(6 years, 1 month ago)
Commons ChamberIt is a pleasure to respond to this important debate. I think that we have had 12 passionate speeches on this matter. [Interruption.] I thank the right hon. Member for North Durham (Mr Jones).
Although we all agree about the importance of the future of our shipbuilding sector, there is clearly a differential between my views and those of the Ministry of Defence, and the views of many Opposition Members. However, I am willing to recognise completely openly the commitment of those who have spoken in this debate to our defence sector, the defence industry and jobs within that industry.
Before I go on to my detailed notes, I want quickly to say two things. I have been asked to be short in my response because of a football match that is going on this evening—although, as a Welshman, I am quite happy to miss kick-off.
I assure the Minister that the rest of us are not—come on!
I just want to place on the record a clarification of the comments made by the Under-Secretary of State for Defence, my right hon. Friend the Member for Bournemouth East (Mr Ellwood). He was correct in saying that UK companies were involved in the MARS tanker competition and procurement process, but Opposition Members are also correct in saying that there was no British company involved in a final bid. I hope that that clarifies the point of order made by the hon. Member for Caerphilly (Wayne David).
I welcome the fact that the shadow Secretary of State has brought this debate forward. The comments made by the hon. Member for Glasgow South (Stewart Malcolm McDonald) were also very interesting, and there is no doubt that the team from Glasgow have very much argued the case for their city on this issue. I also welcome the speeches made by the right hon. Member for North Durham, the hon. Members for Dunfermline and West Fife (Douglas Chapman), for Barrow and Furness (John Woodcock) and for Glasgow South West (Chris Stephens), and of course my hon. Friend the Member for Torbay (Kevin Foster), who made an important speech highlighting the fact that we have to understand the context in which these decisions are being made.
The truth of the matter is that we did recommend a shipbuilding strategy and we commissioned a report from Sir John Parker. We have accepted all the recommendations of that report, and it is important to highlight that we have done that in full. The crux of this issue and of this debate may come down to the comments made by the right hon. Member for Warley (John Spellar). I thank him for his kind words. He said quite clearly that he had no problem whatever in companies based in the United Kingdom that are not owned or held in the United Kingdom competing for these contracts. That goes to the crux of some concerns that Government Members have about this motion, because it says very clearly that that contract should be offered only to “UK-only competition”. There is no definition of what that means, so the right hon. Member for Warley was probably discontented with the Opposition motion.
It is very clear that the Government are fully committed to supporting our defence sector. The shipbuilding strategy was not developed in order to avoid our support for the shipbuilding sector. The whole point was to ensure that we did support, in a coherent manner, a shipbuilding sector that would be competitive on an international basis, that would be able to retain the skills about which hon. Members have spoken so passionately, and that would allow the qualities of our shipbuilding sector to be understood and appreciated on a worldwide basis.
The Australian Government’s order of the Type 26 frigates in the SEA 5000 competition is an acknowledgment of the design skills that we have on the Clyde. It is also an acknowledgment of the confidence that the United Kingdom has in saying very clearly that we want to compete on an international basis and to offer our products on an international basis, and that we want to do so with a degree of confidence. We do not believe that the way forward for our shipbuilding sector is simply to say that every single vessel has to be built in the United Kingdom, because we are more ambitious for our shipyards. We want to see our shipyards winning contracts on an international basis.
I want to correct something. When I first stood at this Dispatch Box as a Defence Minister, I was told by the right hon. Member for North Durham that we had not sold a warship design in 40 years, so what made me think that we would start now? Well, we have. That is an indication of the fact that our strategy is working. It is working because we have confidence in our shipbuilding sector.
(7 years, 11 months ago)
Commons ChamberI met the Welsh Language Commissioner in August. We have subsequently written to her, highlighting the fact that the concerns raised in relation to the operation of the 2011 Measure have no grounds. In other words, the 2011 Measure is not affected by the Bill. There will be an impact if a subsequent Welsh Language Measure is passed by the Welsh Assembly, but it does not affect the way in which the legislation—
Order. In fairness, I let the first one go on far too long. If you do not want to sum up at the end, do not try to sum up halfway through. Interventions have to be short. There are still another three speakers to come. I am very tolerant, but I am being tested.
