(1 year, 7 months ago)
Commons ChamberDiolch yn fawr iawn, Mr Speaker. One of the unintended consequences of the programme is that police forces have to reduce backroom police staff because of the financial penalties they receive if they do not increase officer numbers, leaving police officers undertaking non-public-facing roles. As 50% of funding for Dyfed-Powys police now comes from the police precept, should the police and crime commissioner and the chief constable not have a greater role in determining the force’s optimal workforce mix? For how long will the Home Office maintain those financial penalties?
(2 years, 8 months ago)
Commons ChamberOrder. We have had enough now. I think 12 years is too long ago in history.
(3 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Diolch yn fawr iawn, Mr Speaker. The Minister will know that the situation is very worrying. If it quickly deteriorates into conflict, the inevitable consequence will be a refugee crisis, perhaps—hopefully not—on the scale that we saw a few decades ago. That would put enormous pressure on neighbouring countries. It seems to me that all Governments internationally are between a rock and a hard place, but one thing that we can do is start preparing contingency plans with neighbouring countries for dealing with a potential refugee crisis.
(4 years ago)
Commons ChamberWe are still hoping to reconnect with the Prime Minister at some point, but in the meantime we will continue with Jonathan Edwards.
Diolch, Mr Speaker. The news of the successful development of three vaccines is to be warmly welcomed because it offers light at the end of the tunnel. However, the Secretary of State will recognise that distribution will be a huge logistical challenge. What guarantee can he give that the Welsh Government will receive any additional resources they require to meet the task at hand?
(6 years, 8 months ago)
Commons ChamberPasg hapus iawn i chi—a very happy Easter to you, Mr Deputy Speaker.
Thank you.
After turning a blind eye to Turkey’s disgraceful offensive against the Kurds in Afrin province, will the British Government now unreservedly condemn the Turkish army’s intention to extend the offensive into Idlib, Manbij and Kobane, and all the way to the Iraq border? As Turkey is now directly undermining a counter-Daesh operation, should not the British Government at least stop selling arms to that country?
(6 years, 8 months ago)
Commons ChamberI am extremely grateful to the hon. Gentleman for that intervention. This debate is so serious that it needs to be debated in a very reasonable, calm and rational manner, as we have seen in the House today.
Most people have been extremely supportive of what we are suggesting, but others have seen the campaign as a plot to undermine the referendum result, which could not of course be further from the truth. What we are proposing is that, as part of the negotiations, the British Government make the case that those of us who wish to keep our current rights are able to do so, while those who wish to renounce their rights would also be able to do so if they so wished. If the British Government are serious about healing the wounds of the referendum, I argue that they should pursue such an initiative with vigour, because it could unite everybody in every part of the British state.
The key point is that the rights we currently enjoy under the Maastricht treaty do not in any way challenge or undermine our rights as subjects of the British state. This point was made with vigour by my hon. Friend the Member for Ceredigion. They are additional rights, and any action by a Government to take away those rights is an extremely serious matter. It is therefore no wonder that this issue is now before the courts in Europe.
As someone who fundamentally believes in Welsh independence, I recognise that, following the political freedom of my country, there will be a requirement to protect the rights currently enjoyed by the people of our respective countries, as was of course the case following Irish independence. I think that answers the point raised by the hon. Member for East Renfrewshire (Paul Masterton)—he is no longer in his place—in his intervention on my hon. Friend the Member for Arfon.
In his article in The New European at the weekend, Professor Volker Roeben, who was formerly of the University of Swansea but now works in Dundee in Scotland—I am delighted to see him here—makes the case quite clearly that international and EU law should protect our current EU citizenship from Brexit. I understand that legal opinions differ and I readily admit that I am no legal expert, but he makes a compelling case. I would like to finish my speech by quoting him at some length. He said:
“Of course, a member state is free to terminate its membership for the future, but it cannot extinguish the citizenships that have already been created and the rights that have been exercised—these continue. This status cannot not be taken away neither by the European Union nor by one of its member states.
This is also the impetus of the international law of treaties laid down in the 1969 Vienna Convention on the Law of Treaties. This international law will be binding on the EU, the UK and the remaining member states after Brexit. It governs in considerable detail the consequences that the withdrawal of a state from any treaty, including the Founding Treaties, entail.
One consequence is that the treaty ceases to bind, but the other is that the withdrawal must not have retroactive effect on the rights of individuals already created at the time of withdrawal.”
This results in a challenge to the European Commission and, as I readily admit, to the British Government. My understanding is that the European Parliament is far more understanding of the case than the Commission. If this is the case, then MEPs will have an important role in scrutinising the negotiating tactics of Mr Barnier and his team. At the end of the day, as Professor Roeben states, it is a matter of political will. I hope that, following this debate, Parliament will support the motion and mandate the British Government to negotiate a protection of the rights we all currently enjoy as European citizens.
