Oral Answers to Questions
Debate between Kevin Foster and Wayne David(5 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Chris Bryant (Rhondda) (Lab)
Wayne David (Caerphilly) (Lab)
The Parliamentary Under-Secretary of State for Wales (Kevin Foster)
We have regular discussions with the Welsh Government’s Minister for Economy and Transport on a range of matters, including infrastructure in Wales. We are committed to ensuring that Wales prospers on the back of a strong and resilient infrastructure base, supported through our modern industrial strategy and national infrastructure delivery plan.
Kevin Foster
I recognise the strength with which the hon. Gentleman has put forward his constituents’ case. Roads and highways are obviously in the devolved space, but I would certainly be more than happy to meet him to discuss what we can do to support his cause.
Wayne David
The European regional development fund has made a huge contribution to the development of infrastructure in Wales. Will the Minister give a commitment that resources from the new shared prosperity fund will be allocated on the basis of need and not through competition?
Kevin Foster
We will decide on the future of the UK shared prosperity fund, which I touched on earlier, through consultation and through the comprehensive spending review later this year. What would make a huge difference to roads in south Wales would be getting the M4 relief road back on track. If that was our decision, Wales would now be on the highway to the future; sadly, as it is a devolved one, it is now on the road to nowhere.
Wales: Regional Development Funding
Debate between Kevin Foster and Wayne David(5 years, 7 months ago)
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Kevin Foster
I thank the hon. Gentleman for his intervention. Our clear emphasis will be on ensuring that it works for local communities and delivers prosperity and growth across the nation. The consultation will set out our plans, and I am sure that he and other Members will be powerful advocates in ensuring that the fund works for their communities in the way they envisage.
I am conscious that many Members have raised the future of EU funding. In 2016, the Government guaranteed funding for UK organisations in receipt of EU funds where projects are agreed before the day the UK leaves the European Union. In July, the Government announced an extension to that guarantee, which will underwrite the UK’s allocation for structural and investment fund projects under this EU budget period to 2020 in the event of the UK leaving without a withdrawal agreement. That ensures that UK organisations, such as charities, businesses and universities, will continue to receive funding over a project’s lifetime if they successfully bid into EU-funded programmes before December 2020.
Our overall message is therefore business as usual. We want all places to continue to sign contracts while we still belong to these funds.
Kevin Foster
Not for the moment.
The December 2017 withdrawal agreement means that Wales will receive its full 2014 to 2020 allocation, because we recognise the importance of short-term certainty on funding. As we transition to longer term arrangements, we will of course ensure that all parts of the UK are treated fairly and that their circumstances are taken into account. We have promised, as I have already touched on, to engage the devolved Administrations as we develop the UK shared prosperity fund.
Kevin Foster
Given the time, I need to make progress.
I fully recognise the importance of EU funds to Wales. The guarantees set out by the UK Government show the importance that we place on those funds, as does the position that we have since reached with the EU on participating in the 2014 to 2020 EU programmes until closure. Under the terms of the withdrawal agreement, UK entities ripe to participate in EU programmes such as Horizon 2020 and Erasmus+ during the current multi-annual financial framework period will be unaffected by the UK’s withdrawal from the EU for the lifetime of the projects financed by the current multi-annual financial framework. UK-based organisations and people will be able to bid for funding and participate in and lead consortia in 2019 and 2020.
In terms of our future participation, the joint political declaration published in November sets out a basis for co-operation in European Union programmes, subject to the conditions set out in the corresponding Union instruments, such as in science and innovation, culture and education, development and defence capabilities, civil protection and space. Of course, the UK would make financial contributions were we to participate in any EU programmes.
On the specific point made about Barnettisation and potential agricultural funding, direct payments will continue to be made on the same basis in 2019 and 2020. The Government have already confirmed that overall funding for UK farm support will be protected in cash terms until the end of the Parliament in 2022, providing more certainty than any other EU member state. Crucially, the Government are clear that they will not simply apply the Barnett formula to changes in DEFRA funding beyond this Parliament. That means that farmers in Wales, Scotland and Northern Ireland will not just be allocated funding according to the population size of each nation, which in each case is significantly smaller than that of England.
In the beginning, EU funding was seen as something of a panacea for all Wales’s ills and as an opportunity that needed to be grasped with both hands. However, we should question whether, given the way that money was spent, it has reached those communities. We can all think of examples of projects that did not succeed, such as Techniums, the Ebbw Vale funicular railway and the All Wales Ethnic Minority Association.
I hear the passion with which many Members representing their communities have articulated what they see as the benefits of EU funding. However, we need to contrast that with the fact that some of the areas involved returned some of the highest leave votes. That was not based on whether a consultation was going to take place, but on what people perceived in their areas. It is a challenge for us as politicians to ensure that people see the benefit of what is done in their area.
As I set out at the beginning of my speech, the UK’s exit from the EU provides us with a considerable opportunity to reconsider how we invest our money in a way that helps to reduce inequality across our four nations. The current system is bureaucratic, inefficient and difficult to access. With the UK shared prosperity fund, we would have the opportunity to design a fund that works in the interests of Wales and the UK as a whole. I am clear that we will do that while respecting the devolution settlements and continuing to engage with the devolved Administrations, as we have successfully and productively done and continue to do on growth deals, and as I have done personally since my appointment, in the shared interests of those we serve.
Ultimately, the Government want to see an economically strong Wales, within a prosperous and strengthening United Kingdom. Working alongside the Welsh Government, through a future shared prosperity fund and other initiatives such as the growth deal, we can ensure that that becomes a reality.