deliver on the commitment that the Government made in the St David’s Day agreement to extend the Welsh Government’s borrowing powers to enable Welsh Ministers to issue bonds to borrow for capital expenditure.

The Welsh Government already have extensive capital borrowing powers. The Wales Act 2014 provided that Welsh Ministers may borrow up to £500 million to fund capital investment. Those powers went hand in hand with the tax powers in the Act, which the Assembly has used to establish the land transaction tax and the landfill disposal tax. They placed fiscal responsibility and greater accountability at the heart of the Welsh devolution settlement. Following the historic agreement with the Welsh Government on the fiscal framework for Wales in December 2016, the Wales Act 2017 doubled the borrowing limit to £1 billion, with an annual limit of £150 million, in anticipation of Welsh rates of income tax coming on stream from April next year.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I am most grateful to the Minister for giving way so early in his speech. Will he give a categorical assurance that the extended powers under our consideration have nothing to do with the Budget announcement on page 66 of the Red Book that tied extra borrowing powers to a specific project in Wales? Will he reassure me that the Welsh Government will be able to utilise the borrowing capacity that comes with those powers as they so wish?

[Nigel Adams]

I can certainly give the hon. Gentleman those assurances. The draft order is about adapting the means by which the Welsh Government can borrow, whereas what was announced in the Budget was about the additional amount that will be considered during the spending review.

As the hon. Gentleman rightly says, my right hon. Friend the Chancellor announced in the Budget that at the spending review we will undertake a review of the Welsh Government’s capital borrowing powers and consider whether the borrowing cap should be increased by up to £300 million to support the delivery of a new M4 relief road. I know that many people and businesses have called for improvements to that vital artery of Wales; no doubt they welcomed that announcement.

The draft order is not about changing the amount that Welsh Ministers can borrow, but about providing greater flexibility and choice for the Welsh Government over the sources of borrowing that they wish to pursue. To date, Welsh Ministers have been limited to borrowing either from the national loans fund, which is part of the UK Government, or from commercial banks. The draft order, which is made under section 121(4) of the Wales Act 2014, will extend the means by which Ministers in Wales can borrow, to include bond issuance. It is, of course, a matter for Welsh Ministers to decide which source of borrowing provides the best value for money for Welsh taxpayers at any given time.

I am pleased to note that the Cabinet Secretary for Finance and the Chief Secretary to the Treasury have both approved the draft order. I commend it to the Committee.

Draft Tax Collection and Management (Wales) Act 2016 and the Land Transaction Tax and Anti-Avoidance of Devolved Taxes (Wales) Act 2017 (Consequential Amendments) Order 2018

Jonathan Edwards Excerpts

Wednesday 14th November 2018 General Committees

[Nigel Adams]

It is unlike the hon. Gentleman to raise the European Union withdrawal agreement, but I commend him for his canny ability to weave such remarks into a debate on the Welsh Revenue Authority and its land transaction tax capabilities.

The order, made under powers in section 150 of the Government of Wales Act 2006, makes consequential provisions on the establishment of the Welsh Revenue Authority and the creation of a land transaction tax. It has four provisions. Article 2 inserts the new Welsh Revenue Authority into schedule 1 of the House of Commons Disqualification Act 1975, so as to disqualify the chairperson and non-executive members of the WRA from being Members of this House. That puts the WRA on the same footing as Her Majesty’s Revenue and Customs in that respect. Following the devolution of powers over Assembly elections in the Wales Act 2017, whether the chairperson and non-executive members should also be disqualified from being Members of the National Assembly for Wales is, of course, a matter for the Assembly.

Article 3 inserts the WRA into the list of public bodies in part 6 of schedule 1 to the Freedom of Information Act 2000, thereby providing a right of access to information held by the WRA. In doing so, the order brings the WRA within the definition of “Welsh public authority” under that Act.

Article 4 inserts a reference to the WRA into schedule 1 to the Public Interest Disclosure (Prescribed Persons) Order 2014, ensuring the same protection for whistleblowers who contact the WRA under the Employment Rights Act 1996 as that afforded to whistleblowers who assist HMRC.

Finally, article 5 inserts a reference to the land transaction tax into regulation 45 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Under those regulations, HMRC is required to maintain a register of the beneficial owners of certain trusts. The amendment provides that those reporting requirements apply to trusts that are liable to pay land transaction tax in Wales.

The order demonstrates the Government’s continued commitment to work with the Welsh Government to deliver effective implementation of devolved taxes in Wales. In assuming tax and borrowing powers, devolution in Wales has truly come of age, as the devolved institutions become responsible not only for how money is spent in Wales, but for how it is raised.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I welcome the Minister to his post. Before he concludes his remarks, can he reassure the Committee that the Welsh Government are happy with the legislation as drafted?

[Nigel Adams]

I have not had that conversation directly, but I understand that the Welsh Assembly has been very much involved in the drafting of the order, so I will make that assumption. The hon. Gentleman will appreciate that I have not had my feet under the table for very long.

Following the implementation of Welsh rates of income tax, the Assembly will be responsible for raising more than £2 billion in tax revenue, which is around 15% of the Welsh block grant. Those fiscal powers, together with the powers devolved through the Wales Act 2017 and the fiscal framework, pave the way for the Assembly to become a fully fledged Welsh Parliament. I commend the order to the Committee.

Welsh Affairs

Jonathan Edwards Excerpts

Monday 19th March 2018 Commons Chamber

[Christina Rees]

The Labour party advocates a customs union.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the hon. Lady give way on that point, because this is a very interesting debate?

[Christina Rees]

I am being very kind today.

[Jonathan Edwards]

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]

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]

Will the hon. Lady give way again?

[Christina Rees]

No.

[Jonathan Edwards]

But that’s just spin, isn’t it?

[Christina Rees]

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.

--- Later in debate ---

[Mr David Jones (Clwyd West) (Con)]

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]

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.

[Mr Jones]

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.

--- Later in debate ---

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

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.

Autumn Budget as it Relates to Wales (Morning sitting)

Jonathan Edwards Excerpts

Wednesday 7th February 2018 General Committees

[Alun Cairns]

Rwyf yn ddiolchgar i fy Nghyfaill anrhydeddus am godi’r pwynt. Yn amlwg, dydw i ddim yn gwybod pam nad yw Prif Weinidog y Cynulliad yn fodlon rhoi tystiolaeth i’r Pwyllgor Dethol. Yn amlwg, byddai hynny’n cryfhau’r sylwadau sydd wedi eu gwneud a, hefyd, yn rhoi mwy o fanylion ynglŷn â’r gefnogaeth mae Llywodraeth Cymru yn fodlon rhoi. Yn amlwg, rwyf yn awyddus i gydweithio’n agos gyda Llywodraeth y Cynulliad, fel yr ydym wedi gwneud gyda chymaint o wahanol gynlluniau dros yr amser rwyf wedi bod yn Ysgrifennydd Gwladol a’r rhai sydd wedi bod o’m blaen.