I now have to announce the results of today’s deferred Divisions. In respect of the question relating to Northern Ireland political parties, the Ayes were 308 and the Noes were 261, so the Ayes have it. In respect of the question relating to passport fees, the Ayes were 317 and the Noes were 258, so the Ayes have it.
[The Division lists are published at the end of today’s debates.]
(8 years, 5 months ago)
Commons ChamberMy hon. Friend is making very strong points. Only recently, the UK Government introduced centralised helicopter services for the police in England and Wales. That did not affect Scotland and Northern Ireland, because their police forces were decentralised. They kept their helicopters, but we lost ours in Dyfed-Powys. Ministers should not smirk; this affects lives in my constituency. The police force in Dyfed-Powys called out the helicopter on more than 40 occasions, and it was sent out on only a handful of them.
Order. This is not like you, Mr Edwards. If you want to speak, you are allowed to speak, but you cannot make a speech and get carried away and start pointing at the Minister. Let us try to keep it calm. If you want to raise any points, there will certainly be time for you to do so. We will not miss you out.
(8 years, 7 months ago)
Commons ChamberI beg to move amendment 4, in clause 36, page 34, line 15, at beginning insert—
“( ) Subject to the provisions of subsection (3A).”
This amendment and amendment 5 would enable Lloyds Banking Group, the holder of the Bank of Wales trademark, to issue banknotes in Wales.
With this it will be convenient to discuss amendment 5, page 34, line 44, at end insert—
“(3A) Regulations under subsection (1) must make provision authorising Lloyds Banking Group to issue banknotes in Wales”.
See the explanatory statement for amendment 4.
I am delighted that we have reached this group as I feared that our consideration on Report would be concluded prematurely. I therefore have only a very short speech, but luckily this is rather a straightforward and uncomplicated matter. If I had known that I would have far more time than I assumed—a rare privilege in this place—I would have prepared a far lengthier speech, quoting extensively from the masterpiece “A History of Wales” by the late, great John Davies, or John Bwlchllan as he was known to his friends, and from “When was Wales?” by the great historian who was a member of the Labour party and of Plaid Cymru, Gwyn Alf Williams, who retired to Drefach Felindre in my constituency.
I am delighted that my amendments 4 and 5 are being supported by the Labour Front-Bench team. When I was eating my cornflakes in the hotel this morning, it was a nice surprise to receive an email from David Williamson, the Western Mail correspondent, citing a press notice by the shadow Secretary of State for Wales saying that she supported my proposal. Perhaps this is the start of a beautiful new relationship, although I fear that I might be doing my best to scupper those sorts of endeavours after the election. I aim to press amendment 4 to a Division, with your permission, Mr Deputy Speaker.
I have spoken on this issue before in the Chamber, but I will reiterate a few points that I made on Second Reading. The amendment deals with the historical anomaly that prohibits Wales from producing its own distinctive banknotes. Both Scotland and Northern Ireland are allowed to do so, and so to celebrate their respective national figures and landmarks.
(10 years, 5 months ago)
Commons ChamberWith this it will be convenient to discuss the following:
New clause 3—National Assembly ability to hold binding referenda—
‘Her Majesty may by Order in Council provide for the transfer of responsibility for holding binding referenda to the National Assembly for Wales.’
New clause 4—National Assembly for Wales: reserved powers—
‘(1) The Secretary of State will lay a report before each House of Parliament on the further legislative steps needed to move to a model of reserved powers for the National Assembly for Wales and shall lay the report before each House of Parliament within nine months of this Act receiving Royal Assent.
(2) Part 2, except the referendum-related provisions and sections 19 and 20 shall not come into force until the report has been laid in accordance with subsection (1).’
Amendment 8, in clause 19, page 22, line 8, at end insert—
‘(1B) Welsh Ministers may set their own capital expenditure priorities.”
This amendment and amendment 5 enable the new clause inserted by new clause NC1 to come into force by order of the Secretary of State if the majority of voters in a referendum held under clause 11 vote in favour of clauses 8 and 9 (the income tax provisions) coming into force.
We should be using this Bill to empower the Welsh Government—with an arsenal of powers to enable them to intervene in the Welsh economy. During our discussions on the Bill, we have debated fiscal powers and different elements of borrowing powers. However, we have not debated one lever that could be of enormous use to the Welsh Government and that might not necessarily cost a penny, but that would allow them to provide security to various infrastructure projects that might not take place without such backing.
