(8 years, 9 months ago)
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There is a direct comparison between the scale of regeneration in Cardiff under the Cardiff Bay Development Corporation, which was formed under the previous Conservative Government, and the city deal in partnership with the Wales Government. It is a national disgrace that we are debating the future of the coal exchange and that it has been left to fall down through the inaction of the Labour Welsh Government. The impression has been given that the officers run City of Cardiff Council, which has a Labour cabinet.
Order. That is very lengthy for an intervention.
(9 years ago)
General CommitteesI do not know how to dignify that question with a response. It is a nice try to attempt to confuse the issues before us today.
I will wrap up my remarks after I have reiterated my answer to the hon. Member for Ceredigion. I am determined to get the legislation in a position that not only Assembly Members and the Welsh Government, but Members here are comfortable with—a piece of legislation that strikes the right balance and achieves our aims, which I think most fair-minded people in Wales would agree with. I will not allow this legislation, through the force of criticism from Cardiff Bay, to be changed into a piece of legislation that we are not comfortable with. As I said previously, if the Labour party were in power in the UK, its members would not take forward a Bill that delivers a separate jurisdiction. They would not be doing things that the Welsh Government are calling for.
(Cardiff West) (Lab): As my hon. Friend the Member for Wrexham said, these matters are intertwined. For example, 9,000 English students, many of whom are registered to vote in Cardiff, attend Cardiff University. In the recent vote we had in this House on their student maintenance grants, Welsh Members were effectively denied the opportunity to influence the ultimate outcome of that vote. Those students, who are disfranchised, have no one to vote for them. Their MP cannot represent them in such a vote because the students are registered to vote in Wales. Does the draft Bill do anything to re-enfranchise the people this Government are disfranchising?
If we follow the logic of what the hon. Member for Cardiff West just said, it is an argument against devolution in the first place. Arguments about those kinds of disparities were exactly the kinds of arguments made by people who opposed devolution in the first place. The health service is another example of one of the challenges of devolution. There are English residents who are patients in Wales and Welsh residents who are patients in England. Devolution throws up those complexities. [Interruption.]
I can take a hint. There is a good argument from local government members for allowing such a committee to take place.
I hear some of the criticisms of the Bill, and I hear criticisms of the English votes for English laws mechanism. I say to the hon. Member for Wrexham, who raised the criticism, that we were making those arguments in the 1990s. We—that is to say I—lost that argument. There is a recognition that Wales will be able to do things in health and education and that England will have no part in that. It is not unfair or inconsistent to say that the English should be able to take the same decisions. Of course people will be affected by that. There always have been and always will be people who have their health treatment, or who go to school or university, on one side of the border but who live on the other side. That was the case in the 1990s, when the Welsh Assembly was set up. All the Government have done is to bring a slightly consistent view to it. If it discourages Members of the Welsh Assembly from asking for yet more powers because they are afraid that their party colleagues might lose control over other things, such as policing, then as a Unionist I am pleased about it. It is a good thing and a step forward.
It is not a disgrace. It is no more of a disgrace than the Welsh Assembly in the first place, which I argued strongly against.
The Welsh Assembly was established—the hon. Gentleman knows this well, because he and I were on opposite sides of the argument back in the late 1990s—after a long debate, after a referendum and after considerable parliamentary time and scrutiny was devoted to it. His party made Members, including himself, second-class MPs by using the mechanism of the Standing Orders of this House. It is a constitutional aberration and a disgrace.
It was a manifesto commitment, and people voted for a Conservative Government because of that express manifesto commitment. If the hon. Gentleman went down to the streets of England and said, “Do you think that Welsh MPs, who are not allowed to have any say over what happens to the health service in Wales, should be able to tell the English what to do?”, I know what the answer would be. The Government are carrying out a manifesto commitment that was democratically voted for, and it is completely consistent with what Opposition Members have done. [Interruption.]
(9 years, 3 months ago)
Commons ChamberWe have had a very good and, understandably under the circumstances, passionate debate. I am sorry that because the wind-ups have been truncated—the Minister and I have, I think, eight minutes each—we will not be able to refer to everybody who spoke in the debate. I think 21 Back Benchers participated in the debate. It is good that they were all able to speak and they did so with great passion. I would like to mention my hon. Friend the Member for Newport East (Jessica Morden), who represents the Llanwern area. That was where my father worked for 20 years and where I was privileged to work in the steel plant and coke ovens for six months before I went up to university. People who come from steelmaking backgrounds understand why everyone feels so passionate about this subject. I am sorry I cannot mention everybody’s contributions, but I commend the knowledge and passion the hon. Members who represent steelmaking constituencies brought to our proceedings, not just today but throughout the current crisis and long before that.
The Government cannot say that they were not warned about the crisis in the steel industry. MPs have been assiduously vocal over a long period of time. I see that the hon. Member for Stockton South (James Wharton), the so-called Minister for the northern powerhouse, has joined us. If he missed any of today’s proceedings he can read about them in The Northern Echo tomorrow. The efforts of my hon. Friends have been the very opposite of the showboating they were accused of. On the contrary, they have stood up for their communities, the British steel industry and its workers. They have made a substantial contribution towards forcing the Government to acknowledge that action is required, however late and inadequate it might be. It is good that the Business Secretary is finally talking to the European Commission, and it is good that he has gone to Brussels. Only last week, we found out in a parliamentary question from my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) that he had not—incredibly—until now spoken to the Commission about this. Clearly, he booked his Eurostar tickets very quickly to get over there today, and we welcome that.