(Translation) I am grateful to my hon. Friend for raising that point. I do not know why the First Minister of the National Assembly is not willing to give evidence before the Select Committee. Obviously, that would strengthen the comments that have been made, and would give further clarity about the support that the Welsh Government are willing to give. I am eager to collaborate with the Welsh Government, as we have done on many schemes during the period that I have been Secretary of State.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Rwy’n gallu rhannu rhai o’r pryderon ynglŷn â’r model contracts for difference. Mae’n ffordd ddrud iawn o ariannu prosiectau fel hyn ac mae’r pris, yn y pen draw, yn cwympo ar y defnyddwyr. Pam nad yw’r Llywodraeth yn edrych ar model o ariannu cyfalaf uniongyrchol? Yn y pen draw, mae pobl yn talu naill ai trwy brisiau ynni neu drwy trethi. Byddai’n llawer rhatach i bobl dalu trwy eu trethi na thrwy brisiau ynni.

(Translation) I share some of the concerns about the contracts for difference model. It is a very expensive way of funding such projects, and the ultimate price will fall on the consumer. Why are the Government not looking at a direct capital funding model? People pay either through energy prices or through their taxes, and it is far better that they pay through taxes rather than energy prices.

[Alun Cairns]

Yn amlwg, pa bynnag ffordd mae unrhyw brosiect neu gynllun fel hyn yn cael ei ariannu, mae’n rhaid bod trethdalwyr yn cefnogi’r peth. Dyna’r pwynt sydd yn cael ei wneud, felly mae’n rhaid ein bod yn profi gwerth arian unrhyw fath o gynllun, a byddwn yn tybio bydd yr Aelod dros Ddwyrain Caerfyrddin a Dinefwr yn cefnogi’r peth. Mae’n rhaid ein bod yn cefnogi gwerth yr arian a gwerth unrhyw gynllun a dyna wirionedd y peth yn y pen draw.

Yn ei ddatganiad o’r Gyllideb, nododd fy Nghyfaill anrhydeddus y Canghellor gynlluniau i sicrhau cynnydd o £1.2 biliwn i gyllideb Llywodraeth Cymru. Mae’r cynnydd yn y cyllid yn cynnwys, am y tro cyntaf, mwy na £65 miliwn dros y tair mlynedd nesaf o ganlyniad i wella fformiwla Barnett o ryw 5%, a gytunwyd yn fframwaith cyllidol Llywodraeth Cymru. Mae hyn yn addasu grant bloc Llywodraeth Cymru i adlewyrchu’r ffactor seiliedig ar anghenion a gytunwyd yn ei fframwaith cyllidol.

Mae’r drafodaeth ynghylch cyllid Cymru wedi bodoli ers datganoli—ac ers degawadau—a’r Llywodraeth hon sydd wedi rhoi sicrwydd ariannol tymor hir i Gymru. Ar hyn y bryd, mae Llywodraeth Cymru yn cael £120 am bob £100 cymaradwy sydd yn cael ei wario yn Lloegr.

(Translation) Evidently, whichever way a scheme such as this is financed, taxpayers must support it. That is the point. Therefore, we must test the value for money of any such scheme, and I believe that the hon. Gentleman will support that. That is the truth of the matter.

In my right hon. Friend the Chancellor of the Exchequer’s Budget statement, he set out plans to increase the Welsh Government budget by £1.2 billion. The increased funding includes, for the first time, more than £65 million over the next three years resulting from the 5% Barnett formula boost agreed in the Welsh Government’s fiscal framework, which adjusts the Welsh Government block grant to reflect the needs-based factor, as agreed by their fiscal framework.

Many hon. Members will know that that discussion about the Welsh budget has taken place since devolution and has gone on for decades. This UK Government have given long-term financial security to Wales. The Welsh Government receive £120 for every equivalent £100 spent in England.

--- Later in debate ---

[The Chair]

Order. I am sure that everybody wants to get back to discussing the Budget.

[Jonathan Edwards]

rose—

[Alun Cairns]

Mr Owen, gyda’ch cytundeb, ildiaf i’r anrhydeddus Aelod dros Dwyrain Caerfyrddin a Dinefwr.

(Translation) With your permission, Mr Owen, I will give way to the hon. Member for Carmarthen East and Dinefwr.

[Jonathan Edwards]

O ystyried hoffder y Llywodraeth Prydeinig o drenau dau-danwydd yng nghyd-destun rheilffyrdd Cymru, gallaf gymryd mai trenau dau-danwydd bydd yn rhedeg ar HS2, HS3 a Crossrail 2?

(Translation) Given the Government’s liking for bimodal-fuel vehicles for Welsh railways, may I assume that bimodal trains will be running on HS2, HS3 and Crossrail?

[Alun Cairns]

Rwy’n siwr bydd y Bonheddwr anrhydeddus yn cefnogi edrych ar unrhyw brosiect i ddefnyddio’r dechnoleg orau posib ar gyfer cyflawni’r gwariant a’r gwerth arian sydd ymhob prosiect.

Gaf i symud ymlaen, Mr Owen? Rydym wedi gwella’r cysylltiad yng ngogledd Cymru, gan roi budd i bobl ar ddwy ochr y ffin. Bydd gwasanaethau uniongyrchol o ogledd Cymru i Lerpwl ar gael am y tro cyntaf mewn degawdau, diolch i’r buddsoddiad o £16 miliwn i’r Halton curve. Nawr rydym yn darparu prosiect ail-signalu gwerth £50 miliwn i uwchraddio rheilffyrdd gogledd Cymru. Byddai moderneiddio prif linell rheilffordd arfordir y gogledd yn rhoi hwb sylweddol i gysylltiadau trafnidiaeth y rhanbarth. Mae ein rhaglen moderneiddio Great Western, gan gynnwys ein buddsoddiad o £5.7 biliwn mewn trenau IEP o'r radd flaenaf, yn torri 15 munud oddi ar yr amseroedd teithio o dde Cymru i Lundain.

(Translation) Obviously, I am sure that the hon. Gentleman will be supportive of any project that will use the best possible technology to achieve the expenditure and the value for money that all projects require.

