St David’s Day

Debate between Kevin Brennan and Albert Owen

Thursday 28th February 2019 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

It is a great pleasure, as always, to speak in this debate and I congratulate my hon. Friend the Member for Gower (Tonia Antoniazzi) on securing it. I have to say to Government Front Benchers that, after last year’s example of the Government taking the lead, I thought that we would be returning to where we were for many years, with the Government taking Wales day seriously and Welsh issues seriously, so that we would not have to make a bid to the Backbench Business Committee.

I want to say—as many have in the last few days; I make no apologies for saying it now—how great the victory on Saturday was by Wales against England in rugby. It united the country of Wales in a way we have not seen for a long time. The tactics were perfect; I wish the Prime Minister would act more like Warren Gatling than Eddie Jones when it comes to Brexit and mind games, and actually deliver.

[Kevin Brennan]

My hon. Friend is right; that victory did unite the country. Does he wonder, as I do, whether it united the Ministers in the Wales Office? It would be interesting to know who the Under-Secretary of State, the hon. Member for Selby and Ainsty (Nigel Adams), was supporting last Saturday.

[Albert Owen]

I will give Ministers the opportunity to speak for themselves, but I have had compliments from both of them on the way Wales played on Saturday; it absolutely united them.

I want to talk about energy, the north Wales economy and indeed Brexit, but I want to start by paying tribute to my late good friend Paul Flynn. As chairman of the Welsh parliamentary Labour party, I officially send our condolences to Sam and her family, and their friends from the Newport area, many of whom I know and who have told me great stories. Paul was a unique man; he was a great campaigner, as many people have said. I remember my other great late friend Rhodri Morgan—he was also of the class of ’87—saying to me, “If you haven’t had an argument with Paul, you’ve never really known Paul.” That was his nature; he was very astute at putting his arguments and not afraid to hold to his opinions. Those are my memories of Paul, and I will miss him very dearly.

The Secretary of State and others on the Treasury Bench will know that I have taken an interest in energy for many years, and I have taken this subject up because I believe that Wales has the great potential to be a world leader in the low-carbon economy and to lead the way on many projects. When I talk about a mixed rich energy diversity I am talking about renewables, nuclear and also energy efficiency. The innovation can come from Wales; we have a skill base there, we have natural resources and we have the potential to be a world leader.

I have written a booklet—you may have a copy after this debate, Madam Deputy Speaker—on resetting the energy button, because over the last few years we have not focused attention as we should. Prior to 2009 there was a great consensus across the House on a way forward and how we would reduce carbon emissions. I accept that the great world recession had an impact on that, but there has been disjointed policy from the UK Government since then. We have had reform Bills—electricity reform, market reform, retail reform—but we have not had a coherent policy. Wales is suffering as a consequence of that, because many major projects were earmarked for Wales, with lots of time and effort from the private sector, the Welsh Government and the UK Government, yet the end product has not materialised as it should have.

I have argued for many years that we need a proper formula, particularly for first-of-a-kind energy projects, for example in marine technology, because the auction system—the contracts for difference—that the Government have put in place does not help new forms of technology break through. We have great tidal resources around the coast of the UK and Wales—the west coast has some of the best tidal resources—and we need to work together to make things happen.

The Secretary of State has been very good with me in recent weeks and we are working together to get a new formula, but now we want not only a formula but an action plan. We want to be able to deliver on these projects, because we need to get the carbon emissions down and to meet our targets. We will not do that by prevaricating or by blaming the private sector for its financing. We need proper Government investment, in financial as well as policy terms. We should not leave this to the auctions; we need coherent planning.

I also want to talk about the job losses that we have seen in north Wales in recent times. I mentioned this yesterday, and I am grateful for the response that I received from the Under-Secretary of State for Wales, the hon. Member for Selby and Ainsty (Nigel Adams). Rahau Plastics in my constituency town of Amlwch is going through a consultation programme and could lose 104 jobs. It is an international company. It is a family company that is based predominantly in Bavaria, but it has global reach. It has been in Amlwch for 40 years, but it is consolidating the work that is done at that plant in central Europe.

