Spring Budget 2024: Welsh Economy

Debate between Nia Griffith and Jessica Morden

Wednesday 17th April 2024 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I congratulate my neighbour, my hon. Friend the Member for Newport West (Ruth Jones), on securing this very important debate; in fact, I believe that this is the second year running that she has secured it. As always, she made her points well, as did all the speakers so far. I echo her comments on Gaza and the middle east. We share the city of Newport, and I know that that is a matter of great concern.

As my hon. Friend and neighbour set out, this is a Government clinging on to power, having presided over 14 years of managed decline. They lack the interest, vision and appetite to deliver the fundamental change that our country needs. We have had some excellent contributions from Members who will have had direct feedback from their constituents, be it on the doorsteps in places such as Monmouth, or in their surgeries. I certainly have: over the Easter recess we carried out a cost of living survey in Newport East, and people told us very strongly just how held back they feel by this failing Tory Government.

My hon. Friend put it well when she said that “never have a British Government asked their people…to pay so much for so little.” Having played fast and loose with the public finances, the Conservative party is passing on the cost of its incompetence to those who can least afford it just as public services, on which so many of them rely, are crumbling under the weight of its cuts. My hon. Friend the Member for Llanelli (Dame Nia Griffith) is quite right: the spring Budget is smoke and mirrors, and people are not taken in by it.

Let us take ourselves back to 2019, when those on the Government Benches stood on manifesto commitments not to raise taxes; to reduce debt; to reduce poverty; and to help people with cost of living pressures. Three Prime Ministers and five Chancellors later, and with the Tory chaos almost halving the Government’s parliamentary majority, those promises lie in tatters. As hon. Members have already said, it is the case, despite cuts to national insurance, which we support, that the income tax threshold freezes mean that taxes are rising at a record pace. They are now at a 70-year high, and rising in each year of the spring Budget’s forecast period. That will make households in Wales £700 worse off, as my hon. Friend the Member for Newport West said. I was very struck by what was said to me by a constituent I met in Magor on Saturday on the issue of the income tax threshold freezes, which was raised by my hon. Friend the Member for Llanelli. The constituent described to me how her small monthly pension was hit by the impact of that and how unfair that was.

[Dame Nia Griffith]

I am sure that my hon. Friend will mention what I forgot to mention, which is that pensioners do not pay national insurance, so they have had no benefit whatever from the NI cut.

[Jessica Morden]

I thank my hon. Friend for making that very pertinent point. There is a big impact on pensioners, as she has said.

The UK debt to GDP ratio is at its highest in 70 years, with no sign of falling. The number of people living in absolute poverty is expected to increase this year to 12 million, with 4.2 million children living in poverty. This year, 62,000 householders in Wales will face the Tory mortgage bombshell—which hon. Members have mentioned—as their fixed-term rates expire, with the average homeowner expected to face a £240 hike in their monthly bill. As hon. Members have said, this is the first Parliament on record for which living standards are set to be lower by the end than they were at the beginning. The Tory Government are breaking promises and breaking records—and all to the detriment of Welsh people struggling to make ends meet. The Prime Minister has joined his predecessor in backing the sort of enormous and entirely unfunded tax cuts that led to the swift demise of her premiership—this time in the form of the abolition of national insurance. Perhaps the Minister will explain to us in this debate, because the Prime Minister could not—he repeatedly failed to answer the question at Prime Minister’s questions today—what the Tory Government will cut to find the £46 billion needed every year for their new policy, or whether they plan to extend their tax-raising record by piling further costs on to Welsh working people.

Not only have the tired Tory Government lost any semblance of economic competence—driving down business confidence—but they have lost their moral compass. Over the last few days, my constituents Colin and Janet Smith have been sharing with the media the story of their decades-long fight for justice for their son, Colin, who tragically died aged seven, having contracted AIDS and hepatitis C from contaminated blood administered by the NHS. For years after his death they faced bullying, abuse and the loss of employment, due to the stigma surrounding his illnesses. I know the family very well, and the absolute tragedy of what he was put through. Members of the House will know that the Smith family’s story is not unique. They have campaigned tirelessly alongside so many others for the truth and for just compensation, so I would like the Minister to tell us why, despite the final recommendations on compensation having been delivered to Ministers by Sir Brian Langstaff, chair of the inquiry, more than a year ago, when he said the Government could get on with making the compensation payments, there is not a single word about it in the spring Budget. I think that is an absolute disgrace.