May I move on? We are improving connectivity for north Wales, benefiting people on both sides of the border, and direct services from north Wales to Liverpool will be possible for the first time in decades. That is thanks to our £16 million investment in the Halton curve. We are now delivering a £50 million re-signalling project to upgrade north Wales’s railway, and modernising the north Wales coast main line would be a significant boost to the region’s transport links. Our Great Western modernisation programme, including a £5.7 billion investment in new, state-of-the-art IEP trains, will cut journey times from south Wales to London by 15 minutes. At the Budget—

--- Later in debate ---

[Jonathan Edwards]

Mae’n anrhydedd enfawr i wasanaethu dan eich arweinyddiaeth chi, Mr Owen, yn enwedig yn siarad, am y tro cyntaf, yn iaith y nefoedd. Rwyf yn gobeithio y bydd yr egwyddor yma yn cael ei ymestyn i Bwyllgorau eraill y Tŷ yma—er enghraifft, y Pwyllgor Materion Cymreig dan arweinyddiaeth yr Aelod anrhydeddus dros Fynwy.

Rydym yn cyfarfod i drafod Cyllideb enbyd o siomedig. Roedd dadansoddiad y Swyddfa Cyfrifoldeb Cyllidebol, a ddaeth yr un adeg â’r Gyllideb, yn wirioneddol ddiflas, gyda rhagolygon wedi eu hisraddio ar gyfer buddsoddi gan fusnes, cynhyrchedd a thwf economaidd—a hyn am yr ail Gyllideb yn olynol.

Mae’n glir bod yr athroniaeth o gywasgu ariannol ymledol—expansionary fiscal contraction—a ddilynwyd gan y Trysorlys ers 2010 wedi methu yn llwyr. Holl bwynt llymder a thorri yn ôl ar fuddsoddi cyhoeddus oedd y dylsai fod wedi arwain at gynnydd enfawr mewn menter a buddosddi preifat.

Ynghyd â’r toriadau mewn buddsoddiad seilwaith, y gwrthwyneb sydd wedi digwydd, fel y gwnaethom ni rybuddio dro ar ôl tro—a hyn oll gyda’i gilydd yn arwain at lefel cynhyrchedd cronig. Yn wir, lefelau cynhyrchedd cronig y wladwriaeth Brydeinig oedd prif stori y Gyllideb.

(Translation) It is a huge privilege to serve under your chairmanship, Mr Owen, particularly while speaking the language of heaven for the first time in the House. I hope that this principle will be extended to other Committees of the House, such as the Welsh Affairs Committee, which is chaired by the hon. Member for Monmouth.

We meet today to discuss the dreadfully disappointing Budget. The OBR’s analysis was truly depressing: for the second Budget on the bounce, it downgraded forecasts for business investment, productivity and economic growth. The philosophy of expansionary fiscal contraction pursued by the Treasury since 2010 has completely failed. Austerity and cuts to public investment were supposed to lead to a bonanza in private enterprise and investment—that was the whole point—but of course, as we consistently warned, the reverse happened, together with cuts in infrastructure investment. All that led to chronic productivity levels—indeed, that is main story for the UK.

The chronic productivity challenge that the UK faces was the major issue in the Budget. The situation that we find ourselves in was of course totally foreseeable.

Y canlyniad yn y pen draw yw bod y Trysorlys wedi colli ei dargedau dyled gan filltiroedd. Roedd hyn i fod dan reolaeth erbyn 2015—bwriedid iddo fod yn brosiect bum mlynedd—ond mae’n edrych fel petai cywasgu ariannol pellach am barhau tan ddiwedd y ddegawd nesaf. Ni fydd haneswyr economaidd y dyfodol yn garedig iawn i’r Llywodraeth Brydeinig.

Rydym yn gwynebu cenhedlaeth goll o ran safonau byw, gyda’r wasgfa fwyaf ers rhyfeoloedd Napoleon yn debyg o barhau tan o leiaf 2025, yn ôl y Resolution Foundation. Mae’r sefyllfa yma wedi cael ei greu, wrth gwrs, gan y cwymp mewn sterling.

(Translation) The end result was that the Treasury missed its debt and deficit targets by a country mile. That was all supposed to be under control by 2015. It was supposed to be a five-year project, but it looks like further fiscal contraction will now continue until the end of the next decade. Economic historians of the future will not look kindly on the UK Government. We face a lost generation in terms of living standards. According to the Resolution Foundation, the biggest squeeze since the Napoleonic wars is likely to continue until at least 2025. Of course, that came about as a result of the collapse of sterling.

According to economists, the collapse in the currency represents the least successful devaluation in history. Unlike the devaluation in China, which was driven by the People’s Bank of China to make the manufacturing sector competitive, the devaluation of sterling was a direct result of markets betting against the currency, which does not reflect well on what will happen following Brexit. The fact that there has been no export boom following the devaluation of the currency—as well as the fact that the currency has not rebounded after more than a year of promises, and with the British Government outlining their position on Brexit—does not bode well for the future.

[Simon Hoare]

Is the hon. Gentleman aware that manufacturing output and exports are at their highest for a decade?

[Jonathan Edwards]

The export boom that would be expected from a 20% devaluation in sterling has not occurred. That is the factual reality of the situation. The fact that the currency is not rebounding, despite the British Government apparently outlining what they want from the Brexit negotiations, indicates that the markets are betting against the British Government.

[Chris Bryant]

One of the biggest mistakes that the coalition Government made in 2010 was cutting capital budgets. That meant that we did not have the infrastructure in place that we need for a modern economy. That has hit productivity across the whole country.

[Jonathan Edwards]

Mae’r Bonheddwr anrhydeddus yn gwneud pwynt cywir iawn a byddaf yn dychwelyd i’r pwyntiau hynny yn hwyrach yn fy araith.

(Translation) The hon. Gentleman makes a very valid point, and I will return to the issues he raises.

[Liz Saville Roberts]

A fyddai fy Nghyfaill anrhydeddus yn cydymdeimlo gyda ffermwyr fyddai’n disgwyl gyda’r bunt wan y byddai defaid o faint bach yn gwerthu’n dda ar y cyfandir? Nid dyma’r neges a glywaf gan fy ffermwyr i ym Meirionydd.

(Translation) Does my hon. Friend sympathise with farmers who would expect smaller sheep to sell well on the continent, even though that is not the message that I am hearing from farmers in Meirionnydd?

[Jonathan Edwards]

Mae hynny’n wir. Roeddwn yn darllen rhywbeth ddoe bod disgwyl y bydd pris defaid, yn enwedig, a chig yn syrthio’n ddifrifol os mae Cymru’n ffeindio’i hunan y tu allan i’r undeb tollau. Mae’r peryglon ar gyfer y sector amaethyddol, sydd yn ein gwynebu yn y dyfodol agos, yn beryglus iawn. Mae ein arweinydd seneddol yn codi pwynt dilys iawn.

(Translation) That certainly is the case. I was reading something yesterday that said that the price of sheep, and of meats in general, is expected to fall significantly if Wales finds itself outside the customs union. The risks for the agricultural sector in the very near future are huge. Our parliamentary leader raises a very valid point.