There is a pattern developing, whereby international companies that have their bases across continental Europe and the United Kingdom are consolidating their workforces and their businesses in the European Union, because they know that the single market delivers. They are very polite about it and say that this is not simply down to Brexit, but I say to the Secretary of State that we cannot have companies based in countries such as Japan, which have direct agreements with the European Union, pulling out of Britain like this. Our workforce, our commitment and our end product are all good, but there is a fault, and that fault is the uncertainty of Brexit, pure and simple.

I want to move on to the North Wales growth bid. I congratulate the Secretary of State on working with the Welsh Government and local government on this important issue, but I want to say to him directly that there should be greater input by north Wales MPs. Simply leaving it to the councils is not good enough, because their resources are being cut and they have different responsibilities. As north Wales MPs, we have a strong mandate here and we want to work with the Treasury, the Government, the Welsh Government and local government to make this deal happen. This is not about being top-down; it is about working in partnership to deliver for the people of north Wales.

Following the suspension of the Wylfa Newydd power station, many of the projects are now in jeopardy. The Secretary of State and the Secretary of State for Business, Energy and Industrial Strategy are joining us for a meeting next week to discuss this. It is hugely important that the gap created by the suspension of that £20 billion project should be filled. It could be filled with quality jobs in renewable energy, in improving our rail infrastructure and in many more projects. I want to work with the Secretary of State in focusing on that, but I want a commitment from him that he will fight our corner in Whitehall and that we will get more money as a consequence of that suspended project. The private investment that has been lost needs to be topped up, and that could be done through the mechanism of the North Wales growth bid. The Welsh Economy and Transport Minister, Ken Skates, has said that he would match any moneys that come from the United Kingdom Government. We want to see action from this Government, not just warm words.

I understand the time constraint on this debate, but I want to mention Brexit very briefly. I have been arguing in this House for more than two years about the Irish dimension to Brexit and its effect on the port at Holyhead. The former Secretary of State just said, “Don’t worry, it will be simple”, but we are coming up to the eleventh hour and we are still arguing about the Irish backstop. If we treat one part of the United Kingdom—that is, Northern Ireland—differently and allow it to have alignment with the single market and the customs union, that will have an impact on Welsh ports as well as on ports in Scotland and England. Those countries will lose out as a consequence.

I want this message to go out from Wales to the Prime Minister: look at what is happening in Wales, listen to the Welsh Assembly and to Welsh MPs, do not be blinkered and do not pander to one side of your party. Start speaking up for Wales, because it is an integral part of the United Kingdom. We are pioneers and leaders, and I am proud to speak in this debate.

Centenary of the Armistice

Debate between Kevin Brennan and Albert Owen

Tuesday 6th November 2018 Commons Chamber

[Kevin Brennan]

My hon. Friend will also be there, so I can supply the right hon. Member for Broxtowe (Anna Soubry) with some first-rate people in support.

I had better press on, Mr Speaker, before you call us all back to order. The following year saw the battle of Passchendaele, which carries particular weight in Welsh cultural memory, as my hon. Friends the Members for Llanelli and for Ynys Môn (Albert Owen), who is sitting at the back, will know. We commemorated the battle’s centenary last year with a debate in this Chamber. Every village in Wales was affected by the battle, and 20,000 first language Welsh-speaking soldiers alone were killed at Passchendaele.

1917 was the year of Eisteddfod y Gadair Ddu, the Eisteddfod of the black chair. Some hon. Members will know that the Eisteddfod is the annual Welsh-language cultural festival, with poetry, dancing and singing. That year, Ellis Humphrey Evans, under the now-famous pseudonym, Hedd Wyn, was judged as the winner of the chair at the Eisteddfod, the highest honour available in Welsh culture, which is awarded to the best poet writing in traditional strict meter. However, when the winner’s pseudonym was called in the traditional ceremony at the Eisteddfod, no one stood up in the audience to reveal themselves as the triumphant poet. It was then announced that the winning bard had been killed in battle six weeks prior. Hedd Wyn had been one of 4,000 men killed on a single morning when the Royal Welch Fusiliers went over the top in the battle of Pilckem Ridge. The poet from Trawsfynydd has become the subject of poems and history lessons in classrooms across Wales, and even of an Oscar-nominated feature film.