With this it will be convenient to discuss the following:
New clause 1—Maritime and Coastguard Agency—
“(1) In section 1 of the Coastguard Act 1925 (transfer of the coastguard to the Board of Trade), at the end insert—
“(4) The Secretary of State must consult the Welsh Ministers about the strategic priorities of the Secretary of State in exercising functions under subsection (1) in relation to activities of Her Majesty’s Coastguard in Wales.
(5) In subsection (4) “Wales” has the same meaning as in the Government of Wales Act 2006.”
(2) In section 292 of the Merchant Shipping Act 1995 (general functions of the Secretary of State) at the end insert—
“(5) The Secretary of State must consult the Welsh Ministers about the strategic priorities of the Secretary of State in exercising functions under subsection (1) in relation to the safety standards of ships in Wales and protecting the health and safety of persons on them.
(6) In subsection (5) “Wales” has the same meaning as in the Government of Wales Act 2006.””
This new clause would amend the Coastguard Act 1925 and the Merchant Shipping Act 1995 so as to require the Secretary of State to consult the Welsh Ministers on the Secretary of State’s strategic priorities in relation to the activities of the Coastguard in Wales, including as regards health and safety on ships in Wales.
New clause 6—Tax on carriage of passengers by air—
“(1) In Part 4A of the Government of Wales Act 2006, after Chapter 4 insert—
“Chapter 5
Tax on carriage of passengers by air
116O Tax on carriage of passengers by air
(1) A tax charged on the carriage of passengers by air from airports in Wales is a devolved tax.
(2) Tax may not be charged in accordance with that provision on the carriage of passengers boarding aircraft before the date appointed under subsection (6).
(3) Chapter 4 of Part 1 of The Finance Act 1994 (air passenger duty) is amended as follows.
(4) In section 28(4) (a chargeable passenger is a passenger whose journey begins at an airport in the United Kingdom), for “England, Wales or Northern Ireland” substitute “England, Wales or Northern Ireland”.
(5) In section 31(4B) (exception for passengers departing from airports in designated region of the United Kingdom) for “England, Wales or Northern Ireland” substitute “England or Northern Ireland”.
(6) Subsections (3) to (5) have effect in relation to flights beginning on or after such date as the Treasury appoint by regulations made by statutory instrument.””
This new Clause would make air passenger duty a devolved tax in Wales, on the lines of section 17 of the Scotland Act 2016.
New clause 7—Assignment of VAT—
“(1) The Government of Wales Act 2006 is amended as follows.
(2) In section 117 (Welsh Consolidated Fund), after subsection (2) insert—
“(2A) The Secretary of State shall in accordance with section 64A pay into the Fund out of money provided by Parliament any amounts payable under that section.”
(3) After that section insert—
“117A Assignment of VAT
(1) Where there is an agreement between the Treasury and the Welsh Ministers for identifying an amount agreed to represent the standard rate VAT attributable to Wales for any period (“the agreed standard rate amount”), the amount described in subsection (3) is payable under this section in respect of that period.
(2) Where there is an agreement between the Treasury and the Welsh Ministers for identifying an amount agreed to represent the reduced rate VAT attributable to Wales for that period (“the agreed reduced rate amount”), the amount described in subsection (4) is payable under this section in respect of that period.
(3) The amount payable in accordance with subsection (1) is the amount obtained by multiplying the agreed standard rate amount by—
10
SR
where SR is the number of percentage points in the rate at which value added tax is charged under section 2(1) of the Value Added Tax Act 1994 for the period.
(4) The amount payable in accordance with subsection (2) is the amount obtained by multiplying the agreed reduced rate amount by—
2.5
RR
where RR is the number of percentage points in the rate at which value added tax is charged under section 29A(1) of the Value Added Tax Act 1994 for the period.
(5) The payment of those amounts under section 64(2A) is to be made in accordance with any agreement between the Treasury and the Welsh Ministers as to the time of the payment or otherwise.”
(4) The Commissioners for Revenue and Customs Act 2005 is amended as follows.
(5) In subsection (2) of section 18 (confidentiality: exceptions) omit “or” after paragraph (j), and after paragraph (k) insert “, or
(l) which is made in connection with (or with anything done with a view to) the making or implementation of an agreement referred to in section 117A(1) or (2) of the Government of Wales Act 2006 (assignment of VAT).”
