Rural Economy of Wales

Liz Saville Roberts Excerpts

Tuesday 28th November 2017 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I congratulate my hon. Friend the Member for Ceredigion (Ben Lake) on securing this significant debate. As the youngest Welsh MP—I do not know whether he likes me reminding him of that fact—it is evident that he has already played an inspiring role in representing his constituency and his country.

Considering the interest in this debate and the comments that have already been made, I will be as brief as possible and confine my remarks to one key issue: addressing the need to counterbalance the dynamics in Wales between the east and the west. There is a cognitive block in viewing the geography of Wales in terms of north and south, and that in turn blocks our growth as a nation. Undoubtedly there are some unifying factors among north Walians—the gogs, as we call ourselves—and our compatriots in the south. For example, the gogs will always call milk “llefrith”, and the south will wrongly insist on having borrowed the word from Latin and so call it “llaeth”. We do enjoy these differences, but let us never forget that the language unites us along a north-south axis, while our historic infrastructure and economic convention would have us looking east-west all the time.

Wales’s cities and large towns generally lie in the east, but in the west, rural Wales is made up of villages and market towns. The public sector, agriculture and tourism are the pillars of the economy in those communities. None the less, it is in those rural villages and towns that we find the highest concentration of Welsh speakers, and I am proud to represent Dwyfor Meirionnydd, the constituency with the highest proportion of Welsh speakers anywhere in the world. Sadly, in my constituency and other rural Welsh constituencies, we also find some of the lowest wages in Europe. As already noted by other Members, the economies of the region—the public sector, agriculture and tourism—are teetering on the brink of crisis. We cherish all those economies, but they are all vulnerable.

With massive outflows of young productive people, EU funding at risk and a Westminster Government hunkered down in the south-east and, frankly, focused solely on the needs and interests of that region, rural Wales faces unprecedented challenges. This re-formulation or resetting of how our nation of Wales could be perceived is best summed up by the work of my colleague Adam Price AM. He is sitting in the Public Gallery, and I welcome him. His concept of Arfor would see a new socioeconomic map drawn for Wales along a more appropriate boundary, acknowledging the east-west norm, but also looking at the issue from an alternative and counter-balancing north-south axis. That would not only allow investment to be more appropriately targeted to suit areas in the east and west, but foster greater north-south integration. That simple re-imagining or re-perceiving could not only save economies and communities, but safeguard our language and those rare communities where Welsh is not a minority language and is used by the majority. That is important to our perception of the use of the language. Bringing these majority Welsh speaking areas together to offer real opportunities for young Welsh speakers will give our language the environment in which it can thrive into the future.

To finish, I will give three examples looking at how Arfor could energise the economy of the west of Wales and Wales as a whole. First, we could transform tourism jobs from being a gap-year filler to offering the living wage and a long-term career. As a first step, we could set up a tourism academy linking business to universities and further education colleges to ensure we have the skills and expertise we need—skills made in Wales, for the needs of Wales, for the salaries of Wales and that stay with us.

Secondly, we could have a community bank for west Wales. As commercial banks disappear from our high streets—even ATMs in rural areas are under threat—rural people are left without basic services. A new model of community banking could fill the gaps.

Finally, we need the conventional and digital infrastructure that will truly transform west Wales. Let us consider reopening the Aberystwyth to Carmarthen rail line and the digital infrastructure that my hon. Friend the Member for Ceredigion spoke about so eloquently. We need swiftly to move people, bits and the knowledge economy across Wales to move into the future.

Rural Wales has been the cauldron of Welsh culture and remains the heartland of our language and its traditions. Let it be the pair dadeni—the cauldron of rebirth. Economically, it faces its greatest challenge in modern history, yet I am confident, despite everything and everyone—er gwaetha pawb a phopeth—that we need only to be given the tools to build our own future.

[Albert Owen (Ynys Môn) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Hollobone. I genuinely congratulate the hon. Member for Ceredigion (Ben Lake) on the tone he set in opening the debate. I pay tribute to him and his predecessor Mark Williams, who for many years adopted the same tone of consensus in Wales. He brought people together to speak as Welsh MPs in the House of Commons.

I congratulate the NFU on providing a concise brief, much of which the hon. Gentleman referred to, and I make no apologies in echoing some of the statistics that it provided. Indeed, farming unions have been helpful to Members over many years, and I pay tribute to the work they do not just for their members, but for the communities of rural Wales. They play a very positive role in the social fabric of Wales, and I thank them for that.