That poignant story of Hedd Wyn captured the mourning of a nation. Stories such as these help us to remember the humanity of each individual who lost their life, and we have heard many such stories this evening. Each one was a son, a daughter, a loved one who was missed by someone at home. As we have seen today, they are still missed by their descendants in this House and across the country.

In my constituency, in 1917, the Women’s Land Army was formed; 20,000 women across the UK enlisted to work in places such as Green Farm in the Ely area of my constituency, which is now a council housing estate. As a farm, it was run predominantly by female farmhands during the war. One of the workers, Agnes Greatorex, left domestic service to work on the farm. She said:

“Every morning, we would get up at five o’clock and milk a hundred cows. We would then take the milk to Glan Ely Hospital.”

That is where the soldiers were kept. I am proud, as I am sure we all are, of the efforts of Agnes and so many women across the country; we have heard about those in today’s debate. In rightly commemorating the enfranchisement of some women in 1918, let us not forget that working-class women such as Agnes, or my grandmother, Gwenllian Evans, did not get the vote until nearly a decade later.

[Albert Owen]

My hon. Friend is talking about the effort of women during the great war. It is worth recognising that the Women’s Institute was founded during this period; as Mr Speaker knows, we held the centenary event in my constituency. These women were the stars of the home front as well, and they are worth mentioning.

Wales Bill

Debate between Kevin Brennan and Albert Owen

Tuesday 14th June 2016 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

I congratulate the hon. Member for Monmouth (David T. C. Davies) on his speech. I agree with him on one thing: the need for an English Parliament to balance things out. I am sure that that debate will come forward and that he and I will be on the same side for once.

I congratulate the Government on pausing the Bill, which was the right thing to do because they got it wrong the first time round. The St David’s day agreement was not a major declaration in Welsh history—it will not be remembered as that—but it did move us in the right direction, and the Government did listen. I pay tribute to the Welsh Affairs Committee for its pre-legislative scrutiny because that highlighted some of the draft Bill’s weaknesses. I am sorry that the process took 12 months and it could not get on to other things, but it is important that before we bring forward major legislation in the House of Commons, we have the pre-legislative scrutiny for which Members—two of them, my hon. Friends the Members for Wrexham (Ian C. Lucas) and for Cardiff West (Kevin Brennan), are sitting here to my left—fought very hard. Before, Bills were rushed through without the necessary scrutiny.

I very much welcome the fact that the Bill has now been changed, with major parts of it dropped, not least, as my hon. Friend the Member for Llanelli (Nia Griffith) said, the necessity test, which I felt was a step too far. Rather than a measure for moving forward with devolution, it looked a bit like the old secretary-general giving powers and the nod to what the Welsh Government could do, which did not sit very comfortably. I look forward to improving the Bill and, by doing so, we should act more as visionaries than victims. We have had devolution for a number of years and it has done a lot of good things. The additional powers will empower the Welsh Assembly to do more good things for the people of Wales, moving forward and taking the people with it. That is the idea of devolution.

I am a long-standing pro-devolutionist and I have fought three referendums—in 1979, 1997, and 2011. The score in those referendums was exactly the same as that for Wales on Sunday—a 2-1 victory. I am not so confident about the outcome of the referendum later this month, but I hope to be on the winning remain side. To me, devolution is about decentralisation and greater democracy, or it is about nothing.

The UK state has changed considerably since 1997. It is more open, democratic and decentralised. I congratulate all parties on playing their part in making the United Kingdom a more decentralised and democratic state. I also welcome the support from many Conservatives. The hon. Member for Monmouth, a former Member of the Welsh Assembly, has changed his stance on devolution, and the right hon. Member for Clwyd West (Mr Jones) also used to be against it. It is important that we bring people with us as we move forward positively.

[Kevin Brennan]

Does my hon. Friend agree that at the conclusion of the passage of the Bill and after the EU referendum, the time will genuinely have arrived for a constitutional convention to consider the future of the United Kingdom and its constitution, particularly with regard to how the nations of the United Kingdom and their devolved institutions relate to each other?