New clause 2 would allow the Welsh Government to issue financial guarantees for private projects that they choose to support in such a manner. Government guarantees are useful for companies that are then able to draw down private investment to fund their projects. As I have said, these guarantees would cost the Government nothing, unless the project fails.
Effectively, guarantees mean that the Government financially underwrite a project. In many cases, guarantees are more useful for helping projects get off the ground than borrowing powers. It is a simple measure that would help the Welsh Government kick-start infrastructure development in Wales, boosting jobs and growth.
I need only quote what the Chief Secretary to the Treasury had to say about the importance of guarantees when he launched the most recent outline of UK Government-backed projects:
“The offer of a guarantee is helping to get projects going…There is a lot of infrastructure happening in this country because of this programme.”
The Institute of Civil Engineers said that the guarantee scheme had enabled
“viable projects to secure finance in difficult market conditions…It is an excellent example of government making creative use of its resources to get projects moving,”
Last October, the UK Government announced their £40 billion guarantee scheme. Projects earmarked for support included a £300 million biomass energy generation plant in Avonmouth in Bristol; a £400 million gas-storage facility in Islandmagee in County Antrim; two gas-fired power plants in Lincolnshire and Essex; mixed-use development of homes, offices and shops in Aberdeen; a wind farm on the Forth estuary; a renewable energy port facility in north Lincolnshire; a low-carbon fuel plant for commercial vehicles; development of the university of Roehampton campus in Surrey; a wood-fired generation plant in Tilbury in Essex; relocation of Northampton university; a Five-Quarter Energy gas plant in the north-east of England; and ethane storage facilities at the Ineos Grangemouth plant near Falkirk in Stirlingshire.
If we look at the UK Government’s list of prequalified projects, which was updated on 16 June, we will see that none of those projects is in Wales. Despite heady announcements from the UK Government about “co-operation agreements” and the inclusion in the national infrastructure plan of projects in Wales, not one has even reached the prequalified stage, according to the publicly available list.
The UK Government guarantee scheme should not be confused with the national infrastructure plan, which is a wish list of future projects. The plan does include the proposed Wylfa B, with a promise of UK Government financing help following planning approval. The national infrastructure plan of December 2013 mentions
“a new cooperation agreement with Hitachi and Horizon with the aim of being able to agree an in-principle guarantee by the end of 2016 to support the financing of a new nuclear power plant at Wylfa, subject to final due diligence and ministerial approval.”
It has, therefore, still not reached the prequalified stage.
Returning to the UK Government guarantee scheme, the eagle-eyed will notice that none of the prequalified projects is located in Wales. Therefore, the Treasury is using Welsh taxpayers’ money to underwrite projects in other parts of the UK, and Wales has so far seen precious little, despite being desperately in need of better infrastructure to drive forward the Welsh economy. Driving forward the Welsh economy would be a real effort to rebalance the UK economy geographically, yet this Government have no real interest in doing so. They should either bring more infrastructure projects to Wales, or give the Welsh Government more tools to do so. I and my Plaid Cymru colleagues believe that it is for the people of Wales, through their democratic institutions, to decide which infrastructure projects to underwrite and where.
(10 years, 7 months ago)
Commons ChamberI beg to move, That the clause be read a Second time.
With this it will be convenient to discuss the following:
New clause 6—Air passenger duty: Scotland
‘(1) The Scotland Act 1998, Schedule 5, section A1 (exceptions) is amended as follows.
(2) After “rates)”, insert—
“(1) Air Passenger Duty on all flights that are—
(a) originating from an airport or aerodrome in Scotland; and
(b) not part of a connecting flight from—
(i) a domestic UK airport or aerodrome; or
(ii) a territory specified in Part 1 of Schedule 5A of the Finance Act 1994.”.’.
New clause 7—Rates of air passenger duty (Scotland)
‘After section 30A of the Finance Act 1994 there is inserted—
“30B Scotland rates of duty
(1) This section applies to the carriage of a chargeable passenger if—
(a) the carriage begins on or after the relevant day; and
(b) the only flight, or the first flight, of the passenger’s journey begins at an airport or aerodrome in Scotland.
(2) Air passenger duty is chargeable on the carriage of the chargeable passenger at the rate set by an Act of the Scottish Parliament for the purposes of this paragraph.
(3) The rate of £0 may be set for the purposes of paragraph (2).
(4) Any rate set must not exceed the rate which would apply if this section were not in force.
(5) “The relevant day” means the day appointed as such by an order.
(6) Section 42(4) and (5) does not apply to any order under subsection (5).
(7) An “Act of the Scottish Parliament” means an Act passed under section 28 of the Scotland Act 1998.”.’.