Welsh steelworkers are right to feel betrayed by a Government willing to countenance 3,000 redundancies across south Wales while our European steelmaking competitors make historic investments in green steel. The almost-overnight end to our virgin-steelmaking capability in Port Talbot is not an inevitability. Rather than relying on imports from across the world, exposing us to the same global risks that precipitated the energy crisis, Ministers must revisit the multi-union plan, described by Tata itself as credible, to work with our steelworkers towards a just transition to the greener future for steel that we all want.

As my hon. Friend the Member for Llanelli mentioned, a Labour Government in Westminster would invest £3 billion in green steel within the first term, protecting livelihoods and the future of our sovereign British steel manufacture, which is vital for our plan to make Britain a clean energy superpower by doubling onshore wind, tripling solar and quadrupling offshore wind.

It is not too late for the Government to change direction on this, and it would be particularly important for my hon. Friend the Member for Newport West, with the Llanwern steelworks in Newport. It would not be the first time a Conservative press release has sounded suspiciously familiar to Labour colleagues. Whether it is the narrowing of the non-dom tax loophole or the half-hearted levy on oil and gas giants, the Prime Minister appears to be slowly realising that the path to a fairer, brighter future for Wales and Britain is through the progressive policies of a Welsh Labour Government working with a Labour Government in Westminster.

The consequential funding that will flow from a UK Labour Government to Welsh public services will be critical. Importantly, my hon. Friend the Member for Pontypridd (Alex Davies-Jones) mentioned the cost burden on local government too. Our public services face intense challenges, particularly in the context of the value of the Welsh Government’s budget having dropped by £1.3 billion in real terms as a result of the Tories’ economic mismanagement.

Some progress was to be welcomed from the spring Budget. We have repeatedly called on the Government to get a move on with the new nuclear site at Wylfa. The purchase of the site is therefore good news, but we are still nowhere near seeing the prospect of clean energy and thousands of good jobs returning to Anglesey. Had they not dithered for five years, we could have seen the plant 50% complete, with up to 8,500 construction jobs under way, around 900 permanent jobs to follow and £400 million for the local economy in wages.

What we saw in the spring Budget was a Conservative Government without a proper plan to grow the economy, without an industrial strategy to match the ambition of our talented Welsh workforce and without the appetite for investment in a greener Wales. Those will only be achieved with a UK Labour Government working with a Welsh Labour Government and a Secretary of State for Wales who stands up for Welsh interests.

Cost of Living in Wales

Debate between Nia Griffith and Jessica Morden

Tuesday 22nd February 2022 Westminster Hall

[Jessica Morden]

Before the vote, I was talking about the soaring household gas and electricity prices and about how households in Wales and the UK would see their energy bills rise to nearly £2,000 a year from April, when the energy price cap lifts. I agree with the excellent intervention by my hon. Friend the Member for Neath (Christina Rees) about the interventions of the Welsh Labour Government in Cardiff and how they have used the levers at their disposal to do all they can to ease the cost of living crisis for Welsh people. I will talk more about that later.

The proportion of households spending at least 10% of their budget on fuel bills will be trebling from 9% to 27% and, on top of that, taxpayers will be asked to foot an estimated £120 a household to shoulder the extra costs of the energy companies that have gone under in the last year. Based on that increase alone, National Energy Action Cymru estimates that 280,000 households in Wales could be in fuel poverty come April. That is a further 100,000 households since October 2021, and all that at a time when pay is not keeping pace with rising prices. When we factor in inflation, average weekly pay packets across Britain fell in December by 1.2% and TUC research suggests that real wages are set to fall by £50 a month this year, after taking into account the cost of living, with incomes after tax forecast to drop by 2%. That represents the biggest fall since records began in the 1990s. Although the national living wage may be going up, the proliferation of insecure, casual jobs and cuts to in-work benefits mean that a higher minimum wage does not mean higher living standards.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend agree that, although many people think of benefits as going to people who are not in work, there are in fact a lot of benefits that go to people who are in work? The fact is that there have been swingeing cuts to tax credits since 2010, and even though there was some adjustment to the taper last year, that alone is not enough. With rampant inflation, there now needs to be a real effort to make sure that those tax credits are actually worth something, to make it worthwhile to be in work. At the moment, people face horrendous poverty because of that accumulation of 12 years of cuts.