[Susan Elan Jones]

Rwyf yn cytuno gyda’r Bonheddwr anrhydeddus yn llwyr wrth iddo sôn am yr argyfwng ym myd ffermio, ond ydy e’n meddwl hefyd ein bod yn sôn nid am ffermio’n unig ond hefyd am yr economi wledig gyfan ar ôl Brexit? Mae hynny yn drychinebus, i fod yn onest.

(Translation) I agree entirely with the hon. Gentleman about the crisis in agriculture. Does he believe that we are talking about not only farmers, but the broader rural economy, as a result of Brexit? This truly is a crisis, is it not?

[Jonathan Edwards]

Mae’r Foneddiges anrhydeddus yn codi pwynt hollol sylfaenol. Mae amaeth yn ganolog i’r economi wledig. Os yw amaeth yn dioddef, bydd sectorau eraill yn dioddef, megis twristiaeth a phob math o sectorau. Gallen i fynd i fewn i araeth hir iawn am beth sydd angen gwneud i amddiffyn ein sector amaethyddol, ond dwi’n credu byddaf yn mynd ychydig y tu allan i gwmpas y Gyllideb. Rwyf wir yn credu bod Brexit yn bwynt mor ganolog y dylai’r Uwch Bwyllgor yma gwrdd eto yn fuan iawn i drafod polisi’r Llywodraeth. Credaf mai hwn, o bell ffordd, yw’r prif her sy’n ein gwynebu.

(Translation) The hon. Lady raises a fundamental point. Agriculture is a focal point for the rural economy. If agriculture suffers, other sectors will suffer, such as tourism and others. I could make a lengthy speech about what needs to be done to protect our agricultural sector, but that might be outside the scope of the Budget. I truly believe that Brexit is such a fundamental point that this Welsh Grand Committee should meet again very soon to discuss the Government’s policy. That is the major challenge facing the Government.

[The Chair]

Mae’r Llywodraeth wedi clywed y cais. Cariwch ymlaen os gwelwch yn dda.

(Translation) I am sure that the Government will have listened to your words. Please carry on.

[Jonathan Edwards]

I ddychwelyd i’r Gyllideb, mae’r Deyrnas Gyfunol—y wladwriaeth Brydeinig—wedi disgyn o’r pedwerydd i’r chweched safle yn nhabl economaidd y byd. Mae wedi colli’r raddfa credyd A driphlyg a dyma’r economi sydd bellach yn perfformio waethaf yn y G7. Mae’r eurozone—sy’n cael ei ddifenwi mor aml yn y lle yma—yn tyfu ar raddfa y gall economi Prydain ond freuddwydio amdani. Bu i’r economi Gwyddelig yn y trydydd chwarter, flwyddyn ar flwyddyn, dyfu 10.5% y llynedd, lle mae economi Cymru yn gwynebu tyfiant anemig iawn.

Y gwirionedd yw, fel dywedodd yr Aelod anrhydeddus dros y Rhondda, ar ôl y chwalfa yn 2010 ni aethpwyd i’r afael â’r diffygion strwythurol. Beth ddigwyddodd i’r addewid i ymdrin ag anghydraddoldebau cyfoeth sectorol a daearyddol? Dyna beth oedd George Osborne yn siarad amdano dro ar ôl tro yn 2010. Maent yn gronig bellach, ac yn gwaethygu. Does dim rhyfedd nad yw Aelodau’r Meinciau gyferbyn bellach yn sôn am eu slogan y cynllun economaidd hir-dymor: mae’r economi yn gwynebu anawasterau difrifol yn y tymor byr i ganolig.

Wnaf i ddim disgyn i’r demtasiwn o feirniadu Llywodraeth Prydain eto fyth am ddewis y llwybr Brexit mwyaf economaidd niweidiol. Digon yw dweud fod y strategaeth y cytunwyd arni ymlaen llaw o adael y farchnad sengl a’r undeb tollau yn cael ei gofnodi mewn hanes fel gweithred o hunan-niweidio economaidd hollol ddideimlad. Nid dim ond ein masnach gydag Ewrop sy’n cropian at ddibyn trychineb. Os bydd y Deyrnas Gyfunol yn gadael yr undeb tollau, bydd cytundebau masnach newydd yn cael eu trafod gan Lywodraeth y Deyrnas Gyfunol yn hytrach na’r Undeb Ewropeaidd. O ystyried dibyniaeth anghymesur y Ddeyrnas Gyfunol ar wasanaethau ariannol a phŵer lobi Dinas Llundain, mae gwir bosibilrwydd yr aberthir buddiannau diwydiant gweithgynhyrchu ac amaethyddiaeth Cymru er mwyn cael triniaeth mwy ffafriol i fuddiannau Dinas Llundain.

(Translation) To return to the Budget, the UK has fallen from fourth to sixth in the global economic tables; it has lost its triple A credit rating and is the worst-performing economy in the G7. The much-maligned eurozone is growing at a rate that the British economy can only dream of. In the third quarter last year, the Irish economy grew 10.5% year on year, whereas the Welsh economy faces very anaemic growth. As the hon. Member for Rhondda said, following the 2010 crash we did not tackle the structural deficiencies. What happened to the pledges to address sectoral and geographical wealth inequalities? George Osborne talked about that consistently in 2010, but they are now chronic and getting worse. No wonder Conservative Members are no longer parroting their slogan “long-term economic plan”. The truth is that the economy faces serious problems in the short to medium term.

I will resist the temptation to criticise once again the British Government for choosing the most economically damaging Brexit path. The predetermined strategy of leaving both the single market and the customs union will go down in history as an act of callous economic self-harm. It is not just our trade with Europe that will be perilously close to disaster if UK leaves the customs union: new trade deals will be negotiated by the UK Government rather than the EU, and given the UK’s disproportionate reliance on financial services and the power of the City of London lobby, there is a real prospect that the interest of Welsh manufacturing and agriculture will be sacrificed to gain more favourable treatment for the City of London.

Trade negotiations are a bargaining process, a negotiation between two sides. There is no doubt in my mind, looking at the personnel in the Department for International Trade, that their priority in these negotiations will be ensuring maximum access for the London financial sector to the markets of other countries. What will they want? They will want access to our food sector, of course. That will be the obvious trade-off.

A prime example of that is what happened with Chile. There is a European Union trade deal in place at the moment, and despite our protestations that leaving the customs union would result in those third countries wanting to renegotiate their arrangement with the UK, what did the British Government say? “No, it’ll be all the same; it’ll be the status quo, no problem. Nothing will change.” What did Chile want? It wanted enhanced access to our food markets. That is a foretaste of what is facing key sectors of the Welsh economy in Brexit Britannia.