New schedule 1—‘Air Passenger duty: Wales
Part 1
Rates of Duty from 1 April 2014
1 Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as follows.
After subsection (4D) insert—
“(4DA) Subsection (4D) applies if—
(a) the passenger’s journey is a relevant Wales journey; and
(b) apart from subsection (4DB), subsection (2) would not apply to the journey.
(4DB) The applicable rate in subsection (2) applies to the journey instead of the applicable rate in subsection (3), (4) or (4A) (as the case may be).
(4DC) A passenger’s journey is a “relevant Wales journey”—
(a) in the case of a journey which has only one flight, if the flight begins in Wales; and
(b) in any other case, if the first flight of the journey—
(i) begins in Wales; and
(ii) is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.”.
The amendments made by this Part of this Schedule have effect in relation to the carriage of passengers beginning on or after 1 April 2014.
Part 2
Devolution of Wales long haul rates of duty
2 Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.
3 (1) Section 30 (rates of duty) is amended as follows.
(2) After subsection (1) insert—
“(1B) Subsection (1) does not apply to the carriage of a chargeable passenger to which section 30B below (Wales long haul rates of duty) applies.”.
(3) Omit subsections (4DA) to (4DC) (as inserted by paragraph 1 above).
(4) The amendments made by this paragraph have effect in relation to the carriage of passengers beginning on or after the relevant day as defined in section 30B of FA 1994 (as inserted by paragraph 4 below).
4 After section 30A insert—
30B Wales long haul rates of duty
“(1) This section applies to the carriage of a chargeable passenger if—
(a) the carriage begins on or after the relevant day;
(b) the only flight, or the first flight, of the passenger’s journey begins at a place in Wales;
(c) the passenger’s journey does not end at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A; and
(d) if the passenger’s journey has more than one flight, the first flight is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.
(2) Air passenger duty is chargeable on the carriage of the chargeable passenger at the rate determined as follows.
(3) If the passenger’s journey ends at a place in a territory specified in Part 2 of Schedule 5A—
(a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph; and
(b) in any other case, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph.
(4) If the passenger’s journey ends at a place in a territory specified in Part 3 of Schedule 5A—
(c) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph; and
(d) in any other case, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph.
(5) If the passenger’s journey ends at any other place—
(e) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph; and
(f) in any other case, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph.
(6) The rate of £0 may be set for the purposes of any paragraph.
(7) The same rate may be set for the purposes of two or more paragraphs.
(8) Subsections (5) to (7) and (10) to (12) of section 30 apply for the purposes of this section as they apply for the purposes of that section.
(9) “The relevant day” means the day appointed as such by an order.
(10) Section 42(4) and (5) do not apply to an order under subsection (9).
(11) A Bill containing provision authorised by this section may not be passed by the National Assembly for Wales except in pursuance of a recommendation which—
(g) is made by the Minister of Finance; and
(h) is signified to the Assembly by the Minister or on the Minister’s behalf.
(12) “Passed”, in relation to a Bill, means passed at the final stage (at which the Bill can be passed or rejected but not amended).
(13) Duty paid to the Commissioners in respect of the carriage of chargeable passengers to which this section applies must be paid by the Commissioners into the Consolidated Fund of Wales.”.
5 (1) Section 33 (registration of aircraft operators) is amended as follows.
(2) After subsection (2A) insert—
“(2B) If the Commissioners decide to keep a register under section 33B below, an operator of a chargeable aircraft does not become liable to be registered under this section just because the aircraft is used for the carriage of chargeable passengers to which section 30B above applies.”.
(3) In subsection (3)(b) after “applies”, insert “or, if the Commissioners have decided to keep a register under section 33B below, that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers apart from the carriage of chargeable passengers to which section 30B above applies.
(4) In subsection (7) after “section 33A”, insert “or section 33B below”.
6 After section 33A insert—
33B (1) The Commissioners may under this section keep a register of aircraft operators.
(2) If the Commissioners decided to keep a register under this section, the operator of a chargeable aircraft becomes liable to be registered under this section if the aircraft is used for the carriage of chargeable passengers to which section 30B above applies.
(3) A person who has become liable to be registered under this section ceases to be so liable if the Commissioners are satisfied at any time—
(a) that he no longer operates any chargeable aircraft; or
(b) that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers to which section 30B above applies.
(4) A person who is not registered under this section and has not given notice under this subsection shall, if he becomes liable to be registered under this section at any time, give written notice of that fact to the Commissioners not later than the end of the prescribed period beginning with that time.
(5) Notice under subsection (4) above shall be in such form, be given in such manner and contain such information as the Commissioners may direct.”.