[Albert Owen]

I am grateful to my hon. Friend, who makes a very important point. There has to be a time limit if we are going to have a constitutional convention, because we do not just want academics producing papers and having long arguments. We should draw on the experiences of the British state as it is today, with the degree of decentralisation that has already taken place, and look at the English question. I genuinely agree with the hon. Member for Monmouth that that needs to be looked at in a positive way. I welcome the extension of powers to the regions and cities in England.

I talked about the many people who have moved from being against devolution to now being very active pro-devolutionists. Many in this House, including those in the two nationalist parties, do not think we are going far enough or quick enough. I understand and respect that, but as a pro-devolutionist I want the devolution settlements to work for Wales and for the UK. I want us to move forward in a positive way, bringing the people of Wales with us. Rather than just having ideologies, we must have practical devolution that works. We are moving forward, and this Bill helps in many ways in doing that. It is no good having devolution that just devolves powers from London to Belfast, Edinburgh or Cardiff—I want it to be spread within the nations and within the rest of the United Kingdom. I have seen some bad examples in this regard. When I served on the Welsh Affairs Committee and we went up to Scotland, we saw a lot of centralising of services. I worry about that. As a real devolutionist, I think we need better devolution within the devolved countries, as well as England, to get the balance right. I want to see this Bill improved, but I say that as someone who is an advocate of practical devolution. I welcome the devolving of more powers.

I am not going to deal with the detail of the constitutional issues, but I do want to talk about the practical implications of devolving powers in the context of ports, transport, and energy. I have a specific interest in ports, as the Member for Ynys Môn, which has a principal port that has grown. I have seen how the flaws in the devolution settlement have hampered some of the development of ports. I recall a new berth being built in the early 2000s—I think it was 2003-04—when we had to get special consent from the Department for Transport, the Welsh Office and the Welsh Government, with one saying that it was not possible to build within the port. The new provisions clarify that. When the Welsh Government take over responsibility for ports, they will be able to develop them in a practical way, with the local authority doing the planning as well. I welcome that.

As a former member of the Energy and Climate Committee, I welcome the move towards devolving powers on fracking and on petroleum extraction on land, and, I think, if I am reading the Bill correctly, at sea in territorial waters. Perhaps the Minister could clarify that when he winds up. It is important for the Welsh Government to have those consents in the same way as they have consents for offshore wind and other things. Wales could be really radical in low-carbon energy and the low-carbon economy if it has the tools to do so. I disagree with my hon. Friend the Member for Newport West (Paul Flynn) on nuclear power. I think that we need to have baseload low carbon alongside renewable energies. We need to have the proper mix, and Wales can be a leader in low-carbon energy. I welcome the consent for power stations up to 350 MW. That is a very good step forward.

I am concerned, however, about the grid connections. The Bill gives consent to the Welsh Government in planning and various other areas, but it does so only for the distribution grid, not the national grid. The measures relate to developments under 132 kV. I would like some clarification on that, because in my area and many other areas of Wales, National Grid projects are going ahead that will have a great impact on local communities. The Welsh Government and local government are best placed to look at those, rather than National Grid, which is an organisation that looks to its own private interests.

Enterprise Bill [Lords]

Debate between Kevin Brennan and Albert Owen

Tuesday 2nd February 2016 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

It is a pleasure to follow the hon. Member for Stratford-on-Avon (Nadhim Zahawi). This is a big, clunky Bill that covers four Departments, but today we have the captain of the ship, the Minister for Small Business, Industry and Enterprise, to take it through on her own. She is the sole survivor on the Government Front Bench. I hope that she will be a listening Minister, and will show that when she responds to the debate.

This is not an inspiring Bill, as many have said, but it does support apprentices, and I welcome that. The provisions in part 7 on industrial development will assist the roll-out of telecommunications and broadband to reflect the economic realities of the 21st century. My main issue is with part 8, which covers the restrictions on exit payments.