It is perfectly reasonable, however, to ask why it has taken so long. Why has the Business Secretary been chasing rather than leading events? We know that when he became Business Secretary he did not want to have an industrial strategy and preferred to talk about an “industrial approach”. That hardly smacks of someone who will intervene before breakfast, lunch, tea and dinner, let alone supper, on behalf of British industry. There are echoes today of the famous row between Margaret Thatcher and Michael Heseltine over Westland.
I am not going to give way, because of time.
We found out today that the Government are ordering hundreds of military vehicles and three new ships for our armed forces to be built using steel imported from Sweden. And this at the same time as Gareth Stace, of UK Steel, said that the British steel industry was “likely to die” without stronger support from the Government. He said that yesterday to the Business, Innovation and Skills Committee. We should not be surprised that the Business Secretary has until now pursued what Tata called in its briefing for this debate a laissez-faire ideology, because he has made it clear that that is what he believes in. You might not have read it, Mr Deputy Speaker, but his favourite book is “The Fountainhead”, by Ayn Rand, in which the hero blows up a poor housing estate because he does not like the design, such is his individualist approach.
The Minister may say that, but my argument is that the basic cause of the Government’s slowness to respond to the steel crisis is that the Secretary of State fundamentally believes that it is not the business of Government to get involved in markets and industry. So while he is having to be seen to be doing something by going to Brussels today, he is actually in practice—[Interruption.] Government Members can chunter away as usual all they like, but in practice he has been busy planning the dismantling of his Department’s capacity to support steel and other key strategic British industries. He has volunteered to cut his Department’s budget by 40% , and this week we read in the Financial Times how investment grants to key British sectors are being converted to loans. It turns out that the much-vaunted apprenticeship levy will become a displacement tax on business and will not compensate for the cuts to the training budget.
This approach has to stop, and it is has to be replaced with a proper industrial strategy based on the consensus built up under the last Labour Government and, in fact, the last coalition Government, but which the Business Secretary does not believe in. We need a much clearer steer from the Government that they are prepared not only to say that steel is a key strategic industry, but to act to ensure it remains a key strategic industry. I again ask Ministers what they think is the minimum capacity for steelmaking in the UK below which it is not in the country’s strategic interests to go? The Minister told the Select Committee:
“I have an absolute determination to keep steel in this country”.
In her winding-up speech, will she make it absolutely clear what she means by minimum capacity for this strategic industry? What efforts are Ministers making to calculate the cost of cleaning up sites such as Redcar when they close? In a written parliamentary answer to me last week, she could not say. How can the Government decide whether closure is the right choice when they cannot even estimate the cost of cleaning up the site?
At last week’s urgent question, I urged the Business Secretary to implement the five points raised by UK Steel at the steel summit the previous week. At that time, he could not confirm that he would. Will the Minister now confirm, albeit belatedly, that the Government will do that, and will she fully implement the energy intensive industry compensation package now, not later?
Will the Government finally press hard at the EU level on anti-dumping measures? Will the Minister even admit that dumping is going on? Will she let that phrase cross her lips in her response? Will they remove plant and machinery from business rate calculations and stop gold-plating EU regulations? Will they support the use of British steel in major projects, unlike what we hear today with the staggering news about Swedish steel being used by the Ministry of Defence? Will they listen to calls from the trade unions, including Community, for a long-term strategy rather than a hand-to-mouth approach? What are the Government going to do to support skills retention and short-time working during the current crisis, if that is needed?
This has been the first major industrial test for the Business Secretary in particular and for the Conservative Government in general since the general election As I have argued, their initial response was to revert to type and do as little as possible. They were prepared, it seemed, to let a key strategic industry die without a fight. Because of the chorus of voices from local MPs, from us as Her Majesty’s loyal Opposition, from the workforce, from employers and from the public, they have had to move, albeit far too slowly and too late for thousands who have lost their jobs The steel industry is a classic example of a case where the Government need to be prepared to roll up their sleeves immediately and intervene before breakfast, lunch, tea and dinner. This Government have been slow to act. The steelworkers whose jobs have been lost know it, the British public know it and, deep down inside, Ministers know it too—it will not be forgotten.
(9 years, 11 months ago)
Commons ChamberMy point is that the way the Barnett formula operates in Wales is still unfair in comparison with the amount paid out in Scotland—I am sure my friends in the Scottish National party would hit me over the head if they were here, but I will take advantage of the fact that they are not. It is a difference of £1.2 billion per annum, which is a lot of money. I remind Members that the current process on further powers for Wales began about four years ago. The issue of funding was then outside its remit, which I believe was a mistake, whether deliberate or not. Fair funding for Wales has gone for the time being, and it continues to be a major issue that the commission could have settled or commissioned work on for the future.
We entered these discussions in good faith and attempted to be constructive, as the Secretary of State said. I am not jumping up and down and screaming about the result—there are good things in the Command Paper, which I will refer to in a moment. However, we have missed an opportunity to have all the tools further to develop the economy of Wales, and to give the Welsh people further accountability for and control over the way they run their lives, and over the way money is spent for the economic good of Wales.
I would like to take the opportunity to wish the right hon. Gentleman all the best for when he leaves this House and to thank him for his service to it. Is not the logic of the position he outlined on Barnett that, since the unfairness exists between Wales and Scotland, his recommendation would be to take money from the Scottish settlement and redistribute it to Wales, rather than take it from the English settlement to achieve the same thing?