7 In section 34 (fiscal representatives) in subsection (5)—
(a) in paragraph (a) after “33A”, insert “or 33B”.
8 After section 41B insert—
41C Wales long haul rates of duty: disclosure of information
“(1) An officer of Revenue and Customs may disclose to the Secretary of State, the Treasury or the Department of Finance in Wales any information for purposes connected with the setting of rates under section 30B above, including (in particular) to enable the setting of rates under that section to be taken into account for the purposes of section 118 of the Government of Wales Act 2006 (payments by Secretary of State into Welsh Consolidated Fund).
(2) Information disclosed under subsection (1) above may not be further disclosed without the consent of the Commissioners (which may be general or specific).
(3) In section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) references to section 18(1) of that Act are to be read as including a reference to subsection (2) above.”.
9 In section 44 of CRCA 2005 (payment into Consolidated Fund) after subsection (2)(cb) insert—
(cc) sums required by section 30A(15) of the Finance Act 1994 (air passenger duty: Wales long haul rates of duty) to be paid into the Consolidated Fund of Wales,”.
10 In column 2 of the Table in paragraph 1 of Schedule 41 to FA 2008 (penalties for failure to notify), in the entry relating to air passenger duty, after “33A(4)”, insert “or 33B(4)”.
11 The amendments made by this Part of this Schedule have effect in relation to the carriage of passengers beginning on or after 1 April 2014.
12 The rate of duty in force under section (30B) shall not be greater than the rate which would be in force if the section had not been enacted.’.
Clauses 72 to 74 stand part.
Diolch yn fawr iawn, Mr Bone. It is an honour to serve under the chairmanship of the best slow left-arm bowler in the Westminster cricket team.
It is with pleasure that I rise to support new clause 2 and new schedule 1, and I will be pushing for a vote at the appropriate time. The UK Government commission on devolution in Wales, headed by Paul Silk, published the first phase of its report in November 2012, which concentrated solely on fiscal powers. Some 18 months later we are still waiting for an essential part of the cross-party Silk commission recommendations to come to fruition: the devolution of responsibility for long-haul air passenger duty. The original cross-party report recommended that responsibility for APD be transferred to Wales at the earliest opportunity and that the Finance Bill was the appropriate vehicle for doing that. The commission had the 2013 Finance Bill in mind, following the precedent set during the 2012 Finance Bill when APD was devolved to Northern Ireland.
It therefore comes as no surprise that I am here yet again attempting to transfer APD to Wales, as was agreed by all the parties in the commission. I will seek to divide the House and to hold other parties to what their representatives on the commission said and, perhaps more importantly, what their representatives in the National Assembly say back in Wales. I would of course be ecstatic if by some divine intervention their masters here in London listened to them for once and voted in favour of the policies they advocate—I do not hold my breath in much hope.
I will go on to speak about the discrepancies between what the Unionist parties say in Wales and how they vote here on devolving APD. First, let me inform the House a little about the background to the UK Government commission’s recommendation to devolve APD as part of a comprehensive package of financial powers and about the stage we are at now. In short, the cross-party Silk commission recommended that powers over stamp duty land tax, the aggregates levy, long-haul APD, landfill tax and business rates be devolved in their entirety. It also advocated a sharing arrangement for income tax, with Wales having the ability to vary each individual income tax band and rate.
After having been made to wait for more than a year by the London Government to grace us with a response to the commission which they themselves set up, we find ourselves already having debated the Second Reading of the Wales Bill in this Chamber. We expect it to be confirmed tomorrow morning that the whole House will return to consider the Committee stage of that Bill after the Easter recess. Yet the Wales Bill has some glaring omissions. It seems like a long time ago now when, last autumn, the Prime Minister and Deputy Prime Minister swept into the Senedd building in Cardiff, to flashing camera lights and an adoring paparazzi, in order to announce new financial powers for Wales. Very few questioned what exactly was being proposed. Only later did it emerge that the Westminster Government were prepared to accept the cross-party commission recommendations only in part and that they would be ignoring some. That is despite the fact that they had representation on the commission in the form of a commissioner representing the Conservative party and a commissioner representing the Liberal Democrats.
In essence, the Government have cherry-picked the commission’s recommendations, even though they were agreed on as a comprehensive package of reforms. It is therefore greatly disappointing that the Westminster Government have decided to ignore the will of the people of Wales, who believe that Wales should have greater power over its own affairs, according to successive polls, not least the ones conducted by the commission while it gathered evidence as part of its reports. Those polls represent some of the most detailed research undertaken on attitudes towards devolution since we first had our own devolved legislature in 1999.