On apprentices, I am sure that we all agree that training and providing young people with skills and workplace experience is a good thing, but it is vital that we have real training for real apprentices, and that we have real skills for the future. We should not consider the targets alone; we should consider not just the quantity but the quality of apprenticeship schemes.

Part 4 applies mainly to apprenticeships in England, but some provisions apply to England and Wales. Indeed, the Employment and Training Act 1973 applies to Scotland, Northern Ireland and Wales. Contracts for apprenticeships are contracts for employment as defined in the Employment Rights Act 1996, so conditions for apprentices are UK-wide. English votes for English law might apply to the Bill, so I want clarification from the Minister on that point. I know that now is not the time to go over the anomalies of EVEL, but it is important that there is clarification because of the cross-border issues. People in Wales might have apprenticeships with companies in England, and such provisions would therefore apply to them. However, it is good that the Government are valuing apprenticeships and I support them on that.

The provisions on industrial development allow financial assistance of £10 million to £30 million to be given to projects under section 8 of the Industrial Development Act 1982 without a resolution from the House of Commons. As my hon. Friend the Member for Wallasey (Ms Eagle) said, that is a good thing, but a very small thing. Again, I want clarification from the Minister—who is concentrating, I am sure—that this applies to Welsh Ministers. If it is a UK project in Wales, will Welsh Ministers have the resources to roll out broadband in Wales?

I welcome these provisions, which are designed to get telecommunications rolled out across the United Kingdom. I have long been an advocate of universal broadband and I welcome the Prime Minister and the Government’s U-turn on universal coverage. From time to time—[Interruption.] The Minister says “What?”, but if she had listened to Department for Culture, Media and Sport Ministers she would have known that they were dead against it up until Christmas, and that they have now changed their minds. I hope that roll-out will now happen. I would like a pilot scheme on the Isle of Anglesey. It is an ideal place to have it: an island community on the periphery of this country. If it works there, it can be rolled out across the rest of the United Kingdom.

The Bill will cap exit payments, and that is important. The proposal is designed for city hall chief executives, but the hon. Member for Stratford-on-Avon (Nadhim Zahawi) was wrong to say that it will apply just to fat cats. Nurses are not fat cats, and workers on nuclear installations in my constituency are not fat cats. We need to look at this issue.

The Treasury has the power to restrict the public sector workers covered by this measure. I would add to the list of exclusions, which already includes employees of the Royal Bank of Scotland, the Magnox employees in my constituency, who do difficult, dangerous nuclear decommissioning work. They have been caught up in this because the ONS deems them to be in the public sector. The Secretary of State said, “We don’t listen to the ONS.” I would ask the Government to look at exemptions for Magnox workers. There are 23 constituencies that have Magnox estate, with Magnox workers, in them—14 are Conservative, five are Labour, three are Scottish National party and one is Plaid Cymru, so this is not a partisan trade union issue. This is indeed important.

These workers feel let down. One of the 120 constituents who have written to me said:

“To retain highly skilled workers in the nuclear sector, employees were promised that their contractual employment and pension arrangements would be safeguarded”.

If the Bill passes in its present form and does not exempt Magnox workers, they will be unfairly penalised. I think that that is an unintended consequence of the Bill, which is, as I said, intended to get the so-called fat cats. However, I am talking about decent, hard-working men and women on the Magnox estate who have been in the sector for a long time. When they negotiated their wages and their terms and conditions, they would often forgo wage increases to better their pension pots. They feel let down that the Government are looking to take away their conditions of service.

[Kevin Brennan]

Is it not also important to note not just that these workers should be classified by the ONS as being in the private sector, but that they are in fact private sector workers, yet they are being caught up in this Bill very unfairly?

[Albert Owen]

Yes, the Government recently put the estate out to tender, and it was won by a private company. Although, technically, these are Magnox workers, they work for various private companies in the decommissioning sector. I do think that this is an unintended consequence.

I ask the Minister to talk with her Treasury colleagues about this issue to get an exemption. Leaving this to mandarins in the Treasury is not good enough. Magnox workers feel let down by the Government, and the Government can and should act to exempt them from the Bill. I repeat: they are not fat cats, but decent workers.

