Welsh Affairs

Debate between Kevin Brennan and Mark Williams

Thursday 5th March 2015 Commons Chamber

[Mr Mark Williams (Ceredigion) (LD)]

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.

[Kevin Brennan]

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?

[Mr Williams]

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.