(10 years, 8 months ago)
Commons ChamberOrder. I think the hon. Members for Arfon (Hywel Williams) and for Carmarthen East and Dinefwr (Jonathan Edwards) need to calm down a little. In fairness, everybody has been able to put their point of view. I am sorry they do not accept what the shadow Minister is saying, but they cannot shout from the Benches in that way.
(10 years, 9 months ago)
Commons ChamberOrder. Obviously, Mr MacNeil will want to catch my eye to make his speech. I would not like him to use it all up now, so shorter interventions.
The point that is often forgotten is that despite the fact that London is one of the richest parts of the European Union and that communities such as mine in Carmarthenshire are at the bottom of the European wealth league, public expenditure per head is higher in London than it is in Wales—that is until very recent figures, which showed that Welsh spending had caught up. It is an incredible situation. I could not make this up.
The way in which monetary policy is formulated is also in severe need of reform. The week before last, I tabled an early-day motion calling for the Bank of England, or the Sterling Central Bank as it should be renamed, to be reformed better to take into account the economies of the UK when formulating monetary policy. The Governor should appear for scrutiny before the relevant Committees of the devolved legislatures, and meet with the devolved Governments, just as he has to with the Chancellor and the relevant Select Committees in Westminster.
In addition, the four external members of the Monetary Policy Committee should be nominated by the four nations, rather than hand-picked by the Chancellor of the day from the self-serving banking elite. [Interruption.] I am grateful to my friends from Northern Ireland who supported that early-day motion. There is an interesting story in the Western Mail about the need for the Welsh Government and the Northern Ireland Assembly to collaborate in the event of Scottish independence, be it a yes or a no vote, to ensure that we are not bombarded by Westminster. I hope that it might be a small step on the road to greater collaboration. Instead, what we have is a drive towards regional pay in the public sector, introduced by the previous UK Government and now developed by the coalition, which ghettoises low-wage economies outside London.
Labour has gone a step further, with a pledge to cap benefits on a geographical basis if it forms the next Government. That means that the unemployed and disabled in Wales will receive fewer payments than those who happen to live in London. Wales will have lost more than £1 billion during 2013-14 due to cuts in benefits. Those include payments that people in work receive to top-up low wages. That money would have been spent directly in the Welsh economy, but is now lost.
Rather than hitting the sick and unemployed with a stick and labelling them “scroungers”, why do we not embrace the active labour market programme employed so successfully in Sweden? It is an interventionist policy, in which the Swedish Government spend twice the amount per capita that is spent in the UK, creating tailored action plans. The programme has productivity and mental health benefits, so it ends up costing the taxpayer far less, as individuals are moved from social security into employment, and it eases considerable pressure on heath services.
It is increasingly clear that the Treasury has been re-infected with the British disease of basing growth on inflating house prices backed up with taxpayers’ cash—the Help to Buy policy. Far from rebalancing the economy, the Treasury is reintroducing boom and bust. Instead of delivering an equitable share of infrastructure investment across the UK, the Exchequer lavishes London with its grand design projects, be it the Olympics, Crossrail 1 and 2 or High Speed 2. UK Trade & Investment does not deliberately channel foreign direct investment into the poorest parts of the state, unlike its German counterpart, Germany Trade & Invest, which has a statutory duty to do so. Is it not sobering that despite the cold war and a physical wall between the east and west of its country, Germany today is far more balanced in geographical wealth than the UK?
Other places have shown the way. Germany is a federal republic, and the constitution requires fiscal equalisation among the Länder. That is a timeless requirement on all parts of government, and policies are required no matter the era. After reunification, when poorer East Germany joined developed West Germany, a massive effort meant a variety of measures were implemented, including financial transfers to poorer regions and industrial development policies.
The same could be done from Westminster, but it has not been. The alternative is the approach favoured by the London parties, whereby investment is concentrated in London and the south-east, and wealth inequalities continue to rise. It is clear that it is time for a change. Where are the voices in support of such a change? Who will turn back the tide of growing inequality? We know that we cannot rely on the Tories in London, so unashamed are they in their love of banking and the financial elite. Where is Labour? Why is it not standing up against inequality? Its amendment seeks to wreck our motion, absolving it of its role in creating rising inequality over the past decade, but it is bereft of policies.
Last week, some of Labour’s Wales-based Members defended the UK as a redistributive Union. They are deluding themselves, both about their record in government, as inequality rose during that period, and about the current situation. A closer examination of their voting record would suggest that their rhetoric is unsupported by action. I cite their abstention on the Welfare Reform Bill, which introduced the cruel and dreaded bedroom tax; their abstention on a cut in the top rate of income tax; and their refusal to support any measure to help to promote measures to provide the Welsh Government with the economic powers that they need to move the Welsh economy forward.