No, it is not. The argument I am making is that we should look for a fair funding formula that will stand the test of time, so that we do not have to keep coming back and forth discussing this issue all the time. I do not want to take money from any other constituent part of the UK. It is certainly not my remit to do that, and I would not even argue for it. We have missed an opportunity to address this issue.
The commission recommended a package of powers, which was agreed as a compromise by all four parties in Wales. As I have said, we in Plaid Cymru wanted to see more powers devolved, but we agreed on the commission’s recommendations as a compromise package providing a way forward. As we remember, the Government initially sought to water down the recommendations through their publication of the Wales Bill by adding a lockstep to income tax powers and omitting to devolve short-haul air passenger duty. To the credit of my Plaid Cymru colleagues—and, I would add, of various other Back-Bench Members of all parties—the Government were forced to change tack and ensure that many of the blocks and caveats that limited the powers on offer were ultimately removed from the Bill. Unfortunately, APD is still omitted from the Command Paper, despite its appearance in the original package.
We warned all along that the powers on offer to Wales from the Government would probably be superseded by the events of the Scottish independence referendum. We were proved right. As the campaign was hotting up and the Government were falling over themselves to offer greater powers to Scotland, it immediately became apparent that Wales would be left behind. It was, I am afraid, the Westminster parties that promised devo-max and home rule in something of a blind panic when they thought they might lose the referendum, yet they have subsequently failed truly to deliver what they promised. The people of Scotland will doubtless reflect on that in May—indeed, they already are, if the opinion polls are to be believed.
I note with interest what is happening with the Government’s plans to create a so-called northern powerhouse in England. Significant fiscal powers are set to be devolved to Manchester—dubbed Devo Manc. In that light, the third-rate devolution being offered to Wales is more of a “devo manky”, in a stale and worthless sense, rather than a dynamic and lasting solution to the hunger for greater powers that exists in Wales.
We remain sceptical of the need for a referendum on the technical matter of devolving such a small share of income tax powers. The principle of fiscal devolution has been conceded with the devolution of the minor taxes. We maintain that any referendum should be on a much wider remit of powers or for a much greater share of income tax. Ideally, the parties will include powers for devolution in their manifestos and the next Government will proceed to devolve on that basis.
Some of the things included in the Command Paper are most welcome, particularly control over fracking, devolving port development, increasing power over energy production and the significant step of implementing a reserved powers model. There are several other useful aspects, too, so it would be silly of me to suggest that this was not a useful step forward. Overall, however, it falls short of the powers that I believe could help us to strengthen our communities in Wales. It goes nowhere near getting the funding settlement that I have said Wales is owed after decades of disadvantage.
I am dismayed at the fact that policing is not devolved, given what the Silk commission said about it and the overwhelmingly strong evidence in favour of doing so. Furthermore, Wales is, I think, the only country in the world with its own legislature but without its own judicial system. Putting that right is long overdue. As the Government and the country wrestle with the question of EVEL—English votes for English laws—it brings that issue into still higher and more urgent profile.
It is a matter of common sense, too. I am returning to practising law, and there is a corpus of Welsh laws already: Welsh criminal law, Welsh family law, Welsh environmental law, constitutional and administrative law. The time has come to look at putting together a judicial system for Wales. I am heartened that barristers of all political opinions and none who practise in Cardiff—there are a couple of hundred of them—have come together to form an organisation to campaign on this issue. I am heartened that they see the need for it. It could deliver economic benefits to Wales, as much as anything else. I do not quite understand why the Silk commission said the Welsh Government should speak with the UK Government in eight years’ time to see whether they can do something then. More than two of those years have already gone, and I would argue that the time is now, rather than sitting down over a cup of tea in another six years’ time.
On the Barnett floor—yes, it is a floor and I understand how it works—the Holtham Commission noted in its report:
“politicians (and voters) may well take the view that maintaining relative funding at current levels is inadequate given Wales’s relative needs.”
The commission conceded that a floor under Barnett would lock in underfunding of £400 million a year, but saw its introduction as a short-term measure only to stop the underfunding getting worse at a time when funding was increasing, and therefore convergence was an immediate concern. I know things have changed and that £400 million is no longer anywhere near a correct figure. It is probably nearer £125 million or £135 million at the moment, because of cuts in expenditure and so on. My point is that a floor does not guarantee that the underfunding will not increase in future years if the relative needs of Wales increase. If, for example, the relative funding needs of Wales increased by 2%, the underfunding would increase up to £700 million a year and the floor would provide no protection. The weak negotiating position of the Labour Welsh Government has been exacerbated by their lack of ambition in setting out clearly their demands for fair funding in Wales.
So where does all this leave the people of Wales? I say way behind. Wales is a nation—something I have never ceased to believe in all my years in this place, having the privilege of representing the people of Meirionydd Nant Conwy and, latterly, Dwyfor Meirionydd. Wales is a nation and it deserves to be treated as an equal. Both I and my Plaid Cymru colleagues demand adequate funding for our country. We should be pushing for greater powers for Wales to stand on its own two feet, and for the economy to be developed in a sympathetic, sensible and sustainable way, and we are dismayed that this has happened.