[Jessica Morden]

I thank my hon. Friend for that intervention. She is absolutely right: the levels of in-work poverty are really terrifying, and it is those on the lowest incomes who are feeling the squeeze most acutely. As she said, that is made worse by the Government’s £20 cut to universal credit in the autumn, which impacted 8,630 households in my constituency. Research from Wales TUC and the Bevan Foundation suggests that Wales was particularly hard hit by the cuts to universal credit and working tax credit, especially when it comes to the in-work poverty that she mentions.

Of the 280,000 individuals in receipt of universal credit in Wales, around 104,000, or 37%, are in work—the highest proportion of any nation or region in the UK. In April, universal credit will increase by 3.1%, just as inflation is predicted to peak at 7.25%. As the Child Poverty Action Group has highlighted, that means that the real value of universal credit for families with children will fall by around £570 a year on average.

Organophosphate Sheep Dip

Debate between Nia Griffith and Jessica Morden

Wednesday 10th June 2015 Westminster Hall

[Jessica Morden]

I thank the hon. Gentleman for that important intervention.

[Nia Griffith (Llanelli) (Lab)]

The shadow Secretary of State for Health, my right hon. Friend the Member for Leigh (Andy Burnham), has indeed called for an investigation into exactly what was known in the ’80s and ’90s before the use of such substances was finally discontinued, and into whether there was any form of cover-up, as the hon. Member for Strangford (Jim Shannon) suggests.

[Jessica Morden]

I thank my hon. Friend for that intervention. I will return to this at the end of my speech, but my constituent Stephen Forward found it incredibly difficult to get his medical records. Many others seem to be in the same situation as the constituent of the hon. Member for Strangford (Jim Shannon), so the matter needs to be considered.

At the time of compulsory dipping, mild warnings were given on sheep dip packaging, but the Government and inspectors did not warn farmers about exposure to the solution or advise that any precautions or protective clothing be worn during the dipping of sheep. The sufferers of OP contamination believe that the Government should have provided explicit advice and rules on the safe use of OPs, including rules on proper protective clothing.

The crux of the debate, as has been said, is that while sheep dipping came to an end in 1992, the survivors’ groups and other campaigners suspect that the Government must have been aware of the risk earlier. In 1990-91 an inquiry was carried out by the Health and Safety Executive into sheep dipping on behalf of the Ministry. The full report was released to Ministers in 1991, but it was not made public until Tom Rigby put in a freedom of information request. As The Guardian reported in April, the FOI disclosure shows that Government officials did know of the dangerous health risks to farmers using this chemical, but they still did not end its compulsory use.

The report set out concerns about the cumulative health impact of long-term and repeated exposure to organophosphates and criticised manufacturers for providing inadequate protective clothing and unclear instructions to farmers. It is also said that at some time in the 1980s Ministry inspectors were told not to go within 14 feet of sheep dip when supervising, which also needs investigating. It is important to remember that at the time, the then farming Minister demanded that local authorities clamp down on farmers who refused to use the chemical. It was another year, though, until sheep dipping was no longer required by law. As Stephen said:

“We were given no training or advice about how to use the chemicals, just told to get on with it and, if not, we would be prosecuted.”

Today, my constituent, Stephen, and the Sheep Dip Survivors Group would like from the Minister full disclosure of all the documentation on this issue from that time, so that the campaigners can examine it. Campaigners also want a full inquiry, independent of the Department for Environment, Food and Rural Affairs, the Committee on Toxicity of Chemicals in Food, Consumer Products and the Environment, and the Veterinary Medicines Directorate, that looks at this matter afresh, so they can see who in Government knew what, when, and why they might not have acted on that information.

Parliamentary Under-Secretary of State for Welfare Reform (Disabled People)

Debate between Nia Griffith and Jessica Morden

Tuesday 28th October 2014 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

I rise to speak in this debate because I feel very strongly that every disabled individual, no matter what their disability, deserves to have the utmost respect and to be valued for their skills. We should be doing all we can to break down the very real barriers that prevent disabled people from taking a full part both in the workplace and in social activities.