(10 years, 9 months ago)
Commons ChamberAs I understand the position of the Labour party in Scotland, it favours the full devolution of income tax powers to the Scottish Parliament. Yesterday, we heard a speech from the 1970s from the hon. Member for Pontypridd (Owen Smith), in the Welsh Grand Committee, in which he said that fiscal devolution was tantamount to destroying the fabric of the British state. Will the hon. Member for Glasgow North East (Mr Bain) explain to the House and the people of Scotland what exactly is Labour’s position on fiscal devolution?
It might help Mr Edwards to know that he was on the list to speak, and I do not want to keep banging people down the list because they intervene. I do not want to stop debate—I do not mind interventions—but please ensure they are brief and not continual.
(12 years, 4 months ago)
Commons ChamberI find myself in the strange position of congratulating the Government on their statement. It goes part of the way to making up for the historical underfunding of the Welsh railways. The north Wales coast line and the line west of Swansea are vital links between the mainland and Ireland, which is a major trading partner of the Welsh economy and the wider UK economy. What discussions are happening between the Department, the Welsh Government and European institutions about using Wales’s share of HS2—
(13 years, 5 months ago)
Commons ChamberDiolch yn fawr, Mr Speaker. I had an hour-long speech prepared for this debate, but as it is going well past my bedtime, I will try to keep my remarks as short as possible.
I move this new clause with a sense of déjà vu, as only last July I closed a Finance Bill debate on an amendment tabled by my hon. Friend the Member for Dundee East (Stewart Hosie) that aimed to overturn the decision in the emergency Budget to raise VAT to 20% from January this year. Many of the arguments I made then remain relevant, but I will resist the temptation to air the same speech twice. Interestingly, that debate [Interruption]—
Order. Too many conversations are going on in the Chamber, and I am sure that everybody wants to hear the hon. Gentleman.
Thank you very much, Mr Deputy Speaker.
Interestingly, when the House divided on that amendments the Labour party abstained. Since then, it seems that the official Opposition’s main critique of the UK Government’s economic policy has been based on the Treasury’s VAT policy. I hope that when we divide later the Labour Front-Bench team will set aside its usual partisan approach to votes in this place and will walk through the Lobby with us. As I see the shadow Minister, the right hon. Member for Delyn (Mr Hanson), grinning, I hope that that will be the case.
In the 2010 general election, Plaid Cymru campaigned against a VAT increase—unlike the Liberal Democrats, who had their tax bombshell poster, we meant it. That is why we tabled an amendment to prevent the increase last year and why we have done the same again this year. Last year, I said that there was both a social and economic reason why the increase in VAT was a bad idea, and I hope to concentrate on those reasons during my speech. We are against the ideological cuts and the rush to achieve a zero deficit within one parliamentary term with the net result of hundreds of thousands of lost jobs and unimaginable pain across our communities. We have consistently expressed our concern at the possibility of what the former Monetary Policy Committee member, David Blanchflower, called a “death spiral”, whereby cuts in expenditure become cuts in receipts.
A country’s economy is not like a family budget. Although it is good public relations, making misleading references of this sort is a very dangerous game for the UK Government to continue to play. In the case of the state there is a direct link between expenditure and income. Indeed, an overt reduction in expenditure can lead to a reduction in income and an increase in the deficit. Some would argue that we are in that situation already, even before the real cuts start to bite.
The state cannot cut its expenditure and assume that its income will remain constant. We are talking about intrinsic fine balances, which is why it always makes more sense for a state to change its expenditure levels modestly, rather than go cold turkey, as is favoured by the current Government. Four main elements drive economic growth: public sector expenditure; exports; private investment; and the key element as far as today’s debate on VAT is concerned, which is household spending.
VAT is, in essence, a tax on consumption. Economic growth in the Labour years was largely driven by consumer spending, resulting in a situation whereby personal debt levels in the UK have rocketed to an unsustainable 100% of gross value added, at £1.4 trillion.
(13 years, 5 months ago)
Commons ChamberIt gives me great pleasure to return to the House to discuss the Scotland Bill after the Committee debate in March.
The first group of amendments on today’s selection list is fairly extensive and addresses several different aspects of the Bill’s finance package. I will set out why we have tabled Government amendments and why we will not accept the non-Government amendments.
In Committee, we debated the definition of a Scottish taxpayer for the Scottish rate of income tax. I said that the Government would table a new clause to apply the same definition to the Scottish variable rate, in response to one of the recommendations of the Scottish Parliament’s Scotland Bill Committee. The reworked definition of a Scottish taxpayer for the new Scottish rate of income tax is a significant simplification. I appreciate that it is unlikely that the Scottish variable rate will ever be invoked. Nevertheless, without the amendment, there would be two separate definitions of a Scottish taxpayer in place at the same time. There is potential for practical difficulties for taxpayers, employers and their professional representatives, who might need to familiarise themselves with one definition for the years up to 2015-16, only to have to switch to a different definition for subsequent years. That is entirely unnecessary.