(6) After that subsection insert—
“(2B) Information disclosed in reliance on subsection (2)(l) may not be further disclosed without the consent of the Commissioners (which may be general or specific).”
(7) In section 19 (wrongful disclosure) in subsections (1) and (8) after “18(1) or (2A)” insert “or (2B)”.””
This new Clause would allow the payment into the Welsh Consolidated Fund of half the receipts of Value Added Tax raised in Wales, on the lines of section 16 of the Scotland Act 2016.
New clause 8—Youth Justice—
“(1) Youth justice is a devolved matter.
(2) The Assembly may establish a non-departmental body accountable to the Assembly to be called Youth Justice Board Cymru to carry out all the existing functions of the Youth Justice Board in relation to youth justice in Wales.
(3) The Assembly may make provision in relation to youth justice in Wales concerning any of the subject matter of—
(a) sections 8 to16, 37 to 42, 47, 48, 65 to 79, 97 and 98 of the Criminal Disorder Act 1998, and
(b) the Youth Justice and Criminal Evidence Act 1999.”
This New Clause would establish a separate youth justice system for Wales, in line with the recommendations made by the Silk Commission.
New clause 9—Apprenticeship levy—
‘(1) In Part 4A of the Government of Wales Act 2006, after Chapter 4 insert—
“Chapter 5
Apprenticeship levy
116O Apprenticeship levy
(1) The Treasury must make separate provision in regulations for apprenticeship levy charged to a person in Wales with a pay bill.
(2) The Treasury must lay an annual report before the Assembly and the House of Commons on the amount of apprenticeship levy raised in each tax year from persons in Wales.
(3) The Treasury must consult the Assembly before setting a levy allowance or a relevant percentage applicable to persons in Wales.””
This New Clause paves the way for apprenticeship levy introduced in Part 6 of the Finance Bill 2016 to be a devolved tax.
New clause 11—Duty to keep the devolution of policing under review—
“(1) The Secretary of State and the Welsh Ministers must keep the functioning and operation of policing in Wales under review, including keeping under review the question of whether policing should be devolved to Wales.
(2) In exercising their duty in subsection (1) the Secretary of State and the Welsh Ministers must have regard to—
(a) divergence in policing as between England and Wales,
(b) the need to treat the Welsh and English languages on the basis of equality, and
(c) any other circumstances in Wales affecting the operation of policing, the maintenance of public order and the prevention and detection of crime.
(3) The Secretary of State and the Welsh Ministers may appoint a panel to advise them on the exercise of their functions in this section.
(4) The Secretary of State must make an annual report on policing in relation to Wales to the Welsh Ministers.
(5) The Welsh Ministers must lay the report before the Assembly.
(6) The Secretary of State must lay the report before both Houses of Parliament.”
This new clause would require the Secretary of State and Welsh Ministers to keep policing in Wales under review and, in particular, the need to devolve policing.
Amendment 70, in clause 36, page 29, line 18, leave out “350” and insert “2000”.
This and related amendments would lift the limit on the Welsh Government’s legislative competence in the field of energy from 350 megawatts to 2000 megawatts.
Amendment 71, page 29, line 22, leave out “350” and insert “2000”.
See amendment 70.
Amendment 72, page 30, line 3, leave out “350” and insert “2000”.
See amendment 70.
Amendment 73, page 30, line 17, leave out “350” and insert “2000”.
See amendment 70.
Amendment 74, page 30, line 38, leave out “350” and insert “2000”.
See amendment 70.
Amendment 75, page 30, line 43, leave out “350” and insert “2000”.
See amendment 70.
Amendment 76, page 30, line 48, leave out “350” and insert “2000”.
See amendment 70.
Government amendment 23.
Amendment 77, in clause 38, page 32, line 17, leave out “350” and insert “2000”.
See amendment 70.
Amendment 78, page 32, line 18, leave out “350” and insert “2000”.
See amendment 70.
Government amendment 24.
Amendment 79, page 32, line 32, leave out “350” and insert “2000”.
See amendment 70.
Amendment 80, page 32, line 34, leave out “350” and insert “2000”.
See amendment 70.