If I had more time, I could talk about the Green Investment Bank, which I supported under the last Government. I worry about its privatisation, and my concerns about moving it to the private sector are very real.

I am surprised to see Sunday trading as part of this process. We should have a proper debate about the issue, and it should have been in the Bill so that we could see exactly what the proposals entail. The public do not want changes, although some businesses do, and I understand that. However, I think we have the balance right as it stands now on Sunday trading, and that is why I oppose changes to leave decisions on Sunday trading to individual areas. We should keep Sunday special—that is what the House agreed when it had the opportunity to have a full debate, but it has been denied that opportunity now.

Let us get those exemptions for workers, let us support apprentices and let us roll out broadband through grants.

Welsh Affairs

Debate between Kevin Brennan and Albert Owen

Thursday 5th March 2015 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

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.

[Kevin Brennan]

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.

[Albert Owen]

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.

Personal Independence Payments (Wales)

Debate between Kevin Brennan and Albert Owen

Wednesday 9th April 2014 Westminster Hall

[Kevin Brennan]

Good, but I am just giving the Minister that warning not to go through the history of the benefit but, yes, to deal with his responsibility, who is responsible—

[Albert Owen (in the Chair)]

Order. Mark Tami.

Money Transfer Accounts and Remittance Sector

Debate between Kevin Brennan and Albert Owen

Wednesday 22nd January 2014 Westminster Hall

[Kevin Brennan]

If I keep taking interventions, I fear that my comments will become less fresh and novel to listeners because my hon. Friends, with their expertise on this matter, are anticipating many of my points. Nevertheless, I thank my hon. Friend for what he said.

Sadly, following the withdrawal of banking services by Barclays, my constituent, Mr Anwar Ali, had to run down his business severely, and I understand that if he is unable to find a solution to this banking problem, the business may have to close. It is one thing for large banks to refuse to lend to small businesses—we all know about that—but it is another to deny to legitimate, law-abiding small businesses the basic service of a bank account. The banks casually say that they are making a commercial decision, but to small businesses it is a commercial death sentence. Let me remind hon. Members of the importance of such remittances, especially to developing countries.

According to a United Nations Conference on Trade and Development report in 2012, in 48 of the least developed countries, remittance receipts climbed from £3.5 billion in 1990 to more than £27 billion in 2011—that figure might be much higher. In Somalia alone, the authorities said in 2012 that around one third of the country’s GDP—$2 billion—came through small money transfer agencies, and that 40% of people in Somalia depended on remittance flows.

A major multinational bank, which in recent years was heavily fined for wrongdoing, is operating in a market dominated by a small number of players of its kind and has withdrawn, mainly from small businesses, a service vital to their existence and crucial to some of the most vulnerable people in the world. It is difficult to get to the bottom of exactly why that has happened, because it has not made its reasons clear. Are they commercial reasons, as it blithely says, or are they fears about terrorism and money laundering? There is a lack of clarity about the reasons.

Anthony Jenkins, the chief executive officer of Barclays, said that it was stopping offering bank services to such business because they

“don't have the proper checks in place to spot criminal activity and could unwittingly be facilitating money laundering and finance terrorism”.

In a letter to Dahabshiil, which is one of the larger payment firms and is located, I believe, in the constituency of my hon. Friend the Member for Bethnal Green and Bow, Barclays said that the decision was

“not a negative reflection of your anti-money laundering standards, nor a belief that your business has unwittingly been a conduit for financial crime. It is, however, a commercial decision that we have taken due to the risks of the sector”.

Perhaps the Minister can explain—I know he talks to these big banks—what he thinks is behind the fact that every single major UK bank refuses to provide banking services to the sector, effectively financially excluding the firms, without considering each of them on its merits. Does he believe that that is purely commercial coincidence, or is it—[Interruption.] I wonder whether those in the civil service Box would stop talking while I am addressing the Chamber.

Does the Minister believe that that situation is a commercial coincidence, or is it another aspect of the overall lack of competition in the banking sector that the Government are failing to address? What can he tell us about the role of the National Crime Agency in this matter? In effect, the uncompetitive major banks have erected a complete barrier to the financial sector for some of its smallest members. Does the Minister think that is acceptable?

