Oral Answers to Questions

Margaret Ferrier Excerpts

Wednesday 30th November 2016 Commons Chamber

The Secretary of State was asked—

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

1. What assessment he has made of the potential effect of the UK leaving the EU on the Welsh economy.

[Wayne David (Caerphilly) (Lab)]

8. What recent discussions he has had with his Cabinet colleagues on the potential effect on the Welsh economy of the UK leaving the EU.

[The Secretary of State for Wales (Alun Cairns)]

The Welsh economy approaches EU exit from a very strong position. Since the vote to leave the EU we have seen economic inactivity continue to fall in Wales while employment has risen to a record high. Businesses continue to show confidence in the economy, with new investment across the UK fundamental to prosperity in Wales.

[Margaret Ferrier]

Wealth inequality in the British state hits Wales hard, with Welsh gross value added just scraping 71.4% of the UK average. EU structural funds have been key to combating this home-grown unfairness. Will the Minister guarantee today continued future UK funding to replace in full the lost EU regional money?

[Alun Cairns]

The hon. Lady raises an important issue, and I would say that Wales has been the fastest growing part of the UK outside London since 2010. She makes an important point in relation to the future of structural funds. She will also appreciate that they are meant to be a short-term boost to the economy, but after 16 years and after £4 billion has been spent, west Wales and the valleys have 64% of UK GVA. I am sure we need to use this opportunity to be positive and do something better with similar structural support.