Government amendments 25, 45 to 47, 50, 53, 54, 56 and 58.
Amendment 81, in schedule 6, page 111, line 7, leave out “350” and insert “2000”.
See amendment 70.
Amendment 82, page 111, line 10, leave out “350” and insert “2000”.
See amendment 70.
Government amendment 59.
I will speak first to the Government amendments in the group, before turning to the amendments tabled by Opposition Members. Most of the Government amendments deal with technical changes to the energy and environment provisions in the Bill; I will discuss those first.
Clause 36 delivers the St David’s Day agreement on the devolution of energy consents, giving the Assembly and Welsh Ministers a substantially greater degree of autonomy in determining the shape of devolved energy policy in Wales. We implemented the decentralisation of consenting responsibilities for all onshore wind projects earlier this year. The Bill will devolve to Wales specific consenting responsibility for all other electricity generating projects up to and including 350 MW in size.
It is important that the Welsh consenting authority has the ability to take measures to ensure the safety of offshore renewable energy installations and those who might come in contact with them. Discretionary powers already exist in the Energy Act 2004 for the Secretary of State to designate safety zones around such installations and to determine the conditions that will apply to the operation of such zones. New clause 5 extends those designation powers to Welsh Ministers in respect of offshore installations up to and including 350 MW in size in Welsh waters—that is, territorial waters up to the 12 nautical mile limit, and beyond, into the Welsh zone—and establishes appropriate arrangements for managing instances where an intended safety zone is likely to extend beyond Welsh waters.
Amendments 50 and 59 make consequential changes arising from new clause 5. Amendment 50 amends the 2004 Act to establish that regulations made under the new clause will be subject to the negative resolution procedure in the Welsh Assembly. Amendment 59 introduces tailored transitional provisions for the purposes of the offshore renewable energy safety zone provisions in the new clause. It provides that applications for the determination of safety zones received prior to the commencement of the devolution provisions will continue to be the responsibility of the Marine Management Organisation.
Government amendments 45, 46, 53 and 58 make consequential changes to ensure that the new consenting regime put in place by the Bill operates smoothly. The Bill devolves to Welsh Ministers the ability to use the consenting regime that already exists under section 36 of the Electricity Act 1989 for the purposes of granting consent for electricity generation projects up to and including 350 MW in scale in Welsh waters. We recognise that, in due course, Welsh Ministers may wish to modify and improve the offshore consenting regime and, in doing so, apply a consistent regime between territorial waters and the Welsh zone, where the Assembly does not exercise legislative competence.
Amendment 45 will give Welsh Ministers the ability, through a regulation-making power, to make modifications that can apply in territorial waters and the Welsh zone, avoiding any inconsistencies between the two areas and providing more clarity for developers. In establishing regulation-making powers to enable Welsh Ministers to modify and improve the offshore consenting regime in due course, we are keen not to encumber them with restrictions and requirements that might frustrate them in doing so. Amendment 46 therefore serves to disapply in Wales certain aspects of the 1989 Act, leaving Welsh Ministers with greater flexibility for the future.
Amendment 53 makes technical changes consequential on the new devolution boundary that will operate between Welsh Ministers and the Secretary of State once the devolution of electricity generation consenting powers in Welsh waters and marine licensing functions in the Welsh zone is in place. The changes cater for the fact that a marine licence might in future be deemed by Welsh Ministers to be part of a development consent order under the Planning Act 2008.
Amendment 58 introduces tailored transitional provisions for the purposes of the devolved electricity generation consenting provisions of the Bill. In effect, it provides that applications received prior to the commencement of the devolution provisions will continue to proceed to a final decision by the Secretary of State.
Amendments 23 and 24 make technical drafting changes to clause 38 to reflect the fact that, in the onshore context, devolved electricity generation consenting in Wales will be carried out within the regime of the Town and Country Planning Act 1990. To avoid ambiguity, the inclusion of the concept of “planning permission” simply reflects the language of that Act.
Clause 42 provides Welsh Ministers with further executive responsibilities in the Welsh offshore region. However, we need to ensure that licensing functions that are reserved activities under the Marine and Coastal Access Act 2009 remain with the Secretary of State in the Welsh offshore region. Amendments 25 and 54 to 56 modify the 2009 Act to clarify the devolution boundary so that, for example, enforcement officers appointed using devolved powers have no powers to enforce part 4 of the 2009 Act, relating to petroleum production or exploration; the amendments also exclude the Welsh inshore and offshore regions from waters in respect of which the Marine Management Organisation exercises certain consenting and safety zone functions.
