Leaving the EU: Infrastructure in Wales

Nick Thomas-Symonds Excerpts

Tuesday 17th January 2017 Westminster Hall

[Stephen Doughty]

We do not always agree on everything, but I absolutely agree with the hon. Gentleman on that—particularly when we see very different visions emerging from members of the Cabinet as to what a post-Brexit UK and Wales might look like. We heard the Chancellor of the Exchequer suggest in Germany that the UK is going to have a race to the bottom and be a completely deregulated tax haven on the fringes of Europe. That is not what I believe the people of Wales voted for. They voted for a strong economy with strong rights. They might have had different views on immigration or the democratic deficit there has been in parts of the EU, but they did not vote for a race to the bottom or for us turning into some sort of Gibraltar or one of our overseas territories on the fringes of Europe.

Leaving the EU will have a significant impact on the funding and development of infrastructure in Wales. We all know of examples in our constituencies of where European funding has delivered results, whether that is in community facilities in Butetown in my constituency, road infrastructure or science and innovation in our universities. We have no clear answers as to what will happen to that infrastructure support for Wales post-2020 and what will replace it. Businesses and investors need certainty about the infrastructure and environment that will support their long-term decisions, so it is vital that we have greater clarity. We need clarity in particular on issues such as loans made by the European Investment Bank, which I will come on to, and the specific assessment criteria that will be used to guarantee funding for projects signed after the autumn statement but while we remain a member of the EU.

I am sure that many hon. Members will mention individual projects. I will give some examples. EU funding in recent years has supported many infrastructure projects—for example, through £40 million towards Swansea University’s new Bay campus; nearly £4 million towards the development of the Wales coastal path; £9 million towards Rhyl harbour; and the dualling of the A465, the “heads of the valleys road”. Many prospective infrastructure projects are yet to be properly finalised, such as the Swansea Bay city deal, the North Wales growth deal, the tidal lagoons and the South Wales metro, which I raised in a previous debate and is of great concern to my constituents in Cardiff South and Penarth. Of course, the uncertainty around those projects has not only been caused by the referendum result; there are other factors at play, but that is a crucial part of whether those projects go forward.

[Nick Thomas-Symonds (Torfaen) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Flello. My hon. Friend talks about specific projects. I particularly have in mind the £106 million that is earmarked from the European regional development fund for phase 2 of the South Wales metro. Does he agree that, for projects such as that, it is all about certainty, and that it is in the hands of the UK Government to provide that certainty?

[Stephen Doughty]

I absolutely agree. It is about not only certainty of the funding for projects but managing the growth of rapidly growing areas in south Wales. In my own city of Cardiff in particular, we need to know that we are going to have the transport infrastructure to cope with the anticipated demand. The South Wales metro is crucial to that.

--- Later in debate ---

[Nick Thomas-Symonds (Torfaen) (Lab)]

It is a pleasure to serve under your chairmanship for the first time, Mr Flello. I congratulate my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) not only on securing the debate but on his comprehensive and thoughtful setting out of the issues. It is always a pleasure to follow my hon. Friend the Member for Bridgend (Mrs Moon); and I am sure that all Members from south Wales would give testament to the fine shopping at McArthurGlen.

[Mrs Moon]

And Sainsbury’s.

[Nick Thomas-Symonds]

Absolutely. It is also a pleasure to follow my hon. Friend the Member for Newport West (Paul Flynn). Whenever my hon. Friend speaks we learn something new; I am sure we are all very grateful for that. As to the hon. Member for Brecon and Radnorshire (Chris Davies), I am slightly worried about the way he reads facial expressions. He may end up getting his enemies and friends the wrong way round in future.

I totally accept the result of last year’s referendum. The Torfaen local authority area had a 59.8% leave vote, and the Torfaen parliamentary constituency makes up the substantial part of that local authority. It is crucial that the result should be respected; but whether people voted remain or leave, they deserve—in Torfaen and across Wales—a Government determined to deliver economic prosperity and to have a clear, coherent negotiating strategy to that end. Before I entered the House I was, among other things, a barrister and a mediator. I know only too well that no one should reveal the fine detail of their negotiating strategy before they begin; but that is not what the Government are being asked to do. We have heard from the Prime Minister today, but what concerns me is that not once has she given a coherent vision of post-Brexit Britain. As my hon. Friend the Member for Cardiff South and Penarth pointed out, we are left with a nightmare scenario of being an island, almost like a giant tax haven, off the end of the EU, instead of a place where inward investment and the floor of workers’ rights established by the EU will continue post-Brexit. We are also left with the impression that the Prime Minister is far more interested in the internal politics of the Conservative party than in the national interest.

Today’s debate is specifically about infrastructure. Wales has benefited tremendously from EU structural funding. When we talk about infrastructure, we must think about it in different senses. We have, of course, physical infrastructure, which my hon. Friend the Member for Cardiff South and Penarth talked about. I have already mentioned the south Wales metro project, which is one of many on which I hope the Minister will give far firmer guarantees. However, there is also the question of digital infrastructure. I commend the Welsh Government for their aim of every household in Wales having access to superfast broadband, and the great progress that has been made. Clearly, there is more progress to be made. I suggest that digital infrastructure will be vital to Wales’s future. There has been an increase in flexible working and the number of people working from home, and a substantial number of people are self-employed throughout the United Kingdom now; all of them will be reliant on the broadband speed available to them at their business premises and at home. That infrastructure, too, must be funded. The Government must have a coherent vision so that, without the European structural funds coming down the line, such things can be realised.

The Minister and the Secretary of State for Wales can play a crucial part in what happens, but they must be the voices of Wales in the Government, standing up for funding. They cannot become, in the years to come, the Government’s voice in Wales. The referendum has of course gone, and we have to concentrate on how Wales is to have a substantial number of highly skilled jobs, such as those in Bridgend that we heard about, and others mentioned by my hon. Friends. That is the vision of Wales that we must deliver, and I hope that the Government will put aside their internal divisions to take it seriously.