Welsh Affairs Debate

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Department: Wales Office
Monday 19th March 2018

(6 years, 4 months ago)

Commons Chamber
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Alun Cairns Portrait Alun Cairns
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As the hon. Gentleman says, about 60% of Welsh exports go to the EU. I am surprised by the simplistic approach that someone of his stature and understanding takes. He of all Members would recognise the complexity of supply chains. The real figure is that 80% of Welsh output goes to the rest of the UK, and there are then onward exports to the European Union and elsewhere. That demonstrates the complexity of supply chains, and he undersells himself by taking that simplistic approach.

Export figures are strong, as the hon. Gentleman is happy to highlight. Last year, we exceeded the £16 billion figure. Export growth to the EU rose by 12%, and the increase in exports to areas outside the EU was 13%. Inward investment remains strong, with investments from companies such as Ipsen Biopharm. It has invested £22 million in Wrexham to expand its facilities, creating 100 jobs. Over recent years, the amount invested locally has been close to £100 million. Spanish manufacturing giant CAF is investing £30 million in Newport producing railway rolling stock, creating 200 new jobs.

Toyota’s recent announcement that it will build its new Auris model in Burnaston is great news for the engine plant on Deeside. That demonstrates the complexity of supply chains, which I mentioned to the hon. Gentleman, and highlights the fact that Wales gains much from being part of the common UK market.

Mark Tami Portrait Mark Tami (Alyn and Deeside) (Lab)
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Clearly the Toyota announcement was extremely good news, but it was planned over a number of years. Does the Secretary of State agree that the company, along with others such as Airbus, has major concerns about the post-Brexit situation, particularly if we have tariffs?

Alun Cairns Portrait Alun Cairns
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I am quite surprised that the hon. Gentleman suggests that major investments such as that take place with such simplicity. They might have well have been thought of a number of years ago, but it takes a lot of hard negotiation to strike the final deal and gain a commitment to investment. We all recognise that global companies such as Toyota could take their investment almost anywhere, but it chose to bring it to the United Kingdom. I was in Japan just last August talking to Toyota about that investment, because of the ongoing influence it will have on any investment on Deeside. We have not yet won that for Deeside, but we are in a much stronger position because of Toyota’s commitment in Derbyshire.

I have also had the privilege of visiting Qatar and the US in recent months, to meet investors and seek to establish new relationships that will benefit Wales and the rest of the United Kingdom. The Welsh and UK Governments are developing a strong trading relationship with Qatar, and in six weeks the very first Doha to Cardiff flight will operate, making it far easier for investors from the region to trade in and with Wales.

--- Later in debate ---
David Jones Portrait Mr Jones
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The right hon. Gentleman has raised this question on numerous occasions, but sadly that is one of the paradoxes of devolution.

Mark Tami Portrait Mark Tami
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Further to that point, the Countess of Chester hospital was built to serve Chester and Deeside, yet I cannot have any view about it, despite the fact that a large number of people from Wales will attend that hospital.

David Jones Portrait Mr Jones
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That, too, is one of the paradoxes of devolution. Many hon. Members find their constituencies served by hospitals on the Welsh side of the border and, because of devolution, they are unable to make representations on behalf of their constituents.