Before I turn to the concerns of disabled people in my constituency about the effect of Government policies on them, I want to pay tribute to the Llanelli Disabled Access Group. Sadly, it has had to wind up its activities this month, but over the past few years it has done a really good job advising people on how to adapt both public and private buildings, inspecting those buildings and giving out awards for good practice. The group’s work has been excellent and it will be sorely missed.

I will briefly mention PIP assessments, which I am extremely worried about. I have several constituency cases of great concern, because people are in real financial difficulties. One constituent applied for PIP in September 2013 and had the medical assessment in December, but did not finally receive the benefit until September this year. Another applied in July 2013, but had not even had the medical assessment by June 2014. People are therefore having to wait a whole year. After having been to an assessment, they are very often told to go for another one. They ask whether they should go to it and are told that they should not, because they have already been to one, but they then get a letter saying that their benefit has been cut off anyway. These sorts of things must really be put right. I hope that the Minister with responsibility for disabled people will make a real effort to get such things right for these people.

[Jessica Morden (Newport East) (Lab)]

Does my hon. Friend agree with constituents of mine who have asked me to convey that the repeated changes are hitting disabled people in multiple ways—the year-long wait for a PIP decision, or being hit by the bedroom tax—and really terrifying them? Does she agree that we should never underestimate the real fear they experience during a year of waiting for such support?

[Nia Griffith]

I very much agree with my hon. Friend. There are certainly some very real concerns, and I know that many of my constituents are very worried about what will happen during the transition from DLA to PIP. We obviously very much hope that the Government will sort these things out long before our constituents are put through the process.

I want to express very real concerns about people with degenerative conditions being put in the work-related activity group. It is terrible to have a degenerative condition—it is horrible to have a sort of life sentence—but it is worse to be constantly called in. The Minister says that that is to see whether they need extra help, but they may already receive the highest level of support, so that is rather difficult to believe. They should be exempted from repeated assessments.

I want to refer to the Welsh Affairs Committee’s report in which we detailed several concerns about the Work programme in Wales. It has a very poor rate of success in Wales, with only one in 20 people in the disabled category being found a position. That success rate of 5% is disgraceful. It does not compare favourably with the rate of 7% in Britain as a whole, and it certainly does not compare favourably with that for able-bodied people. Oxfam Cymru described some appalling practices:

“People who were seen as furthest away from the labour market were de-prioritised and only got any support at all after having very strong local advocacy.”

It also referred to the “absence of personalised support”. The then Work and Pensions Minister, the hon. Member for Fareham (Mr Hoban), told us:

“Work providers…need to improve their employer engagement effort. They need to increase the supply of jobs that are available to people who have been out of work for some time.”

The Work and Pensions Committee called for a national action plan, before the end of 2013, to engage employers in the Work programme. Will the Minister tell us what progress has been made in getting better engagement from employers, and give us categorical assurances that no such approaches to employers involve employing anybody on less than the minimum wage? We are so concerned about the comments of the Minister for Welfare Reform because we feel that they may betray a hidden Government agenda. That is why we need such assurances.

As my right hon. Friend the Member for Stirling (Mrs McGuire) explained so well, there has been a concerted attack on disabled people, and talk of swingeing cuts to the incomes of those who are already among the poorest in society but who are portrayed as scroungers. Sadly, there has been a rise in the number of incidents of hate crime. There is a real responsibility on everybody in government to do their utmost to combat negative images and ensure that we give disabled people the respect they deserve. We should do all we can to enable them to fulfil their potential, whether in the workplace or in other spheres of their lives.

Asian Restaurateurs (Immigration Enforcement)

Debate between Nia Griffith and Jessica Morden

Wednesday 2nd April 2014 Westminster Hall

[Nia Griffith]

That is a good point. It was distressing to hear some of the stories that we heard last week, which is why I have secured the debate. The meeting that was held last week brought a delegation of Asian restaurant owners from south Wales to the Houses of Parliament for a meeting arranged by my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty). He had invited representatives from the immigration enforcement service to attend, but they were unfortunately unable to do so at short notice. However, my right hon. Friend the Member for Delyn (Mr Hanson), Labour’s shadow Immigration Minister, attended, and I am grateful for his presence today, even though the rules of debate mean that he does not have an opportunity to make the case from the Opposition Front Bench.