I will concentrate my contribution on a matter that has been affecting my constituents for a long time, but in particular since 2010: the over-centralisation of many of the UK Government’s services, away from rural and semi-rural areas to the towns and cities of Wales and the UK. I will also touch on food and drink and the importance of agriculture, tourism and connectivity.

The Welsh food and drink industry is hugely important, as the hon. Gentleman said, to the whole economy of urban and rural Wales. The backbone of the food industry is Welsh agriculture. As has been said, it is a progressive, outward-looking industry that exports much of its produce across the European Union—some 90% of it is freely traded across the EU. A third of the lamb that the United Kingdom exports is Welsh lamb, which is without a doubt the finest lamb in the UK. It is hugely important, and we need to pay tribute to our agriculture industry and our farmers and offer them help and support.

I know the Minister listens carefully to what is said and represents our views to Government as a Minister in the Wales Office. He talks about securing EU funding to 2020, but I challenge him to go further than that. Our farming industry needs safeguarding post-Brexit. The money we receive from the common agricultural policy needs to be ring-fenced. If the funding is done through the Barnett formula, we will lose out. That is the challenge for the Government. When they talk about agriculture and rural Wales, they need to safeguard the monies we receive now. Alternatively, the Minister can tell us exactly how he will replenish that money.

[Liz Saville Roberts]

I beg the hon. Gentleman to bring to bear what influence he can on the Welsh Government to get them to commit to maintaining the same level of income for farmers when that money is transferred from Westminster under the devolved processes, whatever they may be.

[Albert Owen]

That is the point I was making: it should not just go through the Barnett formula, because we would lose out by getting only a certain percentage. We need like-for-like funding, because when the European Union negotiates the amount, it looks at need in a way that is fairer to rural communities.

Connectivity is also important. In north-west Wales, and indeed in Ceredigion on the west coast of Wales, we suffer from a double whammy in being not just rural communities, but peripheral communities. Often a Cardiff or London-centric view predominates in the United Kingdom, so we have to fight harder for services and the connectivity that we deserve. I consider north-west Wales to be the heart of the British Isles. I do not see it as peripheral; it is only peripheral to someone looking up towards it from down south. It is the heart of the British Isles, because to our west is the island of Ireland and Northern Ireland, to our north is Scotland, and to our east is England. We are the heart of the British Isles, and need to start speaking with that confidence.

When there are roll-outs of programmes such as 5G, which we heard about in the Budget, it should be started and test-piloted in difficult rural areas, not just in the large towns and cities of the United Kingdom. That is the challenge for the Wales Office in the UK Government. Swansea deserves its connectivity, but so too does rural Wales. If the Government are serious about spreading wealth across the United Kingdom, they need to pilot projects in rural and peripheral areas.

--- Later in debate ---

[Guto Bebb]

I am absolutely delighted to welcome that comment. It was great to see the hon. Member for Wrexham there. In addition, I am engaging with north Wales MPs and there will be a roundtable session in Gwydyr House with the bid authors and north Wales MPs in due course.

The hon. Member for Ynys Môn (Albert Owen) made a very important point in highlighting the fact that growth deals are bottom up. The key thing is that the proposals from north Wales were coming in from local authorities representing the whole of north Wales. Our responsibility down here in Westminster—the responsibility of the UK Government—and the responsibly of the Welsh Government is to work constructively with the partners in north Wales.

This is the template for an approach for mid-Wales. One of the key things I am aware of as a UK Government Minister representing Wales is the importance of ensuring that we do not forget mid-Wales. One of the key things that we highlighted in the Budget is that, although of course we need to deliver a growth deal for north Wales—after all, in the context of this debate, a significant part of north Wales can undoubtedly be described as rural—we also need to deliver for mid-Wales. I want to be able to stand up and say categorically that we will have delivered growth deals for every single local authority in Wales. We have already delivered for 14 local authorities in south Wales. We are working with the six in north Wales, and we are opening the door to a deal in mid-Wales.

We passionately believe that such deals should come from the bottom up. That is why, in the discussions with the leader of Gwynedd County Council and the chief executive of Carmarthenshire County Council, and in the discussions that Lord Bourne, my fellow Minister in the Wales Office, had yesterday with the chief executive of Ceredigion Council and the vice-chancellor of Aberystwyth University, we were very clear that we do not think that the mid-Wales deal has to be confined to Powys and Ceredigion.