Dahabshiil was able to win an injunction against Barclays in the courts in October, so its account remains open for the time being, at least. Unfortunately, however, many other firms, including the one in my constituency, have not benefited from the development, because their accounts have already been closed by Barclays. Does the Minister believe that Barclays should offer to reopen the accounts that it closed before the court’s decision so that the account holders are able to carry on their business until the case is finally settled? Does he agree that that would be an entirely reasonable thing to do? It would allow businesses such as the one in my constituency to get on with the business that they were doing perfectly legitimately and legally beforehand so that money transfers could take place. Will he call on Barclays to reopen those accounts until the court decision is made? I understand that so far Barclays has refused to reopen those accounts, so I hope that the Minister will condemn that.

I pointed out in the 2013 debate that there seems to be a different set of rules for large banks and financial institutions, such as Barclays and Western Union, which stand to benefit from the situation. It has been proved that Western Union helped to facilitate money laundering in Mexico—it paid a fine to the Arizona state authorities in relation to that—yet it stands to inherit a lot of the business of small firms against which nothing has been proved. In recent years, almost all the large banks and institutions have been found guilty, in one way or another, of financial misdemeanours, and they have sometimes been fined—[Interruption.] I wonder whether I could ask you, Mr Owen, to appeal that those in the civil service Box do not interrupt the debate.

[Albert Owen (in the Chair)]

I am listening intently to the hon. Gentleman, who is making a very interesting contribution. Everybody is very quiet, so any noise that is heard is magnified. I ask that everyone in the room is courteous to the Member who is speaking.

[Kevin Brennan]

It is unfortunate that sound carries, Mr Owen, but it is distracting, so I am grateful for your assistance.

Those large banks and institutions not only have been fined, but have been bailed out by ordinary taxpayers to the tune of billions of pounds to stop them failing as a result of their greed. Their reward for that malfeasance has been a handout from Governments, yet these small businesses, against which much has been insinuated but nothing actually proved, have been squashed by the big banks’ refusal to allow them the facilities that they need to survive, effectively denying them the air that they need to breathe as businesses. That is an intolerable abuse, so the Government should be acting with the utmost urgency to fix it.

So far the Government have taken some steps, especially in relation to Somalia. In September they announced an action group on cross-border remittances, before announcing its terms of reference in December. However, four months after the action group was set up, why—to my knowledge, unless the Minister is going to make an announcement today—has no chair of the group been appointed and why have no meetings taken place? I understand that, as a direct result of today’s debate, a date has finally been set for the group’s first meeting, but the record so far smacks more of inaction than action. Will he tell us today who is to chair the group, and will he confirm when it will meet? We all recognise the danger of terrorism, but why has there not been more focus on helping such remittance businesses to avoid risks, rather than shutting them down when there is no evidence of wrongdoing?

Food Banks (Wales)

Debate between Kevin Brennan and Albert Owen

Tuesday 12th February 2013 Westminster Hall

[Kevin Brennan]

The hon. Gentleman is absolutely right, and I am aware of that fact, but he will find that families spend their money on things that do attract VAT, which has a direct impact on their disposable income and, therefore, on their ability to buy food.

[Albert Owen (Ynys Môn) (Lab)]

I congratulate my hon. Friend on securing this important debate. Visitors to food banks in my constituency tell me that, because they are paying VAT on other things, particularly on peripheral items such as fuel, they have less money to spend on food. That is the reason why they come into food banks for the first time. Those people are in work and often work long hours.

[Kevin Brennan]

Yes, indeed. That is a continuing process. The consumer prices index figures were released today. CPI is 2.7%, which is 1.2 percentage points above rises in income for people in work. There is an impact on everyone, including people in work. As we know, as VAT is a regressive tax, it has the greatest impact on those on the lowest incomes. Also, because their marginal propensity to consume is much higher than that of people on higher incomes, VAT is a particularly hard tax on them.