Amendment 56 modifies the 2009 Act to give Welsh Ministers powers to make regulations about the application procedure when they are both the marine licensing authority and the harbour order authority or generating station authority. Finally, amendment 47 simply removes an obsolete reference to Assembly measures.
The Government amendments are all sensible and necessary, and serve to deliver a clearer devolution boundary, one of the key aims of the Bill.
(10 years, 6 months ago)
Commons ChamberThere is certainly an argument that to increase the minimum wage when, as things currently stand, the Government have already taken tax out of the minimum wage, would look as if they were kicking businesses for the sake of kicking them. I have supported the fact that the Government have increased the personal allowance dramatically, which has made work pay for people in many circumstances, but my point is that taking time over a decision is not something we should be ashamed of. Indeed, we should be proud of taking time to make the right decision on something that is so important for a constituency such as mine, where 27% of the working population are either self-employed or work for small businesses.
I must take issue with a few points raised by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) in his opening remarks. He began his speech by talking about Hywel Dda, who was indeed classified as one of the better Welsh kings. I was, however, surprised to hear the hymn of praise to a royalist from an avowed republican. Indeed, in terms of Hywel Dda, or Hywel the Good, being good, perhaps the true title should be Hywel the not-so-good. In addition to being the man who classified and created Welsh law, he also ordered the execution—the murder, I should say—of his brother-in-law in order to take over the kingdom of Dyfed, which is the current constituency of the Under-Secretary of State for Wales, my hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb). Furthermore, so as to extend his kingdom to the north and take over the whole of Wales, he also dispossessed the two sons of Idwal Foel from Gwynedd. When giving examples, I think we must put the man in the context of his time. It is interesting to highlight, however, that the Hywel Dda laws were in many ways ahead of their time in trying to achieve a level of equality between the sexes—not something that we saw in other parts of the United Kingdom for a very long time.
I also take issue with the comments by the hon. Member for Carmarthen East and Dinefwr about a proportional system of electing people leading to greater engagement with the political process. It is an attractive argument, but one that can be rejected simply by looking at the situation in Wales. We have 40 Members of Parliament who are elected on a first-past-the-post basis, and 60 Members elected to the Welsh Assembly, which uses a version of proportional representation. In a constituency such as mine, however, 70% of the electorate—
Order. I am a bit worried that we are getting in to a debate on proportional representation. I presume the point is linked to fairness and equality somewhere.
Order. In fairness, the hon. Gentleman has had a good day. He has made a lot of interventions and he spoke for almost an hour, so to try to make another speech is unacceptable. A lot of Members want to get in.
I reject the hon. Gentleman’s argument. To have more equality, we need more jobs and economic opportunities. The hon. Gentleman argues that that would happen with more Government spending as a proportion of the economy. If that was the case, then Wales would be, by a long stretch, the most successful part of the United Kingdom, because there is no part of the UK more dependent on the public purse. The dependency on public spending in Wales has led to failure not over the past three or four years, but over a 15 to 20-year period. It has not led to economic growth or prosperity, and it has not led to economic opportunities. Indeed, the very reverse is true: the size of the state in Wales is one of the reasons why the rebuilding job being undertaken by the Westminster Government is so important. In a Welsh context, we have created an economy that is unbalanced and has not created the variety of jobs needed to support our young people and ensure that we have an equal society. I argue very strongly that anybody who says that the answer to all economic issues in a Welsh context is more public spending is simply wrong.
(11 years, 9 months ago)
Commons ChamberOrder. We have a lot of speakers to get in, and we need shorter interventions. Otherwise, Members are going to be disappointed.
The hon. Member for Newport West (Paul Flynn) seldom sees the bright side of life. The truth is that I am not willing to see 31,000 job outcomes so far as immaterial. That is something that we should be proud of. To be perfectly frank, if that is failure, give us more.