As I look back over all the years I have had in this House, I remember with great pride working towards securing advances in devolution—first, in the devolution big bang at the end of the 1990s—and in securing the advances in powers for the National Assembly since then. I spoke at an awards ceremony in Cardiff city hall a couple of months ago. I opined then, and I continue to hold that opinion, that 99.9% of Members of Parliament are hard-working decent people who are here to make a difference. I am proud to say that over the years I have made friends in all political parties. I pay tribute to the right hon. Member for Torfaen (Paul Murphy). He was an excellent Secretary of State for Wales and for Northern Ireland and a man one could always do business with. It was a pleasure to do so.
I am standing down at the election. I hope Liz Saville-Roberts will be returned as my successor. She is of the highest calibre. She will be a hard-working Member of Parliament: a thoroughly decent, honest and hard-working Member to add to the substantial number we have already. I thank the electors of Dwyfor Meirionnydd and Meirionydd Nant Conwy for the honour of representing them over the past 23 years. I will finish by saying that if I could wind back the clock, I would do it all again.
I congratulate my hon. Friend the Member for Montgomeryshire (Glyn Davies) and the hon. Member for Ynys Môn (Albert Owen) on securing this debate. I appreciate the comments that my hon. Friend the Member for Montgomeryshire made about Dewi Sant. I was in Llanddewi Brefi on Sunday with 200 members of the Ceredigion Women’s Institute, and they were very mindful of the importance of Dewi Sant. I thank the Backbench Business Committee for allowing us the opportunity for this debate, which is very important, as the right hon. Members for Torfaen (Paul Murphy) and for Dwyfor Meirionnydd (Mr Llwyd) said.
I, too, pay tribute to all the Members who will be retiring from this House in a few weeks’ time. First, I pay tribute to the hon. Member for Aberavon (Dr Francis), who is not in his place. When I first came here in 2005 with a slight sense of trepidation, having not exactly expected to be here, it was a privilege, having been thrust on to the Welsh Affairs Committee, to serve under somebody of such distinction. The inclusive way in which he chaired that Committee was much appreciated. I should say that it is run in very much the same vein by the hon. Member for Monmouth (David T. C. Davies). I also thank the right hon. Member for Torfaen. I remember retreating to the Tea Room immediately after making my maiden speech, and the kind words he said to me there in recollecting one of my predecessors in Ceredigion, the late Geraint Howells. That was appreciated.
The right hon. Member for Dwyfor Meirionnydd and I share a border, albeit a river—the River Dyfi. His reputation goes before him in this House, but, on a local basis, I have enjoyed the occasions when we have worked together on behalf of our constituents on both sides of the border on issues such as tourism, the need to protect and advance Aberystwyth university—he is an Aber alumnus, like me—and the future of our national health service, particularly at Bronglais hospital. Going round the wards of Bronglais hospital at Christmas, even if it were appropriate to canvass there would be no point, because a third of the people there are from Barmouth, Towyn and Aberdovey, another third are from Montgomeryshire, and some from as far away as Llanidloes. We shall miss both right hon. Gentlemen, and I wish them well in their retirement.
The collaborative approach that I alluded to has been a feature of the political discourse in the past few weeks. I congratulate the Secretary of State on the opportunity provided by his leaders’ summits. My party has one Welsh leader—Kirsty Williams AM—so I felt like a bit of an interloper on those occasions. The many meetings that we had were very interesting, and I believe they have had a productive outcome.
I applaud the attempt to reach a consensus on advancing Silk II. Speaking as a Liberal Democrat whose leader, the Deputy Prime Minister, had already signed up to Silk II in its entirety, long before the process began, I believe that the St David’s day document falls short in a number of areas, not least, as we have heard, in policing, justice and youth justice. However, as a member of a party that is committed to home rule and did not envisage this initiative, I still think that it represents an important step forward. It is a tribute—I have heard lots of references to the Conservative Government on the Government Benches this afternoon—to this coalition Government. I think that the Secretary of State would acknowledge that, because his ministerial colleague and my party colleague Baroness Randerson has worked on these matters as well. This has been a collective effort by both coalition parties.
It was a great satisfaction to see consensus between all four parties on the vast majority of Silk II recommendations, although there were areas of disagreement. I suspect that members of two political parties at either end of the M4 may, at some later date when we write memoirs, acknowledge that there have been slight divergences of opinion, but that is perhaps a debate for another day. Two parties in the discussions were consistent on policing and justice: Plaid Cymru, to its credit, and my party have consistently said that those matters should be devolved. That remains our position. It is not in the document because consensus was not reached, but it will be a feature of my party’s general election manifesto.
Reference has been made to Megan Lloyd George. I too have done a bit of historical research. In 1950, when she was trying to defend, as a Liberal, the great constituency of Ynys Môn, she was charged with delivering a UK-wide party political broadcast. Much to the annoyance of the BBC, she ended it with the phrase “hunan-lywodraeth i Gymru”. Not many people in the United Kingdom understood that message, but people in Ynys Môn did, and she held the seat for a little longer—as a consequence, I like to think.
The drift, or rather the march, towards home rule remains my party’s objective, and in that sense what we have heard about the floor is welcome. In Cardiff on Sunday, the Chief Secretary to the Treasury talked of his hope that Gerry Holtham—a man who is greatly respected by both the United Kingdom Government and the Government in Cardiff—would undertake some work on the shortfall. That may be the Chief Secretary’s aspiration, but I should be interested to hear from the Secretary of State whether such work can be commissioned, because it is important. Before we can move on to the funding issues, we need to have that respected assessment of how extensive the shortfall is.
