Wales: Regional Development Funding

Nick Smith Excerpts

Tuesday 7th May 2019 Westminster Hall

[Nick Smith (Blaenau Gwent) (Lab)]

I thank my hon. Friend the Member for Aberavon (Stephen Kinnock) for securing this important debate. The future of regional funding is crucial for Wales, and in the past it has been serious money. Wales has received more than £3.5 billion in European Union funding since 2000, and that money has made a difference. It has been a big boost for projects in Blaenau Gwent. There was the £77 million to support the dualling of the heads of the valleys road; there was the £7.5 million to help improve the railway line between Ebbw Vale and Cardiff; and there was a further £7.3 million to help build the new-ish Blaenau Gwent learning zone. Those important investments have helped many people to travel to work or to get the skills and qualifications they need. However, there is still much to do to help create opportunities for all our people. To do that, we need significant further investment. This funding needs to be in the pipeline and ready to go as soon as possible.

As my hon. Friend the Member for Aberavon said, given the recent extension of article 50 we need some clarity about the Treasury guarantee. In Blaenau Gwent we need three specific things: improvements on our railway line to Cardiff, with four trains an hour; road upgrades to the south and to the west; and the Welsh Government’s Tech Valleys project to be supported through a dedicated training centre that will equip people for the jobs of the future. The eastern valleys and Blaenau Gwent deserve their fair share from the new fund. After losing coal and steel, our valleys are taking time to catch up with the rest of Wales and the rest of the UK. Both the UK Government and the Welsh Government need to prioritise our communities’ industries, which previously powered not just the UK’s economy but the world’s economy.

Finally, the EU’s structural funds were not meant to be a replacement for a UK-wide regional policy but, wrongly, that is what they became. I therefore urge the Government to make two commitments: to ensure that areas such as Blaenau Gwent get a fair deal out of the shared prosperity fund; and to ensure that in future those areas also get the capital spending they need from other investing Departments, such as those responsible for transport, business and culture.

--- Later in debate ---

[Chris Ruane (Vale of Clwyd) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Graham. I, too, extend my gratitude to my hon. Friend the Member for Aberavon (Stephen Kinnock) for having secured the debate. Perhaps more importantly, I am grateful to him for having sponsored the “not a penny less” report through the all-party parliamentary group for post-Brexit funding for nations, regions and local areas. That report has informed the debate throughout.

This is the second debate on the shared prosperity fund over the past six months; the previous one was secured by my hon. Friend the Member for Wrexham (Ian C. Lucas). There were nine Labour speakers at that debate in November, and 11 are here today. The fact that so few Conservatives have attended speaks volumes about how important they view the shared prosperity fund for Wales as being. [Interruption.] Well done to the hon. Member for Montgomeryshire (Glyn Davies).

“Not a penny less” has been mentioned by virtually every Member who has spoken today. Wales is home to 5% of the United Kingdom’s population but receives 23% of European funding sent to the UK; “not a penny less” has been mentioned by every Member, and that is the level of funding that we want in future.

It is not only Wales that is concerned about the shared prosperity fund. There have been 177 written parliamentary questions about the fund over the past couple of years, many of which centre on the lack of consultation and detail that has been coming out—or, rather, not coming out—of the Wales Office, the Treasury and other Departments. We were promised a consultation in 2017, but it did not happen. We were promised a consultation in 2018, but by the end of that year it had not happened. As we speak, that consultation is nowhere in sight. We do not just need to secure the level of funding that we have received in the past.

[Nick Smith]

My hon. Friend is making an important point about the consultation. Does he agree that it is important that the consultation occurs as soon as possible, so that it can be fed into the comprehensive spending review and so that Wales can get its fair share?

[Chris Ruane]

I agree entirely. I am not sure what the Government are hiding, or why they cannot be open and transparent with the people of Wales.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Wales (Kevin Foster)]

It is a pleasure to serve under your chairmanship, Mr Brady. I will finish a minute early to allow the hon. Member for Aberavon (Stephen Kinnock) to respond to the debate. I congratulate him on having secured this debate, and I congratulate the hon. Members who have contributed today, showing their pride in, and passion for, the communities they represent here at Westminster. In particular, I thank those hon. Members who have welcomed me to my new post over recent weeks, and with whom I have already enjoyed discussions. My door is always open to those who want to engage constructively with the Government on issues that affect Wales and their constituents.

Although I have been in the Wales Office for only just over a month, I have managed to travel across the nation, so the issues raised today are already familiar. Particular highlights of the past month have been, first, the visit to Tata Steel in Port Talbot, in the constituency of the hon. Member for Aberavon. There, I heard first hand about the exciting prospects for carbon capture and not just storage but use. I was also in Monmouthshire recently to talk with the local authority about proposals for a Chepstow bypass to cut congestion through the town, improve economic growth and link our Union more closely, given that the bypass will literally cross the English-Welsh border. Only last week in north Wales, I met the innovative telecommunications business Moneypenny—familiar, I am sure, to the hon. Member for Wrexham (Ian C. Lucas)—which shows how Welsh firms compete on the global market.

I pay tribute to the hon. Member for Aberavon in his role as chair of the all-party parliamentary group for post-Brexit funding for nations, regions and local areas. From what he has said today, it is clear that he is passionate about that issue, as are his colleagues who have also spoken. That is why, as he mentioned, my right hon. Friend the Secretary of State for Wales met him and colleagues from the APPG on 11 March to discuss post-Brexit regional funding. I hope that the hon. Gentleman and his colleagues found the meeting helpful and that it reassured him that this Government are taking future regional funding in Wales seriously.

[Nick Smith]

I congratulate the Minister on his role, and say “Well done” for travelling around Wales and hearing people’s concerns about the future. When will the consultation on the shared prosperity fund begin?

[Kevin Foster]

I thank the hon. Gentleman; I will come on to the shared prosperity fund in a moment. Of course, if he invited me to visit his beautiful constituency of Blaenau Gwent, I would be more than happy to add it to my list of travels.

At this point, it is important to look to the future and at what the Government have committed in regional funding. In our 2017 manifesto, which I am sure was a popular read for everyone in this room, we set out our proposals for a UK shared prosperity fund to reduce inequalities between communities across our four nations. The UK’s shared prosperity fund seeks to provide the opportunity to move away from the old bureaucratic EU model, and to design a future regional funding model that truly benefits people across our United Kingdom in a way that reflects the specific needs and strengths of its different parts.

--- Later in debate ---

[Kevin Foster]

I thank the hon. Gentleman for his constructive intervention. I am more than happy to accept the invitation, although I have not been short of north Wales Members of Parliament wanting to come and see me. I have already met the hon. Member for Arfon (Hywel Williams) and the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), and spoken with my hon. Friend the Member for Aberconwy (Guto Bebb). As I said at the start of my speech, my door is always open to those who want to talk constructively, and I hope to meet on their patch as well, if possible. Certainly, I am more than happy to engage with Members of Parliament on these issues.

[Nick Smith]

The Minister seems reluctant to give us a date for when exactly the consultation will begin, but does he agree that it should begin, and finish, before the comprehensive spending review is delivered?

[Kevin Foster]

I thank the hon. Gentleman for his further intervention. As I said, I do not want to get into specific dates, but I am clear that the spending review will set out how we approach the fund in the future. I am not surprised to see such passion. We will ask people across Wales about the size, structure and priorities for the fund, and that will develop as we approach this year’s crucial spending review. Given the continuing debates about our EU exit, it is clearly hard to give a specific date, although, as the hon. Gentleman knows, constructive discussions are ongoing between our Front Benches as we speak.