Fel y gosodwyd ym mhapur diweddar Llywodraeth Cymru ar gytundebau masnach, llawer o ardaloedd tlotaf Cymru yw’r rhai sy’n dibynnu fwyaf naill ai ar weithgynhyrchu neu’r diwydiant amaethyddol—ardaloedd sydd debycaf o golli eu gwarchodaeth wrth i Lywodraeth y Deyrnas Gyfunol ffarwelio â hwy wrth chwilio am gytundebau masnach.

(Translation) As was set out in the Welsh Government’s recent paper on trade deals, many of the poorest areas in Wales are the most dependent on either manufacturing or the agricultural industry—areas prime for the UK Government to negotiate away their protections in search of trade deals.

I must make the point that the Welsh Government’s statement on trade yesterday was deeply disappointing, with the First Minister refusing to ensure that the Welsh Government would have a full say in what trade deals were signed in future. The reality that Wales will face as a country is that Wallonia, a region of Belgium, will have greater say over European Union trade deals than Wales will have within the British state over future UK trade deals—

[The Chair]

Order. I think the hon. Gentleman has got a bit ahead of himself and thinks he has been given the second debate on Brexit and the European Union. We need to stick to the Budget.

--- Later in debate ---

[Geraint Davies]

On the Budget’s implications for agricultural trade, is the hon. Member for Carmarthen East and Dinefwr aware that the World Trade Organisation struck down and penalised the EU when it said it would not allow hormone-impregnated beef into the EU? Still, the EU has resisted hormone-impregnated beef. Does he not think that, if we stand alone against the United States and it wants to impose hormone-impregnated beef on Welsh consumers, with the WTO behind it, we will have to like it or lump it?

[Jonathan Edwards]

The hon. Gentleman makes a valid point. The hon. Member for Caerphilly and I were in the United States a few years ago, and we had a very interesting discussion with the food lobby there. I guarantee that it carries a lot of weight, and that is a clear indication of some of the problems we will face in future.

I shall return to the Budget.

Mewn polisi ariannol y mae’r perygl arall. Mae polisi ariannol hynod lac gan y Banc Canolog wedi cynnal yr economi ers 2010, a bydd oes yr arian rhad yn diflannu’n raddol wrth i gyfraddau llog gychwyn ar eu taith tuag at normaleiddio.

Yn ystod y cyfnod hwnnw, daeth twf economaidd i ddibynnu fwyfwy ar wariant gan ddefnyddwyr fel canran o GDP. Bydd methiant i ail-gydbwyso oddi wrth economi a gynhelir gan ddyled cartrefi yn rhwystr sylweddol yn y blynyddoedd i ddod.

(Translation) Monetary policy is another danger. The ultra-loose monetary policy of the central bank has sustained the economy since 2010, and the area of cheap money will gradually be removed as interest rates begin their journey to normalisation. During that period, economic growth has become even more reliant on consumer spending as a percentage of GDP. Failure to rebalance from an economy sustained by household debt will be a significant barrier in years to come.

Personal debt is reaching the level it was at before the great crash of 2008. That should be of great concern to us all.

Mae dirwasgiadau yn dueddol o ddod bob degawd, sy’n golygu, naw mlynedd wedi chwalfa ariannol fawr 2008 ein bod yn nes at ddiwedd y cylch na’i gychwyn. Nid yw’r methiant i neidio’n ôl yn sydyn o’r chwalfa fawr ac i ail-gydbwyso yn sectoraidd a daearyddol, na dibyniaeth yr economi ar beiriant cynnal bywyd polisi arianyddol yn argoeli’n dda at y dyfodol.

(Translation) Recessions tend to come each decade, which means that nine years after the great financial crash of 2008, we are far nearer the end of the cycle than its beginning. The failure to rebound sharply from the great crash, the failure fundamentally to rebalance sectorally and geographically, and the reliance of the economy on the life support of monetary policy do not bode well for the future.

The failure to rebound quickly from the great recession, the failure to rebalance sectorally and geographically, and the decade-long dependence on the life support of ultra-loose monetary policy do not bode well for the future.

O ystyried graddfa’r her, nid yw’r Mesur Cyllid yn addas. Cyn ymdrin â rhai o gymalau’r Mesur hwn, carwn ganolbwyntio ar rai o’r darpariaethau sydd, ysywaeth, ar goll.

Mae model economaidd y Deyrnas Gyfunol a ddilynwyd ers degawdau gan holl bleidiau sefydliad San Steffan wedi ei seilio ar hyrwyddo gweithgarwch a chyfoeth yn Llundain a de-ddwyrain Lloegr. Dylai’r anghydraddoldebau daearyddol o ran cyfoeth fod yn destun cywilydd i wleidyddion San Steffan. Mae naw o’r deg rhanbarth tlotaf yng ngogledd Ewrop yn y wladwriaeth Brydeinig yn ogystal â’r un cyfoethocaf. Yn anffodus, wrth gwrs, mae gorllewin a gogledd Cymru ymysg y tlotaf. Dylai’r Trysorlys fod yn ceisio ymdrin â’r record gywilyddus hon, ac eto does dim yn y mesur cyllid hwn fydd o ddifrif yn mynd i’r afael â’r heriau o’n blaenau.

Efallai mai un o ganlyniadau Brexit fydd y bydd cwmnïau ariannol Dinas Llundain yn adleoli i Baris, Frankfurt a Dulyn. O ystyried hynny, dylai Llywodraeth Prydain ymateb drwy ganolbwyntio ar sectorau economaidd eraill, yn enwedig gweithgynhyrchu. Dylai hyn arwain at symud y pwsylais ymaith o dde-ddwyrain Lloegr i’r cenhedloedd a’r rhanbarthau.

Yn anad dim, dylai Cymru gael y grym cyllidol i lunio ein heconomi ein hunain. Mae’n warthus fod gan yr Alban a Gogledd Iwerddon setliad cyllidol a threthiannol llawer gryfach na Chymru. Oherywdd hyn, bydd economi Cymru dan anfantais sylweddol. Dydw i methu deall pam nad yw gwleidyddion o’r pleidiau Unoliaethol a bleidleisiodd o blaid rhoi mwy o bwerau i’r Alban a Gogledd Iwerddon yn barod i ddarparu ar gyfer ein cenedl ni ein hunain.

Hyd yn oed os ydym yn rhoi i’r neilltu yr anghydraddoldebau cyfansoddiadol, mae’r sefyllfa yn golygu fod Llywodraeth Cymru yn llai abl i ymyrryd yn ein heconomi. Os mai Brexit caled fydd hi, dylid datganoli portffolio cyfan o drethi, gan gynnwys treth teithwyr awyr, treth ar werth a threth gorfforaeth.