As my right hon. Friend the shadow Minister said last week, we all agree that we need strict border security and proper enforcement of immigration rules, but the way in which some Asian restaurant owners have been treated by immigration enforcement officers is nothing short of disgraceful, and it is damaging to business. Times are tough, so to have immigration officers arriving at 7 o’clock on a Friday evening, causing distress among the customers, slamming the doors and handcuffing the chefs before they can even turn off the cookers is simply not acceptable. It causes not only immense financial loss on the evening in question, but irreparable damage to the reputation of that restaurant, particularly in a small town, and it will take years to rebuild customers’ confidence in returning to the restaurant. That is an acute embarrassment. Sadly, in some cases, it was even found that there were no substantive grounds for going there in the first place, so it was a complete waste of taxpayers’ money.

The debate coincides with the publication last month of the report by the independent chief inspector of borders and immigration on the use of the power to enter business premises without a magistrate’s search warrant. The report makes the point that two thirds of visits to business premises lack the necessary justification. Although the report focuses on a particular issue, it highlights more general points, such as widespread non-compliance with the guidance and lack of oversight procedures by senior management, who seem to have quite limited knowledge of the power as it is being used in practice. The report highlights visits on purely speculative grounds and inadequate staff training. It mentions that significant numbers of staff and management were either ignorant of, or choosing to ignore, the guidance. It also highlights a lack of understanding of what constitute suitable grounds for a visit, and gives an example of how an allegation should be backed up by any available data from, for example, Her Majesty’s Revenue and Customs.

[Jessica Morden (Newport East) (Lab)]

My hon. Friend talks about restaurants, but shops are also getting caught up in the problem. A judge recently threw out a case relating to a business in my constituency, and when the business was finally awarded costs, it received a fresh visit from immigration enforcement officers the next day. Although we all want the authorities to carry out their jobs properly, does she see how a business might feel particularly targeted in such circumstances?

[Nia Griffith]

My hon. Friend describes a distressing case. That procedure being repeated unnecessarily was not only distressing for the shop owner but a waste of public money. In fairness, the inspector says in his report that the Home Office began to look at procedures that he was highlighting as he carried out the inspection, but there is clearly a lot of work to be done in that respect. Last week, we heard about the distressing nature of the raids. We also heard about immigration officers inspecting documents, saying that they were okay and then returning two weeks later to say that they were not okay. If the immigration officer himself or herself cannot identify the documents, it puts the restaurant owner in a difficult place.

The Asian Catering Federation says that the problem applies not only to Indian restaurants but to Chinese takeaways and Malaysian, Sri Lankan, Thai, Vietnamese, Pakistani and Japanese restaurants. The federation stresses that it wants to co-operate and that the matter is extremely important to it.

I turn briefly to what needs to be done. First, there must be continued dialogue with the restaurant owners. The federation said that whereas previous visits had taken the form of terrorist-type raids, some progress had been made. None the less, what restaurants are still experiencing—the shutting down of restaurants at peak time, and the aggressive approach of the enforcement officers, who give them no opportunity to explain to customers what is happening or even to answer the phone—has been extremely damaging to their businesses. That is the first thing: we need continued dialogue, because law enforcement is always better with collaboration and not antagonism.

Secondly, the concerns in the report clearly must be addressed. Thirdly, the whole issue of reasonable grounds for visits must be looked into: why have these visits been decided on in the first place? My hon. Friend the Member for Newport East (Jessica Morden) gave a clear example relating to that. The Asian Catering Federation wants to co-operate and give the required information, but it must be done in a way that works for businesses, as well as for the immigration enforcement service.

I would like the Minister to look into the matter thoroughly and take very seriously the distress and problems caused to the industry, which is a phenomenal success story in bringing money into the British economy. I hope that she tries to find ways in which immigration enforcement can be properly carried out without disruption to many businesses that, in tough times and particularly in less well-off areas, are finding it difficult to keep going.

Women in Wales

Debate between Nia Griffith and Jessica Morden

Tuesday 16th July 2013 Westminster Hall

[Jessica Morden]

In terms of public sector employment and cuts to it, my hon. Friend is right. I will mention that later.