I am sure the hon. Member for Glasgow East (David Linden) is aware of examples in Scotland of counties involved in more than one growth deal. We are keen to ensure that if the proposers from mid-Wales say that they want involvement from south Gwynedd—Meirionnydd, for example—Dyffryn Teifi in Carmarthenshire or even north Pembrokeshire, that is something we can look at, because we want to work to deliver the growth deals that are needed in every part of Wales. If people are telling us that the way to do that is to expand or to work as two counties in mid-Wales, we will listen. I am pleased to say in the spirit of co-operation that, over the past few years, the relationship with the Welsh Government Minister for the economy has been extremely constructive.

One thing that has been highlighted in this debate is that we have an east-west issue in relation to economic development. I would argue—perhaps some Opposition Members would agree—that there was perhaps too much emphasis in the early years of devolution on strengthening ties within Wales, which was perfectly understandable. When a new institution is being created for Wales, there needs to be a coherence to Wales. But we also need to recognise the economic realities, including the links between Newport and Bristol, and the cross-border links in north-east Wales. We need to ensure we have a strong Welsh economy that is able to work with our partners in other parts of the United Kingdom.

The hon. Member for Ynys Môn said that Wales is not a peripheral region. I could not agree more. The north Wales growth deal can link to the northern powerhouse and the success stories that are Manchester and Leeds, and a sector deal for the nuclear industry could make a huge difference not just for north-west Wales, but for the entirety of the north Wales economy and the north-west of England economy. That shows clearly that we are not a peripheral region and that we have a huge contribution to make.

I want to touch quickly on the involvement of universities. The hon. Member for Ceredigion was absolutely right to highlight the importance of universities for economic development. He is fortunate to represent not one but two universities in his constituency. The contribution of Glyndwr University and Bangor University to the north Wales growth deal is an example of what can be done. I was pleased that Lord Bourne met the vice-chancellor of Aberystwyth yesterday, because universities will have a crucial role in any mid-Wales growth deal. I encourage the hon. Gentleman to highlight the importance of the university and further education sector in developing growth deals.

I am aware that time is short, so I will highlight some other issues that were raised in debate. Concerns were raised about broadband connectivity. Listening to the hon. Gentleman, I could be forgiven for thinking that I was listening to his predecessor. Broadband connectivity in Ceredigion is indeed a very serious issue, as it is in many parts of rural Wales, although there are some areas where that is not the case. For example, the connectivity in Aberdaron on the Llŷn peninsular, which is much better than the connectivity in the majority of my constituency, is an example of what can be done. Rural Wales can be served if there is a desire to serve rural Wales, but we need some honesty in this Chamber. For broadband connectivity to be supplied across Wales, there has to be a partnership between the private sector, the Welsh Government and the UK Government.

Back in September, I announced the £56 million of addition spending to be made available through the claw-back on the contract with BT, but it is disappointing that that figure was lower than the 11% secured for Wales in 2011 because take-up in Wales had been lower. There has been a lack of transparency in Wales about why and how the priorities for rolling out broadband were set. It is unacceptable that Ceredigion—an area with two universities, which can make such a contribution to our rural economy—has been so ill-served by the way the Welsh Government have rolled out the contract. We can rectify the situation, and we need to do so, but that can be done only if we work together.

I expected that the agricultural sector would be more of a key part of this debate. We understand the importance of the agricultural sector for Ceredigion and most of rural Wales, including Powys. The Government have gone a long way in trying to reassure the sector. First, we guaranteed that the funding will be in place until 2020. We also said that there will be comparable funding until 2022. I hear what the hon. Member for Vale of Clwyd (Chris Ruane) is saying about getting guarantees post-2022, but a funding guarantee until after 2022 would be a longer period of certainty than we would have had if we had decided to remain within the European Union. The farming community appreciates that guarantee.

The hon. Member for Ynys Môn made an important point, which I am happy to accept, about the importance of ensuring that our share of future agricultural funding is based on the historical trend, rather than a Barnett-based system. The Wales Office and Ministers representing Wales in the Wales Office will be making that case, but we have to do so with sensitivity because we cannot say to the Welsh Government, “This is a chunk of money for you, but you must spend it on this specific area.” If we did that, we would be accused of a power grab.

[Liz Saville Roberts]

Will the Minister give way?

[Guto Bebb]

I am afraid I cannot take an intervention from the hon. Lady because I am coming to the end of my speech.

This has been a constructive debate and the Wales Office is more than delighted to continue it with hon. Members. Our door is always open. The way we are working in north Wales and the way we have worked with the city deals in south Wales show what can be done when we work together on a cross-party, cross-governmental basis. I want to be part of a success story in mid-Wales to follow on from the success story in north Wales.