Dylai buddsoddi mewn seilwaith gael ei wasgaru’n fwy cyfartal ar draws y wladwriaeth Brydeinig.

(Translation) Considering the scale of the challenge, the Finance Bill is in no way fit for purpose. Before addressing some of the measures in the Bill, I will concentrate on some provisions that are sadly missing. The UK economic model, which has been followed for decades by all the establishment parties in Westminster, is based on promoting activity and wealth in London and the south-east of England. The geographical wealth inequality should be a matter of shame for Labour and all politicians in Westminster. Nine of the 10 poorest regions in northern Europe are in Britain, as well as the richest. Unfortunately, west Wales and north Wales are among the poorest. The Treasury’s overriding aim should be to address that shameful record, but nothing in the Finance Bill will seriously get to grips with the challenges facing us.

One consequence of Brexit might be the relocation of London-based financial companies to Paris, Frankfurt or Dublin. Given that, the British Government should focus on other economic sectors, and manufacturing in particular. That should shift the focus away from London to the nations and regions.

First and foremost, Wales should be empowered to create its own economy. It is disgraceful that Scotland and Northern Ireland have stronger financial settlements than Wales. Given that, the Welsh economy will be at severe disadvantage. I cannot understand why politicians from Unionist parties vote in favour of giving more power to Scotland and Northern Ireland, but are unwilling to do so for our own nation. Putting aside the constitutional imbalances, that means that the Welsh Government are less able to intervene in our economy. If we are to have a hard Brexit, a portfolio of taxes should be devolved, including air passenger duty, VAT and corporation tax.

Infrastructure investment should be more evenly spread across Britain. Why should Welsh taxpayers’ money be spent on English projects?

[Chris Bryant]

We had a vote last week on what we will do about the Palace of Westminster, where lots of people were anxious about us spending so much money in London. Is there not a really important thing we could do for every region of the United Kingdom? After Brexit, we will not have the skills in this country to complete the work on one of our biggest infrastructure projects, so should we not set up a parliamentary apprenticeship scheme so that people can gain those skills in Wales, with every constituency in Wales having someone working on the project here?

[Jonathan Edwards]

Mae’r Bonheddwr anrhydeddus yn codi pwynt dilys. Ces i ddim y cyfle i wneud y pwynt yma yn ystod y ddadl, ond yn bersonnol byddwn i wedi moyn symud y Senedd allan o Lundain. Rydw i’n credu byddai hynny wedi bod yn symbol o’r angen i ddatganoli’n economaidd y Wladwriaeth Brydeinig. O ystyried bod y penderfyniad bellach wedi cael ei wneud—rwy’n llongyfarch y Bonheddwr anrhydeddus ar ennill ar ei welliant—dylem nawr fanteisio ar y cyfle i sicrhau bod y buddsoddiad hynny yn cael ei wasgaru ledled y Wladwriaeth Brydeinig. Rwy’n credu bod yna job wirioneddol i’w wneud ar hynny, ac rwy’n edrych i’r Bonheddwr anrhydeddus i gynnig arweiniad, o ystyried mai fe sydd wedi arwain y ddadl i aros fan hyn—dyna job fach iddo fe dros y blynyddoedd nesaf.

(Translation) The hon. Gentleman raises a valid point. I did not have the opportunity to make this point during the debate, but I wanted to move Parliament away from London, because that would be a symbol of the need to devolve the British states economically, too. Given that a decision has been made—I congratulate him on getting his amendment to that motion through—we should take every opportunity to ensure that that investment is spread across Britain. There is a real job to be done there, and I look to him to give leadership on that over the next few months, given that he has led the debate for remaining here.

[Liz Saville Roberts]

Ar destun yr ardoll brentisiaethau, onid yw’n amser i ni gael mwy o eglurdeb ynglyn â chwmnïau gyda’u prif swyddfeydd tu allan i Gymru a gyda gweithwyr o Gymru, a’r arian sydd yn cael ei drosglwyddo o’r Trysorlys fan hyn i Gaerdydd? Yn enwedig, mae’r ardoll o 0.5% yn cael ei chodi ar gyflogres pedwar Heddlu Cymru, ond nid yw hynny o ddewis Llywodraeth Cymru ac nid ydyw’n cael ei rhoi tuag at hyfforddiant yr heddlu.

(Translation) On apprenticeships, is it not time for us to get greater clarity on businesses that are headquartered outside Wales but have workers from Wales, with respect to the money that is transferred from the Treasury to Cardiff? In particular, the levy is raised on the four police forces of Wales, which can apply to their wage packets, but it does not come under the responsibility of the Welsh Government and it does not reach the police’s training budgets.

[Jonathan Edwards]

Mae hynny’n bwynt hollol deg o ran prentisiaethau plismona. Yn sicr, bydd Aelodau ein plaid ni yn ei godi yn y ddadl ar Lawr y Tŷ prynhawn yma. Y cwestiwn sylfaenol yw: pam y dylid gwario arian trethdalwyr Cymru ar brosiectau yn Lloegr tra bod Llywodraeth Prydain yn gwrthod buddsoddi mewn prosiectau Cymreig ac mewn gwirionedd yn torri addewidion megis trydaneiddio’r rheilffordd i Abertawe? Rydym ni wedi clywed lot yn barod am y pwnc hynny yn ystod y ddadl.

Os yw Llywodraeth Prydain eisiau codi cynhyrchedd mewn ardaloedd daearyddol sydd yn perfformio’n wael, rhaid iddynt ailgyfeirio buddsoddiad i’r ardaloedd hynny yn hytrach na lluchio popeth at Lundain. Mae pawb bellach yn cytuno bod buddsoddiad estynedig, tymor hir mewn seilwaith yn un o ragofynion llwyddiant economaidd. Os edrychwn ar fuddsoddiad o’r fath dros y degawdau aeth heibio, yr hyn a welwn yw cyfran anghymesur o fuddsoddiad o’r fath yn mynd i Lundain a de-ddwyrain Lloegr. Gallwn edrych ar HS1, lein y Jiwbilî, lein Victoria, Crossrail 1, Crossrail 2, yr M25 a HS2. Ni fu buddsoddiad cyffelyb yn unrhyw wlad na rhanbarth arall o’r Deyrnas Gyfunol. Pam? Oherwydd nifer o ffactorau, gan gynnwys agwedd Lundain-ganolog y pleidiau Unoliaethol. Gall hefyd fod oherwydd y modelau economaidd a ddefnyddir wrth werthuso buddsoddiadau o’r fath.