Some 90% of the food in food banks is donated, mainly by the public via supermarkets, Churches, community centres, schools and other organisations. I pay tribute to the efforts of food banks, many of which are run by the Trussell Trust, including the one in Ely in my constituency, which I have visited. They are intended as a crisis intervention for families in need. As I said in response to an intervention, the problem is not what food banks do but the scale on which they must now do it.

Food goes to distribution centres, where food bank volunteers gather, weigh, account for and issue the food. Food is issued only to recipients with vouchers, and vouchers are issued by front-line service officers trained in the assessment of need. Issuing organisations include, among others, citizens advice bureaux, Jobcentre Plus, GP surgeries, social services, housing officers and now, as I said earlier, Members of Parliament and, I suspect, Welsh Assembly Members, too.

A voucher gives just over three days’ worth of food, and vouchers are typically issued in batches of three. As we heard, the trust operates 23 food banks across Wales, nine of which opened in the last year, and four more are expected to open in Wales by Easter this year. There are now more than 270 food banks across the UK. In 2011, some 7,173 adults and 4,038 children in Wales used a food bank, and in 2012, the numbers rose to 18,721 adults and 10,328 children. The trust forecasts that the number of people relying on food banks in Wales will rise to 40,000 next year.

The trust collates information about the people using food banks. The consistent main reason cited for using a food bank, accounting for between 40% and 45% of usage, is benefit changes and delays in benefit payments. About one quarter of usage is accounted for by low-income families, and about one tenth by debt. As we have heard, food bank usage has exploded over the past two to three years. It is sad but typical that the Prime Minister recently tried to suggest that food banks expanded by a greater amount under the last Government than under this one; that abuse of statistics was skewered by Channel 4’s feature, “FactCheck”, which I recommend to hon. Members.

The trust forecasts that this year, 250,000 people across the UK will use a food bank. Hundreds of thousands of Welsh families face a cost of living crisis worsened by the Government’s policies, including welfare changes that are likely to make the crisis even worse. The Welfare Up-rating Bill alone will hit 400,000 low and middle-income households in Wales, including 170,000 families in Wales who currently receive working tax credits. It is estimated that 140,000 people in Wales will be worse off under the Government’s change to universal credit and 40,000 will be hit by the bedroom tax; I know that hon. Members are already getting a lot of traffic in their surgeries about that issue.

The Office for Budget Responsibility has shown that between 2010 and 2013, inflation will have risen by 16%, whereas average earnings will have risen by just half that, or 8%. The TUC estimates that four-year wage stagnation will cost the average worker £6,000. Wales has some of the highest energy bills in the UK, and more families are having to choose between heating and eating. As I said, the VAT hike alone added £450 a year to average household bills. Low economic growth has created fewer opportunities, and unemployment is forecast to rise in the next two years. Public sector job losses are forecast to reach 1 million by 2017. Meanwhile, in April, the Government will give more than 8,000 millionaires an average tax cut of £107,000, and the top 4,000 earners in Wales will benefit from a cut in the additional rate of income tax.

I have a few questions that I hope the Minister will answer in his response. What does he think best explains the explosion in food bank use in Wales? Is it the cost of living crisis facing Welsh families, or the notion that more people have suddenly decided that they want a bit of extra food, to quote No. 10? On the “Politics Show” this weekend, the Welsh Office Minister in the House of Lords, Baroness Randerson, said that the Government are reducing the deficit in the fairest possible way. What exactly is fair about the bedroom tax, which will hit 40,000 people in Wales while taxes are cut for millionaires? What impact does the Minister think the Welfare Up-rating Bill will have on the number of people in Wales relying on food banks? Has he made any estimate of that?

Does the Minister agree that the growing number of food banks in Wales is a symptom of the cost of living crisis facing Welsh families? Does he accept that the Government’s failure to get the economy moving is likely to have led more people to rely on food banks? What does he think the expansion of food bank usage in Wales and across the UK tells us about the success or otherwise of the Government’s policies? Does he think that the number of people in Wales who rely on food banks is likely to rise or fall over the next two years? I hope that he has made some estimate in preparation for this debate.

We never thought to see the return of the charity handout as a mass means of feeding the poor in Wales. Is the Minister proud of his Government’s big society, or ashamed of its small-minded demonisation of the poor?