Let us look for instance at tax and benefit changes. The coalition Government and Ministers at the Department for Work and Pensions have consistently described their welfare cuts as fair. Clearly, they are unaware of or are ignoring the disproportionate impact they are having on women in Wales. A recent Office for National Statistics study on the effect that benefit and tax changes have had on incomes by household types demonstrates the negative financial consequences for women and families. That study, which covered the financial years 2010 to 2012, shows that a lone parent household with dependent children is £2,248 worse off. We have already established that the vast majority—95%—of lone parents in Wales are women. For other families, the situation does not get any better. A household with two adults and two children is nearly £5,000 worse off. The stress on parents who are trying to accommodate such an income fall, bearing in mind the huge hike in living costs, adds a great deal of pressure for people who are already working hard to keep their heads above water.

A recent report by the TUC showed that most jobs created since the recession have been in low-paid industries such as retail, the service sector and residential care. That was borne out by the ongoing inquiry by the Welsh Affairs Committee into the Work programme. Nearly 8% of the 587,000 net new jobs since June 2010 have been in sectors where the average pay is £7.95 an hour or less. Figures from the Office for National Statistics show that long-term unemployment has increased by nearly 100,000 since May 2010, and a shocking 86% of that increase is among women. Young Welsh women are particularly struggling in the labour market, with one in five out of work. In the figures released in June, the overall unemployment rate in Wales remained unchanged at 8.4% but the number of unemployed women rose again.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend recognise that there is a particular problem for young mums in Wales? According to the House of Commons Library, a couple with a joint income of around £24,000 will lose £1,300 in benefits as a result of the changes to child trust funds and tax credits, particularly the baby element. An awful lot of people in Wales, including many of my constituents, come from households with a joint income of around £24,000. Young mums will be particularly vulnerable and will have very little money to spare for their children.

[Jessica Morden]

My hon. Friend makes a valid point. Young families, in particular, will be hit by the cumulative impact of the loss of the child care element of tax credits, the child trust fund and maternity grants.

In Wales, most part-time jobs are undertaken by women; 27% of public sector employees work part time and 85% of those are women. Although it is true that many women want to work part time, many others have no choice.

Under-occupancy Penalty (Wales)

Debate between Nia Griffith and Jessica Morden

Tuesday 22nd January 2013 Westminster Hall

[Jessica Morden]

I agree with my hon. Friend and I will come on to make those points. Again, the study by Bron Afon in Torfaen highlights such cases.

Faced with no social housing and the need to stay in a community, it is hardly surprising, but none the less shocking, that one of the findings of a survey of social housing tenants by Bron Afon was that some tenants had concluded that the only possible solution for them was to eat two meals fewer a week to make up the shortfall. They felt that that was the only area on which they could economise.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend not think that realistically many families are going to fall behind with their rent, with the result that they will find themselves moved into smaller properties or, at the end of the day, homeless? What does she think that our local authorities can possibly do with their limited resources to deal with a sea of people who will have nowhere to go?

[Jessica Morden]

I thank my hon. Friend for that point. It is true that housing associations, local authorities and the Welsh Assembly will be under stress because they will not be able to mitigate the effects of this policy.

With a chronic shortage of available housing, many tenants appear to feel that there is no alternative but to be forced into arrears or to resort to desperate measures such as payday loans or loan sharks. Families will be forced into financial difficulty and rent arrears. Steve Clarke, chief executive of the Welsh Tenants Federation, estimates that 10% of tenants who will be affected are already indebted to their landlords who are seeking repossession orders. The double whammy of rent arrears and the increases could mean that 4,000 present themselves as homeless. This is against a backdrop of food banks in Newport giving out hundreds more parcels a month and food crime up 26% over the past two years. We are talking about people stealing washing powder.

The Government appear to think that people will find it easy to get extra hours of work or to find an elusive job. They think that lone parents with small children should go out and seek lodgers. In fact, the findings of the hotline of Community Housing Cymru— “Your benefits are changing”—found that 13% of people who rang would consider downsizing and 8% might consider a lodger. However, 79% said that taking on a lodger or moving were not suitable options and that they would apply for discretionary housing payments.

I believe that £7 million has been allocated to Wales, which faces a potential loss of £25 million. That is the Government’s answer to those who cannot move. There is a limited amount of money from the Government towards those payments, but once it has been used, no other payments can be made. I take the point that was made earlier about the fact that there has been no clarification of how the money will be spent. The deserving might miss out if they happen to be in need when the fund has been exhausted. There has been no compelling analysis of the impact that the changes will have on individuals, and the Government’s response of setting a finite budget without knowing whether it will be sufficient is as callous as the bedroom tax itself.