Let me now refer to two issues that have been much discussed here in recent weeks: the dairy sector and tourism. Both are critically important to my constituency, and more widely. The severity of the challenges faced by the dairy industry cannot be overstated. I have used the word “industry”, but we should bear in mind the fact that behind that word are many family farms which are essential to the vibrancy of the rural economy, and that the livelihoods of many families are being jeopardised. Over-supply in the sector, reduced demand globally, the downturn in global commodity prices and, crucially, the constant pressure from supermarkets to produce goods at low prices have led to significant reductions in the prices that farmers are receiving. That is a long-term worry. If we lose the enthusiasm of young farmers wishing to join the industry, we will lose the industry of the future. Farmers are going out of business as we speak, and the National Farmers Union estimates that in recent weeks £800 million has been wiped off the incomes of UK dairy farmers. That is having a highly damaging effect on the local economy,
We are all familiar with the reports produced by the Environment, Food and Rural Affairs Committee, the work of the Agriculture Minister in the Welsh Assembly Government, Rebecca Evans, and the findings of the Richardson inquiry. Our own Welsh Affairs Committee has begun to take evidence, and took evidence from the unions last Tuesday. That is important work, but it cannot be completed fast enough.
One recommendation that is currently being discussed concerns the role of the Groceries Code Adjudicator, which is hugely significant. The adjudicator should be given jurisdiction all the way down the food chain, and should be allowed to give powers to producers to ensure that the balance of power between producer and buyer becomes equal again. I pay tribute to my hon. Friend the Member for St Ives (Andrew George) and the hon. Member for Ynys Môn, who pressed for the appointment of an adjudicator for many years until the end of the last Parliament. Now, very belatedly—and I say that as a Government Member—we have given the adjudicator the power to fine supermarkets, which is an important step.
At the risk of blowing my own trumpet, may I point out that I was the Minister in the Department for Business, Innovation and Skills who gave the go-ahead for the establishment of the adjudicator at the end of the last Parliament?
I stand corrected. I had forgotten that, or, rather, my excellent researcher Chris had not written it down. I apologise to the hon. Gentleman, and pay tribute where it is due. The fact remains that this Government have now introduced the adjudicator, and we now have the capacity to fine supermarkets. That could not have come too soon, but we need to see the remit of the adjudicator extended down, for reasons of confidence among our farming community. When I make that point to my farming unions in Ceredigion, they support it as important, but it is also important for us to start articulating speedily some very positive direct measures to support the farming industry. One is to do with the role of Her Majesty’s Revenue and Customs. If, as the Prime Minister has mentioned, work can be undertaken to ensure that farmers can spread their tax payments over a longer period, that will be incredibly helpful to many of our constituents.
Farmers want to invest. They want to invest in the future; they want to develop their parlours, and they want to invest in the infrastructure on the farm. Tax allowances for machinery are a good thing, but we need tax allowances for building their infrastructure on the farm as well. I look to the Wales Office to reflect on those things and help us to make those points to the Treasury.
There are no easy solutions, but I jotted down a few things we need to look at. We need to look at the powers of the adjudicator. We need to enhance the grocery supply code. We need proactive help on exports. The EU needs to look at the intervention price of 15p and how low that is. We need to look at labelling. Public procurement remains an issue, and Her Majesty’s Revenue and Customs needs to look at its expectations of the people it is acting very irresponsibly against in many cases.
I shall deal briefly with tourism and endorse the campaign. I chair the all-party group on the tourism and hospitality industry in Wales. Many Members here today have come along to the meetings. At the last one, my right hon. Friend the Member for Clwyd West (Mr Jones) and the hon. Member for Ynys Môn were present and heard the case made for the benefits to our tourism sector. Fragile rural economies such as Ceredigion rely on agriculture and tourism, but more critically the opportunities for growth really are there. It has been estimated that a reduction in VAT to 5%, something all but four countries in the EU are undertaking, could mean another £5.3 million in the Ceredigion economy, and another 166 jobs directly in the tourism sector. We are not talking about low-wage jobs; we are talking about the potential for good jobs, enhancing the salaries of people already working in the industry, and about the benefits to subsidiary employment as well.
Of course the Treasury concern will always be the initial loss in revenue in the first year were this measure to be introduced, but the most recent figures released by the Cut Tourism VAT campaign have said this will generate far more for the Exchequer, and over 10 years could generate £3.9 billion. That is without taking into account the greater spending and growth in tourism and the knock-on effect on the wider economy. It would bring the UK into line with competitor destinations in the EU. It would increase the competitiveness of regional tourism hot spots, generate more investment for regional businesses and support wider regeneration in the areas we represent.
We have some marvellous attractions in Ceredigion, such as the coastal path going around the coast of Wales and the wonderful stretch of coastline along Cardigan bay from Cardigan to the Dyfi. I was at the National Library of Wales a few weeks ago, and the librarian was talking about a proactive attempt he is making to make the library not “That wonderful great white building on the hill” but something really inclusive to celebrate Welsh history, culture and art. We have a new soon-to-be-opened Cardigan castle, which the Secretary of State knows very well—the scene of the first national Eisteddfod. A huge amount of money is going into that project. It will be an iconic attraction in west Wales. We have, and always have had, the ingredients to entice people to come and spend money. We have the Cambrian mountains, too, and we have the best food in the world. There is so much more we have to offer people, but we need to give this jolt; it needs to be a financial jolt, and the VAT issue needs to be addressed. I believe there are certain things that colleagues in the Wales Office could do, and I hope that they will be increasingly convinced by this argument. They will have representatives of the Wales Tourism Alliance on the doorstep of Gwydyr House soon to make the case for this change, and I sincerely hope that they will be able to help us to put our case to the Treasury.
