Devolved Administrations: Industrial Strategy

Lord Gardiner of Kimble Excerpts

Wednesday 17th October 2012 Lords Chamber

[Lord Roberts of Conwy]

To ask Her Majesty’s Government whether their industrial strategy is fully supported by the three devolved Governments.

[Lord Gardiner of Kimble]

My Lords, the Government’s industrial strategy sets out a long-term, whole-government approach to delivering economic growth. Although some measures will be UK-wide, economic development, including financial assistance to industry, is a devolved matter. Her Majesty’s Government lead regular discussions with the devolved Administrations to ensure that the strategy reflects this. This involves consulting devolved Administrations on key policies as well as sharing information and good practice on a regular basis. The Government support growth across the whole UK by introducing ultrafast broadband into Belfast, generating new investment in Scotland for North Sea oil fields, and bringing mobile coverage to 60,000 rural homes in Wales.

[Lord Roberts of Conwy]

I thank my noble friend for his Answer and, of course, compliment him on his elevation to the Front Bench on this auspicious day, when unemployment has fallen by 50,000. Bearing in mind the fact that the unemployment rate in those devolved government areas is higher than the UK average, and bearing in mind their dependence on the state and the public sector, does my noble friend agree that special measures should be taken by the Government to encourage the private sector in these areas? Can he assure me that the Department for Business, Innovation and Skills is collaborating closely with the devolved Administrations to that end, although they are of different political persuasions? That is very much in the interests of the United Kingdom as a whole.

[Lord Gardiner of Kimble]

My Lords, first, I thank my noble friend for his very generous and kind remarks. He is a great champion of Wales. I am delighted by the news this morning that employment has grown to its highest levels since records began in 1971. Indeed, in Wales, there has been an increase in total employment since April 2010 of 67,000.

The Government’s objective is to make the UK the best place to start, run and expand a business. The success of the private sector in all parts of the UK is key to the recovery, and 900,000 private sector jobs have been created in the past two years. I reassure my noble friend that we are working closely with the devolved Administrations. Regardless of political colour, the national interest comes first.

[Lord Stevenson of Balmacara]

I, too, welcome the noble Lord to the Dispatch Box and commiserate that it is not he but the noble Lord, Lord Marland, who is topping up his tan. I listened carefully to his reply to the noble Lord, Lord Roberts, but note that he has failed to explain exactly the detail of the industrial strategy of which he speaks. Without knowing that, it is hard to understand how he can make the judgment that it is fully supported by the three devolved Governments. Will he take this opportunity to confirm that he agrees with the Secretary of State of his department, who said recently:

“The Government lacks the compelling vision … to get the economy growing again”?

[Lord Gardiner of Kimble]

I thank the noble Lord for his initial remarks, but I have to say that the Government’s plan for growth is very clear and outlines 250 measures to deliver the four growth ambitions: the creation of the most competitive tax system in the G20, at the lowest level in the G7; as I said before, to make the UK the best place to start a business; to encourage investment and exports; and to create a more educated workforce that is the most flexible in Europe.

[Lord Elystan-Morgan]

My Lords, the Minister has assured the House that regular discussions take place with regard to devolved subjects. I am sure that the House will agree that that is most laudable, in that it in no way trespasses on the distinctiveness of the devolved Assemblies, but at the same time brings about as much cohesion as possible. However, perhaps I may ask him about matters that have not been devolved. Does the Minister recollect that when the legislation of 1998 was being considered by both Houses, solemn undertakings were given with regard to matters that were not devolved, whereby concordats would be formed so that there could be such a discussion, even in relation to matters that still remain under the authority of this House?

[Lord Gardiner of Kimble]

My Lords, I reassure the noble Lord that all matters, whether reserved or devolved, are regularly discussed with the devolved Administrations. As I said before, the whole purpose of what the UK Government and the devolved Administrations are doing is to work in the national interest to achieve greater economic growth.

[Lord Roberts of Llandudno]

My Lords, what discussions have already taken place with the Welsh Assembly Government to ensure that businesses in Wales have access to loans and the small-business grants that have been announced recently, and that in any promotion of this UK investment project, assistance is available to Welsh industry?

[Lord Gardiner of Kimble]

My Lords, across the United Kingdom, and in Wales of course, there is encouragement for that. In Deeside Enterprise Zone, for instance, the Government have agreed enhanced capital allowances, which will deliver up to 5,000 new jobs. Indeed, the Government are working very closely with the Welsh Government and have provided them with almost £57 million to help to bring broadband to everyone, and superfast speeds to 90% of Welsh homes and businesses. This is all very good news for Wales.

[Lord Wigley]

My Lords, I also wish the Minister well in his new responsibilities, but does he accept that when the devolution settlement was made, the fact that some aspects of economic policy were devolved to Cardiff, Edinburgh and Belfast was a reflection of the need to have flexibility in policy that reflects the needs and aspirations of the three devolved areas? In those circumstances, does he agree that there is two-way traffic on the question of co-operation and will the Government at Westminster support the devolved regimes in their policies, where those are seen as the priorities for those areas?

[Lord Gardiner of Kimble]

My Lords, as I said before, we will of course be sharing information with all devolved Administrations.

[Lord McConnell of Glenscorrodale]

My Lords, are the Government aware that unemployment has gone up in Scotland today, while it has gone down elsewhere in the United Kingdom? Will the Government have immediate discussions with the Scottish Government to ensure that the uncertainty that will now exist in Scotland over the next two years as we lead up to the referendum on Scottish independence does not lead to higher unemployment in Scotland due to uncertainty over investment?

[Lord Gardiner of Kimble]

My Lords, there are regular discussions; and, in fact, there has been an increase in total employment of 54,000 people in Scotland since the general election.