Support for the Welsh Economy and Funding for the Devolved Institutions

Debate between Liz Saville Roberts and Robin Millar

Tuesday 5th July 2022 Commons Chamber

[Robin Millar]

I certainly agree that we can do better. To be clear, I speak in this debate as a proud Welshman—Cymro balch, if I am allowed to say that in the Chamber—born, raised and schooled near Bangor. I have the honour of representing Aberconwy, which is by any measure one of the most beautiful parts of Wales, and indeed the United Kingdom. It should be no surprise that my constituency attracts hundreds of thousands of visitors from throughout the UK and overseas. Llandudno, the queen of the Welsh resorts; the natural splendour of Eryri, Snowdonia national park; Conwy castle, one of several UNESCO world heritage sites that we enjoy in north Wales and are happy to host; and a thriving hospitality and culinary scene—these are just some of the attractions that make Aberconwy the visitor success that it is.

I share the pride felt by so many of my constituents in this thriving sector, but I also share the concern of many that we are so dependent on tourism, and the concern that, for so many young people, the only chance of pursuing a high-skilled, well-paid career lies in moving away from their community. This pattern has been detrimental for many and to the future of many, and not least also to the viability of our precious Welsh culture and language—a language that I, like so many in all parts of the Chamber, wish to see flourish.

I had to move away from north Wales to develop my interests and career, initially as an engineer. In many ways, it is a typical north Wales story, but it cannot be right that our young people have to think in those terms—that to see themselves working, living and settling in north Wales, they must first move away; but then I notice, when I look at Wales’s economic figures, that weekly income over the last 20 years has essentially just about kept up with inflation. There has been no net increase. Why is that? It is a frustration, because Aberconwy is home not just to many of the UK’s finest visitor attractions, but to talent and ingenuity.

Just last winter, an analysis of Companies House returns identified Llandudno, the queen of resorts, as the entrepreneurial capital of the UK. More new companies were filed there than anywhere else. That has to count for something, and it certainly reflects the conversations I have with many young and ambitious people in Aberconwy. Each and every week when I am home in my constituency, I visit businesses and community groups, and I am always impressed by the entrepreneurialism, and the commitment to growing, creating and strengthening things. Whether we are talking about business, people, groups or even our communities, there is huge ability and interest in improving what we have.

As we have heard, talent is distributed throughout the United Kingdom, but opportunity is not. Creating opportunities in communities in every corner of Wales, and indeed the whole UK, is at the heart of this Government’s levelling-up agenda. That is why I welcome the record amounts of funding and investment coming to Wales from the UK Government. However, there are three frustrations that I would like to set out, and they speak to why levelling up could not be more urgent for communities throughout north Wales. It is a tragic fact that, after 24 years of devolution and a consistently Labour Welsh Administration in Cardiff, despite all the promises, all the opportunities for devolution and our vast economic potential, Wales has the lowest economic output of anywhere in the UK apart from north-east England, a region with its own unique challenges.

[Liz Saville Roberts]

I am listening to the hon. Member with great interest, because he is making some persuasive arguments, but does he agree that devolution for Wales has not equipped Wales with the tools to make a significant difference? We have seen Labour managing poverty in Wales, rather than having the means to make a difference. He talked about tourism. Does he agree that if we are to play to our strengths, we should have a tax on people staying in Wales—what is known as a tourism tax? That would surely be a way of improving our skills base, which would lead to better jobs, better qualifications and a better experience all round for communities in which there is tourism. Does he agree that we should play to those strengths, and that we need the means of doing that?

[Robin Millar]

The right hon. Lady’s intervention gives me an opportunity to make a really important point. I think that we have a fundamentally different view of the world. Effectively, she is referring to a deficit model, in which the deficit from poverty and need is something that must be filled. I come from a different perspective. I hold to what I would call an asset-based model. Yes, there are problems, gaps and shortages, but the way to deal with them is not simply to try to fill the deficit; it is to engage with and use the assets that are there.

I have spoken against the tourism tax. I feel very strongly that a tax placed on visitors who stay in hotels does nothing to address problems, or the behaviours of those who come to the area and wild camp, or do not even stay overnight, and who do not spend money in the local economy. I understand the sentiment behind the tax, but its motive is to make the money to fill or fix the deficit. We should instead ask: how do we work with communities and businesses to change the behaviour of visitors, address their experience, and address inappropriate behaviours in our area?

Our frustration comes from seeing that we have talent, but limited opportunities. That is compounded by our having one of the lowest income outputs of anywhere in the UK. On top of that comes frustration with some of the responses of the Welsh Labour Government. I say that in all sincerity. In a recent letter to leaders of local authorities in Wales, the Welsh Government Minister for the Economy wrote that

“the Welsh Government is unable to endorse the approach that the UK Government is taking on the Shared Prosperity Fund. This means, as we have consistently stated to the UK Government, that the Welsh Government will not deploy our own resources to implement UK Government programmes in Wales which we consider to be flawed.”

I, like many others, am frustrated by this approach. Surely it is counterproductive to second-guess how a UK Government funding stream for parts of the UK will be handled.