Wales: Economy

Lord Roberts of Conwy Excerpts

Wednesday 7th November 2012 Lords Chamber

[Lord Roberts of Conwy]

My Lords, I, too, welcome the noble Baroness to the Front Bench. I have already congratulated her on her appointment to the Wales Office.

I support the thrust of this Question expressed so well by my noble friend Lord German, especially the second half. It reflects the concern that lay behind a similar Oral Question that I asked about the Government’s industrial strategy on Wednesday 17 October, which drew the following reply from my noble friend Lord Gardiner of Kimble:

“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 … on key policies as well as sharing information and good practice”.—[Official Report, 17/10/12; col. 1491.]

We have more than a hint there of the nub of the problem which was rightly identified by the noble Lord who has just spoken: namely, the division of responsibility between the devolved Administrations and the UK Government. We also have the nub of the answer as far as Wales is concerned, which lies in close, constructive and effective co-operation between the two Governments. On the Welsh Government’s side, I congratulate them at the outset on their contribution to the fact that there has been an increase of 67,000 in total employment in Wales since 2010. This compares very favourably with an increase of 54,000 in Scotland over the same period, bearing in mind that Scotland has almost twice our population.

I also venture to praise the present Welsh Minister, Edwina Hart, for her genuine efforts to enlarge the vision of her department and the scope of its consultations, which now extend to Welsh Members of your Lordships’ House. Some of us have a great deal of experience relevant to her work and are certainly ready to impart any knowledge we may have that will further the interests of Wales. Having said that, I would not wish anyone to think that I am unaware of past failings on the part of the Welsh Assembly Government. The abolition of the Welsh Development Agency and the international brand that it promoted for Wales had a devastating effect on our inward investment efforts. The failure to collaborate with the Welsh Affairs Committee in its inquiry into inward investment was also regrettable. There must be a more co-operative relationship between the National Assembly and this Parliament, and that should be reflected by their respective Governments.

The United Kingdom Government’s assertion that they are profoundly aware of the UK’s full geographical economic dimension, including the economic interests of the citizens served by the devolved Administrations, is borne out by their UK-wide support for ultrafast broadband, for example. The Hitachi acquisition of Horizon Nuclear Power, which will benefit Anglesey and north Wales, was also a UK Government project. I understand that the prospects for a new nuclear power station at Wylfa on Anglesey are very bright.

I was glad to read in the Government’s response to the Welsh Affairs Committee’s report on inward investment of the close relationship established by the UK Trade and Investment section of the Department for Business with the Welsh Government, even to the extent of seconding two of its officials to the Welsh Government team. I also welcome the fact that the Minister for Trade, my noble friend Lord Green, and, indeed, the Secretary of State for Wales have offered to join Welsh Government trade and investment missions. That offer is not to be spurned and should be valued. Such co-operation is essential to successful future development. Isolation would be fatal to Welsh economic aspirations. This is something we must guard against constantly. There is always a tendency for England to go it alone now that the nations have their own Administrations, and a tendency for those Administrations to assert their separateness, but this divisive approach is not the best way to proceed. It is not in the best economic interests of Wales, nor is it in the best economic interests of the United Kingdom as a whole.