O ystyried y swyddi sydd wedi eu canoli yn Llundain, mae’r elw tymor byr ar bob punt a fuddsoddir mewn seilwaith yn debygol o fod yn uwch yno na mewn rhannau eraill o’r wladwriaeth Brydeinig. Mae hyn yn ei dro yn arwain at sbiral lle mae symiau cynyddol o fuddsoddiad trafnidiaeth yn mynd i Lundain, ac yn eu tro mae’r rhanbarthau tlotaf yn mynd a’r sbiral tuag at i lawr. Mae yma wers inni yng nghyd-destun Cymru. Fel dywedodd fy Nghyfaill anrhydeddus dros Geredigion, mae’r buddsoddiad gan Lywodraeth Cymru wedi’i anelu’n fwyfwy at Gaerdydd a’r de-ddwyrain yn hytrach na chael ei wasgaru ar draws ein gwlad.

Yn 2015-16, yr oedd gwariant cyhoeddus ar drafnidiaeth yn £973 y pen yn Llundain o gymharu â £444 yng Nghymru. Petai lefel y gwariant yng Nghymru yr un fath ag yn Llundain, buasem yn derbyn £1.6 biliwn yn ychwanegol y flwyddyn i’w fuddsoddi. Mae’r anghydraddoldebau cyfoeth mor ddifrifol yn y wladwriaeth Brydeinig fel y dylid anfon swyddogion y Trysorlys i’r Almaen i ddysgu gan yr Almaenwyr sut y gwnaethant ymdrin ag anghydraddoldebau cyfoeth daearyddol yn dilyn cwymp wal Berlin.

(Translation) That is an entirely fair point. Members of our party will return to that point on apprenticeships in policing in this afternoon’s debate on the Floor of the House. The fundamental question we must ask is why Welsh taxpayers’ money should be spent on English projects while the British Government refuse to invest in Welsh projects, and renege on promises such as the electrification of the main line to Swansea. We have heard much about that already. If the British Government want to raise productivity in low-performing areas, they must redirect investment into those areas, rather than throwing everything at London.

It is widely agreed that sustained long-term investment in infrastructure is a prerequisite of economic success. In recent decades, a disproportionate amount of that investment has been made in London and the south-east of England, such as that on HS1, the Jubilee line, the Victoria line, Crossrail 1, Crossrail 2, the M25 and HS2. There has been no comparable investment in any other country or region of the UK. Why? It is due to a number of factors, including the Unionist parties’ London-centric approach. It may also be because of the economic models employed in evaluating such investments.

Given the concentration of employment in London, the short-term return on every pound invested in infrastructure is likely to be higher there than in other parts of the UK. That, in turn, leads to a spiral, in which ever-increasing amounts of investment in transport go to London, and the poorest regions spiral downwards. I believe there is a lesson there for us about the Welsh context. My hon. Friend the Member for Ceredigion made the point that Welsh Government investment is targeted more and more at Cardiff and the south-east, rather than being spread across the nation.

In 2015-16, identifiable public expenditure per capita was £973 in London, compared with £444 in Wales. If the level of spending in Wales were the same as it is in London, we would receive an extra £1.6 billion per annum for investment. The wealth inequalities are so important that Treasury officials should be sent to Germany to learn how it went about addressing the geographical wealth inequalities following the fall of the Berlin wall.

Essentially, Germany made a strategic decision to deal with the wealth inequalities in the reunified Germany, which was based on operating aids and tax incentives for the poorer regions, and the deliberate redirection of foreign direct investment into the poorer parts of the state.

Yn niffyg hynny, rhowch inni yng Nghymru yr arfau i fwrw ymlaen â’r dasg o adeiladu ein gwlad ein hunain, oherwydd dengys hanes nad yw aros am Lywodraethau San Steffan—o ba bynnag liw—i gyflawni pethau ar gyfer Cymru yn debyg o ddelio â’n problemau. Mae Cymru wedi dioddef nid yn unig o ddiffyg sylw a buddsoddiad gan Lywodraeth y Deyrnas Gyfunol ond o flerwch llawer Llywodraeth Lafur yng Nghymru a’u hanallu i gyflawni. Mae eu hymdrech ddiweddaraf i greu strategaeth economaidd yn rhyfeddol am ei bod heb unrhyw ddangosyddion perfformiad allweddol i fod yn ganllaw i’r sawl sydd i fod i weithredu’r strategaeth ac i alluogi’r gweddill ohonom i fesur pa mor llwyddiannus yw’r strategaeth.

Roedd y Gyllideb yn wan iawn. Ystyriwn y gwyliau treth stamp. Dywedodd Pwyllgor Dethol y Trysorlys, Swyddfa Cyfrifoldeb y Gyllideb a’r Sefydliad Astudiaethau Cyllid y bydd polisi’r Llywodraeth o roi gwyliau treth stamp, y buont mor uchel eu cloch yn ei gylch, yn gwthio prisiau tai i fyny o ryw 0.3%, gyda’r rhan fwyaf o’r cynnydd yn digwydd eleni. Yn y Gyllideb, neilltuwyd £3 biliwn yn ychwanegol i gynllunio am Brexit. Felly yn hytrach na £350 miliwn yr wythnos i’r gwasanaeth iechyd, yr ydym yn gwario yn agos i £58 miliwn yr wythnos ar fiwrocratiaid y wladwriaeth Brydeinig—ac nid ydynt hwy, hyd yn oed, fel petaent yn rhoi’r atebion mae’r Llywodraeth eisiau eu clywed i’r cwestiynau nad oeddent eisiau eu gofyn.

Er iddynt gynnig rhyw godiad pitw o £2.8 biliwn i’r gwasanaeth iechyd yn Lloegr dros y tair blynedd nesaf, mae hyn yn edrych fel rhywbeth rhy fach yn rhy hwyr, gan ystyried y storïau yn y wasg dros y misoedd diwethaf. Yng nghanol argyfwng y gaeaf, gwelwn effeithiau tan gyllido cronig yn y gwasanaeth iechyd yn Lloegr. Mae’n amlwg na allwn ymddiried yn y Ceidwadwyr i ofalu am y gwasanaeth iechyd yn Lloegr. Fodd bynnag, dyw record Llafur yng Nghymru ddim llawer gwell. Fel gyda’r rhan fwyaf o bethau, maent yn siarad digon o eiriau teg yn San Steffan, ond lle maent mewn grym, mae’r stori yn wahanol iawn.