Newport Passport Office

Debate between Nia Griffith and Jessica Morden

Monday 25th October 2010 Commons Chamber

[Jessica Morden]

I appreciate my hon. Friend’s point and thank him for making it.

Putting people out of work is not something that should ever be done without absolutely every alternative having been examined. In this case, the evidence for that has not been supplied to me, to my hon. Friend the Member for Newport West or to the unions, and that is not acceptable.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend agree that in addition to the loss of service to the people of Wales, it makes absolutely no economic or environmental sense to be centralising offices rather than keeping them in a large number of geographical locations?

[Jessica Morden]

I strongly agree with my hon. Friend about the need to spread jobs across the country, which was certainly the policy of the previous Government.

If the office were to close, as well as the effect on people’s lives and families, it would have a devastating effect on Newport, where traders are already reeling from the loss of shops, with major high street retailers Marks and Spencer, Next and Monsoon leaving the city centre. The passport office employs more than 250 people right in the heart of the shopping centre. Their custom supports other local businesses, and people who travel to Newport to get their passports often spend the four-hour wait shopping. The loss of this office would leave a gaping hole in the centre of the city. Why does the Minister believe that the private sector is going to step in and provide enough jobs to cover the job losses given that some of the private sector is leaving the city centre as well?

It is a bit ironic that the heads of both Marks and Spencer and Next signed the letter to the Chancellor last week urging cuts and suggesting they were up to the job of filling the gap. It does not bode well for the future that they do not practice what they preach, given that they are leaving our city centre. In fact, that is a case in point of the division between the private sector and the public sector being false. Private businesses have much to lose if the jobs in question are lost in the city centre, and that is precisely why people in shops and businesses are joining the marches and signing the South Wales Argus petition. They want to keep the city centre alive.

Tolls (Severn Bridges)

Debate between Nia Griffith and Jessica Morden

Wednesday 23rd June 2010 Westminster Hall

[Jessica Morden]

I thank my right hon. Friend for his intervention. I agree with him. Progress was made on the method of payment of tolls by the previous Minister and it would be helpful if this Minister could confirm exactly when debit and credit card payments will begin and that the card-handling charge will not be passed on to the traveller. I would not expect Tesco to charge me more for paying by card, and I do not see why the bridges should be any different.

That brings me to the impact of the tolls on business in south Wales. The Severn crossing tolls, which are felt by many people to be a tax on entering Wales, are the highest in the UK for all but the largest vehicles. Light goods vehicles pay £10.90, compared with £2.00 for the Dartford crossing and £4.90 on the Humber. The Skye and Forth bridges are free. Heavy goods vehicles must pay £16.30, but on the Humber the charge is £10.90 or £14.60, depending on size. The Dartford crossing charges just £3.70 per heavy goods vehicle, and the Forth and Skye bridges are free.

An example in my constituency of the burden of the tolls is given by Owens Road Services, a long-standing Welsh company with a base in Newport that represents 1% of the total heavy goods vehicle traffic on the crossing. Owens pays £16,000 a month by standing order account and over £200,000 a year. The annual toll increases just come off the company’s bottom line; they are not passed on to customers because contracts have to be renegotiated and times are hard. The crossing represents a charge on the Welsh logistics industry that is not paid by competitors in England.

[Nia Griffith (Llanelli) (Lab)]

I congratulate my hon. Friend on securing the debate. The figures that she has cited illustrate clearly what a burden the tolls are on business. Owens, which also employs many people in my constituency, is really struggling. There is a very fragile situation economically now. Does my hon. Friend agree that we need to have every measure in place to improve the opportunities for businesses to relocate to places such as west Wales, where we know that we need to do as much as we can to help the private sector to grow?

[Jessica Morden]

I thank my hon. Friend for her intervention. I agree with her and hope that the Minister will pick up her point in his closing remarks. The industry is already struggling, with more than 3,000 heavy goods vehicle drivers claiming jobseeker’s allowance in Wales alone.

The previous Government froze the tolls on the Humber crossing after a study of the impact on residents and businesses. There has been no study of the Severn that I am aware of, so please could the Department for Transport work with the Welsh Assembly Government to initiate one?