I am not renowned for my use of or appetite or enthusiasm for high tech in any guise, but it is worth remembering that the internet and the use of websites are critical to promoting Wales. That is the perception now. When people book holidays, they want to use the internet, and I am really pleased that the generic top-level domain names .wales and .cymru have come into widespread use since St David’s day. That is important for Welsh tourism businesses.
I celebrate St David’s day, belatedly, today. I hope that I shall still be here in a year’s time, and I bid a fond farewell to all those who are knowingly retiring from the green Benches.
It is a pleasure to follow the hon. Member for Ceredigion (Mr Williams), who is a doughty fighter for rural communities in Wales. On a lighter note, I met his cousin this morning. She works for the hon. Member for Broadland (Mr Simpson), and she has a cousin who works for a Labour peer down the corridor in the House of Lords. So—a little bit of friendship across the parties there.
It is a genuine pleasure to have co-sponsored this debate with the hon. Member for Montgomeryshire (Glyn Davies). He rightly talked about the first Welsh day debate in the 1940s, whose motion was moved by my predecessor, Megan Lloyd George. That was the first such debate and it was moved by the first woman MP in Wales. I am proud to follow in her footsteps.
I echo the tributes that have been paid to our colleagues who are retiring at the next election, particularly the two who have spoken today. The right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) and I have worked together on many issues, despite being from different parties, and I pay tribute to him. We have big differences, however, and the biggest is probably the fact that I am an Everton supporter and he is a Liverpool supporter. I genuinely wish him well for the future. I know that we will see a lot of him in Welsh public affairs, and perhaps in the Welsh judiciary, in the near future. Perhaps he is keen to get going because he wants to play a massive role in that regard.
I also want to pay special tribute to my right hon. and very good Friend the Member for Torfaen (Paul Murphy). He was there alongside me following my first election success in 2001. We have been alongside each other ever since I came into this House and I shall miss him greatly when I return, hopefully, in May. I know that he, too, will continue to play a big role in Welsh public life, and I pay tribute to him for the work that he has done thus far.
The Welsh Affairs Committee was successful in securing this debate through the Backbench Business Committee and I pay tribute to it for doing so. However, I am a little disappointed that it has been downgraded from a full-day debate in Government time. Wales deserves better, and I hope that we can return to having a full St David’s day debate in the next Parliament. Wales is an integral part of the United Kingdom. I have mentioned my predecessor, Megan Lloyd George. She and many others have fought for Wales in this House and we deserve a full day’s debate.
I shall resist the temptation to talk about the Command Paper. No disrespect to the Secretary of State, but the most important event of the past week was of course Wales’s victory in Paris when we beat the French. My mind was distracted from the subject of devolution as I concentrated on the important matter of beating the French.
I want to talk about two issues: energy security and production; and food security and production. I raised those issues the first time I spoke in this Parliament, in the Queen’s Speech debate, knowing that they would be huge ones in the Parliament, not only locally in my area, but nationally and globally. Let me start, however, by discussing a cloud that has recently come over Anglesey: the announcement only last week by 2 Sisters Food Group that it intends to make up to 200 to 300 people redundant. I have written to the Secretary of State and am to have a meeting with him, for which I thank him, because these are important jobs.
Let me briefly outline the situation. Only two years ago, that company took on additional jobs, when they had been displaced from another factory closure. A lot of help and support was given, by the Welsh Government, the UK Government and the local authority, working with agencies, myself and other elected representatives. There was a change from a one-shift system to a two-shift system, and lots of financial and political support was involved. It is very disappointing that in just two years the company has decided to announce redundancies. I am working now, in a consultation period, with the trade unions. I hope we can stem those job losses, because the jobs are much needed in the food production industry, which is important in Wales and in the rest of the United Kingdom. I hope we will be able to work to minimise any job losses. Furthermore, I hope we will look forward and have a strategy for the food industry in Wales, and I will be working with the Secretary of State and the Welsh Government on that.
Let me again touch on the jobs issue. I am not making a partisan point when I say this, but there is no jobs miracle. As you will know, Mr Deputy Speaker, before I came into this House I ran a centre for the unemployed, and I worked closely with the long-term unemployed and the young unemployed. I very much welcome the fact that they have been given the opportunity to go into the work force. When I was an activist in the ’80s and ’90s, unemployment in my area was twice the national average. It is now below the national average, and that is a good thing. But, unfortunately, many of the jobs are now zero-hours contracts, part time and lack the permanency that people want. Some temporary contractors working in my constituency have been on a part-time contract for many years. That does not allow them to build up pension pots, and to get the credit facilities or mortgages enjoyed by permanent employees.
We need a proper strategy to examine how we can avoid this exploitation of short-term contracts and of zero-hours contracts, so that we can get the work force to contribute fully in society—so that they can contribute towards their own pensions, towards taxation and towards the local community. It is important that an incoming Government look at these issues seriously, and I am pleased that my party is looking at the zero-hours contracts, at increasing the minimum wage and at moving towards a living wage. Cross-party support is forming on the living wage, in the same way as it is now accepted that we have a minimum wage. I understand the argument about taking people out of taxation, but as I asked individuals who are on the minimum wage and could have the threshold raised: do they want to be trapped in low wages and not pay tax? The answer is no, they want to have an increase in their livelihoods and in their wages, so that, as I indicated, they contribute fully to society. I hope that we do that.