Mae’r newidiadau i’r credyd cynhwysol—universal credit—a chynlluniau i wneud i ffwrdd â’r cyfnod cychwynnol o saith diwrnod i hawlwyr pan na fuasent wedi bod yn gymwys i gael budd-daliadau, a lleihau’r cyfnod aros presennol o chwech wythnos i’r rhan fwyaf o hawlwyr i bump wythnos, i’w groesawu. Ond mae hyn yn gyfystyr, mewn gwirionedd, a rhoi plaster ar goes sydd wedi torri. Mae’r ffordd ddi-drefn y cyflwynodd y Llywodraeth y credyd cynhwysol, a’r modd y gweinyddir cynlluniau lles yn ehangach, yn gywilyddus. Mae ymwneud â chwmnïau preifat mewn lles yn anfoesol ac yn anghyfrifol. Ni ddylai cwmnïau fel Capita elwa o drueni pobl eraill. Rydym yn croesawu’r dreth ar werthiannau a gynhyrchir yn y Deyrnas Gyfunol a fydd yn effeithio ar fusnesau digidol mawr fel Apple a Google. Ond unwaith eto, fodd bynnag, gwyddom fod y Torïaid yn gwrthwynebu llawer o newid yn strwythur ein sustem dreth, sydd ar hyn o bryd â thyllau dianc sy’n caniatáu osgoi gwerth £13 biliwn mewn trethi, a pheidio â thalu mwy fyth. Doedd dim ymrwymiad penodol i gynyddu cyflogau gweithwyr y sector cyhoeddus, y rhewyd eu cyflogau—ac a gapiwyd wedyn ar 1%—ers 2010. Diolch i chwyddiant, mae hyn yn golygu fod cyflogau nyrsys wedi eu torri mewn gwirionedd o 14%. Mae Cymru yn dal i dderbyn llai y pen na Llundain. Yn anffodus, mae’r blaid Lafur yn methu gwneud yn iawn am y cam yng Nghymru, er fod ganddynt y pwerau i wneud hyn, fel mae’r Llywodraeth SNP wedi llwyddo i wneud yn yr Alban.

Mae Cymru’n dal yn derbyn llai y pen na Llundain. Yma mae rhai o gymunedau tlotaf Ewrop ac mae toriadau enfawr mewn cyllid o ganlyniad i Brexit. Mae’n her sylweddol i sectorau allweddol ein economi. Ac eto, mae’r Canghellor yn dewis defnyddio ystadegau fyddai’n fwy addas i un o fysiau mawr coch yr Ysgrifennydd Tramor i honni y bydd cynnydd o £1.2 biliwn yng nghyllid cyhoeddus Cymru o Gyllideb yr hydref. Roedd yn ddiddorol iawn yn ystod cyflwyniad yr Ysgrifennydd Gwladol: wnaeth e ddim defnyddio’r ffigwr hynny yn benodol yn ei araith, gan ei fod yn gwybod, fel dywedodd arweinydd Aelodau Seneddol Cymreig y blaid Lafur yma heddiw, bod dros hanner yr arian hwnnw yn fenthyciadau—neu fiscal transactions—y bydd yn rhaid i Lywodraeth Cymru dalu yn ôl.

Doedd dim sôn am drydaneiddio’r rheilfyrdd, sydd wedi ei ganslo er yr addewid a roddwyd; dim sôn am y morlyn llanw ym Mae Abertawe, a dim golwg ohono yn y Gyllideb; a chyllid i wasanaethau datganoledig rhyw £750 miliwn yn is nag ar ddechrau’r ddegawd. Dyna record y Llywodraeth Brydeinig pan mae’n dod at Gymru. Mae stori’r Gyllideb hon yn hollol glir: nid yw San Steffan yn becso am Gymru.

(Translation) Failing that, give us in Wales the tools to move ahead with the job of building our own country. History demonstrates that waiting for Westminster Governments of whatever colour to deliver for Wales is unlikely to address our problems. Wales has suffered not only from the UK Government’s lack of attention and investment, but from successive Labour Governments’ ineptitude in Wales and their inability to deliver. The latest effort to create an economic strategy is remarkable in that the strategy is without any measurable key performance indicators to guide those who are to implement it and enable the rest of us to gauge how successful its implementation is.

Let me turn to some specific aspects of the Budget, which was very weak. The Treasury Committee, the Office for Budget Responsibility and the Institute for Fiscal Studies stated that the Government’s policy of a stamp duty holiday, which they were so vocal about, will push house prices up by 0.3%, and that most of the increase will come through this year. The Budget provided £3 billion to plan for Brexit. Rather than the £350 million for the health service that we were promised, we are spending almost £58 million per week on bureaucracy in the British state. The bureaucrats are not even providing the answers that the Government want to hear.

The minute increase of £2.8 billion for the NHS in Wales is too little, too late, given the stories in the press in the past few months. The winter crisis has shown the impact of the chronic underfunding of the NHS in England. It is clear that we cannot trust the Conservatives to take care of the NHS in England. However, Labour’s record in Wales is not much better. Labour Members speak warm words in Westminster, but when they are in power the story is very different indeed.

The changes to universal credit, including the plan to do away with the initial period of seven days in which claimants cannot receive payments and the reduction of the waiting time from six weeks to five weeks for most claimants, are to be welcomed, but they amount to putting a plaster on a broken leg. The chaotic way in which universal credit was introduced and the way that welfare is administered more generally is disgraceful. The involvement of private companies is immoral and irresponsible. Companies such as Capita should not benefit from the misery of others. We welcome the introduction of a tax on sales generated in the UK, which will affect companies such as Apple and Google, but we know that the Tories are opposed to making changes to our tax structure, which contains loopholes that allow for the avoidance of £13 billion of taxation.

The Budget contained no specific commitment to increase public sector pay, which has been frozen and capped at 1% since 2010. Thanks to inflation, that means that nurses have had a real-terms cut to their salaries of 14%. The Labour party, unfortunately, has not put that right in Wales, as the Scottish National party Government managed to do in Scotland, despite having the power to do so.

Wales still gets less per capita than London. It has some of the poorest communities in Europe, and there are huge cuts to budgets as a result of Brexit, and significant challenges to crucial sectors of our economy. Yet the Chancellor chooses to use statistics that would be more appropriate for one of the Foreign Secretary’s red buses, to claim an increase of £1.2 billion in the Welsh budget emerging from the autumn Budget. It was interesting that the Secretary of State did not use that figure during his opening remarks, because he knows that, as the shadow Secretary of State for Wales said here on behalf of Welsh Labour MPs, more than half of that is fiscal transactions that the Welsh Government will have to repay.

There was no mention of the electrification of rail, which has been cancelled, despite the pledge that was given; there was no talk of the tidal lagoon in Swansea Bay, and no sign of that in the Budget either; and funding for devolved services is lower by some £750 million than it was at the beginning of the decade. That is the record of the British Government with respect to Wales. The story of the Budget is clear: Westminster does not care about Wales.

[The Chair]

Galwaf ar Gadeirydd y Pwyllgor Materion Cymreig.

(Translation) I call the Chair of the Welsh Affairs Committee.