Applying the definition of a Scottish taxpayer that has been developed for the Scottish rate of income tax for the purposes of the Scottish variable rate will help smooth any transitional issues, and will also make it easier for people to understand whether they are classed as a Scottish taxpayer. The Scottish Parliament’s Scotland Bill Committee rightly recommended the change, with which the UK Government very much agree, and I commend the new clause to hon. Members.
On a previous occasion, my hon. Friend the Member for Milton Keynes South (Iain Stewart) raised a particular query. He has tabled amendment 24, about which he intends to speak later. I will respond to the issues that he raises after he has had an opportunity to set out his thoughts on that.
Government amendment 31 would make a small, technical change, to which I hope the House can agree. Section 989 of the Income Tax Act 2007 contains several definitions, which apply for the purposes of income tax legislation. It includes definitions of the basic, higher and additional rate of income tax. They refer to the rate of income tax set by the UK Parliament in the year in question. Government amendment 31 would extend those definitions to include the rates applicable to a Scottish taxpayer. As I said, it is a minor drafting amendment, and I do not anticipate its proving too controversial.
The purpose of Government amendment 15 is to correct a technical fault with the Bill so that it is consistent with the Government’s policy intentions as set out in the Command Paper, which states that the Scottish Government will be able to borrow to manage the difference between forecast and outturn tax receipts. However, as I explained in our Committee debate on 14 March, the Bill as it currently stands enables the Scottish Government to borrow to manage this difference only for fully devolved taxes, and not the Scottish rate of income tax. That is a technical fault, which the amendment corrects. I hope that it will be accepted.
Let me deal with Government amendments 32 to 35. The purpose of Government amendment 32 is to introduce a power, which will enable the Government to amend in future the way in which Scottish Ministers can borrow, including by way of bond sales, without the need for further primary legislation. The Bill gives Scottish Ministers a new power to borrow, by way of loan, from 2015-16 up to £2.7 billion of total debt, £2.2. billion of which can be used to fund capital expenditure.
The UK Parliament has an interest in ensuring that Scottish Ministers can borrow efficiently and sustainably because, although interest paid on any loans will be funded from the Scottish budget, it will be included in the UK fiscal aggregates. The Bill therefore gives Scottish Ministers the power to borrow in the most efficient and sustainable way—from the national loans fund, as recommended by the Calman commission. In addition, should Scottish Ministers so choose, the Bill gives them the power to borrow by way of commercial loan where that represents value for money.
Reports on the Scotland Bill by the Scottish Affairs Committee and the Scottish Parliament have recommended that Scottish Ministers should be granted additional borrowing powers—specifically, the power to issue bonds. The First Minister made the same points in his discussion with my right hon. Friends the Chancellor of the Exchequer and the Secretary of State for Scotland. The reports and discussions have highlighted the discrepancy between the powers of Scottish Ministers and local authorities, which already have the power to issue bonds.
So far, the main evidence that has been provided to the Government in support of Scottish Ministers issuing bonds is “because other bodies can do it”. However, with the exception of Transport for London, the vast majority of local authorities have not exercised those powers in recent history, not least because local authorities judge that they have access to more efficient and sustainable forms of borrowing.
The Government continue to believe that the case against bond issuance is clear cut, particularly in the medium term, given the uncertain outlook and challenging fiscal mandate. All the evidence suggests that further bond issuance would have a negative impact on the UK’s fiscal position.
In the context of the highest deficit since world war two, the Government would consider allowing Scottish Ministers to issue bonds in future only when that does not undermine the overall fiscal position, or have a negative impact on total UK borrowing. If a case is made that Scottish Ministers’ borrowing powers could be extended without undermining the overall UK fiscal position or increasing UK borrowing, the amendment that I am tabling today would allow changes to the borrowing powers of Scottish Ministers to take effect swiftly, by way of an order.
The Government have committed to conducting a review of the costs and benefits of bond issuance over other forms of borrowing to help inform any decision. The amendment would have the effect of, first and foremost, protecting the UK’s fiscal position by continuing to allow Scottish Ministers to access the most efficient and sustainable source of borrowing.
After the Bill has been passed, the Welsh Government will be the only political entity in the British state unable to borrow. Will the Exchequer Secretary address that matter quickly, rather than awaiting some prolonged Calman process, which the Government currently envisage?