The two areas I want to concentrate predominantly on are energy and food production, as my area has a long reputation for both. It is known as the mother of Wales, because as a farming community we were able to feed large parts of Wales centuries ago when neighbouring kingdoms were fighting against each other and princes of Wales. We held off the Romans as well. So we were able to feed the Welsh nation, and I am proud of that. In recent years, we have been pioneering in energy production. We had the early—and now controversial—onshore wind farms in the ’80s and ’90s. I am in favour of them going out to sea, because of the sheer scale of them and because there is a better wind resource there. We should have wind farms of greater magnitude that produce more energy.
I am also very pro-nuclear, because we need the base load and because I believe nuclear to be safe energy production. I have lived in the county of Anglesey all my life and my father worked on the construction of the first power station. My peers in school—I left at 15—are still working at the Wylfa power station. They have senior roles and have enjoyed continuity of employment all those years. There are very few industries that can claim to offer a job for life. Energy and nuclear power is one sector that can make such a claim. The right hon. Member for Clwyd West (Mr Jones) mentioned wind farms and renewables, but I believe that we need a mix of energy. To meet demand at its peak and then to come down off that peak, we need to be able to switch something off. It is very difficult and expensive to switch off a nuclear power station or a gas power station, but easier to switch off some of the renewables, albeit with the tidal arrays that I hope we get in the future. Wind farms, too, are easy to deal with in that regard. We need to be able to switch off capacity at times, which is why we need a balance of power.
I have been a member of the Energy and Climate Change Committee, and we have had some very interesting debates in this Parliament. We have shed light on some of the downfalls in the energy market, which will, I think, improve things.
One area on which I wish to focus is the distribution and transmission of electricity. Companies, including National Grid, have monopolies in the regions, and we need to break them up, either by having not-for-profit organisations or competition within the distribution centre. Some 20% to 25% of the bills that we pay go to transmission and distribution—much more than the cost of green levies.
Food production is a very important industry.
On the point about distribution companies, does my hon. Friend think that companies such as Western Power Distribution should be interested in innovations such as the one by a company called Iviti in my constituency, which produces LED light bulbs that stay on after a power cut? As part of its social responsibility, perhaps the distribution company should look into distributing those light bulbs to vulnerable customers who might face power cuts and hardship.
My hon. Friend makes an important point. I talk about being pro-nuclear and pro-renewables, but I am also pro-energy efficiency. The more we can improve efficiency of energy consumption the better. The model to which he refers is an old proven technology and we should be improving it for the future.
Before I move on from energy, let me just say that I had the privilege of acting as host for my right hon. Friend the Member for Don Valley (Caroline Flint). We went to visit not only a number of projects, including a biomass plant on Anglesey, but an energy centre, where we met 17 and 19-year-old engineering apprentices. When we sat down with them around the table, we saw that they wanted exactly the same thing that our generation wanted, which is job security, and that is what they are getting. I am proud of the skills in that sector. It was the decision of the Leader of the Opposition when he was Energy Secretary to go ahead with some of these projects. I pay tribute to him for that work as we are now seeing the result, which is highly skilled and highly trained young people ready to take this country into the future.
On food and farming, I supported many of the things that the hon. Member for Ceredigion (Mr Williams) said. We should be lumping together food, farming and tourism in one big sector, because they are interlinked. The food that we produce locally and nationally could be consumed locally and nationally, as well as being exported. The farming industry has been through difficult periods, and I do not think that it can survive the vagaries of the market. There needs to be a proper food and farming plan at a Welsh Government level, a UK level and a European level. We are moving in that direction. It is important that dairy farmers have a dairy plan. Those of us who know about the dairy industry—the first job I ever had was as a farm boy milking cows in a parlour—understand that it is not possible to switch on and off from dairy farming and it is hard to diversify. People have to invest for a long time in the calves and heifers that go through to the milking stage. Support is what those dairy farmers need. I am working with colleagues across the House to ensure that there is a viable future for dairy farming in Wales. I am talking about the smaller farms as well as the larger farms across the United Kingdom.
On the tourism link, it is important that we have top-class assets and facilities in our area which people can come and visit, and that they have food and farming produce that has been procured and sourced locally. We can do the brand Anglesey and the brand Wales.
I finish off by saying that I am very proud of having an Anglesey day to showcase the county of Anglesey here in the House of Commons. It is our duty to show the best of what we have, and Wales has a lot to offer the rest of the United Kingdom and the rest of Europe. That is why we need an all-day Welsh debate, so that we can stand up, champion and bang the drum for Anglesey and Wales.
(10 years, 2 months ago)
Commons ChamberI am sure my hon. Friend will welcome the £2 billion for the NHS in England, which the Chancellor announced at the weekend. That money will go directly to the front line. Obviously, we want to see continued improvements at the Hereford hospital. There are pressures from people from Wales crossing the border and wanting to use services in England. That is why it is so important that the Welsh NHS has the improvements that we have been talking about. As to meetings and visits to my hon. Friend’s hospital, I will look very carefully at what we can do to help.
Q14. Cutting net migration to tens of thousands, reducing spending on welfare and, yes, eradicating the deficit by the end of this Parliament formed the triple crown of the Prime Minister’s promises to the British people. How does it feel as Prime Minister when you are once, twice, three times a failure?