The Opposition seem unwilling to accept that we should be concerned about value for money for the taxpayer. Obviously, I am not going to mention the comment made by the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) about our financial position, but the Government should be aware of getting value for money for the taxpayer. The figures that I have here show that some of the previous employment support projects have not been particularly successful in that regard. The flexible new deal cost £7,500 per job created, and £770 million was spent. The employment zones cost £993 million, with an average spend of £7,800 per job. The new deal for young people—which was successful, it has to be said—cost £3,300 per job created. At the moment, the Work programme is coming in at about £2,000 per job created. I think that that is a sign of success. Even though it is still premature to look at the outcome figures, we should take a great deal of comfort from the fact that it is giving that level of value for money.
The proof of the pudding is in visiting the Work programme providers in our own constituencies and localities. I have visited the providers operating in the county of Conwy, and I was very encouraged by that visit. I found teams of dedicated members of staff, but an organisation that was taking a huge financial hit because of the performance-related concept that the Department for Work and Pensions insists that the Work programme providers deal with. Interestingly, however, none of the providers that I spoke to suggested that they had any intention of leaving the programme. That was because they could see that they were going to be successful as time moved on. Indeed, separate data published by the Employment Related Services Association, the trade association that speaks for the Work programme providers, show that job starts have increased in the months since yesterday’s figures were collated. That is reinforced by what I have been told in my constituency.
Nothing gives a feeling for the importance of the Work programme better than talking to the participants. They feel that they are finally being taken seriously. They are getting support in areas such as presenting themselves and putting together a CV. Even more impressively, they are getting support with transport to take them to job interviews and training opportunities.
On the visit that I made, I was also impressed by the flexibility of the Work programme to deal with the local issues affecting that particular part of the world. One of the key issues for the Work programme providers in rural north-west Wales is the need to be more flexible in supporting people into self-employment. The original contract that the provider signed included a comparatively low number of members of staff dealing with self-employment. However, it became apparent in no time at all that self-employment was going to be a key deliverer of outcomes in a constituency such as mine, and the contract was flexible enough to allow the provider to up the number of people being supported into self-employment.
A great example of partnership working in that context was the business support structure of the Labour Welsh Government giving its full support to the Work programme providers who were helping unemployed people who wanted to start their own businesses. So the flexibility is there, and the outcomes will potentially be there in due course. What I am seeing is work in progress and a programme that is aimed at ending our long-standing dependency culture. That needs to be targeted and dealt with.
When I visited these Work programme providers, the most impressive thing was that a number of the job outcomes highlighted on the whiteboards were job outcomes in local hotels and local restaurants. That is important in a constituency such as mine, which is heavily dependent on tourism, because previously over the past five or six years—and certainly from 2003-04 onwards—the jobs created in the leisure and hospitality sector in my constituency were being filled by hard-working individuals from eastern Europe. The wonderful thing about the Work programme is that we are seeing evidence that those jobs are now being filled by people living in my constituency and being willing to take the opportunity to work.
(12 years, 10 months ago)
Commons ChamberThat is not a point of order, as the hon. Gentleman knows, but it is a customary courtesy in this House that if a Member mentions another Member they then give way to them. That is up to the Member concerned, however.
(12 years, 11 months ago)
Commons ChamberThe thinking of the Labour party in Wales seems to be that it is perfectly fine for Welsh Labour Members to be Ministers and make decisions that affect England, but that it is not acceptable for the Prime Minister to appoint an English MP to serve in Wales. It is that dual standard that annoys people. Ultimately, we have to deal with the issue, because the threat to the Union will come not from Wales but from disgruntled members of the electorate in England. That is the issue that we must face.
Order. I am sure that an occasional mention of the Bill would be helpful to everyone.
(13 years, 6 months ago)
Commons ChamberThe closure of tax offices is an important issue in north Wales. I hate to be parochial, but I represent an area in which about 20% of the working population are self-employed. The need for self-employment is paramount in north Wales, because the economy is so fragile that unless we create our own job opportunities, we cannot work at all. Unfortunately, over the past few years we have seen the downgrading of the Porthmadog, Bangor and Colwyn Bay tax offices. The 20% of the working population who are self-employed must now travel to Wrexham and even over the border to be served, which is a big problem. As the hon. Gentleman has pointed out, when a small business is forced to use an accountant because it is unable to talk to—