I will tell the hon. Gentleman how it feels to lead a Government who have created 2 million private sector jobs. I will tell him how it feels to lead a Government who have turned round the British economy, and I will tell him how it feels to have an economy in Britain in which businesses right around the world want to invest. That is the record of this Government: recovering from the complete shambles and mess that the hon. Gentleman left when he was part of the previous Government.
(10 years, 3 months ago)
Commons ChamberThe hon. Gentleman raises an important issue. In recent Budgets, the Chancellor has set out important measures that will make a difference, such as capping the carbon floor price and dealing with the indirect costs of the EU emissions trading system and the renewables obligation.
9. What recent estimate he has made of the contribution of the creative industries to the economy in Wales.
I recently visited Cwmni Da in Caernarfon, which is a great example of how the creative industries make a vital contribution to the Welsh economy and the cultural life of Wales.
I welcome the Minister to his post. He is right that the creative industries are a growing and important part of the Welsh economy. Following the WOMEX conference last year, will he join me in campaigning for the BBC to bring the Radio 2 folk awards to Cardiff next year?
I am grateful to the hon. Gentleman. I will look positively at his suggestion and will happily meet him to discuss the matter further. He is right about the importance of the creative industries in Wales. He might be interested in the launch of the Cardiff internet exchange, which took place last week, and the launch of Cardiff local television.
(11 years, 2 months ago)
Commons ChamberOne solution to the problem raised by Conservative Members from constituencies near the border is to extend the Welsh border eastwards. Ludlow used to be the administrative capital of Wales—[Interruption]—as was Oswestry.
There are plenty of suggestions. If that is not within the powers of the Secretary of State, perhaps he could consider once again a more flexible approach to the level of bands of income tax under his proposals.
That is a very attractive proposition. In fact, Terfyn in Cheshire derives its name from terfyn, which means a border, so perhaps that is something that we should press. However, we have given careful consideration to this matter and believe that the lockstep proposal is the best way forward.
(12 years, 11 months ago)
Commons Chamber8. What plans her Department has to mark St David’s day.
Tonight my right hon. Friend the Prime Minister is holding a reception for St David’s day. Tomorrow the Welsh flag will be flying over No. 10, and I will be attending the Back-Bench St David’s day debate and welcoming Welsh children from the Dreams and Wishes charity to the House of Commons and Gwydyr house. Tomorrow I will also be attending a St David’s day dinner in London and a church service in the Crypt, at St Mary Undercroft. I presented the Prime Minister with daffodils from the national botanic garden of Wales yesterday, and Gwydyr house is full of daffodils.
This St David’s day will be tinged with some sadness, as Wales plays a memorial match in my constituency tonight in memory of Gary Speed, the Wales manager who died so tragically at the age of 42. Money will be raised for a charity called CALM—the Campaign Against Living Miserably—to help to prevent suicide among young men. Will the Secretary of State hold a collection in support of that charity at her St David’s day event?
I hope that the memorial match in the memory of Gary Speed goes extremely well and that a lot of money is raised for the charity. In answer to the hon. Gentleman’s question, I will come back to him and let him know, because I would like to ask the people who work in the Wales Office. We are having a charity called Dreams and Wishes come in on St David’s day tomorrow. That is what we are focusing on, but I will see what I can do for the hon. Gentleman. [Interruption.]
(13 years ago)
Commons ChamberThe right hon. Gentleman makes a very important point, which is quite correct. He will understand, I am sure, that these are early days in this unfortunate saga. All I can do is assure him that our Department is liaising closely with the Department for Business, Innovation and Skills to do all we can to ensure that those jobs, if possible, can be saved.
2. What recent discussions she has had with Ministers in the Welsh Government on inward investment in Wales.
I have had a range of meetings with Welsh Government Ministers and look forward to meeting the Welsh Government Minister for Business, Enterprise, Technology and Science on 6 February, when we plan to discuss, among other things, inward investment.
The right hon. Lady will know that RBS is blaming the lack of investors for its decision to pull the plug on a deal to save Peacocks, threatening thousands of jobs. My constituents cannot understand why they were expected to bail out RBS, but RBS is refusing to help them in their time of need, when their jobs are at risk. What is the right hon. Lady doing to talk to RBS about its responsibilities in this matter?
The moment I heard about Peacocks, I discussed it with the Secretary of State for Business, Innovation and Skills, and the Welsh Assembly Business Minister has spoken to the Minister of State, Department for Business, Innovation and Skills, the hon. Member for Hertford and Stortford (Mr Prisk). I have the greatest sympathy. I have shopped in Peacocks myself and I know how many jobs depend on it. It is important that we explore every possibility, but I am not going to stand at the Dispatch Box, as the hon. Gentleman knows, and make false promises. We will look at what we can do for Peacocks, but it will involve the Welsh Government, as he well knows.
(13 years, 2 months ago)
Commons ChamberI think I got my hon. Friend’s drift. I congratulate her on being a champion of the Cornish language. Like me, she will want to recognise and congratulate the BBC and S4C on reaching an agreement on the funding governance and accountability of S4C until 2017, thereby securing Welsh language broadcasting in Wales?
Anyone watching the BBC’s excellent sporting coverage this weekend might like to know that the odds on the right hon. Lady remaining Secretary of State have dropped from 8:1 to 2:1. Would she recommend that they have a flutter on that?
I would tell the hon. Gentleman not to bother wasting his money.